Document:

Exhibit 10.1

 

Execution Copy

 

THIRD AMENDED AND RESTATED
 CREDIT AND GUARANTY AGREEMENT

 

MASTERCRAFT BOAT COMPANY, LLC,

 

MASTERCRAFT SERVICES, INC.,

MCBC HYDRA BOATS, LLC
  MASTERCRAFT INTERNATIONAL SALES ADMINISTRATION, INC.

NAUTIC STAR, LLC
 NS TRANSPORT, LLC
 NAVIGATOR MARINE, LLC

as Borrowers

 

MCBC HOLDINGS, INC.
 as a Guarantor

 

And
 the other Credit Parties

 

Various Lenders
 From Time to Time Party Hereto
 and

 

FIFTH THIRD BANK,
 an Ohio banking corporation,
 as Agent and L/C Issuer and Lender

 

BANK OF AMERICA, N.A.
 as Syndication Agent

 

SUNTRUST BANK
  JPMORGAN CHASE BANK, N.A.
  REGIONS BANK
 as Co-Documentation Agents

 

Dated as of OCTOBER 2, 2017

 

FIFTH THIRD BANK,
 as Lead Arranger and Sole Book Runner

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
SECTION 1
    	
DEFINITIONS;   INTERPRETATION
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Section 1.1
    	
Definitions
    	
2
    
	
 
    	
Section 1.2
    	
Interpretation
    	
35
    
	
 
    	
Section 1.3
    	
Change   in Accounting Principles
    	
36
    
	
 
    	
Section 1.4
    	
Financial   Covenant Calculations
    	
37
    
	
 
    	
Section 1.5
    	
Outstanding   Obligations
    	
37
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 2
    	
THE CREDIT FACILITIES
    	
38
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Section 2.1
    	
Term   Loan Commitments
    	
38
    
	
 
    	
Section 2.2
    	
Revolving   Credit Commitments
    	
38
    
	
 
    	
Section 2.3
    	
Letters   of Credit
    	
39
    
	
 
    	
Section 2.4
    	
Applicable   Interest Rates
    	
42
    
	
 
    	
Section 2.5
    	
Manner   of Borrowing Loans and Designating Applicable Interest Rates; Funding
    	
43
    
	
 
    	
Section 2.6
    	
Minimum   Borrowing Amounts; Maximum Eurodollar Loans
    	
45
    
	
 
    	
Section 2.7
    	
Maturity   of Loans
    	
45
    
	
 
    	
Section 2.8
    	
Prepayments
    	
46
    
	
 
    	
Section 2.9
    	
Place   and Application of Payments
    	
49
    
	
 
    	
Section 2.10
    	
Commitment   Terminations
    	
51
    
	
 
    	
Section 2.11
    	
Swing   Loans
    	
51
    
	
 
    	
Section 2.12
    	
Evidence   of Indebtedness
    	
53
    
	
 
    	
Section 2.13
    	
Fees
    	
53
    
	
 
    	
Section 2.14
    	
Account   Debit
    	
54
    
	
 
    	
Section 2.15
    	
Collections;   Controlled Disbursement Accounts
    	
54
    
	
 
    	
Section 2.16
    	
Uncommitted   Facilities Increase; Incremental Facilities
    	
56
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 3
    	
CONDITIONS PRECEDENT;   POST-CLOSING OBLIGATIONS
    	
58
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Section 3.1
    	
All   Credit Events
    	
58
    
	
 
    	
Section 3.2
    	
Credit   Event — Third Restatement Closing Date
    	
59
    
	
 
    	
Section 3.3
    	
Post-Closing   Obligations
    	
62
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 4
    	
THE COLLATERAL,   GUARANTIES
    	
63
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Section 4.1
    	
Collateral
    	
63
    
	
 
    	
Section 4.2
    	
Liens   on Real Property; Collateral Access Agreements
    	
64
    
	
 
    	
Section 4.3
    	
Guaranties
    	
64
    
	
 
    	
Section 4.4
    	
Further   Assurances
    	
65
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 5
    	
REPRESENTATIONS AND   WARRANTIES
    	
65
    
	
 
    	
 
    	
 
    
	
 
    	
Section 5.1
    	
Organization   and Qualification
    	
65
    
	
 
    	
Section 5.2
    	
Authority   and Enforceability
    	
65
    

 

i

 

TABLE OF CONTENTS
 (continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Section 5.3
    	
Financial   Reports
    	
66
    
	
 
    	
Section 5.4
    	
No   Material Adverse Change
    	
66
    
	
 
    	
Section 5.5
    	
Litigation   and Other Controversies
    	
66
    
	
 
    	
Section 5.6
    	
True   and Complete Disclosure
    	
67
    
	
 
    	
Section 5.7
    	
Use   of Proceeds; Margin Stock
    	
67
    
	
 
    	
Section 5.8
    	
Taxes
    	
67
    
	
 
    	
Section 5.9
    	
ERISA
    	
67
    
	
 
    	
Section 5.10
    	
Subsidiaries
    	
68
    
	
 
    	
Section 5.11
    	
Compliance   with Laws
    	
68
    
	
 
    	
Section 5.12
    	
Environmental   Matters
    	
69
    
	
 
    	
Section 5.13
    	
Investment   Company
    	
69
    
	
 
    	
Section 5.14
    	
Intellectual   Property
    	
69
    
	
 
    	
Section 5.15
    	
Good   Title
    	
69
    
	
 
    	
Section 5.16
    	
Labor   Relations
    	
69
    
	
 
    	
Section 5.17
    	
Capitalization
    	
70
    
	
 
    	
Section 5.18
    	
Other   Agreements
    	
70
    
	
 
    	
Section 5.19
    	
Governmental   Authority and Licensing
    	
70
    
	
 
    	
Section 5.20
    	
Approvals
    	
70
    
	
 
    	
Section 5.21
    	
Affiliate   Transactions
    	
70
    
	
 
    	
Section 5.22
    	
Solvency
    	
70
    
	
 
    	
Section 5.23
    	
No Broker   Fees
    	
71
    
	
 
    	
Section 5.24
    	
PATRIOT   Act; Foreign Corrupt Practices Act
    	
71
    
	
 
    	
Section 5.25
    	
Purchase   Agreement
    	
72
    
	
 
    	
Section 5.26
    	
Security   Interest in Collateral
    	
72
    
	
 
    	
Section 5.27
    	
Common   Enterprise
    	
72
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 6
    	
COVENANTS
    	
73
    
	
 
    	
 
    	
 
    
	
 
    	
Section 6.1
    	
Information   Covenants
    	
73
    
	
 
    	
Section 6.2
    	
Inspections;   Books and Records.
    	
76
    
	
 
    	
Section 6.3
    	
Maintenance   of Property, Insurance, Environmental Matters, etc.
    	
76
    
	
 
    	
Section 6.4
    	
Preservation   of Existence
    	
78
    
	
 
    	
Section 6.5
    	
Compliance   with Laws
    	
78
    
	
 
    	
Section 6.6
    	
ERISA
    	
78
    
	
 
    	
Section 6.7
    	
Payment   of Taxes and Other Obligations
    	
79
    
	
 
    	
Section 6.8
    	
Transactions   with Affiliates
    	
79
    
	
 
    	
Section 6.9
    	
Sale   and Leaseback Transactions
    	
79
    
	
 
    	
Section 6.10
    	
Interest   Rate Protection
    	
79
    
	
 
    	
Section 6.11
    	
Indebtedness
    	
80
    
	
 
    	
Section 6.12
    	
Liens
    	
81
    

 

ii

 

TABLE OF CONTENTS
 (continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Section 6.13
    	
Consolidation,   Merger, Sale of Assets, etc.
    	
82
    
	
 
    	
Section 6.14
    	
Advances, Investments,   Acquisitions and Loans
    	
84
    
	
 
    	
Section 6.15
    	
Restricted   Payments
    	
85
    
	
 
    	
Section 6.16
    	
Limitation   on Restrictions
    	
86
    
	
 
    	
Section 6.17
    	
Limitation   on the Creation of Subsidiaries
    	
86
    
	
 
    	
Section 6.18
    	
Material   Contracts; Other Agreements
    	
86
    
	
 
    	
Section 6.19
    	
OFAC;   Anti-Corruption Laws; Sanctions
    	
87
    
	
 
    	
Section 6.20
    	
Name,   Fiscal Year Accounting and Organizational Documents
    	
87
    
	
 
    	
Section 6.21
    	
Deposit   Accounts and Cash Management Services
    	
87
    
	
 
    	
Section 6.22
    	
Financial   Covenants
    	
88
    
	
 
    	
Section 6.23
    	
Holdings;   Limitations
    	
88
    
	
 
    	
Section 6.24
    	
Foreign   Subsidiary Limitations
    	
89
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 7
    	
EVENTS OF DEFAULT AND   REMEDIES
    	
89
    
	
 
    	
 
    	
 
    
	
 
    	
Section 7.1
    	
Events   of Default
    	
89
    
	
 
    	
Section 7.2
    	
Non-Bankruptcy   Defaults
    	
92
    
	
 
    	
Section 7.3
    	
Bankruptcy   Defaults
    	
92
    
	
 
    	
Section 7.4
    	
Collateral   for Undrawn Letters of Credit
    	
92
    
	
 
    	
Section 7.5
    	
Notice   of Default
    	
93
    
	
 
    	
Section 7.6
    	
Expenses
    	
93
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 8
    	
CHANGE IN CIRCUMSTANCES   AND CONTINGENCIES
    	
93
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Section 8.1
    	
Funding   Indemnity
    	
93
    
	
 
    	
Section 8.2
    	
Illegality
    	
94
    
	
 
    	
Section 8.3
    	
Unavailability   of Deposits or Inability to Ascertain, or Inadequacy of, LIBOR
    	
94
    
	
 
    	
Section 8.4
    	
Increased   Costs
    	
95
    
	
 
    	
Section 8.5
    	
Taxes
    	
96
    
	
 
    	
Section 8.6
    	
Mitigation   Obligations; Replacement of Lenders
    	
100
    
	
 
    	
Section 8.7
    	
Defaulting   Lenders
    	
101
    
	
 
    	
Section 8.8
    	
Cash   Collateral
    	
104
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 9
    	
THE AGENT
    	
105
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Section 9.1
    	
Appointment   and Authority
    	
105
    
	
 
    	
Section 9.2
    	
Rights   as a Lender
    	
105
    
	
 
    	
Section 9.3
    	
Exculpatory   Provisions
    	
105
    
	
 
    	
Section 9.4
    	
Reliance   by Agent
    	
106
    
	
 
    	
Section 9.5
    	
Delegation   of Duties
    	
106
    
	
 
    	
Section 9.6
    	
Resignation   of Agent
    	
107
    
	
 
    	
Section 9.7
    	
Non-Reliance   on Agent and Other Lenders
    	
108
    

 

iii

 

TABLE OF CONTENTS
 (continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Section 9.8
    	
No   Other Duties, etc.
    	
108
    
	
 
    	
Section 9.9
    	
Agent   May File Proofs of Claim
    	
108
    
	
 
    	
Section 9.10
    	
Collateral   and Guaranty Matters
    	
109
    
	
 
    	
Section 9.11
    	
Authorization   to Enter into, and Enforcement of, the Collateral Documents
    	
109
    
	
 
    	
Section 9.12
    	
Designation   of Additional Agents
    	
110
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 10
    	
MISCELLANEOUS
    	
110
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Section 10.1
    	
No   Waiver; Cumulative Remedies
    	
110
    
	
 
    	
Section 10.2
    	
Non-Business   Days
    	
110
    
	
 
    	
Section 10.3
    	
Survival   of Representations
    	
110
    
	
 
    	
Section 10.4
    	
Survival   of Indemnities
    	
110
    
	
 
    	
Section 10.5
    	
Sharing   of Set-Off
    	
110
    
	
 
    	
Section 10.6
    	
Notices
    	
111
    
	
 
    	
Section 10.7
    	
Counterparts
    	
113
    
	
 
    	
Section 10.8
    	
Successors   and Assigns; Assignments and Participations
    	
113
    
	
 
    	
Section 10.9
    	
Amendments
    	
118
    
	
 
    	
Section 10.10
    	
Headings
    	
119
    
	
 
    	
Section 10.11
    	
Costs   and Expenses; Indemnification
    	
119
    
	
 
    	
Section 10.12
    	
Set-off
    	
121
    
	
 
    	
Section 10.13
    	
Entire   Agreement
    	
121
    
	
 
    	
Section 10.14
    	
Governing   Law
    	
122
    
	
 
    	
Section 10.15
    	
Severability   of Provisions
    	
122
    
	
 
    	
Section 10.16
    	
Excess   Interest
    	
122
    
	
 
    	
Section 10.17
    	
Construction
    	
122
    
	
 
    	
Section 10.18
    	
Lender’s   and L/C Issuer’s Obligations Several
    	
123
    
	
 
    	
Section 10.19
    	
USA   PATRIOT Act
    	
123
    
	
 
    	
Section 10.20
    	
Submission   to Jurisdiction; Waiver of Jury Trial
    	
123
    
	
 
    	
Section 10.21
    	
Treatment   of Certain Information; Confidentiality
    	
124
    
	
 
    	
Section 10.22
    	
Subordination   of Intercompany Indebtedness
    	
125
    
	
 
    	
Section 10.23
    	
Prior   Agreements
    	
126
    
	
 
    	
Section 10.24
    	
Electronic   Records
    	
126
    
	
 
    	
Section 10.25
    	
Contractual   Recognition of Bail-In
    	
127
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 11
    	
GUARANTY
    	
127
    
	
 
    	
 
    	
 
    
	
 
    	
Section 11.1
    	
Guaranty
    	
127
    
	
 
    	
Section 11.2
    	
Guaranty   of Payment
    	
128
    
	
 
    	
Section 11.3
    	
No   Discharge or Diminishment of Guaranty
    	
128
    
	
 
    	
Section 11.4
    	
Waiver   of Defenses
    	
129
    
	
 
    	
Section 11.5
    	
Rights   of Subrogation
    	
129
    
	
 
    	
Section 11.6
    	
Reinstatement;   Stay of Acceleration
    	
129
    

 

iv

 

TABLE OF CONTENTS
 (continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Section 11.7
    	
Information
    	
129
    
	
 
    	
Section 11.8
    	
Termination
    	
130
    
	
 
    	
Section 11.9
    	
Severability
    	
130
    
	
 
    	
Section 11.10
    	
Contribution
    	
130
    
	
 
    	
Section 11.11
    	
Liability   Cumulative
    	
131
    
	
 
    	
Section 11.12
    	
Eligible   Contract Participant
    	
131
    
	
 
    	
Section 11.13
    	
Keepwell
    	
131
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 12
    	
BORROWER REPRESENTATIVE
    	
131
    
	
 
    	
 
    	
 
    
	
 
    	
Section 12.1
    	
Appointment;   Nature of Relationship
    	
131
    
	
 
    	
Section 12.2
    	
Powers
    	
132
    
	
 
    	
Section 12.3
    	
Notices
    	
132
    
	
 
    	
Section 12.4
    	
Successor   Borrower Representative
    	
132
    
	
 
    	
Section 12.5
    	
Execution   of Loan Documents
    	
132
    
	
 
    	
Section 12.6
    	
Reporting
    	
132
    

 

	
Exhibit A
    	
 
    	
—
    	
 
    	
Notice of Payment Request
    
	
Exhibit B
    	
 
    	
—
    	
 
    	
Notice of Borrowing
    
	
Exhibit C
    	
 
    	
—
    	
 
    	
Notice of Continuation/Conversion
    
	
Exhibit D-1
    	
 
    	
—
    	
 
    	
Term Note
    
	
Exhibit D-2
    	
 
    	
—
    	
 
    	
Revolving Note
    
	
Exhibit D-3
    	
 
    	
—
    	
 
    	
Swing Note
    
	
Exhibit E
    	
 
    	
—
    	
 
    	
Compliance Certificate
    
	
Exhibit F
    	
 
    	
—
    	
 
    	
Assignment and Assumption
    
	
Exhibit G
    	
 
    	
—
    	
 
    	
Joinder Agreement
    
	
Exhibits H-1
    	
 
    	
—
    	
 
    	
Tax Certificates
    
	
through H-4
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Schedule 1
    	
 
    	
—
    	
 
    	
Commitments
    
	
Schedule 3.3
    	
 
    	
 
    	
 
    	
Post-Closing Obligations
    
	
Schedule 5.9
    	
 
    	
—
    	
 
    	
ERISA
    
	
Schedule 5.10
    	
 
    	
—
    	
 
    	
Subsidiaries
    
	
Schedule 5.16
    	
 
    	
—
    	
 
    	
Labor Relations
    
	
Schedule 5.17
    	
 
    	
—
    	
 
    	
Capitalization of Credit Parties
    
	
Schedule 6.11
    	
 
    	
—
    	
 
    	
Indebtedness
    
	
Schedule 6.12
    	
 
    	
—
    	
 
    	
Liens
    
	
Schedule 6.14
    	
 
    	
—
    	
 
    	
Investments
    
	
Schedule 6.16
    	
 
    	
—
    	
 
    	
Restrictions
    
	
Schedule 10.8(b)
    	
 
    	
 
    	
 
    	
Prohibited Assignees
    

 

v

 

THIRD AMENDED AND RESTATED
 CREDIT AND GUARANTY AGREEMENT

 

This Third Amended and Restated Credit and Guaranty Agreement is entered into as of October 2, 2017, by and among MASTERCRAFT BOAT COMPANY, LLC, a Delaware limited liability company (“MasterCraft”), MASTERCRAFT SERVICES, INC., a Tennessee corporation (“Services”), MCBC HYDRA BOATS, LLC, a Tennessee limited liability company (“Hydra”), MASTERCRAFT INTERNATIONAL SALES ADMINISTRATION, INC., a Delaware corporation (“Sales Administration”), NAUTIC STAR, LLC, a Mississippi limited liability company (“Nautic”), NS TRANSPORT, LLC, a Mississippi limited liability company (“NS Transport”), and NAVIGATOR MARINE, LLC, a Mississippi limited liability company (“Navigator”) and each other Person that becomes a “Borrower” hereunder pursuant to a Joinder Agreement (collectively, “Borrowers” and, individually, each a “Borrower”), MCBC HOLDINGS, INC., a Delaware corporation (“Holdings”), as a Guarantor, the other Credit Parties named herein from time to time, the various institutions from time to time party to this Agreement, as Lenders, and FIFTH THIRD BANK, an Ohio banking corporation, as Agent and L/C Issuer.

 

RECITALS

 

WHEREAS, Borrowers (other than Nautic, NS Transport and Navigator) and Holdings and Agent and the Lenders entered into that certain Second Amended and Restated Credit and Guaranty Agreement dated as of May 27, 2016 (as amended from time to time, the “Existing Credit Agreement”), which amended and restated that certain Amended and Restated Credit and Guaranty Agreement dated as of March 13, 2015, which amended and restated that certain Credit and Guaranty Agreement dated as of December 20, 2013 (collectively, as amended from time to time, the “Original Loan Agreement”), with the Existing Credit Agreement providing for Revolving Loans in the maximum principal amount of $30,000,000, a Term Loan in the original principal amount of $50,000,000 and other credit accommodations, for an aggregate credit facility in the amount of  $80,000,000;

 

WHEREAS, in connection therewith, the parties thereto entered into that certain Security Agreement dated as of December 20, 2013 (the “Original Security Agreement”), and that certain Amended and Restated Security Agreement dated as of March 13, 2015, as amended by that certain Amendment No. 1 to Amended and Restated Security Agreement  (as amended, the “Existing Security Agreement”), which amended and restated the Original Security Agreement, together with other ancillary Collateral Documents and other Loan Documents (each as defined in the Existing Credit Agreement);

 

WHEREAS, each of Borrowers and Holdings have requested that Agent and the Lenders (i) modify the Loans and other credit accommodations under the Existing Credit Agreement to provide for an aggregate credit facility in the amount of $145,000,000 consisting of Revolving Credit Commitments in the aggregate amount of $30,000,000 and Term Loan Commitments in the aggregate amount of $115,000,000, (ii) permit the Nautic Star Acquisition, (iii) extend the Maturity Date to October 2, 2022, and (iv) make certain other modifications and amendments to the Existing Credit Agreement, all as set forth in this Agreement;

 

 

WHEREAS, as set forth in the Loan Documents, each of the Credit Parties (i) shall be Borrowers or Guarantors, as applicable, hereunder jointly and severally liable for all Loans and related Obligations, (ii) shall guaranty the Obligations of each other Credit Party hereunder as set forth in Section 11 hereof, and (iii) shall reaffirm and grant to Agent, for the benefit of Agent and Lenders, a Lien on its Collateral to secure such Obligations, and the Obligations of the Credit Parties under this Agreement, as continued from the Original Loan Agreement and the Existing Credit Agreement, shall continue to be secured by the Collateral pursuant to the Existing Security Agreement, as amended and restated on the date hereof by that certain Second Amended and Restated Security Agreement, executed and delivered in connection with this Agreement; and

 

WHEREAS, this Agreement shall become effective, and shall amend and restate the Existing Credit Agreement, upon the execution of this Agreement by Borrowers, the other Credit Parties, Agent and the Lenders and upon the satisfaction of the conditions contained in Section 3 hereof; and from and after such effective time, (i) all references made to the Existing Credit Agreement in the Loan Documents or in any other instrument or document executed and/or delivered pursuant thereto shall, without any further action, be deemed to refer to this Agreement and (ii) the Existing Credit Agreement shall be amended and restated in its entirety hereby, provided, however, the obligations to repay the loans and advances arising under the Existing Credit Agreement shall continue in full force and effect to the extent provided in this Agreement and the Liens securing payment thereof shall be continuing but shall now be governed by the terms of this Agreement and the other Loan Documents.

 

NOW, THEREFORE, in consideration of any Loans (including any Loans by renewal or extension) heretofore and hereafter made to Borrowers by Agent and/or Lenders, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Credit Parties, the parties agree as follows:

 

SECTION 1

 

DEFINITIONS; INTERPRETATION.

 

Section 1.1            Definitions.  The following terms when used herein shall have the following meanings:

 

“ACH” is defined in Section 2.15(a) hereof.

 

“Acquired Business” means the entity or assets acquired by any Credit Party or a Subsidiary in an Acquisition, whether before or after the date hereof.

 

“Acquisition” means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets of a Person, or of any business or division of a Person, (b) the acquisition of in excess of 50% of the capital stock, partnership interests, membership interests or equity of any Person (other than a Person that is a Subsidiary), or otherwise causing any Person to become a Subsidiary, or (c) a merger or consolidation or any other combination with another Person (other than a Person that is a Subsidiary).

 

2

 

“Adjusted LIBOR” means, for any Borrowing of Eurodollar Loans, a rate per annum equal to the quotient of (i) LIBOR, divided by (ii) one minus the Reserve Percentage.

 

“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Agent to the Lenders.

 

“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

 

“Agent” means Fifth Third Bank, an Ohio banking corporation, in its capacity as administrative agent for itself and the other Lenders and any successor pursuant to Section 9.7 hereof.

 

“Agreement” means this Third Amended and Restated Credit and Guaranty Agreement, as the same may be amended, modified, restated or supplemented from time to time pursuant to the terms hereof.

 

“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Credit Parties or any of their Affiliates from time to time concerning or relating to bribery or corruption.

 

“Applicable Loans” is defined in Section 10.08(g) hereof.

 

“Applicable Margin” means, with respect to Loans, Reimbursement Obligations, and the Commitment Fees and L/C Fees payable under Section 2.13 hereof, until the first Pricing Date, the rates per annum shown opposite Level II below, and thereafter from one Pricing Date to the next the Applicable Margin means the rates per annum determined in accordance with the following schedule:

 

	
LEVEL
    	
 
    	
TOTAL
   LEVERAGE RATIO
   FOR SUCH PRICING
   DATE
    	
 
    	
APPLICABLE
   MARGIN FOR
   EURODOLLAR
   LOANS:
    	
 
    	
APPLICABLE
   MARGIN FOR BASE
   RATE LOANS:
    	
 
    	
APPLICABLE
   MARGIN FOR
   COMMITMENT FEE:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
I
    	
 
    	
Greater than or equal to 2.50   to 1.0
    	
 
    	
2.750
    	
%
    	
1.750
    	
%
    	
0.450
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
II
    	
 
    	
Less than 2.50 to 1.0, but   greater than or equal to 2.00 to 1.0
    	
 
    	
2.500
    	
%
    	
1.500
    	
%
    	
0.400
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
III
    	
 
    	
Less than 2.0 to 1.0, but   greater than or equal to 1.50 to 1.0
    	
 
    	
2.250
    	
%
    	
1.250
    	
%
    	
0.350
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
IV
    	
 
    	
Less than 1.50 to 1.0, but   greater than
    	
 
    	
2.000
    	
%
    	
1.000
    	
 
    	
0.300
    	
%
    

 

3

 

	
LEVEL
    	
 
    	
TOTAL
   LEVERAGE RATIO
   FOR SUCH PRICING
   DATE
    	
 
    	
APPLICABLE
   MARGIN FOR
   EURODOLLAR
   LOANS:
    	
 
    	
APPLICABLE
   MARGIN FOR BASE
   RATE LOANS:
    	
 
    	
APPLICABLE
   MARGIN FOR
   COMMITMENT FEE:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
or equal to 1.00 to 1.0
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
V
    	
 
    	
Less than 1.00 to 1.0
    	
 
    	
1.750
    	
%
    	
0.750
    	
%
    	
0.250
    	
%
    

 

For purposes hereof, the term “Pricing Date” means, for any fiscal quarter of the Credit Parties and their Subsidiaries ending on or after December 31, 2017, the date on which the Agent is in receipt of Borrowers’ and their Subsidiaries’ most recent financial statements for the fiscal quarter then ended, pursuant to Section 6.1 hereof.  The Applicable Margin shall be established based on the Total Net Leverage Ratio for the most recently completed fiscal quarter, and the Applicable Margin established on a Pricing Date shall remain in effect until the next Pricing Date.  If the Credit Parties have not delivered their financial statements by the date such financial statements (and, in the case of the year-end financial statements, audit report) are required to be delivered under Section 6.1 hereof, until such financial statements and audit report are delivered, the Applicable Margin shall be the highest Applicable Margin (i.e., the Total Net Leverage Ratio shall be deemed to be greater than or equal to 2.50 to 1.0).  If the Credit Parties subsequently deliver such financial statements before the next Pricing Date, the Applicable Margin established by such late-delivered financial statements shall take effect from the date of delivery until the next Pricing Date. In all other circumstances, the Applicable Margin established by such financial statements shall be in effect from the Pricing Date that occurs immediately after the end of the fiscal quarter covered by such financial statements until the next Pricing Date.  Each determination of the Applicable Margin made by the Agent in accordance with the foregoing shall be conclusive and binding on the Credit Parties and the Lenders absent manifest error.

 

Without limitation of any other provision of this Agreement, or any other remedy available to Agent or the Lenders under any of the Loan Documents, to the extent that any financial statements delivered pursuant to Section 6.1 or any information contained in any certificate delivered pursuant to Section 6.1 shall be incorrect in any material manner that would have led to the application of a higher Applicable Margin for any period, then (i) the Borrower Representative shall deliver to the Agent corrected financial statements or other corrected information in an executed certificate (“Correction Certificate”), (ii) the Applicable Margin for such period shall be the Applicable Margin corresponding to such restated financial statements or other corrected information and, all Loans shall bear interest based upon such recalculated Applicable Margin retroactively from the date of the delivery of the erroneous financial statements or other erroneous information in question, and (iii) any additional amounts payable as a result of such retroactive application that are attributable to prior periods shall be due and payable by Borrower Representative upon delivery to Agent of the Correction Certificate.

 

“Applicable Percentage” means, with respect to any Revolving Lender, the percentage of the total Revolving Credit Commitments represented by such Revolving Lender’s Revolving Credit Commitment; provided that if the Revolving Credit Commitments have terminated or

 

4

 

expired, the Applicable Percentages shall be determined based upon the Revolving Credit Commitments most recently in effect, giving effect to any assignments.

 

“Application” is defined in Section 2.3(b) hereof.

 

“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

 

“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 10.8), and accepted by the Agent, in substantially the form of Exhibit F attached hereto or any other form approved by the Agent.

 

“Authorized Representative” means those Persons shown on the list of officers or other authorized individuals provided by the Credit Parties pursuant to Section 3.2 hereof or on any update of any such list provided by the Credit Parties to the Agent, or any further or different officers or authorized individuals of the Credit Parties so named by any Authorized Representative of the Credit Parties in a written notice to the Agent.

 

“Banking Services Obligations” means the liability of any Credit Party or any Subsidiary owing to any of the Lenders, or any Affiliates of such Lenders, arising out of (a) the execution or processing of electronic transfers of funds by automatic clearing house (ACH) transfer, return items, overdrafts, interstate depository network services, wire transfer or otherwise to or from the deposit accounts of any Credit Party or any Subsidiary now or hereafter maintained with any of the Lenders or their Affiliates, (b) the acceptance for deposit or the honoring for payment of any check, draft or other item with respect to any such deposit accounts, (c) credit card and purchasing card services provided to any Credit Party by a Lender while such Person is a Lender hereunder, and (d) any other deposit, disbursement, and cash management services afforded to any Credit Party or any Subsidiary by any of such Lenders or their Affiliates.

 

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

 

“Bail-In Legislation” means with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

 

“Bankruptcy Code” shall mean the United States Bankruptcy Code, 11 U.S.C. §101 et seq., as in effect from time to time, and any successor statute thereto.

 

“Base Rate” means for any day the greatest of:  (a) the rate of interest last quoted by The Wall Street Journal (or such other national publication selected by the Agent) from time to time as the “prime rate” as in effect on such day, with any change in the Base Rate resulting from a change in said prime rate to be effective as of the date of the relevant change in said prime rate (it being acknowledged that such rate may not be the Agent’s best or lowest rate), (b) the sum of (x) the Federal Funds Rate, plus (y) 1/2 of 1% and (c) the sum of (x) the Adjusted LIBOR that

 

5

 

would be applicable to a Eurodollar Loan with a 1 month Interest Period advanced on such day (or, if such day is not a Business Day, the immediately preceding Business Day) plus (y) one percent (1.00%).

 

“Base Rate Loan” means a Loan bearing interest at a rate specified in Section 2.4(a) hereof.

 

“Borrower(s)” means, individually and collectively, jointly and severally (a) as of the Original Closing Date, the Restatement Closing Date and the Second Restatement Closing Date, (i) MasterCraft, (ii) Services, (iii) Hydra; and (iv) Sales Administration, (b) as of the Third Restatement Closing Date, (i) MasterCraft, (ii) Services, (iii) Hydra; and (iv) Sales Administration, (v) Nautic, (vi) NS Transport, and (vii) Navigator and (c) each other Person that becomes a “Borrower” hereunder pursuant to a Joinder Agreement after the Third Restatement Closing Date.

 

“Borrower Representative” is defined in Section 12.1 hereof; and as of the Original Closing Date and Third Restatement Closing Date is MasterCraft.

 

“Borrowing” means the total of Loans of a single type advanced, continued for an additional Interest Period, or converted from a different type into such type by the Lenders under a Credit on a single date and, in the case of Eurodollar Loans, for a single Interest Period.  Borrowings of Loans are made and maintained ratably from each of the Lenders under a Credit according to their Percentages of such Credit.  A Borrowing is “advanced” on the day the Lenders advance funds comprising such Borrowing to Borrower Representative, is “continued” on the date a new Interest Period for the same type of Loans commences for such Borrowing, and is “converted” when such Borrowing is changed from one type of Loans to the other, all as requested by Borrower Representative pursuant to Section 2.5(a) hereof.  Borrowings of Swing Loans are made by the Agent in accordance with the procedures set forth in Section 2.11 hereof.

 

“Business Day” means (i) with respect to all notices and determinations in connection with the Eurodollar Rate, any day (other than a Saturday or Sunday) on which commercial banks are open in London, England, New York, New York, and Cincinnati, Ohio for dealings in deposits in the London Interbank Market; and (ii) in all other cases, any day on which commercial banks in Cincinnati, Ohio are required by law to be open for business; provided that, notwithstanding anything to the contrary in this definition of “Business Day”, at any time during which a Rate Management Agreement with Lender is then in effect with respect to all or a portion of this Agreement, then the definitions of “Business Day” and “Banking Day”, as applicable, pursuant to such Rate Management Agreement shall govern with respect to all applicable notices and determinations in connection with such portion of this Agreement subject to such Rate Management Agreement.  Periods of days referred to in this Agreement will be counted in calendar days unless Business Days are expressly prescribed.

 

“Capital Expenditures” means, with respect to any Person for any period, the aggregate amount of all expenditures (whether paid in cash or accrued as a liability) by such Person during that period for the acquisition or leasing (pursuant to a Capital Lease) of fixed or capital assets or additions to property, plant, or equipment (including replacements, capitalized repairs, and improvements) which should be capitalized on the balance sheet of such Person in accordance

 

6

 

with GAAP, but excluding expenditures made in connection with the replacement, substitution or restoration of assets to the extent financed (a) from insurance proceeds (or other similar recoveries) paid on account of the loss of or damage to the assets being replaced or restored, or (b) with awards of compensation arising from the taking by eminent domain or condemnation of the assets being replaced.

 

“Capital Lease” means any lease of Property which in accordance with GAAP is classified as a capital lease.

 

“Capitalized Lease Obligation” means, for any Person, the amount of the liability shown on the balance sheet of such Person in respect of a Capital Lease determined in accordance with GAAP.

 

“Cash Collateralize” means, to pledge and deposit with or deliver to the Agent, (a) for the benefit of one or more of the L/C Issuers or Lenders, as collateral for L/C Obligations or obligations of Lenders to fund participations in respect of L/C Obligations, cash or deposit account balances in the Minimum Collateral Amount or, if the Agent and each L/C Issuer shall agree in their sole discretion, other credit support, in each case pursuant to documentation in form and substance reasonably satisfactory to the Agent and L/C Issuer, or (b) for the benefit of any Lender that has provided Banking Services Obligations.  “Cash Collateral” shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.

 

“Cash Equivalents” shall mean, as to any Person:  (a) investments in direct obligations of the United States of America or of any agency or instrumentality thereof whose obligations constitute full faith and credit obligations of the United States of America, provided that any such obligations shall mature within one (1) year of the date of issuance thereof; (b) investments in commercial paper rated at least P-1 by Moody’s and at least A-1 by S&P maturing within ninety (90) days from the date of issuance thereof; (c) investments in certificates of deposit issued by any Lender or by any United States commercial bank having capital and surplus of not less than $250,000,000 which have a maturity of one year or less; (d) investments in repurchase obligations with a term of not more than seven (7) days for underlying securities of the types described in clause (a) above entered into with any bank meeting the qualifications specified in clause (c) above, provided all such agreements require physical delivery of the securities securing such repurchase agreement, except those delivered through the Federal Reserve Book Entry System; and (e) investments in money market funds that invest solely, and which are restricted by their respective charters to invest solely, in investments of the type described in the immediately preceding subsections (a), (b), (c), and (d) above; and (f) other short term liquid investments approved in writing by the Agent.

 

“CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. §§9601 et seq., and any future amendments.

 

“Change in Law” means the occurrence, after the date of this Agreement, 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

 

7

 

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

 

“Change of Control” means the occurrence of one or more of the following events: (i) any sale, lease, exchange or other transfer (in a single transaction or a series of related transactions) of all or substantially all of the assets of any Credit Party to any Person or “group” (within the meaning of the Exchange Act and the rules of the SEC thereunder in effect on the date hereof) other than pursuant to a transaction expressly permitted hereunder or approved by the Required Lenders in accordance herewith, (ii) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or “group” (within the meaning of the Exchange Act and the rules of the SEC thereunder as in effect on the date hereof) of 30% or more of the outstanding voting Equity Interests of Holdings, (iii) Holdings ceases to own and control, directly or indirectly, beneficially and of record 100% of the outstanding Equity Interests of Mastercraft, or (iv) during any period of 12 consecutive months, a majority of the members of the board of directors or other equivalent governing body of Holdings cease to be composed of individuals who are Continuing Directors.

 

“Class” means when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans, Term Loans or Swing Loans.

 

“Closing Date Transactions” means, collectively, the closing and consummation of the financings contemplated by this Agreement as of the Third Restatement Closing Date, and the Nautic Star Acquisition.

 

“Code” means the Internal Revenue Code of 1986, as amended.

 

“Collateral” means all properties, rights, interests, and privileges from time to time subject to the Liens granted to the Agent for the benefit of the Lenders, or any security trustee therefor, by the Collateral Documents, but in no event shall include any Excluded Assets or Excluded Vehicles.

 

“Collateral Access Agreement” is defined in the Security Agreement.

 

“Collateral Account” is defined in Section 7.4(b) hereof.

 

“Collateral Documents” means the Mortgages, the Security Agreement, the Collateral Access Agreements, and all other mortgages, deeds of trust, security agreements, pledge agreements, account control agreements, assignments, financing statements and other documents as shall from time to time secure or relate to the Obligations, the Rate Management Obligations, and the Banking Services Obligations, or any part thereof.

 

8

 

“Collection Account” is defined in Section 2.15(a) hereof.

 

“Commitment Fee” is defined in Section 2.13(a) of this Agreement.

 

“Commitments” means the Revolving Credit Commitments, the Term Loan Commitments, any Incremental Term Loan Commitments, and any Incremental Revolving Loan Commitments.

 

“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.

 

“Communications” has the meaning set forth in Section 10.6(d)(ii).

 

“Compliance Certificate” is defined in Section 6.1(d) of this Agreement.

 

“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.

 

“Continuing Director” means, with respect to any period, any individuals (A) who were members of the board of directors or other equivalent governing body of Holdings on the first day of such period, (B) whose election or nomination to that board or equivalent governing body was appointed or nominated by individuals referred to in clause (A) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body, or (C) whose election or nomination to that board or other equivalent governing body was appointed or nominated by individuals referred to in clauses (A) and (B) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body.

 

“Contingent Obligation” shall mean as to any Person, any obligation of such Person guaranteeing or intended to guarantee any Indebtedness (“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, including, without limitation, any obligation of such 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 (x) for the purchase or payment of any such primary obligation or (y) 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 holder of such primary obligation against loss in respect thereof; provided, however, that the term Contingent Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business.  The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith; provided, that with respect to Floorplan Repurchase Obligations, the amount of such Contingent Obligations shall be determined in accordance with GAAP.

 

9

 

“Contras” is defined in the definition of “Eligible Account”.

 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.

 

“Control Agreement” is defined in the Security Agreement.

 

“Controlled Disbursement Account” is defined in Section 2.15(a) hereof.

 

“Controlled Group” means all members of a controlled group of corporations, all trades or businesses (whether or not incorporated) under common control and all members of an affiliated service group which, together with any Credit Party, are treated as a single employer under Section 414 of the Code.

 

“Credit” means any of the Revolving Credit and the Term Credit.

 

“Credit Event” means the advancing of any Loan, the continuation of or conversion into a Eurodollar Loan, or the issuance of, or extension of the expiration date or increase in the amount of, any Letter of Credit.

 

“Credit Parties” means each Borrower and each Guarantor a party to this Agreement.

 

“Damages” means all damages including, without limitation, punitive damages, liabilities, costs, expenses, losses, judgments, diminutions in value, fines, penalties, demands, claims, cost recovery actions, lawsuits, administrative proceedings, orders, response actions, removal and remedial costs, compliance costs, investigation expenses, consultant fees, reasonable and documented attorneys’ and paralegals’ fees and litigation expenses.

 

“Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect.

 

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

 

“Defaulting Lender” means, subject to Section 8.7(b), any Lender that (a) has failed to (i) fund all or any portion of its Loans within two Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Agent and Borrower Representative in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Agent, any L/C Issuer, any Swing Line Lender or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in Letters of Credit or Swing Loans) within two Business Days of the date when due, (b) has notified Borrower Representative, the Agent or any L/C Issuer or any Swing Line Lender in writing that

 

10

 

it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three Business Days after written request by the Agent or Borrower Representative, to confirm in writing to the Agent and Borrower Representative that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Agent and Borrower Representative), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law or a Bail-In-Action, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 8.7(b)) upon delivery of written notice of such determination to Borrower Representative, the L/C Issuer, each Swing Line Lender and each Lender.

 

“Disposition” means the sale, lease, conveyance or other disposition of Property, other than sales or other dispositions expressly permitted under Sections 6.13 hereof (other than clause (h) thereof).

 

“Dollars” and “$” each means the lawful currency of the United States of America.

 

“Domestic Subsidiary” means any Subsidiary that is organized under the laws of any political subdivision of the United States.

 

“EBITDA” means as to the Credit Parties and their Subsidiaries on a consolidated basis, with reference to any period, without duplication, Net Income for such period plus the sum of all amounts deducted in arriving at such Net Income for such period: (a) Interest Expense for such period, (b) tax expense (including without limitation, federal, state, local and foreign income taxes) paid or accrued for such period, (c) all distributions paid to the equity holders of Borrowers for income tax liabilities attributable to their allocated share of Borrowers’ taxable income for such period, (d) amounts attributable to depreciation and amortization expense for such period, (e) non-recurring fees, costs and expenses for such period incurred in connection with entering into this Agreement, the other Loan Documents and the transactions contemplated thereby on the Third Restatement Closing Date in an aggregate amount not to exceed $1,500,000, (f) non-cash charges for such period (including, without limitation, stock-based

 

11

 

compensation expense, currency translations, impairment charges and gains or losses on asset dispositions), (g) fees and reimbursed expenses paid to independent directors during such period for advisory and board management services in an aggregate amount not to exceed $500,000 in any fiscal year, (h) all other extraordinary or non-recurring expenses and losses for such period in an amount reasonably acceptable to Agent, (i) non-recurring fees, costs and expenses during such period incurred in connection with any Permitted Acquisition, permitted disposition, permitted equity issuance and/or permitted investment, in each case, whether or not consummated, (j) the Management Bonus Payments, and (k) non-recurring fees, costs and expenses and settlement payments for such period incurred in connection with litigation with Malibu Boats, LLC concerning allegations of IP infringement and any related actions not to exceed an aggregate amount of (i) $5,239,000.00 for the trailing twelve month period ending 09/30/2017, (ii) $4,295,000.00 for the trailing twelve month period ending 12/31/2017, and (ii) $0.00 thereafter.  With respect to any period during which any Permitted Acquisition has occurred, for purposes of determining compliance with the financial covenants set forth in Section 6.22, EBITDA shall be calculated with respect to such period on a pro forma basis (provided, that any pro forma adjustments included therein shall have been approved by the Agent, in its reasonable discretion) using the historical audited financial statements of any business so acquired and the financial statements of Holdings and its Subsidiaries which shall be reformulated as if such Permitted Acquisition, and any Indebtedness incurred or repaid in connection therewith, had been consummated or incurred or repaid at the beginning of such period (and assuming that such Indebtedness bears interest during any portion of the applicable measurement period prior to the relevant acquisition at the weighted average of the interest rates applicable to outstanding Loans incurred during such period).

 

“EEA Financial Institution”:  (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

 

“EEA Member Country”:  any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA Resolution Authority”:  any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 10.8(b)(iii), (v) and (vi) (subject to such consents, if any, as may be required under Section 10.8(b)(iii)).

 

“Engines Reserve” means a Reserve in the amount of $1,800,000  which Reserve shall be effective as of the Third Restatement Closing Date and continue until the Engines Financing Amendment Documents Delivery Date.

 

12

 

“Engines Financing Amendment Documents Delivery Date” means the date on which the Credit Parties deliver to Agent, in form and substance satisfactory to Agent, the Engines Financing Amendment Documents.

 

“Engines Financing Amendment Documents” means the following documents, in form and substance satisfactory to Agent, in respect of the collateral description in favor of Wells Fargo Bank Commercial Distribution Finance, LLC (as successor to GE Commercial Distribution Finance Corporation), consisting of (i) a UCC financing statement amendment, amending that certain UCC Financing Statement filed 06/30/2003 with the Mississippi Secretary of State as filing no. 20030108197B, and (ii) an amendment to the collateral description of that certain Amended and Restated Inventory Financing Agreement dated as of November 12, 2013 between Nautic and GE Commercial Distribution Finance, amending the security interest granted therein in each case in form and substance satisfactory to Agent.

 

“Environmental Claim” means any investigation, notice, violation, demand, allegation, action, suit, injunction, judgment, order, consent decree, penalty, fine, lien, proceeding or claim (whether administrative, judicial or private in nature) arising (a) pursuant to, or in connection with an actual or alleged violation of, any Environmental Law, (b) in connection with any Hazardous Material, (c) from any abatement, removal, remedial, corrective or response action in connection with a Hazardous Material, Environmental Law or order of a Governmental Authority, issued pursuant to any Environmental Law, or (d) from any actual or alleged damage, injury, threat or harm to health, environmental safety, natural resources or the environment from any Hazardous Material.

 

“Environmental Law” means any current or future Legal Requirement pertaining to (a) the protection of health, safety and the indoor or outdoor environment, (b) the conservation, management or use of natural resources and wildlife, (c) the protection or use of surface water or groundwater, (d) the management, manufacture, possession, presence, use, generation, transportation, treatment, storage, disposal, Release, threatened Release, abatement, removal, remediation or handling of, or exposure to, any Hazardous Material or (e) pollution (including any Release to air, land, surface water or groundwater), and any amendment, rule, regulation, order or directive issued thereunder.

 

“Equity Interests” shall mean, with respect to any Person, all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) of such Person’s capital, including equity appreciation rights, whether now outstanding or issued or acquired after the date of this Agreement, including common shares, preferred shares, membership interests in a limited liability company, limited or general partnership interests in a partnership or any other equivalent of such ownership interest.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, or any successor statute thereto.

 

“ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

 

13

 

“ERISA Event” means (a) a “reportable event” within the meaning of Section 4043 of ERISA or the regulations thereunder (excluding those for which notice to the PBGC has been waived as of the date hereof) with respect to a Pension Plan; (b) the failure to meet the Pension Funding Rules with respect to any Pension Plan (whether or not waived in accordance with Section 412(c) of the Code), the failure to make by its due date any minimum required contribution or any required installment under Section 430(j) of the Code with respect to any Pension Plan or the failure to make by its due date any required contribution to a Multiemployer Plan; (c) the withdrawal of the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which such entity was a “substantial employer” as defined in Section 4001(a)(2) of ERISA or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (d) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan; (e) the filing of a notice of intent to terminate, the treatment of a Pension Plan amendment as a termination under Section 4041 or 4041A of ERISA; (f) the institution by the PBGC of proceedings to terminate a Pension Plan under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; (g) notification that a Multiemployer Plan is in reorganization or is endangered or critical status within the meaning of Section 432 of the Code or Section 305 of ERISA; or (h) the imposition of any material liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon  the Borrower or any ERISA Affiliate.

 

“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

 

“Eurodollar Loan” means a Loan bearing interest at the rate specified in Section 2.4(b) hereof.

 

“Event of Default” means any event or condition identified as such in Section 7.1 hereof.

 

“Event of Loss” means, with respect to any Property, any of the following:  (a) any loss, destruction or damage of such Property or (b) any condemnation, seizure, or taking, by exercise of the power of eminent domain or otherwise, of such Property, or confiscation of such Property or the requisition of the use of such Property.

 

“Excess Cash Flow” shall mean, for each of the Credit Parties’ Fiscal Years, the EBITDA for such period (excluding any pro forma adjustments to EBITDA as a result of any Permitted Acquisition (but, in any case, including the actual EBITDA generated by the Person acquired in connection with the Permitted Acquisition during any period, from the date of the consummation of the Permitted Acquisition to the end of the applicable measurement period)), minus cash taxes (including, without limitation, foreign, federal, state and local income taxes paid during such period of the Credit Parties, including, without limitation, Permitted Tax Distributions made in cash during such period, minus actual principal and scheduled interest payments made with respect to Indebtedness during such period (including, without limitation, those principal payments required to be paid pursuant to Section 2.7(a) and (b) hereof), minus all Capital Expenditures (other than Capital Expenditures financed with the proceeds of purchase money indebtedness or capitalized lease obligations to the extent permitted under this Agreement) by the Credit Parties during such period, minus unfinanced consideration paid in such period with

 

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respect to any Permitted Acquisition including earnout payments, minus all cash items added back to EBITDA, excluding any Management Bonus Payments.

 

“Excess Interest” is defined in Section 10.16 hereof.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and any successor statute and the rules promulgated thereunder.

 

“Excluded Accounts” is defined in Section 4.2.

 

“Excluded Assets” is defined in Section 4.1.

 

“Excluded Subsidiary” means, as of the Original Closing Date and the Third Restatement Closing Date, Parts.

 

“Excluded Swap Obligation” means, with respect to any guarantor of a Swap Obligation, including the grant of a security interest to secure the guaranty of such Swap Obligation, any Swap Obligation if, and to the extent that, such Swap Obligation is or becomes illegal 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 and the regulations thereunder at the time the guaranty or grant of such security interest becomes effective with respect to such Swap Obligation.  If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Swap Obligation or security interest is or becomes illegal.

 

“Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by Borrower Representative under Section 8.6(b)) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 8.5, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 8.5(g) and (d) any U.S. federal withholding Taxes imposed under FATCA.

 

“Excluded Vehicles” is defined in Section 4.1.

 

“Existing Credit Agreement” has the meaning assigned to that term in the Recitals to this Agreement.

 

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“Existing Security Agreement” has the meaning assigned to that term in the Recitals to this Agreement.

 

“Facilities” means the Revolving Credit, the Term Credit, and any Facilities Increase.

 

“Facilities Increase” is defined in Section 2.16 hereof.

 

“Facilities Increase Lender(s)” is defined in Section 2.16 hereof.

 

“Facilities Increase Request” is defined in Section 2.16 hereof.

 

“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code and any intergovernmental agreements entered into in connection with the implementation of such Sections.

 

“FCPA” is defined in Section 5.24 hereof.

 

“Federal Funds Rate” means for any day, the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the rate determined by Fifth Third to be the average (rounded upward, if necessary, to the next higher 1/100 of 1%) of the rates per annum quoted to Fifth Third at approximately 11:00 a.m. (Cincinnati time) (or as soon thereafter as is practicable) on such day (or, if such day is not a Business Day, on the immediately preceding Business Day) by two or more federal funds brokers selected by Fifth Third for sale to Fifth Third at face value of federal funds in the secondary market in an amount equal or comparable to the principal amount owed to Fifth Third for which such rate is being determined.

 

“Fifth Third” means Fifth Third Bank, an Ohio banking corporation, in its individual capacity and any successor thereof.

 

“Fifth Third Fee Letter” is defined in Section 2.13(c) hereof.

 

“Fixed Charge Coverage Ratio” means, as of the date of determination thereof, the ratio of (a) EBITDA for such period minus (i) unfinanced Capital Expenditures for such period (for the avoidance of doubt, exclusive of Capital Expenditures financed with the proceeds of purchase money Indebtedness or Capital Leases to the extent permitted pursuant to Section 6.11 hereof), (ii) income taxes paid in cash for such period, and (iii) distributions paid in cash to the equity holders of the Credit Parties for income tax liabilities attributable to their allocated share of taxable income for such period including Permitted Tax Distributions, to (b) Fixed Charges, in each case, for the four fiscal quarters then ended.

 

“Fixed Charges” means, with reference to any period, for the Credit Parties and their Subsidiaries on a consolidated basis, without duplication, the sum of (a) all scheduled payments

 

16

 

of principal actually made during such period with respect to Indebtedness of the Credit Parties and their Subsidiaries, plus (b) the cash portion of any Interest Expense for such period.

 

“Floorplan First Loss Guaranty Obligations” means any guaranty obligations of the Credit Parties in respect of floorplan financing arrangements of the Credit Parties.

 

“Floorplan Repurchase Obligations” means repurchase obligations of the Credit Parties pursuant to the floorplan financing arrangements of the Credit Parties.

 

“Foreign Lender” means (a) if a Credit Party is a U.S. Person, a Lender that is not a U.S. Person, and (b) if a Credit Party is not a U.S. Person, a Lender that is resident or organized under the laws of a jurisdiction other than that in which such Credit Party is resident for tax purposes.

 

“Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.

 

“Foreign Plan” means any pension plan, fund or other similar program (other than a government-sponsored plan) that (a) primarily covers employees of any Credit Party and/or any of its Subsidiaries who are employed outside of the United States and (b) is subject to any statutory funding requirement as to which the failure to satisfy results in a Lien or other statutory requirement permitting any governmental authority to accelerate the obligation of such Credit Party or any Subsidiary of such Credit Party to fund all or a substantial portion of the unfunded, accrued benefit liabilities of such plan

 

“Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to any L/C Issuer, such Defaulting Lender’s Applicable Percentage of the outstanding L/C Obligations with respect to Letters of Credit issued by such L/C Issuer other than L/C Obligations as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof, and (b) with respect to any Swing Line Lender, such Defaulting Lender’s Applicable Percentage of outstanding Swing Loans made by such Swing Line Lender other than Swing Loans as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders.

 

“Fund” means any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities.

 

“Funding Account” is defined in Section 2.5(d) hereof.

 

“GAAP” means generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the U.S. accounting profession), which are applicable to the circumstances as of the date of determination.

 

“Governmental Authority” means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising

 

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executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

 

“Guarantied Obligations” is defined in Section 11.1 hereof.

 

“Guarantors” means, collectively, each Person who now or hereafter guarantees payment or performance of the whole or any part of the Obligations.  Each Borrower hereunder is a Guarantor of the Obligations of the other Borrowers hereunder pursuant to Section 11 hereof.  As of the Original Closing Date, the Restatement Closing Date, the Second Restatement Date, and the Third Restatement Closing Date, Holdings is the only non-Borrower Guarantor.

 

“Guaranty” and “Guaranties” means Section 11 of this Agreement and each separate guaranty, in form and substance reasonably satisfactory to the Agent, delivered by any Guarantor.

 

“Hazardous Material” means any substance, chemical, compound, product, solid, gas, liquid, waste, byproduct, pollutant, contaminant or material which is listed, identified, classified or regulated as “hazardous” or “toxic” or words of like import pursuant to an Environmental Law, including without limitation, asbestos, polychlorinated biphenyls and petroleum (including crude oil or any fraction thereof).

 

“Holdings” means MCBC Holdings, Inc., a Delaware corporation and a Guarantor hereunder.

 

“Hostile Acquisition” means the acquisition of the capital stock or other Equity Interests of a Person through a tender offer or similar solicitation of the owners of such capital stock or other Equity Interests which has not been approved (prior to such acquisition) by resolutions of the Board of Directors of such Person or by similar action if such Person is not a corporation, or, if such acquisition has been so approved, as to which such approval has not been withdrawn

 

“Hydra” means MCBC Hydra Boats, LLC, a Tennessee limited liability company and a Borrower hereunder.

 

“Incremental Revolving Credit” means the credit facility for the Incremental Revolving Loans described in Section 2.16 hereof.

 

“Incremental Revolving Loan” is defined in Section 2.16 hereof and, as so defined, includes a Base Rate Loan, a Eurodollar Loan, each of which is a “type” of Incremental Revolving Loan hereunder.

 

“Incremental Revolving Loan Commitments” as to any Revolving Lender, the obligation of such Lender to make Incremental Revolving Loans.

 

“Incremental Term Credit” means the credit facility for the Incremental Term Loans described in Section 2.16 hereof.

 

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“Incremental Term Loan” is defined in Section 2.16 hereof and, as so defined, includes a Base Rate Loan, a Eurodollar Loan, each of which is a “type” of Incremental Term Loan hereunder.

 

“Incremental Term Loan Commitments” as to any Term Loan Lender, the obligation of such Lender to make Incremental Term Loans.

 

“Indebtedness” means for any Person (without duplication) (a) all indebtedness of such Person for borrowed money, whether current or funded, or secured or unsecured, (b) all indebtedness for the deferred purchase price of Property or services, it being understood that the term “Indebtedness” shall not include (i) trade accounts payable or (ii) accrued expenses, in each case arising in the ordinary course of business, (c) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to Property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of a default are limited to repossession or sale of such Property), (d) all indebtedness secured by a purchase money mortgage or other Lien to secure all or part of the purchase price of Property subject to such mortgage or Lien, (e) all obligations under leases which shall have been or must be, in accordance with GAAP, recorded as Capital Leases in respect of which such Person is liable as lessee, (f) any liability in respect of bankers acceptances or letters of credit, (g) any indebtedness, whether or not assumed, secured by Liens on Property acquired by such Person at the time of acquisition thereof, (h) all obligations under any so-called “synthetic lease” transaction entered into by such Person, (i) all obligations under any so-called “asset securitization” transaction entered into by such Person, (j) earnouts, seller notes and similar deferred purchase rice payment obligations of such Person, (k) all Contingent Obligations with respect to liabilities which otherwise constitute “Indebtedness” and (l) all Equity Interests of such Person subject to repurchase or redemption  prior to the Maturity Date (other than in connection with a Change of Control).

 

“Indemnified 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 any Credit Party under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

 

“Indemnitee” has the meaning set forth in Section 10.11.

 

“Information” is defined in Section 10.21 hereof.

 

“Intellectual Property” means (i) the names of the Credit Parties and all fictional business names, trading names, registered and unregistered trademarks, service marks, and applications thereof; (b) all patents, patent applications, and inventions and discoveries that may be patentable;(c) all copyrights in both published and unpublished works; and (d) all know-how, trade secrets, confidential information, customer lists, software, technical information, data, process technology, plans, drawings and blue prints, all of the foregoing being owned, used, and/or licensed by Borrowers and the other Credit Parties (or any one or more of them).

 

“Interest Expense” means, with reference to any period, the sum of all interest charges (including fees incurred with respect to letters of credit and imputed interest charges with respect to Capitalized Lease Obligations and all amortization of debt discount and expense) of the Credit

 

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Parties and their Subsidiaries for such period determined on a consolidated basis in accordance with GAAP.

 

“Interest Period” means for each Eurodollar Loan, a period of 1, 2, 3 or 6 months, at Borrower Representative’s election, which period shall commence on a Business Day selected by Borrower Representative subject to the terms of this Agreement and shall be determined by Agent in accordance with this Agreement and Agent’s loan systems and procedures periodically in effect, including, without limitation, in accordance with the following terms and conditions, as applicable:

 

(1)           In the case of immediately successive Interest Periods with respect to a continued Eurodollar Loan, each successive Interest Period shall commence on the day on which the immediately preceding Interest Period expires, with interest for such day to be calculated based upon the LIBOR rate in effect for the new Interest Period;

 

(2)           If an Interest Period would otherwise end on a day that is not a Business Day, such Interest Period shall end on the next succeeding Business Day; provided that, if the next succeeding Business Day falls in a new month, such Interest Period shall end on the immediately preceding Business Day; and

 

(3)           If any Interest Period begins on a Business Day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period, then the Interest Period shall end on the last Business Day of the calendar month ending at the end of such Interest Period;

 

(4)           and no Interest Period with respect to any portion of the Term Loan shall extend beyond the final Maturity Date of the Term Loan, and no Interest Period with respect to any portion of the Term Loans shall extend beyond a date on which Borrowers are required to make a scheduled payment of principal on the Term Loans, unless the sum of (x) the aggregate principal amount of Term Loans that are Base Rate Loans plus (y) the aggregate principal amount of Term Loans that are Eurodollar Loans with Interest Periods expiring on or before such date equals or exceeds the principal amount to be paid on the Term Loans on such payment date; and

 

(5)           As of the Third Restatement Closing Date, the applicable Interest Period may be, as determined by Agent, for a period of less than one month.

 

“IRS” means the United States Internal Revenue Service.

 

“Joinder Agreement” means an agreement pursuant to which a new Credit Party becomes a party to this Agreement, substantially in form of Exhibit G.

 

“L/C Fee” is defined in Section 2.13(b) of this Agreement.

 

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“L/C Issuer” means Fifth Third, in its capacity as issuer of Letters of Credit hereunder and any successor L/C Issuer.

 

“L/C Obligations” means the aggregate undrawn face amounts of all outstanding Letters of Credit (including all automatic increases provided for in such Letters of Credit, whether or not any such automatic increase has become effective) and all unpaid Reimbursement Obligations.

 

“L/C Sublimit” means $5,000,000, as reduced pursuant to the terms hereof.

 

“Legal Requirement” means any treaty, convention, statute, law, regulation, ordinance, license, permit, governmental approval, injunction, judgment, order, consent decree or other requirement of any Governmental Authority.

 

“Lenders” means the Persons listed on Schedule 1 and any other Person that shall have become party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.  Unless the context requires otherwise, the term “Lenders” includes the Revolving Lenders, the Term Lenders and the Swing Line Lenders.  In addition to the foregoing, for the purpose of identifying the Persons entitled to share in the Collateral and the Proceeds thereof under, and in accordance with the provisions of, this Agreement and the Collateral Documents, the term “Lender” shall include Affiliates of a Lender to which any permitted Rate Management Obligations or Banking Services Obligations is owed.

 

“Lender Party” is defined in Section 10.21 hereof.

 

“Lending Office” is defined in Section 8.6 hereof.

 

“Letter of Credit” is defined in Section 2.3(a) hereof.

 

“LIBOR” means, for an Interest Period for a Borrowing of Eurodollar Loans, the rate of interest per annum rounded upwards (the “Rounding Adjustment”), if necessary, to the next 1/100,000 of 1% fixed by ICE Benchmark Administration Limited (or any successor thereto, or replacement thereof, reasonably approved by Agent, each an “Alternative LIBOR Source”) at approximately 11:00 a.m., London, England time (or the relevant time established by ICE Benchmark Administration Limited, an Alternate LIBOR Source, or Agent, as applicable), two (2) Business Days prior to such date of determination, relating to quotations for the applicable 1 month, 2 month, 3 month or 6 month London InterBank Offered Rates on U.S. Dollar deposits, as displayed by Bloomberg LP (or any successor thereto or replacement thereof, as reasonably approved by Agent, each an “Approved Bloomberg Successor”), or if no longer displayed by Bloomberg LP (or any Approved Bloomberg Successor), such rate of interest per annum as shall be determined in good faith by Agent from such sources as it shall determine to be comparable to Bloomberg LP (or any Approved Bloomberg Successor), all as determined by Agent in accordance with this Agreement and Agent’s loan systems and procedures periodically in effect; provided that, notwithstanding the foregoing, in no event shall the LIBOR Rate be less than zero percent (0%) as of any date (the “LIBOR Rate Minimum”); provided further that, at any time during which a Rate Management Agreement with Agent is then in effect with respect to all or a portion of the Obligations, the LIBOR Rate Minimum and the Rounding Adjustment shall all be

 

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disregarded and no longer of any force and effect with respect to such portion of the Obligations subject to such Rate Management Agreement.

 

“Lien” means any deed of trust, mortgage, lien, security interest, pledge, charge or encumbrance of any kind in respect of any Property, including the interests of a vendor or lessor under any conditional sale, Capital Lease or other title retention arrangement.

 

“Loan” means any Revolving Loan, Term Loan or Swing Loan, whether outstanding as a Base Rate Loan or Eurodollar Loan as permitted hereunder, each of which is a “type” of Loan hereunder.

 

“Loan Documents” means this Agreement, the Notes, the Applications, the Collateral Documents, the Guaranties, the Rate Management Agreements, Banking Services Obligations agreements, any Subordination Agreement, the Fifth Third Fee Letter and each other agreement, instrument or document to be delivered hereunder or thereunder or otherwise in connection therewith, other than Hedge Agreements.

 

“Management Bonus Payments” is defined in Section 5.7 hereof.

 

“MasterCraft” means MasterCraft Boat Company, LLC, a Delaware limited liability company, a Subsidiary of Holdings, and a Borrower and Borrower Representative hereunder.

 

“Material Adverse Effect” means (a) a material adverse change in, or material adverse effect upon, the operations, business, Property, or financial condition of the Credit Parties and their Subsidiaries taken as a whole, (b) a material impairment of the ability of the Credit Parties and their Subsidiaries taken as a whole to perform their obligations under any Loan Document or (c) a material adverse effect upon (i) the legality, validity, binding effect or enforceability against any Credit Party or any Subsidiary of any Loan Document or the rights and remedies of the Agent and the Lenders thereunder or (ii) the perfection or priority of any Lien granted under any Collateral Document, other than as a direct result of an action, inaction or failure of the Agent or any Lender.

 

“Material Contract” means, with respect to any Person, each contract or agreement (a) to which such Person is a party involving aggregate consideration payable to or by such Person of $2,000,000 or more in any year or (b) contracts involving Floorplan Repurchase Obligations in excess of $1,500,000, or (c) any other contract, agreement, permit or license, written or oral, of such Person as to which the breach, nonperformance, cancellation or failure to renew by any party thereto, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

 

“Material Plan” is defined in Section 7.1(h) hereof.

 

“Maturity Date” means October 2, 2022.

 

“Maximum Liability” is defined in Section 11.

 

“Maximum Rate” is defined in Section 10.16 hereof.

 

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“Minimum Collateral Amount” means, at any time, with respect to Cash Collateral consisting of cash or deposit account balances, an amount equal to 103% of the Fronting Exposure of all L/C Issuers with respect to Letters of Credit issued and outstanding at such time.

 

“Moody’s” means Moody’s Investors Service, Inc.

 

“Mortgages” means, collectively, each Mortgage and Security Agreement with Assignment of Rents and Open-End Mortgage and Security Agreement with Assignment of Rents between any Credit Party and the Agent relating to such Credit Party’s real property, fixtures and interests in real property owned as of the Third Restatement Closing Date and commonly known as (i) 100 Cherokee Cove Drive, Monroe County, Vonore Tennessee 37885, and (ii) 500 Waterway Drive , Amory, MS 38821, and any other mortgages or deeds of trust delivered to the Agent pursuant to Section 4.2 hereof, as the same may be amended, modified, supplemented or restated from time to time.

 

“Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which Borrower or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five (5) plan years, has made or been obligated to make contributions.

 

“Multiple Employer Plan” means a Plan which has two or more contributing sponsors (including Borrower or any ERISA Affiliate) at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA

 

“Nautic” means Nautic Star, LLC, a Mississippi limited liability company, and a Borrower hereunder.

 

“Nautic Star Acquisition” means the Acquisition on the Third Restatement Closing Date of one hundred percent (100%) of the Equity Interests of Target pursuant to the Nautic Star Acquisition Documents.

 

“Nautic Star Acquisition Documents” means , collectively, the Nautic Star Purchase Agreement and all documents and instruments executed and delivered in connection therewith.

 

“Nautic Star Purchase Agreement”  means that certain Membership Interest Purchase Agreement by and among MCBC Holdings, Inc., Nautic Star, LLC, the Members of Nautic Star, LLC party thereto, and the other parties named therein, dated as of the Third Restatement Closing Date.

 

“Navigator” means Navigator Marine, LLC, Mississippi limited liability company, and a Borrower hereunder.

 

“NS Transport” means NS Transport, LLC, Mississippi limited liability company, and a Borrower hereunder.

 

“Net Cash Proceeds” means, as applicable, (a) with respect to any Disposition by a Person, cash and cash equivalent proceeds received by or for such Person’s account, net of (i) reasonable direct costs relating to such Disposition (ii) sale, use or other transactional taxes

 

23

 

paid or payable by such Person as a direct result of such Disposition, (iii) the amount of any Indebtedness secured by any Permitted Lien on any asset which is required to be and is, repaid in connection with such sale or disposition, and (iv) reasonable amounts held in escrow or otherwise held as a reserve against any liabilities under any indemnification obligations associated with such Disposition, (b) with respect to any Event of Loss of a Person, cash and cash equivalent proceeds received by or for such Person’s account (whether as a result of payments made under any applicable insurance policy therefor or in connection with condemnation proceedings or otherwise), net of reasonable direct costs incurred in connection with the collection of such proceeds, awards or other payments, and (c) with respect to any offering of Equity Interests of a Person or the issuance of any Indebtedness by a Person, cash and cash equivalent proceeds received by or for such Person’s account, net of (i) reasonable legal, underwriting, and other fees and expenses incurred as a direct result thereof and (ii) taxes paid or payable by such Person as a direct result of such offering or issuance.

 

“Net Income” means, with reference to any period, the net income (or net loss) of the Credit Parties and their Subsidiaries for such period computed on a consolidated basis in accordance with GAAP; provided that, there shall be excluded from Net Income (a) the net income (or net loss) of any Person accrued prior to the date it becomes a Subsidiary of, or has merged into or consolidated with, any Credit Party or another Subsidiary, except to the extent that the Credit Parties have delivered either (i) the financial statements of the Acquired Business for such period, which financial statements shall have been audited by an independent accounting firm reasonably satisfactory to the Agent and the Required Lenders or otherwise in a form reasonably acceptable to Agent and the Required Lenders, or (ii) a quality of earnings report of the Acquired Business covering such period, which quality of earnings report is in a form reasonably satisfactory to Agent, and the Agent agrees to the inclusion of such net income (or net loss) of such Person and (b) the net income (or net loss) of any Person (other than a Subsidiary) in which any Credit Party or any Subsidiary has an Equity Interest in, except to the extent of the amount of dividends or other distributions actually paid to any Credit Party or any Subsidiary during such period, (c) gains and losses or charges relating to the disposition of assets (other than the sale of inventory in the ordinary course of business), (d) gains and losses or charges relating to discontinued operations, (e) extraordinary gains and losses or charges, and (f) the impact of any purchase accounting treatment or changes in accounting principles.

 

“Non-Consenting Lender” means any Lender that does not approve any consent, waiver or amendment that (i) requires the approval of all affected Lenders in accordance with the terms of Section 10.9 and (ii) has been approved by the Required Lenders.

 

“Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such time.

 

“Non-Paying Guarantor” is defined in Section 11.10.

 

“Notes” means and includes the Revolving Notes, the Term Notes and the Swing Note.

 

“Obligations” means all obligations of any Borrower to pay principal and interest on the Loans, all Reimbursement Obligations owing under the Applications, all fees and charges payable hereunder, and all other payment obligations (monetary (including post-petition interest,

 

24

 

allowed or not) or otherwise) of any Credit Party or any Subsidiary of any Credit Party arising under or in relation to any Loan Document, all Rate Management Obligations permitted hereunder, and all Banking Services Obligations, in each case whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held or acquired.  Notwithstanding the foregoing, the term Obligations shall exclude any Excluded Swap Obligation.

 

“OFAC” means the Office of Foreign Assets control of the U.S. Department of the Treasury.

 

“OFAC Sanctions” means the country or list based economic and trade sanctions administered and enforced by OFAC.

 

“Original Closing Date” means December 20, 2013.

 

“Original Loan Agreement” is defined in the Recitals hereto.

 

“Original Security Agreement” is defined in the Recitals hereto.

 

“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising solely from such Recipient 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 Loan or Loan Document).

 

“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise 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 Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 8.6).

 

“Outstanding Indebtedness” is defined in Section 1.5 hereof.

 

“Outstanding Revolving Loans” is defined in Section 1.5 hereof.

 

“Outstanding Term Loans” is defined in Section 1.5 hereof.

 

“Participant” has the meaning assigned to such term in clause (d) of Section 10.8.

 

“Participant Register” has the meaning specified in clause (d) of  Section 10.8.

 

“Participating Interest” is defined in Section 2.3(d) hereof.

 

“Participating Lender” is defined in Section 2.3(d) hereof.

 

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“Parts” means MasterCraft Parts, Ltd., a United Kingdom private limited company, a wholly-owned Subsidiary of Holdings, and an Excluded Subsidiary hereunder.

 

“PATRIOT ACT” is defined in Section 5.24(b) hereof.

 

“Paying Guarantor” is defined in Section 11.10 hereof.

 

“Payment in Full” means, as of any date of determination, that (a) the Obligations and the Guarantied Obligations (in each case, other than contingent indemnification obligation and reimbursement obligations in respect of which no claim for payment has yet been asserted by the Person entitled thereto, and Banking Services Obligations not then due and owing), as applicable, are fully paid and satisfied, (b) all Letters of Credit have been cancelled and returned to the L/C Issuer or either (i) replaced by an irrevocable letter of credit, on terms acceptable to the L/C Issuer, issued by a financial institution acceptable to the L/C Issuer, or (ii) Cash Collateralized, in each case, in an amount at least equal to 103% of the L/C Obligations, as of such date and on terms satisfactory to the L/C Issuer, and (c) the Commitments and this Agreement are terminated.

 

“PBGC” means the Pension Benefit Guaranty Corporation or any Person succeeding to any or all of its functions under ERISA.

 

“Pension Funding Rules” means the rules of the Code and ERISA regarding minimum required contributions (including any installment payment thereof) to Pension Plans and set forth in Sections 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.

 

“Pension Plan” means any Plan that is maintained or is contributed to by the Borrower and any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the Pension Funding Rules.

 

“Percentage” means for any Lender its Applicable Percentage, Term Loan Percentage; and where the term “Percentage” is applied on an aggregate basis (including, without limitation, Section 9.6 hereof), such aggregate percentage shall be calculated by aggregating the separate components of the Applicable Percentage, Term Loan Percentage, and expressing such components on a single percentage basis.

 

“Permitted Acquisition” means (i) any Acquisition pursuant to which Agent and Required Lenders grant their prior written consent (which consent may be granted or withheld in each Person’s sole and absolute discretion) or (ii) any Acquisition with respect to which all of the following conditions shall have been satisfied (unless otherwise approved in writing by Required Lenders):

 

(a)                                 not less than twenty (20) Business Days prior to the anticipated consummation thereof, Agent shall have received written notice of a proposed Acquisition and, to the extent available (or, if later, promptly after they become available) copies of all material Acquisition documents (with appropriate updated drafts thereof to be delivered to Agent promptly following the general distribution thereof);

 

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(b)                                 Agent shall have received pro forma financial statements and a pro forma Compliance Certificate demonstrating that, after giving effect to such Acquisition, and on a trailing twelve (12) month basis, the Credit Parties and their Subsidiaries shall have (i) a Total Net Leverage Ratio  equal to or less than the Total Net Leverage Ratio, required by Section 6.22(a) for the most recent measurement period, and (ii) a Fixed Charge Coverage Ratio equal to or greater than the Fixed Charge Coverage Ratio required by Section 6.22(b) for the most recent measurement period;

 

(c)                                  following receipt of the notice and other materials described in the preceding clause (a), upon the reasonable request of Agent, Borrower shall promptly provide to Agent (and Agent shall promptly provide copies to the Lenders) (i) historical financial statements of the applicable target(s) for the most recent twelve (twelve (12) months prior to such Acquisition for which such financial statements are available and (ii) all material due diligence and other material background materials made available to any Credit Party with respect to the entity or assets to be acquired in such Acquisition, including without limitation, additional financial statements and environmental reports, together with such other material information as Agent may reasonably request;

 

(d)                                 no Default or Event of Default shall exist prior to, or as the result of, such Acquisition;

 

(e)                                  no more than three (3) Permitted Acquisitions shall be completed in a fiscal year of the Credit Parties;

 

(f)                                   at any time the Total Net Leverage Ratio is greater than 2.25 to 1.0 on a pro forma basis after giving effect to a proposed Acquisition, the Total Consideration for Permitted Acquisitions shall not exceed $50,000,000 for any one Permitted Acquisition or $100,000,000 in the aggregate for all Permitted Acquisitions during the term of the Credit Agreement;

 

(g)                                  the proposed Acquired Business must have generated zero or positive EBITDA (with adjustments limited to shareholder distributions, owners’ compensation and pro forma cost structure/headcount adjustments and other adjustments as may be agreed by Agent and Borrower Representative) in the preceding year;

 

(h)                                 after giving effect to the proposed Acquisition, Borrowers shall have pro forma Revolving Loan Availability of at least $10,000,000;

 

(i)                                     the Acquired Business is in the same or similar line of business as Borrowers and has its primary operations in the United States (and, if an entity is being acquired, such entity is organized under the laws of a state of the United States);

 

(j)                                    the Permitted Acquisition shall not be a Hostile Acquisition;

 

(k)                                 contemporaneously with the closing of such Permitted Acquisition, Agent shall be granted a first priority perfected security interest (subject to Permitted Liens) in all assets of the Acquired Business and, if any entity is to be acquired, to the extent required by this Agreement (i) the Equity Interests of such Acquired Business shall be pledged to Agent, (ii) such

 

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entity shall become a Guarantor or Borrower (as determined by Agent), and (iii) such entity shall execute and deliver to Agent a joinder agreement to this Agreement and the Security Agreement and such other documents and instruments as reasonably required by Agent and the Lenders; and

 

(l)                                     Borrower Representative shall certify the satisfaction of the foregoing conditions on or prior to the date such Acquisition is consummated.

 

“Permitted Discretion” means a determination made in good faith and in the exercise of commercially reasonable (from the perspective of a secured lender) credit judgment.

 

“Permitted Lien” is defined in Section 6.12 hereof.

 

“Permitted Refinancing Indebtedness” means, with respect to any Indebtedness, any extensions, renewals or refinancing of any such Indebtedness (as used in the definition, the refinancing Indebtedness); provided, that (a) the principal amount of such Indebtedness is not increased at the time of extension, renewal or refinancing except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any existing commitments unutilized thereunder; (b) the refinancing Indebtedness is on the whole and in all material respects on terms no less favorable (as adjusted for current market conditions) to the Credit Parties than such Indebtedness; (c) the weighted average life to maturity of the refinancing Indebtedness is greater than the weighted average life to maturity of such Indebtedness; (d) if such Indebtedness is (i) Subordinated Debt, the refinancing Indebtedness is subordinated to the Obligations to the same extent that such Indebtedness is subordinated to the Obligations; or (ii) unsecured, such refinancing Indebtedness shall be unsecured; and (e) the refinancing Indebtedness is incurred by the same Person or Persons (or their successor(s)) that initially incurred (including, without limitation, by Guaranty) such Indebtedness.

 

“Permitted Tax Distributions” means, for so long as any Borrower (i) is treated as a disregarded entity of which Holdings is the sole owner for U.S. federal income tax purposes or (ii) is a corporation that files consolidated, combined, unitary or similar tax returns with Holdings for U.S. federal (or state and local) income tax purposes, cash distributions by such Borrower to Holdings in amounts sufficient to permit Holdings to pay federal, state and local income taxes (including estimated taxes) then due and payable, to the extent such taxes are attributable to income or gain of such Borrower or any Subsidiary of such Borrower.

 

“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

 

“Plan” means any employee benefit plan within the meaning of Section 3(3) of ERISA or subject to the minimum funding standards under Section 412 of the Code that either (a) is maintained by any Credit Party or any ERISA Affiliate or to which any Credit Party or an ERISA Affiliate is then making or accruing an obligation to make contributions or has within the preceding five (5) plan years made contributions.

 

“Post-Closing Agreement” means that certain Post-Closing Agreement between the Credit Parties and Agent dated as of the Third Restatement Closing Date.

 

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“Premises” means the real property owned or leased by any Credit Party or any Subsidiary, including, without limitation, the real property and improvements thereon owned by any Credit Party or any Subsidiary subject to the Lien of the Mortgages or any other Collateral Documents.

 

“Proceeding” is defined in Section 10.08(g) hereof.

 

“Property” means, as to any Person, all types of real, personal, tangible, intangible or mixed property owned by such Person whether or not included in the most recent balance sheet of such Person and its Subsidiaries under GAAP.

 

“Qualified ECP Guarantor” shall mean, in respect of any Swap Obligation, each Credit Party that has total assets exceeding $10,000,000 at the time such Swap Obligation is incurred or such other Person as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another Person to qualify as an “eligible contract participant” at such time by entering into a keepwell, support or other agreement as contemplated by Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

“Rate Management Agreement” means any agreement, device or arrangement providing for payments which are related to fluctuations of interest rates, exchange rates, forward rates, or equity prices, including, but not limited to, dollar-denominated or cross-currency interest rate exchange agreements, forward currency exchange agreements, interest rate cap or collar protection agreements, forward rate currency or interest rate options, puts and warrants, and any agreement pertaining to equity derivative transactions (e.g., equity or equity index swaps, options, caps, floors, collars and forwards), including without limitation any ISDA Master Agreement or foreign exchange risk, currency risk, or risk with respect to commodities prices, in each case, between the Credit Parties or any Subsidiary (or any one or more of them) and Agent, any Lender, or any Affiliate of Agent or any Lender, and any schedules, confirmations and documents and other confirming evidence between the parties confirming transactions thereunder, all whether now existing or hereafter arising, and in each case as amended, modified or supplemented from time to time.

 

“Rate Management Obligations” means any and all obligations of any Borrower to Agent, any Lender, or any Affiliate of Agent or any Lender, whether absolute, contingent or otherwise and howsoever and whensoever (whether now or hereafter) created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor), under or in connection with (i) any and all Rate Management Agreements, and (ii) any and all cancellations, buy-backs, reversals, terminations or assignments of any Rate Management Agreement.

 

“RCRA” means the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976 and Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. §§6901 et seq., and any future amendments.

 

“Recipient” means (a) the Agent, (b) any Lender  and (c) any L/C Issuer, as applicable.

 

“Register” is defined in Section 10.8(c) hereof.

 

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“Reimbursement Obligation” is defined in Section 2.3(c) hereof.

 

“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person’s Affiliates.

 

“Release” shall mean any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, disposing or migration into the environment.

 

“Remittances” means all checks, drafts, money orders, electronic funds transfers, and other items and all cash and other remittances of every kind due any Borrower on its Accounts or other Collateral.

 

“Required Lenders” means, at any time, Lenders having Total Credit Exposures representing more than 50% of the Total Credit Exposures of all Lenders; provided, however, (a) if there are two (2) Lenders, Required Lenders shall mean both Lenders, (b) if there are three (3) Lenders, Required Lenders shall mean Lenders having Total Credit Exposures representing at least 66 2/3% of the Total Credit Exposures of all Lenders, and (c) Lenders that are Affiliates of one another shall be considered as one Lender.  The Total Credit Exposure of any Defaulting Lender shall be disregarded in determining Required Lenders at any time.

 

“Reserves” means any reserve against or block under the Revolving Credit Commitment and Revolving Loan Availability, as may be agreed between Agent and Borrower Representative from time to time, including without limitation and as of the Third Restatement Closing Date, the Engines Reserve.

 

“Reserve Percentage” means, for any Borrowing of Eurodollar Loans, the daily average for the applicable Interest Period of the maximum rate, expressed as a decimal, at which reserves (including, without limitation, any supplemental, marginal, and emergency reserves) are imposed during such Interest Period by the Board of Governors of the Federal Reserve System (or any successor) on “eurocurrency liabilities”, as defined in such Board’s Regulation D (or in respect of any other category of liabilities that includes deposits by reference to which the interest rate on Eurodollar Loans is determined or any category of extensions of credit or other assets that include loans by non-United States offices of any Lender to United States residents), subject to any amendments of such reserve requirement by such Board or its successor, taking into account any transitional adjustments thereto.  For purposes of this definition, the Eurodollar Loans shall be deemed to be “eurocurrency liabilities” as defined in Regulation D without benefit or credit for any prorations, exemptions or offsets under Regulation D.

 

“Responsible Officer” means each of the chief executive officer, the president, the treasurer, the comptroller, the chief financial officer and principal accounting officer of a Credit Party or Borrower Representative, as applicable, or any other officer or individual having substantially the same authority and responsibility.

 

“Restatement Closing Date” means March 13, 2015.

 

“Restricted Payment” means (a) any dividend or other distribution, direct or indirect, on account of any shares (or equivalent) of any class of capital stock or other Equity Interest of any

 

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Credit Party or any of its Subsidiaries, now or hereafter outstanding, (b) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any shares (or equivalent) of any class of capital stock or other Equity Interest of any Credit Party or any of its Subsidiaries, now or hereafter outstanding, (c) any payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire shares of any class of capital stock or other Equity Interest of any Credit Party or any of its Subsidiaries, now or hereafter outstanding, (d) any payment or prepayment of principal of, premium, if any, or interest on, redemption, purchase, retirement, defeasance, sinking fund or similar payment with respect to, any Subordinated Debt (if any) of any Credit Party or any of its Subsidiaries, (e) any payment from any Credit Party to an owner of its Equity Interests not expressly permitted by Section 6.15, and (f) the payment by any Credit Party or any of its Subsidiaries of any management, advisory or consulting fee to any Person or the payment of any extraordinary salary, bonus or other form of compensation to any Person who is directly or indirectly a significant partner, shareholder, owner or executive officer of any such Person, including, without limitation, pursuant to any management fee agreements.

 

“Revolving Credit” means the credit facility for making Revolving Loans, Incremental Revolving Loans and Swing Loans and issuing Letters of Credit described in Sections 2.2, 2.3 and 2.11 hereof.

 

“Revolving Credit Commitment” means, as to any Lender, the obligation of such Lender to make Revolving Loans and Incremental Revolving Loans and to participate in Swing Loans and Letters of Credit issued for the account of Borrowers hereunder in an aggregate principal or face amount at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 1 attached hereto and made a part hereof, as the same may be reduced, increased or otherwise modified at any time or from time to time pursuant to the terms hereof.  Borrowers and the Lenders acknowledge and agree that the Revolving Credit Commitments of the Lenders aggregate $30,000,000 on the Third Restatement Closing Date.

 

“Revolving Credit Exposure” means, as to any Revolving Lender at any time, the aggregate principal amount at such time of its outstanding Revolving Loans and Incremental Revolving Loans, and such Revolving Lender’s participation in L/C Obligations and Swing Loans at such time.

 

“Revolving Credit Termination Date” means the Maturity Date or such earlier date on which the Revolving Credit Commitments are terminated in whole pursuant to Section 2.10, 7.2 or 7.3 hereof.

 

“Revolving Lender” means, as of any date of determination, a Lender with a Revolving Credit Commitment or, if the Revolving Credit Commitments have terminated or expired, a Lender with Revolving Credit Exposure

 

“Revolving Loan” is defined in Section 2.2 hereof and, as so defined, includes a Base Rate Loan or a Eurodollar Loan, each of which is a “type” of Revolving Loan hereunder.

 

“Revolving Loan Availability” means, as at any time, an amount, in Dollars, equal to:

 

(a)                                 an amount equal to the then effective total Revolving Credit Commitment;

 

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less                             (b)                                 the aggregate outstanding principal amount of all Revolving Loans and Swing Loans;

 

less                             (c)                                  the then existing L/C Obligations; and

 

less                             (d)                                 any Reserves.

 

“Revolving Note” is defined in Section 2.12(d) hereof.

 

“S&P” means Standard & Poor’s Ratings Services Group, a division of The McGraw-Hill Companies, Inc.

 

“Sales Administration” means MasterCraft International Sales Administration, Inc., a Delaware corporation, and a Borrower hereunder.

 

“Sanctions” means all economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including OFAC Sanctions or the U.S. Department of State, or (b) the United Nations Security Council, the European Union, any European Union member state or Her Majesty’s Treasury of the United Kingdom or other relevant sanctions authority.

 

“Sanctioned Entity” means (a) a country or a government of a country, or a region or territory which is itself the subject or target of any Sanctions (as of the Third Restatement Closing Date, Crimea, Cuba, Iran, North Korea, Sudan and Syria), (b) an agency of the government of a country, (c) an organization directly or indirectly controlled by a country or its government, (d) a Person resident in or determined to be resident in a country, in each case, that is subject to a country sanctions program administered and enforced by OFAC, or is otherwise subject to Sanctions.

 

“Sanctioned Person” means , at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC or the U.S. Department of State or by the United Nations Security Council, the European Union, any European Union member state, Her Majesty’s Treasury of the United Kingdom or other relevant sanctions authority, (b) any Person operating, organized or resident in a Sanctioned Entity or (c) any Person owned or controlled by any such Person or Persons described in the foregoing clauses (a) or (b).

 

“SEC” means the Securities and Exchange Commission or any Governmental Authority succeeding to any of its principal fractions.

 

“Security Agreement” means the Existing Security Agreement, as the same may be amended, modified, supplemented or restated from time to time, including as of the Third Restatement Closing Date.

 

“Services” means MasterCraft Services, Inc., a Tennessee corporation, a Subsidiary of MasterCraft, and a Borrower hereunder.

 

“Settlement” is defined in Section 2.11(d) hereof.

 

“Settlement Date” is defined in Section 2.11(d) hereof.

 

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“Subordinated Debt” shall mean, collectively, all Indebtedness of any Credit Party or any Subsidiary that is subordinated to the Obligations pursuant to a Subordination Agreement or the terms thereof in a manner reasonably satisfactory to the Required Lenders, and contains terms, including, without limitation, payment terms, reasonably satisfactory to the Agent.

 

“Subordinated Debt Documents” shall mean, collectively, any and all instruments, documents and agreements executed and/or delivered in connection with any Subordinated Debt, in each case as amended, restated, supplemented or otherwise modified from time to time in accordance with the terms of the applicable Subordination Agreement.

 

“Subordination Agreements” shall mean, individually and collectively, all subordination agreements, intercreditor agreements, consent and similar agreements among any Credit Party, the Agent or any Lender and any holder of Indebtedness, whether entered into on or prior to the date hereof or from time to time hereafter, together with all modifications, amendments and restatements of any of the foregoing.

 

“Subsidiary” means, as to any particular parent corporation or organization, any other corporation or organization more than 50% of the outstanding Voting Stock of which is at the time directly or indirectly owned by such parent corporation or organization or by any one or more other entities which are themselves subsidiaries of such parent corporation or organization.  Unless the context otherwise requires, the term “Subsidiary” means a Subsidiary of any Borrower and any direct or indirect Subsidiaries of any of the foregoing.

 

“Swap Obligation” means any Rate Management Obligation that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act, as amended from time to time.

 

“Swing Line” means the credit facility for making one or more Swing Loans described in Section 2.11 hereof.

 

“Swing Line Lender” means Fifth Third, in its capacity as lender of Swing Loans hereunder and any successor Swing Line Lender hereunder.

 

“Swing Line Sublimit” means $10,000,000, as reduced pursuant to the terms hereof.

 

“Swing Loan” and “Swing Loans” each is defined in Section 2.11 hereof.

 

“Swing Note” is defined in Section 2.12(d) hereof.

 

“Target” means, collectively, each of (i) Nautic , (ii) NS Transport, and (iii) Navigator.

 

“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

“Term Credit” means the credit facility for the Term Loans described in Section 2.1(a) hereof.

 

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“Term Lender” means, as of any date of determination, a Lender with a Term Loan Commitment.

 

“Term Loan” is defined in Section 2.1 hereof and, as so defined, includes aBase Rate Loan or a Eurodollar Loan as permitted hereunder, each of which is a “type” of Loan hereunder.

 

“Term Loan Commitment” means, as to any Term Lender, the obligation of such Lender to make its Term Loan on the Third Restatement Closing Date, in the principal amount not to exceed the amount set forth opposite such Lender’s name on Schedule 1 attached hereto and made a part hereof, as of such date.  The Term Loan Commitments of the Term Lenders aggregate $115,000,000 as of the Third Restatement Closing Date. After advancing the Term Loan, each reference to a Term Loan Commitment of a Term Lender shall refer to such Term Lender’s Term Loan Percentage.

 

“Term Loan Percentage” means, for each Term Lender, the percentage of the Term Loan Commitments represented by such Term Lender’s Term Loan Commitment or, if the Term Loan Commitments have been terminated or have expired, the percentage held by such Term Lender of the aggregate principal amount of all Term Loans then outstanding.

 

“Term Note” is defined in Section 2.12 hereof.

 

“Third Restatement Closing Date” means October 2, 2017.

 

“Total Consideration” means, with respect to an Acquisition, the total sum (but without duplication) of (a) cash paid (or to be paid as an earn-out) in connection with any Acquisition, plus (b) indebtedness payable to the seller in connection with such Acquisition, plus (c) the fair market value of any Equity Interests, including any warrants or options therefor, delivered in connection with any Acquisition, plus (d) the amount of indebtedness assumed in connection with such Acquisition.

 

“Total Credit Exposure” means, as to any Lender at any time, the Unused Revolving Credit Commitments, Revolving Credit Exposure and outstanding Term Loans of such Lender at such time.

 

“Total Funded Debt” means, at any time the same is to be determined, the aggregate of all Indebtedness of the Credit Parties and their Subsidiaries at such time (other than Floorplan Repurchase Obligations) determined on a consolidated basis in accordance with GAAP.

 

“Total Net Leverage Ratio” means, as of the date of determination thereof, the ratio of (a) Total Funded Debt minus Unrestricted Cash in an aggregate amount not to exceed $15,000,000, to (b) EBITDA for the period of four fiscal quarters then ended.

 

“Trade Announcements” is defined in Section 10.21 hereof.

 

“UCC” is defined in Section 1.2 hereof.

 

“United States” and “U.S.” means United States of America.

 

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“Unliquidated Obligations” means, at any time, any Obligations (or portion thereof) that are contingent in nature or unliquidated, including any Secured Obligation that is: (i) an obligation to reimburse a bank for drawings not yet made under a letter of credit issued by it; (ii) any other obligation (including any guarantee) that is contingent in nature; or (iii) an obligation to provide collateral to secure any of the foregoing types of obligations.

 

“Unrestricted Cash” means all cash and Cash Equivalents of the Credit Parties and their domestic Subsidiaries to the extent that (i) the use of such cash and Cash Equivalents for application to payment of the Obligations is not prohibited by any contractual obligation or requirement of law and (ii) such cash and Cash Equivalents are free and clear of all Liens (other than Liens in favor of the Agent and Permitted Liens ).

 

“Unused Revolving Credit Commitments” means, at any time, the difference between the Revolving Credit Commitments then in effect and the aggregate outstanding principal amount of Revolving Loans and L/C Obligations; provided that Swing Loans outstanding from time to time shall be deemed to reduce the Unused Revolving Credit Commitment of the Agent (but for the avoidance of doubt, no other Lender) for purposes of computing the Commitment Fee under Section 2.13(a) hereof.

 

“U.S. Borrower” means any Borrower that is a U.S. Person.

 

“U.S. Person” means any Person that is a “United States person” as defined in Section 7701(a)(30) of the Code.

 

“U.S. Tax Compliance Certificate” has the meaning assigned to such term in Section 8.5(g)(ii)(B)(iii).

 

“Voting Stock” of any Person means capital stock or other Equity Interests of any class or classes (however designated) having ordinary power for the election of directors or other similar governing body of such Person (including, without limitation, general partners of a partnership), other than stock or other Equity Interests having such power only by reason of the happening of a contingency.

 

“Wholly-Owned Subsidiary” means, at any time, any Subsidiary of which all of the issued and outstanding shares of capital stock (other than directors’ qualifying shares as required by law) or other Equity Interests are owned by any one Person or that Person’s other Wholly-Owned Subsidiaries at such time.

 

“Withholding Agent” means any Credit Party and the Agent.

 

“Write-down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule

 

Section 1.2                                    Interpretation.  The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include,”

 

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“includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein,” “hereof” and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (f) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.  All references to time of day herein are references to Cincinnati, Ohio, time unless otherwise specifically provided.  Where the character or amount of any asset or liability or item of income or expense is required to be determined or any consolidation or other accounting computation is required to be made for the purposes of this Agreement, it shall be done in accordance with GAAP except where such principles are inconsistent with the specific provisions of this Agreement.  All terms that are used in this Agreement without definition and which are defined in the Uniform Commercial Code of the State of Illinois as in effect from time to time (“UCC”) shall have the same meanings herein as such terms are defined in the UCC, unless this Agreement shall otherwise specifically provide.

 

Section 1.3                                    Change in Accounting Principles.  All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP, as in effect from time to time.  If, after the date of this Agreement, there shall occur any change in GAAP from those used in the preparation of the financial statements referred to in Section 5.3 hereof and such change shall result in a change in the method of calculation of any financial covenant, standard or term found in this Agreement, either Borrower Representative, Agent or the Required Lenders may by notice to the Lenders, Agent and Borrower Representative, respectively, require that the Lenders, Agent and Borrower Representative negotiate in good faith to amend such covenants, standards, and term so as equitably to reflect such change in accounting principles, with the desired result being that the criteria for evaluating the financial condition of Credit Parties and their Subsidiaries shall be the same as if such change had not been made.  No delay by Borrower Representative, Agent or the Required Lenders in requiring such negotiation shall limit their right to so require such a negotiation at any time after such a change in accounting principles.  Until any such covenant, standard, or term is amended in accordance with this Section 1.3, financial covenants shall be computed and determined in accordance with GAAP in effect prior to such change in accounting principles.  Without limiting the generality of the foregoing, Credit Parties shall neither be deemed to be in compliance with any financial covenant hereunder nor out of compliance with any financial covenant hereunder if such state of compliance or noncompliance, as the case may be, would not exist but for the occurrence of a change in accounting principles after the date hereof.  Notwithstanding any other provision contained herein, all terms of an accounting or financial nature used herein shall be

 

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construed, and all computations of amounts and ratios referred to herein shall be made, without giving effect to any election under Statement of Financial Accounting Standards 159 (Codification of Accounting Standards 825-10) to value any Indebtedness or other liabilities of any Credit Party or any Subsidiary at “fair value”, as defined therein.  If at any time after the Third Restatement Closing Date, any obligations of the Credit Parties that would not have constituted Indebtedness as of the Third Restatement Closing Date are re-characterized as Indebtedness in accordance with any relevant changes in GAAP, such re-characterized obligations shall not be considered Indebtedness for all purposes hereunder.

 

Section 1.4                                    Financial Covenant Calculations.  The parties hereto acknowledge and agree that, for purposes of all calculations made in determining compliance for any applicable period with the financial covenants set forth in Section 6.7 and for purposes of determining the Applicable Margin, (i) after consummation of any Permitted Acquisition, (A) income statement items and other balance sheet items (whether positive or negative) attributable to the target acquired in such transaction shall be included in such calculations to the extent relating to such applicable period (including by adding any cost saving synergies associated with such Permitted Acquisition in a manner reasonably satisfactory to the Agent), subject to adjustments mutually acceptable to Borrowers and the Agent and (B) Indebtedness of a target which is retired in connection with a Permitted Acquisition shall be excluded from such calculations and deemed to have been retired as of the first day of such applicable period and (ii) after any Disposition permitted by Section 6.8), (A) income statement items, cash flow statement items and balance sheet items (whether positive or negative) attributable to the property or assets disposed of shall be excluded in such calculations to the extent relating to such applicable period, subject to adjustments mutually acceptable to Borrowers and the Agent and (B) Indebtedness that is repaid with the proceeds of such Disposition shall be excluded from such calculations and deemed to have been repaid as of the first day of such applicable period.

 

Section 1.5                                    Outstanding Obligations.  Each of the Credit Parties acknowledges and confirms that as of the Third Restatement Closing Date, Borrowers are indebted to the Lenders without defense, set-off or counter-claim under the Existing Credit Agreement in the principal amount of (i)  $34,159,159.16 in respect of the Term Loan under the Existing Credit Agreement (the “Outstanding Term Loan”), and (ii)  $0.00 the amount of the Revolving Loans, with $750,000.00 of L/C Obligations under the Existing Credit Agreement (the “Outstanding Revolving Loans” and together with the Outstanding Term Loan, the “Outstanding Indebtedness”).  This Agreement amends and restates the Existing Credit Agreement, and the Outstanding Indebtedness shall be deemed to constitute a Loan hereunder.  The execution and delivery of this Agreement and the other Loan Documents, however, does not evidence or represent a refinancing, repayment, accord and/or satisfaction or novation of the Outstanding Indebtedness.  All of Lenders’ obligations to Borrowers with respect to Loans to be made concurrently herewith (including the Outstanding Indebtedness, which is deemed to have been made on the Third Restatement Closing Date) or after the date hereof are set forth in this Agreement.  All Liens and security interests previously granted to Agent, for the benefit of itself and the Lenders, pursuant to the Original Loan Agreement and the Existing Credit Agreement and/or the loan documents entered into in connection therewith, as applicable, are acknowledged and reconfirmed and remain in full force and effect and are not intended to be released, replaced or impaired.

 

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SECTION 2

 

THE CREDIT FACILITIES.

 

Section 2.1                                    Term Loan Commitments.  Each Term Lender severally and not jointly agrees, subject to the terms and conditions hereof, to make a loan (each individually a “Term Loan” and, collectively, the “Term Loans”) in Dollars to Borrowers in the amount of such Lender’s Term Loan Commitment.  The Term Loan shall be advanced in a single Borrowing on the Third Restatement Closing Date, provided that all of the conditions set forth in Section 3.2 (Credit Event — Restatement Closing Date) of this Agreement are satisfied. As provided in Section 2.5(a), and subject to the terms hereof, Borrowers may elect that all or any part of the Term Loan be outstanding as Base Rate Loans or Eurodollar Loans.  No amount of the Term Loan may be reborrowed once it is repaid.

 

Section 2.2                                    Revolving Credit Commitments. Prior to the Revolving Credit Termination Date, each Revolving Lender severally and not jointly agrees, subject to the terms and conditions hereof, to make revolving loans (each individually a “Revolving Loan” and, collectively, the “Revolving Loans”) in Dollars to Borrowers from time to time up to the amount of such Lender’s Revolving Credit Commitment in effect at such time; provided, however, that no such Revolving Loan shall result in (a) such Lender’s Revolving Credit Exposure exceeding such Lender’s Revolving Credit Commitment or (b) the aggregate Revolving Credit Exposures of all Revolving Lenders exceeding the total Revolving Credit Commitments. If at any time the outstanding Revolving Loans exceed (x) the Revolving Loan Availability, or (y) the aggregate Revolving Credit Commitments, the outstanding L/C Obligations and the outstanding Swing Loans, Borrowers shall immediately, and without the necessity of demand by Agent, pay to Agent such amount as may be necessary to eliminate such excess and Agent shall apply such payment as follows (i) to any outstanding Swing Loans until paid in full, (ii) to outstanding Revolving Loans until paid in full, and (iii) to Cash Collateralize outstanding L/C Obligations.  Each Borrowing of Revolving Loans shall be made ratably by the Revolving Lenders in proportion to their respective Applicable Percentages. As provided in Section 2.5(a), and subject to the terms hereof, Borrower Representative may elect that each Borrowing of Revolving Loans be either Base Rate Loans or Eurodollar Loans, provided that Revolving Loans that are Eurodollar Loans shall bear interest based upon a one (1) month Interest Period, floating from month to month, unless otherwise agreed by Agent and Borrower Representative. Revolving Loans may be repaid and re-borrowed before the Revolving Credit Termination Date, subject to the terms and conditions thereof.

 

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Section 2.3                                    Letters of Credit.

 

(a)                                 General Terms.  Subject to the terms and conditions hereof, as part of the Revolving Credit, the L/C Issuer shall issue commercial and standby letters of credit (each a “Letter of Credit”) for the account of Borrowers’ in an aggregate undrawn face amount up to the L/C Sublimit; provided, however, no such Letter of Credit shall result in (a) such Lender’s Revolving Credit Exposure exceeding such Lender’s Revolving Credit Commitment or (b) the aggregate Revolving Credit Exposures of all Lenders exceeding the total Revolving Credit Commitments.  Each Lender shall be obligated to reimburse the L/C Issuer for such Lender’s Applicable Percentage of the amount of each drawing under a Letter of Credit and, accordingly, each Letter of Credit shall constitute usage of the Revolving Credit Commitment of each Lender pro rata in an amount equal to its Applicable Percentage of the L/C Obligations then outstanding.

 

(b)                                 Applications.  At any time before the Revolving Credit Termination Date, the L/C Issuer shall, at the request of Borrower Representative, issue one or more Letters of Credit in Dollars, in form and substance acceptable to the L/C Issuer, with expiration dates no later than the earlier of (i) 12 months from the date of issuance (or which are cancelable not later than 12 months from the date of issuance and each renewal), or (ii) the Revolving Credit Termination Date, in an aggregate face amount as set forth above, upon the receipt of a duly executed application for the relevant Letter of Credit in the form then customarily prescribed by the L/C Issuer for the Letter of Credit requested (each an “Application”), provided that any Letter of Credit may provide by its terms for the automatic renewal thereof for additional 12 month periods, but in no event beyond the Maturity Date unless such Letter of Credit is Cash Collateralized in an amount equal to 103% of the L/C Obligations pursuant to documentation reasonably satisfactory to the Agent in which case such Letter of Credit shall expire no later than the date that is 15 days prior to the first anniversary of the Revolving Credit Termination Date.  If any Letter of Credit when issued would extend beyond the Maturity Date, Borrowers shall deliver to the Agent on the date such Letter of Credit is issued, Cash Collateral in an amount equal to 103% of the L/C Obligations pursuant to documentation reasonably satisfactory to the Agent and any L/C Issuer if not the Agent.  Notwithstanding anything contained in any Application to the contrary:  (x) Borrowers shall pay fees in connection with each Letter of Credit as set forth in Section 2.13(b) hereof, and (y) if the L/C Issuer is not timely reimbursed for the amount of any drawing under a Letter of Credit on the date such drawing is paid, Borrowers’ obligation to reimburse such L/C Issuer for the amount of such drawing shall bear interest (which each Borrower hereby promises to pay) from and after the date such drawing is paid at a rate per annum equal to the sum of 2.0% plus the Applicable Margin plus the Base Rate from time to time in effect (computed on the basis of a year of 365 or 366 days, as the case may be, and the actual number of days elapsed).  Without limiting the foregoing, the L/C Issuer’s obligation to issue, amend or extend the expiration date of a Letter of Credit is subject to the terms or conditions of this Agreement (including the conditions set forth in Section 3.1 and the other terms of this Section 2.3).

 

(c)                                  The Reimbursement Obligations.  Subject to Section 2.3(b) hereof, the obligation of Borrowers to reimburse the L/C Issuer for all drawings under a Letter of Credit (a “Reimbursement Obligation”) shall be governed by the Application related to such Letter of Credit and this Agreement, except that reimbursement shall be made on the date when each drawing is to be paid if Borrower Representative has been informed of such drawing by such L/C

 

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Issuer on or before 11:00 a.m. (Eastern time) on the date when such drawing is to be paid or, if notice of such drawing is given to Borrower Representative after 11:00 a.m. (Eastern time) on the date when such drawing is to be paid, by the next succeeding Business Day, in immediately available funds at the Agent’s principal office in Cincinnati, Ohio or such other office as the Agent may designate in writing to Borrower Representative, and the Agent shall thereafter cause to be distributed to such L/C Issuer such amount(s) in like funds; provided that Borrower Representative shall be deemed to have requested, subject to the conditions to borrowing set forth in this Agreement, that such Reimbursement Obligation be financed with a Base Rate Revolving Loan in an equivalent amount and, to the extent so financed, Borrowers’ obligation to make such payment shall be discharged and replaced by the resulting Base Rate Revolving Loan; provided that Borrower Representative shall be deemed to have requested, subject to the conditions to borrowing set forth in this Agreement, that such Reimbursement Obligation be financed with a Base Rate Revolving Loan in an equivalent amount and, to the extent so financed, Borrowers’ obligation to make such payment shall be discharged and replaced by the resulting Base Rate Revolving Loan.  If Borrowers do not make any such reimbursement payment on the date due and the Participating Lenders fund their participations in the manner set forth in Section 2.3(d) below, then all payments thereafter received by the Agent in discharge of any of the relevant Reimbursement Obligations shall be distributed in accordance with Section 2.3(d)  below.  In addition, for the benefit of the Agent, the L/C Issuer and each Lender, each Borrower agrees that, notwithstanding any provision of any Application, its obligations under this Section 2.3(c) and each Application shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement and the Applications, under all circumstances whatsoever, including without limitation (i) any lack of validity or enforceability of any Loan Document; (ii) any amendment or waiver of or any consent to departure from all or any of the provisions of any Loan Document; (iii) the existence of any claim, set-off, defense or other right any Borrower may have at any time against a beneficiary of a Letter of Credit (or any Person for whom a beneficiary may be acting), the Agent, any  L/C Issuer, any Lender or any other Person, whether in connection with this Agreement, another Loan Document, the transaction related to the Loan Document or any unrelated transaction; (iv) any statement or any other document presented under a Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; (v) payment by the Agent or a L/C Issuer under a Letter of Credit against presentation to the Agent or a L/C Issuer of a draft or certificate that does not comply with the terms of the Letter of Credit, provided that the Agent’s or L/C Issuer’s determination that documents presented under the Letter of Credit comply with the terms thereof did not constitute gross negligence or willful misconduct of the Agent or L/C Issuer; or (vi) any other act or omission to act or delay of any kind by the Agent or a L/C Issuer, any Lender or any other Person or any other event or circumstance whatsoever that might, but for the provisions of this Section 2.3(c), constitute a legal or equitable discharge of any Borrower’s obligations hereunder or under an Application; provided that the foregoing shall not be construed to excuse any  L/C Issuer from liability to any Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by each Credit Party to the extent permitted by applicable law) suffered by any Credit Party that are caused by such L/C Issuer’s failure to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof.  The parties hereto expressly agree that, in the absence of bad faith, gross negligence or willful misconduct on the part of the L/C Issuer

 

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(as determined by a final non-appealable decision of a court of competent jurisdiction), such L/C Issuer shall be deemed to have exercised care in each such determination.  In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the L/C Issuer may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

 

(d)                                 The Participating Interests.  Each Lender (other than the Lender acting as L/C Issuer) severally and not jointly agrees to purchase from the L/C Issuer, and such L/C Issuer hereby agrees to sell to each such Lender (a “Participating Lender”), an undivided participating interest (a “Participating Interest”) to the extent of its Applicable Percentage in each Letter of Credit issued by, and each Reimbursement Obligation owed to, such L/C Issuer.  Upon any Borrower’s failure to pay any Reimbursement Obligation on the date and at the time required, or if any  L/C Issuer is required at any time to return to any Borrower or to a trustee, receiver, liquidator, custodian or other Person any portion of any payment of any Reimbursement Obligation, each Participating Lender shall, not later than the Business Day it receives a certificate in the form of Exhibit A attached hereto from such L/C Issuer (with a copy to the Agent) to such effect, if such certificate is received before 1:00 p.m. (Eastern time), or not later than 1:00 p.m. (Eastern time) the following Business Day, if such certificate is received after such time, pay to the Agent for the account of such L/C Issuer an amount equal to such Participating Lender’s Applicable Percentage of such unpaid Reimbursement Obligation together with interest on such amount accrued from the date such L/C Issuer made the related payment to the date of such payment by such Participating Lender at a rate per annum equal to:  (i) from the date such L/C Issuer made the related payment to the date two (2) Business Days after payment by such Participating Lender is due hereunder, the Federal Funds Rate for each such day and (ii) from the date two (2) Business Days after the date such payment is due from such Participating Lender to the date such payment is made by such Participating Lender, the Base Rate in effect for each such day.  Each such Participating Lender shall, after making its appropriate payment, be entitled to receive its Applicable Percentage of each payment received in respect of the relevant Reimbursement Obligation and of interest paid thereon, with the L/C Issuer retaining its Applicable Percentage thereof as a Lender hereunder.

 

The several obligations of the Participating Lenders to the L/C Issuers under this Section 2.3 shall be absolute, irrevocable and unconditional under any and all circumstances and shall not be subject to any set-off, counterclaim or defense to payment which any Participating Lender may have or has had against any Borrower, any  L/C Issuer, the Agent, any Lender or any other Person.  Without limiting the generality of the foregoing, such obligations shall not be affected by any Default or Event of Default or by any reduction or termination of the Revolving Credit Commitment of any Lender, and each payment by a Participating Lender under this Section 2.3 shall be made without any offset, abatement, withholding or reduction whatsoever.

 

(e)                                  Indemnification.  The Participating Lenders shall, to the extent of their respective Applicable Percentages, indemnify the L/C Issuer (to the extent not reimbursed by any Borrower) against any cost, expense (including reasonable counsel fees and disbursements), claim, demand, action, loss or liability (except such as result from such L/C Issuer’s gross

 

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negligence or willful misconduct as determined by a final non-appealable decision of a court of competent jurisdiction) that such L/C Issuer may suffer or incur in connection with any Letter of Credit issued by it.  The obligations of the Participating Lenders under this Section 2.3(e) and all other parts of this Section 2.3 shall survive termination of this Agreement and of all Applications, Letters of Credit, and all drafts and other documents presented in connection with drawings thereunder.

 

(f)                                   Manner of Requesting a Letter of Credit.  Borrower Representative shall provide at least three (3) Business Days’ advance written notice to the Agent (or such lesser notice as the Agent and the L/C Issuer may agree in their sole discretion) of each request for the issuance of a Letter of Credit, each such notice to be accompanied by a properly completed and executed Application for the requested Letter of Credit and, in the case of an extension or amendment or an increase in the amount of a Letter of Credit, a written request therefor, in a form acceptable to the Agent and the L/C Issuer, in each case, together with the fees called for by this Agreement.  The Agent shall promptly notify the L/C Issuer of the Agent’s receipt of each such notice and such L/C Issuer shall promptly notify the Agent and the Lenders of the issuance of a Letter of Credit.

 

Section 2.4                                    Applicable Interest Rates.

 

(a)                                 Base Rate Loans.  Each Base Rate Loan made or maintained by a Lender shall bear interest (computed on the basis of a year of 365 or 366 days, as the case may be, and the actual days elapsed) on the unpaid principal amount thereof from the date such Loan is advanced or created by conversion from a Eurodollar Loan until maturity (whether by acceleration or otherwise) at a rate per annum equal to the sum of the Applicable Margin plus the Base Rate from time to time in effect, payable in arrears on the last Business Day of each month and at maturity (whether by acceleration or otherwise).

 

(b)                                 Eurodollar Loans.  Each Eurodollar Loan made or maintained by a Lender shall bear interest during each Interest Period it is outstanding (computed on the basis of a year of 360 days and actual days elapsed) on the unpaid principal amount thereof from the date such Loan is advanced, continued or created by conversion from a Base Rate Loan until maturity (whether by acceleration or otherwise) at a rate per annum equal to the sum of the Applicable Margin plus the Adjusted LIBOR applicable for such Interest Period, payable in arrears on the last day of the Interest Period and at maturity (whether by acceleration or otherwise), provided that if the applicable Interest Period is longer than three (3) months, interest shall be payable on that day that is ninety (90)  days after the commencement of such Interest Period.

 

(c)                                  Default Rate.  While any Event of Default exists or after acceleration, Borrowers shall pay interest (after as well as before entry of judgment thereon to the extent permitted by law) on the principal amount of all overdue amounts hereunder at a rate per annum equal to:

 

(i)                                     for any Base Rate Loan (including any Swing Loan), the sum of two percent (2.0%) per annum plus the Applicable Margin plus the Base Rate from time to time in effect; and

 

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(ii)                                  for any Eurodollar Loan, the sum of two percent (2.0%) per annum plus the rate of interest in effect thereon at the time of such default until the end of the Interest Period applicable thereto and, thereafter, at a rate per annum equal to the sum of two percent (2.0%) plus the Applicable Margin for Base Rate Loans plus the Base Rate from time to time in effect;

 

provided, however, that in the absence of acceleration, any increase in interest rates pursuant to this Section shall be made at the election of the Agent, acting at the request or with the consent of the Required Lenders, with written notice to Borrower Representative.  While any Event of Default exists or after acceleration, accrued interest shall be paid on demand of the Agent at the request or with the consent of the Required Lenders.

 

(d)                                 Rate Determinations.  The Agent shall determine each interest rate applicable to the Loans and the Reimbursement Obligations hereunder, and its determination thereof shall be conclusive and binding except in the case of demonstrable error.

 

Section 2.5                                    Manner of Borrowing Loans and Designating Applicable Interest Rates; Funding.

 

(a)                                 Notice to the Agent. Borrower Representative shall give notice to the Agent by no later than 12:00 p.m. (Noon) (Eastern time):  (x) at least three (3) Business Days before the date on which Borrower Representative requests the Lenders to advance a Borrowing of Eurodollar Loans (other than such Borrowing on the Third Restatement Closing Date), and (y) on the date Borrower Representative requests the Lenders to advance a Borrowing of Base Rate Loans.  The Loans included in each Borrowing shall bear interest initially at the type of rate specified in such notice.  Thereafter, with respect to all such Loans, Borrower Representative may from time to time elect to change or continue the type of interest rate borne by each Borrowing or, subject to Section 2.6 hereof, a portion thereof, as follows:  (i) if such Borrowing is of Eurodollar Loans, on the last day of the Interest Period applicable thereto, Borrower Representative may continue part or all of such Borrowing as Eurodollar Loans or convert part or all of such Borrowing into Base Rate Loans or (ii) if such Borrowing is of Base Rate Loans, on any Business Day, Borrower Representative may convert all or part of such Borrowing into Eurodollar Loans for an Interest Period or Interest Periods specified by Borrower Representative.  Borrower Representative shall give all such notices requesting the advance, continuation or conversion of a Borrowing to the Agent by telephone or telecopy (which notice shall be irrevocable once given and, if by telephone, shall be promptly confirmed in writing), substantially in the form attached hereto as Exhibit B (Notice of Borrowing) or Exhibit C (Notice of Continuation/Conversion), as applicable, or in such other form acceptable to the Agent.  Notice of the continuation of a Borrowing of Eurodollar Loans for an additional Interest Period or of the conversion of part or all of a Borrowing of Base Rate Loans into Eurodollar Loans must be given by no later than 1:00 p.m. (Eastern time) at least three (3) Business Days before the date of the requested continuation or conversion.  All notices concerning the advance, continuation or conversion of a Borrowing shall specify the date of the requested advance, continuation or conversion of a Borrowing (which shall be a Business Day), the amount of the requested Borrowing to be advanced, continued or converted, the type of Loans to comprise such new, continued or converted Borrowing and, if such Borrowing is to be comprised of Eurodollar Loans, the Interest Period applicable thereto.  Each Borrower agrees that the Agent may rely on

 

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any such telephonic or telecopy notice given by any Person the Agent in good faith believes is an Authorized Representative of Borrower Representative without the necessity of independent investigation (each Borrower hereby indemnifies the Agent from any liability or loss ensuing from such reliance other than any liability or loss incurred as a result of Agent’s gross negligence or willful misconduct as determined by a final non-appealable decision of a court of competent jurisdiction) and, in the event any such notice by telephone conflicts with any written confirmation, such telephonic notice shall govern if the Agent has acted in reliance thereon.  Notwithstanding anything to the contrary set forth in this Agreement, and Swing Loans shall be Base Rate Loans and may not be converted or continued.

 

(b)                                 Notice to the Lenders.  The Agent shall give prompt telephonic or telecopy notice to each Lender of any notice from Borrower Representative received pursuant to Section 2.5(a) above and, if such notice requests the Lenders to make Eurodollar Loans, the Agent shall give notice to Borrower Representative and each Lender of the interest rate applicable thereto promptly after the Agent has made such determination.

 

(c)                                  Borrower Representative’s Failure to Notify; Automatic Continuations and Conversions.  If Borrower Representative fails to give proper notice of the continuation or conversion of any outstanding Borrowing of Eurodollar Loans before the last day of its then current Interest Period within the period required by Section 2.5(a) or, whether or not such notice has been given, one or more of the conditions set forth in Section 3.1 for the continuation or conversion of a Borrowing of Eurodollar Loans would not be satisfied, and such Borrowing is not prepaid in accordance with Section 2.8(a), such Borrowing shall automatically be converted into a Borrowing of Base Rate.  In the event Borrower Representative fails to give notice pursuant to Section 2.5(a) of a Borrowing equal to the amount of a Reimbursement Obligation and has not notified the Agent by 1:00 p.m. (Eastern time) on the day such Reimbursement Obligation becomes due that it intends to repay such Reimbursement Obligation through funds not borrowed under this Agreement, Borrower Representative shall be deemed to have requested a Borrowing of Base Rate Loans (or, at the option of the Agent, under the Swing Line) under the Revolving Credit on such day in the amount of the Reimbursement Obligation then due, which Borrowing shall be applied to pay the Reimbursement Obligation then due.

 

(d)                                 Disbursement of Loans.  Not later than 3:00 p.m. (Eastern time) on the date of any requested advance of a new Borrowing, subject to Section 3 hereof, each Lender shall make available its Loan comprising part of such Borrowing in funds immediately available at the principal office of the Agent in Cincinnati, Ohio.  The Agent shall make the proceeds of each new Borrowing available to Borrower Representative by deposit into a non-interest bearing, disbursement funding account maintained at the Agent (the “Funding Account”); provided that Base Rate Revolving Loans made to finance the reimbursement of a Reimbursement Obligation shall be remitted by the Agent to the L/C Issuer.

 

(e)                                  Funding by Lenders; Presumption by Agent.  Unless the Agent shall have received notice from a Lender (x) in the case of Base Rate Loans, four (4) hours prior to the proposed time of such Borrowing and (y) otherwise, prior to the proposed date of any Borrowing that such Lender will not make available to the Agent such Lender’s share of such Borrowing, the Agent may assume that such Lender has made such share available on such date in accordance with Section 2.5 and may, in reliance upon such assumption, make available to

 

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Borrowers a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Agent, then the applicable Lender and Borrowers severally agree to pay to the Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to Borrowers to but excluding the date of payment to the Agent, at (i) in the case of a payment to be made by such Lender, the greater of the Federal Funds Rate and a rate determined by the Agent in accordance with banking industry rules on interbank compensation, and (ii) in the case of a payment to be made by Borrowers, the interest rate applicable to Base Rate Loans.  If Borrowers and such Lender shall pay such interest to the Agent for the same or an overlapping period, the Agent shall promptly remit to Borrower Representative the amount of such interest paid by Borrowers for such period.  If such Lender pays its share of the applicable Borrowing to the Agent, then the amount so paid shall constitute such Lender’s Loan included in such Borrowing.  Any payment by Borrowers shall be without prejudice to any claim Borrowers may have against a Lender that shall have failed to make such payment to the Agent.

 

(f)            For the purposes of calculating interest and fees, determining Revolving Loan Availability and the amount of Eligible Accounts, all Remittances and other proceeds of Accounts and other Collateral deposited into any collection account shall be credited (conditional on final collection) against the Obligations as set forth in Section 2.15 hereof and the then Eligible Accounts as funds become collected and available in accordance with Agent’s designated funds availability policies from time to time in effect.  For the avoidance of doubt, on the Third Restatement Closing Date, the Agent’s designated funds availability policy is as follows:  the Agent shall, (i) within two (2) Business Days after receipt by the Agent at its identified collection office of checks, (ii) within one (1) Business Day of receipt by the Agent at its identified collection office of cash by ACH or other immediately available funds, and (iii) within the same Business Day upon receipt by the Agent at its identified collection office of cash by wire transfer, apply the whole or any part of such collections or Proceeds against the Revolving Loans and Swing Loans and other Obligations in accordance with the terms and conditions of this Agreement.

 

Section 2.6            Minimum Borrowing Amounts; Maximum Eurodollar Loans.  Each Borrowing of Base Rate Loans advanced under a Credit shall be in an amount not less than $500,000 (other than Swing Loans) or such greater amount that is an integral multiple of $50,000.  Each Borrowing of Eurodollar Loans advanced, continued or converted under a Credit shall be in an amount equal to $1,000,000 or such greater amount that is an integral multiple of $100,000.  Without the Agent’s consent, there shall not be more than six (6) Borrowings of Eurodollar Loans outstanding at any one time.

 

Section 2.7            Maturity of Loans.

 

(a)           Scheduled Payments of Term Loans.  Borrowers shall make principal payments on the Term Loans in consecutive quarterly installments on the last Business Day of each March, June, September, and December in each year, in the amounts set forth below for each corresponding quarter; it being further agreed that a final payment comprised of all principal and interest not sooner paid on the Term Loans, shall be due and payable on the Maturity Date.  Each principal payment on the Term Loans shall be applied to the Term Lenders holding the Term Loans pro rata based upon their Term Loan Percentages.

 

45

 

	
Term Loan
    	
 
    
	
Quarter End Date/
   Payment Date
    	
 
    	
Principal Installment
   Amount
    	
 
    	
Principal Installment
   Percentage
    	
 
    
	
12/31/2017
    	
 
    	
$
    	
1,437,500.00
    	
 
    	
1.25
    	
%
    
	
03/31/2018
    	
 
    	
$
    	
1,437,500.00
    	
 
    	
1.25
    	
%
    
	
06/30/2018
    	
 
    	
$
    	
1,437,500.00
    	
 
    	
1.25
    	
%
    
	
09/30/2018
    	
 
    	
$
    	
1,437,500.00
    	
 
    	
1.25
    	
%
    
	
12/31/2018
    	
 
    	
$
    	
2,156,250.00
    	
 
    	
1.88
    	
%
    
	
03/31/2019
    	
 
    	
$
    	
2,156,250.00
    	
 
    	
1.88
    	
%
    
	
06/30/2019
    	
 
    	
$
    	
2,156,250.00
    	
 
    	
1.88
    	
%
    
	
09/30/2019
    	
 
    	
$
    	
2,156,250.00
    	
 
    	
1.88
    	
%
    
	
12/31/2019
    	
 
    	
$
    	
2,156,250.00
    	
 
    	
1.88
    	
%
    
	
03/31/2020
    	
 
    	
$
    	
2,156,250.00
    	
 
    	
1.88
    	
%
    
	
06/30/2020
    	
 
    	
$
    	
2,156,250.00
    	
 
    	
1.88
    	
%
    
	
09/30/2020
    	
 
    	
$
    	
2,156,250.00
    	
 
    	
1.88
    	
%
    
	
12/31/2020
    	
 
    	
$
    	
2,875,000.00
    	
 
    	
2.50
    	
%
    
	
03/31/2021
    	
 
    	
$
    	
2,875,000.00
    	
 
    	
2.50
    	
%
    
	
06/30/2021
    	
 
    	
$
    	
2,875,000.00
    	
 
    	
2.50
    	
%
    
	
09/30/2021
    	
 
    	
$
    	
2,875,000.00
    	
 
    	
2.50
    	
%
    
	
12/31/2021
    	
 
    	
$
    	
2,875,000.00
    	
 
    	
2.50
    	
%
    
	
03/31/2022
    	
 
    	
$
    	
2,875,000.00
    	
 
    	
2.50
    	
%
    
	
06/30/2022
    	
 
    	
$
    	
2,875,000.00
    	
 
    	
2.50
    	
%
    
	
09/30/2022
    	
 
    	
$
    	
2,875,000.00
    	
 
    	
2.50
    	
%
    
	
Maturity Date
    	
 
    	
the   then outstanding principal balance
    	
 
    	
 
    	
 
    

 

(b)           Revolving Loans.  Each Revolving Loan, both for principal and interest, shall mature and become due and payable by Borrowers on the Revolving Credit Termination Date.

 

Section 2.8            Prepayments.

 

(a)           Voluntary.  Borrowers may prepay without premium or penalty (except as set forth in Section 8.1 below) and in whole or in part any Borrowing of Eurodollar Loans at any time upon three (3) Business Days’ prior notice by Borrower Representative to the Agent or, in the case of a Borrowing of Base Rate Loans, notice delivered by Borrower Representative to the Agent no later than 10:00 a.m. (Eastern time) on the date of prepayment, such prepayment to be made by the payment of the principal amount to be prepaid and, in the case of any Term Loans or Eurodollar Loans accrued interest thereon to the date fixed for prepayment plus any amounts due the Lenders under Section 8.1; provided, however, Borrowers may not partially repay a Borrowing (i) if such Borrowing is of Base Rate Loans (other than Swing Loans), in a principal amount less than $500,000, (ii) if such Borrowing is of Eurodollar Loans, in a principal amount less than $1,000,000, and (iii) in each case, unless such Borrowing is in an amount such that the minimum amount required for a Borrowing pursuant to Section 2.6 remains outstanding.  Any such voluntary prepayments of the Term Loan shall be applied against the remaining

 

46

 

installments of principal of the Term Loan on a pro rata basis until the Term Loan is repaid in full.

 

(b)           Mandatory.

 

(i)            If any Credit Party or any Subsidiary shall at any time or from time to time make or agree to make a Disposition or shall suffer an Event of Loss resulting in Net Cash Proceeds in excess of $250,000 individually or on a cumulative basis in any fiscal year of Credit Parties, then (x) Borrower Representative shall promptly notify the Agent of such proposed Disposition or Event of Loss (including the amount of the estimated Net Cash Proceeds to be received by such Credit Party or such Subsidiary in respect thereof) and (y) promptly (and in any event within five (5) Business Days) upon receipt by any Credit Party or the Subsidiary of the Net Cash Proceeds of such Disposition or such Event of Loss, Borrowers shall prepay the Obligations in an aggregate amount equal to 100% of the amount of all such Net Cash Proceeds in excess of $250,000; provided that in the case of each Disposition and Event of Loss, if Borrower Representative states in its notice of such event that the applicable Credit Party or Subsidiary intends to invest or reinvest, as applicable, within one hundred eighty (180) days of the applicable Disposition or receipt of Net Cash Proceeds from an Event of Loss, the Net Cash Proceeds thereof in similar like-kind assets, then so long as no Default or Event of Default then exists, Borrowers shall not be required to make a mandatory prepayment under this Section in respect of such Net Cash Proceeds to the extent such Net Cash Proceeds are either (x) actually invested or reinvested or (y) committed to be invested or reinvested, in each case as described in Borrower Representative’s notice with such 180-day period.  Promptly after the end of such 180-day period, Borrower Representative shall notify the Agent whether such Credit Party or such Subsidiary has invested or reinvested such Net Cash Proceeds as described in Borrower Representative’s notice, and to the extent such Net Cash Proceeds have not been so invested or reinvested, Borrowers shall promptly prepay the Obligations in the amount of such Net Cash Proceeds not so invested or reinvested.  The amount of each such prepayment shall be applied first to the outstanding Term Loans until paid in full (applied on a pro rata basis over the remaining principal amortization payments thereof), and, then to (in the order determined by Agent but without a reduction in Revolving Credit Commitments) the Revolving Loans, Swing Loans, Reimbursement Obligations.

 

(ii)           If after the Third Restatement Closing Date any Credit Party or any Subsidiary shall issue any new equity securities (other than (a) equity securities issued in connection with the exercise of employee stock options, (b) equity securities issued in connection with the exercise of the Cure Right, (c) equity securities issued by a Subsidiary to another Credit Party, (d) equity securities sold to management and/or any employees of any Credit Party or any Subsidiary or (e) equity securities issued in connection with any capital contributions by Holdings or incur or assume any Indebtedness (other than that permitted by Section 6.11 hereof), then in each such case Borrower Representative shall promptly notify the Agent of the estimated Net Cash Proceeds of such issuance, incurrence or assumption to be received by or for the account of such Credit Party or such Subsidiary in respect thereof.  Promptly (and in any event within five (5) Business Days) upon receipt by such Credit Party or such Subsidiary of

 

47

 

Net Cash Proceeds of such issuance, incurrence or assumption Borrowers shall prepay the Obligations in the amount of such Net Cash Proceeds.  The amount of each such prepayment shall be applied first to the outstanding Term Loans until paid in full (applied on a pro rata basis over the remaining principal amortization payments thereof), and, then to (in the order determined by Agent but without a reduction in Revolving Credit Commitments) the Revolving Loans, Swing Loans and  Reimbursement Obligations.  Each Credit Party acknowledges that its performance hereunder shall not limit the rights and remedies of the Lenders for any breach of Section 6.11 or any other terms of this Agreement.

 

(iii)          No later than five (5) Business Days after the earlier of (a) receipt by Agent of the audited financial statements required by Section 6.1(c) hereof and (b) the due date of the delivery of the audited financial statements required by Section 6.1(c) hereof, beginning with the fiscal year ending June 30, 2018 (for the nine (9) month period then ending), Borrowers shall prepay the then-outstanding Loans by an amount equal to 50% of Excess Cash Flow of Credit Parties and their Subsidiaries for the most recently completed fiscal year of Credit Parties; provided, however, that if the Total Net Leverage Ratio (determined as of the last day of any applicable fiscal year by reference to the financial statements delivered pursuant to Section 6.1(c) for such fiscal year) is less than 1.50:1.00, Borrowers shall not be required to make a prepayment of Excess Cash Flow for such fiscal year.  The amount of each such prepayment shall be applied first to the outstanding Term Loan until paid in full (applied on a pro rata basis over the remaining principal amortization payments thereof) and then to the Revolving Loans until paid in full, and, then to (in the order determined by Agent but without a reduction in Revolving Credit Commitments) any Swing Loans, Reimbursement Obligations, without any reduction in commitments.  Any voluntary prepayments of principal of the Term Loans and, solely to the extent accompanied by a permanent reduction on commitments, the Revolving Loans, made during any year shall reduce, by the amount of such voluntary prepayments, the amount required to be paid by Borrowers under this Section 2.8(b)(iii) during the year immediately subsequent to the year such voluntary prepayments were made; provided that, the amount required to be paid under this Section 2.8(b)(iii) shall not in any event be reduced to less than zero, and no such voluntary prepayments shall reduce payments required to be made under this Section 2.8(b)(iii) in any year following the year immediately subsequent to the year such voluntary payments were made.

 

(iv)          Borrowers shall, (A) on each date the Revolving Credit Commitments are reduced pursuant to Section 2.10, prepay the Revolving Loans, Swing Loans, Reimbursement Obligations and, if necessary, Cash Collateralize the L/C Obligations by the amount, if any, necessary to reduce the amount of the aggregate Revolving Credit Exposures of all Lenders then outstanding to the amount of the Revolving Credit Commitments or the amounts to which the Revolving Credit Commitments have been so reduced and (B) on each date the aggregate amount of Revolving Credit Exposures of all Lenders then outstanding exceeds the total Revolving Credit Commitments, prepay the Revolving Loans, Swing Loans, Reimbursement Obligations and, if necessary, Cash Collateralize the L/C Obligations, in an amount equal to such excess.

 

48

 

(v)           Unless Borrower Representative otherwise directs, prepayments of Loans under this Section 2.8(b) shall be applied first to Borrowings of Base Rate Loans until payment in full thereof with any balance applied to Borrowings of Eurodollar Loans in the order in which their Interest Periods expire.  Each prepayment of Loans under this Section 2.8(b) shall be made by the payment of the principal amount to be prepaid and, in the case of any Term Loans, Swing Loans or Eurodollar Loans, accrued interest thereon to the date of prepayment together with any amounts due the Lenders under Section 8.1.  Each prefunding of L/C Obligations shall be made in accordance with Section 7.4.

 

(c)           Notice of Prepayment.  The Agent will promptly advise each Lender of any notice of prepayment it receives from Borrower Representative, and in the case of any partial prepayment, such prepayment shall be applied to the remaining amortization payments on the relevant Loans in accordance with this Section 2.8.

 

Section 2.9            Place and Application of Payments.  All payments of principal of and interest on the Loans and the Reimbursement Obligations, and of all other Obligations payable by Borrowers under this Agreement and the other Loan Documents, shall be made by Borrowers to the Agent by no later than 2:00 p.m. (Eastern time) on the due date thereof at the office of the Agent in Cincinnati, Ohio (or such other location as the Agent may designate to Borrower Representative) for the benefit of the Lender or Lenders entitled thereto.  Any payments received after such time shall be deemed to have been received by the Agent on the next Business Day.  All such payments shall be made in Dollars, in immediately available funds at the place of payment, in each case without set-off or counterclaim.  The Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal or interest on Loans and on Reimbursement Obligations in which the Lenders have purchased Participating Interests ratably to the Lenders and like funds relating to the payment of any other amount payable to any Lender to such Lender, in each case to be applied in accordance with the terms of this Agreement.  Unless the Agent shall have received notice from Borrower Representative prior to the date on which any payment is due to the Agent for the account of the Lenders or the L/C Issuers hereunder that Borrowers will not make such payment, the Agent may assume that Borrowers have made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the L/C Issuers, as the case may be, the amount due.  In such event, if Borrowers have not in fact made such payment, then each of the Lenders or the L/C Issuers, as the case may be, severally agrees to repay to the Agent forthwith on demand the amount so distributed to such Lender or L/C Issuer, with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Agent, at the greater of the Federal Funds Rate and a rate determined by the Agent in accordance with banking industry rules on interbank compensation.

 

Anything contained herein to the contrary notwithstanding, (x) pursuant to the exercise of remedies under Sections 7.2 and 7.3 hereof or (y) after written instruction by the Required Lenders after the occurrence and during the continuation of an Event of Default, all payments and collections received in respect of the Obligations and all proceeds of the Collateral received, in each instance, by the Agent or any of the Lenders shall be remitted to the Agent and distributed as follows:

 

49

 

(a)           first, to the payment of any outstanding costs and expenses incurred by the Agent, and any security trustee therefor, in monitoring, verifying, protecting, preserving or enforcing the Liens on the Collateral, in protecting, preserving or enforcing rights under the Loan Documents, and in any event all costs and expenses of a character which Credit Parties have agreed to pay the Agent under Section 10.13 hereof (such funds to be retained by the Agent for its own account unless it has previously been reimbursed for such costs and expenses by the Lenders, in which event such amounts shall be remitted to the Lenders to reimburse them for payments theretofore made to the Agent);

 

(b)           second, to the payment of principal and interest on the Swing Loans until paid in full;

 

(c)           third, to payment of reimbursable costs and expenses of the Lenders (other than Agent);

 

(d)           fourth, to the payment of any outstanding interest and fees due under the Loan Documents to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof;

 

(e)           fifth, to the payment of principal on the Loans (other than Swing Loans), unpaid Reimbursement Obligations, together with amounts to be held by the Agent as collateral security for any outstanding L/C Obligations pursuant to Section 7.4 hereof (until the Agent is holding an amount of cash equal to the then outstanding amount of all such L/C Obligations), and Rate Management Obligations, the aggregate amount paid to, or held as collateral security for, the Lenders and, in the case of Rate Management Obligations, their Affiliates to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof;

 

(f)            sixth to the payment of Banking Services Obligations and Rate Management Obligations;

 

(g)           seventh, to the payment of all other unpaid Obligations and all other indebtedness, obligations, and liabilities of Credit Parties and their Subsidiaries secured by the Collateral Documents to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof; and

 

(h)           eighth, to Borrowers or whoever else may be lawfully entitled thereto;  provided that in respect of the foregoing, no payments by a Guarantor and no proceeds of Collateral of a Guarantor shall be applied to any Excluded Swap Obligation of such Guarantor.

 

Excluded Swap Obligations with respect to any Guarantor shall not be paid with amounts received from such Guarantor or such Guarantor’s assets, but appropriate adjustments shall be made with respect to payments from other Credit Parties to preserve the allocation to Obligations otherwise set forth above in this Section.

 

Notwithstanding the foregoing, Rate Management Obligations and Banking Services Obligations shall be excluded from the application described above if the Agent has not received written notice that describes in detail the Rate Management Obligations and Banking Services Obligations to be secured by the Collateral, together with such supporting documentation as the

 

50

 

Agent may request, from the applicable Lender (other than Fifth Third).  Any such Person not a party to this Agreement that has given the notice contemplated by the preceding sentence shall, by such notice, be deemed to have acknowledged and accepted the appointment of the Agent pursuant to the terms of Section 9 for itself and its Affiliates as if a “Lender” party hereto.

 

No Rate Management Agreement or agreement in respect of Banking Services Obligations will create (or be deemed to create) in favor of any Person that is a party thereto any rights in connection with the management or release of any Collateral or of the obligations of any Borrower or any other Credit Party under the Loan Documents, except as expressly provided herein or in the other Loan Documents.  By accepting the benefits of the Collateral, each such Person shall be deemed to have appointed the Agent as its agent and agreed to be bound by the Loan Documents as a holder of the Obligations, subject to the limitations set forth in this Section 2.9.  Furthermore, it is understood and agreed that each such Person, in their capacity as such, shall not have any right to notice of any action or to consent to, direct or object to any action hereunder or under any of the other Loan Documents or otherwise in respect of the Collateral (including the release or impairment of any Collateral, or to any notice of or consent to any amendment, waiver or modification of the provisions hereof or of the other Loan Documents) other than in its capacity as a Lender and, in any case, only as expressly provided herein.

 

Section 2.10          Commitment Terminations.  Borrower Representative shall have the right at any time and from time to time, upon three (3) Business Days’ prior written notice to the Agent, to terminate the Revolving Credit Commitments in whole or in part, any partial termination to be (i) in an amount not less than $500,000 or any greater amount that is an integral multiple of $100,000 and (ii) allocated ratably among the Lenders in proportion to their respective Applicable Percentages, provided that the Revolving Credit Commitments may not be reduced to an amount less than the amount of the aggregate Revolving Credit Exposures of all Lenders then outstanding.  Any termination of the Revolving Credit Commitments below the L/C Sublimit then in effect shall reduce the L/C Sublimit by a like amount.  Any termination of the Revolving Credit Commitments below the Swing Line Sublimit then in effect shall reduce the Swing Line Sublimit by a like amount.  The Agent shall give prompt notice to each Lender of any such termination of the Revolving Credit Commitments.  Any termination of the Commitments pursuant to this Section 2.10 may not be reinstated.

 

Section 2.11          Swing Loans.

 

(a)           Generally.  The Agent and the Lenders agree that in order to facilitate the administration of this Agreement and the other Loan Documents, promptly after Borrower Representative requests a Base Rate Revolving Loan, the Agent and the applicable Swing Line Lender may elect to have the terms of this Section 2.11(a) apply to such Borrowing request by such Swing Line Lender advancing, on behalf of the Lenders and in the amount requested, same day funds (each such Loan made solely by a Swing Line Lender pursuant to this Section 2.11(a) is referred to in this Agreement as a “Swing Loan”) to Borrowers on the applicable Borrowing date to the Funding Account, with settlement among the Lenders as to the Swing Loans to take place on a periodic basis as set forth in Section 2.11(d).  Each Swing Loan shall be subject to all the terms and conditions applicable to other Base Rate Loans funded by the Lenders, except that all payments thereon shall be payable to a Swing Line Lender solely for its own account.  In

 

51

 

addition, each Borrower hereby authorizes Agent in its capacity as a Swing Line Lender to, and such Swing Line Lender shall, subject to the terms and conditions set forth herein (but without any further written notice required), not later than 1:00 p.m. (Eastern time), on each Business Day, make available to Borrowers by means of a credit to the Funding Account, the proceeds of a Swing Loan to the extent necessary to pay items to be drawn on the Controlled Disbursement Account that Business Day; provided that, if on any Business Day there is insufficient borrowing capacity to permit such Swing Line Lender to make available to Borrowers a Swing Loan in the amount necessary to pay all items to be so drawn on any the Controlled Disbursement Account on such Business Day, then Borrowers shall be deemed to have requested a Base Rate Revolving Loan pursuant to Section 2.2 in the amount of such deficiency to be made on such Business Day.  The aggregate amount of Swing Loans outstanding at any time shall not exceed the Swing Line Sublimit.  No Swing Line Lender shall make any Swing Loan if the requested Swing Loan exceeds Revolving Loan Availability (before giving effect to such Swing Loan).  All Swing Loans shall be Base Rate Borrowings.

 

(b)           [Reserved].

 

(c)           Participation.  Upon the making of a Swing Loan (whether before or after the occurrence of an Event of Default and regardless of whether a Settlement has been requested with respect to such Swing Loan), each Lender shall be deemed, without further action by any party hereto, to have unconditionally and irrevocably purchased from each Swing Line Lender, without recourse or warranty, an undivided interest and participation in such Swing Loan in proportion to its Applicable Percentage of the Revolving Credit Commitment.    Each Swing Line Lender may, at any time, require the Lenders to fund their participations.  From and after the date, if any, on which any Lender is required to fund its participation in any Swing Loan purchased hereunder, such Swing Line Lender shall promptly distribute to such Lender, such Lender’s Applicable Percentage of all payments of principal and interest and all proceeds of Collateral received by such Swing Line Lender in respect of such Swing Loan.

 

(d)           Settlement.  Each Swing Line Lender shall request settlement (a “Settlement”) with the Lenders on at least a weekly basis or on any date that such Swing Line Lender elects, by notifying the Lenders of such requested Settlement by facsimile, telephone, or e-mail no later than 12:00 noon Eastern time on the date of such requested Settlement (the “Settlement Date”).  Each Lender (other than a Swing Line Lender with respect to its Swing Loans) shall transfer the amount of such Lender’s Applicable Percentage of the outstanding principal amount of the applicable Loan with respect to which Settlement is requested to such Swing Line Lender, to such account of such Swing Line Lender as such Swing Line Lender may designate, not later than 2:00 p.m., Eastern time, on such Settlement Date.  Settlements may occur during the existence of an Event of Default and whether or not the applicable conditions precedent set forth in Section 3.1 have then been satisfied.  Such amounts transferred to such Swing Line Lender shall be applied against the amounts of such Swing Line Lender’s Swing Loans and, together with each Swing Line Lender’s Applicable Percentage of such Swing Loan, shall constitute Revolving Loans of such Lenders, respectively.  If any such amount is not transferred to such Swing Line Lender by any Lender on such Settlement Date, such Swing Line Lender shall be entitled to recover from such Lender on demand such amount, together with interest thereon, as specified in Section 2.5.

 

52

 

Section 2.12          Evidence of Indebtedness.

 

(a)           Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of Borrowers to such Lender resulting from each Loan made by such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.

 

(b)           The Agent shall also maintain accounts in which it will record (i) the amount of each Loan made hereunder, the type thereof and, with respect to Eurodollar Loans, the Interest Period with respect thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from Borrowers to each Lender hereunder and (iii) the amount of any sum received by the Agent hereunder from Borrowers and each Lender’s share thereof.

 

(c)           The entries maintained in the accounts maintained pursuant to paragraphs (a) and (b) above shall be prima facie evidence of the existence and amounts of the Obligations therein recorded; provided, however, that the failure of the Agent or any Lender to maintain such accounts or any error therein shall not in any manner affect the obligation of any Borrower to repay the Obligations in accordance with their terms.

 

(d)           The Borrowers covenant and agree, jointly and severally, to pay the Loans and other Obligations in accordance with this Agreement. The obligation of each Borrower to pay to each Lender the Loans and other Obligations hereunder shall be evidenced by this Agreement. However, upon request of any Lender, Borrowers shall prepare, execute and deliver to such Lender a Note payable to the order of such Lender in the amount of the Term Loan, or Revolving Credit Commitment, or Swing Line Sublimit, as applicable. Such Notes shall be in the forms of Exhibit D-1 (in the case of its Term Loan and referred to herein as a “Term Note”), , D-2 (in the case of its Revolving Loans and referred to herein as a “Revolving Note”), or D-3 (in the case of its Swing Loans and referred to herein as a “Swing Note”), as applicable (the Term Notes, Revolving Notes and Swing Note being hereinafter referred to collectively as the “Notes” and individually as a “Note”). The Loans evidenced by such Note or Notes and interest thereon shall at all times (including after any assignment pursuant to Section 10.8) be represented by such Notes payable to the payee named therein or any assignee pursuant to Section 10.8, except to the extent that any such Lender or assignee subsequently returns any such Note for cancellation and requests that such Loans once again be evidenced as described in subsections (a) and (b) above.

 

Section 2.13          Fees.

 

(a)           Revolving Credit Commitment Fee.  Borrowers shall pay to the Agent for the ratable account of the Lenders according to their Applicable Percentages a commitment fee (“Commitment Fee”) at the rate per annum equal to the Applicable Margin (computed on the basis of a year of 360 days and the actual number of days elapsed) on the average daily Unused Revolving Credit Commitments.  Such Commitment Fee shall be payable monthly in arrears on the last Business Day of each calendar month and on the Revolving Credit Termination Date, unless the Revolving Credit Commitments are terminated in whole on an earlier date, in which event the Commitment Fee for the period to the date of such termination in whole shall be paid on the date of such termination.

 

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(b)           Letter of Credit Fees.  On the date of issuance or extension, or increase in the amount, of any Letter of Credit issued by a L/C Issuer pursuant to Section 2.3 hereof, Borrowers shall pay to such L/C Issuer for its own account a fronting fee equal to 0.125% of the face amount of (or of the increase in the face amount of) such Letter of Credit.  Quarterly in arrears, Borrowers shall pay to the Agent, for the ratable benefit of the Lenders according to their Applicable Percentages, a letter of credit fee (“L/C Fee”) at a rate per annum equal to the then applicable Applicable Margin for Eurodollar Loans (computed on the basis of a year of 360 days and the actual number of days elapsed) in effect on such date applied to the daily average face amount of Letters of Credit outstanding on such date; provided that, while any Event of Default exists or after acceleration, such rate shall increase by 2% over the rate otherwise payable and such fee shall be paid on demand of the Agent at the request or with the consent of the Required Lenders; provided, however, that in the absence of acceleration, any rate increase pursuant to the foregoing proviso shall be made at the direction of the Agent, acting at the request or with the consent of the Required Lenders.

 

(c)           Fee Letter.  The Credit Parties agree to pay to Fifth Third the fees as set forth in the fee letter agreement with Fifth Third dated as of the Third Restatement Closing Date (“Fifth Third Fee Letter”).

 

Section 2.14          Account Debit.  Each Borrower hereby irrevocably authorizes the Agent to charge any of such Borrower’s deposit accounts maintained with the Agent for the amounts from time to time necessary to pay any then due Obligations; provided that such Borrower acknowledges and agrees that the Agent shall not be under an obligation to do so and the Agent shall not incur any liability to any Borrower or any other Person for the Agent’s failure to do so.

 

Section 2.15          Collections; Controlled Disbursement Accounts.

 

(a)           Collections.  To the extent not previously completed, within forty-five (45) days after the Third Restatement Closing Date, each of Nautic, NS Transport and Navigator (and any other Borrower that has not done so in connection with the Existing Credit Agreement) will notify all of its customers and Account Debtors, which pay their Accounts by electronic funds transfer, to forward all Remittances directly to a collection, non-interest bearing DDA depository account maintained at Agent (“Collection Account”) by wire transfer or automated clearinghouse funds transfer (“ACH”) (such notices to be in such form and substance as Agent may require in its reasonable discretion from time to time).  For all of any Borrower’s customers and account debtors that forward their Remittances in paper form to such Borrower, such Borrower, to the extent not previously completed, within forty-five (45) days after the Third Restatement Closing Date, will utilize the Agent’s electronic deposit and cash management system (i.e., remote capture) to deposit such Remittances directly into the Collection Account.  If any Borrower should neglect or refuse to notify any customer or Account Debtor to pay any Remittance to the Collection Account in the case of electronic payments, the Agent will be entitled to make such notification.  Any Remittance or other Proceeds of Accounts or other Collateral received by any Borrower shall be deemed held by such Borrower in trust for the Agent, and such Borrower immediately shall utilize the remote capture system as provided above or deliver the same, in its original form, to the Agent by overnight delivery for deposit into the Collection Account.  Pending such deposit whether via remote capture or overnight delivery, no Borrower will commingle any such Remittance or other Proceeds of Accounts or other Collateral

 

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with any of its other funds or property, but such Borrower will hold it separate and apart therefrom in trust for the Agent until delivery is made to the Agent as described above.  All deposits to the Collection Account will be the Agent’s property to be applied against the Obligations as provided in this Section 2.15, except to the extent a different application is required pursuant to the provisions of Section 2.9.  The Agent shall have sole access to the Collection Account.  Each Business Day, the Agent, in accordance with the Agent’s policies and procedures, will transfer all collected and available funds in the Collection Account pursuant to the Agent’s automated sweep program, automatically and without notice, request or demand by any Borrower for application against the unpaid principal balance of (in the order determined by Agent) the Revolving Loans, Swing Loans and Reimbursement Obligations.  If, after such application by the Agent, there remains excess available funds in the Collection Account and an Event of Default is not then existing, then the Agent will deposit such excess funds into the Funding Account.  Pursuant to such automatic sweep program of the Agent, the Agent will make Swing Loans or Revolving Loans as described in Section 2.11 to cover presentments to the controlled disbursement account(s) maintained by Borrowers with Agent (the “Controlled Disbursement Account”).  Until a payment is received by the Agent for the Agent’s account in finally collected funds, all risks associated with such payment will be borne solely by Borrowers.  If any Remittance deposited in the Collection Account is dishonored or returned unpaid for any reason, the Agent, in its discretion, may charge the amount of such dishonored or returned Remittance directly against any Borrower and any account maintained by any Borrower with the Agent and such amount shall be deemed part of the Obligations.   For the purposes of calculating interest and fees, determining Revolving Loan Availability and the amount of Eligible Accounts, all Remittances and other Proceeds of Accounts and other Collateral deposited into the Collection Account shall be credited (conditional on final collection) against the Obligations as set forth in this Section 2.15 and the then Eligible Accounts as funds become collected and available in accordance with Agent’s designated funds availability policies from time to time in effect, and as described in Section 2.5(f) hereof as of the Third Restatement Closing Date.

 

(b)           Cash Management Charges.  Agent’s standard service charges and costs related to the establishment and maintenance of the Funding Account, the Controlled Disbursement Account, the Collection Account, the automatic sweep program, and the Agent’s treasury and cash management services shall be the sole responsibility of Borrowers, whether the same are incurred by the Agent or any Borrower, and the Agent, at its discretion, exercised in good faith, may charge the same against any Borrower and any account maintained by any Borrower with the Agent and the same shall be deemed part of the Obligations, subject to the provisions of Section 2.9 hereof.  Without limitation of the provisions of the Security Agreement, and without limitation to the provisions below relating to the ownership of the Collection Account and the deposits and funds therein, the Agent shall have, and each Borrower hereby grants to the Agent, for the benefit of itself and the Lenders, a Lien on all funds held in the Funding Account, the Controlled Disbursement Account, and the Collection Account as security for the Obligations.  The Funding Account, the Controlled Disbursement Account, and the Collection Account will not be subject to any deduction, set-off, banker’s lien or any other right in favor of any Person other than the Agent, for the benefit of the Lenders and any L/C Issuer and their respective Affiliates.

 

(c)           Cash Management Policies.  From time to time, the Agent may adopt such regulations and procedures and changes as it may deem reasonable and appropriate with respect

 

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to the operation of the Funding Account, the Controlled Disbursement Account, the Collection Account, the automatic sweep program and the other services to be provided by the Agent under this Agreement, and such regulations, procedures and changes need not be reflected by an amendment to this Agreement in order to be effective.  The Agent will give notice of such regulations, procedures and changes to Borrower Representative in the ordinary course of the Agent’s business.  For the avoidance of doubt, the provisions of this clause (c) will not affect the order of application of funds pursuant to the preceding paragraphs of this Section 2.15.  The Agent shall not be liable for any loss or damage resulting from any error, omission, failure or negligence on the part of the Agent in good faith with respect to the operation of the Funding Account, Controlled Disbursement Account, Collection Account, or the services to be provided by the Agent under this Agreement except to the extent, but only to the extent, of any direct damages, as opposed to any consequential, special or lost profit damages, suffered by any Borrower from gross negligence or willful misconduct of the Agent as determined by a final and non-appealable decision of a court of competent jurisdiction.

 

Section 2.16          Uncommitted Facilities Increase; Incremental Facilities.

 

(a)           The Borrower Representative may, after the Third Restatement Closing Date, deliver to the Agent a request (a “Facilities Increase Request”) to borrow incremental term loans (each individually an “Incremental Term Loan” and, collectively, the “Incremental Term Loans”) or to borrow incremental revolving loans (each individually an “Incremental Revolving Loan” and, collectively, the “Incremental Revolving Loans”)  (any such incremental borrowing being a “Facilities Increase”) from one or more Facilities Increase Lenders (as defined below), provided that (i)  no more than three (3) Facilities Increases shall be consummated pursuant to this Section 2.16 and the aggregate amount of all Facilities Increases consummated pursuant to this Section 2.16 shall not exceed Thirty Million Dollars ($30,000,000), (ii) each Facilities Increase shall be in an amount no less than Ten Million Dollars ($10,000,000) and multiples of One Hundred Thousand Dollars ($100,000) in excess thereof; (iii) no Facilities Increase shall be effective later than one (1) year prior to the Maturity Date; (iv) no Facilities Increase shall be effective earlier than twenty (20) Business Days after, or more than sixty (60) days after, the delivery of the Facilities Increase Request to the Agent; (v) each Facilities Increase shall be used solely to finance a Permitted Acquisition (or other Acquisition approved by the Agent and the Required Lenders) and related closing costs; (vi) prior to consummating a Facilities Increase, the Borrower Representative shall have delivered to the Agent a pro forma Compliance Certificate demonstrating that, upon giving effect to such Facilities Increase and any refinancing of any existing Indebtedness in connection therewith, on a pro forma basis, the Credit Parties would be in compliance with the financial covenants set forth in Section 6.22 and the Total Net Leverage Ratio would be not greater than the level then required by Section 6.22 minus 0.25 to 1.00, in each case as of the most recent month or fiscal quarter, as applicable, for which the Borrowers have delivered financial statements pursuant to Section 6.1 and that the conditions set forth in clauses (a) and (b) of Section 3.1 are satisfied; and (vii) both before and after giving effect to any such Facilities Increase, no Default or Event of Default shall have occurred and be continuing.  Nothing in this Agreement shall be construed to obligate any Lender to participate in any Facilities Increase.  Each Facilities Increase Request shall set forth (x) the amount of the Incremental Term Loan being requested, (y) the date on which such Facilities Increase is requested to become effective (that complies with the requirements of clause (iii) above) and (z)

 

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whether the requested Incremental Term Loan is to be Base Rate Loan, LIBOR Loan or Eurodollar Loan (and if a Eurodollar Loan, the Interest Period therefor).

 

(b)           Upon the delivery of the applicable Facilities Increase Request, the Agent shall promptly notify each Lender of the proposed Facilities Increase and of the proposed terms and conditions therefor agreed between the Borrower Representative, the Facilities Increase Lenders and the Agent; provided that, (i) in no event shall the final maturity date of any Incremental Term Loans be earlier than the final maturity date of any other existing Loans hereunder, (ii) the weighted average life to maturity of any Incremental Term Loans shall be no shorter than the weighted average life to maturity of the existing Term Loans, (iii) if the Weighted Average Yield relating to such Incremental Term Loans (to the extent that such Incremental Term Loan is made within twelve (12) months after the Third Restatement Closing Date) exceeds the Weighted Average Yield relating to the existing Draw Term Loans by more than 0.50%, the Weighted Average Yield related to the existing Draw Term Loans shall be adjusted to be equal to the Weighted Average Yield relating to such Incremental Term Loans minus 0.50%, (iv) any Incremental Term Loans shall have the same guarantees as, and be secured on a pari passu basis by the same Collateral securing the Draw Term Loans.  Such Facility Increase shall be offered to all Lenders pro rata according to the respective Percentage, applied on an aggregate basis, for the Loans and Commitments held by each Lender.  If the applicable Lenders do not accept the offered Facilities Increase in its entirety on a pro rata basis within ten (10) Business Days of such offer, that portion of the Facilities Increase not accepted by the applicable Lenders shall be offered to the applicable Lenders on a non-pro rata basis, and shall be allocated by Agent.  If the applicable Lenders do not accept the applicable Facilities Increase in its entirety on a non-pro rata basis within ten (10) Business Days after such offer, that portion of the Facilities Increase not accepted by the applicable Lenders may be offered to Facilities Increase Lenders (as defined below).

 

(c)           Each Facilities Increase shall become effective in accordance with the terms hereof on a date agreed by the Borrower and the Agent (a “Facilities Increase Date”), subject to the satisfaction of the conditions precedent set forth in Section 3.1 and Agent’s receipt of legal opinions, board resolutions, evidence of compliance with all applicable rules and regulations promulgated pursuant to the federal flood insurance laws, and other closing certificates and documentation with respect to such Incremental Term Loans to be made thereunder consistent with those delivered on the Third Restatement Closing Date under Section 3.2 and any and all amendment documents requested by Agent pursuant to clause (d) below.

 

(d)           The Facilities Increase shall be evidenced by an amendment or supplement to this Agreement executed by the Borrowers (and consented to by all other Credit Parties), the Agent and Persons participating in such Facilities Increase (each, a “Facilities Increase Lender” and collectively, the “Facilities Increase Lenders”); provided that, each Facilities Increase Lender, if not already a Lender hereunder, shall be subject to the prior approval of (i) the Borrower Representative in its reasonable discretion and (ii) the Agent in its reasonable discretion.  Upon closing of the Facilities Increase, new Facilities Increase Lenders shall be deemed to be Lenders hereunder and Incremental Term Loans made pursuant to the Facilities Increase shall for all purposes be deemed to be Term Loans hereunder.  Each of the Credit Parties shall take any actions reasonably required by Agent to ensure and/or demonstrate that the Liens and security interests granted by the applicable Loan Documents continue to be perfected

 

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under the UCC or otherwise after giving effect to the establishment of any such new Incremental Term Loans, including, without limitation, compliance with Sections 4.1 through 4.4.

 

SECTION 3

 

CONDITIONS PRECEDENT; POST-CLOSING OBLIGATIONS.

 

The obligation of each Lender to advance, continue or convert any Loan (other than the continuation of, or conversion into, a Base Rate Loan) or of any L/C Issuer to issue, extend the expiration date (including by not giving notice of non-renewal) of or increase the amount of any Letter of Credit under this Agreement, shall be subject to the following conditions precedent:

 

Section 3.1            All Credit Events.  At the time of each Credit Event hereunder:

 

(a)           each of the representations and warranties set forth herein and in the other Loan Documents shall be true and correct (i) in all respects if such date is the Third Restatement Closing Date, on and as of such date, and (ii) otherwise, in all material respects (provided that if any representation or warranty is by its terms qualified by concepts of materiality, such representation and warranty shall be true and correct in all respects) on and as of such date, in each case except to the extent the same expressly relate to an earlier date in which case such representations and warranties shall be true and correct in all material respects as of such earlier date;

 

(b)           no Default or Event of Default shall have occurred and be continuing or would occur as a result of such Credit Event, unless such Default or Event of Default shall have been waived in writing in accordance with this Agreement;

 

(c)           after giving effect to any requested extension of credit, the aggregate principal amount of the Revolving Credit Exposures of all Lenders shall not exceed the total Revolving Credit Commitments in effect at such time; and

 

(d)           in the case of a Borrowing, the Agent shall have received the notice required by Section 2.5 hereof, in the case of the issuance of any Letter of Credit the L/C Issuer shall have received a duly completed Application together with any fees called for by Section 2.13 hereof, and, in the case of an extension or increase in the amount of a Letter of Credit, a written request therefor in a form reasonably acceptable to such L/C Issuer together with fees called for by Section 2.13 hereof.

 

Each request for a Borrowing hereunder and each request for the issuance of, increase in the amount of, or extension of the expiration date of, a Letter of Credit shall be deemed to be a representation and warranty by Credit Parties on the date of such Credit Event as to the facts specified in subsections (a) through (d), both inclusive, of this Section.

 

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Section 3.2            Credit Event — Third Restatement Closing Date.  Before or concurrently with the Credit Event on the Third Restatement Closing Date (and in addition to the conditions set forth in Section 3.1):

 

(a)           Credit Agreement and Loan Documents- Third Amended and Restated.  The Agent (or its counsel) shall have received on the Restatement Closing Date (i) from each party hereto either (A) a counterpart of this Agreement signed on behalf of such party or (B) written evidence reasonably satisfactory to the Agent (which may include facsimile or other electronic transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement and (ii) duly executed copies of the Loan Documents, including any promissory notes requested by a Lender pursuant to Section 2.12 payable to the order of each such requesting Lender and a written opinion of the Credit Parties’ counsel, addressed to the Agent, the L/C Issuers and the Lenders.

 

(b)           Authorized Representatives.  The Agent shall have received a list of each Credit Party’s Authorized Representatives;

 

(c)           Closing Certificates; Certified Certificate of Incorporation; Good Standing Certificates.  The Agent shall have received (i) on the Third Restatement Closing Date, a certificate of each Credit Party, dated as of the Third Restatement Closing Date and executed by its Secretary or Assistant Secretary, managing or sole member, or manager, as applicable, which shall (A) certify the resolutions of its Board of Directors, members or other body authorizing the execution, delivery and performance of the Loan Documents to which it is a party, (B) identify by name and title and bear the signatures of the Responsible Officers and any other officers of such Credit Party authorized to sign the Loan Documents to which it is a party, and (C) contain appropriate attachments, including the certificate or articles of incorporation or organization of each Credit Party certified by the relevant authority of the jurisdiction of organization of such Credit Party and a true and correct copy of its by-laws or operating, management or partnership agreement, and (ii) on the Third Restatement Closing Date, a long form good standing certificate for each Credit Party from its jurisdiction of organization;

 

(d)           No Default Certificate.  The Agent shall have received a certificate, signed by a Responsible Officer of each Credit Party on the Third Restatement Closing Date (i) stating that no Default or Event of Default has occurred and is continuing, and (ii) stating that the representations and warranties contained in Section 5 of this Agreement and in the other Loan Documents are true and correct in all respects as of such date, except to the extent the same expressly relate to an earlier date in which case such representations and warranties shall be true and correct in all respects as of such earlier date;

 

(e)           Financial Condition Certificate.  The Agent shall have received a financial condition and solvency certificate from the Chief Financial Officer (or other Responsible Officer of each Credit Party with similar duties) with certification based upon (i) the “Interim Balance Sheet” (as defined therein) for each of Holdings and Target, (ii) such historical financial statements as required by Agent, including, without limitation, monthly consolidated financial statements for the most recently ended fiscal year for Target, (ii) a quality of earnings report in respect of Target, and (iv) reasonably satisfactory financial projections through June 30, 2022, in each case which shall be reasonably satisfactory in form and substance to the Agent and

 

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the Lenders and evidence that the Credit Parties’ and their Subsidiaries’ projected operating performance would indicate an ability to sufficiently service their future debt obligations;

 

(f)            Financial Covenants.  The Agent shall have received evidence from the Credit Parties, in form and substance acceptable to Agent, calculated on a pro forma basis after giving effect to the Closing Date Transactions, that the Total Net Leverage Ratio of the Credit Parties and their Subsidiaries, for the twelve month period then ending, is not greater than 2.50 to 1.00, as of the Third Restatement Closing Date;

 

(g)           Lien Searches.  The Agent shall have received financing statement and, as appropriate, tax and judgment lien search results against the Property of each of the Credit Parties evidencing the absence of Liens on its Property except for Permitted Liens;

 

(h)           Material Adverse Change.  There shall be no material adverse change in, or material adverse effect upon, the operations, business, Property, or financial condition of the Credit Parties and their Subsidiaries taken as a whole as determined by Agent and the Lenders from June 30, 2017 to the Third Restatement Closing Date;

 

(i)            Insurance.  The Agent shall have received evidence of insurance required by this Agreement on Accord 23, 27 or 28, naming the Agent as additional insured and lender’s loss payable, and mortgagee (with respect to any owned real estate for which a Mortgage is granted), and including, without limitation, in form and substance satisfactory to Agent, certificates of insurance evidencing coverage as of the Closing Date with respect to (i) property and casualty insurance of each of the Credit Parties, showing Fifth Third Bank, as Agent, as lender’s loss payable, together with a copy of the lender’s loss payable endorsement thereto, (ii) liability insurance of each of the Credit Parties, showing Fifth Third Bank, as Agent, as additional insured, together with a copy of the additional insured endorsement thereto, (iii) general liability and property and casualty insurance of the Credit Parties, together with a copy of the 30 days’ notice of cancellation endorsement in favor of Fifth Third Bank, as Agent, and (iii) business interruption coverage;

 

(j)            Fees.  Fifth Third shall have received the fees set forth in the Fifth Third Fee Letter to the extent due and payable on the Third Restatement Closing Date;

 

(k)           Nautic Star Acquisition. The Agent shall have received evidence that the Nautic Star Acquisition shall have been or shall concurrently be consummated in accordance with applicable law and substantially in accordance with the Nautic Star Purchase Agreement submitted to Agent on the Third Restatement Closing Date, and no provision of the Nautic Star Purchase Agreement or the other Nautic Star Acquisition Documents shall have been waived, amended , supplemented or otherwise modified in any manner materially adverse to the interests of the Lenders, without the approval of Agent;

 

(l)            Nautic Star Acquisition Documents.  The Agent shall have received a certificate of an Authorized Representative of the Borrower Representative certifying that (i) attached thereto is a true and correct copy of the Nautic Star Acquisition Documents as of the Third Restatement Closing Date, (ii) the Nautic Star Acquisition Documents shall not since the execution thereof have been altered, amended or otherwise changed or supplemented or any

 

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condition therein waived, in each case, in a manner that would be materially adverse to the Lenders, without the prior written consent of the Agent;

 

(m)          Pledged Stock; Stock Powers; Pledged Notes.  The Agent shall have received (i) the certificates representing the Equity Interests pledged pursuant to the Security Agreement, together with an undated equity power for each such certificate executed in blank by a Responsible Officer of the pledgor thereof and (ii) each promissory note (if any) pledged to the Agent pursuant to the Security Agreement endorsed (without recourse) in blank (or accompanied by an executed transfer form in blank) by the pledgor thereof;

 

(n)           Mortgages.  The Agent shall have received, with respect to the following real property, fixtures and interests in real property owned by the Borrowers as of the Third Restatement Closing Date and commonly known as (i) 100 Cherokee Cove Drive, Monroe County, Vonore Tennessee 37885, and (ii) 500 Waterway Drive , Amory, MS 38821, in form and substance reasonably satisfactory to the Agent:

 

(i)            a Mortgage (or a Mortgage amended or amended and restated, as applicable) on such property;

 

(ii)           mortgagee’s title insurance policies (or binding commitments therefore) in an aggregate amount acceptable to the Lenders insuring the Liens of the Mortgages to be valid first priority Liens subject to no defects or objections that are unacceptable to the Agent, together with such endorsements as the Agent may require;

 

(iii)          the Agent shall have received a survey in form and substance acceptable to the Agent prepared by a licensed surveyor on each parcel of real property subject to the Lien of the Mortgages, which survey shall also state whether or not any portion of such property is in a federally designated flood hazard area;

 

(iv)          the Agent shall have received a report of an independent firm of environmental engineers acceptable to the Agent concerning the environmental hazards and matters with respect to the parcels of real property subject to the Lien of the Mortgages, together with a reliance letter thereon acceptable to the Agent;

 

(v)           the Agent shall have received a flood determination report for each parcel of real property subject to the Lien of the Mortgages prepared for the Agent by a flood determination company selected by the Agent stating whether or not any portion of such property is in a federally designated flood hazard area;  provided that with respect to each such property that is located in an area identified by the Federal Emergency Management Agency (or any successor agency) as a “special flood hazard area” with respect to which flood insurance has been made available under federal flood insurance laws, the applicable Borrower (A) has obtained and will maintain, with financially sound and reputable insurance companies (except to the extent that any insurance company insuring the Mortgage ceases to be financially sound and reputable after the Third Restatement Closing Date, in which case, the Borrowers shall promptly replace such insurance company with a financially sound and reputable insurance company), such flood insurance in such reasonable total amount as the Agent and the Lenders may from

 

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time to time reasonably require, and otherwise sufficient to comply with all applicable rules and regulations promulgated pursuant to the federal flood insurance laws and (B) promptly upon request of the Agent or any Lender, will deliver to the Agent or such Lender, as applicable, evidence of such compliance in form and substance reasonably acceptable to the Agent and the Lenders, including, without limitation, evidence of annual renewals of such insurance.

 

(o)           Capital Structure; Appraisals and Reports.  The (i) capital and organizational structure of the Credit Parties shall be reasonably satisfactory to the Agent, and (ii) Agent shall have received such evaluations, appraisals, reports and certifications as it may reasonably require in order to satisfy itself as to the value of the Collateral, the financial condition of the Credit Parties and the Target, and the lack of material contingent liabilities of the Credit Parties and the Target;

 

(p)           Litigation.  No injunction, temporary restraining order or other legal action that would prohibit the Credit Event on the Third Restatement Closing Date, or other litigation which could reasonably be expected to have a Material Adverse Effect, shall be pending or, to the knowledge of any Credit Party, threatened;

 

(q)           Third Party Documents.  The Agent shall have received, in form and substance satisfactory to Agent, (i) a deposit account control agreement with respect to any deposit accounts of each Credit Party existing as of the Third Restatement Closing Date with a financial institution other Fifth Third, and (ii) a Collateral Access Agreement with respect to the leasehold locations of the Credit Parties as described on Schedules to the Security Agreement, subject to Section 3.3 (Post-Closing Obligations) hereof;

 

(r)            Payoff Letters; Releases.  The Agent shall have received pay-off and lien release letters from secured creditors of each of the Target entities setting forth, among other things, the total amount of indebtedness outstanding and owing to such secured creditors and containing an undertaking to cause to be delivered to the Agent UCC termination statements, mortgage releases and any other lien release instruments necessary to release Liens on the assets of the Target entities, which pay-off and lien release letters shall be in form and substance acceptable to the Agent; and

 

(s)            Other.  The Agent shall have received such other agreements, instruments, documents, certificates, and opinions as the Agent may reasonably request including, without limitation, those listed on any document checklist prepared by Agent.  Each such closing delivery set forth in this Section required by this Section 3.2(b) shall be in form and substance reasonably satisfactory to the Agent and the Lenders.

 

Section 3.3            Post-Closing Obligations. The Credit Parties shall complete each of the post-closing obligations and/or provide to Agent each of the documents, instruments, agreements and information listed on Schedule 3.3 attached hereto on or before the date set forth for each such item thereon (or such later date as Agent shall permit in its sole discretion), each of which shall be completed or provided in form and substance reasonably satisfactory to Agent.

 

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SECTION 4

 

THE COLLATERAL, GUARANTIES.

 

Section 4.1            Collateral.  The Obligations, including, without limitation, Rate Management Obligations and Banking Services Obligations, shall be secured by (a) valid, perfected, and enforceable Liens on all right, title, and interest of each of the Credit Parties and each Subsidiary in all capital stock and other Equity Interests held by such Person in each of its Subsidiaries, whether now owned or hereafter formed or acquired, and all Proceeds thereof, and (b) valid, perfected, first priority and enforceable Liens on all right, title, and interest of each of the Credit Parties and each Subsidiary in all personal property, fixtures, and real estate, whether now owned or hereafter acquired or arising, and all Proceeds thereof, in each case subject to Permitted Liens.  Holdings will cause 100% of the issued and outstanding Equity Interests of each of direct and indirect Subsidiary of Holdings to be subject at all times to a first priority, perfected Lien and pledge in favor of Agent pursuant to the terms and conditions of this Agreement, and the applicable Collateral Documents or other security documents as Agent shall reasonably request.

 

Notwithstanding the foregoing, the Lien of Agent shall not extend to and Collateral (or any asset or property comprising the Collateral) shall not include the following Property (all of the following being the “Excluded Assets”): (i) other than Accounts, any lease, license, permit or agreement to which any Credit Party is a party to the extent, but only to the extent, that such a grant would, under the terms of such lease, license, permit or agreement, result in a breach of the terms of, invalidate, or constitute a default under, such lease, license, permit or agreement or to the extent any requirement of law prohibits the grant of a Lien thereon; (ii) any “intent to use” applications for Trademarks for which a statement of use has not been filed and accepted with the United States Patent and Trademark Office; (iii) those assets as to which Agent determines in its Permitted Discretion the cost of obtaining a Lien therein in favor of Agent or the perfection thereof are excessive in relation to the benefit to the Lenders afforded by such Lien, (iv) equipment owned by a Credit Party that is subject to a purchase money lien or Capitalized Lease permitted hereunder, (v) any other Intellectual Property if, after giving effect to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC, the grant of a Lien or a security interest in such Intellectual Property would result in the cancellation or voiding of such Intellectual Property.

 

Furthermore, the Lien of Agent need not be perfected, until otherwise required by the Agent or the Required Lenders, (a) on vehicles which are subject to a certificate of title law (collectively, the “Excluded Vehicles”), and (b) deposit accounts which have been established and are used in the ordinary course for the sole purpose of (i) petty cash supporting local operations so long as the amounts on deposit in such deposit accounts do not at any time exceed $5,000 in the aggregate for all such accounts, (ii) making payroll and withholding tax payments related thereto and other employee wage and benefit payments to or for the benefit of employees and unpaid employee compensation (including salaries, wages, benefits, health savings and expense reimbursements), but only to the extent that the aggregate amount on deposit in all such deposit accounts or securities accounts does not exceed 110% of the payment obligations described herein for the current pay period), and (iii) escrow, trust and fiduciary accounts (collectively, the “Excluded Accounts”) .

 

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Section 4.2            Liens on Real Property; Collateral Access Agreements.

 

(a)           In the event that any Credit Party or any Subsidiary owns or hereafter acquires a fee estate in any real property, with a fair market value in excess of $500,000 individually or in the aggregate for any such real property, the Credit Parties shall, or shall cause such Subsidiary to, execute and deliver to the Agent (or a security trustee therefor) a mortgage or deed of trust reasonably acceptable in form and substance to the Agent for the purpose of granting to the Agent, for the benefit of itself and the Lenders, a Lien on such real property to secure the Obligations, shall pay all taxes, costs, and expenses incurred by the Agent in recording such mortgage or deed of trust, and shall supply to the Agent at Borrowers’ cost and expense a survey, environmental report, hazard insurance policy, a flood determination report and, if applicable, flood insurance satisfactory to the Lenders, and a mortgagee’s policy of title insurance from a title insurer acceptable to the Agent insuring the validity of such mortgage or deed of trust and its status as a first Lien (subject to Permitted Liens) on the real property encumbered thereby and such other instrument, documents, certificates, and opinions reasonably required by the Agent in connection therewith. Notwithstanding the foregoing, the Agent shall not enter into any Mortgage in respect of any real property acquired by any Credit Party after the Third Restatement Closing Date until (1) the date that occurs 45 days after the Agent has delivered to the Lenders (which may be delivered electronically) the following documents in respect of such real property: (i) a completed flood hazard determination from a third party vendor; (ii) if such real property is located in a “special flood hazard area”, (A) a notification to the applicable Credit Party of that fact and (if applicable) notification to the applicable Credit Party that flood insurance coverage is not available and (B) evidence of the receipt by the applicable Credit Party of such notice; and (iii) if such notice is required to be provided to the applicable Credit Party and flood insurance is available in the community in which such real property is located, evidence of required flood insurance and (2) Agent shall have received written confirmation from the Lenders that flood insurance due diligence and flood insurance compliance has been completed by the Lenders (such written confirmation not to be unreasonably conditioned, withheld or delayed).

 

(b)           As of the Third Restatement Closing Date, the Credit Parties shall use commercially reasonable efforts to deliver to the Agent a Collateral Access Agreement with respect to the chief executive office (if leased) and each of the other locations set forth on Schedule 3.4 of the Security Agreement where Credit Parties maintain books and records or Inventory and Equipment with a fair market value in excess of $300,000. The Credit Parties shall use commercially reasonable efforts to deliver Collateral Access Agreements with respect to any new chief executive office (if leased) established after the Third Restatement Closing Date, each location of original books and records and, to the extent required by Section 4.3 of the Security Agreement, each other Collateral location established after the Third Restatement Closing Date where Credit Parties maintain books and records or Inventory and Equipment with a fair market value in excess of $300,000.

 

Section 4.3            Guaranties.  The payment and performance of the Obligations of each Credit Party shall at all times be jointly and severally guaranteed by the Credit Parties and their Domestic Subsidiaries.

 

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Section 4.4            Further Assurances.  Each of the Credit Parties agrees that it shall, and shall cause each Subsidiary (other than an Excluded Subsidiary) to, from time to time at the request of the Agent or the Required Lenders, execute and deliver such documents and do such acts and things as the Agent or the Required Lenders may reasonably request in order to provide for or perfect or protect such Liens on the Collateral.  In the event any Credit Party or any Subsidiary forms or acquires any other Subsidiary after the date hereof the Credit Parties shall (i) provide prior written notice to Agent as to the creation of such Subsidiary and the purpose thereof, and (ii) forty-five (45) days following such formation or acquisition cause such newly formed or acquired Subsidiary to become a Borrower or Guarantor hereunder as Agent shall direct and to execute and deliver to Agent a Joinder Agreement, Collateral Documents and such other instruments, documents, certificates, and opinions required by the Agent in connection therewith; provided that such requirement shall not apply to a newly formed or acquired Foreign Subsidiary, if Borrower Representative reasonably determines that such act could reasonably be expected to have adverse tax consequences to the Credit Parties so long as no Collateral or Loan proceeds are transferred to such Foreign Subsidiary, as provided in Section 6.24 hereof. No Foreign Subsidiary created after the date hereof, shall, without the prior written consent of Agent, receive any proceeds from any Loan hereunder or any Collateral.  Subject to Section 4.2(a) and the foregoing provisions of this Section 4.4, if any material assets (including any real property or improvements thereto or any interest therein) are acquired by the Credit Parties after the Closing Date (other than assets constituting Collateral under the Security Agreement that become subject to the Lien in favor of the Security Agreement upon acquisition thereof), the Credit Party will (i) notify Agent thereof and, if requested by Agent or the Required Lenders, cause such assets to be subjected to a Lien securing the Obligations and (ii) take such actions as shall be necessary or reasonably requested by Agent to grant and perfect such Liens, all at the expense of the Credit Parties.

 

SECTION 5

 

REPRESENTATIONS AND WARRANTIES.

 

Each of the Credit Parties represents and warrants to each Lender and the Agent, and agrees, that:

 

Section 5.1            Organization and Qualification.  Each of the Credit Parties and each of their Subsidiaries (i) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (ii) has the corporate or limited liability company power and authority to own its property and to transact the business in which it is engaged and proposes to engage and (iii) is duly qualified and in good standing in each jurisdiction where the ownership, leasing or operation of property or the conduct of its business requires such qualification, except where the failure to be so qualified and in good standing could not be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect.

 

Section 5.2            Authority and Enforceability.  Each Credit Party has full right and authority to enter into this Agreement and the other Loan Documents executed by it, to make Borrowings herein provided for, to issue its Notes, to grant to the Agent, for the benefit of itself and the Lenders, the Liens described in the Collateral Documents executed by such Credit Party, and to perform all of its obligations hereunder and under the other Loan Documents executed by

 

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it.  Each Credit Party has full right and authority to enter into the Loan Documents executed by it, to guarantee the Obligations, including, without limitation, Rate Management Obligations and Banking Services Obligations, to grant to the Agent, for the benefit of itself and the Lenders, the Liens described in the Collateral Documents executed by such Person, and to perform all of its obligations under the Loan Documents executed by it.  The Loan Documents delivered by each of the Credit Parties and by each Subsidiary, if any, have been duly authorized, executed, and delivered by such Person and constitute valid and binding obligations of such Person enforceable against it in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance or similar laws affecting creditors’ rights generally and general principles of equity (regardless of whether the application of such principles is considered in a proceeding in equity or at law); and this Agreement and the other Loan Documents do not, nor does the performance or observance by any Credit Party or any Subsidiary, if any, of any of the matters and things herein or therein provided for, (a) contravene or constitute a default under any provision of any material law or any material judgment, injunction, order or decree binding upon any Credit Party or any Subsidiary, if any, or any provision of the organizational documents (e.g., charter, articles of incorporation, by-laws, articles of association, operating agreement, partnership agreement or other similar document) of any Credit Party or any Subsidiary, (b) contravene or constitute a default under any covenant, indenture or agreement of or affecting any Credit Party or any Subsidiary or any of such Person’s Property, in each case where such contravention or default, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect or (c) result in the creation or imposition of any Lien on any Property of any Credit Party or any Subsidiary other than the Liens granted in favor of the Agent pursuant to the Collateral Documents.

 

Section 5.3            Financial Reports.  The audited consolidated financial statements of Holdings and its Subsidiaries as at June 30, 2016, and the unaudited interim consolidated financial statements of Holdings and its Subsidiaries as at June 30, 2017 (the “Interim Balance Sheet”), heretofore furnished to the Agent, have been prepared in accordance with GAAP in all material respects (except in the case of the Interim Balance Sheet, which is subject to year-end adjustments and the absence of footnotes) applied on a consistent basis throughout the periods covered thereby (except as noted therein), present fairly in all material respects the financial condition of Holdings and its Subsidiaries as of such dates and the results of operations and cash flows of Holdings and its Subsidiaries for such periods, are correct and complete in all material respects, and are consistent in all material respects with the books and records of Holdings and its Subsidiaries.

 

Section 5.4            No Material Adverse Change.  Since June 30, 2017 (the date of the most recent audited financial statements), there has been no change in the financial condition or operations of the Credit Parties and the Subsidiaries taken as a whole, except those occurring in the ordinary course of business, none of which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect.

 

Section 5.5            Litigation and Other Controversies.  There is no litigation, arbitration or governmental proceeding pending or, to the knowledge of any Credit Party and/or any Subsidiary, threatened against any Credit Party or any Subsidiary that could reasonably be expected to have a Material Adverse Effect.

 

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Section 5.6            True and Complete Disclosure.  All information furnished by or on behalf of any Credit Party or any Subsidiary in writing to the Agent or any Lender for purposes of or in connection with this Agreement, or any transaction contemplated herein, is, when taken as a whole, true and accurate in all material respects and not incomplete by omitting to state any fact necessary to make such information not misleading in light of the circumstances under which such information was provided when taken as a whole; provided that, with respect to projected financial information furnished by or on behalf of the Credit Parties or any of their Subsidiaries, each of the Credit Parties only represents and warrants that such information is prepared in good faith based upon assumptions believed to be reasonable at the time prepared (it being understood that no assurance can be given that such projections will be realized and that actual results may differ from such projections).

 

Section 5.7            Use of Proceeds; Margin Stock.  Certain of the proceeds of the Term Loans shall be used by Borrowers on the Third Restatement Closing Date, together with a certain amount of cash on hand, for the Closing Date Transactions; and all proceeds of the Revolving Loans and Swing Loans, made after the Third Restatement Closing Date, shall be used by Borrowers for working capital purposes, including, without limitation, Capital Expenditures permitted hereunder, and other general corporate purposes (and Permitted Acquisitions of Borrowers and their Subsidiaries).  No part of the proceeds of any Loan or other extension of credit hereunder will be used by any Borrower or any Subsidiary thereof to purchase or carry any margin stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve System, “Margin Stock”) or to extend credit to others for the purpose of purchasing or carrying any Margin Stock.  Neither the making of any Loan or other extension of credit hereunder nor the use of the proceeds thereof will violate or be inconsistent with the provisions of Regulations T, U or X of the Board of Governors of the Federal Reserve System and any successor to all or any portion of such regulations.  Margin Stock (as defined above) constitutes less than 25% of the value of those assets of the Credit Parties and their Subsidiaries that are subject to any limitation on sale, pledge or other restriction hereunder.

 

Section 5.8            Taxes.  Each of the Credit Parties and each of their Subsidiaries has timely filed or caused to be timely filed all federal income Tax returns and all other material Tax returns required to be filed by any Credit Party and/or any Subsidiary.  Each of the Credit Parties and each Subsidiary has paid all federal income Taxes and all other material Taxes, assessments and other governmental charges due and payable by them (or any one or more of them) other than Taxes, assessments and other governmental charges which are not delinquent, except those (a) that are being contested in good faith and by proper legal proceedings, and (b) as to which appropriate reserves have been provided for in accordance with GAAP.  There is no proposed tax assessment (excluding any generally applicable changes in Tax rates) against any Credit Party or any Subsidiary that would, if made, have a Material Adverse Effect, nor is there any tax sharing agreement applicable to any Credit Party or any Subsidiary that could reasonably be expect to result in an Material Adverse Effect. As of the Third Restatement Closing Date, no Borrower has any permanent establishment outside of the United States.

 

Section 5.9            ERISA.  (a) Each Plan of a Credit Party is in compliance with the applicable provisions of ERISA, the Code and other federal or state laws, except such noncompliance as could not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.  Each Pension Plan of a Credit Party that is intended to be

 

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a qualified plan under Section 401(a) of the Code has received a favorable determination letter or is subject to a favorable opinion letter from the IRS to the effect that the form of such Plan is qualified under Section 401(a) of the Code and the trust related thereto has been determined by the IRS to be exempt from federal income tax under Section 501(a) of the Code, or an application for such a letter is currently being processed by the IRS.  To the best knowledge of the Credit Parties, nothing has occurred that would prevent or cause the loss of such tax-qualified status as of the Third Restatement Closing Date;

 

(b)           There are no pending or, to the best knowledge of the Credit Parties, threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that could reasonably be expected to have a Material Adverse Effect.  There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that has resulted or could reasonably be expected to result in a Material Adverse Effect;

 

(c)           (i) No ERISA Event has occurred, and no Credit Party nor any ERISA Affiliate is aware of any fact, event or circumstance that could reasonably be expected to constitute or result in an ERISA Event with respect to any Pension Plan; (ii) each Credit Party and each ERISA Affiliate has met all applicable requirements under the Pension Funding Rules in respect of each Pension Plan, and no waiver of the minimum funding standards under the Pension Funding Rules has been applied for or obtained; (iii) as of the most recent valuation date for any Pension Plan, the funding target attainment percentage (as defined in Section 430(d)(2) of the Code) is sixty percent (60%) or higher and no Credit Party nor any ERISA Affiliate knows of any facts or circumstances that could reasonably be expected to cause the funding target attainment percentage for any such plan to drop below sixty percent (60%) as of the most recent valuation date; (iv) no Credit Party nor any ERISA Affiliate has incurred any liability to the PBGC other than for the payment of premiums, and there are no premium payments which have become due that are unpaid; (v) neither any Credit Party nor any ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or Section 4212(c) of ERISA; (vi) no Pension Plan has been terminated by the plan administrator thereof nor by the PBGC, and no event or circumstance has occurred or exists that could reasonably be expected to cause the PBGC to institute proceedings under Title IV of ERISA to terminate any Pension Plan; and (vii) no Pension Plan has a funding shortfall within the meaning of Section 430(a) of the Code.

 

(d)           Neither any Credit Party nor any ERISA Affiliate maintains or contributes to, or has any unsatisfied obligation to contribute to, or liability under, any active or terminated Pension Plan other than (i) on the Third Restatement Closing Date, those listed on Schedule 5.9 hereto and (ii) thereafter, Pension Plans not otherwise prohibited by this Agreement.

 

Section 5.10          Subsidiaries.  Schedule 5.10 correctly sets forth, as of the Third Restatement Closing Date, each Subsidiary of the Credit Parties, its respective jurisdiction of organization and the percentage ownership (direct and indirect) of such Credit Party in each class of capital stock or other Equity Interests of each of its Subsidiaries and also identifies the direct owner thereof.

 

Section 5.11          Compliance with Laws.  Each of the Credit Parties and each Subsidiary is in compliance with all applicable statutes, regulations and orders of, and all applicable restrictions imposed by, all Governmental Authorities in respect of the conduct of their

 

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businesses and the ownership of their property, except such non-compliances as could not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.

 

Section 5.12          Environmental Matters.  Each of the Credit Parties and each Subsidiary is in compliance with all applicable Environmental Laws and the requirements of any permits issued under such Environmental Laws, except to the extent that the aggregate effect of all non-compliances could not reasonably be expected to have a Material Adverse Effect.  There are no pending or, to the best knowledge of any Credit Party or any Subsidiary after due inquiry, threatened Environmental Claims, including any such claims (regardless of materiality) for liabilities under CERCLA relating to the disposal of Hazardous Materials, against any Credit Party or any Subsidiary or any real property, including leaseholds, owned or operated by any Credit Party or any Subsidiary, except such claims as could not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.  Except as could not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect, there are no facts, circumstances, conditions or occurrences on any real property, including leaseholds, owned or operated by any Credit Party or any Subsidiary that, to the best knowledge of any Credit Party or any Subsidiary after due inquiry, could reasonably be expected (i) to form the basis of an Environmental Claim against any Credit Party or any Subsidiary or any such real property, or (ii) to cause any such real property to be subject to any restrictions on the ownership, occupancy, use or transferability of such real property by any Credit Party or any Subsidiary under any applicable Environmental Law.  Hazardous Materials have not been Released on or from any real property, including leaseholds, owned or operated by any Credit Party or any Subsidiary where such Release, individually, or when combined with other Releases, in the aggregate, may reasonably be expected to have a Material Adverse Effect.

 

Section 5.13          Investment Company.  No Credit Party nor any Subsidiary is an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

Section 5.14          Intellectual Property.  Each of the Credit Parties and each Subsidiary owns all the Intellectual Property, franchises or rights with respect to the foregoing, or each has obtained licenses of all other rights of whatever nature necessary for the present conduct of its businesses, in each case without any known conflict with the rights of others which, or the failure to obtain which, as the case may be, could reasonably be expected to result in a Material Adverse Effect.

 

Section 5.15          Good Title.  Each of the Credit Parties and each Subsidiary have good and marketable title, or valid leasehold interests, to their assets necessary for the operation of its business as reflected on the most recent consolidated balance sheet of the Credit Parties and their Subsidiaries provided to the Agent (except for sales of assets in the ordinary course of business, and such defects in title that could not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect) and is subject to no Liens, other than Permitted Liens.

 

Section 5.16          Labor Relations.  No Credit Party nor any Subsidiary is engaged in any unfair labor practice that could reasonably be expected to have a Material Adverse Effect.  There is (i) no strike, labor dispute, slowdown or stoppage pending against any Credit Party or any

 

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Subsidiary or, to the best knowledge of any Credit Party or any Subsidiary, threatened against any Credit Party or any Subsidiary and (ii) to the best knowledge of the Credit Parties and their Subsidiaries, no union representation proceeding is pending with respect to the employees of any Credit Party or any Subsidiary.  All collective bargaining agreements and similar labor relations agreements to which any Credit Party is a party as of the Third Restatement Closing Date are described on Schedule 5.16 hereto, together with the expiration date thereof, and such Credit Party is in compliance with all such collective bargaining agreements except to the extent that a failure to be in compliance would reasonably be expected to result in a Material Adverse Effect.

 

Section 5.17          Capitalization.  All outstanding Equity Interests of the Credit Parties and their Subsidiaries have been duly authorized and validly issued, and are fully paid and non-assessable. Schedule 5.17 describes (i) the capitalization of each of the Credit Parties and their Subsidiaries, and (ii) any outstanding commitments or other obligations of any Credit Party or any Subsidiary to issue, and any rights of any Person to acquire, any Equity Interests in any Credit Party or any Subsidiary.

 

Section 5.18          Other Agreements.  No Credit Party nor any Subsidiary is in default under (i) the Subordinated Debt Documents, or (ii) the terms of any covenant, indenture or agreement of or affecting any Credit Party, any Subsidiary or any of their respective Property, which default if uncured could reasonably be expected to have a Material Adverse Effect.

 

Section 5.19          Governmental Authority and Licensing.  Each of the Credit Parties and their Subsidiaries have received all licenses, permits, and approvals of each Governmental Authority necessary to conduct their businesses, in each case where the failure to obtain or maintain the same could reasonably be expected to have a Material Adverse Effect.  No investigation or proceeding that, if adversely determined, could reasonably be expected to result in revocation or denial of any license, permit or approval is pending or, to the knowledge of any Credit Party or any Subsidiary, threatened, except where such revocation or denial could not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.

 

Section 5.20          Approvals.  No authorization, consent, license or exemption from, or filing or registration with, any Governmental Authority, nor any approval or consent of any other Person, is or will be necessary to the valid execution, delivery or performance by any Credit Party or any Subsidiary of any Loan Document, except for the filing of UCC financing statements and Intellectual Property security agreements and such approvals which have been obtained prior to the date of this Agreement and remain in full force and effect.

 

Section 5.21          Affiliate Transactions.  No Credit Party nor any Subsidiary is a party to any contracts or agreements with any of its Affiliates (other than with Wholly-Owned Subsidiaries) on terms and conditions which are less favorable to such Credit Party or such Subsidiary than would be usual and customary in similar contracts or agreements between Persons not affiliated with each other, other than as permitted pursuant to Section 6.8 hereof.

 

Section 5.22          Solvency.  After giving effect to the Credit Event on the Third Restatement Closing Date, the Credit Parties and their Subsidiaries, taken as a whole, are able to generally pay their debts as they become due in the ordinary course of business and do not have

 

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an unreasonably small amount of capital with which to carry on their businesses; and the amount that will be required to pay the probable liabilities of the Credit Parties and their Subsidiaries as they become absolute and mature in the ordinary course of business is less than the sum of the present fair sale value of their assets valued on a going concern basis.

 

Section 5.23          No Broker Fees.  No broker’s or finder’s fee or commission will be payable with respect hereto or any of the transactions contemplated hereby; and each of the Credit Parties hereby agrees to indemnify the Agent and the Lenders against, and agree that they will hold the Agent and the Lenders harmless from, any claim, demand, or liability for any such broker’s or finder’s fees alleged to have been incurred in connection herewith or therewith and any expenses (including reasonable and documented attorneys’ fees) arising in connection with any such claim, demand, or liability.

 

Section 5.24          PATRIOT Act; Foreign Corrupt Practices Act.

 

(a)           Each Credit Party and its Subsidiaries are in compliance with the (i) Trading with the Enemy Act, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto, and (ii) Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT Act of October 26, 2001) (the “PATRIOT Act”).

 

(b)           No Credit Party nor any of its domestic Subsidiaries nor, to the knowledge of any Credit Party, any director, officer, agent, employee or other person acting on behalf of any Credit Party or any of its domestic Subsidiaries has taken any action, directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”) or any other applicable anti-corruption law; and the Credit Parties have instituted and maintain policies and procedures designed to ensure continued compliance therewith. No part of the proceeds of the Loans 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 FCPA.

 

(c)           Neither any Credit Party nor any Subsidiary or any Affiliate thereof is in violation of any of the OFAC Sanctions.  Neither any Credit Party nor any subsidiary thereof, nor to the knowledge of such Credit Party or any of its subsidiaries, any director, officer, employee, agent, Affiliate or representative thereof (i) is a Sanctioned Person or a Sanctioned Entity, (ii) has its assets located in a Sanctioned Entity, (iii) derives revenues from investments in, or transactions with a Sanctioned Person or a Sanctioned Entity or (iv) is owned or controlled by a Sanctioned Entity or a Sanctioned Person.

 

(d)           Each Credit Party has implemented and maintains in effect policies and procedures designed to ensure compliance by such Credit Party, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and such Credit Party, its Subsidiaries and their respective officers and employees and to the knowledge of such Credit Party its directors and agents, are in compliance with Anti-

 

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Corruption Laws and applicable Sanctions in all material respects.    None of (a) any Credit Party, any Subsidiary or any of their respective directors, officers or employees, or (b) to the knowledge of any such Credit Party or Subsidiary, any agent of such Credit Party or any Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person.   No Borrowing or Letter of Credit, use of proceeds, or other transaction contemplated by this Agreement or the other Loan Documents will violate Anti-Corruption Laws or applicable Sanctions.

 

Section 5.25          Purchase Documents.  The Credit Parties have provided to the Agent a true and correct copy of the Project Argo Purchase Documents.  The Project Argo Purchase Documents are in full force and effect and have not, except as reflected in amendments provided to the Agent, been amended or modified in any material respect from the version so delivered to the Agent, no material condition to the effectiveness thereof has been waived and no material obligations of the Target thereunder have been waived, except to the extent approved in writing by the Agent, and no Credit Party is aware of any default thereunder.

 

Section 5.26          Security Interest in Collateral.  The provisions of the Collateral Documents create and continue legal and valid Liens on all the Collateral in favor of the Agent, for the benefit of the Agent and the Lenders, and such Liens constitute perfected and continuing Liens on the Collateral, securing the Obligations, enforceable against the applicable Credit Party and all third parties (except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance or similar laws affecting creditors’ rights generally and general principles of equity (regardless of whether the application of such principles is considered in a proceeding in equity or at law), and having priority over all other Liens on the Collateral except, in the case of Permitted Liens, to the extent any such Permitted Liens would have priority over the Liens in favor of the Agent pursuant to any applicable law or agreement.

 

Section 5.27          Common Enterprise.  The successful operation and condition of each of the Credit Parties is dependent on the continued successful performance of the functions of the group of the Credit Parties as a whole and the successful operation of each of the Credit Parties is dependent on the successful performance and operation of each other Credit Party.  Each Credit Party expects to derive benefit (and its board of directors or other governing body has determined that it may reasonably be expected to derive benefit), directly and indirectly, from (i) successful operations of each of the other Credit Parties and (ii) the credit extended by the Lenders to Borrowers hereunder, both in their separate capacities and as members of the group of companies.  Each Credit Party has determined that execution, delivery, and performance of this Agreement and any other Loan Documents to be executed by such Credit Party is within its purpose, in furtherance of its direct and/or indirect business interests, will be of direct and/or indirect benefit to such Credit Party, and is in its best interest.

 

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SECTION 6

 

COVENANTS.

 

Each of the Credit Parties covenants and agrees that, so long as any Credit is available to Borrowers hereunder and until the Payment in Full of the Obligations:

 

Section 6.1            Information Covenants.  The Credit Parties will furnish to the Agent and each Lender:

 

(a)           [Reserved]

 

(b)           Quarterly Reports.  As soon as available (but only if Holdings is no longer required under the Exchange Act to file periodic reports with the SEC, e.g. Quarterly Reports on Form 10-Q), and in any event within the earlier of (i) five (5) days after such related filing (if any) is due, and (ii) thirty (30) days after the end of each fiscal quarter of the Credit Parties and their Subsidiaries, the consolidated and consolidating balance sheet of the Credit Parties and their Subsidiaries as at the end of such fiscal quarter and the related consolidated and consolidating statements of income and retained earnings and of cash flows for such fiscal quarter and for the elapsed portion of the fiscal year-to-date period then ended, each in reasonable detail, prepared by the Credit Parties in accordance with GAAP, in all material respects (subject to year-end audit adjustments, the absence of footnotes and treatment of research and development), setting forth comparative figures for the corresponding fiscal quarter in the prior fiscal year and comparable budgeted figures for such fiscal quarter, all of which shall be certified by the chief financial officer or other officer of the Credit Parties acceptable to the Agent that they fairly present in all material respects in accordance with GAAP the financial condition of the Credit Parties and their Subsidiaries as of the dates indicated and the results of their operations and changes in their cash flows for the periods indicated, subject to normal year-end audit adjustments and the absence of footnotes.

 

(c)           Annual Statements.  As soon as available (but only if Holdings is no longer required under the Exchange Act to file periodic reports with the SEC, e.g. Annual Reports on Form 10-K), and in any event within the earlier of (i) five (5) days after such related filing (if any) is due, and (ii) within one hundred twenty (120) days after the close of each fiscal year of the Credit Parties and their Subsidiaries, rules and regulations (as provided in Section 6.1(i) hereof) after the close of each fiscal year of the Credit Parties and their Subsidiaries, a copy of the consolidated and consolidating balance sheet of the Credit Parties and their Subsidiaries as of the last day of the fiscal year then ended and the consolidated and consolidating statements of income, retained earnings, and cash flows of the Credit Parties and their Subsidiaries for the fiscal year then ended, and accompanying notes thereto, each in reasonable detail showing in comparative form the figures for the previous fiscal year, accompanied by an unqualified opinion of a firm of independent public accountants of recognized national standing, selected by the Credit Parties and acceptable to the Agent, to the effect that the consolidated financial statements have been prepared in accordance with GAAP and present fairly in accordance with GAAP the consolidated financial condition of the Credit Parties and their Subsidiaries as of the close of such fiscal year and the results of their operations and cash flows for the fiscal year then ended and that an examination of such accounts in

 

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connection with such financial statements has been made in accordance with generally accepted auditing standards.

 

(d)           Officer’s Certificates; Reports

 

(i)            Within the earlier of (x) thirty (30) days after the end of each fiscal quarter of the Credit Parties and their Subsidiaries, (y) concurrently with the delivery of the financial statements provided for in Section 6.1(b), and (x) without duplication, as provided in Section 6.1(i) (Public Filings) hereof, (A) a certificate of the chief financial officer or other officer of the Credit Parties acceptable to the Agent in the form of Exhibit E (a “Compliance Certificate”) (1) stating that no Default or Event of Default has occurred during the period covered by such statements or, if a Default or Event of Default exists, a detailed description of the Default or Event of Default and all actions any Credit Party is taking with respect to such Default or Event of Default, (2) confirming that the representations and warranties stated in Section 5 of this Agreement and in the other Loan Documents are true and correct in all material respects (provided that if any representation or warranty is by its terms qualified by concepts of materiality, such representation and warranty shall be true and correct in all respects) as though made on and as of date thereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct in all respects as of such date), (3) showing the Credit Parties’ compliance with the covenants set forth in Section 6.22, and (4) providing a summary of Credit Parties’ and their Subsidiaries’ contingent liabilities or judgments, order or injunctions against any one or more of them that are material to any one or more of them other than as indicated on the corresponding financial statements delivered pursuant hereto, and (B) a comparison of the current year-to-date financial results (other than in respect of the balance sheets included therein) against the budgets required to be submitted pursuant to clause 6.1(d).

 

(e)           Budgets.  As soon as available, but in any event at least sixty (60) days after the first day of each fiscal year of the Credit Parties and their Subsidiaries, a budget in form reasonably satisfactory to the Agent (including, without limitation, a breakdown of the projected results of each line of business of the Credit Parties and their Subsidiaries, and budgeted consolidated and consolidating statements of income, and sources and uses of cash and balance sheets for Credit Parties and their Subsidiaries) of Credit Parties and their Subsidiaries in reasonable detail reasonably satisfactory to the Agent for each fiscal month and the four fiscal quarters of the immediately succeeding fiscal year and, with appropriate discussion, the principal assumptions upon which such budget is based.

 

(f)            Notice of Default or Litigation; Collateral.  Promptly, and in any event within three (3) Business Days after any Responsible Officer of any Credit Party obtains knowledge thereof, notice of (i) the occurrence of any event which constitutes a Default or an Event of Default or any other event which could reasonably be expected to have a Material Adverse Effect, which notice shall specify the nature thereof, the period of existence thereof and what action Credit Parties propose to take with respect thereto, (ii) the commencement of, or threat of, or any significant development in, any litigation, labor controversy, arbitration or governmental proceeding pending against any Credit Party or any Subsidiary which, if adversely determined, could reasonably be expected to have a Material Adverse Effect or (iii) other than a

 

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Permitted Lien, any claim or Lien securing a claim, in excess of $250,000 is asserted or made against any of the Collateral or any loss, damage or destruction of Collateral in the amount of $250,000 or more, whether or not covered by insurance.

 

(g)           Management Letters.  Promptly, and in any event within five (5) Business Days after any Credit Party’s receipt thereof, a copy of each report or any “management letter” submitted to any Credit Party or any Subsidiary by its certified public accountants and the management’s responses thereto.

 

(h)           Environmental Matters.  Promptly upon, and in any event within five (5) Business Days after any officer of any Credit Party obtains knowledge thereof, notice of one or more of the following environmental matters which individually, or in the aggregate, may reasonably be expected to have a Material Adverse Effect:  (i) any notice of Environmental Claim against any Credit Party or any Subsidiary or any real property owned or operated by any Credit Party or any Subsidiary; (ii) any condition or occurrence on or arising from any real property owned or operated by any Credit Party or any Subsidiary that (a) results in noncompliance by any Credit Party or any Subsidiary with any applicable Environmental Law or (b) could reasonably be expected to form the basis of an Environmental Claim against any Credit Party or any Subsidiary or any such real property; (iii) any condition or occurrence on any real property owned or operated by any Credit Party or any Subsidiary that could reasonably be expected to cause such real property to be subject to any restrictions on the ownership, occupancy, use or transferability by any Credit Party or any Subsidiary of such real property under any Environmental Law; and (iv) any removal or remedial actions to be taken in response to the actual or alleged presence of any Hazardous Material on any real property owned or operated by any Credit Party or any Subsidiary as required by any Environmental Law or any Governmental Authority.  All such notices shall describe in reasonable detail the nature of the claim, investigation, condition, occurrence or removal or remedial action and such Credit Party’s or such Subsidiary’s response thereto.  In addition, each of the Credit Parties agrees to provide to Agent and the Lenders copies of all material written communications by any Credit Party or any Subsidiary with any Person or Governmental Authority relating to any of the matters set forth in clauses (i)-(iv) above, and such detailed reports relating to any of the matters set forth in clauses (i)-(iv) above as may reasonably be requested by the Agent or the Required Lenders.

 

(i)            Public Filings.  Promptly after the same is publically available, one copy of each financial statement, report, notice or proxy statement sent or made available by any Credit Party or Subsidiary to its stockholders generally, and within the time period specified in the SEC’s rules and regulations, annual reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K (or any successor or comparable form) and other information required to be filed with or furnished to the SEC, in each case containing the information required to be contained therein (or required in such successor or comparable form) and that are required to be filed with or furnished to the SEC by any Credit Party or Subsidiary.  Contemporaneously with the delivery by the Credit Parties of the Quarterly Reports on Form 10-Q and the Annual Reports on Form 10-K, the Credit Parties shall deliver to Agent and each Lender a Compliance Certificate that includes the requirements set forth in Section 6.1(d)(i) (A)  & (B). So long as Holdings is required to file periodic reports under Section 13(a) or Section 15(d) of the Exchange Act, Holdings may satisfy its obligations to deliver the financial statements described in Sections 6.1(b) and 6.1(c) by electronic mail or internet posting as agreed

 

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between Agent and Holdings. Each of the Credit Parties agrees to provide to Agent and the Lenders all material notifications received from the SEC pursuant to the Exchange Act.  Holdings shall include Agent and the Lenders on its standard distribution lists for all press releases made available generally to the public concerning material developments in the business of Holdings or any Credit Party.

 

(j)            Third Party Collateral Locations Reporting and Collateral Access Language. As set forth in Section 4.3 of the Security Agreement, in connection with Inventory or Equipment comprised of boats and trailers held by third parties in connection with promotional boat arrangements or endorsement arrangements or otherwise, such Grantor shall take the following actions:  (i) provide to Agent a written report, as of each fiscal quarter (to be delivered within thirty (30) days after the end of each fiscal quarter of the Credit Parties together with the other quarterly reports required by Section 6.1(b) of this Agreement) that describes in detail all Inventory or Equipment comprised of boats and/or trailers that are held by third parties pursuant to such promotional arrangements or endorsement arrangements, including, without limitation, the name of such person or entity in possession thereof, the common address and location, and the boat model and serial numbers for such boat and trailer, the value of such boat and trailer, whether or not such arrangement is evidence by a written agreement, and a description of the date and term of such agreement if applicable, with such report otherwise in form and substance reasonably satisfactory to Agent; and  (ii) use commercially reasonable efforts to cause the third party in possession thereof to enter into a Collateral Access Agreement with Agent or, to the extent that such Grantor enters into a promotional boat agreement, endorsement agreement or similar agreement with such party, cause collateral access language, substantially similar to that set forth in Schedule 4.3 to the Security Agreement, to be included in such agreement.

 

(k)           Other Information.  From time to time, such other information or documents (financial or otherwise) as the Agent or any Lender may reasonably request.

 

Section 6.2            Inspections; Books and Records.  Each of the Credit Parties will, and will cause each Subsidiary to, (a) keep proper books of record and account in which full, true and correct entries are made of all material dealings and transactions in relation to its business and activities and (b) permit officers, representatives and agents of the Agent or any Lender, to visit and inspect any Property of any Credit Party or any Subsidiary, and to examine the books of account of such Credit Party or such Subsidiary and discuss the affairs, finances and accounts of such Credit Party or such Subsidiary with its and their officers and independent accountants, all at such reasonable times as the Agent or any Lender may request; provided that, (i) prior written notice of any such visit, inspection or examination shall be provided to Borrower Representative, (ii) such visit, inspection or examination shall be performed at reasonable times to be agreed to by Borrower Representative, which agreement will not be unreasonably withheld, (iii) the Credit Parties shall pay the reasonable out-of-pocket costs and expenses of such visit, inspection or examination, and (iv) so long as no Event of Default exists, the Agent and the Lenders shall only be entitled to one (1) such visit, inspection or examination per fiscal year of Borrowers.

 

Section 6.3            Maintenance of Property, Insurance, Environmental Matters, etc.

 

(a)           Each of the Credit Parties will, and will cause each of its Subsidiaries to, keep its property, plant and equipment in good repair, working order and condition, normal wear

 

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and tear excepted, and shall from time to time make all needful and proper repairs, renewals, replacements, extensions, additions, betterments and improvements thereto so that at all times such property, plant and equipment are reasonably preserved and maintained.

 

(b)           (i)  Each of the Credit Parties will, and will cause each of its Subsidiaries to, maintain, with good and responsible insurance companies, such insurance coverage as may be required by any law or governmental regulation or court decree or order applicable to it and such other insurance, flood insurance required by all applicable rules and regulations promulgated pursuant to the federal flood insurance laws, and to such extent and against such hazards and liabilities, as is customarily maintained by companies similarly situated (including, without limitation, business interruption, employers’ and public liability risks), in such amounts and with such deductibles as is customarily maintained by companies similarly situated and reasonably acceptable to the Agent; and, upon request of the Agent or any Lender, furnish to the Agent or such Lender original or electronic copies of policies evidencing such insurance, and a certificate, on the Accord form 23,27, or 28 or otherwise requested by Agent, setting forth in reasonable detail the nature and extent of all insurance maintained by such Credit Party or such Subsidiary and evidencing the forgoing coverage effective as of the Third Restatement Closing Date.  The Credit Parties shall cause each issuer of an insurance policy to provide the Agent with a copy of endorsements (A) showing the Agent as lender’s loss payable with respect to each policy of property or casualty insurance and naming the Agent as an additional insured with respect to each policy of liability insurance and business interruption insurance, (B) providing that thirty (30) days’ notice will be given to the Agent prior to any cancellation of, material reduction or change in coverage provided by or other material modification to such policy for any statutorily permitted reason other than non-payment of premium, and 10 days’ notice for cancellation due to non-payment of premium, and (C) reasonably acceptable in all other respects to the Agent.  (ii) UNLESS THE CREDIT PARTIES PROVIDE THE AGENT WITH EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY THIS AGREEMENT, THE AGENT MAY PURCHASE INSURANCE AT BORROWER’S EXPENSE TO PROTECT THE AGENT’S AND THE LENDERS’ INTERESTS IN THE COLLATERAL.  THIS INSURANCE MAY, BUT NEED NOT, PROTECT ANY CREDIT PARTY’S OR SUBSIDIARY’S INTERESTS.  THE COVERAGE THAT THE AGENT PURCHASES MAY NOT PAY ANY CLAIM THAT IS MADE AGAINST SUCH CREDIT PARTY OR SUCH SUBSIDIARY IN CONNECTION WITH THE COLLATERAL.  BORROWER MAY LATER CANCEL ANY INSURANCE PURCHASED BY THE AGENT, BUT ONLY AFTER PROVIDING THE AGENT WITH EVIDENCE THAT THE CREDIT PARTIES HAVE OBTAINED INSURANCE AS REQUIRED BY THIS AGREEMENT.  IF THE AGENT PURCHASES INSURANCE FOR THE COLLATERAL, BORROWER WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING INTEREST AND ANY OTHER CHARGES THAT MAY BE IMPOSED WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR EXPIRATION OF THE INSURANCE.  THE COSTS OF THE INSURANCE MAY BE ADDED TO THE PRINCIPAL AMOUNT OF THE LOANS OWING HEREUNDER.  THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF THE INSURANCE ANY SUCH CREDIT PARTY AND ANY SUCH SUBSIDIARY MAY BE ABLE TO OBTAIN ON THEIR OWN.

 

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(c)           Without limiting the generality of Section 6.3(a), each of the Credit Parties and their Subsidiaries: (i) shall comply with, and maintain all real property in compliance with, any applicable Environmental Laws, except to the extent that the aggregate effect of all compliance failures could not reasonably be expected to have a Material Adverse Effect; (ii) shall obtain and maintain in full force and effect all governmental approvals required for its operations at or on its properties by any applicable Environmental Laws except to the extent any failure to obtain or maintain such approvals could not reasonably be expected to have a Material Adverse Effect; (iii) shall cure as soon as reasonably practicable any violation of applicable Environmental Laws with respect to any of its properties which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect; (iv) shall not, and shall not permit any other Person to, own or operate on any of its owned or operated real property, including leaseholds, any landfill or dump site which is used for the ultimate disposal of solid waste; (v) shall not, and shall not permit any other Person to, own or operate any or hazardous waste treatment, storage or disposal facility as defined pursuant to the RCRA, or any comparable state law, at any real property owned or operated by the Credit Parties or its Subsidiaries, except when undertaken in material compliance with all applicable Environmental Laws; and (vi) shall not use, generate, treat, store, Release or dispose of Hazardous Materials at or on any of the real property except in the ordinary course of its business and in material compliance with all Environmental Laws.  With respect to any material Release of Hazardous Materials occurring at any real property owned or operated by the Credit Parties or its Subsidiaries, including leaseholds, each of the Credit Parties and their Subsidiaries shall conduct any necessary or required investigation, study, sampling and testing, and undertake any cleanup, removal, remedial or other response action necessary to remove, cleanup or abate any material quantity of Hazardous Materials released at or on any of its properties, which in each case is required by any applicable Environmental Law.

 

Section 6.4            Preservation of Existence.  Each of the Credit Parties will, and will cause each Subsidiary to, (a) do or cause to be done all things necessary to (i) preserve, renew and keep in full force and effect its legal existence, the material rights, qualifications, licenses, permits, franchises, governmental authorizations, intellectual property rights, licenses and permits material to the conduct of its business, and (ii) maintain all requisite authority to conduct its business in each jurisdiction in which its business is conducted, except where the failure to maintain such authority could not reasonably be expected to have a Material Adverse Effect, provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under Section 6.13, and (b) carry on and conduct its business in substantially the same fields of enterprise as it is conducted as of the Third Restatement Closing Date and reasonable extensions thereof.

 

Section 6.5            Compliance with Laws.  Each of the Credit Parties shall, and shall cause each Subsidiary to, comply in all respects with the requirements of all laws, rules, regulations, ordinances and orders applicable to its property or business operations of any Governmental Authority, where any such non-compliance, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect or result in a Lien upon any of its Property.

 

Section 6.6            ERISA.  Each of the Credit Parties shall, and shall cause each Subsidiary to, promptly notify the Agent and each Lender of the occurrence of any ERISA Event that could reasonably be expected to have a Material Adverse Effect.

 

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Section 6.7            Payment of Taxes and Other Obligations.  Each of the Credit Parties will, and will cause each of its Subsidiaries to, pay and discharge as the same shall become due and payable all of its obligations and liabilities, including (a) all federal income Taxes and other material Taxes, assessments, fees and other governmental charges imposed upon it or any of its Property, before becoming delinquent and before any penalties accrue thereon, unless and to the extent that (i) the same are being contested in good faith and by proper proceedings, and (ii) the Credit Party or Subsidiary, as applicable, has established appropriate reserves in accordance with GAAP, (b) all lawful claims which, if unpaid, would by law become a Lien upon its property; and (c) all Indebtedness, as and when due and payable, but subject to any subordination provisions contained in any instrument or agreement evidencing such Indebtedness.

 

Section 6.8            Transactions with Affiliates.  No Credit Party shall, nor shall it permit any Subsidiary to, enter into any contract, agreement or business arrangement with any of its Affiliates on terms and conditions which are less favorable to such Credit Party or such Subsidiary than would be usual and customary in similar contracts, agreements or business arrangements between Persons not affiliated with each other, except (a) transactions between or among any Borrower and any Subsidiary that is a Credit Party not involving any other Affiliate, (b) any investment permitted by Section 6.14(e), (c) any Restricted Payment permitted by Section 6.15, (d) loans or advances to employees permitted under Section 6.14, (e) the payment of reasonable fees and expense reimbursements to directors of any Borrower or any Subsidiary who are not employees of any Borrower or any Subsidiary, and compensation and employee benefit arrangements paid to, and indemnities provided for the benefit of, directors, officers or employees of any Borrower or its Subsidiaries in the ordinary course of business, and (f) any issuances of securities or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment agreements, stock options and stock ownership plans approved by any Borrower’s board of directors. Any Credit Party may also pay indemnities and expense reimbursements it is required to pay under the Management Fee Agreement provided that no Default or Event of Default then exists or would result after taking into effect any such payment.

 

Section 6.9            Sale and Leaseback Transactions.  No Credit Party will, nor will it permit any Subsidiary to, enter into any arrangement, directly or indirectly, whereby it shall sell or transfer any property, real or personal, used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such property or other property that it intends to use for substantially the same purpose or purposes as the property sold or transferred, except for any such sale of any fixed or capital assets by Credit Parties or any such Subsidiary that is made for cash consideration in an amount not less than the fair value of such fixed or capital asset and is consummated within 90 days after such Credit Party or such Subsidiary acquires or completes the construction of such fixed or capital asset

 

Section 6.10          Interest Rate Protection.  (a) No Credit Party will, nor will it permit any Subsidiary to, enter into any Rate Management Agreement, except (a) Rate Management Agreements entered into to hedge or mitigate risks to which the Credit Party or Subsidiary has actual exposure (other than those in respect of Equity Interests of Borrower or any of its Subsidiaries), and (b) Rate Management Agreements entered into in order to effectively cap, collar or exchange interest rates (from fixed to floating rates, from one floating rate to another

 

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floating rate or otherwise) with respect to any interest-bearing liability or investment of the Credit Party or any Subsidiary.

 

(b)           Within ninety (90) days after the Third Restatement Closing Date, Borrowers shall hedge their interest rate risk on 50% of the principal amount of the Term Loan for a period of thirty-six (36) months (collectively, the “Notional Amount”) through the use of one or more interest Rate Management Agreements with one or more financial institutions acceptable to Agent to effectively limit the amount of interest that Borrowers must pay on the Notional Amount to not more than a rate reasonably acceptable to the Agent.

 

Section 6.11          Indebtedness.  No Credit Party shall, nor shall it permit any Subsidiary to, contract, create, incur, assume or suffer to exist any Indebtedness, including, without limitation, any guaranty with respect to the Indebtedness of any Person, except:

 

(a)           the Obligations, including, without limitation, Rate Management Obligations and Banking Services Obligations, of the Credit Parties and their Subsidiaries owing to the Agent and the Lenders (and their Affiliates);

 

(b)           Indebtedness existing on the date hereof and set forth in Schedule 6.11 and any Permitted Refinancing Indebtedness with respect thereto;

 

(c)           purchase money Indebtedness and Capitalized Lease Obligations of Borrowers and their Subsidiaries in an amount not to exceed $2,000,000 in the aggregate at any one time outstanding and any Permitted Refinancing Indebtedness with respect thereto;

 

(d)           Indebtedness of any Borrower to any Subsidiary that is a Borrower and of any Subsidiary that is a Borrower to any Borrower, provided that any such Indebtedness shall be unsecured and subordinated to the Obligations pursuant to Section 10.22 hereof;

 

(e)           Contingent Obligations of any Credit Party of Indebtedness of any other Credit Party, provided that (i) any Indebtedness so guaranteed is permitted by this Section 6.11, and (ii) Contingent Obligations permitted under this clause (e) shall be subordinated to the Obligations of the applicable Subsidiary on the same terms as the Indebtedness so guaranteed is subordinated to the Obligations;

 

(f)            [Reserved];

 

(g)           to the extent incurred in connection with, and actually used to consummate, a Permitted Acquisition, unsecured Indebtedness (including seller debt and earnouts) subordinated in right of payment and having payment restrictions acceptable to Agent, pursuant to documentation reasonably satisfactory to the Agent, all at the time it is incurred;

 

(h)           unsecured Indebtedness of Borrowers and their Subsidiaries not otherwise permitted by this Section in an amount not to exceed $3,000,000 in the aggregate at any one time outstanding (including, without limitation, Floorplan First Loss Guaranty Obligations) and any Permitted Refinancing Indebtedness with respect thereto;

 

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(i)            contingent obligations arising from agreements of any Credit Party for customary indemnification obligations in favor of sellers and any adjustment of purchase price or acquisition price or similar obligations (excluding earn-outs) incurred in connection with Permitted Acquisitions; and

 

(j)            Floorplan Repurchase Obligations.

 

Section 6.12          Liens.  No Credit Party shall, nor shall it permit any Subsidiary to, create, incur or suffer to exist any Lien on any of its Property; provided that the foregoing shall not prevent the following (the Liens described below, the “Permitted Liens”):

 

(a)           inchoate Liens for the payment of Taxes which are not yet due and payable or the payment of which is not required by Section 6.7;

 

(b)           Liens arising by statute or with respect to bonds obtained in connection with worker’s compensation, unemployment insurance, old-age benefits, social security obligations, assessments, statutory obligations or other similar charges (other than Liens arising under ERISA), good-faith cash deposits or bonds obtained in connection with tenders, contracts or leases to which any Borrower or any Subsidiary is a party or other cash deposits required to be made in the ordinary course of business, provided in each case that the obligation is not for borrowed money and that the obligation secured is not overdue or, if overdue, is being contested in good faith by appropriate proceedings which prevent enforcement of the Lien with respect to such matter under contest and adequate reserves have been established therefor;

 

(c)           mechanics’, workmen’s, materialmen’s, landlords’, carriers’, warehousemen’s, processors’, suppliers’ or other similar Liens arising in the ordinary course of business with respect to obligations which are not delinquent for more than 60 days or which are being contested in good faith by appropriate proceedings which prevent enforcement of the matter under contest;

 

(d)           Liens created by or pursuant to this Agreement and the Collateral Documents;

 

(e)           Liens on property of any Borrower or any Subsidiary created solely for the purpose of securing indebtedness permitted by Section 6.11(c) hereof, representing or incurred to finance the purchase price of Property (including replacement Liens on the Property currently subject to such Liens), provided that no such Lien shall extend to or cover other Property of any Borrower or such Subsidiary other than the respective Property so acquired and the proceeds thereof, and the principal amount of indebtedness secured by any such Lien shall at no time exceed the purchase price of such Property (including taxes, shipping and installation charges), as reduced by repayments of principal thereon;

 

(f)            zoning restrictions, easements, rights-of-way, licenses, covenants and other similar encumbrances against real Property incurred in the ordinary course of business which, in the aggregate, are not substantial in amount and which do not materially detract from the value of the Property subject thereto or materially interfere with the ordinary conduct of the business of any Credit Party or any Subsidiary;

 

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(g)                                  “bankers” liens arising by operation of law in respect of any deposit accounts of any Credit Party or any Subsidiary that are maintained in accordance with the terms of this Agreement;

 

(h)                                 Liens arising out of the existence or the bonding of any judgments, writs or similar processes not giving rise to an Event of Default under Section 7.1(g); provided that the execution or other enforcement of such Liens is effectively stayed and the claims secured thereby are the subject of a contest maintained in good faith by appropriate proceedings diligently conducted and with respect to which such reserve or other appropriate provision, if any, as shall be required in conformity with GAAP shall have been made;

 

(i)                                     any Lien on any property or asset of any Borrower or any Subsidiary existing on the date hereof and set forth in Schedule 6.12; (including replacement Liens on the property or asset currently subject to such Lien); provided that (i) such Lien shall not apply to any other Property of any Borrower or Subsidiary and (ii) such Lien shall secure only those obligations which it secures on the date hereof;

 

(j)                                    Liens arising from precautionary UCC financing statements filed under any operating lease permitted hereunder;

 

(k)                                 Liens of counterparties attaching solely to cash earnest money deposits made by any Credit Party or any of their respective Subsidiaries in connection with any letter of intent or purchase agreement entered into with respect to Capital Expenditures or Acquisitions otherwise permitted hereunder;

 

(l)                                     [Reserved]; and

 

(m)                             Liens not described above securing Indebtedness (other than Indebtedness for borrowed money) of any Credit Party or any Subsidiary in an aggregate outstanding amount at any time not to exceed $250,000.

 

Section 6.13                             Consolidation, Merger, Sale of Assets, etc.  No Credit Party shall, nor shall it permit any Subsidiary to, wind up, liquidate or dissolve its affairs or agree to any merger or consolidation, or convey, sell, lease or otherwise dispose of all or any part of its property, including any disposition as part of any sale-leaseback transactions, except that this Section shall not prevent:

 

(a)                                 the sale and lease of inventory in the ordinary course of business;

 

(b)                                 the sale, transfer or other disposition of any tangible personal property that, in the reasonable judgment of the Credit Parties and their Subsidiaries, has become uneconomic, obsolete or worn out;

 

(c)                                  sales, transfers and dispositions of assets to a Borrower or any other Credit Party (other than Holdings);

 

(d)                                 any Borrower or any Subsidiary of a Borrower may merge into a Borrower in a transaction in which such Borrower is the surviving corporation, and (ii) any Subsidiary

 

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(other than a Credit Party) may merge into any other Subsidiary (other than a Credit Party), in each case with at least twenty (20) Business Days prior written notice to Agent;

 

(e)                                  the disposition or sale of Cash Equivalents in consideration for cash;

 

(f)                                   dispositions resulting from any casualty or other insured damage to, or any taking under power of eminent domain or by condemnation or similar proceeding of, any property or asset of any Borrower or any Subsidiary;

 

(g)                                  sales which are permitted to occur under Section 6.9 hereof;

 

(h)                                 the sale, transfer, lease, or other disposition of Property not otherwise permitted hereunder (excluding any disposition of Property as part of a sale and leaseback transaction and any Equity Interests of any Subsidiary and Accounts) of any Credit Party or any Subsidiary aggregating for Credit Parties and their Subsidiaries, so long as no Event of Default exists or would occur as a result thereof, with an aggregate net book value of  not more than $500,000 during any fiscal year of the Credit Parties;

 

(i)                                     the sale, transfer or other disposition of accounts receivable constituting bad debts in connection with the compromise, settlement or collection thereof in the ordinary course of business (and not as part of a bulk sale or receivables financing);

 

(j)                                    to the extent constituting dispositions, Permitted Liens;

 

(k)                                 leases, subleases, licenses and sublicenses of real or personal property entered into by the Credit Parties or their Subsidiaries in the ordinary course of business at arm’s length and on market terms;

 

(l)                                     the forgiveness of loans made in accordance with Section 6.14(m);

 

(m)                             the abandonment of intellectual property which is no longer material to the business of the Credit Parties;

 

(n)                                 Permitted Acquisitions and mergers or consolidations in connection with a Permitted Acquisition; and

 

(o)                                 (i) any issuance of Equity Interests issued in connection with the exercise of stock options, Equity Interests issued as compensation or Equity Interests issued to the seller of an Acquired Business in connection with a Permitted Acquisition in accordance with the terms hereof, (ii) any Restricted Payment permitted by Section 6.15, (iii) any issuance of Equity Interests permitted by Section 6.8, and (iv) any issuance of Equity Interests permitted by Section 7.7.

 

Notwithstanding the foregoing, (i) in order to be permitted by this Section 6.13, all sales, transfers, leases and other dispositions permitted hereby (other than those permitted by paragraphs (c) and (f) above) shall be made for fair value and for at least 75% cash consideration, and (ii) no Disposition of Intellectual Property that is material to the business and operations of Holdings, the Borrower or its Subsidiaries shall be permitted. So long as no Default

 

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or Event of Default has occurred and is continuing or would arise as a result thereof, upon the written request of Borrower Representative, the Agent shall release its Lien on any Property sold pursuant to the foregoing provisions.

 

Section 6.14                             Advances, Investments, Acquisitions and Loans.  No Credit Party shall, nor shall it permit any Subsidiary to, directly or indirectly, make loans or advances to or make, retain or have outstanding any investments (whether through purchase of all or substantially all of the assets or Equity Interests or obligations or otherwise) in, any Person or enter into any partnerships or joint ventures, or purchase or own a futures contract or otherwise become liable for the purchase or sale of currency or other commodities at a future date in the nature of a futures contract, except that this Section shall not prevent:

 

(a)                                 receivables created in the ordinary course of business and payable or dischargeable in accordance with customary trade terms;

 

(b)                                 investments in Cash Equivalents subject to Control Agreements (subject to the limitations referred to in Section 4 hereof);

 

(c)                                  investments (including debt obligations) received in connection with the bankruptcy or reorganization of suppliers and customers and in settlement of delinquent obligations of, and other disputes with, customers and suppliers arising in the ordinary course of business;

 

(d)                                 investments in existence on the date hereof and described in Schedule 6.14;

 

(e)                                  Investments by the Credit Parties and their Subsidiaries in the Equity Interests of their Subsidiaries;

 

(f)                                   loans or advances made by any Borrower to any Subsidiary that is a Borrower and made by any Subsidiary that is a Borrower to any Borrower, provided that any such loans and advances made by a Credit Party shall be evidenced by a promissory note pledged pursuant to the Security Agreement;

 

(g)                                  Contingent Obligations permitted by Section 6.11;

 

(h)                                 loans or advances made by a Credit Party (other than Holdings) to its employees on an arms-length basis in the ordinary course of business consistent with past practices for travel and entertainment expenses, relocation costs and similar purposes up to a maximum of $50,000 to any employee and up to a maximum of $100,000 in the aggregate at any one time outstanding;

 

(i)                                     investments in the form of Rate Management Agreements permitted by Section 6.11;

 

(j)                                    investments of any Person existing at the time such Person becomes a Subsidiary of any Borrower or merges with any Borrower or any of the Subsidiaries (including

 

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in connection with a Permitted Acquisition) so long as such investments were not made in contemplation of such Person becoming a Subsidiary or of such merger;

 

(k)                                 non-cash investments received in connection with the dispositions of assets permitted by Section 6.13;

 

(l)                                     investments constituting deposits described in clause (b) of Section 6.12;

 

(m)                             Permitted Acquisitions and investments in connection with a Permitted Acquisition;

 

(n)                                 Investments by the Credit Parties in Parts in an aggregate amount not to exceed in any fiscal year (i) $250,000 plus (ii) the annual aggregate amount that Parts repatriates to the Credit Parties;

 

(o)                                 investments permitted pursuant to Section 6.13(o) hereof; and

 

(p)                                 other investments, loans and advances in addition to those otherwise permitted by this Section in an amount not to exceed $500,000 in the aggregate at any one time outstanding.

 

Section 6.15                             Restricted Payments.  No Credit Party shall, nor shall it permit any Subsidiary to, make any Restricted Payment or incur any obligation to do so, except that:

 

(a)                                 Any Wholly-Owned Subsidiary of any Borrower may make dividends or distributions to such Borrower;

 

(b)                                 each Credit Party and each Subsidiary may declare and make dividend payments or other distributions payable solely in the common Equity Interests of the Person making such dividend or distribution;

 

(c)                                  Borrowers may make to Holdings distributions to permit Holdings to pay reasonable and customary corporate and operating expenses and franchise fees or similar taxes and fees required to maintain its corporate existence;

 

(d)                                 [Reserved];

 

(e)                                  Any Credit Party may make Permitted Tax Distributions; and

 

(f)                                   [Reserved].

 

(g)                                  any Credit Party may make Restricted Payments in an aggregate amount not to exceed $20,000,000 during the period commencing on the Third Restatement Closing Date and ending on the last day of the term of this Agreement in order to repurchase any class of Equity Interest of any Credit Party or any of its Subsidiaries pursuant to a share repurchase program or other share repurchase authorized by the Board of Directors of any of the Credit Parties, including the repurchase of Equity Interests from certain members of senior management of the Credit Party; provided that (i) no

 

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Default as a result of non-payment or Event of Default exists as of the date of such share repurchase, and (ii) the Credit Party delivers to Agent written notice of such repurchase, including the number of shares and aggregate purchase price for such shares, not later than within one week of such share repurchase.

 

Section 6.16                             Limitation on Restrictions.  No Credit Party shall, nor shall it permit any Subsidiary to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any restriction on the ability of any such Subsidiary to (a) pay dividends or make any other distributions on its capital stock or other Equity Interests owned by any Credit Party or any other Subsidiary, (b) pay or repay any Indebtedness owed to any Credit Party or any other Subsidiary, (c) make loans or advances to any Credit Party or any other Subsidiary, (d) transfer any of its Property to any Credit Party or any other Subsidiary, (e) encumber or pledge any of its assets to or for the benefit of the Agent or (f) guaranty the Obligations, including, without limitation, Rate Management Obligations and Banking Services Obligations; provided that (i) the foregoing shall not apply to restrictions and conditions imposed by law or by any Loan Document, (ii) the foregoing shall not apply to restrictions and conditions existing on the date hereof identified on Schedule 6.16 (but shall apply to any extension or renewal of, or any amendment or modification expanding the scope of, any such restriction or condition), (iii) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending such sale, provided such restrictions and conditions apply only to the Subsidiary that is to be sold and such sale is permitted hereunder, (iv) clauses (d) and (e) of the foregoing shall not apply to restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted by this Agreement if such restrictions or conditions apply only to the Property securing such Indebtedness and (v) clauses (d) and (e) of the foregoing shall not apply to customary provisions in leases licenses and other contracts customarily restricting the assignment thereof and restrictions on licenses, sublicenses and assignments of intellectual property.

 

Section 6.17                             Limitation on the Creation of Subsidiaries.  Notwithstanding anything to the contrary contained in this Agreement, no Credit Party shall, nor shall it permit any Subsidiary to, establish or create after the Third Restatement Closing Date any Subsidiary; provided that any Borrower and its Wholly-Owned Subsidiaries shall be permitted to establish or create Wholly-Owned Subsidiaries so long as the Credit Parties and their Subsidiaries timely comply with the requirements of Section 4.4 hereof.

 

Section 6.18                             Material Contracts; Other Agreements.  Each Credit Party shall perform and observe in all material respects all the terms and provisions of each Material Contract to be performed or observed by it, maintain each such Material Contract in full force and effect (unless such Material Contract expires by its terms and is terminated in the ordinary course of business), enforce each such Material Contract in accordance with its terms, take all such action to such end as may be from time to time reasonably requested by the Agent and, upon request of the Agent, make to each other party to each such Material Contract such demands and requests for information and reports or for action as any Credit Party or any of its Subsidiaries is entitled to make under such Material Contract, and cause each of its Subsidiaries to do so, except, in any case, where the failure to do so, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. The Credit Parties shall provide prompt written

 

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notice to Agent of any termination, by the floorplan financing party, of any agreement regarding floor planning financing arrangements, that includes Floorplan Repurchase Obligations.

 

Section 6.19                             OFAC; Anti-Corruption Laws; Sanctions .  Each Credit Party shall conduct  its, and cause its Subsidiaries to conduct their, business in compliance in all material respects with the FCPA, and other similar and applicable anti-corruption laws in other applicable jurisdictions and institute and maintain policies and procedures designed to promote and achieve compliance with such laws.  Each Credit Party will not, and will not permit any Subsidiary to, use any Loan or the proceeds of any Loan, or lend, contribute or otherwise make available any Loan or the proceeds of any Loan to any Sanctioned Person, to fund any activities of or business with any Sanctioned Person or any Sanctioned Entity, or in any other manner that will result in a violation by any party hereto of OFAC Sanctions. Each Credit Party will not, and will not permit any Subsidiary to, use any Loan or the proceeds therefrom for any purpose that would violate the FCPA or any similar anti-corruption laws in any other applicable jurisdiction. No Credit Party shall, nor shall it permit any Subsidiary to, (i) become a Person whose property or interests in property are blocked or subject to blocking pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking Party and Prohibiting Transactions With Persons Who Commit, Threaten to Commit or Support Terrorism (66 Fed. Reg. 49079(2001)), (ii) engage in any dealings or transactions prohibited by Section 2 of such executive order, or be otherwise associated with any such Person in any manner violative of Section 2, and (iii) become a Person on the list of Specially Designated Nationals and Blocked Persons or subject to the limitations or prohibitions under any other U.S. Department of Treasury’s Office of Foreign Assets Control regulation or executive order.

 

Section 6.20                             Name, Fiscal Year Accounting and Organizational Documents.  No Credit Party shall, nor shall it permit any Subsidiary to, without at least twenty (20) Business Days prior written notice to agent (a) change, from that as of the Third Restatement Closing Date, its name, its fiscal year, or its method of accounting, except as required by GAAP, or (b) amend or modify any of the terms or provisions of its certificate incorporation or by-laws or any other organizational document in a manner that would be materially adverse to Agent or any Lender.

 

Section 6.21                             Deposit Accounts and Cash Management Services.  Each of Nautic, NS Transport and Navigator (and any other Credit Party that has not done so in connection with the Existing Credit Agreement) shall, and shall cause each of its Subsidiaries (other than Parts) to, within sixty (60) days of the Third Restatement Closing Date, to the extent not previously completed, maintain each of its principal domestic deposit accounts and general checking/controlled disbursement accounts with a Lender, and Fifth Third shall be the principal depository and principal bank of account in which substantially all funds of the Credit Parties and their Subsidiaries are deposited, except for Excluded Accounts and to the extent otherwise agreed in writing by Fifth Third.  Each of the Credit Parties shall, and shall cause each of its Subsidiaries to, shall enter into agreements with Fifth Third for all of its needs in connection with cash management services and shall grant to Fifth Third an opportunity to provide any business banking services required by any of them, including payroll and employee benefit plan services. Deposit account control agreements shall be required for any such deposit accounts which, with the prior written consent of Fifth Third, are maintained at financial institutions other than Fifth Third; provided, that notwithstanding anything to the contrary in this Section 6.21, Parts shall not be required to (A) move to Fifth Third, or maintain at any time with Fifth Third,

 

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any deposit accounts, general checking/ controlled disbursement accounts or any other accounts of any kind or nature or (B) enter into any deposit account control agreement with respect to its accounts.

 

Section 6.22                             Financial Covenants.

 

(a)                                 Total Net Leverage Ratio.  The Credit Parties shall not, as of the last day of each fiscal quarter of Holdings and its Subsidiaries during the periods specified below, permit the Total Net Leverage Ratio to be greater than:

 

	
Fiscal Quarter Period Ending
    	
 
    	
The Total Net Leverage Ratio
   Shall Not Be Greater Than:
    
	
12/31/2017
   through
   9/30/2018
    	
 
    	
3.25 to 1.0
    
	
9/30/2018
   through
   9/30/2019
    	
 
    	
3.00 to 1.0
    
	
9/30/2019
   through
   9/30/2020
    	
 
    	
2.75 to 1.0
    
	
9/30/2020
    and each Fiscal Quarter Ending thereafter through   the Maturity Date
    	
 
    	
2.50 to 1.0
    

 

(b)                                 Fixed Charge Coverage Ratio.  As of the last day of each fiscal quarter of the Credit Parties and their Subsidiaries ending during the periods specified below, the Credit Parties shall maintain a Fixed Charge Coverage Ratio of not less than:

 

	
Fiscal Quarter Ending
    	
 
    	
Fixed Charge Coverage Ratio
   shall not be less than:
    
	
March 29, 2015 and the last day of each fiscal   quarter thereafter
    	
 
    	
1.15 to 1.0
    

 

Section 6.23                             Holdings; Limitations.  Each of Holdings and Borrowers hereby agrees that, until such time as all of the Obligations (other than contingent indemnification obligations for which no claim has been made) have been paid or performed in full and all Commitments of all Lenders shall have terminated and no L/C Obligations or other Obligations are outstanding or have been Cash Collateralized, as set forth in this Agreement:

 

(a)                                 Holdings agrees that its sole purpose shall be to hold a Controlling percentage of the Equity Interests in MasterCraft, Sales Administration, Parts and Hydra and engage in activities ancillary thereto as permitted by this Agreement.  Without limiting the foregoing, Holdings agrees that it shall not (i) engage in any business or investment activity other than owning the Equity Interests in MasterCraft, Sales Administration, Parts and Hydra and

 

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engaging in activities ancillary thereto expressly permitted under this Agreement; (ii) become obligated for any Indebtedness, whether directly or indirectly, (iii) permit any Lien to exist on any of its assets except for Permitted Liens, to the extent applicable; or (iv) consolidate with or merge with or into any other Person or acquire substantially all of the assets of any other Person, or sell any of its assets, whether in one or a series of transactions.

 

(b)                                 Holdings owns, as of the Third Restatement Closing Date, all of the issued and outstanding voting Equity Interests of MasterCraft, Sales Administration, Nautic, Parts and Hydra.  Holdings agrees that it will not, by act or omission:  (i) sell, assign (by operation of law or otherwise) or otherwise dispose of, or grant any option with respect to, any of its Equity Interests in MasterCraft, Sales Administration, Parts or Hydra; or (ii) create or permit to exist any Lien (other than Permitted Liens) upon or with respect to any of such Equity Interests, except for applicable transfer restrictions set forth in its governing documents or applicable law.

 

Section 6.24                             Foreign Subsidiary Limitations.  Each of Parts and Borrowers hereby agrees that, until such time as all of the Obligations (other than contingent indemnification obligations for which no claim has been made) have been paid or performed in full and all Commitments of all Lenders shall have terminated and no L/C Obligations or other Obligations are outstanding or have been Cash Collateralized, neither Parts nor any Foreign Subsidiary created after the date hereof, shall, without the prior written consent of Agent, (i) receive any proceeds from any Loan hereunder or any Collateral except to the extent provided in Section 6.14(n) hereof.

 

SECTION 7

 

EVENTS OF DEFAULT AND REMEDIES.

 

Section 7.1                                    Events of Default.  Any one or more of the following shall constitute an “Event of Default” hereunder:

 

(a)                                 default in the payment (i) when due (whether at the stated maturity thereof or at any other time provided for in this Agreement) of all or any part of the principal of or interest on any Loan or (ii) within three (3) Business Days after the same shall be due, any other Obligation payable hereunder or under any other Loan Document;

 

(b)                                 default in the observance or performance of any covenant set forth in (i) Sections 6.3(c), 6.4, 6.11, 6.12, 6.13, 6.14, 6.15, 6.16, 6.19, 6.20 and 6.22 hereof or of any provision in any Loan Document dealing with the use, disposition or remittance of the Proceeds of Collateral or requiring the maintenance of insurance thereon, or (ii) Section 6.1 which is not remedied within three (3) Business Days after the earlier of (x) the date on which such default shall first become known to any officer of any Credit Party or (y) the date on which written notice of such default is given to Borrowers by the Agent except in the case of Section 6.1(d)(ii), in which case (x) and (y) will not apply;

 

(c)                                  default in the observance or performance of any other provision hereof or of any other Loan Document which is not remedied within thirty (30) days after the earlier of (i) the date on which such default shall first become known to any officer of any Credit Party or

 

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(ii) the date on which written notice of such default is given to Borrower Representative by the Agent;

 

(d)                                 any representation or warranty by any Credit Party made herein or in any other Loan Document or in any certificate delivered by any Credit Party to the Agent or the Lenders pursuant hereto or thereto or in connection with any transaction contemplated hereby or thereby proves untrue in any material respect as of the date of the issuance or making or deemed making thereof, except to the extent the same expressly relate to an earlier date in which case such representations and warranties shall be true and correct in all material respects as of such earlier date;

 

(e)                                  any event occurs or condition exists (other than those described in subsections (a) through (d) above) which is specified as an event of default under any of the other Loan Documents, or any of the Loan Documents shall for any reason not be or shall cease to be in full force and effect or is declared to be null and void in any material respect, or any of the Collateral Documents shall for any reason fail to create a valid and perfected first priority Lien (subject to Permitted Liens) in favor of the Agent, for the benefit of itself and the Lenders, in any Collateral purported to be covered thereby except as expressly permitted by the terms thereof and except with respect to assets with an aggregate fair market value not exceeding $1,000,000, or any Credit Party or any Subsidiary takes any action for the purpose of terminating, repudiating or rescinding any Loan Document executed by it or any of its obligations thereunder (except in connection with activities expressly permitted under this Agreement);

 

(f)                                   any default shall occur under any (i) Indebtedness of any Credit Party or any Subsidiary aggregating in excess of $1,000,000 (including, without limitation, Floorplan First Loss Guaranty Obligations), or under any indenture, agreement or other instrument under which the same may be issued, and such default shall continue for a period of time sufficient to permit acceleration of the maturity of any such Indebtedness (whether or not such Indebtedness is in fact accelerated) or any such Indebtedness shall not be paid when due (whether by demand, lapse of time, acceleration or otherwise) after giving effect to the applicable grace or cure periods, if any, or (ii) Floorplan Repurchase Obligations aggregating in excess of $1,000,000, or (iii) any Rate Management Agreement of any Credit Party or any Subsidiary with any Lender or an affiliate of any Lender;

 

(g)                                  any judgment or judgments, order or orders, writ or writs or warrant or warrants of attachment, or any similar process or processes, shall be entered or filed against any Credit Party or any Subsidiary, or against any of its Property, (i) for the payment of money in an aggregate amount in excess of $1,500,000, except to the extent (x) fully and unconditionally covered by insurance pursuant to which the insurer has accepted liability therefor in writing or (y) fully and unconditionally covered by an appeal bond, for which such Credit Party or such Subsidiary has established in accordance with GAAP a cash or Cash Equivalent reserve an amount equal to such judgment, writ or warrant, or (ii) for any non-monetary award, which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect, and in either case which remains undischarged, unvacated, unbonded or unstayed for a period of thirty (30) days or enforcement proceedings are commenced by any creditor upon such judgment or order;

 

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(h)                                 an ERISA Event occurs, or a Pension Event occurs with respect to any Foreign Plan, which when taken together with other such ERISA Events or Pension Events that have occurred, has resulted or could reasonably be expected to result in liability to the Credit Parties in an aggregate amount exceeding $250,000;

 

(i)                                     any Change of Control shall occur;

 

(j)                                    any Credit Party or any Subsidiary shall (i) have entered involuntarily against it an order for relief under the Bankruptcy Code, as amended, (ii) not pay, or admit in writing its inability to pay, its debts generally as they become due, (iii) make an assignment for the benefit of creditors, (iv) apply for, seek, consent to or acquiesce in, the appointment of a receiver, custodian, trustee, examiner, liquidator or similar official for it or any substantial part of its Property, (v) institute any proceeding seeking to have entered against it an order for relief under the Bankruptcy Code, as amended, to adjudicate it insolvent, or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors or fail to file an answer or other pleading denying the material allegations of any such proceeding filed against it, (vi) take any action in furtherance of any matter described in parts (i) through (v) above, or (vii) fail to contest in good faith any appointment or proceeding described in Section 7.1(k) hereof;

 

(k)                                 a custodian, receiver, trustee, examiner, liquidator or similar official shall be appointed for any Credit Party or any Subsidiary, or any substantial part of any of its Property, or a proceeding described in Section 7.1(j)(v) shall be instituted against any Credit Party or any Subsidiary, and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period of sixty (60) days;

 

(l)                                     Any provision of any Loan Document, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all Obligations arising under the Loan Documents, ceases to be in full force and effect; or any Credit Party or any other Person contests in any manner the validity or enforceability of any provision of any Loan Document; or any Credit Party denies that it has any or further liability or obligation under any provision of any Loan Document, or purports to revoke, terminate or rescind any provision of any Loan Document;

 

(m)                             any default or event of default shall occur under any other of the Subordinated Debt Documents beyond the applicable notice and cure period provided for therein, any subordination or intercreditor provision in any Subordination Agreement or in any document or instrument governing Subordinated Debt, shall cease to be in full force and effect, or any Credit Party or any other Person (including the holder of any applicable Subordinated Debt) shall contest in any manner the validity, binding nature or enforceability of any such provision; or

 

(n)                                 the failure of the Credit Parties to observe and comply in all respects with Sections 6.23 (Holdings; Limitations) and 6.24 (Certain Subsidiary Limitations) hereof.

 

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Section 7.2                                    Non-Bankruptcy Defaults.  When any Event of Default other than those described in subsection (j) or (k)  of Section 7.1 hereof has occurred and is continuing, the Agent shall, by written notice to Borrower Representative: (a) if so directed by the Required Lenders, terminate or suspend the remaining Commitments and all other obligations of the Lenders hereunder on the date stated in such notice (which may be the date thereof); (b) if so directed by the Required Lenders, declare the principal of and the accrued interest on all outstanding Loans to be forthwith due and payable and thereupon all outstanding Loans, including both principal and interest thereon, shall be and become immediately due and payable together with all other amounts payable under the Loan Documents without further demand, presentment, protest or notice of any kind; and (c) if so directed by the Required Lenders, and otherwise may, demand that Borrowers immediately pay to the Agent an amount equal to 102% of the then full available amount for drawing under each or any Letter of Credit, including, without limitation, any and all L/C Obligations and each Borrower agrees to immediately make such payment and acknowledges and agrees that the Lenders would not have an adequate remedy at law for failure by any Borrower to honor any such demand and that the Agent, for the benefit of itself and the Lenders, shall have the right to require each Borrower to specifically perform such undertaking whether or not any drawings or other demands for payment have been made under any Letter of Credit.  The Agent, after giving notice to Borrower Representative pursuant to Section 7.1(c) or this Section 7.2, shall also promptly send a copy of such notice to the other Lenders, but the failure to do so shall not impair or annul the effect of such notice.

 

Section 7.3                                    Bankruptcy Defaults.  When any Event of Default described in subsections (j) or (k) of Section 7.1 hereof has occurred and is continuing, then all outstanding Loans shall immediately become due and payable together with all other amounts payable under the Loan Documents without presentment, demand, protest or notice of any kind, the Commitments and any and all other obligations of the Lenders to extend further credit pursuant to any of the terms hereof shall immediately terminate and Borrowers shall immediately pay to the Agent the full amount then available for drawing under all outstanding Letters of Credit, including, without limitation, any and all L/C Obligations, each Borrower acknowledging and agreeing that the Lenders would not have an adequate remedy at law for failure by any Borrower to honor any such demand and that the Lenders, and the Agent on their behalf, shall have the right to require each Borrower to specifically perform such undertaking whether or not any draws or other demands for payment have been made under any of the Letters of Credit.

 

Section 7.4                                    Collateral for Undrawn Letters of Credit.

 

(a)                                 If the prepayment of the amount available for drawing under any or all outstanding Letters of Credit, including, without limitation, any and all L/C Obligations, is required under Section 2.8(b) or under Section 7.2 or 7.3 above, Borrowers shall forthwith pay the amount required to be so prepaid, to be held by the Agent as provided in subsection (b) below.

 

(b)                                 All amounts prepaid pursuant to subsection (a) above shall be held by the Agent in one or more separate collateral accounts (each such account, and the credit balances, properties, and any investments from time to time held therein, and any substitutions for such account, any certificate of deposit or other instrument evidencing any of the foregoing and all proceeds of and earnings on any of the foregoing being collectively called the “Collateral

 

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Account”) as security for, and for application by the Agent (to the extent available) to, the reimbursement of any payment under any Letter of Credit then or thereafter made by the L/C Issuer, and to the payment of the unpaid balance of any other Obligations.  The Collateral Account shall be held in the name of and subject to the exclusive dominion and control of the Agent for the benefit of the Agent, the Lenders, and the L/C Issuer.  If and when requested by Borrower Representative, the Agent shall invest funds held in the Collateral Account from time to time in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America with a remaining maturity of one year or less, provided that the Agent is irrevocably authorized to sell investments held in the Collateral Account when and as required to make payments out of the Collateral Account for application to amounts due and owing from any Borrower to the L/C Issuer, the Agent or the Lenders; provided, however, that if (i)  any Borrower shall have made payment of all such obligations referred to in subsection (a) above, (ii) all relevant preference or other disgorgement periods relating to the receipt of such payments have passed, and (iii) no Letters of Credit, Commitments, Loans or other Obligations remain outstanding hereunder, then the Agent shall release to Borrower Representative any remaining amounts held in the Collateral Account.

 

Section 7.5                                    Notice of Default.  The Agent shall give notice to Borrower Representative under Section 7.1(c) hereof promptly upon being requested to do so by any Lender and shall at such time also notify all the Lenders thereof.

 

Section 7.6                                    Expenses.  Each of the Credit Parties agrees to pay to the Agent and each Lender, and any other holder of any Note outstanding hereunder, all reasonable costs and expenses incurred or paid by the Agent and such Lender or any such holder, including reasonable and documented attorneys’ fees and court costs, in connection with any Default or Event of Default or the enforcement (or forbearance) of any of the Loan Documents (including all such costs and expenses incurred in connection with any proceeding under the Bankruptcy Code involving any Credit Party or any Subsidiary as a debtor thereunder).

 

SECTION 8

 

CHANGE IN CIRCUMSTANCES AND CONTINGENCIES.

 

Section 8.1                                    Funding Indemnity.  If any Lender shall incur any loss, cost or expense (including, without limitation, any loss of profit, and any loss, cost or expense incurred by reason of the liquidation or re-employment of deposits or other funds acquired by such Lender to fund or maintain any Eurodollar Loan or the relending or reinvesting of such deposits or amounts paid or prepaid to such Lender or by reason of breakage of interest rate swap agreements or the liquidation of other hedging contracts or agreements) as a result of:

 

(a)                                 any payment, prepayment or conversion of a Eurodollar Loan on a date other than the last day of its Interest Period,

 

(b)                                 any failure (because of a failure to meet the conditions of Section 3 or otherwise) by any Borrower to borrow or continue a Eurodollar Loan, or to convert a Base Rate Loan into a Eurodollar Loan, on the date specified in a notice given pursuant to Section 2.5(a) hereof,

 

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(c)                                  any failure by any Borrower to make any payment of principal on any Eurodollar Loan when due (whether by acceleration or otherwise),

 

(d)                                 any acceleration of the maturity of a Eurodollar Loan as a result of the occurrence of any Event of Default hereunder, or

 

(e)                                  any assignment required by Section 8.6(b),

 

then, upon the demand of such Lender, Borrowers shall pay to such Lender such amount as will reimburse such Lender for such loss, cost or expense.  If any Lender makes such a claim for compensation, it shall provide to Borrower Representative, with a copy to the Agent, a certificate setting forth the amount of such loss, cost or expense in reasonable detail (including an explanation of the basis for and the computation of such loss, cost or expense) and the amounts shown on such certificate shall be conclusive absent manifest error.  Notwithstanding any other provision of this Agreement, each Lender shall be entitled to fund and maintain its funding of all or any part of its Loans in any manner it sees fit, it being understood, however, that for the purposes of this Agreement all determinations hereunder with respect to Eurodollar Loans shall be made as if each Lender had actually funded and maintained each Eurodollar Loan through the purchase of deposits in the interbank eurodollar market having a maturity corresponding to such Loan’s Interest Period, and bearing an interest rate equal to LIBOR for such Interest Period.

 

Section 8.2                                    Illegality.  Notwithstanding any other provisions of this Agreement or any other Loan Document, if at any time any Change in Law, makes it unlawful for any Lender to make or continue to maintain any Eurodollar Loans or to perform its obligations as contemplated hereby, such Lender shall promptly give notice thereof to Borrower Representative and the Agent and such Lender’s obligations to make or maintain Eurodollar Loans under this Agreement shall be suspended until it is no longer unlawful for such Lender to make or maintain Eurodollar Loans.  Borrowers shall prepay on demand the outstanding principal amount of any such affected Eurodollar Loans, together with all interest accrued thereon and all other amounts then due and payable to such Lender under this Agreement; provided, however, subject to all of the terms and conditions of this Agreement, Borrower Representative may then elect to borrow the principal amount of the affected Eurodollar Loans from such Lender by means of Base Rate Loans from such Lender, which Base Rate Loans shall not be made ratably by the Lenders but only from such affected Lender.

 

Section 8.3                                    Unavailability of Deposits or Inability to Ascertain, or Inadequacy of, LIBOR.  If prior to the commencement of any Interest Period for any Eurodollar Borrowing,

 

(i) Agent shall have determined (which determination shall be conclusive and binding upon the Borrowers absent manifest error) that, by reason of circumstances affecting the relevant interbank market, adequate means do not exist for ascertaining LIBOR for such Interest Period, or

 

(ii) Agent shall have received notice from the Required Lenders that the Adjusted LIBOR Rate does not adequately and fairly reflect the cost to such Lenders (or Lender, as the case may be) of making, funding or maintaining their (or its, as the case may be) Eurodollar Loans for such Interest Period,

 

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Then Agent shall give written notice (or telephonic notice, promptly confirmed in writing) to the Borrower Representative and to the Lenders as soon as practicable thereafter. Until Agent shall notify the Borrowers and the Lenders that the circumstances giving rise to such notice no longer exist, (x) the obligations of the Lenders to make Eurodollar Revolving Loans or to continue or convert outstanding Loans as or into Eurodollar Loans shall be suspended and (y) all such affected Loans shall be converted into Base Rate Loans on the last day of the then current Interest Period applicable thereto unless the Borrowers prepay such Loans in accordance with this Agreement. Unless the Borrower Representative notifies Agent at least one (1) Business Day before the date of any Eurodollar Borrowing for which a Notice of Borrowing or Notice of Continuation/Conversion has previously been given that it elects not to borrow, continue or convert to a Eurodollar Loan on such date, then such Borrowing shall be made as, continued as or converted into a Base Rate Loan.

 

Section 8.4                                    Increased Costs.

 

(a)                                 Increased Costs Generally.  If any Change in Law shall:

 

(i)                                     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 or participated in by, any Lender (except any reserve requirement reflected in the Adjusted LIBOR) or any L/C Issuer;

 

(ii)                                  subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

 

(iii)                               impose on any Lender or any L/C Issuer or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender or any Letter of Credit or participation therein;

 

and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, converting to, continuing or maintaining any Loan or of maintaining its obligation to make any such Loan, or to increase the cost to such Lender, such L/C Issuer or such other Recipient of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender, L/C Issuer or other Recipient hereunder (whether of principal, interest or any other amount) then, upon request of such Lender, L/C Issuer or other Recipient, Borrowers will pay to such Lender, L/C Issuer or other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender, L/C Issuer or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.

 

(b)                                 Capital Requirements.  If any Lender or L/C Issuer determines that any Change in Law affecting such Lender or L/C Issuer or any lending office of such Lender or such Lender’s or L/C Issuer’s holding company, if any, regarding capital or liquidity requirements,

 

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has or would have the effect of reducing the rate of return on such Lender’s or L/C Issuer’s capital or on the capital of such Lender’s or L/C Issuer’s holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters of Credit or Swing Loans held by, such Lender, or the Letters of Credit issued by any L/C Issuer, to a level below that which such Lender or L/C Issuer or such Lender’s or L/C Issuer’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or L/C Issuer’s policies and the policies of such Lender’s or L/C Issuer’s holding company with respect to capital adequacy), then from time to time Borrowers will pay to such Lender or L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or L/C Issuer or such Lender’s or L/C Issuer’s holding company for any such reduction suffered.

 

(c)                                  Certificates for Reimbursement.  A certificate of a Lender or L/C Issuer setting forth the amount or amounts necessary to compensate such Lender or L/C Issuer or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section and delivered to Borrower Representative, shall be conclusive absent manifest error.  Borrowers shall pay such Lender or L/C Issuer, as the case may be, the amount shown as due on any such certificate within 10 days after receipt thereof.

 

(d)                                 Delay in Requests.  Failure or delay on the part of any Lender or L/C Issuer to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or L/C Issuer’s right to demand such compensation; provided that Borrowers shall not be required to compensate a Lender or L/C Issuer pursuant to this Section for any increased costs incurred or reductions suffered more than nine months prior to the date that such Lender or L/C Issuer, as the case may be, notifies Borrower Representative of the Change in Law giving rise to such increased costs or reductions, and of such Lender’s or L/C Issuer’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).

 

Section 8.5                                    Taxes.

 

(a)                                 Defined Terms.  For purposes of this Section 8.5, the term “Lender” includes any L/C Issuer and the term “applicable law” includes FATCA.

 

(b)                                 Payments Free of Taxes.  Any and all payments by or on account of any obligation of any Credit Party under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law.  If any applicable law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Credit Party shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

 

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(c)                                  Payment of Other Taxes by the Credit Parties.  The Credit Parties shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Agent timely reimburse it for the payment of, any Other Taxes.

 

(d)                                 Indemnification by the Credit Parties.  The Credit Parties shall jointly and severally indemnify each Recipient, within 10 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate setting forth in reasonable detail the nature and amount of such payment or liability delivered to Borrower Representative by a Lender (with a copy to the Agent), or by the Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

 

(e)                                  Indemnification by the Lenders.  Each Lender shall severally indemnify the Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that any Credit Party has not already indemnified the Agent for such Indemnified Taxes and without limiting the obligation of the Credit Parties to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 10.8 relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate setting forth in reasonable detail the nature and amount of such payment or liability delivered to any Lender by the Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Agent to the Lender from any other source against any amount due to the Agent under this paragraph (e).

 

(f)                                   Evidence of Payments.  As soon as practicable after any payment of Taxes by any Credit Party to a Governmental Authority pursuant to this Section 8.5, such Credit Party shall deliver to the Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Agent.

 

(g)                                  Status of Lenders.  (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to Borrower Representative and the Agent, at the time or times reasonably requested by Borrower Representative or the Agent, such properly completed and executed documentation reasonably requested by Borrower Representative or the Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably requested by Borrower Representative or the Agent, shall deliver to Borrower Representative such other documentation prescribed by applicable law or reasonably requested by Borrower Representative or the Agent as will enable Borrower Representative or the Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.  Notwithstanding anything to the contrary in the preceding two sentences, the

 

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completion, execution and submission of such documentation (other than such documentation set forth in Section 8.5(g)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

 

(ii)                                  Without limiting the generality of the foregoing, in the event that any Borrower is a U.S. Borrower,

 

(A)                               any Lender that is a U.S. Person shall deliver to such Borrower and the Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of Borrower Representative or the Agent), executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

 

(B)                               any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to such Borrower and the Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of Borrower Representative or the Agent), whichever of the following is applicable:

 

(i)                                     in the case of a Foreign Lender claiming 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 originals of IRS Form W-8BEN or W-8BEN-E 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 or W-8BEN-E 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;

 

(ii)                                  executed originals of IRS Form W-8ECI;

 

(iii)                               in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit H-1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of such Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN or W-8BEN-E; or

 

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(iv)                              to the extent a Foreign Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN or W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit H-2 or Exhibit H-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit H-4 on behalf of each such direct and indirect partner;

 

(C)                               any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to such Borrower and the Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of Borrower Representative or the Agent), executed originals 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 such Borrower or the Agent to determine the withholding or deduction required to be made; and

 

(D)                               if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to such Borrower and the Agent at the time or times prescribed by law and at such time or times reasonably requested by Borrower Representative or the Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by such Borrower or the Agent as may be necessary for Borrower Representative and the Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

 

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify such Borrower, Borrower Representative and the Agent in writing of its legal inability to do so.

 

(h)                                 Treatment of Certain Refunds.  If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 8.5 (including by the payment of additional amounts pursuant to this Section 8.5), it shall pay to the indemnifying party an amount equal to such

 

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refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund).  Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (h) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph (h), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (h) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.  This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

 

(i)                                     Survival.  Each party’s obligations under this Section 8.5 shall survive the resignation or replacement of the Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

 

(j)                                    For purposes of determining withholding Taxes imposed under FATCA, from and after the Third Restatement Closing Date, Borrowers and the Agent shall treat (and the Lenders hereby authorize the Agent to treat) the Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

 

Section 8.6                                    Mitigation Obligations; Replacement of Lenders.

 

(a)                                 Designation of a Different Lending Office.  If any Lender requests compensation under Section 8.4, or requires any Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 8.5, then such Lender shall (at the request of Borrower Representative) use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 8.4 or 8.5, as the case may be, in the future, and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.  Borrowers hereby agree to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

 

(b)                                 Replacement of Lenders.  If any Lender requests compensation under Section 8.4, or if any Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 8.5 and, in each case, such Lender has declined or is unable to designate a different lending office in accordance with Section 8.6(a), or if any Lender is a Defaulting Lender or a Non-Consenting Lender, then Borrower Representative may, at its sole expense and effort, upon

 

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notice to such Lender and the Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 10.8), all of its interests, rights (other than its existing rights to payments pursuant to Section 8.4 or Section 8.5) and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that:

 

(i)                                     Borrowers shall have paid to the Agent the assignment fee (if any) specified in Section 10.8;

 

(ii)                                  such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in Reimbursement Obligations, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 8.1) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or Borrowers (in the case of all other amounts);

 

(iii)                               in the case of any such assignment resulting from a claim for compensation under Section 8.4 or payments required to be made pursuant to Section 8.5, such assignment will result in a reduction in such compensation or payments thereafter;

 

(iv)                              such assignment does not conflict with applicable law; and

 

(v)                                 in the case of any assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.

 

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling Borrower Representative to require such assignment and delegation cease to apply.

 

Section 8.7                                    Defaulting Lenders.

 

(a)                                 Defaulting Lender Adjustments.  Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable law:

 

(i)                                     Waivers and Amendments.  Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of Required Lenders.

 

(ii)                                  Defaulting Lender Waterfall.  Any payment of principal, interest, fees or other amounts received by the Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Section 7 or otherwise) or received by the Agent from a Defaulting Lender pursuant to Section 10.12 shall be applied at such time or times as may be determined by the Agent as follows:  first, to the payment of any amounts owing by such Defaulting Lender to the Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting

 

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Lender to any L/C Issuer or Swing Line Lender hereunder; third, to Cash Collateralize the L/C Issuers’ Fronting Exposure with respect to such Defaulting Lender in accordance with Section 8.8; fourth, as Borrower Representative may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Agent; fifth, if so determined by the Agent and Borrowers, to be held in a deposit account and released pro rata in order to (x) satisfy such Defaulting Lender’s potential future funding obligations with respect to Loans under this Agreement and (y) Cash Collateralize the L/C Issuers’ future Fronting Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in accordance with Section 8.8; sixth, to the payment of any amounts owing to the Lenders, the L/C Issuers or Swing Line Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the L/C Issuers or Swing Line Lenders against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; seventh, so long as no Default or Event of Default exists, to the payment of any amounts owing to Borrowers as a result of any judgment of a court of competent jurisdiction obtained by any Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; and eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Loans or Reimbursement Obligations in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made or the related Letters of Credit were issued at a time when the conditions set forth in Section 3.1 were satisfied or waived, such payment shall be applied solely to pay the Loans of, and Reimbursement Obligations owed to, all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or Reimbursement Obligations owed to, such Defaulting Lender until such time as all Loans and funded and unfunded participations in L/C Obligations and Swing Loans are held by the Lenders pro rata in accordance with the Commitments under the applicable Facility without giving effect to Section 8.7(a)(iv).  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this Section 8.7(a)(ii) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

 

(iii)                               Certain Fees.  (A) No Defaulting Lender shall be entitled to receive any Commitment Fee for any period during which that Lender is a Defaulting Lender (and Borrowers shall not be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).

 

(B)                               Each Defaulting Lender shall be entitled to receive L/C Fees for any period during which that Lender is a Defaulting Lender only to the extent allocable to its Applicable Percentage of the stated amount of Letters of Credit for which it has provided Cash Collateral pursuant to Section 8.8.

 

(C)                               With respect to any L/C Fee not required to be paid to any Defaulting Lender pursuant to clause (B) above, Borrowers shall (x) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such

 

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Defaulting Lender with respect to such Defaulting Lender’s participation in L/C Obligations that has been reallocated to such Non-Defaulting Lender pursuant to clause (iv) below, (y) pay to the L/C Issuer the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to such L/C Issuer’s Fronting Exposure to such Defaulting Lender, and (z) not be required to pay the remaining amount of any such fee.

 

(iv)                              Reallocation of Participations to Reduce Fronting Exposure.  All or any part of such Defaulting Lender’s participation in L/C Obligations and Swing Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Applicable Percentages (calculated without regard to such Defaulting Lender’s Commitment) but only to the extent that (x) the conditions set forth in Section 3.1 are satisfied at the time of such reallocation (and, unless Borrowers shall have otherwise notified the Agent at such time, Borrowers shall be deemed to have represented and warranted that such conditions are satisfied at such time), and (y) such reallocation does not cause the aggregate Revolving Credit Exposure of any Non-Defaulting Lender to exceed such Non-Defaulting Lender’s Revolving Credit Commitment.  No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure following such reallocation.

 

(v)                                 Cash Collateral, Repayment of Swing Loans.  If the reallocation described in clause (iv) above cannot, or can only partially, be effected, Borrowers shall, without prejudice to any right or remedy available to them hereunder or under law, (x) first, prepay Swing Loans in an amount equal to the Swing Line Lenders’ Fronting Exposure and (y) second, Cash Collateralize the L/C Issuers’ Fronting Exposure in accordance with the procedures set forth in Section 8.8.

 

(b)                                 Defaulting Lender Cure.  If Borrower Representative, the Agent and each Swing Line Lender and L/C Issuer agree in writing that a Lender is no longer a Defaulting Lender, the Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit and Swing Loans to be held pro rata by the Lenders in accordance with the Commitments under the applicable Facility (without giving effect to Section 8.7(a)(iv), whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of Borrowers while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.

 

(c)                                  New Swing Loans/Letters of Credit.  So long as any Lender is a Defaulting Lender, (i) no Swing Line Lender shall be required to fund any Swing Loans unless it is satisfied

 

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that it will have no Fronting Exposure after giving effect to such Swing Loan and (ii) no L/C Issuer shall be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto.

 

Section 8.8                                    Cash Collateral.

 

(a)                                 Cash Collateral.  At any time that there shall exist a Defaulting Lender, within one Business Day following the written request of the Agent or any L/C Issuer (with a copy to the Agent) Borrowers shall Cash Collateralize the L/C Issuers’ Fronting Exposure with respect to such Defaulting Lender (determined after giving effect to Section 8.7(a)(iv) and any Cash Collateral provided by such Defaulting Lender) in an amount not less than the Minimum Collateral Amount.

 

(b)                                 Grant of Security Interest.  Each Borrower, and to the extent provided by any Defaulting Lender, such Defaulting Lender, hereby grants to the Agent, for the benefit of the L/C Issuers, and agrees to maintain, a first priority security interest in all such Cash Collateral as security for the Defaulting Lenders’ obligation to fund participations in respect of L/C Obligations, to be applied pursuant to clause (b) below.  If at any time the Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Agent and the L/C Issuers as herein provided, or that the total amount of such Cash Collateral is less than the Minimum Collateral Amount, Borrowers will, promptly upon demand by the Agent, pay or provide to the Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency (after giving effect to any Cash Collateral provided by the Defaulting Lender).

 

(c)                                  Application.  Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under this Section 8.8 or Section 8.7 in respect of Letters of Credit shall be applied to the satisfaction of the Defaulting Lender’s obligation to fund participations in respect of L/C Obligations (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) for which the Cash Collateral was so provided, prior to any other application of such property as may otherwise be provided for herein.

 

(d)                                 Termination of Requirement.  Cash Collateral (or the appropriate portion thereof) provided to reduce any L/C Issuer’s Fronting Exposure shall no longer be required to be held as Cash Collateral pursuant to this Section 8.8 following (i) the elimination of the applicable Fronting Exposure (including by the termination of Defaulting Lender status of the applicable Lender), or (ii) the determination by the Agent and the L/C Issuer that there exists excess Cash Collateral; provided that, subject to Section 8.7, the Person providing Cash Collateral and the L/C Issuer may agree that Cash Collateral shall be held to support future anticipated Fronting Exposure or other obligations and provided further that to the extent that such Cash Collateral was provided by Borrowers, such Cash Collateral shall remain subject to the security interest granted pursuant to the Loan Documents.

 

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SECTION 9

 

THE AGENT.

 

Section 9.1                                    Appointment and Authority.  Each of the Lenders and the L/C Issuers hereby irrevocably appoints Fifth Third to act on its behalf as the Agent hereunder and under the other Loan Documents and authorizes the Agent to take such actions on its behalf and to exercise such powers as are delegated to the Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  The provisions of this Article are solely for the benefit of the Agent, the Lenders and the L/C Issuers, and no Credit Party shall have rights as a third-party beneficiary of any of such provisions.  It is understood and agreed that the use of the term “agent” herein or in any other Loan Documents (or any other similar term) with reference to the Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law.  Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.

 

Section 9.2                                    Rights as a Lender.  The Person serving as the Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Agent, and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for, and generally engage in any kind of business with, any Credit Party or any Subsidiary or other Affiliate thereof as if such Person were not the Agent hereunder and without any duty to account therefor to the Lenders.

 

Section 9.3                                    Exculpatory Provisions.  (a) The Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents, and its duties hereunder shall be administrative in nature.  Without limiting the generality of the foregoing, the Agent:

 

(i)                                     shall not be subject to any fiduciary or other implied duties, regardless of whether a Default or Event of Default has occurred and is continuing;

 

(ii)                                  shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents); provided that the Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Agent to liability or that is contrary to any Loan Document or applicable law, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and

 

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(iii)                               shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to any Credit Party or any of its Affiliates that is communicated to or obtained by the Person serving as the Agent or any of its Affiliates in any capacity.

 

(b)                                 The Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections 10.11, 7.2 or 7.3), or (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by final and nonappealable judgment.  The Agent shall be deemed not to have knowledge of any Default and/or Event of Default unless and until notice describing such Default and/or Event of Default is given to the Agent in writing by Borrower Representative, a Lender or an L/C Issuer.

 

(c)                                  The Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default and/or Event of Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Section 3 or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Agent.

 

Section 9.4                                    Reliance by Agent.  The Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message,  Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.  The Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition hereunder to the making of a Loan, or the issuance, extension, renewal or increase of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or an L/C Issuer, the Agent may presume that such condition is satisfactory to such Lender or L/C Issuer unless the Agent shall have received notice to the contrary from such Lender or L/C Issuer prior to the making of such Loan or the issuance of such Letter of Credit.  The Agent may consult with legal counsel (who may be counsel for Borrower Representative), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

 

Section 9.5                                    Delegation of Duties.  The Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Agent.  The Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties.  The exculpatory provisions of this Article shall apply to any such sub-agent and

 

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to the Related Parties of the Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the Facilities as well as activities as Agent.  The Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and nonappealable judgment that the Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.

 

Section 9.6                                    Resignation of Agent.  (a) The Agent may at any time give notice of its resignation to the Lenders, the L/C Issuers and Borrower Representative.  Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with Borrower Representative, to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the “Resignation Effective Date”), then the retiring Agent may (but shall not be obligated to), on behalf of the Lenders and the L/C Issuers, appoint a successor Agent meeting the qualifications set forth above.  Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date.

 

(b)                                 If the Person serving as Agent is a Defaulting Lender pursuant to clause (d) of the definition thereof, the Required Lenders may, to the extent permitted by applicable law, by notice in writing to Borrower Representative and such Person remove such Person as Agent and, in consultation with Borrower Representative, appoint a successor.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days (or such earlier day as shall be agreed by the Required Lenders) (the “Removal Effective Date”), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.

 

(c)                                  With effect from the Resignation Effective Date or the Removal Effective Date (as applicable) (1) the retiring or removed Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held by the Agent on behalf of the Lenders or the L/C Issuers under any of the Loan Documents, the retiring or removed Agent shall continue to hold such collateral security until such time as a successor Agent is appointed and has become perfected in the Collateral) and (2) except for any indemnity payments owed to the retiring or removed Agent, all payments, communications and determinations provided to be made by, to or through the Agent shall instead be made by or to each Lender and L/C Issuer directly, until such time, if any, as the Required Lenders appoint a successor Agent as provided for above.  Upon the acceptance of a successor’s appointment as Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Agent (other than any rights to indemnity payments owed to the retiring or removed Agent), and the retiring or removed Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents.  The fees payable by Borrowers to a successor Agent shall be the same as those payable to its predecessor unless otherwise agreed between Borrower Representative and such successor.  After the retiring or removed Agent’s resignation or removal hereunder and under the other Loan Documents, the provisions of this Article and Section 10.11 shall continue

 

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in effect for the benefit of such retiring or removed Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Agent was acting as Agent.

 

Section 9.7                                    Non-Reliance on Agent and Other Lenders.  Each Lender and L/C Issuer acknowledges that it has, independently and without reliance upon the Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Lender and L/C Issuer also acknowledges that it will, independently and without reliance upon the Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

 

Section 9.8                                    No Other Duties, etc.  Anything herein to the contrary notwithstanding, none of the Bookrunners, Arrangers, any Syndication Agent, Documentation Agent or Collateral Agent, or other titles as necessary listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Agent, a Lender or an L/C Issuer hereunder.

 

Section 9.9                                    Agent May File Proofs of Claim.  In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Credit Party, the Agent (irrespective of whether the principal of any Loan or L/C Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Agent shall have made any demand on Borrower Representative) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:

 

(a)                                 to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the L/C Issuers and the Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the L/C Issuers and the Agent and their respective agents and counsel and all other amounts due the Lenders, the L/C Issuers and the Agent under Sections 2.13 and 10.13) allowed in such judicial proceeding; and

 

(b)                                 to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

 

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and L/C Issuer to make such payments to the Agent and, in the event that the Agent shall consent to the making of such payments directly to the Lenders and the L/C Issuers, to pay to the Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Agent and its agents and counsel, and any other amounts due the Agent under Sections 2.13 and 10.13.

 

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Section 9.10                             Collateral and Guaranty Matters.  (a) The Lenders irrevocably authorize the Agent, at its option and in its discretion,

 

(i)                                     to release any Lien on any property granted to or held by the Agent under any Loan Document (x) upon termination of all Commitments and Payment in Full of all Obligations and the expiration or termination of all Letters of Credit (other than Letters of Credit as to which other arrangements reasonably satisfactory to the Agent and the L/C Issuer shall have been made), (y) that is sold or otherwise disposed of or to be sold or otherwise disposed of as part of or in connection with any sale or other disposition permitted under the Loan Documents, or (z) subject to Section 10.9,  if approved, authorized or ratified in writing by the Required Lenders;

 

(ii)                                  to subordinate any Lien on any property granted to or held by the Agent under any Loan Document to the holder of any Lien on such property that is permitted by Section 6.12(e); and

 

(iii)                               to release any Guarantor from its obligations under the Guaranty if such Person ceases to be a Subsidiary as a result of a transaction permitted under the Loan Documents.

 

Upon request by the Agent at any time, the Required Lenders will confirm in writing the Agent’s authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations under the Guaranty pursuant to this Section 10.

 

(b)                                 The Agent shall not be responsible for or have a duty to ascertain or inquire into any representation or warranty regarding the existence, value or collectability of the Collateral, the existence, priority or perfection of the Agent’s Lien thereon, or any certificate prepared by any Credit Party in connection therewith, nor shall the Agent be responsible or liable to the Lenders for any failure to monitor or maintain any portion of the Collateral.

 

Section 9.11                             Authorization to Enter into, and Enforcement of, the Collateral Documents.  The Agent is hereby irrevocably authorized by each of the Lenders to execute and deliver the Collateral Documents on behalf of each of the Lenders and their Affiliates and to take such action and exercise such powers under the Collateral Documents as the Agent considers appropriate; provided that the Agent shall not amend the Collateral Documents unless such amendment is agreed to in writing by the Required Lenders; provided further that the consent of the Required Lenders shall not be required to amend any account control agreement, landlord waiver, bailee waiver or similar agreement.  Each Lender acknowledges and agrees that it will be bound by the terms and conditions of the Collateral Documents upon the execution and delivery thereof by the Agent.  Except as otherwise specifically provided for herein, no Lender (or its Affiliates) other than the Agent shall have the right to institute any suit, action or proceeding in equity or at law for the foreclosure or other realization upon any Collateral or for the execution of any trust or power in respect of the Collateral or for the appointment of a receiver or for the enforcement of any other remedy under the Collateral Documents; it being understood and intended that no one or more of the Lenders (or their Affiliates) shall have any right in any manner whatsoever to affect, disturb or prejudice the Lien of the Agent (or any security trustee therefor) under the Collateral Documents by its or their action or to enforce any right thereunder,

 

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and that all proceedings at law or in equity shall be instituted, had, and maintained by the Agent (or its security trustee) in the manner provided for in the relevant Collateral Documents for the benefit of the Lenders and their Affiliates.

 

Section 9.12                             Designation of Additional Agents.  The Agent shall have the continuing right, for purposes hereof, at any time and from time to time to designate one or more of the Lenders (and/or its or their Affiliates) as “syndication agents,” “documentation agents,” “arrangers” or other designations for purposes hereto, but such designation shall have no substantive effect, and such Lenders and their Affiliates shall have no additional powers, duties or responsibilities as a result thereof.

 

SECTION 10

 

MISCELLANEOUS.

 

Section 10.1                             No Waiver; Cumulative Remedies.  No delay or failure on the part of the Agent or any Lender or on the part of the holder or holders of any of the Obligations in the exercise of any power or right under any Loan Document shall operate as a waiver thereof or as an acquiescence in any default, nor shall any single or partial exercise of any power or right preclude any other or further exercise thereof or the exercise of any other power or right.  The rights and remedies hereunder of the Agent, the Lenders and of the holder or holders of any of the Obligations are cumulative to, and not exclusive of, any rights or remedies which any of them would otherwise have.

 

Section 10.2                             Non-Business Days.  If any payment hereunder becomes due and payable on a day which is not a Business Day, the due date of such payment shall be extended to the next succeeding Business Day on which date such payment shall be due and payable.  In the case of any payment of principal falling due on a day which is not a Business Day, interest on such principal amount shall continue to accrue during such extension at the rate per annum then in effect, which accrued amount shall be due and payable on the next scheduled date for the payment of interest.

 

Section 10.3                             Survival of Representations.  All representations and warranties made herein or in any other Loan Document or in certificates given pursuant hereto or thereto shall survive the execution and delivery of this Agreement and the other Loan Documents, and shall continue in full force and effect with respect to the date as of which they were made as long as any Lender or the L/C Issuer has any Commitment hereunder or any Obligations remain unpaid hereunder.

 

Section 10.4                             Survival of Indemnities.  All indemnities and other provisions relative to reimbursement to the Lenders of amounts sufficient to protect the yield of the Lenders with respect to the Loans and Letters of Credit, including, but not limited to, Sections 8.1, 8.4, 10.1, 10.4 and 10.13 hereof, shall survive the termination of this Agreement and the other Loan Documents and the Payment in Full of the Obligations.

 

Section 10.5                             Sharing of Set-Off.  If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of

 

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its Loans or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of its Loans and accrued interest thereon or other such obligations greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing them; provided that:

 

(i)                                     if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and

 

(ii)                                  the provisions of this paragraph shall not be construed to apply to (x) any payment made by Borrowers pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender), or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in Reimbursement Obligations to any assignee or participant, other than to any Borrower or any Subsidiary thereof (as to which the provisions of this paragraph shall apply).

 

Each Credit Party consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against each Credit Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of each Credit Party in the amount of such participation.

 

Section 10.6                             Notices.

 

(a)                                 Notices Generally.  Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile as follows:

 

(i)                                     if to any Credit Party, c/o Borrower Representative, to it at 100 Cherokee Cove Drive, Vonore, Tennessee 37885, Attention of Tim Oxley (Facsimile No. (423) 884-2222; Telephone No. (423) 884-7829), with a copy (which shall not constitute notice) to (i) Egerton, McAfee, Armistead & Davis, 1400 Riverview Tower, 900 S Gay Street, Knoxville, TN 37902, Attention: Norman G. Templeton, and (ii) King & Spalding LLP, 100 N. Tryon Street, Suite 3900, Charlotte, North Carolina, Attention: W. Todd Holleman (Facsimile No. 704-503-2622; Telephone No. 704-503-2567).

 

(ii)                                  if to the Agent, to Fifth Third at Fifth Third Bank, as Agent, 222 South Riverside Plaza, 30th Floor, Chicago, Illinois 60606, Attention: Thomas J. Werner (Facsimile No. 513-534-8400; Telephone No. (813) 920-0332;

 

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(iii)                               if to Fifth Third Bank in its capacity as L/C Issuer, to it at 38 Fountain Square Plaza, Cincinnati, Ohio  45263, Attention: Judy Huls (Facsimile No. 513-358-6439; Telephone No. (513) 534-4224), and if to any other L/C Issuer, to it at the address provided in writing to the Agent and Borrower Representative at the time of its appointment as an L/C Issuer hereunder;

 

(iv)                              if to a Lender, to it at its address (or facsimile number) set forth in its Administrative Questionnaire or on the signature pages hereto.

 

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient).  Notices delivered through electronic communications, to the extent provided in paragraph (b) below, shall be effective as provided in said paragraph (b).

 

(b)                                 Electronic Communications.  Notices and other communications to the Lenders and the L/C Issuers hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Agent, provided that the foregoing shall not apply to notices to any Lender or L/C Issuer pursuant to Section 2.5 if such Lender or L/C Issuer, as applicable, has notified the Agent that it is incapable of receiving notices under such Article by electronic communication.  The Agent or Borrower Representative may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.

 

Unless the Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

 

(c)                                  Change of Address, etc.  Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto.

 

(d)                                 Platform.

 

(i)                                     Each Credit Party agrees that the Agent may, but shall not be obligated to, make the Communications (as defined below) available to the L/C Issuers

 

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and the other Lenders by posting the Communications on Debt Domain, Intralinks, Syndtrak or a substantially similar electronic transmission system (the “Platform”).

 

(ii)                                  The Platform is provided “as is” and “as available.”  The Agent Parties (as defined below) do not warrant the adequacy of the Platform and expressly disclaim liability for errors or omissions in the Communications.  No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Communications or the Platform.  In no event shall the Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to any Credit Party, any Lender or any other Person or entity for damages of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of any Credit Party’s or the Agent’s transmission of communications through the Platform.  “Communications” means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of any Credit Party pursuant to any Loan Document or the transactions contemplated therein which is distributed to the Agent, any Lender or any L/C Issuer by means of electronic communications pursuant to this Section, including through the Platform.

 

Section 10.7                             Counterparts.  This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement and the other Loan Documents, and any separate letter agreements with respect to fees payable to the Agent, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 3, this Agreement shall become effective when it shall have been executed by the Agent and when the Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement.

 

Section 10.8                             Successors and Assigns; Assignments and Participations.

 

(a)                                 Successors and Assigns Generally.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that no Credit Party assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Agent and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of paragraph (b) of this Section, (ii) by way of participation in accordance with the provisions of paragraph (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of paragraph (f) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby,

 

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Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

(b)                                 Assignments by Lenders.  Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); provided that (in each case with respect to any Facility) any such assignment shall be subject to the following conditions:

 

(i)                                     Minimum Amounts.

 

(A)                               in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and/or the Loans at the time owing to it (in each case with respect to any Facility) or contemporaneous assignments to related Approved Funds that equal at least the amount specified in paragraph (b)(i)(B) of this Section in the aggregate or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

 

(B)                               in any case not described in paragraph (b)(i)(A) of this Section, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $1,000,000 in the case of any assignment in respect of the Revolving Loans, or $1,000,000, in the case of any assignment in respect of the Term Loan, unless each of the Agent and, so long as no Event of Default has occurred and is continuing, Borrower Representative otherwise consents (each such consent not to be unreasonably withheld or delayed).

 

(ii)                                  Proportionate Amounts.  Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loan or the Commitment assigned, except that this clause (ii) shall not prohibit any Lender from assigning all or a portion of its rights and obligations among separate Facilities on a non-pro rata basis.

 

(iii)                               Required Consents.  No consent shall be required for any assignment except to the extent required by paragraph (b)(i)(B) of this Section and, in addition:

 

(A)                               the consent of Borrower Representative (such consent not to be unreasonably withheld or delayed) shall be required unless (x) an Event of Default has occurred and is continuing at the time of such assignment, or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided that Borrower Representative shall be deemed to have consented to any

 

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such assignment unless it shall object thereto by written notice to the Agent within 5 Business Days after having received notice thereof and provided, further, that Borrower Representative’s consent shall not be required during the primary syndication of the Facilities;

 

(B)                               the consent of the Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments in respect of (i) the Revolving Loans or any unfunded Commitments with respect to the Term Loan if such assignment is to a Person that is not a Lender with a Commitment in respect of such Loan, an Affiliate of such Lender or an Approved Fund with respect to such Lender, or (ii) any Term Loans to a Person who is not a Lender, an Affiliate of a Lender or an Approved Fund;

 

and

 

(C)                               the consent of the L/C Issuer and each Swing Line Lender shall be required for any assignment in respect of the Revolving Loans.

 

(iv)                              Assignment and Assumption.  The parties to each assignment shall execute and deliver to the Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; provided that the Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment.  The assignee, if it is not a Lender, shall deliver to the Agent an Administrative Questionnaire.

 

(v)                                 No Assignment to Certain Persons.  No such assignment shall be made to (A) any Credit Party or any of their respective Affiliates or Subsidiaries, (B) to any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B) or (C) to any of the entities listed on Schedule 10.8(b).

 

(vi)                              No Assignment to Natural Persons.  No such assignment shall be made to a natural Person.

 

(vii)                           Certain Additional Payments.  In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of Borrower Representative and the Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Agent, the L/C Issuer, each Swing Line Lender and each other Lender hereunder (and interest accrued thereon), and (y) acquire (and fund as appropriate) its full pro rata share of all Loans and participations in Letters

 

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of Credit and Swing Loans in accordance with its Applicable Percentage.  Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

 

Subject to acceptance and recording thereof by the Agent pursuant to paragraph (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 8.4 and 10.11 with respect to facts and circumstances occurring prior to the effective date of such assignment; provided, that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (d) of this Section.

 

(c)                                  Register.  The Agent, acting solely for this purpose as an agent of Borrowers, shall maintain at one of its offices in Cincinnati, Ohio a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans 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 the Credit Parties, the Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement.  The Register shall be available for inspection by Borrower Representative and any Lender, at any reasonable time and from time to time upon reasonable prior notice. This Section 10.8(c) is intended to qualify the Loans as obligations in “registered form” for purposes of the Code including Treasury Regulation 1.871-14(c) promulgated thereunder, and shall be interpreted consistently therewith.

 

(d)                                 Participations.  Any Lender may at any time, without the consent of, or notice to, Borrower Representative or the Agent, sell participations to any Person (other than a natural Person or any Credit Party or any Credit Party’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Credit Parties, the Agent, the L/C Issuers and Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  For the avoidance of doubt, each Lender shall be responsible for the

 

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indemnity under Section 10.11(c) with respect to any payments made by such Lender to its Participant(s).

 

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in  Section 10.9(b) that affects such Participant.  Each Credit Party agrees that each Participant shall be entitled to the benefits of Sections 8.4, 8.1 and 8.5 (subject to the requirements and limitations therein, including the requirements under Section 8.5(g) (it being understood that the documentation required under Section 8.5(g) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of Section 8.6 as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Sections 8.4 or 8.5, with respect to any participation, than its participating Lender 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.  Each Lender that sells a participation agrees, at Borrower Representative’s request and expense, to use reasonable efforts to cooperate with Borrower Representative to effectuate the provisions of Section 8.6 with respect to any Participant.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.12 as though it were a Lender; provided that such Participant agrees to be subject to Section 10.5 as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as an agent of 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 Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Agent (in its capacity as Agent) shall have no responsibility for maintaining a Participant Register.

 

(e)                                  Certain Pledges.  Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

 

(f)                                   Electronic Execution of Assignments.  The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be

 

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of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the Illinois Electronic Commerce Security Act, or any other similar state laws whether or not based on the Uniform Electronic Transactions Act.

 

Section 10.9                             Amendments.  (a) No failure or delay by the Agent, any L/C Issuer or any Lender in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Agent, the L/C Issuers and the Lenders hereunder and under any other Loan Document are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of any Loan Document or consent to any departure by any Credit Party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default or Event of Default, regardless of whether the Agent, any Lender or any L/C Issuer may have had notice or knowledge of such Default or Event of Default at the time.

 

(b)                                 Neither this Agreement nor any other Loan Document (other than any Rate Management Agreement or any Banking Services Obligations agreement) nor any provision hereof or thereof may be waived, amended or modified except (i) in the case of this Agreement, pursuant to an agreement or agreements in writing entered into by Borrowers and the Required Lenders or (ii) in the case of any other Loan Document, pursuant to an agreement or agreements in writing entered into by the Agent and the Credit Parties that are parties thereto, with the consent of the Required Lenders; provided that no such agreement shall (A) increase the Commitment of any Lender without the written consent of such Lender (including any such Lender that is a Defaulting Lender), (B) reduce or forgive the principal amount of any Loan or LC Obligation or reduce the rate of interest thereon, or reduce or forgive any interest or fees payable hereunder, without the written consent of each Lender (including any such Lender that is a Defaulting Lender) affected thereby, (C) postpone any scheduled date of payment of the principal amount of any Loan or LC Obligation (other than mandatory prepayments), or any date for the payment of any interest, fees or other Obligations payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment, without the written consent of each Lender (including any such Lender that is a Defaulting Lender) affected thereby, (D) change Section 2.9 (Place and Application of Payments) in a manner or order that would alter the manner in which payments are shared, without the written consent of each Lender (including any such Lender that is a Defaulting Lender), (E) [Reserved], (F) change any of the provisions of this Section or the definition of “Required Lenders” or any other provision of any Loan Document specifying the number or percentage of Lenders (or Lenders of any Class) required to waive, amend or modify any rights thereunder or make any determination or grant any consent thereunder, without the written consent of each Lender (including any such Lender that is a Defaulting Lender) directly affected thereby, (G) change Section 8.7 (Defaulting Lenders), without the consent of each Lender (other than any Defaulting Lender), (H)  release any Guarantor from its Guarantied Obligations (except

 

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as otherwise permitted herein or in the other Loan Documents), without the written consent of each Lender (other than any Defaulting Lender), or (I) except as provided in this Section 10.9 or in any Collateral Document, release all or substantially all of the Collateral, without the written consent of each Lender (other than any Defaulting Lender); provided further that (i) no such agreement shall amend, modify or otherwise affect the rights or duties of the Agent, any L/C Issuer or the Swing Loan Lender hereunder without the prior written consent of the Agent, such L/C Issuer or the Swing Loan Lender, as the case may be (it being understood that any change to Section 8.7 (Defaulting Lenders) shall require the consent of the Agent, each  L/C Issuer and the Swing Loan Lender), (ii)  any amendment necessary to implement the terms of a Facilities Increase in accordance with the terms hereof shall only require the signature of the Agent, the Borrowers and the Facilities Increase Lenders, and (iii) any waiver or amendment to cure any ambiguity, omission, defect or inconsistency in any Loan Document shall only require the signature of Agent and Borrowers.  The Agent may also amend the Schedule 1 (Commitments) to reflect assignments entered into pursuant to Section 10.8.

 

Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitments of such Lender may not be increased or extended without the consent of such Lender.

 

Section 10.10                      Headings.  Section headings used in this Agreement are for reference only and shall not affect the construction of this Agreement.

 

Section 10.11                      Costs and Expenses; Indemnification.

 

(a)                                 Costs and Expenses.  The Credit Parties shall pay (i) all reasonable out-of-pocket expenses incurred by the Agent and its Affiliates (including the reasonable fees, charges and disbursements of counsel for the Agent), in connection with the syndication of the Facilities, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents, or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by any L/C Issuer in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder, and (iii) all out-of-pocket expenses incurred by the Agent, any Lender or any L/C Issuer (including the fees, charges and disbursements of any counsel for the Agent, any Lender or any L/C Issuer), any Lender or any L/C Issuer, in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section, or (B) in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

 

(b)                                 Indemnification by the Credit Parties.  The Credit Parties shall indemnify the Agent (and any sub-agent thereof), each Lender and the L/C Issuer, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the fees, charges and disbursements of any counsel for any Indemnitee),  incurred by any Indemnitee (other than in respect of any such damages incurred or paid by an

 

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Indemnitee to a third party and to which such Indemnitee is otherwise entitled to indemnification as provided herein) or asserted against any Indemnitee by any Person (including any Credit Party) arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by any L/C Issuer to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or Release of Hazardous Materials on or from any property owned or operated by any Credit Party or any of its Subsidiaries, or any Environmental Liability related in any way to any Credit Party or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by any Credit Party or any Subsidiary or Affiliates of any Credit Party, and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by any Credit Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document, such Credit Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction or (z) are limited as provided in the Environmental Indemnity Agreement, dated of even date herewith, of the Credit Parties in favor of Agent and the Lenders.  This Section 10.11 (b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

 

(c)                                  Reimbursement by Lenders.  To the extent that the Credit Parties for any reason fail to indefeasibly pay any amount required under paragraph (a) or (b) of this Section to be paid by it to the Agent (or any sub-agent thereof), any L/C Issuer, any Swing Line Lender or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Agent (or any such sub-agent), such L/C Issuer, such Swing Line Lender or such Related Party, as the case may be, such Lender’s pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought based on each Lender’s share of the Total Credit Exposure at such time) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender); provided that with respect to such unpaid amounts owed to any L/C Issuer or Swing Line Lender solely in its capacity as such, only the Revolving Lenders shall be required to pay such unpaid amounts, such payment to be made severally among them based on such Revolving Lenders’ Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) provided, further, that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Agent (or any such sub-agent), such L/C Issuer or such Swing Line Lender in its capacity as such, or against any Related Party of any of the foregoing acting for the Agent (or any such sub-agent), such L/C Issuer or any such Swing Line Lender in connection with such capacity.  The obligations of the Lenders under this paragraph (c) are subject to the provisions of Section 10.18.

 

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(d)                                 Waiver of Consequential Damages, Etc.  To the fullest extent permitted by applicable law, none of Agent, any Lender, L/C Issuer, Swing Line Lender or any Credit Party,  shall assert, and hereby waives, any claim against any Indemnitee and any Credit Party, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit, or the use of the proceeds thereof.  No Indemnitee referred to in paragraph (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.

 

(e)                                  Payments.  All amounts due under this Section shall be payable promptly (and, in any event within 3 Business Days) after demand therefor.

 

(f)                                   Survival.  Each party’s obligations under this Section shall survive the termination of the Loan Documents and payment of the obligations hereunder.

 

Section 10.12                      Set-off.  Subject to Section 2.15(b), if an Event of Default shall have occurred and be continuing, each Lender, the L/C Issuer, and each of their respective Affiliates is hereby authorized at any time and from time to time, with prior written notice to Agent, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held, and other obligations (in whatever currency) at any time owing, by such Lender, such L/C Issuer or any such Affiliate, to or for the credit or the account of any Credit Party against any and all of the Obligations of such Credit Party now or hereafter existing under this Agreement or any other Loan Document to such Lender or such L/C Issuer or their respective Affiliates, irrespective of whether or not such Lender, L/C Issuer or Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of such Credit Party may be contingent or unmatured or are owed to a branch, office or Affiliate of such Lender or such L/C Issuer different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness; provided that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Agent for further application in accordance with the provisions of Section 8.7 and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Agent, the L/C Issuers, and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff.  The rights of each Lender, the L/C Issuer and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, such L/C Issuer or their respective Affiliates may have.  Each Lender and L/C Issuer agrees to notify Borrower Representative and the Agent promptly after any such setoff and application; provided that the failure to give such notice shall not affect the validity of such setoff and application.

 

Section 10.13                      Entire Agreement.  The Loan Documents constitute the entire understanding of the parties thereto with respect to the subject matter thereof and any prior agreements, whether written or oral, with respect thereto are superseded hereby.

 

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Section 10.14                      Governing Law.  This Agreement and the other Loan Documents and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement or any other Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, internal laws of the State of Illinois (including, without limitation, 735 ILCS Section 105/5-1 et seq., but otherwise without regard to the conflict of laws provisions) of the State of Illinois.

 

Section 10.15                      Severability of Provisions.  Any provision of any Loan Document which is unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.  All rights, remedies and powers provided in this Agreement and the other Loan Documents may be exercised only to the extent that the exercise thereof does not violate any applicable mandatory provisions of law, and all the provisions of this Agreement and other Loan Documents are intended to be subject to all applicable mandatory provisions of law which may be controlling and to be limited to the extent necessary so that they will not render this Agreement or the other Loan Documents invalid or unenforceable.

 

Section 10.16                      Excess Interest.  Notwithstanding any provision to the contrary contained herein or in any other Loan Document, no such provision shall require the payment or permit the collection of any amount of interest in excess of the maximum amount of interest permitted by applicable law to be charged for the use or detention, or the forbearance in the collection, of all or any portion of the Loans or other obligations outstanding under this Agreement or any other Loan Document (“Excess Interest”).  If any Excess Interest is provided for, or is adjudicated to be provided for, herein or in any other Loan Document, then in such event (a) the provisions of this Section shall govern and control, (b) neither any Credit Party, any other obligor or endorser shall be obligated to pay any Excess Interest, (c) any Excess Interest that the Agent or any Lender may have received hereunder shall, at the option of the Agent, be (i) applied as a credit against the then outstanding principal amount of Obligations hereunder and accrued and unpaid interest thereon (not to exceed the maximum amount permitted by applicable law), (ii) refunded to Borrowers, or (iii) any combination of the foregoing, (d) the interest rate payable hereunder or under any other Loan Document shall be automatically subject to reduction to the maximum lawful contract rate allowed under applicable usury laws (the “Maximum Rate”), and this Agreement and the other Loan Documents shall be deemed to have been, and shall be, reformed and modified to reflect such reduction in the relevant interest rate, and (e) neither any Credit Party or any other obligor or endorser shall have any action against the Agent or any Lender for any Damages whatsoever arising out of the payment or collection of any Excess Interest.  Notwithstanding the foregoing, if for any period of time interest on any of the Obligations is calculated at the Maximum Rate rather than the applicable rate under this Agreement, and thereafter such applicable rate becomes less than the Maximum Rate, the rate of interest payable on the Obligations shall remain at the Maximum Rate until the Lenders have received the amount of interest which such Lenders would have received during such period on the Obligations had the rate of interest not been limited to the Maximum Rate during such period.

 

Section 10.17                      Construction.  The parties acknowledge and agree that the Loan Documents shall not be construed more favorably in favor of any party hereto based upon which

 

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party drafted the same, it being acknowledged that all parties hereto contributed substantially to the negotiation of the Loan Documents.  The provisions of this Agreement relating to Subsidiaries shall apply only during such times as any Credit Party has one or more Subsidiaries.  Nothing contained herein shall be deemed or construed to permit any act or omission which is prohibited by the terms of any Collateral Document, the covenants and agreements contained herein being in addition to and not in substitution for the covenants and agreements contained in the Collateral Documents.

 

Section 10.18                      Lender’s and L/C Issuer’s Obligations Several.  The obligations of the Lenders and L/C Issuers hereunder are several and not joint.  Nothing contained in this Agreement and no action taken by the Lenders or L/C Issuers pursuant hereto shall be deemed to constitute the Lenders or L/C Issuers a partnership, association, joint venture or other entity.

 

Section 10.19                      USA PATRIOT Act.  Each Lender hereby notifies each of the Credit Parties that pursuant to the requirements of the PATRIOT Act it is required to obtain, verify and record information that identifies each of the Credit Parties, which information includes the name and address of each of the Credit Parties and other information that will allow such Lender to identify each of the Credit Parties in accordance with the PATRIOT Act.

 

Section 10.20                      Submission to Jurisdiction; Waiver of Jury Trial.

 

(a)                                 Jurisdiction.  Each Credit Party irrevocably and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise, against the Agent, any Lender, any L/C Issuer, or any Related Party of the foregoing in any way relating to this Agreement or any other Loan Document or the transactions relating hereto or thereto, in any forum other than the courts of the State of Illinois sitting in Cook County, and of the United States District Court of the Northern District of Illinois (Eastern Division), and any appellate court from any thereof, and each of the parties hereto irrevocably and unconditionally submits to the jurisdiction of such  courts and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in such Illinois State court or, to the fullest extent permitted by applicable law, in such federal court.  Each of the parties hereto agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Agreement or in any other Loan Document shall affect any right that the Agent, any Lender or any L/C Issuer may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against any Credit Party or its properties in the courts of any jurisdiction.

 

(b)                                 Waiver of Venue.  Each Credit Party irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (b) of this Section.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

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(c)                                  Service of Process.  Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 10.6.  Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by applicable law.

 

(d)                                 WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

Section 10.21                      Treatment of Certain Information; Confidentiality.  Each of the Agent, the Lenders and the L/C Issuers (each, a “Lender Party”) agree to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its Related Parties (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential); (b) to the extent required or requested by any regulatory authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory authority, such as the National Association of Insurance Commissioners); (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process; (d) to any other party hereto; (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder; (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights and obligations under this Agreement, or (ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to any Borrower and its obligations, this Agreement or payments hereunder; (g) on a confidential basis to (i) any rating agency in connection with rating the Credit Parties or the Term Credit or (ii) the CUSIP ServiceBureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers with respect to the Term Credit or for league table purposes; (h) with the consent of Borrower Representative; or (i) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section, or (y) becomes available to the Agent, any Lender, any L/C Issuer or any of their respective Affiliates on a non-confidential basis from a source other than any Credit Party. Each Lender Party (1) may disclose the existence of this Agreement and the information about this Agreement to market data collectors and similar services providers to the lending industry (including for league table designation purposes) and to service providers to such Lender Party in connection with the

 

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administration and management of this Agreement and the other Loan Documents; and (2) may, at their own expense, place advertisements in financial and other periodicals or on a home page or similar place for dissemination of information on the Internet or worldwide web as it may choose, and circulate promotional materials, issue news releases and publish “tombstone” advertisements and other announcements relating to the Closing Date Transactions and the Credit Parties in newspapers, trade journal and other appropriate media, which may include use of logos of one or more of the Credit Parties (collectively, “Trade Announcements”), so long as such Trade Announcement does not include any financial information regarding any of the Credit Parties.

 

For purposes of this Section, “Information” means all information received from any Credit Party relating to the Credit Parties or any of their respective businesses, other than any such information that is available to any Lender Party on a non-confidential basis prior to disclosure by any Credit Party or any of its Subsidiaries (so long as such source is not known to such Lender Party to be bound by confidentiality obligations to the Credit Parties). Any Person required to maintain the confidentiality of Information as provided in this Section 10.21 shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

 

Section 10.22                      Subordination of Intercompany Indebtedness.  Each Credit Party hereby agrees that any Indebtedness of any other Credit Party or any Subsidiary of such Credit Party or any other Credit Party now or hereafter owing to such Credit Party, whether heretofore, now or hereafter created (the “Credit Party Subordinated Debt”), is hereby subordinated to all of the Obligations and that, upon the occurrence and during the continuance of an Event of Default, the Credit Party Subordinated Debt shall not be paid in whole or in part until Payment in Full of the Obligations.  No Credit Party shall make or accept any payment of or on account of any Credit Party Subordinated Debt at any time in contravention of the foregoing.  Each payment on the Credit Party Subordinated Debt received in violation of any of the provisions hereof shall be deemed to have been received by such Credit Party as trustee for the Agent and shall be paid over to the Agent immediately on account of the Obligations, but without otherwise affecting in any manner such Credit Party’s liability hereunder.  Each Credit Party agrees to file all claims against the Credit Party from whom the Credit Party Subordinated Debt is owing in any bankruptcy or other proceeding in which the filing of claims is required by law in respect of any Credit Party Subordinated Debt, and the Agent shall be entitled to all of such Credit Party’s rights thereunder.  If for any reason any Credit Party fails to file such claim at least ten (10) Business Days prior to the last date on which such claim should be filed, such Credit Party hereby irrevocably appoints the Agent as its true and lawful attorney-in-fact, and the Agent is hereby authorized to act as attorney-in-fact in such Credit Party’s name to file such claim or, in the Agent’s discretion, to assign such claim to and cause proof of claim to be filed in the name of the Agent or its nominee.  in all such cases, whether in administration, bankruptcy or otherwise, the Person or Persons authorized to pay such claim shall pay to the Agent the full amount payable on the claim in the proceeding, and, to the full extent necessary for that purpose, each Credit Party hereby assigns to the Agent all of such Credit Party’s rights to any payments or distributions to which such Credit Party otherwise would be entitled.  If the amount so paid is greater than such Credit Party’s liability hereunder, the Agent shall pay the excess amount to the party entitled thereto.  In addition, each Credit Party hereby irrevocably appoints the Agent as its

 

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attorney-in-fact to exercise all of such Credit Party’s voting rights in connection with any bankruptcy proceeding or any plan for the reorganization of any Borrower or any Credit Party from whom the Credit Party Subordinated Debt is owing.

 

Section 10.23                      Prior Agreements.

 

(a)                     This Agreement shall become effective, and shall amend and restate the Existing Credit Agreement, upon the execution of this Agreement by Borrowers, Holdings, Agent and the Lenders and upon the satisfaction of the conditions contained in herein; and from and after the Third Restatement Closing Date (i) all references made to the Existing Credit Agreement in the other Loan Documents or in any other instrument or document executed and/or delivered pursuant thereto shall, without any further action, be deemed to refer to this Agreement, and (ii) the Existing Credit Agreement shall be deemed amended and restated in its entirety hereby.

 

(b)                     This Agreement and the other Loan Documents executed and delivered in connection herewith are entered into and delivered to Agent and the Lenders in replacement of and substitution for, and not in payment of or satisfaction for, the Existing Credit Agreement and related documents and instruments.  This Agreement and the other Loan Documents, including, the other instruments, documents and agreements executed and delivered in connection with the Existing Credit Agreement, as the same may be or have been amended, restated or otherwise modified on or prior to the Third Restatement Closing Date, are hereby reaffirmed and shall continue in full force and effect.  Each of the Credit Parties acknowledges that the Loans and other Obligations evidenced by the Existing Credit Agreement as of the Third Restatement Closing Date have not been satisfied but instead have become part of the joint and several Loans and Obligations under this Agreement and under the other Loan Documents executed and/or delivered in connection herewith.  Each of the Credit Parties further acknowledges that (1) all of the Liens granted by Borrowers and Holdings under the Existing Security Agreement and any other Collateral Document, and (2) all instruments, documents and agreements executed in connection with the Original Loan Agreement and the Existing Credit Agreement, as the same may be or have been amended, restated or otherwise modified on or prior to the Third Restatement Closing Date, are hereby reaffirmed and shall continue hereafter to secure the Obligations under this Agreement and the other Loan Documents so long as any portion of the Obligations remains outstanding.

 

Section 10.24                      Electronic Records.  The Lenders, each Credit Party, on behalf of itself and each of their Subsidiaries, hereby acknowledge receipt of a copy of this Agreement and all other Loan Documents.  The Agent may, on behalf of each Credit Party and their Subsidiaries, create a microfilm or optical disk or other electronic image of this Agreement and any or all of the Loan Documents.  The Agent may store the electronic image of this Agreement and Loan Documents in its electronic form and then destroy the paper original as part of the Agent’s normal business practices, with the electronic image deemed to be an original and of the same legal effect, validity and enforceability as the paper originals.  The Agent is authorized, when appropriate, to convert any Note into a “transferable record” under the Uniform Electronic Transactions Act.

 

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Section 10.25                      Contractual Recognition of Bail-In.

 

Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

(a)                                 the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b)                                 the effects of any Bail-In Action on any such liability, including, if applicable:

 

(i)                                     a reduction in full or in part or cancellation of any such liability;

 

(ii)                                  a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; and

 

(iii)                               the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution Authority.

 

SECTION 11

 

GUARANTY.

 

Section 11.1                             Guaranty.  Each Credit Party (each to be referred to in this Section 11 as a Guarantor and collectively as the Guarantors) hereby agrees that it is jointly and severally liable for, and, as primary obligor and not merely as surety, absolutely and unconditionally guarantees to the Lenders the prompt payment when due, whether at stated maturity, upon acceleration or otherwise, and at all times thereafter, of Obligations as a Guarantor and all costs and expenses including, without limitation, all court costs and reasonable and documented attorneys’ and paralegals’ fees (including allocated costs of in-house counsel and paralegals) and expenses paid or incurred by the Agent, the L/C Issuers and the Lenders in endeavoring to collect all or any part of such specific Obligations from, or in prosecuting any action against, the obligor thereof (such costs and expenses, together with the Obligations, collectively the “Guarantied Obligations”).  Each Guarantor further agrees that the Guarantied Obligations may be extended or renewed in whole or in part without notice to or further assent from it, and that it remains bound upon its guarantee notwithstanding any such extension or renewal.

 

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Section 11.2                             Guaranty of Payment.  This Guaranty is a guaranty of payment and not of collection.  Each Guarantor waives any right to require the Agent, any L/C Issuer or any Lender to sue any Borrower, any Guarantor, any other guarantor, or any other Person obligated for all or any part of the Guarantied Obligations, or otherwise to enforce its payment against any collateral securing all or any part of the Guarantied Obligations.

 

Section 11.3                             No Discharge or Diminishment of Guaranty.

 

(a)                                 Except as otherwise provided for herein and to the extent provided for herein, the obligations of each Guarantor hereunder are unconditional and absolute and not subject to any reduction, limitation, impairment or termination for any reason (other than the Payment in Full in cash of the Guarantied Obligations), including: (i) any claim of waiver, release, extension, renewal, settlement, surrender, alteration, or compromise of any of the Guarantied Obligations, by operation of law or otherwise; (ii) any change in the corporate existence, structure or ownership of any Borrower or any other guarantor of or other Person liable for any of the Guarantied Obligations; (iii) any insolvency, bankruptcy, reorganization or other similar proceeding affecting any Borrower, any Guarantor, or any other guarantor of or other Person liable for any of the Guarantied Obligations, or their assets or any resulting release or discharge of any obligation of any Borrower, any Guarantor, or any other guarantor of or other Person liable for any of the Guarantied Obligations; or (iv) the existence of any claim, setoff or other rights which any Guarantor may have at any time against any Borrower, any Guarantor, any other guarantor of the Guarantied Obligations, the Agent, any L/C Issuer, any Lender, or any other Person, whether in connection herewith or in any unrelated transactions.

 

(b)                                 The obligations of each Guarantor hereunder are not subject to any defense or setoff, counterclaim, recoupment, or termination whatsoever by reason of the invalidity, illegality, or unenforceability of any of the Guarantied Obligations or otherwise, or any provision of applicable law or regulation purporting to prohibit payment by any Borrower, any Guarantor or any other guarantor of or other Person liable for any of the Guarantied Obligations, of the Guarantied Obligations or any part thereof.

 

(c)                                  Further, the obligations of any Guarantor hereunder are not discharged or impaired or otherwise affected by: (i) the failure of the Agent, any L/C Issuer or any Lender to assert any claim or demand or to enforce any remedy with respect to all or any part of the Guarantied Obligations; (ii) any waiver or modification of or supplement to any provision of any agreement relating to the Guarantied Obligations; (iii) any release, non-perfection, or invalidity of any indirect or direct security for the obligations of any Borrower for all or any part of the Guarantied Obligations or any obligations of any other guarantor of or other Person liable for any of the Guarantied Obligations; (iv) any action or failure to act by the Agent, any L/C Issuer or any Lender with respect to any collateral securing any part of the Guarantied Obligations; (v) any default, failure or delay, willful or otherwise, in the payment or performance of any of the Guarantied Obligations, or any other circumstance, act, omission or delay that might in any manner or to any extent vary the risk of such Guarantor or that would otherwise operate as a discharge of any Guarantor as a matter of law or equity (other than the Payment in Full of the Guarantied Obligations).

 

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Section 11.4                             Waiver of Defenses.  To the fullest extent permitted by applicable law, each Guarantor hereby waives any defense based on or arising out of any defense of any Borrower or any Guarantor or the unenforceability of all or any part of the Guarantied Obligations from any cause, or the cessation from any cause of the liability of any Borrower or any Guarantor, other than the Payment in Full of the Guarantied Obligations.  Without limiting the generality of the foregoing, each Guarantor irrevocably waives acceptance hereof, presentment, demand, protest and, to the fullest extent permitted by law, any notice not provided for herein, as well as any requirement that at any time any action be taken by any Person against any Borrower, any Guarantor, any other guarantor of any of the Guarantied Obligations, or any other Person.  The Agent may, at its election, foreclose on any Collateral held by it by one or more judicial or nonjudicial sales, accept an assignment of any such Collateral in lieu of foreclosure or otherwise act or fail to act with respect to any collateral securing all or a part of the Guarantied Obligations, compromise or adjust any part of the Guarantied Obligations, make any other accommodation with any Borrower, any Guarantor, any other guarantor or any other Person liable on any part of the Guarantied Obligations or exercise any other right or remedy available to it against any Borrower, any Guarantor, any other guarantor or any other Person liable on any of the Guarantied Obligations, without affecting or impairing in any way the liability of such Guarantor under this Guaranty except to the extent the Payment in Full of the Guarantied Obligations.  To the fullest extent permitted by applicable law, each Guarantor waives any defense arising out of any such election even though that election may operate, pursuant to applicable law, to impair or extinguish any right of reimbursement or subrogation or other right or remedy of any Guarantor against any Borrower, any other guarantor or any other Person liable on any of the Guarantied Obligations, as the case may be, or any security.

 

Section 11.5                             Rights of Subrogation.  No Guarantor will assert any right, claim or cause of action, including, without limitation, a claim of subrogation, contribution or indemnification that it has against any Borrower, any Guarantor, any Person liable on the Guarantied Obligations, or any collateral, until the Payment in Full in cash of the Obligations.

 

Section 11.6                             Reinstatement; Stay of Acceleration.  If at any time any payment of any portion of the Guarantied Obligations is rescinded or must otherwise be restored or returned upon the insolvency, bankruptcy, or reorganization of any Borrower or otherwise, each Guarantor’s obligations under this Guaranty with respect to that payment shall be reinstated at such time as though the payment had not been made and whether or not the Agent, the L/C Issuers and the Lenders are in possession of this Guaranty.  If acceleration of the time for payment of any of the Guarantied Obligations is stayed upon the insolvency, bankruptcy or reorganization of any Borrower, all such amounts otherwise subject to acceleration under the terms of any agreement relating to the Guarantied Obligations shall nonetheless be payable by the Guarantors forthwith on demand by the Lender.

 

Section 11.7                             Information.  Each Guarantor assumes all responsibility for being and keeping itself informed of Borrowers’ financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Guarantied Obligations and the nature, scope and extent of the risks that each Guarantor assumes and incurs under this Guaranty, and agrees that neither the Agent, any L/C Issuer nor any Lender shall have any duty to advise any Guarantor of information known to it regarding those circumstances or risks.

 

129

 

Section 11.8                             Termination.  The Lenders may continue to make loans or extend credit to any Borrower based on this Guaranty until five (5) days after the Agent receives written notice of termination from any Guarantor.  Notwithstanding receipt of any such notice, each Guarantor will continue to be liable to the Lender for any Guarantied Obligations created, assumed or committed to prior to the fifth day after receipt of the notice, and all subsequent renewals, extensions, modifications and amendments with respect to, or substitutions for, all or any part of that Guarantied Obligations.

 

Section 11.9                             Severability.  The provisions of this Guaranty are severable, and in any action or proceeding involving any state corporate law, or any state, federal or foreign bankruptcy, insolvency, reorganization or other law affecting the rights of creditors generally, if the obligations of any Guarantor under this Guaranty would otherwise be held or determined to be avoidable, invalid or unenforceable on account of the amount of such Guarantor’s liability under this Guaranty, then, notwithstanding any other provision of this Guaranty to the contrary, the amount of such liability shall, without any further action by the Guarantors or the Lenders, be automatically limited and reduced to the highest amount that is valid and enforceable as determined in such action or proceeding (such highest amount determined hereunder being the relevant Guarantor’s “Maximum Liability”.  This Section with respect to the Maximum Liability of each Guarantor is intended solely to preserve the rights of the Lenders to the maximum extent not subject to avoidance under applicable law, and no Guarantor nor any other Person or entity shall have any right or claim under this Section with respect to such Maximum Liability, except to the extent necessary so that the obligations of any Guarantor hereunder shall not be rendered voidable under applicable law. Each Guarantor agrees that the Guarantied Obligations may at any time and from time to time exceed the Maximum Liability of each Guarantor without impairing this Guaranty or affecting the rights and remedies of the Lenders hereunder, provided that, nothing in this sentence shall be construed to increase any Guarantor’s obligations hereunder beyond its Maximum Liability.

 

Section 11.10                      Contribution.  In the event any Guarantor (a “Paying Guarantor”) shall make any payment or payments under this Guaranty or shall suffer any loss as a result of any realization upon any collateral granted by it to secure its obligations under this Guaranty, each other Guarantor (each a “Non-Paying Guarantor”) shall contribute to such Paying Guarantor an amount equal to such Non-Paying Guarantor’s “Pro Rata Share” of such payment or payments made, or losses suffered, by such Paying Guarantor.  For purposes of this Section 11, each Non-Paying Guarantor’s “Pro Rata Share” with respect to any such payment or loss by a Paying Guarantor shall be determined as of the date on which such payment or loss was made by reference to the ratio of (i) such Non-Paying Guarantor’s Maximum Liability as of such date (without giving effect to any right to receive, or obligation to make, any contribution hereunder) or, if such Non-Paying Guarantor’s Maximum Liability has not been determined, the aggregate amount of all monies received by such Non-Paying Guarantor from Borrowers after the date hereof (whether by loan, capital infusion or by other means) to (ii) the aggregate Maximum Liability of all Guarantors hereunder (including such Paying Guarantor) as of such date (without giving effect to any right to receive, or obligation to make, any contribution hereunder), or to the extent that a Maximum Liability has not been determined for any Guarantor, the aggregate amount of all monies received by such Guarantors from Borrowers after the date hereof (whether by loan, capital infusion or by other means).  Nothing in this provision shall affect any Guarantor’s several liability for the entire amount of the Guarantied Obligations (up to such

 

130

 

Guarantor’s Maximum Liability).  Each of the Guarantors covenants and agrees that its right to receive any contribution under this Guaranty from a Non-Paying Guarantor shall be subordinate and junior in right of payment to the Payment in Full of the Guarantied Obligations.  This provision is for the benefit of both the Agent, the L/C Issuers, the Lenders and the Guarantors and may be enforced by any one, or more, or all of them in accordance with the terms hereof.

 

Section 11.11                      Liability Cumulative.  The liability of each Credit Party as a Guarantor under this Section 11 is in addition to and shall be cumulative with all liabilities of each Credit Party to the Agent, the L/C Issuers and the Lenders under this Agreement and the other Loan Documents to which such Credit Party is a party or in respect of any obligations of liabilities of the other Credit Parties, without any limitation as to amount, unless the instrument or agreement evidencing or creating such other liability specifically provides to the contrary.

 

Section 11.12                      Eligible Contract Participant.  Notwithstanding anything to the contrary in any Loan Document, no Guarantor shall be deemed under this Section 11 to be a guarantor of any Swap Obligations if such Guarantor was not an “eligible contract participant” as defined in §1a(18) of the Commodity Exchange Act, at the time the guarantee under this Section 11 becomes effective with respect to such Swap Obligation and to the extent that the providing of such guarantee by such Guarantor would violate the Commodity Exchange Act; provided however that in determining whether any Guarantor is an “eligible contract participant” under the Commodity Exchange Act, the guarantee of the Credit Party Obligations of such Guarantor under this Section 11 by a Guarantor that is also a Qualified ECP Guarantor shall be taken into account.

 

Section 11.13                      Keepwell.  Without limiting anything in this Section 11, each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time to each Guarantor that is not an “eligible contract participant” under the Commodity Exchange Act at the time the guarantee under this Section 11 becomes effective with respect to any Swap Obligation, to honor all of the Obligations of such Guarantor under this Section 11 in respect of such Swap Obligations (provided, however, that each Qualified ECP Guarantor shall only be liable under this Section 11.13 for the maximum amount of such liability that can be hereby incurred without rendering its undertaking under this Section 11.13, or otherwise under this Section 11, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The undertaking of each Qualified ECP Guarantor under this Section 11.13 shall remain in full force and effect until termination of the Commitments and Payment in Full of all Loans and other Obligations. Each Qualified ECP Guarantor intends that this Section 11.13 constitute, and this Section 11.13 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each Guarantor that would otherwise not constitute an “eligible contract participant” under the Commodity Exchange Act.

 

SECTION 12

 

BORROWER REPRESENTATIVE.

 

Section 12.1                             Appointment; Nature of Relationship.  MasterCraft is hereby appointed by each of the Credit Parties as its contractual representative (“Borrower Representative”)

 

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hereunder and under each other Loan Document, and each of the Credit Parties irrevocably authorizes Borrower Representative to act as the contractual representative of such Borrower with the rights and duties expressly set forth herein and in the other Loan Documents.  Borrower Representative agrees to act as such contractual representative upon the express conditions contained in this Section 12.  Additionally, Borrowers hereby appoint Borrower Representative as their agent to receive all of the proceeds of the Loans in the Funding Account, at which time Borrower Representative shall promptly disburse such Loans to the appropriate Borrower.  The Agent and the Lenders, and their respective officers, directors, agents or employees, shall not be liable to Borrower Representative, any Borrower or any other Person for any action taken or omitted to be taken by Borrower Representative or Borrowers pursuant to this Section 12.

 

Section 12.2                             Powers.  Borrower Representative shall have and may exercise such powers under the Loan Documents as are specifically delegated to Borrower Representative by the terms of each thereof, together with such powers as are reasonably incidental thereto.  Borrower Representative may execute any of its duties as Borrower Representative hereunder and under any other Loan Document by or through Responsible Officers.

 

Section 12.3                             Notices.  Each Credit Party shall immediately notify Borrower Representative of the occurrence of any Default or Event of Default hereunder referring to this Agreement describing such Default or Event of Default and stating that such notice is a “notice of default.”  In the event that Borrower Representative receives such a notice, Borrower Representative shall give prompt notice thereof to the Agent and the Lenders.  Any notice provided to Borrower Representative hereunder shall constitute notice to each Credit Party on the date received by Borrower Representative.

 

Section 12.4                             Successor Borrower Representative.  Upon the prior written consent of the Agent, Borrower Representative may resign at any time, such resignation to be effective upon the appointment of a successor Borrower Representative.  Agent shall give prompt written notice of such resignation to the Lenders.

 

Section 12.5                             Execution of Loan Documents.  Credit Parties hereby empower and authorize Borrower Representative, on behalf of the Credit Parties, to execute and deliver to the Agent and the Lenders the Loan Documents and all related agreements, certificates, documents, or instruments as shall be necessary or appropriate to effect the purposes of the Loan Documents, including without limitation, the Compliance Certificates.  Each Credit Party agrees that any action taken by Borrower Representative or the Credit Parties in accordance with the terms of this Agreement or the other Loan Documents, and the exercise by Borrower Representative of its powers set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall be binding upon all of the Credit Parties.

 

Section 12.6                             Reporting.  Each Credit Party hereby agrees that such Credit Party shall furnish to Borrower Representative all reports, notices, information and other documents required hereunder or requested by Borrower Representative to enable Borrower Representative to fulfill its duties hereunder and under the other Loan Documents on which Borrower Representative shall rely to prepare the certificates, reports, notices and other documents required pursuant to the provisions of this Agreement and the other Loan Documents.

 

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(Signature Pages Follow)

 

133

 

(Signature Page to Third

Amended and Restated Credit and Guaranty Agreement)

 

This Agreement is entered into between us for the uses and purposes hereinabove set forth as of the date first above written.

 

	
BORROWERS:
    	
MASTERCRAFT BOAT COMPANY, LLC,   a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Timothy M. Oxley
    
	
 
    	
 
    	
Timothy M. Oxley
    
	
 
    	
 
    	
Chief Financial   Officer, Treasurer & Secretary
    
	
 
    	
 
    
	
 
    	
MCBC HYDRA BOATS, LLC, a   Tennessee limited liability company
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Timothy M. Oxley
    
	
 
    	
 
    	
Timothy M. Oxley
    
	
 
    	
 
    	
Chief Financial   Officer, Treasurer & Secretary
    
	
 
    	
 
    
	
 
    	
MASTERCRAFT SERVICES, INC.,   a Tennessee corporation
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Timothy M. Oxley
    
	
 
    	
 
    	
Timothy M. Oxley
    
	
 
    	
 
    	
Chief Financial   Officer, Treasurer & Secretary
    
	
 
    	
 
    
	
 
    	
MASTERCRAFT INTERNATIONAL SALES   ADMINISTRATION, INC., a Delaware corporation
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Timothy M. Oxley
    
	
 
    	
 
    	
Timothy M. Oxley
    
	
 
    	
 
    	
Chief Financial   Officer, Treasurer & Secretary
    
	
 
    	
 
    
	
 
    	
NAUTIC STAR, LLC, a   Mississippi limited liability Company
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Timothy M. Oxley
    
	
 
    	
 
    	
Timothy M. Oxley
    
	
 
    	
 
    	
Chief Financial   Officer, Treasurer & Secretary
    

 

 

(Signature Page to Third

Amended and Restated Credit and Guaranty Agreement)

 

	
BORROWERS:
    	
NS TRANSPORT, LLC, a   Mississippi limited liability Company
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Timothy M. Oxley
    
	
 
    	
 
    	
Timothy M. Oxley
    
	
 
    	
 
    	
Chief Financial   Officer, Treasurer & Secretary
    
	
 
    	
 
    
	
 
    	
NAVIGATOR MARINE, LLC,   a Mississippi limited liability Company
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Timothy M. Oxley
    
	
 
    	
 
    	
Timothy M. Oxley
    
	
 
    	
 
    	
Chief Financial   Officer, Treasurer & Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
OTHER CREDIT PARTIES:
    	
MCBC HOLDINGS, INC.,   a Delaware corporation
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Timothy M. Oxley
    
	
 
    	
 
    	
Timothy M. Oxley
    
	
 
    	
 
    	
Chief Financial   Officer, Treasurer & Secretary
    

 

 

(Signature Page to Third

Amended and Restated Credit and Guaranty Agreement)

 

	
AGENT AND LENDER:
    	
FIFTH THIRD BANK,   an Ohio banking corporation, as a Lender, as L/C Issuer, and as Agent
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Thomas Werner
    
	
 
    	
 
    	
Authorized Signatory
    

 

 

(Signature Page to Third

Amended and Restated Credit and Guaranty Agreement)

 

	
LENDER:
    	
BANK OF AMERICA, N.A.,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Will Pridgen
    
	
 
    	
 
    	
Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address for Notices:
    
	
 
    	
 
    
	
 
    	
214 North Tryon Street
    
	
 
    	
Charlotte, North   Carolina 28255
    
	
 
    	
NC1-027-21-01
    

 

 

(Signature Page to Third

Amended and Restated Credit and Guaranty Agreement)

 

	
LENDER:
    	
JPMORGAN CHASE BANK, N.A.,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Jerry C. Greene
    
	
 
    	
 
    	
Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address for Notices:
    
	
 
    	
605 Chestnut Street
    
	
 
    	
Suite 1060
    
	
 
    	
Chattanooga, TN 37450
    

 

 

(Signature Page to Third

Amended and Restated Credit and Guaranty Agreement)

 

	
LENDER:
    	
SUNTRUST BANK
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Haynes Gentry
    
	
 
    	
 
    	
Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address for Notices:
    
	
 
    	
3333 Peachtree Rd.
    
	
 
    	
Sixth Floor
    
	
 
    	
Atlanta, GA 30326
    

 

 

(Signature Page to Third

Amended and Restated Credit and Guaranty Agreement)

 

	
LENDER:
    	
REGIONS BANK
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Amanda N. Hankins
    
	
 
    	
 
    	
Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address for Notices:
    
	
 
    	
Juan Cazorla, Managing   Director
    
	
 
    	
521 East Morehead   Street
    
	
 
    	
Charlotte, NC 28202
    

 

 

(Signature Page to Third

Amended and Restated Credit and Guaranty Agreement)

 

	
LENDER:
    	
UNITED COMMUNITY BANK
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Jeff Wilson
    
	
 
    	
 
    	
Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address for Notices:
    
	
 
    	
306 East North Street
    
	
 
    	
Greenville, SC 29601EX-10.1

 Exhibit 10.1 
  

 
  

CREDIT AGREEMENT 
 Dated as
of September 29, 2017 
 among 

TPG RE FINANCE 20, LTD., 

as the Borrower, 
 TPG RE
FINANCE PLEDGOR 20, LLC, 
 as a Guarantor, 

THE LENDERS PARTY HERETO FROM TIME TO TIME 

and 
 BANK OF AMERICA, N.A.,

 as Administrative Agent 

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, 

as 
 Sole Lead Arranger and Sole
Bookrunner 
  
  

 

 TABLE OF CONTENTS 

 

							
	 Section
	  	 	  	Page	 
	 Article I.
	  	DEFINITIONS AND ACCOUNTING TERMS	  	 	1	 
	 1.01
	  	Defined Terms	  	 	1	 
	 1.02
	  	Other Interpretive Provisions	  	 	33	 
	 1.03
	  	Accounting Terms	  	 	33	 
	 1.04
	  	Rounding	  	 	34	 
	 1.05
	  	Times of Day; Rates	  	 	34	 
	 1.06
	  	Uniform Commercial Code	  	 	34	 
			
	 Article II.
	  	LOAN PROVISIONS	  	 	34	 
	 2.01
	  	Loans	  	 	34	 
	 2.02
	  	Borrowings	  	 	36	 
	 2.03
	  	Prepayments	  	 	36	 
	 2.04
	  	Termination or Reduction of Commitments; Commitment Reinflation	  	 	38	 
	 2.05
	  	Repayment of Loans	  	 	39	 
	 2.06
	  	Interest	  	 	39	 
	 2.07
	  	Fees	  	 	40	 
	 2.08
	  	Computation of Interest and Fees	  	 	40	 
	 2.09
	  	Evidence of Debt	  	 	40	 
	 2.10
	  	Payments Generally	  	 	41	 
	 2.11
	  	Sharing of Payments by Lenders	  	 	41	 
	 2.12
	  	Extension of Maturity Date	  	 	42	 
	 2.13
	  	Increase in Commitments	  	 	43	 
	 2.14
	  	Defaulting Lenders	  	 	45	 
			
	 Article III.
	  	TAXES, YIELD PROTECTION AND ILLEGALITY	  	 	47	 
	 3.01
	  	Taxes	  	 	47	 
	 3.02
	  	Illegality	  	 	51	 
	 3.03
	  	Inability to Determine Rates	  	 	51	 
	 3.04
	  	Increased Costs; Reserves on LIBOR Rate Loans	  	 	52	 
	 3.05
	  	Mitigation Obligations; Replacement of Lenders	  	 	53	 
	 3.06
	  	Survival	  	 	54	 
			
	 Article IV.
	  	CONDITIONS PRECEDENT TO EFFECTIVENESS AND LOANS	  	 	54	 
	 4.01
	  	Conditions of Effectiveness and Initial Loan	  	 	54	 
	 4.02
	  	Conditions to all Loans with Respect to a Proposed Loan Asset	  	 	57	 
	 4.03
	  	Conditions to all Loans with Respect to Future Funding Amounts	  	 	63	 
	 4.04
	  	Conditions to all Loans with Respect to Excess Borrowing Base Capacity	  	 	64	 
			
	 Article V.
	  	SECURITY INTEREST AND COLLATERAL	  	 	65	 
	 5.01
	  	Grant of Security Interest	  	 	65	 
	 5.02
	  	Potential Pledged Assets	  	 	66	 

  
 i 

							
	 5.03
	  	Authenticated Record	  	 	66	 
	 5.04
	  	Lien on Deposit Accounts, etc.	  	 	67	 
	 5.05
	  	Delivery of Collateral; Standard of Care	  	 	67	 
	 5.06
	  	Release of Pledged Assets	  	 	68	 
	 5.07
	  	Representations and Warranties Regarding Pledged Assets	  	 	69	 
	 5.08
	  	Additional Covenants Relating to Collateral	  	 	70	 
	 5.09
	  	Further Assurances	  	 	73	 
	 5.10
	  	Collections	  	 	74	 
			
	 Article VI.
	  	REPRESENTATIONS AND WARRANTIES	  	 	74	 
	 6.01
	  	Existence, Qualification and Power	  	 	74	 
	 6.02
	  	Authorization; No Contravention	  	 	74	 
	 6.03
	  	Governmental Authorization; Other Consents	  	 	75	 
	 6.04
	  	Binding Effect	  	 	75	 
	 6.05
	  	Financial Statements; No Material Adverse Effect	  	 	75	 
	 6.06
	  	Litigation	  	 	75	 
	 6.07
	  	No Default	  	 	76	 
	 6.08
	  	Insurance	  	 	76	 
	 6.09
	  	Taxes	  	 	76	 
	 6.10
	  	ERISA	  	 	76	 
	 6.11
	  	Subsidiaries; Capital Stock	  	 	77	 
	 6.12
	  	Margin Regulations; Investment Company Act	  	 	77	 
	 6.13
	  	Disclosure	  	 	77	 
	 6.14
	  	Compliance with Laws	  	 	77	 
	 6.15
	  	Taxpayer Identification Number; Other Identifying Information	  	 	78	 
	 6.16
	  	OFAC	  	 	78	 
	 6.17
	  	Anti-Corruption Laws; Anti-Money Laundering	  	 	78	 
	 6.18
	  	EEA Financial Institution	  	 	78	 
	 6.19
	  	Collateral Documents	  	 	78	 
	 6.20
	  	Pledged Assets	  	 	78	 
	 6.21
	  	Representations as to Foreign Jurisdiction	  	 	78	 
			
	 Article VII.
	  	AFFIRMATIVE COVENANTS	  	 	79	 
	 7.01
	  	Financial Statements	  	 	79	 
	 7.02
	  	Certificates; Other Information	  	 	80	 
	 7.03
	  	Notices	  	 	82	 
	 7.04
	  	Payment of Obligations	  	 	83	 
	 7.05
	  	Preservation of Existence, Etc.	  	 	83	 
	 7.06
	  	Maintenance of Insurance	  	 	83	 
	 7.07
	  	Compliance with Laws; Contractual Obligations; Etc.	  	 	83	 
	 7.08
	  	Records and Accounts	  	 	83	 
	 7.09
	  	Inspection Rights	  	 	84	 
	 7.10
	  	Use of Proceeds	  	 	84	 
	 7.11
	  	Further Assurances	  	 	84	 
	 7.12
	  	Anti-Corruption Laws	  	 	84	 
	 7.13
	  	Maintenance of REIT Status; New York Stock Exchange Listing	  	 	84	 
	 7.14
	  	Special Purpose Entity	  	 	84	 

  
 ii 

							
	 Article VIII.
	  	NEGATIVE COVENANTS	  	 	86	 
	 8.01
	  	Liens; Negative Pledge	  	 	86	 
	 8.02
	  	Investments	  	 	86	 
	 8.03
	  	Indebtedness	  	 	86	 
	 8.04
	  	Fundamental Changes	  	 	86	 
	 8.05
	  	Dividends	  	 	87	 
	 8.06
	  	Transactions with Affiliates	  	 	87	 
	 8.07
	  	Use of Proceeds	  	 	87	 
	 8.08
	  	Amendments, Waivers and Terminations of Certain Agreements	  	 	87	 
	 8.09
	  	Activities of the Pledgor	  	 	88	 
	 8.10
	  	Accounting Changes	  	 	88	 
	 8.11
	  	Sanctions	  	 	88	 
	 8.12
	  	Anti-Corruption Laws; Anti-Money Laundering	  	 	88	 
			
	 Article IX.
	  	EVENTS OF DEFAULT AND REMEDIES	  	 	89	 
	 9.01
	  	Events of Default	  	 	89	 
	 9.02
	  	Remedies Upon Event of Default	  	 	91	 
	 9.03
	  	Application of Funds	  	 	93	 
			
	 Article X.
	  	ADMINISTRATIVE AGENT	  	 	93	 
	 10.01
	  	Appointment and Authority	  	 	93	 
	 10.02
	  	Rights as a Lender	  	 	94	 
	 10.03
	  	Exculpatory Provisions	  	 	94	 
	 10.04
	  	Reliance by Administrative Agent	  	 	95	 
	 10.05
	  	Delegation of Duties	  	 	95	 
	 10.06
	  	Resignation of Administrative Agent	  	 	96	 
	 10.07
	  	Non-Reliance on Administrative Agent and Other Lenders	  	 	97	 
	 10.08
	  	No Other Duties, Etc.	  	 	97	 
	 10.09
	  	Administrative Agent May File Proofs of Claim; Credit Bidding	  	 	97	 
	 10.10
	  	Collateral Matters	  	 	99	 
	 10.11
	  	Distribution by the Administrative Agent	  	 	99	 
			
	 Article XI.
	  	MISCELLANEOUS	  	 	99	 
	 11.01
	  	Amendments, Etc.	  	 	99	 
	 11.02
	  	Notices; Effectiveness	  	 	101	 
	 11.03
	  	No Waiver; Cumulative Remedies; Enforcement	  	 	103	 
	 11.04
	  	Expenses; Indemnity; Damage Waiver	  	 	103	 
	 11.05
	  	Payments Set Aside	  	 	106	 
	 11.06
	  	Successors and Assigns	  	 	106	 
	 11.07
	  	Treatment of Certain Information; Confidentiality	  	 	112	 
	 11.08
	  	Right of Setoff	  	 	113	 
	 11.09
	  	Interest Rate Limitation	  	 	113	 
	 11.10
	  	Counterparts; Integration; Effectiveness	  	 	114	 

  
 iii 

							
	 11.11
	  	Survival of Representations and Warranties	  	 	114	 
	 11.12
	  	Severability	  	 	114	 
	 11.13
	  	Replacement of Lenders	  	 	114	 
	 11.14
	  	Governing Law; Jurisdiction; Etc.	  	 	115	 
	 11.15
	  	Waiver of Jury Trial	  	 	116	 
	 11.16
	  	No Advisory or Fiduciary Responsibility	  	 	117	 
	 11.17
	  	Electronic Execution of Assignments and Certain Other Documents	  	 	117	 
	 11.18
	  	USA PATRIOT Act	  	 	118	 
	 11.19
	  	ENTIRE AGREEMENT	  	 	118	 
	 11.20
	  	Acknowledgement and Consent to Bail-In of EEA Financial Institutions	  	 	118	 
	 11.21
	  	Monthly Statements	  	 	119	 
	 11.22
	  	Authorized Person and Authorized Signer	  	 	119	 
	 11.23
	  	Judgment Currency	  	 	119	 
	 11.24
	  	Lender Representations Regarding ERISA	  	 	120	 
	 11.25
	  	Certain Tax Matters	  	 	121	 
			
	 Article XII.
	  	GUARANTY	  	 	122	 

  
 iv 

 SCHEDULES 
  

			
	 1.01
	 	Due Diligence
	 2.01
	 	Commitments and Applicable Percentages
	 11.02
	 	Administrative Agent’s Office; Certain Addresses for Notices
	 11.06
	 	Prohibited Transferees

 EXHIBITS 
  

			
	 A
	 	Form of Loan Notice
	 B
	 	Form of Note
	 C
	 	Form of Compliance Certificate
	 D
	 	Form of Assignment and Assumption
	 E
	 	Representations and Warranties Regarding the Pledged Assets
	 F
	 	Form of Availability Certificate
	 G
	 	Form of Pledge Proposal
	 H
	 	Form of Confirmation Statement
	 I
	 	Form of U.S. Tax Compliance Certificates
	 J
	 	Form of Borrower Remittance Instructions
	 K
	 	Form of Borrower’s Instruction Certificate
	 L
	 	Form of Redirection Letter
	 M
	 	Form of Power of Attorney
	 N
	 	Form of Escrow Letter

  
 v 

 CREDIT AGREEMENT 

This CREDIT AGREEMENT (“Agreement”) is entered into as of September 29, 2017 among TPG RE FINANCE 20, LTD., an exempted
company incorporated in the Cayman Islands with limited liability (the “Borrower”), TPG RE FINANCE PLEDGOR 20, LLC, a Delaware limited liability company (the “Pledgor”), each lender from time to time party hereto
(collectively, the “Lenders” and individually, a “Lender”), and BANK OF AMERICA, N.A., as Administrative Agent. 

The Borrower has requested that the Lenders provide a revolving credit facility, and the Lenders are willing to do so on the terms and
conditions set forth herein. 
 In consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and
agree as follows: 
 ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS 

1.01 Defined Terms. As used in this Agreement, the following terms shall have the meanings set forth below: 

“Acceptable Attorney” means Ropes & Gray LLP or any other attorney-at-law or law firm reasonably acceptable to the
Administrative Agent. 
 “Act of Insolvency” means, with respect to any Person: (i) the filing of a petition for
relief by a court having jurisdiction over such Person or any substantial part of its assets or property in an involuntary case under any applicable Insolvency Law now or hereafter in effect, or appointing a receiver, liquidator, provisional
liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for any substantial part of its assets or property, or ordering the winding-up or liquidation of such Person’s affairs, and such petition shall not be
dismissed within sixty (60) days, (ii) the commencement by such Person of a voluntary case under any applicable Insolvency Law now or hereafter in effect, (iii) the consent by such Person to the entry of an order for relief in an
involuntary case under any Insolvency Law, (iv) the consent by such Person to the appointment of or taking possession by a receiver, liquidator, provisional liquidator, assignee, custodian, trustee, sequestrator or similar official for such
Person or for any substantial part of its assets or property, (v) the making by such Person of any general assignment for the benefit of creditors, (vi) the admission in writing of the inability of such Person to pay its debts or discharge
its obligations generally as they become due or mature, (vii) the failure by such Person generally to pay its debts as they become due, (viii) the taking of any action by any governmental authority or agency or any Person, agency or entity
acting or purporting to act under governmental authority to condemn, seize or appropriate, or to assume custody or control of, all or any substantial part of the property of such Person, or shall have taken any action to displace the management of
such Person or to curtail its authority in the conduct of the business of such Person, or (ix) the taking of action by such Person in furtherance of any of the foregoing. 

“Adjusted Net Operating Income” means, with respect to any real property for any period, an amount equal to (a) the Net
Operating Income of such real property for such period, minus (to the extent not already excluded from the calculation of such Net Operating Income, and without duplication), (b) the Annual Capital Expenditure Adjustment with respect to
such property. 

  
 1 

 “Administrative Agent” means Bank of America in its capacity as administrative
agent under any of the Loan Documents, or any successor administrative agent. 
 “Administrative Agent’s Office” means
the Administrative Agent’s address and, as appropriate, account as set forth on Schedule 11.02, or such other address or account as the Administrative Agent may from time to time notify to the Borrower and the Lenders. 

“Administrative Questionnaire” means, with respect to each Lender, an administrative questionnaire in a form approved by the
Administrative Agent, submitted to the Administrative Agent duly completed by such Lender. 
 “Advance Rate” means, with
respect to each Pledged Asset, such percentage of the Market Value thereof as shall be determined by the Required Lenders in their sole and absolute discretion on or before the applicable Pledge Date as evidenced in the Confirmation Statement with
respect to such Pledged Asset, subject to adjustment as provided in this Agreement; provided that the maximum Advance Rate with respect to (a) a Pledged Asset that is a loan secured by a multifamily property will be 80% of the Market
Value thereof, (b) a Pledged Asset that is a loan secured by a lodging property will be 65% of the Market Value thereof, (c) a Pledged Asset that is a loan secured by an industrial property or an office property will be 75% of the Market
Value thereof and (d) a Pledged Asset that is a loan secured by a multi-tenant retail property will be 70% of the Market Value thereof. For the avoidance of doubt and without limitation of the foregoing, in determining the Advance Rate for any
Pledged Asset the Required Lenders will take into account the Lenders’ “look through” loan-to-value ratio with respect to such Pledged Asset, which will not in any event exceed 64% for a multifamily property, 49% for a lodging
property, 60% for an industrial or office property, 56% for a multi-tenant retail property and with respect to a mixed use property, a weighted average percentage based on the foregoing percentages while taking into account the proportional use of
such real property, in each such case, as agreed between the Administrative Agent and the Borrower. 
 “Affiliate” means,
with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified. 

“Aggregate Borrowing Base Amount” means, at any time, the sum at such time of the Borrowing Base Amount of all Pledged
Assets. 
 “Aggregate Borrowing Base Deficiency” has the meaning specified in Section 2.03(b)(ii). 

“Agreement” means this Credit Agreement. 

  
 2 

 “Annual Capital Expenditure Adjustment” means, with respect to any real
property, an amount determined in accordance with the following grid: 
  

			
	 Eligible Property Type
	  	 Annual Capital Expenditure
Amount

	Multi-Tenant Retail	  	the aggregate net rentable area (determined on a square feet basis) of such real property multiplied by $0.25
		
	Multifamily	  	$250 per unit
	Office	  	the aggregate net rentable area (determined on a square feet basis) of such real property multiplied by $0.50
		
	Industrial	  	the aggregate net rentable area (determined on a square feet basis) of such real property multiplied by $0.15
		
	Lodging	  	4% of gross revenues
	Mixed Use	  	To be based on the proportional use of such real property1

 “Anti-Money Laundering Law” means (i) all applicable requirements of the Currency and
Foreign Transactions Reporting Act of 1970 (31 U.S.C. 5311 et. seq., (the Bank Secrecy Act)), as amended by Title III of the USA Patriot Act, (ii) the Trading with the Enemy Act, (iii) Executive Order No. 13224 on Terrorist Financing,
effective September 24, 2001 (66 Fed. Reg. 49079), any other enabling legislation, executive order or regulations issued pursuant or relating thereto and (iv) other applicable federal, foreign, state or local laws relating to “know
your customer” or anti-money laundering rules and regulations. 
 “Applicable Percentage” means, with respect to any
Lender at any time, the percentage (carried out to the ninth decimal place) of the Facility Amount represented by such Lender’s Commitment at such time, subject to adjustment as provided in Section 2.14. If the commitment of each
Lender to make Loans have been terminated pursuant to Section 9.02 or if the aggregate Commitments have expired, then the Applicable Percentage of each Lender shall be determined based on the Applicable Percentage of such Lender most
recently in effect, giving effect to any subsequent assignments. The initial Applicable Percentage of each Lender is set forth opposite the name of such Lender on Schedule 2.01 or in the Assignment and Assumption or New Lender Joinder
Agreement pursuant to which such Lender becomes a party hereto, as applicable. 
 “Applicable Rate” means, for any day,
(a) in the case of a Loan made with respect to a Pledged Asset that is a loan secured by a lodging property, 2.25% per annum or (b) in the case of a Loan made with respect to any other type of Pledged Asset, 2.00% per annum. 

“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or
(c) an entity or an Affiliate of an entity that administers or manages a Lender excluding, in each case, a Prohibited Transferee. 

 

	1 	For example, for a mixed use property that includes 200 multifamily units and 100,000 square feet of retail space, the Annual Capital Expenditure Adjustment would be $75,000. [(i) 200 MF units x $250 per unit
plus (ii) 100,000 retail SF x $0.25 PSF] 

  
 3 

 “Arranger” means Merrill Lynch, Pierce, Fenner & Smith Incorporated (or
any other registered broker-dealer wholly-owned by Bank of America Corporation to which all or substantially all of Bank of America Corporation’s or any of its subsidiaries’ investment banking, commercial lending services or related
businesses may be transferred following the date of this Agreement), in its capacity as sole lead arranger and sole bookrunner. 

“Asset Reserves” means, with respect to any Pledged Asset, the escrows, reserve funds or other similar amounts properly
retained in accounts maintained by the servicer of such Pledged Asset unless and until such funds are, pursuant to the terms of the related ELA Documents, released or otherwise available to the Borrower (but not if such funds are used for the
purpose for which they were maintained, or if such funds are released to the related Mortgagor in accordance with the relevant ELA Documents). 

“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the
consent of any party whose consent is required by Section 11.06(b)), and accepted by the Administrative Agent, in substantially the form of Exhibit D or any other form (including electronic documentation generated by use of
an electronic platform) approved by the Administrative Agent. 
 “Attorney’s Bailee Letter” shall mean a letter from
an Acceptable Attorney, in form and substance reasonably acceptable to the Administrative Agent, wherein such Acceptable Attorney in possession of the ELA Documents with respect to a Table Funded Loan Asset or any other Pledged Asset with respect to
which there are Delayed Conditions (i) acknowledges receipt of the ELA Documents expressly set forth on a schedule to such Attorney’s Bailee Letter, (ii) confirms that such Acceptable Attorney is holding the same as bailee of the
Administrative Agent under such letter and (iii) agrees that such Acceptable Attorney shall deliver such ELA Documents to the Custodian by not later than the third (3rd) Business Day following the Initial Funding Date for the related Table
Funded Loan Asset or Pledged Asset, as the case may be. 
 “Audited Financial Statements” means the audited consolidated
balance sheet of Holdco and its Subsidiaries for the fiscal year ended December 31, 2016, and the related consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal year of Holdco and its
Subsidiaries, including the notes thereto. 
 “Authorized Person” means any representative of the Borrower duly designated
by the Borrower in accordance with the Borrower’s Instruction Certificate, authorized to bind the Borrower in providing draw requests and requesting disbursements of Loan proceeds. 

“Authorized Signer” means any representative of the Borrower duly designated by the Borrower in accordance with the
Borrower’s Instruction Certificate, authorized to bind the Borrower and to act for the Borrower for all purposes in connection with the Loan, including providing draw requests and requesting disbursements of Loan proceeds, obtaining information
pertaining to the Loan, requesting any action under the Loan Documents, providing any certificates, and appointing and changing any Authorized Persons. 

  
 4 

 “Availability Certificate” means a certificate, signed and certified as accurate
and complete by a Responsible Officer of the Borrower, in substantially the form of Exhibit F (or another form acceptable to the Administrative Agent) setting forth the calculation of the Maximum Available Amount in such detail as shall be
reasonably satisfactory to the Administrative Agent. All calculations of the Maximum Available Amount, the Aggregate Borrowing Base Amount and the Borrowing Base Amount with respect to any Pledged Asset in connection with the preparation of any
Availability Certificate shall originally be made by the Borrower and certified to the Administrative Agent; provided, that the Administrative Agent shall have the right to review and make reasonable adjustments to any such calculation to the
extent the Administrative Agent reasonably determines that such calculation contains errors or is not otherwise in accordance with this Agreement and notifies the Borrower of such adjustment. 

“Available Income” means, all Income other than (a) the Asset Reserves, (b) documented custodian fees payable to
the Custodian pursuant to the Custodial Agreement and (c) Qualified Servicing Expenses. 
 “Bail-In Action” means the
exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution. 

“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the
European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule. 

“Bank of America” means Bank of America, N.A. and its successors. 

“Bankruptcy Plan” has the meaning specified in Section 11.06(f)(iv). 

“Base Rate” means for any day a fluctuating rate per annum equal to the higher of (a) the Federal Funds Rate plus 1/2 of
1%, and (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate”. The “prime rate” is a rate set by Bank of America based upon various factors including
Bank of America’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in such prime rate
announced by Bank of America shall take effect at the opening of business on the day specified in the public announcement of such change. 

“Base Rate Loan” means a Loan that bears interest based on the Base Rate. 

“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of
ERISA, (b) a “plan” as defined in Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the
assets of any such “employee benefit plan” or “plan.” 
 “Borrower” has the meaning specified in the
introductory paragraph hereto. 
 “Borrower Materials” has the meaning specified in Section 7.02. 

  
 5 

 “Borrower Remittance Instructions” means the Borrower’s remittance
instructions provided from time to time in the form attached hereto as Exhibit J; provided that the Administrative Agent may rely on any Borrower Remittance Instructions delivered to the Administrative Agent until written notice is
received by the Administrative Agent revoking such instructions and/or replacing it with new Borrower Remittance Instructions, accompanied by evidence, reasonably satisfactory to the Administrative Agent, of the authority of the Person giving such
notice, and such notice shall be effective five (5) Business Days (or such shorter period as the Administrative Agent may reasonably agree) following receipt thereof by the Administrative Agent. 

“Borrower’s Instruction Certificate” means a certificate provided by or on behalf of the Borrower in the form attached
hereto as Exhibit K, designating certain Authorized Persons and Authorized Signers as set forth therein. 

“Borrowing” means a borrowing consisting of simultaneous Loans made by each of the Lenders pursuant to
Section 2.01. 
 “Borrowing Base Amount” means, for each Pledged Asset as of any date of determination, an
amount equal to (a) the Market Value of such Pledged Asset as of such date of determination, multiplied by (b) the Advance Rate for such Pledged Asset. 

“Borrowing Base Deficiency” means at any time with respect to any Pledged Asset, the amount, if any, by which the Pledged
Asset Total Outstandings at such time exceeds the Borrowing Base Amount with respect to such Pledged Asset in effect at such time. 

“Borrowing Base Deficiency Prepayment” has the meaning specified in Section 2.03(b)(ii). 

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close
under the Laws of, or are in fact closed in, the state where the Administrative Agent’s Office is located and, if such day relates to any LIBOR Rate Loan, means any such day that is also a London Banking Day. 

“Capital Lease Obligations” shall mean, for any Person, all obligations of such Person to pay rent or other amounts under a
lease of (or other agreement conveying the right to use) property to the extent such obligations are required to be classified and accounted for as a capital lease on a balance sheet of such Person under GAAP, and, for purposes of this Agreement,
the amount of such obligations shall be the capitalized amount thereof, determined in accordance with GAAP. 
 “Capital
Stock” means, with respect to any Person, all of the shares of capital stock or share capital of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such
Person of shares of capital stock or share capital of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock or share capital of (or other ownership 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 all of the other ownership 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. 

  
 6 

 “Change in Law” means the occurrence, after the date of this Agreement, 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 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. 
 “Change of Control” means the occurrence
of any one or more of the following events: 
 (a) The Sponsor shall cease to (i) own and Control, of record and
beneficially, either directly or indirectly, at least 75% of each class of the outstanding Capital Stock of Holdco or (ii) Control Holdco (subject to the rights of the Manager or an Affiliate of the Manager in its capacity as the sole manager
of Holdco); 
 (b) Holdco shall cease to (i) own and Control, of record, legally and beneficially, either directly or
indirectly, 100% of each class of the outstanding Capital Stock of the Borrower or (ii) Control the Borrower (subject to the rights of the Manager or an Affiliate of the Manager in its capacity as the sole manager of the Borrower); 

(c) Holdco shall cease to (i) own and Control, of record, legally and beneficially, either directly or indirectly, 100% of
each class of the outstanding Capital Stock of the Pledgor or (ii) Control the Pledgor (subject to the rights (if any) of the Manager or an Affiliate of the Manager in its capacity as the sole manager of the Pledgor); 

(d) the Pledgor shall cease to (i) own and Control, of record, legally and beneficially, directly, 100% of each class of
the outstanding Capital Stock of the Borrower or (ii) Control the Borrower (subject to the rights of the Manager or an Affiliate of the Manager in its capacity as the sole manager of the Borrower); 

(e) a Transfer, whether directly or indirectly through its direct or indirect subsidiaries, in one or a series of related
transactions, of all or substantially all of Holdco’s or the Sponsor’s assets (excluding any Transfer in connection with any securitization transaction or repurchase or other similar transaction entered into in the ordinary course of
Holdco’s or the Sponsor’s business); 
 (f) with respect to the Manager, (i) the sale, merger, consolidation
or reorganization of the Manager with or into any Person that is not an Affiliate of the Manager as of the date hereof, (ii) the Manager or an Affiliate of the Manager ceases for any reason to be the sole manager of the Borrower, (iii) the
Manager or an Affiliate of the Manager ceases for any reason to be the sole manager of Holdco or (iv) the Manager ceases to be Controlled by the Person or Persons who directly or indirectly Control the Manager as of the date hereof; or 

  
 7 

 (g) any “person” or “group” (as such terms are used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any
such plan) (other than the Sponsor or an Affiliate thereof or any Pre-IPO Stockholder Group) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall
be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time (such right, an “option right”)),
directly or indirectly, of 25% or more of the equity securities of the Sponsor entitled to vote for members of the board of directors or equivalent governing body of the Sponsor on a fully-diluted basis (and taking into account all such securities
that such “person” or “group” has the right to acquire pursuant to any option right). 
 “Closing Date”
means September 29, 2017. 
 “Code” means the Internal Revenue Code of 1986, as amended. 

“Collateral” means all property described in Section 5.01, all property described in any Collateral Documents as
security for any Obligations, and all other property that now or hereafter secures (or is intended to secure) any Obligations or that is or is intended to be subject to Liens in favor of the Administrative Agent for the benefit of the Secured
Parties. 
 “Collateral Documents” means, collectively, this Agreement, the Pledge Agreement, each Confirmation Statement
and each of the other agreements, instruments or documents that creates or perfects or purports to create or perfect a Lien in favor of the Administrative Agent for the benefit of the Secured Parties. 

“Collection Account” means a segregated non-interest bearing account established at Bank of America in the name of the
Borrower with ABA# 026009593 and Account Number# 4451252801. 
 “Commitment” means, as to each Lender, its obligation to
make Loans to the Borrower pursuant to Section 2.01, in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01 or in the Assignment and
Assumption or the New Lender Joinder Agreement pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement. 

“Compliance Certificate” means a certificate substantially in the form of Exhibit C duly executed by the chief
executive officer, chief financial officer, treasurer, vice president, transactions or controller of Holdco. 

“Condemnation” means any taking of title to, use of, or any other interest in any property under the exercise of the power of
condemnation or eminent domain, whether temporarily or permanently, by any Governmental Authority or by any other Person acting under or for the benefit of a Governmental Authority. 

  
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 “Condemnation Awards” means any and all judgments, awards of damages (including
severance and consequential damages), payments, proceeds, settlements, amounts paid for a taking in lieu of Condemnation, or other compensation heretofore or hereafter made, including interest thereon, and the right to receive the same, as a result
of, or in connection with, any Condemnation or threatened Condemnation. 
 “Confirmation Statement” means, with respect to
an Eligible Loan Asset, a written confirmation statement between the Administrative Agent and the Borrower in substantially the form of Exhibit H. 

“Concentration Limits” has the meaning specified in Section 2.01(a). 

“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. 
 “Contractual Obligation” means, as to any Person, any provision of any
security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound. 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto. 

“Credit Event” means, with respect to any Pledged Asset, changes that are material and adverse in terms of the financial
performance of such Pledged Asset or the physical condition of the related Mortgaged Property (i.e., changes that adversely impact the value of the collateral other than to a de minimis extent and in any case relative to and consistent with
Administrative Agent’s initial underwriting or most recent determination of Market Value) including (i) factors adversely affecting the Mortgaged Property related to such Pledged Asset, (ii) decreases in net operating income or cash
flow other than Underwritten Events, (iii) termination or pending termination of one or more Major Leases for which no replacement tenant has been, or is reasonably expected to be found by the date that such lease or leases are to expire or
has/have expired (other than any scheduled expiration of any Major Lease or other Underwritten Events), (iv) an adverse change in the operations, property, assets, business, or financial condition of any borrower(s) and/or guarantors(s) with
respect to such Pledged Asset, taken as a whole, (v) a breach of any representation or warranty made with respect to such Pledged Asset (subject to any exceptions thereto disclosed in writing to the Administrative Agent on or prior to the
related Pledge Date and set forth in the Confirmation Statement) or (vi) any risks posed by any litigation or governmental action related to such Pledged Asset or the related Mortgaged Property or Mortgaged Properties; provided that a
“Credit Event” shall not be deemed to have occurred solely as a result of any disruption in the commercial mortgage backed securities market, capital markets or credit markets, or any other event that results in the increase or decrease of
interest rate spreads or other similar benchmarks (including, without limitation, treasuries, interest rate swaps, LIBOR or the Base Rate). 

  
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 “Credit Exposure” means, as to any Lender at any time, the aggregate principal
amount at such time of its outstanding Loans. 
 “Custodial Agreement” shall mean the Custodial Agreement, dated as of the
date hereof, by and among the Custodian, the Borrower and the Administrative Agent, or any successor agreement thereto approved in writing by the Administrative Agent in its sole discretion, as may be amended from time to time in accordance with the
terms thereof. 
 “Custodial Delivery Certificate” shall mean a certificate executed by the Borrower in order to deliver to
the Administrative Agent or its designee (including the Custodian) the ELA Documents with respect to an Eligible Loan Asset pursuant to this Agreement, substantially in the form of Annex 1 to the Custodial Agreement. 

“Custodian” shall mean U.S. Bank National Association, or any successor Custodian approved in writing by the
Administrative Agent in its sole discretion. 
 “Debt Yield” means, as of any date of determination, the ratio of
(a) the aggregate Adjusted Net Operating Income for each Mortgaged Property securing a Pledged Asset during the period of four full calendar quarters ended on such date (if such date is the last day of a calendar quarter) or most recently ended
prior to such date (if such date is not the last day of a calendar quarter) to (b) the aggregate Pledged Asset Total Outstandings on such date for all Pledged Assets. 

“Debt Yield Maintenance Payment” has the meaning specified in Section 2.03(c). 

“Default” means any 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 an interest rate equal to (a) the
LIBOR Daily Floating Rate plus (b) the Applicable Rate, if any, applicable to LIBOR Rate Loans plus (c) 5% per annum; provided, however, that with respect to a Base Rate Loan, the Default Rate shall be an
interest rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan plus 5% per annum. 

“Defaulting Lender” means, subject to Section 2.14(b), any Lender that (a) has failed to (i) fund all
or any portion of its Loans within two Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s
determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the
Administrative Agent or any other Lender any other amount required to be paid by it hereunder within two Business Days of the date when due, (b) has notified the Borrower or the Administrative Agent in writing that it does not intend to comply
with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is

  
 10 

 
based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing
or public statement) cannot be satisfied), (c) has failed, within three Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with
its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), or (d) has,
or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Insolvency Law, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of
creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity, or (iii) become
the subject of a Bail-In Action; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any Capital Stock in that Lender or any direct or indirect parent company thereof by a Governmental
Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such
Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of
clauses (a) through (d) above, and of the effective date of such status, shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to
Section 2.14(b)) as of the date established therefor by the Administrative Agent in a written notice of such determination, which shall be delivered by the Administrative Agent to the Borrower and each other Lender promptly following
such determination. 
 “Designated Jurisdiction” means any country, region or territory to the extent that such country,
region or territory itself is the subject of any Sanction. 
 “Diligence Material” means with respect to any Proposed Loan
Asset, collectively, (a) the Due Diligence Package and (b) any other diligence materials delivered by or on behalf of the Borrower to the Administrative Agent (for distribution to the Lenders) in connection with the Administrative
Agent’s and Lenders’ review of any Proposed Loan Asset pursuant to a request from the Administrative Agent. 

“Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition (including any sale
and leaseback transaction) of any property by any Person, including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith. 

“Dollar” and “$” mean lawful money of the United States. 

“Due Diligence Package” means, with respect to any Eligible Loan Asset, all of the information deemed necessary or desirable
by the Administrative Agent or the Required Lenders for the Administrative Agent or the Required Lenders to perform their underwriting and due diligence with respect to such Eligible Loan Asset. Such information shall include, without limitation,
the materials listed on Schedule 1.01 to the extent such materials are applicable to such Eligible Loan Asset. 

  
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 “EEA Financial Institution” means (a) any credit institution or investment
firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this
definition, or (c) any financial institution established in an EEA Member Country which is a Subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

 “EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway. 

“EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative
authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution. 

“ELA Documents” means, with respect to an Eligible Loan Asset, the documents specified in Section 4.02(j),
together with any additional documents and information required to be delivered to the Administrative Agent or the Lenders or their designee (including the Custodian) pursuant to this Agreement (including the ELA Schedule with respect to such
Eligible Loan Asset). 
 “ELA Schedule” means, with respect to any Eligible Loan Asset, a written schedule of each of the
ELA Documents attached to the Custodial Delivery Certificate with respect to such Eligible Loan Asset containing information consistent with the Diligence Material provided for such Eligible Loan Asset. 

“Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 11.06(b)(iii),
and (v) (subject to such consents, if any, as may be required under Section 11.06(b)(iii)). 
 “Eligible
Loan Assets” means each performing Senior Loan, performing Mezzanine Loan originated in connection with a performing Senior Loan that the Borrower is simultaneously pledging to the Administrative Agent hereunder, and performing
Participation Interest owned by the Borrower, as and if approved by the Administrative Agent and the Required Lenders on a case by case basis in their sole and absolute discretion on or prior to the applicable Pledge Date which approval shall be
evidenced by the execution and delivery of a Confirmation Statement. 
 “Eligible Property Types” means and includes the
following types of real properties: office, industrial, multifamily, multi-tenant retail, mixed use and lodging commercial properties, in each case located in a state within the United States or the District of Columbia or any other type of real
property approved by the Administrative Agent in its sole discretion. 
 “Environmental Laws” means any and all federal,
state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the
environment or the release of any materials into the environment, including those related to hazardous substances or wastes, air emissions and discharges to waste or public systems. 

  
 12 

 “Environmental Liability” means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower, any other Loan Party or any of their respective Subsidiaries directly or indirectly resulting from or based upon
(a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release
of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing. 

“ERISA” means the Employee Retirement Income Security Act of 1974, and the rules and regulations promulgated thereunder. 

“ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with any Loan Party within
the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code). 

“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) the withdrawal of any Loan Party or
any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which such entity was a “substantial employer” as defined in Section 4001(a)(2) of ERISA or a cessation of operations that is treated
as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing
of a notice of intent to terminate, the treatment of a Pension Plan amendment as a termination under Section 4041 or 4041A of ERISA; (e) the institution by the PBGC of proceedings to terminate a Pension Plan; (f) any event or
condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; (g) the determination that any Pension Plan is considered an at-risk plan or a plan in
endangered or critical status within the meaning of Sections 430, 431 and 432 of the Code or Sections 303, 304 and 305 of ERISA; or (h) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent
under Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate. 
 “EU Bail-In Legislation Schedule” means the
EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time. 

“Event of Default” has the meaning specified in Section 9.01. 

“Exception Notice” means, as of any date, a written notice by the Borrower to the Administrative Agent with respect to a
Pledged Asset which notice identifies the existence of a breach of one or more representations or warranties set forth in Exhibit E with respect to such Pledged Asset, which notice sets forth a reasonably detailed description of the relevant
breach or breaches and stating what action (if any) the Borrower has taken and proposes to take with respect thereto. 

  
 13 

 “Excess Borrowing Base Capacity” means, with respect to any Pledged Asset as of
any date, the amount, if any, by which (a) the Borrowing Base Amount for such Pledged Asset exceeds (b) such Pledged Asset’s Pledged Asset Total Outstandings. 

“Excluded Taxes” means any of the following Taxes imposed on or with respect to any Recipient or required to be withheld or
deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws
of, or having its principal office or, in the case of any Lender, its Lending Office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a
Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such
interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 11.13) or (ii) such Lender changes its Lending Office, except in each case to the extent that, pursuant to
Section 3.01(a) or (c), amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its Lending Office,
(c) Taxes attributable to such Recipient’s failure to comply with Section 3.01(e) or Section 3.01(f) and (d) any U.S. federal withholding Taxes imposed pursuant to FATCA. 

“Exempt Release Transaction” means a Release Transaction that is: 

(a) related to a Pledged Asset that is being repaid or prepaid in whole or in part by the applicable Mortgagor; 

(b) necessary to permit the foreclosure or other exercise of remedies under the ELA Documents related to such Pledged Asset;

 (c) undertaken to cure any Default or is related to the Borrower’s compliance with Concentration Limits; 

(d) related to the Lenders’ failure to fund their pro rata portion (based on the Advance Rate with respect thereto) of any
Future Funding Amount with respect to such Pledged Asset where all conditions precedent to the Lenders’ funding set forth in Section 4.03 have been satisfied; 

(e) requested by the Borrower following a request from any Lender for compensation under Section 3.04, or if the
Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01; 

(f) requested by the Borrower at a time when the LIBOR Floating Daily Rate shall for any reason be deemed to equal the Base
Rate; or 

  
 14 

 (g) requested by the Borrower in response to a demand by the Administrative Agent
that the Borrower make (i) a Specified Prepayment of Loans with respect to such Pledged Asset in order to eliminate a Borrowing Base Deficiency that is caused solely by a determination made by the Required Lenders to reduce the Market Value of
such Pledged Asset (expressed as a percentage of the then outstanding principal balance of the Pledged Asset) to an amount that is less than 95% of the then current outstanding principal balance of such Pledged Asset or (ii) a Debt Yield
Maintenance Payment, if immediately after giving pro forma effect to such Release Transaction and any Debt Yield Maintenance Payment made and the application of any such Debt Yield Maintenance Payment in respect of other Pledged Assets identified by
the Borrower to the Administrative Agent in accordance with Section 2.03(c), the Debt Yield would at least equal the Facility Debt Yield Threshold. 

“Extended Maturity Date” has the meaning specified in Section 2.12(a). 

“Extension Effective Date” has the meaning specified in Section 2.12(b). 

“Extension Notice” has the meaning specified in Section 2.12(a). 

“Facility Amount” means at any time the aggregate amount of the Commitments of all the Lenders then in effect. On the Closing
Date, the Facility Amount is $250,000,000. 
 “Facility Debt Yield Threshold” means 7.2%. 

“FASB ASC” means the Accounting Standards Codification of the Financial Accounting Standards Board. 

“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version
that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code, any
intergovernmental agreements relating to the foregoing, or any U.S. or non-U.S. fiscal or regulatory legislation, rules, guidance notes or practices adopted pursuant to such intergovernmental agreements. 

“Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate
for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate
for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Bank of America on such day on such transactions as determined by the Administrative Agent. 

“Fee Letter” means the letter agreement, dated September 29, 2017, among the Borrower, the Administrative Agent and the
Arranger. 
 “Financial Covenants” means the financial covenants set forth in Section 9 of the Holdco Guaranty. 

  
 15 

 “Foreign Lender” means (a) if the Borrower is a U.S. Person, a Lender that
is not a U.S. Person, and (b) if the Borrower is not a U.S. Person, a Lender that is resident or organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes. For purposes of this definition, the
United States, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction. 

“FRB” means the Board of Governors of the Federal Reserve System of the United States. 

“Fund” means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or
otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities. 
 “Funding
Period” means the period from and including the Closing Date to the earliest of (a) the Initial Maturity Date; provided that if the Maturity Date is extended pursuant to Section 2.12(a), the date in this clause
(a) shall be the Extended Maturity Date, (b) the date of termination of the entire Facility Amount or the permanent reduction of the Facility Amount to zero pursuant to Section 2.04, and (c) the date of termination of the
commitment of each Lender to make Loans pursuant to Section 9.02. 
 “Future Funding Amount” means, with
respect to any Future Funding Pledged Asset as of any date of determination, the aggregate amount of future funding advances that the Borrower is committed to make under the ELA Documents (subject to applicable conditions precedent therefor)
relating to such Future Funding Pledged Asset as set forth in the Confirmation Statement with respect to such Future Funding Pledged Asset minus all advances made by the Borrower with respect to such Future Funding Pledged Asset during the
period from the applicable Pledge Date to such date of determination. 
 “Future Funding Pledged Asset” means any Pledged
Asset with respect to which the Borrower has requested that the Required Lenders agree to fund future funding advances and the Required Lenders have agreed, in the related Confirmation Statement, to fund portions thereof equal to the Advance Rate of
such future funding advances. 
 “GAAP” means generally accepted accounting principles in the United States set forth in
the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved
by a significant segment of the accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied. 

“Governmental Authority” means the government of the United States or any other nation, or of any political subdivision
thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining
to government (including any supra-national bodies such as the European Union or the European Central Bank). 

  
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 “Guarantee” means, as to any Person, any obligation of such Person directly or
indirectly guaranteeing any Indebtedness of any other Person or in any manner providing for the payment of any Indebtedness of any other Person or otherwise protecting the holder of such Indebtedness against loss (whether by virtue of partnership
arrangements, by agreement to keep-well, to purchase assets, goods, securities or services, or to take-or-pay or otherwise); provided that the term “Guarantee” shall not include endorsements for collection or deposit in the ordinary
course of business. The amount of any Guarantee of a Person shall be deemed to be an amount equal to the maximum reasonably anticipated liability in respect thereof as determined by such Person in accordance with GAAP. The terms
“Guarantee” and “Guaranteed” used as verbs shall have correlative meanings. The term “Guarantee” and “Guaranteed” used as verbs shall have correlative meanings. 

“Guarantors” means, collectively, Holdco and the Pledgor. 

“Guaranty Agreements” means, collectively the Holdco Guaranty and the Guaranty made by the Pledgor under Article XII
in favor of the Secured Parties. 
 “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes
of any nature regulated pursuant to any Environmental Law. 
 “Hedging Arrangements” means an arrangement designed to
protect a Person from fluctuations in interest rates or asset values and not acquired by a Person for speculation. 

“Holdco” mean TPG RE Finance Trust Holdco, LLC, a Delaware limited liability company. 

“Holdco Guaranty” means the Guaranty, dated as of the date hereof, made by Holdco in favor of the Administrative Agent and
the Lenders. 
 “Income” means, with respect to any Pledged Asset at any time, any payment or other cash distribution
thereon of principal, interest, dividends, fees, reimbursements or proceeds thereof (including sales proceeds) or other cash distributions thereon (including casualty or condemnation proceeds) and any other collections from whatever source received
by the Servicer in connection with or on account of such Pledged Asset. 
 “Indebtedness” means, as to any Person at a
particular time, without duplication, the following to the extent they are included as indebtedness or liabilities in accordance with GAAP: 

(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 an understanding or agreement, contingent or otherwise, to repurchase such property from such Person); 

  
 17 

 (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 sixty (60) days of
the date the respective goods are delivered or the respective services are rendered; 
 (c) Indebtedness of others secured by
a lien on the property of such Person, whether or not the respective Indebtedness 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 the account of such Person; 
 (e) Capital Lease Obligations of such
Person; 
 (f) obligations of such Person under repurchase agreements, sale/buy-back agreements or like arrangements; 

(g) Indebtedness of others Guaranteed by such Person; 

(h) all obligations of such Person incurred in connection with the acquisition or carrying of fixed assets by such Person; 

(i) Indebtedness of general partnerships of which such Person is a general partner; and 

(j) all net liabilities or obligations under any interest rate swap, interest rate cap, interest rate floor, interest rate
collar or other hedging instrument or agreement. 
 “Indemnified 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 any Loan Party under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes. 

“Indemnitee” has the meaning specified in Section 11.04(b). 

“Information” has the meaning specified in Section 11.07. 

“Initial Funding Date” means, with respect to any Pledged Asset, the date of the initial Borrowing with respect to such
Pledged Asset. 
 “Initial Maturity Date” means September 29, 2020; provided, however, that if such date
is not a Business Day, the Initial Maturity Date shall be the next preceding Business Day. 
 “Insolvency Law” means the
Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United
States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally. 

  
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 “Insurance Proceeds” means the insurance claims under and the proceeds of any
and all policies of insurance covering any property or any part thereof, including all returned and unearned premiums with respect to any insurance relating to such property, in each case whether now or hereafter existing or arising. 

“Interest Payment Date” means (a) the twentieth
(20th) calendar day of each month or, if such calendar day is not a Business Day, the next succeeding Business Day and (b) the Maturity Date. 

“Investment” means, as to any Person, (a) any direct or indirect acquisition or investment by such Person, whether by
means of the acquisition of any real property or real property-related assets (including mortgage loans and other real estate-related debt investments, investments in land holdings, and costs to construct real property assets under development) or
tangible personal property or of any stock or other security or equity participation or interest in, another Person, including any partnership or joint venture interest in such other Person and any arrangement pursuant to which the investor
Guarantees Indebtedness of such other Person, (b) any loan, advance, bank deposit, money market fund, contribution to capital, Guarantee or assumption of debt or extension of credit (except for accounts receivable arising in the ordinary course
of business and payable in accordance with customary terms), or (c) any purchase or commitment or option to purchase or otherwise acquire real estate or tangible personal property or stock or other securities of any party or any part of the
business or assets comprising such business, or any part thereof. For purposes of covenant compliance, the amount of any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such
Investment. 
 “IPO Transaction” means that certain initial underwritten public offering of common Capital Stock of the
Sponsor on the New York Stock Exchange which occurred on July 20, 2017. 
 “IRS” means the United States Internal
Revenue Service. 
 “Laws” means, collectively, all international, foreign, federal, state and local statutes, treaties,
rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or
administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law. 

“Legal Requirements” means all applicable federal, state, county and local laws, by-laws, rules, regulations, codes and
ordinances, and the requirements of any governmental agency or authority having or claiming jurisdiction with respect thereto, including, but not limited to, those applicable to any Pledged Assets, zoning, subdivision, building, health, fire,
safety, sanitation, the protection of the handicapped, and environmental matters and shall also include all orders and directives of any court, governmental agency or authority having or claiming jurisdiction with respect thereto. 

“Lender” has the meaning specified in the introductory paragraph hereto. 

  
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 “Lending Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify the Borrower and the Administrative Agent, which office may include any Affiliate of such Lender or any
domestic or foreign branch of such Lender or such Affiliate. Unless the context otherwise requires each reference to a Lender shall include its applicable Lending Office. 

“LIBOR” means the London Interbank Offered Rate. 

“LIBOR Daily Floating Rate” means, for any day, a fluctuating rate of interest per annum equal to LIBOR (or if such rate is
not available, a comparable or successor rate that is approved by the Administrative Agent) as published on the applicable Bloomberg screen page (or such other commercially available source providing such quotations as may be designated by the
Administrative Agent from time to time) at or about 11:00 a.m., London time, two (2) London Banking Days prior to such date, for Dollar deposits with a term of one (1) month commencing that day; provided that to the extent a
comparable or successor rate is approved by the Administrative Agent in connection herewith, the approved rate shall be applied in a manner consistent with market practice; provided, further, that to the extent such market practice is
not administratively feasible for the Administrative Agent, such approved rate shall be applied in a manner as otherwise reasonably determined by the Administrative Agent. 

Notwithstanding anything to the contrary contained herein, at any time the LIBOR Daily Floating Rate determined in accordance with the
foregoing is less than zero, such rate shall be deemed zero for purposes of this Agreement. 
 “LIBOR Rate Loan” means a
Loan that bears interest at a rate based on the LIBOR Daily Floating Rate. 
 “Lien” means any mortgage, pledge,
hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever
(including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property, and any financing lease having substantially the same economic effect as any of the foregoing). 

“Loan” has the meaning specified in Section 2.01. 

“Loan Documents” means this Agreement, each Note, each Collateral Document, the Servicing Agreement, the Custodial Agreement,
the Guaranty Agreements, the Fee Letter and any other document or instrument evidencing or relating to the Obligations and any other document or instrument delivered by or on behalf of any of the Borrower, Holdco or the Pledgor from time to time in
connection with this Agreement or any of the other foregoing documents or instruments. 
 “Loan Notice” means a notice of a
Borrowing, which shall be substantially in the form of Exhibit A or such other form as may be approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by
the Administrative Agent), appropriately completed and signed by an Authorized Signer. 

  
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 “Loan Parties” means, collectively, the Borrower, Holdco and the Pledgor. 

“London Banking Day” means any day on which dealings in Dollar deposits are conducted by and between banks in the London
interbank eurodollar market. 
 “Major Lease” with respect to any Pledged Asset, has the meaning set forth in the related
Confirmation Statement for such Pledged Asset. 
 “Management Fees” means, with respect to any real property, an amount
equal to the greater of (a) actual management fees payable with respect thereto and (b) three percent (3.0%) per annum on the aggregate base rent and percentage rent due and payable under leases with respect thereto. 

“Manager” means TPG RE Finance Trust Management, L.P., a Delaware limited partnership. 

“Market Value” means, with respect to any Pledged Asset as of any date an amount in Dollars determined by the Required
Lenders in their sole and absolute discretion, exercised in good faith. Without limiting the foregoing: 
 (i) the Market
Value of any Pledged Asset in respect of which a complete set of the ELA Documents has been delivered to the Custodian shall be zero ($0) if at any time following such delivery the Custodian has released from its possession any of such ELA Documents
other than in accordance with Section 5.01, 5.02 or 5.04 of the Custodial Agreement; 
 (ii) the Market Value may be
determined by the Administrative Agent to be zero ($0) for any Pledged Asset with respect to which (A) an event of default beyond applicable notice and grace periods has occurred and is continuing, (B) the borrower or any guarantor of such
Pledged Asset is in bankruptcy, (C) a material breach of a representation or warranty set forth on Exhibit E with respect to such Pledged Asset (subject to any exceptions set forth in the applicable Confirmation Statement) has occurred
and is continuing, (D) other than in the case of a Table Funded Loan Asset or any other Pledged Asset with respect to which there are Delayed Conditions, a Trust Receipt confirming receipt by the Custodian of a complete set of the ELA Documents
has not been delivered to the Administrative Agent on or prior to the Initial Funding Date with respect to such Pledged Asset, or (E) in the case of a Table Funded Loan Asset or any other Pledged Asset with respect to which there are Delayed
Conditions, Custodian has not delivered to the Administrative Agent a Trust Receipt confirming receipt by the Custodian of a complete set of the ELA Documents within four Business Days after the Initial Funding Date with respect to such Pledged
Asset; provided that, notwithstanding the foregoing but subject to clause (i) above and except with respect to subclause (D) and (E) of this clause (ii), the Administrative Agent shall not reduce the Market Value of any Pledged
Asset from the Market Value of such Pledged Asset as of the Pledge Date for such asset unless a Credit Event shall have occurred and be continuing with respect to such Pledged Asset. 

  
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 “Material Adverse Effect” means a material adverse change in, or a material
adverse effect upon (a) the ability of the Loan Parties, taken as a whole, to fulfill their obligations under this Agreement or any other Loan Document, including repayment of any portion of the Loan, both principal and interest, when due;
(b) the validity or enforceability of this Agreement or any other Loan Document; (c) the rights, remedies and benefits available to, or conferred upon, the Administrative Agent or any of the Lenders under the Loan Documents; or
(d) the property, business operations or financial condition of Holdco and its Subsidiaries, taken as a whole on a consolidated basis. 

“Material Non-Monetary Default” means a Default arising under Section 9.01(b), 9.01(e), 9.01(f),
9.01(g), 9.01(h), 9.01(j), 9.01(k) or 9.01(m). 
 “Maturity Date” means the later of
(a) the Initial Maturity Date and (b) if maturity is extended pursuant to Section 2.12, such extended maturity date as determined pursuant to such Section; provided, however, that, in each case, if such date is
not a Business Day, the Maturity Date shall be the next preceding Business Day. 
 “Maturity Extension Reduction” means, as
of any Extension Effective Date, if any, occurring after the Extended Maturity Date, an amount equal to the positive difference, if any, between (a) the Facility Amount on such date and (b) the sum of (i) the Maximum Available Amount
on such date plus (ii) an amount equal to the sum of the products of the Advance Rate for each Future Funding Pledged Asset multiplied by the Future Funding Amount with respect to each such Future Funding Pledged Asset on such
date. 
 “Maximum Available Amount” means, on any date of determination, the lesser of (a) the Facility Amount at such
time and (b) the Aggregate Borrowing Base Amount at such time. 
 “Mezzanine Loan” means any fixed or floating whole
Mezzanine Loan secured, in whole or in part, by a first priority pledge of, or security interest in, the direct ownership interest in the Mortgagor for the related Senior Loan. For the avoidance of doubt, no Mezzanine Loan will be an Eligible Loan
Asset unless the related Senior Loan is also an Eligible Loan Asset. 
 “Mezzanine Note” shall mean a note or other
evidence of indebtedness of a Mezzanine Loan. 
 “Mortgage” means the mortgage, deed of trust, deed to secure debt or other
instruments, creating a valid and enforceable first lien on or a first priority ownership interest in a Mortgaged Property. 

“Mortgage Loan” means a Senior Loan, a Mezzanine Loan or a Participation Interest. 

“Mortgage Note” means a note or other evidence of indebtedness of a Mortgagor secured by a Mortgage. 

“Mortgaged Property” means, collectively, the real property or properties securing repayment of the debt evidenced by a
Mortgage Note or Mortgage Notes including any Mortgaged Property securing a Mortgage Note relating to a Participation Interest, and with respect to a Mezzanine Loan, the real property or properties owned by the Person the direct equity interests of
which are pledged as collateral security for such Mezzanine Loan, which real property or properties secure repayment of the related Senior Loan. 

  
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 “Mortgagor” means, the obligor on a Mortgage Note and/or the grantor of the
related Mortgage and the owner of the related Mortgaged Property and, with respect to a Mezzanine Loan or a Participation Interest, the borrower or borrowers under the related Mortgage Loan secured by the related Mortgaged Property. 

“Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which the
Borrower or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions. 

“Multiple Employer Plan” means an employee benefit plan which has two or more contributing sponsors (including the Borrower
or any ERISA Affiliate) at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA. 

“Negative Pledge” means, a provision of any agreement (other than any Loan Document) that prohibits the creation of any Lien
on any assets of a Person to secure the Obligations; provided, however, that an agreement relating to the sale of a property that limits the creation of any Lien pending the closing of the sale thereof shall not constitute a
“Negative Pledge”. 
 “Net Income” means, for any period, with respect to any Person, the consolidated net income
(or loss) for such period as reported in such Person’s financial statements prepared in accordance with GAAP. 
 “Net Operating
Income” means, with respect to any real property for any period, (a) property rental and other income derived from the operation of such property from tenants in occupancy and paying rent as determined in accordance with generally
accepted accounting principles) minus (b) expenses incurred in connection with and directly attributable to the ownership and operation of such real property for such period, including, without limitation, Management Fees and amounts
accrued for the payment of real estate taxes and insurance premiums on an annualized basis reasonably acceptable to the Administrative Agent, but excluding (i) any corporate-level general and administrative expenses related to the operation of
the underlying obligors of the related Pledged Asset, (ii) any interest expense or other debt service charges, (iii) capital expenditures and (iv) any non-cash charges such as depreciation or amortization of financing costs. 

“New Lender Joinder Agreement” has the meaning specified in Section 2.13(c). 

“Non-Consenting Lender” means any Lender that does not approve any consent, waiver or amendment that (a) requires the
approval of all Lenders or all affected Lenders in accordance with the terms of Section 11.01 and (b) has been approved by the Required Lenders. 

“Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such time. 

  
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 “Note” means a promissory note made by the Borrower in favor of a Lender
evidencing Loans made by such Lender, substantially in the form of Exhibit B. 
 “Obligations” means all
advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party arising under any Loan Document with respect to any Loan, in each case whether direct or indirect (including those acquired by assumption), absolute or
contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Loan Party of any proceeding under any Insolvency Law naming such Person as the debtor in such
proceeding, regardless of whether such interest and fees are allowed claims in such proceeding. 
 “OFAC” means the Office
of Foreign Assets Control of the United States Department of the Treasury. 
 “Organization Documents” means, (a) with
respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement; (c) with respect to any exempted company, the certificate of incorporation and memorandum and articles of association and (d) with respect to any partnership,
joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its
incorporation, formation or organization with the applicable Governmental Authority in the jurisdiction of its incorporation, formation or organization and, if applicable, any certificate or articles of incorporation, formation or organization of
such entity. 
 “Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or
former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient 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 Loan or Loan Document). 

“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that
arise 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 Other Connection Taxes imposed with respect to an assignment, grant of a participation, designation of a different Lending Office, or other transfer (other than an assignment or designation of a different Lending Office made pursuant to
Section 3.05). 
 “Participant” has the meaning specified in Section 11.06(d). 

“Participant Register” has the meaning specified in Section 11.06(d). 

“Participation Certificate” means the original participation certificate (or authorized replacement thereof), if any, that
was executed and delivered in connection with a Participation Interest. 

  
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 “Participation Interest” means either (a) a senior controlling
participating beneficial ownership interest in a first mortgage whole loan and the proceeds thereof, which participation interest is senior in right of payment relative to other participation interests and which such senior participant will control
and direct the decisions with respect to the first mortgage whole loan notwithstanding that the participant(s) holding the junior participation interest(s) may have certain market consent rights with respect to major decisions; provided,
however, for the avoidance of doubt, in no event shall such consent rights impede or affect the economic rights of the holder of the participation interest (including the timing of any payments owed to the senior participant), or (b) a
senior participating beneficial ownership interest in a first mortgage whole loan and the proceeds thereof, which senior participation interest may rank pari passu in right of payment relative to other participation interests, and in each case
including all rights and privileges allocable to the participant holding such participation interest specified in the related participation agreement. 

“PBGC” means the Pension Benefit Guaranty Corporation. 

“Pension Act” means the Pension Protection Act of 2006. 

“Pension Funding Rules” means the rules of the Code and ERISA regarding minimum required contributions (including any
installment payment thereof) to Pension Plans and set forth in, with respect to plan years ending prior to the effective date of the Pension Act, Section 412 of the Code and Section 302 of ERISA, each as in effect prior to the Pension Act
and, thereafter, Section 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA. 
 “Pension
Plan” means any employee pension benefit plan (including a Multiple Employer Plan or a Multiemployer Plan) that is maintained or is or has been contributed to by the Borrower and any ERISA Affiliate within the previous six (6) years
and is either covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the Code. 

“Permitted Liens” means: 

(a) Liens pursuant to any Loan Document; 

(b) Liens securing judgments for the payment of money not constituting an Event of Default under Section 9.01(h); and 

(c) Liens for Taxes not yet due or Liens for Taxes which are being contested in good faith and by appropriate proceedings diligently
conducted, and for which adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP. 

“Person” means any natural person, corporation, limited liability company, exempted company, trust, joint venture,
association, company, partnership, Governmental Authority or other entity. 
 “Plan” means any employee benefit plan within
the meaning of Section 3(3) of ERISA (including a Pension Plan), which is subject to Title I of ERISA maintained for employees of the Borrower or any ERISA Affiliate or any such Plan to which the Borrower or any ERISA Affiliate is required to
contribute on behalf of any of its employees. 

  
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 “Platform” has the meaning specified in Section 7.02. 

“Pledge Agreement” means a pledge agreement, in form and substance satisfactory to the Administrative Agent, pursuant to
which the Administrative Agent, for the benefit of the Secured Parties, is granted a first priority Lien on all of the Capital Stock of the Borrower to secure the Obligations. 

“Pledge Date” means, with respect to a Pledged Asset, the effective date of the Confirmation Statement with respect to such
Pledged Asset. 
 “Pledge Proposal” means a notice of a Proposed Loan Asset with respect to which the Borrower would like
to request a Loan, which notice shall be substantially in the form of Exhibit G, or such other form as may be approved by the Administrative Agent, signed by a Responsible Officer of the Borrower. 

“Pledged Asset” means an Eligible Loan Asset that has been originated or acquired, as applicable, by the Borrower and for
which a Confirmation Statement has been duly executed and delivered by the Borrower and the Administrative Agent. 
 “Pledged Asset
Total Outstandings” means, with respect to any Pledged Asset on any date, the aggregate outstanding principal amount of Loans made with respect to such Pledged Asset, including any Loans made in respect of any Future Funding Amount and
Excess Borrowing Base Capacity with respect to such Pledged Asset, after giving effect to any borrowings and prepayments or repayments of Loans, as the case may be, occurring on such date. 

“Pledged Hedging Accounts” has the meaning specified in Section 5.01. 

“Pledged Hedging Arrangements” has the meaning specified in Section 5.01. 

“Pledgor” means TPG RE Finance Pledgor 20, LLC, a Delaware limited liability company. 

“Potential Pledged Assets” has the meaning specified in Section 5.01. 

“Pre-IPO Stockholder” means any Person that was a holder of Capital Stock of Sponsor immediately prior to consummation of the
IPO Transaction. 
 “Pre-IPO Stockholder Group” means any “group” (as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934) of Pre-IPO Stockholders that was formed in connection with the IPO Transaction as the result of the execution and delivery by such Pre-IPO Stockholders of an agreement to coordinate with respect to the
resale of shares of Capital Stock of Sponsor pursuant to Rule 144 under the Securities Act of 1933. 

  
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 “Prohibited Transferee” means (a) any competitor of the Borrower or any
Mortgagor with respect to any Pledged Asset or an Affiliate thereof, in each case, that is specifically identified by name as a Prohibited Transferee in a list generally available to the Lenders on the Closing Date, which list, as an initial matter,
is set forth on Schedule 11.06 and may be updated from time to time after the Closing Date by the Borrower (but no such update shall become effective until the second Business Day after it is provided by the Borrower to the Administrative
Agent for dissemination to the Lenders, and no such update shall apply retroactively to a Person that already acquired and continues to hold (or has and remains committed to acquire, without giving retroactive effect to any such commitment) an
assignment or participation interest and (b) any Affiliate of any Person listed in clause (a) that is either identified to the Administrative Agent in writing from time to time for distribution to the Lenders, or reasonably identifiable on
the basis of such Affiliate’s name. Neither the Administrative Agent nor any Lender shall have any liability in the event of an assignment to any Person not then actually known by the Administrative Agent or such Lender to be a Prohibited
Transferee under clause (b) of this definition. 
 “Proposed Loan Asset” means a Mortgage Loan identified by the
Borrower in a Pledge Proposal that the Borrower proposes to become a Pledged Asset. 
 “PTE” means a prohibited transaction
class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time. 
 “PT
List” has the meaning specified in Section 11.06(f)(v). 
 “Public Lender” has the meaning specified
in Section 7.02. 
 “Qualified Servicing Expenses” means, with respect to the Servicer, (i) the Servicing
Fee (as defined in the Servicing Agreement) and (ii) any expenses payable to the Servicer pursuant to the Servicing Agreement that, pursuant to the terms thereof, are expressly permitted to be netted by the Servicer out of collections. 

“Recipient” means the Administrative Agent, any Lender or any other recipient of any payment to be made by or on account of
any obligation of any Loan Party hereunder. 
 “Redirection Letter” means an irrevocable redirection letter substantially
in the form attached as Exhibit L. 
 “Register” has the meaning specified in Section 11.06(c). 

“REIT” means a Person satisfying the conditions and limitations set forth in Section 856(b) and 856(c) of the Code which
are necessary to qualify such Person as a “real estate investment trust,” as defined in Section 856(a) of the Code. 

“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers,
employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person’s Affiliates. 

“Release Conditions” has the meaning specified in Section 5.06(b). 

  
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 “Release Transaction” has the meaning specified in Section 5.06(a).

 “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than events for which the
30 day notice period has been waived. 
 “Required Lenders” means, at any time, Lenders having Total Credit Exposures
representing more than 50% of the Total Credit Exposures of all Lenders; provided that (a) notwithstanding the foregoing, so long as no Event of Default has occurred and is continuing under the Facility, the Administrative Agent shall
maintain the exclusive right to act on behalf of the Required Lenders under the Loan Documents with respect to all matters, including, but not limited to, the following: (i) waivers, consents and amendments of all provisions contained in the
Loan Documents, (ii) control of decisions with respect to matters involving the Pledged Assets, (iii) approval of Eligible Loan Assets, (iv) determinations of the Market Value and Advance Rate of each Pledged Asset (which
determinations shall be made by the Administrative Agent in its sole and absolute discretion, exercised in good faith) and (v) decisions as to whether the conditions precedent to future funding advances with respect to any Pledged Asset have
been satisfied and (b) in no event will any determination of Required Lenders include any Defaulting Lender. 
 “Responsible
Officer” means (a) any of the chief executive officer, president, vice president, chief financial officer, director, treasurer, or assistant treasurer of a Loan Party that is an Authorized Signer, (b) solely for purposes of the
delivery of incumbency certificate, resolutions and Organization Documents pursuant to Section 4.01, the secretary or any assistant secretary of a Loan Party and (iii) solely for purposes of notices given pursuant to Article
II, any other officer or employee of the applicable Loan Party that is an Authorized Person or is designated as a Responsible Officer by any of the foregoing officers in a notice to the Administrative Agent or any other officer or employee of
the applicable Loan Party designated in or pursuant to an agreement between the applicable Loan Party and the Administrative Agent. Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively
presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party. 

“Sanction(s)” means any sanction administered or enforced by the United States Government (including, without limitation,
OFAC), the United Nations Security Council, the European Union, Her Majesty’s Treasury (“HMT”) or other relevant sanctions authority. 

“SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal
functions. 
 “Secured Parties” means, collectively, the Administrative Agent, the Lenders, each co-agent or sub-agent
appointed by the Administrative Agent from time to time pursuant to Section 10.05, and the other Persons the Obligations owing to which are or are purported to be secured by the Collateral under the terms of the Collateral Documents.

  
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 “Senior Loan” means a fixed or floating senior commercial real estate whole
mortgage loan, the senior note in an “A/B” senior-subordinate note or other senior interests structure evidencing a commercial real estate mortgage loan, in each case, which is evidenced by a Mortgage Note and secured by a first priority,
perfected lien on commercial real estate classified as an Eligible Property Type. 
 “Servicer” means Hanover Street
Capital LLC, Situs Asset Management LLC or an Affiliate thereof mutually acceptable to Borrower and the Administrative Agent or any other servicer that is not an Affiliate of the Borrower or Holdco that is mutually acceptable to the Borrower and the
Administrative Agent. 
 “Servicing Agreement” means, with respect to any Servicer, a servicing agreement among the
Borrower, the Servicer and the Administrative Agent, in form and substance reasonably acceptable to the Administrative Agent, providing for the servicing of the Pledged Assets by the Servicer. 

“Significant Pledged Asset Modification” means any modification, consent, waiver or amendment of a Pledged Asset which: 

(a) reduces the principal amount of such Pledged Asset; 

(b) increases the principal amount of such Pledged Asset other than future funding advances; 

(c) modifies the maturity date (including the modification or waiver of any conditions to extend the maturity date) with respect to such
Pledged Asset or materially modifies the amount or timing of any regularly scheduled payments of principal and non-contingent interest of such Pledged Asset; 

(d) changes the frequency of scheduled payments of principal and interest in respect of such Pledged Asset or modifies the prepayment
provisions with respect to such Pledged Asset; 
 (e) subordinates the lien priority of such Pledged Asset or the payment priority of such
Pledged Asset other than subordinations required under the related ELA Documents (provided, however, the foregoing shall not preclude the execution and delivery of subordination, nondisturbance and attornment agreements with tenants, subordination
to tenant leases, easements, plats of subdivision and condominium declarations and similar instruments which in the commercially reasonable judgment of the Borrower do not materially adversely affect the rights and interest of the holder of such
Pledged Asset); 
 (f) releases any collateral for such Pledged Asset other than releases required under the related ELA Documents or
releases in connection with eminent domain or under threat of eminent domain or releases any obligor or guarantor under such Pledged Asset or accepts any substitute collateral for a Pledged Asset; 

(g) accepts an assumption agreement releasing a Mortgagor from all or a portion of liability under such Pledged Asset other than an assumption
from a transferee which is permitted under the ELA Documents; 

  
 29 

 (h) materially waives, amends or modifies, in the Borrower’s reasonable judgment, any cash
management or reserve account requirements of such Pledged Asset other than changes required under the related ELA Documents or allows for the release of any amounts held in a reserve or escrow account or allows for any capital expenditures, in each
case, other than as expressly permitted by the ELA Documents; 
 (i) waives any due-on-sale or due-on-encumbrance provisions of such Pledged
Asset other than waivers required to be given under the then existing ELA Documents; 
 (j) materially waives, amends or modifies, in the
Borrower’s reasonable judgment, any insurance requirements of such Pledged Asset under the related ELA Documents; 
 (k) encumbers the
related Mortgaged Property or other collateral securing the Pledged Asset or the direct or indirect ownership interest in the Mortgagor; 

(l) relates to the issuance of a letter of credit as security for a Pledged Asset where the Borrower has a consent right to the form of letter
of credit; or 
 (m) materially waives, amends, modifies or restates, in the Borrower’s reasonable judgment, any intercreditor
agreement, co-lender agreement or similar agreement related to a Pledged Asset. 
 “Solvent” mean, with respect to any
Person on any date of determination, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person, (b) the present fair salable value
of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will,
incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they mature, (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such
Person’s property would constitute an unreasonably small capital, and (e) such Person is able to pay its debts and liabilities, contingent obligations and other commitments as they mature in the ordinary course of business. The amount of
contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. 

“Specified Pledged Asset” has the meaning specified in Section 2.03(b)(ii)(A)(I). 

“Specified Prepayment” has the meaning specified in Section 2.03(b)(ii). 

“Sponsor” means TPG RE Finance Trust, Inc., a Maryland corporation. 

“Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability company or other business entity
of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a
contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person. 

  
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 “Swap Contract” means (a) any and all rate swap transactions, basis swaps,
credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond
price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options,
spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and
(b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any
International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master
Agreement. 
 “Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the
effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination
value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations
provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender). 
 “Table Funded
Loan Asset” means an Eligible Loan Asset that becomes a Pledged Asset simultaneously with the origination or acquisition thereof by the Borrower, which origination or acquisition, pursuant to the Borrower’s request, is partially
financed with a Loan the proceeds of which are promptly upon receipt by the Borrower wire transferred by the Borrower to a title company or other settlement agent, in each case, that has been approved by the Administrative Agent in its sole
discretion and has executed and delivered to the Administrative Agent an escrow letter in the form of Exhibit N, in trust for the current holder of such Eligible Loan Asset for disbursement to the parties entitled thereto in connection with
such origination or acquisition. 
 “Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. 

“Threshold Amount” means (i) $5,000,000 with respect to the Borrower and Pledgor and (ii) $10,000,000 with respect
to Holdco. 
 “Title Policy” has the meaning specified in Exhibit E. 

“Total Credit Exposure” means, as to any Lender at any time, the sum of any unused Commitments and the outstanding Credit
Exposure of such Lender at such time. 

  
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 “Total Outstandings” means on any date, the aggregate outstanding principal
amount of Loans after giving effect to any borrowings and prepayments or repayments of Loans, as the case may be, occurring on such date. 

“Trade Date” has the meaning specified in Section 11.06(f)(ii). 

“Transfer” means with respect to any Person, any sale or other whole or partial conveyance of all or any portion of such
Person’s assets, or any direct or indirect interest therein to a third party (other than in connection with the pledge of Pledged Assets in accordance herewith), including the granting of any purchase options, rights of first refusal, rights of
first offer or similar rights in respect of any portion of such assets or the subjecting of any portion of such assets to restrictions on transfer. 

“Trust Receipt” shall mean a trust receipt issued by the Custodian to the Administrative Agent confirming the
Custodian’s possession of the ELA Documents with respect to a Pledged Asset that are held by the Custodian for the benefit of the Administrative Agent (including for purposes of perfecting the Lien of the Administrative Agent thereon). 

“Type” means, with respect to a Loan, its character as a LIBOR Rate Loan or a Base Rate Loan. 

“UCC” means the Uniform Commercial Code as in effect in the State of New York or, when the laws of any other jurisdiction
govern the perfection or enforcement of any Lien, the Uniform Commercial Code of such jurisdiction. 
 “Underwritten
Events” means, with respect to any Pledged Asset as of any date of determination, events or circumstances with respect to such Pledged Asset or the underlying property which events are identified and agreed in the Confirmation Statement or
as otherwise identified and agreed to in writing by the Borrower and the Required Lenders at the time of the most recent determination of Market Value. 

“United States” and “U.S.” mean the United States of America. 

“U.S. Person” means any Person that is a “United States Person” as defined in Section 7701(a)(30) of the Code.

 “U.S. Tax Compliance Certificate” has the meaning specified in Section 3.01(e)(ii)(B)(III). 

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers
of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule. 

  
 32 

 1.02 Other Interpretive Provisions. With reference to this Agreement and each other Loan
Document, unless otherwise specified herein or in such other Loan Document: 
 (a) The definitions of terms herein shall apply equally to the
singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,” “includes” and “including” shall
be deemed to be followed by the phrase “without limitation.” The word “will” shall be construed to have the same meaning and effect as the word “shall.” Unless the context requires otherwise, (i) any definition of
or reference to any agreement, instrument or other document (including any Organization Document) shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document) and shall include all exhibits, schedules and other attachments thereto, (ii) any reference herein to any Person shall
be construed to include such Person’s heirs, personal representatives, successors, trustees, receivers, and permitted assigns, (iii) the words “hereto,” “herein,” “hereof” and
“hereunder,” and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a Loan Document to
Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan Document in which such references appear, (v) any reference to any law shall include all statutory and
regulatory provisions consolidating, amending, replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time,
(vi) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and
contract rights and (vii) unless otherwise indicated, all references to money (including the symbol “$:) are to lawful currency of the United States. 

(b) In the computation of periods of time from a specified date to a later specified date, the word “from” means
“from and including;” the words “to” and “until” each mean “to but excluding;” and the word “through” means “to and including.” 

(c) Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the
interpretation of this Agreement or any other Loan Document. 
 1.03 Accounting Terms. 

(a) Generally. All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all
financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP applied on a consistent basis so that the accounting principles in a current
period are comparable in all material respects to those applied during the preceding comparable period. Notwithstanding the foregoing, for purposes of determining compliance with any covenant (including the computation of any financial covenant)
contained herein, Indebtedness of Holdco and its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on financial liabilities shall be disregarded. 

  
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 (b) Changes in GAAP. If at any time any change in GAAP would affect the computation of any
financial ratio or requirement set forth in any Loan Document, and either the Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement
to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders); provided that, until so amended, (A) such ratio or requirement shall continue to be computed in accordance
with GAAP prior to such change therein and (B) the Borrower shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a
reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP. 
 (c)
Consolidation of Variable Interest Entities. All references herein to consolidated financial statements of Holdco and its Subsidiaries or to the determination of any amount for Holdco and its Subsidiaries on a consolidated basis or any
similar reference shall, in each case, be deemed to include each variable interest entity that Holdco is required to consolidate pursuant to FASB ASC 810 as if such variable interest entity were a Subsidiary as defined herein. 

1.04 Rounding. Any financial ratios required to be maintained by the Loan Parties pursuant to this Agreement shall be calculated by
dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there
is no nearest number). 
 1.05 Times of Day; Rates. Unless otherwise specified, all references herein to times of day shall be
references to Eastern time (daylight or standard, as applicable). 
 The Administrative Agent does not warrant, nor accept responsibility,
nor shall the Administrative Agent have any liability with respect to the administration, submission or any other matter related to the rates in the definition of “LIBOR Daily Floating Rate” or with respect to any comparable or successor
rate thereto. 
 1.06 Uniform Commercial Code. As used herein, the following terms are defined in accordance with the UCC in effect
in the State of New York from time to time: “Account”,” “Chattel Paper,” “Commercial Tort Claim,” “Deposit Account,” “Document,” “Equipment,” “Fixtures,” “General
Intangibles,” “Goods,” “Instrument,” “Inventory,” “Investment Property,” “Letter-of-Credit Right” and “Supporting Obligation.” 

ARTICLE II. LOAN PROVISIONS 

2.01 Loans. 
 (a) Subject
to the terms and conditions set forth herein (including, without limitation, the applicable conditions set forth in Sections 4.02, 4.03 and 4.04 of this Agreement, as applicable), each Lender severally agrees to make loans (each
such loan, a “Loan”) to the Borrower from time to time, (i) on any Business Day during the Funding Period with respect to a Proposed Loan Asset approved by the Administrative Agent and the Required Lenders in accordance with
Section 2.01(b), and (ii) on any Business Day from the Closing Date until the 

  
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Maturity Date in respect of (x) a Future Funding Amount or (y) the Excess Borrowing Base Capacity of a Pledged Asset, in each case, in an aggregate amount not to exceed at any time
outstanding the amount of such Lender’s Commitment; provided, that the Borrower shall not request more than one Borrowing of each type described in clauses (i), (ii)(x) or (ii)(y) with respect to any single Pledged
Asset in any calendar month; provided further that after giving effect to any Borrowing, (a) the Total Outstandings shall not exceed the Maximum Available Amount, (b) the Credit Exposure of any Lender shall not exceed such
Lender’s Commitment, and (c) the Pledged Asset Total Outstandings with respect to each Pledged Asset shall not exceed the Borrowing Base Amount with respect to such Pledged Asset; provided further that on or after the first
anniversary of the Closing Date, the Loans shall be subject to the following concentration limits (collectively, the “Concentration Limits”): (1) the aggregate outstanding principal amount of all Loans made with respect to
Pledged Assets that constitute loans secured by lodging properties shall not at any time exceed 25% of the Facility Amount (calculated without giving effect to any Maturity Extension Reduction), (2) the aggregate outstanding principal amount of
all Loans made with respect to Pledged Assets that constitute loans secured by any single type of property other than a lodging property shall not at any time exceed 75% of the Facility Amount (calculated without giving effect to any Maturity
Extension Reduction) and (3) the Pledged Asset Total Outstandings with respect to any single Pledged Asset shall not at any time exceed 40% of the Facility Amount (calculated without giving effect to any Maturity Extension Reduction). Within
the limits of each Lender’s Commitment, and subject to the other terms and conditions hereof, the Borrower may borrow under this Section 2.01, prepay under Section 2.03, and reborrow under this Section 2.01.

 (b) The Administrative Agent and the Lenders shall have the right to review each Proposed Loan Asset and to conduct its own due diligence
investigation of such Proposed Loan Asset as the Administrative Agent or such Lender determines in its sole and absolute discretion, which due diligence investigation the Administrative Agent and each Lender shall endeavor to complete within ten
Business Days of receipt from the Borrower of a Pledge Proposal, the complete Due Diligence Package and such other information as may reasonably be requested by the Administrative Agent, or any Lender through the Administrative Agent, with respect
to such Proposed Loan Asset. Each Pledge Proposal shall specify (i) the Mortgagor’s name, (ii) the Borrower’s case/loan number, (iii) the expected date of the Borrowing with respect to such Proposed Loan Asset, (iv) the
amount of the Mortgage Note, Mezzanine Note or Participation Certificate, as applicable (v) the name, street address, email address, telephone number and telecopier number of the title company and settlement attorney and contact person who will
be responsible for custody of closing documents and delivery of required items to the Administrative Agent and the Custodian, as applicable, and (vi) the name of the holder of the original Mortgage Note, Mezzanine Note or Participation
Certificate, as applicable. In addition, if the loan documents for such Proposed Loan Asset require the Borrower to fund future advances to the Mortgagor, the Borrower shall include in the Pledge Proposal a request that the Required Lenders agree to
fund the Future Funding Amount. The Administrative Agent and the Required Lenders shall be entitled to make a determination, in their sole and absolute discretion, whether any Proposed Loan Asset qualifies as an Eligible Loan Asset or whether to
reject such Proposed Loan Asset. If the Administrative Agent and the Required Lenders approve of such Proposed Loan Asset as an Eligible Loan Asset, the Administrative Agent shall promptly deliver to the Borrower a proposed Confirmation Statement.
The Administrative Agent’s failure to deliver a proposed Confirmation Statement to the Borrower within 15 Business Days of receipt of a Pledge Proposal and Due Diligence Package, shall be deemed to be a rejection of such Proposed Loan Asset,
unless the Administrative Agent and the Borrower agree otherwise in writing. 

  
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 2.02 Borrowings. 

(a) Each Borrowing shall be made upon the Borrower’s notice to the Administrative Agent, which shall be given by delivery of a Loan
Notice by email and which may be revoked by the Borrower by written notice received by the Administrative Agent not later than 3:00 p.m. on the Business Day prior to the requested funding date of such Borrowing. Each such Loan Notice must be
received by the Administrative Agent not later than 5:00 p.m. two Business Days prior to the requested date of any Borrowing. Each Borrowing shall be in a minimum principal amount of $250,000 or, if less, the entire Borrowing Base Amount, Future
Funding Amount or Excess Borrowing Base Capacity, as applicable, with respect to such Pledged Asset (or, in any event, such other amount as the Administrative Agent may agree). Each Loan Notice shall specify (i) the requested date of the
Borrowing (which shall be a Business Day), (ii) the Pledged Asset with respect to which such Borrowing is to be made, and (iii) the principal amount of Loans to be borrowed. Any Loan Notice received by the Administrative Agent later than
3:00 p.m. on a Business Day will be deemed received on the following Business Day. 
 (b) Following receipt of a Loan Notice, the
Administrative Agent shall promptly notify each Lender of the amount of its Applicable Percentage of the applicable Loans. Each Lender shall make the amount of its Loan available to the Administrative Agent in immediately available funds at the
Administrative Agent’s Office not later than 1:00 p.m. on the Business Day specified in the applicable Loan Notice. Upon satisfaction of the applicable conditions set forth in Section 4.02, 4.03 or 4.04 (and, if such
Borrowing is the initial Loan, Section 4.01), the Administrative Agent shall make all funds so received available to the Borrower in immediately available funds by crediting the amount of such funds to the account of the Borrower on the
books of Bank of America identified in the most recently completed Borrower Remittance Instructions received by the Administrative Agent from the Borrower. 

(c) Except as provided in Sections 3.02 and 3.03, all Loans shall bear interest based upon the LIBOR Daily Floating Rate. 

2.03 Prepayments. 
 (a)
Optional Prepayments. The Borrower may, upon notice to the Administrative Agent, at any time or from time to time voluntarily prepay Loans with respect to any Pledged Asset or Pledged Assets in whole or in part without premium or penalty;
provided that (i) such notice must be in a form acceptable to the Administrative Agent and be received by the Administrative Agent not later than 11:00 a.m. three Business Days prior to any date of prepayment and (ii) any prepayment
shall be in a minimum principal amount of $100,000 or, if less, the entire Pledged Asset Total Outstandings then outstanding with respect to such Pledged Asset or Pledged Assets. Each such notice shall specify the date and amount of such prepayment
and the Pledged Asset or Pledged Assets with respect to which such prepayment is being made and, if applicable, the allocation of such prepayment among such Pledged Assets. The Administrative Agent will promptly notify each Lender of its receipt of
each such notice, and of 

  
 36 

 
the amount of such Lender’s Applicable Percentage of such prepayment. If such notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in
such notice shall be due and payable on the date specified therein. Any prepayment shall be accompanied by all accrued interest on the amount prepaid. Subject to Section 2.14, each such prepayment shall be applied to the Loans of the
Lenders in accordance with their respective Applicable Percentages. 
 (b) Mandatory Prepayments. 

(i) If for any reason the Total Outstandings at any time exceed the Maximum Available Amount then the Borrower shall
immediately prepay Loans in an aggregate amount equal to such excess. 
 (ii) If at any time the sum of the Borrowing Base
Deficiency for all Pledged Assets at such time (the “Aggregate Borrowing Base Deficiency”) equals or exceeds $500,000, the Administrative Agent may deliver a written demand that the Borrower make a prepayment of the Loans (each a
“Specified Prepayment”) in an amount sufficient to eliminate such Aggregate Borrowing Base Deficiency within three Business Days after receipt of such demand; provided that if 

(A) within two Business Days of a demand by the Administrative Agent for the Borrower to make a Specified Prepayment the
Borrower furnishes to the Administrative Agent: 
 (I) a written notice certifying that Excess Borrowing Base Capacity
exists with respect to one or more other Pledged Assets (which notice also identifies the relevant Pledged Assets and the amount of Excess Borrowing Base Capacity attributable to each such Pledged Asset (each such Pledged Asset referred to herein as
a “Specified Pledged Asset”)); 
 (II) a Loan Notice requesting that one or more Loans be made with respect
to the Excess Borrowing Base Capacity of such Specified Pledged Assets; and 
 (III) a Compliance Certificate calculated as
of the last day of the fiscal quarter of Holdco most recently ended for which financial statements were required to be delivered pursuant to Section 7.01(a) or (b) which demonstrates that immediately after giving pro forma
effect to the making of such requested Loan(s) (I) Holdco will be in compliance with the Financial Covenants, determined on a pro forma basis, (II) the Total Outstandings will not exceed the Maximum Available Amount and (III) the Pledged Asset
Total Outstandings with respect to each Specified Pledged Asset will not exceed the Borrowing Base Amount for such Specified Pledged Asset; and 

(B) at such time all conditions set forth in Section 4.04 are satisfied; 

  
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 then, the Lenders shall be deemed to have made a Loan to the Borrower with respect to each
Specified Pledged Asset identified in the written notice referenced in clause (A)(I) above in an amount equal to the amount requested by the Borrower in the Loan Notice referenced in clause (A)(II) above. In the event the amount
of such deemed Loan or Loans is equal to the relevant Specified Prepayment, the obligation of the Borrower to make such Specified Prepayment shall be eliminated. In the event that the amount of such Specified Prepayment exceeds the amount of such
deemed Loan, the Borrower shall remain obligated to make a prepayment of the Loan made with respect to the Pledged Asset or Pledged Assets with respect to which a Borrowing Base Deficiency exists in an amount sufficient to eliminate such excess (a
“Borrowing Base Deficiency Prepayment”). In the event of a Borrowing Base Deficiency Prepayment, the Borrower shall identify to the Administrative Agent in writing the Pledged Asset or Pledged Assets with respect to which such
Borrowing Base Deficiency Prepayment is to be applied and, if applicable, the allocation of such prepayment among such Pledged Assets. 

(iii) From and after the first anniversary of the Closing Date, the Borrower shall immediately prepay all or a portion of the
Loans with respect to applicable Pledged Assets as necessary to comply at all times with the Concentration Limits. 
 (iv)
For Table Funded Loan Assets only, upon telephonic notice to the Borrower by the Administrative Agent, the Borrower shall pay to the Administrative Agent the amount of any outstanding Loan made with respect to such Table Funded Loan Asset (and the
Borrower hereby authorizes the Administrative Agent to charge any account of the Borrower on the books of Bank of America for such amount) on the Initial Funding Date with respect to such Pledged Asset if the funding of such Table Funded Loan Asset
by the Borrower is not closed and funded on such date. 
 (c) Debt Yield Maintenance Payments. In the event that the Debt Yield for
all Pledged Assets is less than Facility Debt Yield Threshold at any time on or after the first anniversary of the Closing Date, the Administrative Agent will have the option, exercisable in its sole and absolute discretion, to deliver a written
demand that the Borrower make a prepayment of Loans as necessary to cause the Debt Yield to at least equal the Facility Debt Yield Threshold (each a “Debt Yield Maintenance Payment”) within three Business Days after receipt of such
demand and the Borrower shall identify to the Administrative Agent in writing the Pledged Asset or Pledged Assets with respect to which such Debt Yield Maintenance Payment is to be applied and, if applicable, the allocation of such Debt Yield
Maintenance Payment among such Pledged Assets. 
 2.04 Termination or Reduction of Commitments; Commitment Reinflation. 

(a) Optional Termination or Reduction. The Borrower may, upon notice to the Administrative Agent, terminate the Facility Amount, or
from time to time permanently reduce the Facility Amount; provided that (i) any such notice shall be received by the Administrative Agent not later than 11:00 a.m. five Business Days prior to the date of termination or reduction,
(ii) any such partial reduction shall be in an aggregate amount of $1,000,000 or any whole multiple of $1,000,000 in excess thereof or, if the then remaining undrawn Commitments are less, such lesser amount (or, in any event, such other amount
as the Administrative Agent may agree), and (iii) the Borrower shall not terminate or reduce the Facility Amount if, after giving effect thereto and to any concurrent prepayments hereunder, the Total Outstandings would

  
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exceed the Facility Amount. The Administrative Agent will promptly notify the Lenders of any notice of termination or reduction of the Facility Amount. All fees accrued until the effective date
of any termination of the Facility Amount shall be paid on the effective date of such termination. 
 (b) Mandatory Reduction. On
each Extension Effective Date, if any, occurring after the Extended Maturity Date, the Facility Amount shall be permanently reduced by an amount equal to the Maturity Extension Reduction. 

(c) Application of Reduction. Any reduction of the Facility Amount under this Section 2.04 shall be applied to the
Commitment of each Lender according to its Applicable Percentage. 
 (d) Commitment Reinflation. To the extent that, as of any
Extension Effective Date, the Borrowing Base Amount for any Pledged Asset was lower than the product of the Advance Rate for such Pledged Asset multiplied by the then outstanding principal amount of such Pledged Asset, if such Borrowing Base
Amount is later increased (due to an increase in the Market Value of such Pledged Asset), then, following a written request by the Borrower, each Lender may, in its sole and absolute discretion, elect to increase its Commitment to an amount not
greater than such Lender’s initial Commitment as set forth on Schedule 2.01 on the Closing Date or in the Assignment and Assumption or New Lender Joinder Agreement pursuant to which such Lender became a party hereto, as applicable, so
long as the Borrower has paid to each such Lender an additional fee as set forth in the Fee Letter with respect to the amount by which such Lender increases its Commitment. 

2.05 Repayment of Loans. The Borrower shall repay to the Lenders on the Maturity Date the aggregate principal amount of Loans
outstanding on such date. 
 2.06 Interest. 

(a) Subject to the provisions of subsections (b) and (c) below, each Loan shall bear interest on the outstanding
principal amount thereof at a rate per annum equal to the LIBOR Daily Floating Rate plus the Applicable Rate. 
 (b) (i) If any
amount due and payable by the Borrower under any Loan Document remains unpaid after any applicable grace periods, whether due at stated maturity, by acceleration or otherwise, then such amount shall thereafter bear interest at a fluctuating interest
rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws. 
 (ii) While any
Event of Default exists, the Borrower shall pay interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable
Laws. 
 (iii) Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and
payable upon demand. 

  
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 (c) If any LIBOR Rate Loan is converted to a Base Rate Loan pursuant to Section 3.02
or Section 3.03 or any Loan is made as a Base Rate Loan because the LIBOR Daily Floating Rate becomes unavailable, indeterminable or illegal, or fails to reflect Lenders’ costs, then each such Base Rate Loan shall bear interest on
the outstanding principal amount thereof at a rate per annum equal to the Base Rate plus the Applicable Rate. 
 (d) Interest on each Loan
accruing during any calendar month shall be due and payable in arrears on the Interest Payment Date occurring in the following calendar month and at such other times as may be specified herein. Interest hereunder shall be due and payable in
accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Insolvency Law. 

2.07 Fees. In addition to any fees described or referenced elsewhere in this Agreement or any other Loan Document, the Borrower shall
pay to the Arranger and the Administrative Agent, for their own respective accounts, and to the Administrative Agent, for the account of the Lenders, fees in the amounts and at the times specified in the Fee Letter. Such fees shall be fully earned
when paid and shall not be refundable for any reason other than as may be separately agreed upon by the Borrower and the Administrative Agent in writing. 

2.08 Computation of Interest and Fees. All computations of interest for Base Rate Loans shall be made on the basis of a year of 365 or
366 days, as the case may be, and actual days elapsed. All other computations of fees and interest under the Loan Documents shall be made on the basis of a 360-day year and actual days elapsed (which results in more fees or interest, as applicable,
being paid than if computed on the basis of a 365-day year). Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid,
provided that any Loan that is repaid on the same day on which it is made shall, subject to Section 2.10(a), bear interest for one day. Each determination by the Administrative Agent of an interest rate or fee hereunder shall be
conclusive and binding for all purposes, absent manifest error. 
 2.09 Evidence of Debt. The Loans made by each Lender shall be
evidenced by one or more accounts or records maintained by such Lender and by the Administrative Agent in the ordinary course of business. The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent
manifest error of the amount of the Loans made by the Lenders to the Borrower and the interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower
hereunder to pay any amount owing with respect to the Obligations. In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the
accounts and records of the Administrative Agent shall control in the absence of manifest error. Upon the request of any Lender made through the Administrative Agent, the Borrower shall execute and deliver to such Lender (through the Administrative
Agent) a Note, which shall evidence such Lender’s Loans in addition to such accounts or records. Each Lender may attach schedules to its Note and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and payments with
respect thereto. 

  
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 2.10 Payments Generally. 

(a) General. All payments to be made by the Borrower shall be made free and clear of and without condition or deduction for any
counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein, all payments by the Borrower hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at
the Administrative Agent’s Office in Dollars and in immediately available funds not later than 2:00 p.m. on the date specified herein. The Administrative Agent will promptly distribute to each Lender its Applicable Percentage (or other
applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender’s Lending Office. All payments received by the Administrative Agent after 2:00 p.m. shall be deemed received on the next succeeding
Business Day and any applicable interest or fee shall continue to accrue. If any payment to be made by the Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of
time shall be reflected in computing interest or fees, as the case may be. 
 (b) [Reserved]. 

(c) Failure to Satisfy Conditions Precedent. If any Lender makes available to the Administrative Agent funds for any Loan to be made by
such Lender as provided in the foregoing provisions of this Article II, and such funds are not made available to the Borrower by the Administrative Agent because the conditions to the applicable Loan set forth in Article IV
are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall return such funds (in like funds as received from such Lender) to such Lender, without interest. 

(d) Obligations of Lenders Several. The obligations of the Lenders hereunder to make Loans and to make payments pursuant to
Section 11.04(c) are several and not joint. The failure of any Lender to make any Loan or to make any payment under Section 11.04(c) on any date required hereunder shall not relieve any other Lender of its corresponding
obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Loan or to make its payment under Section 11.04(c). 

(e) Funding Source. Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or
manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner. 

2.11 Sharing of Payments by Lenders. If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain
payment in respect of any principal of or interest on any of the Loans made by it resulting in such Lender’s receiving payment of a proportion of the aggregate amount of such Loans and accrued interest thereon greater than its pro rata share
thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans of the other Lenders, or make such
other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans, provided that:

 (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such
participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and 

  
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 (ii) the provisions of this Section shall not be construed to apply to
(x) any payment made by or on behalf of the Borrower pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender or Prohibited Transferee), or
(y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant, other than an assignment to the Borrower or any Affiliate thereof (as to which the
provisions of this Section shall apply). 
 Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do
so under applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a
direct creditor such Loan Party in the amount of such participation. 
 2.12 Extension of Maturity Date. 

(a) Requests for Extension. The Borrower may, by written notice to the Administrative Agent (such notice, an “Extension
Notice”) (who shall promptly notify the Lenders) not earlier than ninety (90) days and not later than thirty (30) days prior to (i) the Initial Maturity Date, extend the Maturity Date for an additional one year period from
the Initial Maturity Date (such new Maturity Date, the “Extended Maturity Date”), and (ii) the Extended Maturity Date, extend the Maturity Date for an additional one year period from the Extended Maturity Date subject, in each
case, to Sections 2.12(b) and (c). 
 (b) Conditions to Effectiveness of Extensions. As conditions precedent to the
effectiveness of each such extension of the Maturity Date, each of the following requirements shall be satisfied or waived on or prior to the Initial Maturity Date or the Extended Maturity Date, as applicable, as determined in good faith by the
Administrative Agent (in each case, the first date on which such conditions precedent are satisfied or waived, the “Extension Effective Date”): 

(i) The Administrative Agent shall have received an Extension Notice within the period required under
Section 2.12(a) above; 
 (ii) On the date of such Extension Notice and both immediately before and immediately
after giving effect to such extension of the Maturity Date, no Default shall have occurred and be continuing; 
 (iii) The
Borrower shall have paid to the Administrative Agent, for the pro rata benefit of the Lenders based on their respective Applicable Percentages as of such date, an extension fee as set forth in the Fee Letter with respect to each respective extension
(it being agreed that such extension fee shall be fully earned when paid and shall not be refundable for any reason); and 

  
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 (iv) The Administrative Agent shall have received a certificate of the Borrower
dated as of the applicable Extension Effective Date signed by a Responsible Officer of the Borrower (x)(1) certifying and attaching the resolutions adopted by each Loan Party approving or consenting to such extension or (2) certifying that, as
of the Extension Effective Date, the resolutions delivered to the Administrative Agent and the Lenders on the Closing Date with respect to each Loan Party (which resolutions include approval for an extension of the Maturity Date for a period that is
not less than an additional two years from the Initial Maturity Date) are and remain in full force and effect and have not been modified, rescinded or superseded since the date of adoption and (y) certifying that, before and after giving effect
to such extension, (1) the representations and warranties made in this Agreement and the other Loan Documents, or which are contained in any document furnished at any time under or in connection herewith or therewith, are true and correct in
all material respects (or if qualified by “materiality,” “material adverse effect” or similar language, in all respects (after giving effect to such qualification)) on and as of the date the proposed extension is to become
effective (other than the representation in Section 6.05(c), which shall be made only as of the Closing Date), except (A) to the extent that such representations and warranties specifically refer to an earlier date, in which case
they are true and correct in all material respects (or if qualified by “materiality,” “material adverse effect” or similar language, in all respects (after giving effect to such qualification)) as of such earlier date,
(B) in the case of the representations and warranties set forth on Exhibit E, which representations and warranties are true and correct with respect to each Pledged Asset subject only to any exceptions set forth in the Confirmation
Statement with respect to such Pledged Asset or in any Exception Notice with respect to such Pledged Assets which have been delivered to the Administrative Agent at least ten Business Days prior to the date of any such extension and (C) that
for purposes of this Section 2.12, the representations and warranties contained in subsections (a) and (b) of Section 6.05 shall be deemed to refer to the most recent statements furnished pursuant to
subsections (a) and (b), respectively, of Section 7.01, and (2) no Default shall have occurred and is then continuing. 

(c) Effectiveness of Extension. Any such extension of the Maturity Date shall become effective on the Extension Effective Date. 

(d) Conflicting Provisions. This Section 2.12 shall supersede any provisions in Section 11.01 to the contrary.

 2.13 Increase in Commitments. 

(a) Request for Increase. Provided that no Default shall have occurred and is then continuing, upon written notice to the
Administrative Agent (which shall promptly notify the Lenders), the Borrower may from time to time, request an increase in the Facility Amount to an amount not exceeding $500,000,000 in the aggregate after giving effect to such increase;
provided that (i) any such request for an increase shall be in a minimum amount of $25,000,000 (or such other amount as the Administrative Agent may agree in writing) and (ii) the Borrower may make a maximum of three such requests.
At the time of sending such notice, the Borrower (in consultation with the Administrative Agent) shall specify the time period within which each Lender is requested to respond (which shall in no event be less than ten Business Days from the date of
delivery of such notice to the Lenders). 

  
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 (b) Lender Elections to Increase. Each Lender shall notify the Administrative Agent within
such time period whether or not it agrees to increase its Commitment and, if so, whether by an amount equal to, greater than, or less than its Applicable Percentage of such requested increase. Any Lender not responding within such time period shall
be deemed to have declined to increase its Commitment. 
 (c) Notification by Administrative Agent; Additional Lenders. The
Administrative Agent shall notify the Borrower and each Lender of the Lenders’ responses to each request made hereunder. To achieve the full amount of a requested increase and subject to the approval of the Administrative Agent, the Borrower
may also invite additional Eligible Assignees to become Lenders pursuant to a joinder agreement in form and substance satisfactory to the Administrative Agent and its counsel (a “New Lender Joinder Agreement”). 

(d) Effective Date and Allocations. If the Facility Amount is increased in accordance with this Section, the Administrative Agent and
the Borrower shall determine the effective date (the “Increase Effective Date”) and the final allocation of such increase. The Administrative Agent shall promptly notify the Borrower and the Lenders of the final allocation of such
increase and the Increase Effective Date. The Administrative Agent is authorized and directed to amend and distribute to the Lenders, including any party becoming a Lender on the Increase Effective Date, a revised Schedule 2.01 that gives
effect to the increase and the allocation among the Lenders. 
 (e) Conditions to Effectiveness of Increase. As conditions precedent
to each such increase, (i) the Borrower shall deliver to the Administrative Agent a certificate of each Loan Party dated as of the Increase Effective Date (in sufficient copies for each Lender) signed by a Responsible Officer of such Loan Party
(x) (1) certifying and attaching the resolutions adopted by such Loan Party approving or consenting to such increase or (2) certifying that, as of such Increase Effective Date, the resolutions delivered to the Administrative Agent and the
Lenders on the Closing Date (if such resolutions include approval to increase the Facility Amount to an amount at least equal to $500,000,000) are and remain in full force and effect and have not been modified, rescinded or superseded since the date
of adoption, and (y) in the case of the Borrower, certifying that, before and after giving effect to such increase, (1) the representations and warranties made in this Agreement and the other Loan Documents, or which are contained in any
document furnished at any time under or in connection herewith or therewith, are true and correct in all material respects (or if qualified by “materiality,” “material adverse effect” or similar language, in all respects (after
giving effect to such qualification)) on and as of the Increase Effective Date (other than the representation in Section 6.05(c), which shall be made only as of the Closing Date) except (A) to the extent that such representations
and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (or if qualified by “materiality,” “material adverse effect” or similar language, in all respects (after
giving effect to such qualification)) as of such earlier date, (B) in the case of the representations and warranties set forth on Exhibit E, which representations and warranties are true and correct with respect to each Pledged Asset
subject only to any exceptions set forth in the Confirmation Statement with respect to such Pledged Assets and any Exception Notice with 

  
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respect to such Pledged Assets which have been delivered to the Administrative Agent at least ten Business Days prior to the date of any such increase and (C) that for purposes of this
Section 2.13, the representations and warranties contained in subsections (a) and (b) of Section 6.05 shall be deemed to refer to the most recent statements furnished pursuant to
subsections (a) and (b), respectively, of Section 7.01, and (2) no Default shall have occurred and is then continuing, (ii) the Administrative Agent shall have received (x) a New Lender Joinder Agreement
duly executed by the Borrower and each Eligible Assignee that is becoming a Lender in connection with such increase, which New Lender Joinder Agreement shall (in order to be effective) be acknowledged and consented to in writing by the
Administrative Agent and (y) written confirmation from each existing Lender, if any, participating in such increase of the amount by which its Commitment will be increased, (iii) the Borrower shall provide a Note to any new Lender joining
on the Increase Effective Date, if requested, and (iv) the Borrower shall have paid to the Arranger, for the account of the Lenders participating in the increase, such upfront, commitment or other fees as are agreed to in writing by the
Arranger and the Borrower on account of such increase. 
 (f) Settlement Procedures. On each Increase Effective Date, promptly
following fulfillment of the conditions set forth in clause (e) of this Section 2.13, the Administrative Agent shall notify the Lenders of the occurrence of the increase of the Facility Amount effected on such Increase Effective
Date and the amount of the Commitment and Applicable Percentage of each Lender as a result thereof. In the event that the increase in the Facility Amount results in any change to the Applicable Percentage of any Lender, then on the Increase
Effective Date (i) any new Lender, and any existing Lender whose Commitment has increased, shall pay to the Administrative Agent such amounts as are necessary to fund its new or increased Applicable Percentage of all existing Loans, and
(ii) the Administrative Agent will use the proceeds thereof to pay to all existing Lenders whose Applicable Percentage is decreasing such amounts as are necessary so that each Lender’s participation in existing Loans will be equal to its
adjusted Applicable Percentage. 
 (g) Conflicting Provisions. This Section 2.13 shall supersede any provisions in
Section 2.11 or 11.01 to the contrary. 
 2.14 Defaulting Lenders. 

(a) Adjustments. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then,
until such time as that Lender is no longer a Defaulting Lender, to the extent permitted by applicable Law: 
 (i) Waivers
and Amendments. Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of “Required Lenders” and
Section 11.01. 
 (ii) Defaulting Lender Waterfall. Any payment of principal, interest, fees or other
amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article IX or otherwise) or received by the Administrative Agent from a Defaulting Lender
pursuant to Section 11.08 shall be applied at such time or times as may be determined by the 

  
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Administrative Agent as follows: first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; second, as the Borrower may request (so
long as no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; third, if
so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to satisfy such Defaulting Lender’s potential future funding obligations with respect to Loans under this Agreement;
fourth, to the payment of any amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its
obligations under this Agreement; fifth, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against
such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; and sixth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if
(x) such payment is a payment of the principal amount of any Loans in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made when the conditions set forth in
Section 4.02 were satisfied or waived, such payment shall be applied solely to pay the Loans of all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of such Defaulting Lender until such time
as all Loans are held by the Lenders pro rata in accordance with the Commitments hereunder. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender
pursuant to this Section 2.17(a)(ii) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto. 

(iii) Certain Fees. No Defaulting Lender shall be entitled to receive any fee payable under Section 2.07(a)
for any period during which that Lender is a Defaulting Lender (and the Borrower shall not be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender). 

(b) Defaulting Lender Cure. If the Borrower and the Administrative Agent agree in writing that a Lender is no longer a Defaulting
Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein, that Lender will, to the extent applicable, purchase at par that portion
of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans to be held on a pro rata basis by the Lenders in accordance with their Applicable Percentages,
whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and
provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from
that Lender’s having been a Defaulting Lender. 

  
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 ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY 

3.01 Taxes. 
 (a)
Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes. 
 (i) Any and all payments by or on
account of any obligation of any Loan Party under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable Laws. If any applicable Laws (as determined in the good faith discretion of the
Administrative Agent) require the deduction or withholding of any Tax from any such payment by the Administrative Agent or a Loan Party, then the Administrative Agent or such Loan Party shall be entitled to make such deduction or withholding, upon
the basis of the information and documentation to be delivered pursuant to subsection (e) and subsection (f) below. 

(ii) If any Loan Party or the Administrative Agent shall be required by any applicable Laws to withhold or deduct any Taxes
from any payment, then (A) such Loan Party or the Administrative Agent, as required by such Laws, shall withhold or make such deductions as are determined by it to be required based upon the information and documentation it has received
pursuant to subsection (e) and subsection (f) below, (B) such Loan Party or the Administrative Agent, to the extent required by such Laws, shall timely pay the full amount withheld or deducted to the relevant
Governmental Authority in accordance with such Laws, and (C) to the extent that the withholding or deduction is made on account of Indemnified Taxes, the sum payable by the applicable Loan Party shall be increased as necessary so that after any
required withholding or the making of all required deductions (including deductions applicable to additional sums payable under this Section 3.01) the applicable Recipient receives an amount equal to the sum it would have received had no
such withholding or deduction been made. 
 (b) Payment of Other Taxes by the Loan Parties. Without limiting the provisions of
subsection (a) above, the Loan Parties shall timely pay to the relevant Governmental Authority in accordance with applicable Law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes. 

(c) Tax Indemnifications. (i) Each of the Loan Parties shall, and does hereby, jointly and severally indemnify each Recipient, and
shall make payment in respect thereof within 10 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section 3.01)
payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified 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 the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on
behalf of a Lender, shall be conclusive absent manifest error. 

  
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 (ii) Each Lender shall, and does hereby, severally indemnify, and shall make
payment in respect thereof within 10 days after demand therefor, (x) the Administrative Agent against any Indemnified Taxes attributable to such Lender (but only to the extent that any Loan Party has not already indemnified the Administrative
Agent for such Indemnified Taxes and without limiting the obligation of the Loan Parties to do so), (y) the Administrative Agent and the Loan Parties, as applicable, against any Taxes attributable to such Lender’s failure to comply with
the provisions of Section 11.06(d) relating to the maintenance of a Participant Register and (z) the Administrative Agent and the Loan Parties, as applicable, against any Excluded Taxes attributable to such Lender that are payable
or paid by the Administrative Agent or a Loan Party in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such 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 any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and
apply any and all amounts at any time owing to such Lender under this Agreement or any other Loan Document against any amount due to the Administrative Agent under this clause (ii). 

(d) Evidence of Payments. As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority as provided in
this Section 3.01, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of any return required by Laws to report such
payment or other evidence of such payment reasonably satisfactory to the Administrative Agent. 
 (e) Status of Lenders; Tax
Documentation. 
 (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to
payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably
requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent,
shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender 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 3.01(e)(ii)(A), 3.01(e)(ii)(B) and 3.01(e)(ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material
unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender. 

  
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 (ii) Without limiting the generality of the foregoing, in the event that the
Borrower is a U.S. Person: 
 (A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent
on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies of IRS Form W-9 certifying that such
Lender is exempt from U.S. federal backup withholding tax; 
 (B) any Foreign Lender shall, to the extent it is legally
entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to
time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable: 

(I) in the case of a Foreign Lender claiming 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; 
 (II) executed copies of IRS Form
W-8ECI; 
 (III) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under
Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit I-1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10
percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance
Certificate”) and (y) executed copies of IRS Form W-8BEN-E (or W-8BEN, as applicable); or 
 (IV) to the
extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN-E (or W-8BEN, as applicable), a U.S. Tax Compliance Certificate substantially in the form of
Exhibit I-2 or Exhibit I-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of
such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit I-4 on behalf of each such direct and indirect partner; 

  
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 (C) any Foreign Lender shall, to the extent it is legally entitled to do so,
deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon
the reasonable request of the Borrower or the Administrative Agent), 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 the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and 

(D) if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if
such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent
at the time or times prescribed by Law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code)
and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their respective obligations under FATCA and to determine that such
Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the
date of this Agreement. 
 (iii) Each Lender agrees that if any form or certification it previously delivered pursuant to
this Section 3.01 expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so. 

(f) Status of Administrative Agent; Tax Documentation. To the extent not previously provided pursuant to
Section 3.01(e)(ii), the Administrative Agent shall deliver to the Borrower, on or prior to the date on which the Administrative Agent becomes a party to this Agreement (and from time to time thereafter upon the reasonable request of the
Borrower), executed copies of the documentation prescribed in Section 3.01(e)(ii)(A) or Section 3.01(e)(ii)(B)(IV), certifying that the Administrative Agent is exempt from U.S. federal backup withholding tax or evidencing its
agreement with the Borrower to be treated as a U.S. Person for U.S. federal withholding purposes, as applicable. The Administrative Agent agrees that if any form or certification it previously delivered pursuant to this Section 3.01
expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower in writing of its legal inability to do so. 

(g) Treatment of Certain Refunds. If any Recipient determines, in its sole discretion exercised in good faith, that it has received a
refund of any Taxes as to which it has been indemnified by any Loan Party or with respect to which any Loan Party has paid additional amounts pursuant to this Section 3.01, it shall pay to the Loan Party an amount equal to such refund
(but only to the extent of indemnity payments made, or additional amounts paid, by a 

  
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Loan Party under this Section 3.01 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) incurred by such Recipient, and without
interest (other than any interest paid by the relevant Governmental Authority with respect to such refund), provided that the applicable Loan Party, upon the request of the Recipient, agrees to repay the amount paid over to such Loan Party
(plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Recipient in the event the Recipient is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in
this subsection, in no event will the applicable Recipient be required to pay any amount to any Loan Party pursuant to this subsection the payment of which would place the Recipient in a less favorable net after-Tax position than such Recipient
would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This
subsection shall not be construed to require any Recipient to make available its tax returns (or any other information relating to its taxes that it deems confidential) to any Loan Party or any other Person. 

(h) Survival. Each party’s obligations under this Section 3.01 shall survive the resignation or replacement of the
Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all other Obligations. 

3.02 Illegality. If any Lender determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is
unlawful, for any Lender or its Lending Office to perform any of its obligations hereunder or make, maintain or fund or charge interest with respect to any Loan or to determine or charge interest rates based upon the LIBOR Daily Floating Rate, or
any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars in the London interbank market, then, on notice thereof by such Lender to the Borrower through the
Administrative Agent, (a) any obligation of such Lender to issue, make, maintain, fund or charge interest with respect to any such Loan shall be suspended, (b) all LIBOR Rate Loans of such Lender shall be converted to Base Rate Loans, and
(c) all Loans made by such Lender to the Borrower following such notice shall be made and maintained as Base Rate Loans, in each case, until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to
such determination no longer exist. Upon any conversion of LIBOR Rate Loans to Base Rate Loans, the Borrower shall also pay accrued interest on the amount so converted. 

3.03 Inability to Determine Rates. If (a) the Administrative Agent determines that (i) Dollar deposits are not being offered
to banks in the London interbank eurodollar market for a term of one month, or (ii) adequate and reasonable means do not exist for determining the LIBOR Daily Floating Rate with respect to a proposed Loan (in each case with respect to
clause (a)(i) above, “Impacted Loans”), or (b) the Administrative Agent or the Required Lenders determine that for any reason the LIBOR Daily Floating Rate with respect to a proposed Loan does not adequately and
fairly reflect the cost to such Lenders of funding such Loan, the Administrative Agent will promptly so notify the Borrower and each Lender. Thereafter, the obligation of the Lenders to make or maintain LIBOR Rate Loans shall be suspended and all
outstanding LIBOR Rate Loans shall be immediately converted to Base Rate Loans, and all Loans made by any Lender following such notice shall be made and maintained as Base Rate 

  
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Loans, in each case, until the Administrative Agent upon the instruction of the Required Lenders revokes such notice. Upon receipt of such notice, the Borrower may revoke any pending request for
a Borrowing or, failing that, will be deemed to have converted such request into a request for a Borrowing of Base Rate Loans in the amount specified therein. 

3.04 Increased Costs; Reserves on LIBOR Rate Loans. 

(a) Increased Costs Generally. If any Change in Law shall: 

(i) 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 or participated in by, any Lender (except any reserve requirement contemplated by Section 3.04(e)); 

(ii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses
(b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital
attributable thereto; or 
 (iii) impose on any Lender or the London interbank market any other condition, cost or expense
affecting this Agreement or LIBOR Rate Loans made by such Lender; 
 and the result of any of the foregoing shall be to increase the cost to such Lender of
making or maintaining any Loan (or of maintaining its obligation to make any such Loan), or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal, interest or any other amount) then, upon request of
such Lender, the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered. 

(b) Capital Requirements. If any Lender determines that any Change in Law affecting such Lender or any Lending Office of such Lender or
such Lender’s holding company, if any, regarding capital or liquidity ratios or requirements has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if
any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made by such Lender to a level below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into
consideration such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy and liquidity), then upon request of such Lender, the Borrower will pay to such Lender such additional amount or
amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered. 
 (c) Certificates for
Reimbursement. A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company as specified in subsection (a) or (b) of this Section and delivered to the Borrower
shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 Business Days after receipt thereof. 

  
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 (d) Delay in Requests. Failure or delay on the part of any Lender to demand compensation
pursuant to the foregoing provisions of this Section 3.04 shall not constitute a waiver of such Lender’s right to demand such compensation, provided that the Borrower shall not be required to compensate a Lender pursuant to
the foregoing provisions of this Section for any increased costs incurred or reductions suffered more than nine months prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or
reductions and of such Lender’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). 
 (e) Reserves on LIBOR Rate Loans. The Borrower shall pay to each Lender, as
long as such Lender shall be required to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency funds or deposits (currently known as “Eurocurrency liabilities”), additional interest on the
unpaid principal amount of each LIBOR Rate Loan equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive), which shall be due and payable on
each date on which interest is payable on such Loan, provided the Borrower shall have received at least 10 days’ prior notice (with a copy to the Administrative Agent) of such additional interest from such Lender. If a Lender fails to
give notice 10 days prior to the relevant Interest Payment Date, such additional interest shall be due and payable 10 days from receipt of such notice. 

(f) Reimbursement Requests. Any amounts requested to be payable pursuant to this Section 3.04 shall be requested in good
faith (and not on an arbitrary and capricious basis) and consistent with similarly situated customers of the applicable Lender after consideration of factors as such Lender then reasonably determines to be relevant. 

3.05 Mitigation Obligations; Replacement of Lenders. 

(a) Designation of a Different Lending Office. Each Lender may make any Loan to the Borrower through any Lending Office, provided that
the exercise of this option shall not affect the obligation of the Borrower to repay the Loan in accordance with the terms of this Agreement. If any Lender requests compensation under Section 3.04, or requires the Borrower to pay any
Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, then at the request of the
Borrower such Lender shall use reasonable efforts to designate a different Lending Office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the
judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.01 or 3.04, as the case may be, in the future, or eliminate the need for the notice pursuant to
Section 3.02, as applicable, and (ii) in each case, would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs
and expenses incurred by any Lender in connection with any such designation or assignment. 

  
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 (b) Replacement of Lenders. If any Lender requests compensation under
Section 3.04, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01 and, in each case, such Lender
has declined or is unable to designate a different lending office in accordance with Section 3.05(a), the Borrower may replace such Lender in accordance with Section 11.13. 

3.06 Survival. Subject to Section 3.04(d), all of the Borrower’s obligations under this Article III shall
survive termination of the Commitments, repayment of all other Obligations hereunder, and resignation or replacement of the Administrative Agent. 

ARTICLE IV. CONDITIONS PRECEDENT TO EFFECTIVENESS AND LOANS 

4.01 Conditions of Effectiveness and Initial Loan. The effectiveness of this Agreement and the obligation of each Lender to make its
initial Loan hereunder is subject to satisfaction of the following conditions precedent: 
 (a) The Administrative Agent’s receipt of
the following, each of which shall be originals, .pdf copies sent via electronic mail or telecopies (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party, each dated
the Closing Date (or, in the case of certificates of governmental officials, the Borrower’s Instruction Certificate and the Borrower Remittance Instructions, a recent date before the Closing Date) and each in form and substance satisfactory to
the Administrative Agent and each of the Lenders: 
 (i) executed counterparts of this Agreement and the Holdco Guaranty,
each in sufficient in number for distribution to the Administrative Agent, each Lender and the Borrower; 
 (ii) a Note
executed by the Borrower in favor of each Lender requesting a Note; 
 (iii) the Servicing Agreement executed by the parties
thereto; 
 (iv) the Custodial Agreement executed by the parties thereto; 

(v) a Pledge Agreement duly executed by the Pledgor, together with certificates or instruments, if any, representing the
Collateral pledged thereunder accompanied by all endorsements, powers and/or documents required by the Pledge Agreement; 

(vi) a perfection certificate duly executed by the Borrower and the Pledgor; 

(vii) copies of UCC, tax and judgment lien searches, or equivalent reports or searches, each of a recent date listing all
effective financing statements, lien notices or comparable documents (together with copies of such financing statements and documents) that name the Borrower or any Pledgor as debtor and that are filed in those jurisdictions in which the Borrower or
such Pledgor is organized or maintains its 

  
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principal place of business and such other searches, if any, that the Administrative Agent reasonably deems necessary or appropriate, none of which encumber the Collateral covered or intended to
be covered by the Collateral Documents (other than Liens permitted to exist pursuant to the terms hereof) and if any such financing statement covers Collateral, termination statements (or similar documents) for filing in all applicable jurisdictions
as may be necessary to terminate any such effective financing statements (or equivalent filings); 
 (viii) proper financing
statements in form appropriate for filing under the UCC of all jurisdictions that the Administrative Agent may reasonably deem necessary or desirable in order to perfect the Liens created under the Collateral Documents, covering the Collateral
described therein; 
 (ix) evidence that all other actions, recordings and filings that the Administrative Agent may deem
reasonably necessary or desirable in order to create or perfect the Liens created under the Collateral Documents have been taken; 

(x) a duly completed Borrower’s Instruction Certificate executed by a Responsible Officer of the Borrower, together with
such certified copies of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of
each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents to which such Loan Party is a party; 

(xi) such documents and certifications as the Administrative Agent may reasonably require to evidence that each Loan Party is
duly organized or formed, and that each Loan Party is validly existing, in good standing and qualified to engage in business in each jurisdiction in which the conduct of its business requires such qualification, except to the extent that failure to
do so could not reasonably be expected to have a Material Adverse Effect; 
 (xii) customary written opinions from the Loan
Parties’ legal counsel, including, if applicable, appropriate local counsel, covering authority, legality, validity, binding effect and enforceability of the Loan Documents, non-contravention with law, contracts and Organization Documents, and
attachment and perfection of Liens, as well as such other matters as the Administrative Agent may require; the legal counsel and the terms of the opinions must be acceptable to the Administrative Agent; 

(xiii) a certificate of a Responsible Officer of each Loan Party either (A) attaching copies of all consents, licenses and
approvals required in connection with the execution, delivery and performance by such Loan Party and the validity against such Loan Party of the Loan Documents to which it is a party, and such consents, licenses and approvals shall be in full force
and effect, or (B) stating that no such consents, licenses or approvals are so required; 

  
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 (xiv) a certificate signed by a Responsible Officer of the Borrower certifying
that on the Closing Date (A) before and after giving effect to the effectiveness of this Agreement and any Loans to be made on the Closing Date, the representations and warranties made in this Agreement and the other Loan Documents, or which
are contained in any document furnished at any time under or in connection herewith or therewith, are true and correct in all material respects (or if qualified by “materiality,” “material adverse effect” or similar language, in
all respects (after giving effect to such qualification)) except (1) to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (or if qualified
by “materiality,” “material adverse effect” or similar language, in all respects (after giving effect to such qualification)) as of such earlier date, (2) in the case of the representations and warranties set forth on
Exhibit E, which representations and warranties are true and correct with respect to each Pledged Asset subject only to any exceptions set forth in the Confirmation Statement with respect to such Pledged Asset or in any Exception Notice with
respect to such Pledged Asset which is delivered to the Administrative Agent at least ten Business Days prior to the date that a requested Loan is to be made and (3) that for purposes of this Section 4.01, the representations and
warranties contained in subsections (a) and (b) of Section 6.05 shall be deemed to refer to the most recent statements furnished pursuant to subsections (a) and (b), respectively, of
Section 7.01, (B) no Default shall have occurred and is then continuing, or would result from any Borrowing proposed to be made on the Closing Date or from the application of the proceeds thereof, (C) there has been no event or
circumstance since the date of the Audited Financial Statements that has had or could be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect and (D) no action, suit, investigation or proceeding is
pending or, to the knowledge of any Loan Party, threatened in any court or before any arbitrator or Governmental Authority that (x) relates to this Agreement or any other Loan Document, or any of the transactions contemplated hereby or thereby,
or (y) would reasonably be expected to have a Material Adverse Effect; 
 (xv) duly completed Borrower Remittance
Instructions signed by a Responsible Officer of the Borrower; 
 (xvi) a duly completed Compliance Certificate as of the last
day of the fiscal quarter of Holdco most recently ended prior to the Closing Date; 
 (xvii) the financial statements
referenced in Section 6.05; 
 (xviii) all documentation and other information that the Administrative Agent or
any Lender requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)); and 
 (xix) a duly executed omnibus power of attorney substantially in the form of Exhibit M
irrevocably appointing the Administrative Agent its attorney-in-fact with full power to (i) record any Assignment of Mortgage and assignment of assignment of leases and rents and (ii) take such other steps as may be reasonably necessary or
desirable to enforce the Secured Parties’ rights against any Pledged Assets and the related ELA Documents. 

  
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 (xx) such other assurances, certificates, documents, consents or opinions as the
Administrative Agent or the Required Lenders reasonably may require. 
 (b) Any fees required to be paid on or before the Closing Date shall
have been paid. 
 (c) Unless waived by the Administrative Agent, the Borrower shall have paid all fees, charges and disbursements of
counsel to the Administrative Agent (directly to such counsel if requested by the Administrative Agent) to the extent invoiced prior to or on the Closing Date, plus such additional amounts of such fees, charges and disbursements as shall constitute
its reasonable estimate of such fees, charges and disbursements incurred or to be incurred by it through the closing proceedings (provided that such estimate shall not thereafter preclude a final settling of accounts between the Borrower and
the Administrative Agent). 
 Without limiting the generality of the provisions of the last paragraph of Section 11.03, for
purposes of determining compliance with the conditions specified in this Section 4.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other
matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

 4.02 Conditions to all Loans with Respect to a Proposed Loan Asset. The obligation of each Lender to honor any Loan Notice
requesting a Loan with respect to a Proposed Loan Asset is subject to the satisfaction of the following conditions precedent; provided that the Administrative Agent and the Required Lenders in their sole discretion may permit the Borrower to
satisfy any such conditions precedent by not later than the third Business Day after the Initial Funding Date, so long as (i) such conditions precedent are described in the Confirmation Statement with respect to such Proposed Loan Asset
(collectively, the “Delayed Conditions”) and (ii) the Borrower causes an Acceptable Attorney to deliver to the Administrative Agent and the Custodian an Attorney’s Bailee Letter with respect to the ELA Documents to be
delivered on or prior to the Initial Funding Date with respect to such Proposed Loan Asset: 
 (a) The representations and warranties made in
this Agreement and the other Loan Documents, or which are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct in all material respects (or if qualified by “materiality,”
“material adverse effect” or similar language, in all respects (after giving effect to such qualification)) on and as of the date of such Loans (other than the representation in Section 6.05(c), which shall be made only as of
the Closing Date) except (i) to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (or if qualified by “materiality,”
“material adverse effect” or similar language, in all respects (after giving effect to such qualification)) as of such earlier date, (ii) in the case of the representations and warranties set forth on Exhibit E, which
representations and warranties shall be true and correct with respect to each Pledged Asset subject only to exceptions set forth in (x) the Confirmation Statement with respect to such 

  
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Pledged Asset or (y) an Exception Notice with respect to such Pledged Asset received by the Administrative Agent at least ten Business Days prior to the date that the requested Loan is to be
made and (iii) that for purposes of this Section 4.02, the representations and warranties contained in subsections (a) and (b) of Section 6.05 shall be deemed to refer to the most recent
statements furnished pursuant to subsections (a) and (b), respectively, of Section 7.01. 
 (b) No Default
shall exist, or would result from such proposed Borrowing or from the application of the proceeds thereof. 
 (c) The Administrative Agent
shall have received a Loan Notice in accordance with the requirements hereof. 
 (d) The Administrative Agent shall have received a Pledge
Proposal and a Due Diligence Package with respect to the Proposed Loan Asset, in accordance with the requirements hereof, and all other information which the Administrative Agent believes to be reasonably necessary for the Administrative Agent or
any Lender to make an informed business decision with respect to the eligibility of such Proposed Loan Asset, the Borrower shall have certified to Administrative Agent that the Borrower has no knowledge of any material information concerning such
Proposed Loan Asset which is not reflected in the related Diligence Material or otherwise disclosed to the Administrative Agent for the benefit of the Lenders in writing, and the Administrative Agent and Required Lenders shall have determined, in
their sole and absolute discretion, that the Proposed Loan Asset is an Eligible Loan Asset and shall have delivered a Confirmation Statement to the Borrower. 

(e) The Administrative Agent shall have received the Confirmation Statement with respect to such Proposed Loan Asset duly executed by the
Borrower in accordance with the requirements hereof. 
 (f) The Administrative Agent shall have received a duly completed Availability
Certificate demonstrating that immediately after giving pro forma effect to the making of such requested Loan, (i) the Total Outstandings will not exceed the Maximum Available Amount and (ii) the Pledged Asset Total Outstandings with
respect to such Proposed Loan Asset will not exceed the Borrowing Base Amount for such Proposed Loan Asset. 
 (g) Before and immediately
after giving pro forma effect to the making of such requested Loan, Holdco will be in compliance with the Financial Covenants. 
 (h) To the
extent such Loan is to be funded after the first anniversary of the Closing Date, before and immediately after giving effect pro forma effect to the making of such requested Loan, the Borrower shall be in compliance with all Concentration Limits.

 (i) Concurrently with the funding of the Loan with respect to the Proposed Loan Asset, the Borrower shall deliver to the Administrative
Agent a Redirection Letter executed in blank and addressed to the Mortgagor or related servicer or lead lender under the Proposed Loan Asset. 

  
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 (j) The Custodian shall have received from the Borrower (with an electronic copy to the
Administrative Agent), together with a fully completed and signed Custodial Delivery Certificate together with all schedules thereto, or, in the case of a Table Funded Loan Asset or other Proposed Loan Asset with Delayed Conditions, an Acceptable
Attorney acting under an Attorney’s Bailee Letter shall have received from the Borrower, the following documents pertaining to such Proposed Loan Asset, to the extent applicable: 

(i) the original executed Mortgage Note, Mezzanine Note or Participation Certificate, as applicable (and, if applicable, one
or more original allonges) bearing all intervening endorsements, endorsed “Pay to the order of                      without
recourse” and signed in the name of the last endorsee (the “Last Endorsee”) by an authorized Person of the Last Endorsee (provided that, in the event that such Proposed Loan Asset was acquired by the Last Endorsee in a
merger, the signature must be in the following form: “[Last Endorsee], successor by merger to [name of predecessor]” and, in the event that such Proposed Loan Asset was acquired or originated by the Last Endorsee while doing business under
another name, the signature must be in the following form: “[Last Endorsee], [formerly known] or [doing business] as [previous name]”) or a lost note affidavit in a form reasonably approved by Buyer, with a copy of the applicable Mortgage
Note, Mezzanine Note or Participation Certificate attached thereto; 
 (ii) the original loan agreement and any guarantee
executed in connection with such Proposed Loan Asset; provided that if an original guarantee has been lost, a copy may be delivered together with a certificate of a Responsible Officer of the Borrower certifying that the original of the
guarantee has been lost, such copy represents a true, correct and complete copy of the original and, if the Borrower should ever locate the original of the guarantee, the Borrower agrees to promptly provide to the Administrative Agent written notice
of same and promptly deliver the original of the guarantee to the Custodian; 
 (iii) (x) the original Mortgage with evidence
of recording thereon, or a copy thereof together with a certificate of a Responsible Officer of the Borrower certifying that such copy represents a true, correct and complete copy of the original and that such original has been submitted for
recordation in the appropriate governmental recording office of the jurisdiction where the Mortgaged Property is located and (y) with respect to any Mezzanine Loan, an original of any pledge or security agreement executed in connection with
such Mezzanine Note (including, without limitation, all original membership certificates, equity interests powers in blank, acknowledgements and confirmations related thereto); 

(iv) the originals of all assumption, modification, consolidation or extension agreements with evidence of recording thereon,
or copies thereof together with a certificate of a Responsible Officer of the Borrower certifying that such copies represent true, correct and complete copies of the originals and that such originals have been submitted for recordation in the
appropriate governmental recording office of the jurisdiction where the Mortgaged Property is located; 

  
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 (v) the original Assignment of Mortgage in blank for such Proposed Loan Asset, in
form and substance acceptable for recordation in the appropriate governmental recording office of the jurisdiction where the Mortgaged Property is located and otherwise acceptable to the Administrative Agent and signed in the name of the Last
Endorsee; provided that in the event that such Proposed Loan Asset was acquired by the Last Endorsee in a merger, the signature must be in the following form: “[Last Endorsee], successor by merger to [name of predecessor]” and, in
the event that such Proposed Loan Asset was acquired or originated by the Last Endorsee while doing business under another name, the signature must be in the following form: “[Last Endorsee], [formerly known] or [doing business] as [previous
name]”; 
 (vi) the originals of all intervening assignments of mortgage (if any), with evidence of recording thereon,
or copies thereof together with a certificate of a Responsible Officer of the Borrower certifying that such copies represent true, correct and complete copies of the originals and that such originals have been submitted for recordation in the
appropriate governmental recording office of the jurisdiction where the Mortgaged Property is located; 
 (vii) (x) an
original or copy of the attorney’s opinion of title and abstract of title or the original mortgagee title insurance policy (or, as applicable, UCC policy), or if the original mortgagee title insurance policy (or, as applicable, UCC policy) has
not been issued, a copy of the irrevocable marked commitment to issue the same and (y) if such Proposed Loan Asset is a Mezzanine Loan, an original or copy of the attorney’s opinion of title and abstract of title or the original or copy of
owner’s title insurance policy (with a mezzanine endorsement and assignment of title proceeds), or if the owner’s title insurance policy (with a mezzanine endorsement and assignment of title proceeds) has not been issued, a copy of the
irrevocable marked commitment to issue the same; 
 (viii) the original of each security agreement, chattel mortgage or
equivalent document (if any), executed in connection with the Proposed Loan Asset or a copy of same together with a certificate of a Responsible Officer of the Borrower certifying that such copy represents a true, correct and complete copy thereof;

 (ix) the original assignment of leases and rents (if any), together with all intervening assignments of assignment of
leases and rents, in each case, with evidence of recording thereon, or a copy thereof together with a certificate of a Responsible Officer of the Borrower certifying that such copy represents a true, correct and complete copy of the original and,
that such original has been submitted for recordation in the appropriate governmental recording office of the jurisdiction where the Mortgaged Property is located; 

(x) the original assignment of assignment of leases and rents in blank for such Proposed Loan Asset (other than a Proposed Loan
Asset that is a Mezzanine Loan), in form and substance acceptable for recordation in the appropriate governmental recording office of the jurisdiction where the Mortgaged Property is located and otherwise acceptable to the Administrative Agent and
signed in the name of the Last Endorsee; provided that in the event that the Proposed Loan Asset was acquired by the 

  
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Last Endorsee in a merger, the signature must be in the following form: “[Last Endorsee], successor by merger to [name of predecessor]” and, in the event that such Proposed Loan Asset
was acquired or originated by the Last Endorsee while doing business under another name, the signature must be in the following form: “[Last Endorsee], [formerly known] or [doing business] as [previous name]”; 

(xi) a copy of the UCC financing statements (including, without limitation, any UCC-1 fixture filings), and all necessary UCC
continuation statements, in each case with evidence of filing thereon or copies thereof together with a certificate of a Responsible Officer of the Borrower certifying that such copy represents a true, correct and complete copy and that such UCC
financing statements or continuation statements have been submitted for recordation in the appropriate governmental recording office of the jurisdiction where the Mortgaged Property is located together with evidence that such UCC financing
statements or continuation statements have been sent for filing, and UCC assignments in blank, which UCC assignments shall be in form and substance acceptable for filing in the applicable jurisdictions; 

(xii) an original of the environmental indemnity agreement or similar guaranty or indemnity, whether stand-alone or
incorporated into the applicable loan documents (if any); provided that if such original environmental indemnity agreement or similar guaranty or indemnity has been lost, a copy may be delivered together with a certificate of a Responsible
Officer of the Borrower certifying that the original of such agreement has been lost, such copy represents a true, correct and complete copy of the original, and if the Borrower should ever locate the original, the Borrower agrees to promptly
provide to the Administrative Agent written notice of same and promptly deliver the original of the environmental indemnity agreement or similar guaranty or indemnity to the Custodian; 

(xiii) an original omnibus assignment in blank of all other agreements and instruments relating to the Proposed Loan Asset,
which shall include an assignment of any Pledged Hedging Arrangements, or such other documents necessary and sufficient to transfer to the Administrative Agent, for the benefit of the Secured Parties, all of the Borrower’s right, title and
interest in and to the Proposed Loan Asset (if any); 
 (xiv) Mortgagor’s certificate or title affidavit (if any); 

(xv) a disbursement letter or settlement statement from the Mortgagor to the original lender (if any); 

(xvi) a survey of the Mortgaged Property (if any) as accepted by the title company for issuance of the Title Policy; 

(xvii) an original or copy of the Mortgagor’s, and, if applicable, any guarantor’s opinion of counsel (if any), in
form and substance reasonably satisfactory to the Administrative Agent; 
 (xviii) an original or copy of any assignment of
any management agreements, permits, contracts and other material agreements (if any); 

  
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 (xix) a copy of all servicing agreements (other than the Servicing Agreement) and
servicing records related to such Proposed Asset, which Borrower shall deliver to Servicer (with a copy to the Administrative Agent); 

(xx) [Reserved]; 

(xxi) an original or copy of any documents with respect to any Mortgagor Hedging Arrangements; 

(xxii) the original of all letters of credit issued and outstanding as security for such Proposed Loan Asset (if any), with any
modifications, amendments or endorsements in blank necessary to permit the Administrative Agent to draw upon them when and if it is contractually permitted to do so pursuant to this Agreement (if any); 

(xxiii) copies or originals of all other material letters, agreements, instruments and certificates relating to the Proposed
Loan Asset, including without limitation intercreditor agreements, co-lender agreements, participation agreements, administrative agreements and participation certificates, if any; 

(xxiv) the originals or copies of officer’s or secretary’s certificates attaching all documents relating to the
formation and organization of the related Mortgagor under such Proposed Loan Asset, together with all consents and resolutions delivered in connection with such Mortgagor’s obtaining such Proposed Loan Asset; and 

(xxv) all other material documents and instruments evidencing, guaranteeing, insuring, securing or modifying such Proposed Loan
Asset, executed and delivered in connection with, or otherwise relating to, such Proposed Loan Asset, including all documents establishing or implementing any lockbox pursuant to which the Borrower is entitled to receive any payments from cash flow
of the underlying real property. 
 (k) The Administrative Agent shall have received evidence that all insurance required to be maintained
pursuant to the ELA Documents (including, without limitation, insurance referred to in Exhibit E (subject to any exceptions set forth in the applicable Confirmation Statement and any Exception Notice which has been delivered to the
Administrative Agent at least ten Business Days prior to the date that a requested Loan is to be made)) with respect to such Proposed Loan Asset has been obtained and is in effect or will be in effect concurrently with funding, and all such
insurance shall be in form, scope and substance, and with such insurance carriers, satisfactory to the Administrative Agent. 
 (l) The
Administrative Agent shall have received all other documents, certificates, information, financial statements, reports, approvals and opinions of counsel as the Administrative Agent or any Lender may require, including, without limitation, with
respect to the Servicing Agreement, an executed copy of Exhibit F thereto and an updated Exhibit B thereto. 
 (m) The Borrower shall have
paid all fees, if any, due and payable on such date in accordance with the Fee Letter. 

  
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 Each Loan Notice submitted by the Borrower shall be deemed to be a representation and warranty
that (i) the conditions specified in Sections 4.02(a), (b), (g) and (h) have been satisfied on and as of the date of the applicable Borrowing and (ii) the information set forth in such Loan Notice
is true and correct and omits no material fact necessary to make the same not misleading. 
 4.03 Conditions to all Loans with Respect to
Future Funding Amounts. The obligation of each Lender to honor any Loan Notice requesting a Loan with respect to a Future Funding Amount is subject to the following conditions precedent: 

(a) The representations and warranties made in this Agreement and the other Loan Documents, or which are contained in any document furnished at
any time under or in connection herewith or therewith, shall be true and correct in all material respects (or if qualified by “materiality,” “material adverse effect” or similar language, in all respects (after giving effect to
such qualification)) on and as of the date of such Loans (other than the representation in Section 6.05(c), which shall be made only as of the Closing Date) except (i) to the extent that such representations and warranties specifically
refer to an earlier date, in which case they shall be true and correct in all material respects (or if qualified by “materiality,” “material adverse effect” or similar language, in all respects (after giving effect to such
qualification)) as of such earlier date, (ii) in the case of the representations and warranties set forth on Exhibit E, which representations and warranties shall be true and correct with respect to each Pledged Asset subject only to
exceptions set forth in (x) the Confirmation Statement with respect to such Pledged Asset or (y) an Exception Notice with respect to such Pledged Asset received by the Administrative Agent at least ten Business Days prior to the date that
the requested Loan is to be made and (iii) that for purposes of this Section 4.03, the representations and warranties contained in subsections (a) and (b) of Section 6.05 shall be deemed to refer
to the most recent statements furnished pursuant to subsections (a) and (b), respectively, of Section 7.01. 

(b) The Administrative Agent shall have received a Loan Notice in accordance with the requirements hereof. 

(c) The Administrative Agent shall have received from the Borrower a copy of any updated Custodial Delivery Certificate that includes any
additional documents that are delivered to the Custodian pursuant to Section 5.08(k) or Section 5.09 in connection with the future funding advance to be made by the Borrower in respect of the applicable Future Funding Pledged
Asset, together with an appropriately updated Trust Receipt relating to such Future Funding Pledged Asset, if applicable. 
 (d) On and as
of the date of such Loan (1) no Default under Section 9.01(a), and no Material Non-Monetary Default shall have occurred and be continuing, (2) no event or circumstance has occurred and is continuing that constitutes a Material
Adverse Effect and (3) all of the representations and warranties in the Loan Documents with respect to the applicable Future Funding Pledged Asset (subject to any exceptions thereto set forth in the Confirmation Statement) are true and correct
in all material respects and all of the conditions to such future funding advance under the underlying loan documents have been satisfied. 

  
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 (e) The amount of the proposed Loan does not exceed the Future Funding Amount with respect to the
applicable Future Funding Pledged Asset, multiplied by the Advance Rate applicable to such Future Funding Pledged Asset. 
 (f) The
Administrative Agent shall have received a duly completed Availability Certificate demonstrating that immediately after giving pro forma effect to the making of such requested Loan (i) the Total Outstandings will not exceed the Maximum
Available Amount and (ii) the Pledged Asset Total Outstandings with respect to the applicable Future Funding Pledged Asset will not exceed the Borrowing Base Amount for such Future Funding Pledged Asset. 

(g) Before and immediately after giving pro forma effect to the making of such requested, Holdco will be in compliance with the Financial
Covenants. 
 (h) To the extent such Loan is to be funded after the first anniversary of the Closing Date, before and immediately after
giving effect pro forma effect to the making of such requested Loan, the Borrower shall be in compliance with all Concentration Limits. 

(i) The Borrower shall have paid all fees, if any, due and payable on such date in accordance with the Fee Letter. 

Each Loan Notice submitted by the Borrower with respect to a Future Funding Amount shall be deemed to be a representation and warranty that
(i) the conditions specified in Sections 4.03(a), (d), (e), (g) and (h) have been satisfied on and as of the date of the applicable Borrowing and (ii) the information set forth in such Loan
Notice is true and correct and omits no material fact necessary to make the same not misleading. 
 4.04 Conditions to all Loans with
Respect to Excess Borrowing Base Capacity. The obligation of each Lender to honor any Loan Notice requesting a Loan with respect to the Excess Borrowing Base Capacity of any Pledged Asset is subject to the following conditions precedent: 

(a) The representations and warranties made in this Agreement and the other Loan Documents, or which are contained in any document furnished at
any time under or in connection herewith or therewith, shall be true and correct in all material respects (or if qualified by “materiality,” “material adverse effect” or similar language, in all respects (after giving effect to
such qualification)) on and as of the date of such Loans (other than the representation in Section 6.05(c), which shall be made only as of the Closing Date) except (i) to the extent that such representations and warranties specifically
refer to an earlier date, in which case they shall be true and correct in all material respects (or if qualified by “materiality,” “material adverse effect” or similar language, in all respects (after giving effect to such
qualification)) as of such earlier date, (ii) in the case of the representations and warranties set forth on Exhibit E, which representations and warranties shall be true and correct with respect to each Pledged Asset subject only to
exceptions set forth in (x) the Confirmation Statement with respect to such Pledged Asset or (y) an Exception Notice with respect to such Pledged Asset received by the Administrative Agent at least ten Business Days prior to the date that
the requested Loan is to be made and (iii) that for purposes of this Section 4.04, the representations and warranties contained in subsections (a) and (b) of Section 6.05 shall be deemed to refer
to the most recent statements furnished pursuant to subsections (a) and (b), respectively, of Section 7.01. 

  
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 (b) No Default shall exist, or would result from such proposed Borrowing or from the application
of the proceeds thereof. 
 (c) The Administrative Agent shall have received a Loan Notice in accordance with the requirements hereof. 

(d) The amount of the proposed Loan does not exceed the Excess Borrowing Base Capacity with respect to the applicable Pledged Asset. 

(e) The Administrative Agent shall have received a duly completed Availability Certificate demonstrating that immediately after giving pro
forma effect to the making of such requested Loan (i) the Total Outstandings will not exceed the Maximum Available Amount and (ii) the Pledged Asset Total Outstandings with respect to the applicable Pledged Asset will not exceed the
Borrowing Base Amount for such Pledged Asset. 
 (f) Before and immediately after giving pro forma effect to the making of such requested
Loan, Holdco will be in compliance with the Financial Covenants. 
 (g) To the extent such Loan is to be funded after the first anniversary
of the Closing Date, before and immediately after giving effect pro forma effect to the making of such requested Loan, the Borrower shall be in compliance with all Concentration Limits. 

(h) The Borrower shall have paid all fees, if any, due and payable on such date in accordance with the Fee Letter. 

Each Loan Notice submitted by the Borrower with respect to the Excess Borrowing Base Capacity of a Pledged Asset shall be deemed to be a
representation and warranty that (i) the conditions specified in Sections 4.04(a), (b), (d), (f) and (g) have been satisfied on and as of the date of the applicable Borrowing and (ii) the
information set forth in such Loan Notice is true and correct and omits no material fact necessary to make the same not misleading. 

ARTICLE V. SECURITY INTEREST AND COLLATERAL 

5.01 Grant of Security Interest. The Borrower hereby pledges, assigns by way of security and grants to Administrative Agent, for the
ratable benefit of the Secured Parties, to secure the prompt and complete payment and performance when due of the Obligations, a security interest in all of the Borrower’s right, title and interest in, to and under the following, whether now
owned or existing, or hereafter arising, created or acquired and wherever located: 
 (a) all amounts advanced by the Lenders to or for the
account of the Borrower under this Agreement to fund a Pledged Asset until that Pledged Asset is closed and the proceeds thereof disbursed; 

(b) all of the Eligible Loan Assets (including, for the avoidance of doubt, all security interests, mortgages and liens on personal or real
property securing the Eligible Loan Assets and all servicing rights), the ELA Documents, the Servicing Agreement and the Custodial Agreement; 

  
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 (c) all Hedging Arrangements related to the Collateral (“Pledged Hedging
Arrangements”) and the Borrower’s accounts in which those Hedging Arrangements are held (“Pledged Hedging Accounts”), including all rights to payment arising under the Pledged Hedging Arrangements and the Pledged
Hedging Accounts, except that the Administrative Agent’s security interest in the Pledged Hedging Arrangements and Pledged Hedging Accounts is limited to benefits, including rights to payment, related to the Collateral; 

(d) all deposit accounts, including the Collection Account, and all amounts and property now or hereafter on deposit therein and all interest
or other amounts now or hereafter accrued thereon; 
 (e) all Income from the Pledged Assets; 

(f) all insurance policies and insurance proceeds relating to any Pledged Asset or the related Mortgaged Property; 

(g) all “accounts”, “chattel paper”, “documents”, “equipment”, “fixtures”, “general
intangibles”, “goods”, “securities accounts”, “securities”, “instruments”, “inventory”, “investment property”, “letter-of-credit rights”, “supporting obligations”
and “proceeds” of any of the foregoing, each as defined in the UCC relating to or constituting any and all of the foregoing; and 

(h) all replacements, substitutions or distributions on or proceeds, payments and profits of, and books, records and files relating to, any
and all of the foregoing, together with all escrow accounts, documents, instruments, files, surveys, certificates, correspondence, appraisals, computer programs, tapes, discs, cards, accounting records (including all information, records, tapes,
data, programs, discs and cards necessary or helpful in the administration or servicing of the Collateral) and other information and data of the Borrower relating to the Collateral. 

5.02 Potential Pledged Assets. Notwithstanding anything to the contrary, the Borrower shall be permitted to acquire or originate assets
from time to time prior to pledging such assets as Pledged Assets based on its good faith belief that such assets will be considered Eligible Loan Assets and eventually pledged as Pledged Assets (such assets, prior to the time they become Pledged
Assets, referred to as “Potential Pledged Assets”). For the avoidance of doubt, the Borrower shall not be required to take any actions to perfect the security interest of the Administrative Agent, for the benefit of the Secured
Parties, in any Potential Pledged Asset unless and until such Potential Pledged Asset becomes a Pledged Asset. The Administrative Agent, at the request of the Borrower, shall promptly release its Lien, if any, on any Potential Pledged Asset and will
(at the sole cost of the Borrower) execute and deliver such documents as the Borrower may reasonably request to evidence the release of such Potential Pledged Asset from any Lien under the Loan Documents, which documents shall be reasonably
satisfactory to the Administrative Agent. 
 5.03 Authenticated Record. This Agreement constitutes an authenticated record which
authorizes the Administrative Agent to file such financing statements, assignments of financing statements filed by the Borrower, and amendments thereto or continuations thereof as the Administrative Agent determines as appropriate to perfect or
protect the security interests created by this Agreement. 

  
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 5.04 Lien on Deposit Accounts, etc. (a) To further secure the prompt payment and
performance of its Obligations, the Borrower hereby grants to the Administrative Agent a continuing security interest in and Lien upon all amounts credited to any deposit account of the Borrower, including all funds and other items credited to the
Collection Account. The Borrower hereby authorizes and directs each bank or other depository to deliver to the Administrative Agent, upon request, all balances in any Deposit Account maintained for the Borrower, without inquiry into the authority or
right of the Administrative Agent to make such request. 
 (a) Subject to the terms of the Servicing Agreement (as in effect on the Closing
Date), the Borrower will direct and use commercially reasonable efforts to cause all Available Income and any other distributions and payments on the Collateral (collectively, the “Collateral Payments”) to be deposited into the
Collection Account within two (2) Business Days of receipt of such Collateral Payments by the Servicer or any Loan Party or, in the case of receipt of an original promissory note or other instrument (and any allonges or endorsements thereto
reflecting any chain of title thereof to the Borrower), delivered to the Administrative Agent or to the Custodian to be held for the benefit of the Administrative Agent pursuant to the Custodial Agreement. 

(b) Subject to Section 5.04(d), the Borrower and the Administrative Agent shall each have “control” (as defined in
accordance with the UCC in effect in the State of New York from time to time and used in this Section 5.04 as therein defined) of the Collection Account. The Administrative Agent agrees that it will not exercise “control” of
the Collection Account unless an Event of Default has occurred and is continuing. The Borrower hereby agrees that notwithstanding the foregoing it shall not suffer or permit the collected balance of the Collection Account to be less than $5,000 at
any time unless at such time the Administrative Agent has exclusive “control” of the Collection Account. 
 (c) Upon the
occurrence and during the continuance of an Event of Default, the Administrative Agent may at any time in its discretion elect to terminate (i) the right of the Borrower to issue any instructions with respect to the Collection Account and
(ii) any other right or ability of the Borrower to access or withdraw or transfer funds or other items from the Collection Account. Upon any such election, the Administrative Agent shall have exclusive “control” of the Collection
Account, and shall have the exclusive right to issue any instructions with respect to the Collection Account and have the exclusive right to access or withdraw or transfer funds or other items from the Collection Account. 

5.05 Delivery of Collateral; Standard of Care. 

(a) The Borrower shall cause all Collateral, including Collateral constituting original promissory notes or other instruments (together with
all allonges and endorsements thereto reflecting a complete chain of title of such promissory notes or other instruments to the Borrower) to be delivered to the Custodian to be held by the Custodian for the benefit of the Administrative Agent
pursuant to the Custodial Agreement, and the Administrative Agent shall 

  
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be entitled to deliver such instruments and agreements, and shall take such actions, as the Administrative Agent deems appropriate under applicable Law to evidence or perfect its Lien on any
Collateral, or otherwise to give effect to the intent of this Agreement in accordance with Section 5.09. 
 (b) Neither the
Administrative Agent nor any of the Secured Parties shall have responsibility for (i) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relating to any Collateral, whether or not
the Administrative Agent or any other Secured Party has or is deemed to have knowledge of such matters or (ii) taking any necessary steps to preserve rights against any Person with respect to any Collateral. 

5.06 Release of Pledged Assets. 

(a) Upon satisfaction of each of the “Release Conditions” specified in Section 5.06(b) with respect to any proposed
release of any Collateral constituting a Pledged Asset from the Lien created under this Agreement (each a “Release Transaction”), the release contemplated by such Release Transaction shall be effective automatically and without
further action of any Person and: 
 (i) the Administrative Agent shall, at the sole expense of the Borrower, execute and
deliver such documents as the Borrower may reasonably request as necessary or desirable to evidence the release of the Lien of the Administrative Agent on such Pledged Asset; 

(ii) It is understood and agreed that no release pursuant to this Section 5.05 shall impair or otherwise adversely
affect the Liens, security interests, guarantees and other rights of the Administrative Agent or the Secured Parties under the Loan Documents not being released. 

(b) For purposes of this Section 5.06(b), the “Release Conditions” shall be deemed to have been satisfied with
respect to any proposed Release Transaction if: 
 (i) the Borrower shall have delivered to the Administrative Agent (with a
copy to the Custodian), at least five Business Days prior to the date of the proposed Release Transaction (or such shorter period of time as agreed to by the Administrative Agent and the Custodian in writing), a written notice requesting such
Release Transaction (a “Release Notice”), which Release Notice shall identify each Pledged Asset to be released from the Liens created under the Loan Documents as part of the proposed Release Transaction, and the date proposed for
consummation of the Release Transaction; 
 (ii) immediately before and after giving effect to such Release Transaction, no
Default has occurred and is continuing on such date (or would exist immediately after giving effect to the proposed Release Transaction); 

(iii) Holdco will be in compliance with the Financial Covenants on a pro forma basis immediately after giving effect to the
proposed Release Transaction (and any contemporaneous prepayment or borrowing of Loans and/or pledge of additional Borrowing Base Assets); 

  
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 (iv) Total Outstandings shall not exceed the Maximum Available Amount on a pro
forma basis immediately after giving pro forma effect to the proposed Release Transaction (and any contemporaneous prepayment or borrowing of Loans and/or pledge of additional Pledged Assets); 

(v) Pledged Asset Total Outstandings with respect to each Pledged Asset will not exceed the Borrowing Base Amount for such
Pledged Asset after giving pro forma effect to the proposed Release Transaction and any contemporaneous reallocation of Loans made with respect to the Pledged Asset that is the subject of the Release Transaction to other Pledged Assets with Excess
Borrowing Base Capacity at such time; 
 (vi) to the extent such Release Transaction is to be effected after the first
anniversary of the closing Date, immediately after giving pro forma effect to the proposed Release Transaction, the Borrower shall be in compliance with all Concentration Limits; 

(vii) at least two Business Days prior to the proposed release date (or such shorter period of time as agreed to by the
Administrative Agent in writing), the Administrative Agent shall have received (1) a duly completed Availability Certificate demonstrating that the condition set forth in clauses (iv) and (v) above will be satisfied and,
and (2) a certificate executed by a Responsible Officer of the Borrower certifying to the Administrative Agent that the conditions in clauses (ii), (iii) and (vi) above will be satisfied; 

(viii) The Borrower shall have made any prepayment required by the terms of Section 2.03(b) or (c); and 

(ix) if the proposed release date with respect to such Release Transaction is more than 90 days prior to the Maturity Date (as
in effect on such proposed release date), unless such Release Transaction is an Exempt Release Transaction, the Borrower shall have paid the Administrative Agent (for the account of the Lenders) the applicable fee, if any, as set forth in the Fee
Letter with respect to such Release Transaction. 
 5.07 Representations and Warranties Regarding Pledged Assets. The Borrower
represents and warrants to the Administrative Agent and the Lenders that as of the date of this Agreement and at all times while this Agreement is in effect: 

(a) each Pledged Asset pledged hereunder, conforms at such time to the applicable representations and warranties set forth in Exhibit E,
subject only to any exceptions set forth in the Confirmation Statement with respect to such Pledged Asset and any Exception Notice delivered to the Administrative Agent for such Pledged Asset at least ten (10) Business Days prior to such time.
It is understood and agreed that the representations and warranties set forth in Exhibit E (subject to any exceptions set forth in the applicable Confirmation Statement and any Exception Notice delivered to the Administrative Agent for such
Pledged Asset at least ten (10) Business Days prior to such time) shall survive delivery of the respective ELA Documents to the Administrative Agent or its designee to the extent permitted by applicable Law; and 

  
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 (b) neither the Borrower, Holdco, any of their respective Subsidiaries nor the directors or
executive officers of the Borrower, Holdco or any of their respective Subsidiaries have any ownership interest, right to acquire any ownership interest (other than equity pledges in connection with a Mezzanine Loan) or equivalent economic interest
in (a) any property, including any Mortgaged Property, securing a Pledged Asset, (b) the Mortgagor with respect to a Pledged Asset or a Mortgage Loan supporting a Pledged Security, or (c) any other obligor on, or guarantor of, any
related Mortgage Note, Mezzanine Note or Participation Certificate. 
 5.08 Additional Covenants Relating to Collateral. 

(a) The Borrower will, if reasonably requested by the Administrative Agent or any Lender, furnish to the Administrative Agent and the Lenders
from time to time statements and schedules further identifying and describing the Collateral and such other reports and information in connection with the Collateral as the Administrative Agent or any Lender may reasonably request, all in such
detail as the Administrative Agent may reasonably specify. The Borrower and the Pledgor each agrees to take any and all actions necessary to defend title to the Collateral against all persons and to defend the Lien of the Administrative Agent, for
the benefit of the Secured Parties, in the Collateral and the priority thereof against any Lien. 
 (b) Neither the Borrower nor the Pledgor
will suffer or permit any (i) change in its legal name, (ii) change in the location of its chief executive office, (iii) change in its identity or organizational structure, (iv) change in its U.S. taxpayer identification number
(or equivalent thereof) or organizational identification number, if any, (v) change in its jurisdiction of organization or incorporation (in each case, including by merging with or into any other entity, reorganizing, dissolving, liquidating,
reorganizing or organizing in any other jurisdiction) or (vi) move, or consent to the Custodian moving, the ELA Documents with respect to any Pledged Asset from the location thereof except for any Acceptable Attorney’s delivery of such
documents to the Custodian, if applicable, or for releases of ELA Documents made in accordance with Article 5 of the Custodial Agreement, unless in each case (A) it shall have given the Administrative Agent not less than thirty days’ prior
written notice (in the form of certificate signed by a Responsible Officer), or such lesser notice period agreed to by the Administrative Agent, of its intention so to do, clearly describing such change and providing such other information in
connection therewith as the Administrative Agent may reasonably request and (B) it shall have taken all action reasonably satisfactory to the Administrative Agent to maintain the perfection and priority of the security interest of the
Administrative Agent for the benefit of the Secured Parties in the Collateral, if applicable. The Borrower and the Pledgor each hereby agrees to promptly provide the Administrative Agent with certified Organization Documents reflecting any of the
changes described in the preceding sentence. 
 (c) The Borrower will, in all material respects, perform and comply with all of its
obligations in respect of the Collateral owned by it and all agreements to which it is a party or by which it is bound relating to the Collateral. 

(d) [Reserved]. 

  
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 (e) Without in any way limiting the foregoing and subject to clause (g) below, so long as no
Event of Default has occurred and is continuing, the Borrower shall have the right to exercise all voting rights or other rights relating to the Collateral owned by it for all purposes not inconsistent with this Agreement or any other Loan Document;
provided, however, that no vote or other right shall be exercised or action taken by any Loan Party with respect to any item of Collateral which would reasonably be expected to have a material adverse effect on the value of such item
of Collateral. 
 (f) All Collateral Payments and other distributions in respect of any of the Collateral, if received by the Borrower,
shall be received in trust for the benefit of the Secured Parties until deposited into the Collection Account or, in the case of an original promissory note or other instrument (and any allonges or endorsements thereto reflecting any chain of title
thereof to the Borrower), delivered to the Custodian. 
 (g) The Borrower shall not send any instruction letter, or otherwise instruct any
Mortgagor, any borrower, other obligor or other servicer, as applicable, to make any payment due on any Pledged Asset other than in accordance with the Servicing Agreement, and shall not send any instruction letter, or otherwise instruct the
Servicer to make any payment of Available Income to any account other than the Collection Account. 
 (h) The Borrower agrees that it will
not interfere with any right, power or remedy of the Administrative Agent or any Lender provided for in this Agreement or now or hereafter existing at law or in equity or by statute or otherwise, or the exercise or beginning of the exercise by any
Secured Party of any one or more of such rights, powers or remedies. 
 (i) THE BORROWER HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS THE
ADMINISTRATIVE AGENT AS ITS PROXY AND ATTORNEY IN FACT TO EXERCISE WITH RESPECT TO THE COLLATERAL DURING THE CONTINUANCE OF AN EVENT OF DEFAULT, INCLUDING THE RIGHT TO VOTE SUCH COLLATERAL AND TO EXECUTE AND DELIVER AGREEMENTS OR INSTRUMENTS OF
TRANSFER OR ASSIGNMENT, WITH FULL POWER OF SUBSTITUTION TO DO SO. IN ADDITION TO THE RIGHT TO VOTE ANY SUCH COLLATERAL, THE APPOINTMENT OF THE ADMINISTRATIVE AGENT AS PROXY AND ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT TO EXERCISE, DURING THE
CONTINUANCE OF AN EVENT OF DEFAULT, ALL OTHER RIGHTS, POWERS, PRIVILEGES AND REMEDIES TO WHICH A HOLDER OF SUCH COLLATERAL WOULD BE ENTITLED, INCLUDING THE RIGHT TO EXECUTE AND DELIVER AGREEMENTS OR INSTRUMENTS OF TRANSFER OR ASSIGNMENT AND CONSENT
RIGHTS RELATING TO THE COLLATERAL (INCLUDING EXCHANGE, SUBSCRIPTION OR ANY OTHER RIGHTS, PRIVILEGES, OR OPTIONS PERTAINING TO ANY INVESTMENT PROPERTY CONSTITUTING SUCH COLLATERAL) AS IF IT WERE THE ABSOLUTE OWNER THEREOF. THE RIGHT OF THE
ADMINISTRATIVE AGENT TO EXERCISE SUCH PROXY SHALL BE EFFECTIVE, AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY ACTION (INCLUDING ANY TRANSFER OF ANY SUCH COLLATERAL ON THE RECORD BOOKS OF THE ISSUER THEREOF) BY ANY PERSON (INCLUDING THE ISSUER OF
SUCH PLEDGED COLLATERAL OR ANY OFFICER OR AGENT THEREOF), DURING THE CONTINUANCE OF AN EVENT OF DEFAULT. THE APPOINTMENT OF THE 

  
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ADMINISTRATIVE AGENT AS PROXY AND ATTORNEY-IN-FACT PURSUANT TO THIS SECTION 5.08(i) IS COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE UNTIL THE DATE ON WHICH THIS AGREEMENT IS
TERMINATED. NOTWITHSTANDING ANYTHING CONTAINED HEREIN, NEITHER THE ADMINISTRATIVE AGENT, NOR ANY OF ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES SHALL HAVE ANY DUTY TO EXERCISE ANY RIGHT OR POWER GRANTED HEREUNDER OR
OTHERWISE OR TO PRESERVE THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY DELAY IN DOING SO, EXCEPT IN RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO THEIR OWN GROSS NEGLIGENCE, BAD FAITH OR WILLFUL MISCONDUCT AS DETERMINED BY A COURT
OF COMPETENT JURISDICTION; PROVIDED THAT, IN NO EVENT SHALL THEY BE LIABLE FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES. 

(j) The Borrower shall (i) obtain all necessary consents, provide all necessary notices and take all other actions, in each case pursuant
to the relevant ELA Documents, as shall be necessary in order for the Borrower to pledge to the Administrative Agent, for the benefit of the Secured Parties, the related Pledged Assets in accordance with such ELA Documents and (ii) provide
evidence to the Administrative Agent reasonably satisfactory to the Administrative Agent of the foregoing. 
 (k) The Administrative Agent
agrees that it will only exercise its rights with respect to the omnibus power of attorney delivered pursuant to Section 4.01(a)(xix) during the continuance of an Event of Default. 

(l) The Administrative Agent is in possession of a complete, true and accurate set of copies of each of the ELA Documents with respect to each
Pledged Asset, the applicable originals and copies of which have been delivered to the Custodian (or, in the case of a Table Funded Loan Asset or any other Pledged Asset with respect to which there are Delayed Conditions, that are held by an
Acceptable Attorney pursuant to an Attorney Bailee Letter for delivery to the Custodian within three Business Days following the applicable Pledge Date). 

(m) The Borrower shall request the Servicer to provide to the Administrative Agent via electronic transmission, promptly upon request by the
Administrative Agent, a servicing tape for all then existing Pledged Assets for the month (or any portion thereof) prior to the date of Administrative Agent’s request. 

(n) [Reserved]. 
 (o) The
Borrower acknowledges that the Administrative Agent has the right to perform continuing due diligence reviews with respect to the Pledged Assets, for purposes of verifying compliance with the representations, warranties and specifications made
hereunder, or otherwise, and the Borrower agrees that upon reasonable prior notice to the Borrower, the Administrative Agent or its authorized representatives will be permitted during normal business hours to examine, inspect, and make copies and
extracts of, all ELA Documents and any and all other documents, records, agreements, instruments or information relating to the Pledged Assets in the possession or under the control of the Borrower, the Servicer or the Custodian. The

  
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Borrower agrees to reimburse the Administrative Agent for any and all reasonable out-of-pocket costs and expenses
incurred by the Administrative Agent with respect to continuing due diligence on the Pledged Assets during the term of this Agreement, which shall be paid by the Borrower to the Administrative Agent within ten (10) days after receipt of an
invoice therefor. 
 (p) For the avoidance of doubt, the Borrower shall be solely responsible for the fees and expenses of the Custodian and
the Servicer. 
 5.09 Further Assurances. 

(a) All Liens granted to the Administrative Agent under the Loan Documents are for the benefit of the Secured Parties. Promptly upon request
by the Administrative Agent, the Borrower, at its sole expense, shall promptly execute and deliver (or cause to be executed and delivered) such further instruments and agreements, and shall take (or cause to be taken) such actions, as the
Administrative Agent deems appropriate under applicable Law or may otherwise reasonably request to evidence or perfect its Lien on any Collateral, or otherwise to give effect to the intent of this Agreement. The Borrower authorizes the
Administrative Agent to file any financing statement that describes the Collateral as “all assets” or “all personal property” of the Borrower, or words to similar effect, and ratifies any action taken by the Administrative Agent
before the Closing Date to effect or perfect its Lien on any Collateral. ). 
 (b) Without limitation of any other provision hereof, if the
Borrower shall at any time become entitled to receive or shall receive any rights, whether in addition to, in substitution of, as a conversion of, or in exchange for a Pledged Asset, or otherwise in respect thereof, the Borrower shall accept the
same on behalf of the Administrative Agent, hold the same in trust for the Administrative Agent and deliver the same forthwith to the Administrative Agent (or the Custodian, as appropriate) in the exact form received, duly endorsed by the Borrower
to the Administrative Agent (if required by the Administrative Agent), together with all related necessary transfer documents, to be held as additional collateral security for the Obligations. 

(c) If any amount payable under or in connection with any of the Collateral shall be or become evidenced by any promissory note, other
instrument or chattel paper, such note (together with all allonges or endorsements thereto reflecting a complete chain of title thereof to the Borrower), instrument or chattel paper (including any such item included in the ELA Documents), together
with any related collateral documents, shall be immediately delivered to the Custodian or an Acceptable Attorney acting under an Attorney Bailee Letter for delivery to the Custodian, duly endorsed in blank and otherwise in a manner satisfactory to
the Administrative Agent, to be held as Collateral pursuant to this Agreement, and the documents delivered in connection herewith. 
 (d)
Upon any delivery of documents to the Custodian pursuant to Section 5.08(k) or this Section 5.09, the Borrower shall deliver to the Administrative Agent a copy of its Custodial Delivery Certificate in connection therewith and
cause the Custodian to deliver to the Administrative Agent an updated Trust Receipt that includes such documents relating to the applicable Pledged Asset. 

  
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 5.10 Collections. 

(a) The Borrower and the Administrative Agent have established and maintain with Bank of America the Collection Account, which is in the name
of the Borrower and under the “control” (as defined in accordance with the UCC in effect in the State of New York from time to time) of the Administrative Agent. All Available Income in respect of the Pledged Assets received by the
Servicer shall be deposited into the Collection Account (subject to the terms of the Servicing Agreement) without any further action of the Borrower or any Secured Party. 

(b) Upon the occurrence and during the continuance of an Event of Default, the Collection Account will be subject to exclusive
“control” (as defined in accordance with the UCC in effect in the State of New York from time to time) by the Administrative Agent, all Available Income in respect of the Pledged Assets received by the Servicer shall continue to be
deposited directly into the Collection Account (subject to the terms of the Servicing Agreement) without any further action of the Borrower or any Secured Party, and the Administrative Agent will apply all Available Income on deposit in the
Collection Account to the Obligations in accordance with Section 9.03. 
 ARTICLE VI. REPRESENTATIONS AND WARRANTIES 

The Borrower and the Pledgor each represents and warrants to the Administrative Agent and the Lenders that: 

6.01 Existence, Qualification and Power. The Borrower (a) is duly incorporated with limited liability as an exempted company,
validly existing and in good standing under the laws of the Cayman Islands with full power to enter into, exercise its rights and perform its obligations under this Agreement and the other Loan Documents and carry on its business. Each other Loan
Party (a) is duly organized, incorporated or formed, validly existing and, as applicable, in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite
governmental licenses, authorizations, consents and approvals to (i) carry on its business and (ii) execute, deliver and perform its obligations under the Loan Documents to which it is a party, and (c) is duly qualified and is
licensed and, as applicable, in good standing under the Laws of each jurisdiction where the conduct of its business requires such qualification or license; except in each case referred to in clause (b)(i) or (c), to the extent
that failure to do so could not reasonably be expected to have a Material Adverse Effect. 
 6.02 Authorization; No Contravention.
The execution, delivery and performance by each Loan Party of each Loan Document to which such Person is party, have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the
terms of any of such Loan Party’s Organization Documents; (b) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (i) any Contractual Obligation to
which such Loan Party is a party or affecting such Loan Party or the properties of such Loan Party or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Loan Party or its property is
subject; or (c) violate any Law. 

  
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 6.03 Governmental Authorization; Other Consents. No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with (a) the execution, delivery or performance by, or enforcement against, any Loan Party of
this Agreement or any other Loan Document, (b) the grant of Liens pursuant to the Collateral Documents or (c) the perfection or maintenance of the Liens created under the Collateral Documents (including the first priority nature thereof).

 6.04 Binding Effect. This Agreement has been, and each other Loan Document, when delivered hereunder, will have been, duly
executed and delivered by each Loan Party that is party thereto. This Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal, valid and binding obligation of each Loan Party that is party thereto, enforceable
against each Loan Party that is party thereto in accordance with its terms. 
 6.05 Financial Statements; No Material Adverse Effect.

 (a) The Audited Financial Statements (i) were prepared in accordance with GAAP consistently applied throughout the period covered
thereby, except as otherwise expressly noted therein; and (ii) fairly present the financial condition of Holdco and its consolidated Subsidiaries as of the date thereof and their results of operations for the period covered thereby in
accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein. 
 (b) The
unaudited consolidated balance sheet of Holdco and its consolidated Subsidiaries dated June 30, 2017, and the related consolidated statements of income or operations, shareholders’ equity and cash flows for the fiscal quarter ended on that
date (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and (ii) fairly present the financial condition of Holdco and its consolidated
Subsidiaries as of the date thereof and their results of operations for the period covered thereby, subject, in the case of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments. 

(c) Since the date of the Audited Financial Statements, there has been no event or circumstance, either individually or in the aggregate, that
has had or could reasonably be expected to have a Material Adverse Effect. 
 6.06 Litigation. There are no actions, suits,
proceedings, claims or disputes pending or, to the knowledge of any Loan Party after due and diligent investigation, threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or against any Loan Party or
against any of their respective properties or revenues that (a) purport to affect or pertain to this Agreement or any other Loan Document, or any of the transactions contemplated hereby, or (b) either individually or in the aggregate would
reasonably be expected to have a Material Adverse Effect. 

  
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 6.07 No Default. No Loan Party is in default under or with respect to any Contractual
Obligation that would, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. No Default has occurred and is continuing or would result from the consummation of the transactions contemplated by this
Agreement or any other Loan Document. 
 6.08 Insurance. The properties of the Borrower and the Pledgor are insured with financially
sound and reputable insurance companies not Affiliates of the Sponsor, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities
where the applicable Loan Party operates. 
 6.09 Taxes. The Loan Parties have filed all federal, state and other material tax
returns and reports required to be filed, and have paid all federal, state and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets otherwise due and payable, except
those which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP. There is no proposed tax assessment against the any Loan Party that would, if
made, have a Material Adverse Effect. 
 6.10 ERISA. 

(a) Each Pension Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other federal or state
laws. Each Pension Plan that is intended to be a qualified plan under Section 401(a) of the Code has received a favorable determination letter from the Internal Revenue Service to the effect that the form of such Pension Plan is qualified under
Section 401(a) of the Code and the trust related thereto has been determined by the Internal Revenue Service to be exempt from federal income tax under Section 501(a) of the Code, or an application for such a letter is currently being
processed by the Internal Revenue Service. To the best knowledge of the Borrower, nothing has occurred that would prevent or cause the loss of such tax-qualified status. 

(b) There are no pending or, to the best knowledge of any Loan Party, threatened claims, actions or lawsuits, or action by any Governmental
Authority, with respect to any Plan that could reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that has resulted or could
reasonably be expected to result in a Material Adverse Effect. 
 (c) (i) No ERISA Event has occurred, and neither any Loan Party nor
any ERISA Affiliate is aware of any fact, event or circumstance that could reasonably be expected to constitute or result in an ERISA Event with respect to any Pension Plan; (ii) each Loan Party and each ERISA Affiliate has met all applicable
requirements under the Pension Funding Rules in respect of each Pension Plan, and no waiver of the minimum funding standards under the Pension Funding Rules has been applied for or obtained; (iii) as of the most recent valuation date for any
Pension Plan, the funding target attainment percentage (as defined in Section 430(d)(2) of the Code) is 60% or higher and neither the Borrower nor any ERISA Affiliate knows of any facts or circumstances that could reasonably be expected to
cause the funding target attainment percentage for any such plan to drop below 60% as of the most recent valuation date; (iv) neither any Loan Party nor any ERISA Affiliate has incurred any liability to the PBGC other than for the payment of
premiums, and there are no premium payments which have become due that are 

  
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unpaid; (v) neither any Loan Party nor any ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or Section 4212(c) of ERISA; and (vi) no Pension
Plan has been terminated by the plan administrator thereof nor by the PBGC, and no event or circumstance has occurred or exists that could reasonably be expected to cause the PBGC to institute proceedings under Title IV of ERISA to terminate any
Pension Plan. 
 (d) Neither any Loan Party nor any ERISA Affiliate thereof maintains or contributes to, or has any unsatisfied obligation
to contribute to, or liability under, any active or terminated Pension Plan, other than Pension Plans not otherwise prohibited by this Agreement. 

(e) The Borrower represents and warrants as of the Closing Date that the Borrower is not and will not be using “plan assets” (within
the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA) of one or more Benefit Plans in connection with the Loans. 

6.11 Subsidiaries; Capital Stock. The Borrower has no Subsidiaries, and the Pledgor has no Subsidiaries other than the Borrower. All of
the outstanding Capital Stock of the Borrower has been validly issued, is fully paid and nonassessable and is owned directly by the Pledgor and indirectly by Holdco, in each case, free and clear of all Liens other than Permitted Liens. 

6.12 Margin Regulations; Investment Company Act. 

(a) No Loan Party is engaged and no Loan Party will engage, principally or as one of its important activities, in the business of purchasing
or carrying margin stock (within the meaning of Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying margin stock. 

(b) None of the Borrower, the Pledgor, Holdco or the Sponsor is required to be registered as, or is controlled by, an “investment
company” under the Investment Company Act of 1940. 
 6.13 Disclosure. No report, financial statement, certificate or other
information furnished (whether in writing or orally) by or on behalf of any Loan Party to the Administrative Agent or any Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder or
under any other Loan Document (in each case, as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that, with respect to projected financial information, the Loan Parties represent only that such information was prepared in good faith based upon assumptions believed to be
reasonable at the time. 
 6.14 Compliance with Laws. Each Loan Party is in compliance in all material respects with the requirements
of all Laws and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate
proceedings diligently conducted or (b) the failure to comply therewith, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 

  
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 6.15 Taxpayer Identification Number; Other Identifying Information. The true and correct
U.S. taxpayer identification number of each Loan Party that is a U.S. Person and the true and correct unique identification number of the Borrower that has been issued by its jurisdiction of organization and the name of such jurisdiction are set
forth on Schedule 11.02. 
 6.16 OFAC. Neither the Borrower, nor any of its Subsidiaries, nor, to the knowledge of the
Borrower and its Subsidiaries, any director, officer, employee, agent, Affiliate or representative thereof, is an individual or entity that is, or is owned or controlled by any individual or entity that is (i) currently the subject or target of
any Sanctions, (ii) included on OFAC’s List of Specially Designated Nationals, HMT’s Consolidated List of Financial Sanctions Targets and the Investment Ban List, or any similar list enforced by any other relevant sanctions authority
or (iii) located, organized or resident in a Designated Jurisdiction. 
 6.17 Anti-Corruption Laws; Anti-Money Laundering. 

(a) Each Loan Party and its Subsidiaries have conducted their businesses in compliance with the United States Foreign Corrupt Practices Act of
1977, the UK Bribery Act 2010, and other similar anti-corruption legislation in other jurisdictions and have instituted and maintained policies and procedures designed to promote and achieve compliance with such laws. 

(b) Each Loan Party, its Subsidiaries and, each director, officer or employee thereof are in compliance in all material respects with any
applicable Anti-Money Laundering Law. 
 6.18 EEA Financial Institution. No Loan Party is an EEA Financial Institution. 

6.19 Collateral; Collateral Documents. 

(a) The Borrower has, and shall continue to have, the full right, power and authority to pledge the Collateral pledged and to be pledged by it
under this Agreement. 
 (b) The provisions of the Collateral Documents are effective to create in favor of the Administrative Agent for the
benefit of the Secured Parties a legal, valid and enforceable first priority Lien on all right, title and interest of the respective Loan Parties in the Collateral described therein (including all Capital Stock of the Borrower). Except as
contemplated by the Collateral Documents, no filing or other action will be necessary to perfect or protect such Liens. 
 6.20 Pledged
Assets. Each Mortgage Loan included in any calculation of the Aggregate Borrowing Base Amount (or any other calculation that includes a calculation of the Borrowing Base Amount of Pledged Assets), at the time of such calculation, constituted
Collateral. 
 6.21 Representations as to Foreign Jurisdiction. 

(a) The Borrower is subject to civil and commercial Laws with respect to its obligations under this Agreement and the other Loan Documents to
which it is a party, and the execution, delivery and performance by the Borrower of this Agreement and the other Loan Documents constitute and will constitute private and commercial acts and not public or governmental acts. Neither the Borrower nor
any of its property has any immunity from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) under the laws of the Cayman
Islands in respect of its obligations under the Loan Documents. 

  
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 (b) The Loan Documents are in proper legal form under the Laws of the Cayman Islands for the
enforcement thereof against the Borrower under the Laws of such jurisdiction, and to ensure the legality, validity, enforceability, priority or admissibility in evidence of the Loan Documents. It is not necessary to ensure the legality, validity,
enforceability, priority or admissibility in evidence of the Loan Documents that the Loan Documents be filed, registered or recorded with, or executed or notarized before, any court or other authority in the Cayman Islands or that any registration
charge or stamp or similar tax be paid on or in respect of the Loan Documents or any other document, except for (i) any such filing, registration, recording, execution or notarization as has been made or is not required to be made until the
Loan Document or any other document is sought to be enforced and (ii) any charge or tax as has been timely paid. 
 (c) There is no
tax, levy, impost, duty, fee, assessment or other governmental charge, or any deduction or withholding, imposed by any Governmental Authority in or of the Cayman Islands either (i) on or by virtue of the execution or delivery of the Loan
Documents or (ii) on any payment to be made by the Borrower pursuant to the Loan Documents, except as has been disclosed to the Administrative Agent and except that nominal Cayman Islands stamp duty will be payable if the original Loan
Documents are brought to or executed in the Cayman Islands. 
 (d) The execution, delivery and performance of the Loan Documents by the
Borrower are, under applicable foreign exchange control regulations of the Cayman Islands, not subject to any notification or authorization except (i) such as have been made or obtained or (ii) such as cannot be made or obtained until a
later date (provided that any notification or authorization described in clause (ii) shall be made or obtained as soon as is reasonably practicable). 

ARTICLE VII. AFFIRMATIVE COVENANTS 

So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation hereunder shall remain unpaid or unsatisfied, the
Borrower shall: 
 7.01 Financial Statements. Deliver to the Administrative Agent (or cause to be delivered to the
Administrative Agent) (for distribution to each Lender), in form and detail satisfactory to the Administrative Agent: 
 (a) as soon as
available, but in any event within 90 days after the end of each fiscal year of Holdco (or, if earlier, 15 days after the date required to be filed with the SEC (without giving effect to any extension permitted by the SEC)): 

(i) a consolidated balance sheet of Holdco and its Subsidiaries as at the end of such fiscal year, and the related consolidated
statements of income or operations, changes in shareholders’ equity, and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and prepared in
accordance with GAAP, audited and accompanied by a report and opinion of an independent certified public accountant of nationally recognized standing reasonably 

  
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acceptable to the Required Lenders, which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern”
or like qualification or exception or any qualification or exception as to the scope of such audit; and 
 (ii) a
consolidated balance sheet of the Borrower as at the end of such fiscal year and the related consolidated statement of income or operations for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal
year, all in reasonable detail, certified by the chief executive officer, chief financial officer, treasurer or controller of Holdco as fairly presenting the financial condition, results of operations, of the Borrower in accordance with GAAP; and

 (b) as soon as available, but in any event within 45 days after the end of each of the first three fiscal quarters of each fiscal year of
Holdco (or, if earlier, 5 days after the date required to be filed with the SEC (without giving effect to any extension permitted by the SEC)): 

(i) a consolidated balance sheet of Holdco and its Subsidiaries as at the end of such fiscal quarter, the related consolidated
statements of income or operations for such fiscal quarter and for the portion of Holdco’s fiscal year then ended, and the related consolidated statements of changes in shareholders’ equity, and cash flows for the portion of Holdco’s
fiscal year then ended, in each case setting forth in comparative form, as applicable, the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, all in reasonable detail,
certified by the chief executive officer, chief financial officer, treasurer or controller of Holdco as fairly presenting the financial condition, results of operations, shareholders’ equity and cash flows of Holdco and its Subsidiaries in
accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes; and 
 (ii) a
consolidated balance sheet of the Borrower as at the end of such fiscal quarter and the related consolidated statement of income or operations for such fiscal quarter and for the portion of the Borrower’s fiscal year then ended, in each case
setting forth in comparative form, as applicable, the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, all in reasonable detail, certified by the chief executive
officer, chief financial officer, treasurer or controller of Holdco as fairly presenting the consolidated financial condition and results of operations of the Borrower in accordance with GAAP, subject only to normal year-end audit adjustments and
the absence of footnotes. 
 7.02 Certificates; Other Information. Deliver to the Administrative Agent (or cause to be delivered to
the Administrative Agent) (for distribution to each Lender), in form and detail satisfactory to the Administrative Agent: 
 (a)
substantially concurrently and in any event within five (5) Business Days of each delivery of financial statements referred to in Sections 7.01(a) and (b) (commencing with the delivery of the financial statements for the
fiscal quarter ended September 30, 2017), (i) a duly completed Compliance Certificate, (ii) a duly completed Availability Certificate (in each case, which delivery may, unless the Administrative Agent requests executed originals, be
by 

  
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electronic communication including fax or email and shall be deemed to be an original authentic counterpart thereof for all purposes) and (iii) copies of a rent roll, statement of income or
operations and leasing status report for the most recently ended fiscal quarter for each Pledged Asset, in each case, to the extent actually received by Borrower from the underlying mortgagors or is otherwise reasonably available to Borrower, in
form and substance reasonably satisfactory to the Administrative Agent; 
 (b) promptly and in any event within five (5) Business Days
after the same are available, copies of each annual report, proxy or financial statement or other report or communication sent to the stockholders of the Sponsor, and copies of all annual, regular, periodic and special reports and registration
statements which the Sponsor may file or be required to file with the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934, and not otherwise required to be delivered to the Administrative Agent pursuant hereto; 

(c) promptly and in any event within five Business Days after receipt thereof by the Sponsor or any Loan Party, copies of each notice or other
correspondence received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation or other inquiry by such agency regarding financial or other operational results of the
Sponsor or any Loan Party; and 
 (d) promptly and in any event within five (5) Business Days of Administrative Agent’s request
thereof, such additional information or reports regarding the Collateral, the business, financial or corporate affairs of the Sponsor or any Loan Party, or compliance with the terms of the Loan Documents, as the Administrative Agent may from time to
time reasonably request, including with respect to any lawsuits and/or other matters disclosed in any financial statements of Holdco delivered to the Administrative Agent or disclosed in any Form 8-K filed by Sponsor with the Securities and Exchange
Commission which would reasonably be expected to have a Material Adverse Effect on Holdco’s ability to comply with the Financial Covenants to the extent such requested information is reasonably available to Borrower; provided, that, for
the avoidance of doubt, no Loan Party shall be obligated to provide additional financial statements or compliance certificates other than those required by Section 7.01(a) or (b) or Section 7.02(a). 

Documents required to be delivered pursuant to Section 7.01(a) and (b) or Section 7.02(b) (to the extent
any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the applicable Loan Party posts such documents, or
provides a link thereto on the applicable Loan Party’s website on the Internet at the website address listed on Schedule 11.02 (which website address may be updated by the Borrower by notice to the Administrative Agent); or
(ii) on which such documents are posted on the applicable Loan Party’s behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether
sponsored by the Administrative Agent); provided that the Borrower shall notify the Administrative Agent (by facsimile or electronic mail) of the posting of any such documents and provide to the Administrative Agent by electronic mail
electronic versions (i.e., soft copies) of such documents. The Administrative Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents referred to above, and each Lender shall be solely
responsible for requesting the Administrative Agent to deliver any such documents to it or maintaining its copies of such documents. 

  
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 Each Loan Party hereby acknowledges that (a) the Administrative Agent and/or the Arranger
may, but shall not be obligated to, make available to the Lenders materials and/or information provided by or on behalf of any Loan Party hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on
IntraLinks, Syndtrak, ClearPar, or a substantially similar electronic transmission system (the “Platform”) and (b) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to receive
material non-public information with respect to the Loan Parties or their respective Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such
Persons’ securities. Each Loan Party hereby agrees that (w) all Borrower Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word
“PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the Loan Parties shall be deemed to have authorized the Administrative Agent, the Arranger and the Lenders to treat
such Borrower Materials as not containing any material non-public information with respect to any Loan Party or its securities for purposes of United States federal and state securities laws (provided, however, that to the extent such
Borrower Materials constitute Information, they shall be treated as set forth in Section 11.07); (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated
“Public Side Information;” and (z) the Administrative Agent and the Arranger shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not
designated “Public Side Information.” 
 7.03 Notices. Promptly notify the Administrative Agent and each Lender: 

(a) of the occurrence of any Default of which Borrower has knowledge; 

(b) any events relating to the Collateral that materially adversely affect the rights of the Administrative Agent or the Lenders with respect
thereto; 
 (c) of any matter that has resulted or could reasonably be expected to result in a Material Adverse Effect; 

(d) of the occurrence of any ERISA Event; 

(e) of any material change in accounting policies or financial reporting practices by any Loan Party; and 

(f) of any changes with respect to any Pledged Asset that are material and adverse in terms of the financial performance of such Pledged Asset
or the physical condition of the related Mortgaged Property (i.e., changes that adversely impact the value of the collateral other than to a de minimis extent and in any case relative to and consistent with Administrative Agent’s initial
underwriting or most recent determination of Market Value) in terms of the performance or condition of such Pledged Asset. 

  
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 Each notice pursuant to this Section 7.03 shall be accompanied by a statement of a
Responsible Officer of the Borrower setting forth details of the occurrence referred to therein and stating what action the Loan Parties have taken and propose to take with respect thereto. Each notice pursuant to Section 7.03(a) shall
describe with particularity any and all provisions of this Agreement and any other Loan Document that, to the Borrower’s knowledge, have been breached. 

7.04 Payment of Obligations. Pay and discharge, or cause to be paid and discharged, before the same shall become overdue, all its
obligations and liabilities, including (a) all material tax liabilities, assessments and governmental charges or levies upon it or its properties or assets, unless the same are being contested in good faith by appropriate proceedings diligently
conducted and adequate reserves in accordance with GAAP are being maintained by such Loan Party or such Subsidiary; and (b) all lawful claims which, if unpaid, would by law become a Lien upon its property other than a Permitted Lien. 

7.05 Preservation of Existence, Etc. (a) Preserve, renew and maintain in full force and effect its legal existence and good
standing under the Laws of the jurisdiction of its organization except in a transaction permitted by Section 8.04; (b) take all reasonable action to maintain all material rights, privileges, permits, licenses and franchises
necessary or desirable in the normal conduct of its business; and (c) maintain all authorizations, consents, approvals and licenses from, exemptions of, and filings and registrations with, each Governmental Authority of the Cayman Islands, and
all approvals and consents of each other Person in such jurisdiction, in each case that are required in connection with the Loan Documents, except in the case of clause (b) and (c) where the failure to comply would not
reasonably be expected to have a Material Adverse Effect. 
 7.06 Maintenance of Insurance. Maintain with financially sound and
reputable insurance companies not Affiliates of the Sponsor, insurance with respect to its properties and business against loss or damage of the kinds customarily insured against by Persons engaged in the same or similar business in similar
geographic areas, of such types and in such amounts as are customarily carried under similar circumstances by such other Persons. 
 7.07
Compliance with Laws; Contractual Obligations; Etc.Comply with (a) all applicable Legal Requirements now or hereafter in effect wherever its business is conducted, (b) the provisions of its Organizational Documents, (c) all of its
Contractual Obligations, (d) all agreements and instruments to which it is a party or by which it or any of its properties may be bound and (e) all orders, writs, injunctions, judgments and decrees applicable to it or to its business or
property, except in the case of clause (a), (c), (d) and (e) where the failure to comply would not reasonably be expected to have a Material Adverse Effect. 

7.08 Records and Accounts. (a) Keep, true and accurate records and books of account in which full, true and correct entries in
accordance with GAAP consistently applied, and consistent with the Audited Financial Statements, shall be made of all financial transactions and matters involving the assets and business of the Borrower, except that such information with respect to
the Borrower may be included in the consolidated financial statements of an Affiliate so long as appropriate notation shall be made on such consolidated financial statements to indicate the separate identity of the Borrower from such Affiliate, and
(b) if applicable, maintain adequate accounts and reserves for all taxes (including income taxes), depreciation and amortization of its properties and the properties of its Subsidiaries, contingencies, and other reserves. 

  
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 7.09 Inspection Rights. (a) Permit representatives and independent contractors of the
Administrative Agent to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, senior officers, and independent public
accountants, all at the expense of the Borrower and at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance notice to the Borrower; provided, however, that when an Event
of Default exists the Administrative Agent (or any of its respective representatives or independent contractors) may do any of the foregoing at the expense of the Borrower at any time during normal business hours and with no more than one
(1) Business Days’ advance notice. 
 (b) Without limiting the generality of clause (a) above, the Borrower acknowledges that
the Administrative Agent has the right, at the expense of the Borrower, to perform continuing due diligence reviews with respect to the Pledged Assets, for purposes of verifying compliance with the representations, warranties and specifications made
hereunder, or otherwise, and the Borrower agrees that upon reasonable prior notice to the Borrower, the Administrative Agent or its authorized representatives will be permitted during normal business hours to examine, inspect, and make copies and
extracts of, all ELA Documents and any and all other documents, records, agreements, instruments or information relating to the Pledged Assets in the possession or under the control of the Borrower, the Servicer or the Custodian. 

7.10 Use of Proceeds. Use the proceeds of the Loans only for general corporate purposes not in contravention of any Law or of any Loan
Document. 
 7.11 Further Assurances. Cooperate with the Administrative Agent and the Lenders and promptly execute such further
instruments and documents as the Administrative Agent shall reasonably request, to carry out to their satisfaction the transactions contemplated by this Agreement and the other Loan Documents. 

7.12 Anti-Corruption Laws. Conduct its businesses in compliance with the United States Foreign Corrupt Practices Act of 1977, the UK
Bribery Act 2010, and other similar anti-corruption legislation in other jurisdictions and maintain policies and procedures designed to promote and achieve compliance with such laws. 

7.13 Maintenance of REIT Status; New York Stock Exchange Listing. Cause the Sponsor (a) to continue its method of operation so as
to enable it to meet the requirements for qualification and taxation as a REIT and (b) to remain publicly traded with securities listed on the New York Stock Exchange. 

7.14 Special Purpose Entity. 

(a) not engage in any business other than the origination, acquisition, ownership, hedging, administering, financing and disposition of
Pledged Assets and Potential Pledged Assets and matters incidental thereto, including the performance of its obligations under the Loan Documents and the ELA Documents; 

  
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 (b) pay its debts and liabilities (including allocated employment and overhead expenses) from its
own assets; 
 (c) comply with the provisions of its Organization Documents, including the special purpose provisions set forth therein;

 (d) do, or cause to be done, all things necessary to observe all corporate formalities and to preserve its existence; 

(e) maintain all of its books, records, financial statements and bank accounts separate from those of its Affiliates and any other Person, and
file its own tax returns, if any, which are required by applicable Law (except to the extent consolidation is required under GAAP (in the case of financial statements) or has been elected or is mandatory under the Code or the tax law of any state
(in the case of tax returns) or is required as a matter of applicable Law); provided, however, that the Borrower’s assets may be included in a consolidated financial statements and tax returns of Holdco; provided,
further, that, (i) an appropriate notation shall be made on such consolidated financial statement to indicate the separateness of the Borrower from Holdco and to indicate that the Borrower’s assets and liabilities are not available
to satisfy the debts and other obligations of Holdco or any other Person and (ii) such assets shall also be listed on the Borrower own separate balance sheet; 

(f) be, and at all times hold itself out to the public as, a legal entity separate and distinct from any other Person (including any
Affiliate), correct any known misunderstanding regarding its status as a separate entity, conduct business in its own name, not identify itself or any of its Affiliates as a division or part of the other, maintain and utilize separate stationery,
invoices and checks, and pay to any Affiliate that incurs costs for office space and administrative services that it uses, the amount of such costs allocable to its use of such office space and administrative services; 

(g) not own any property or any other assets other than the Collateral and Potential Pledged Assets; 

(h) not enter into, any contract or agreement with any of its Affiliates, except upon terms and conditions that are substantially similar to
those that would be available on an arm’s-length basis with Persons other than an Affiliate; 
 (i) not incur any Indebtedness or other
obligation, secured or unsecured, direct or indirect, absolute or contingent (including guaranteeing any obligation), other than (A) obligations under the Loan Documents; (B) obligations under the Pledged Assets and the Potential Pledged
Assets and (C) unsecured trade payables in an unpaid amount less than $250,000; 
 (j) not make any loans or advances (other than
Pledged Assets and Potential Pledged Assets) to any other Person, and not acquire obligations or securities of any Affiliate (other than in connection with the origination or acquisition of the Pledged Assets and Potential Pledged Assets) or any
other Person; 

  
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 (k) maintain adequate capital solely through income received from the operations of its business
for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations and remain Solvent. 

(l) not commingle its funds and other assets with those of any of its Affiliates or any other Person and maintain its properties and assets in
such a manner that it will not be costly or difficult to segregate, ascertain or identify its individual assets from those of any of its Affiliates or any other Person; 

(m) not hold itself out to be responsible for the debts or obligations of any other Person or pledge its assets to secure the obligations of
any other Person; and 
 (n) not maintain any employees. 

ARTICLE VIII. NEGATIVE COVENANTS 

So long as any Lender shall have any Commitment hereunder, or any Loan or other Obligation hereunder shall remain unpaid or unsatisfied: 

8.01 Liens; Negative Pledge. The Borrower shall not, directly or indirectly, (1) grant, create, assume or incur or suffer to be
granted, created, assumed or incurred or to exist any Lien of any kind, other than Permitted Liens, upon any of its property or assets of any character whether now owned or hereafter acquired, or upon the income or profits therefrom;
(2) transfer any of its property or assets or the income or profits therefrom for the purpose of subjecting the same to the payment of Indebtedness or performance of any other obligation in priority to payment of the Obligations;
(3) suffer to exist for a period of more than thirty (30) days after the same shall have been incurred any Indebtedness or claim or demand against it that if unpaid might by law or upon bankruptcy or insolvency, or otherwise, be given any
priority whatsoever over its general creditors; or (5) agree to a Negative Pledge with respect to any assets or rights, now owned or hereafter arising, other than Permitted Liens. 

8.02 Investments. The Borrower shall not, directly or indirectly, make or permit to exist or to remain outstanding any Investment
except as permitted under Section 7.14. 
 8.03 Indebtedness. The Borrower shall not create, incur, assume, guarantee or
be or remain liable, contingently or otherwise, with respect to any Indebtedness except as permitted under Section 7.14. 

8.04 Fundamental Changes. The Borrower shall not: 

(a) become a party to any merger or consolidation, or agree to or effect any asset acquisition or disposition or stock acquisition or
disposition (other than the origination, acquisition or disposition of assets in the ordinary course of business consistent with past practices, including the origination, acquisition or disposition of Mortgage Loans and property acquired on
foreclosure of Mortgages); 

  
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 (b) sell, assign, lease, convey, transfer or otherwise dispose of (whether in one transaction or
a series of transactions) all or any substantial part of the Borrower’s business or assets, whether now owned or acquired after the date hereof, other than, in the ordinary course of business consistent with past practices including, without
limitation, and to the extent not otherwise prohibited by this Agreement, Permitted Liens and sales of (i) Mortgage Loans, and (ii) real estate at foreclosure or real estate owned properties following a failed foreclosure sale; or 

(c) issue any additional ownership interests, or rights or instruments convertible into such ownership interests. 

8.05 Dividends. If an Event of Default, shall have occurred and be continuing, the Borrower shall not, directly or indirectly, declare
or pay or incur any obligation (contingent or otherwise) to do so, any dividend or other distribution or payment of any kind on or in respect of, or redeem in whole or in part, any Capital Stock issued by it in excess of the amount required to
maintain the Sponsor’s qualification as a REIT; provided, that no such dividends, distributions or payments shall be permitted to be made if there has been an acceleration of any amount owing under the Loan Documents or during the
continuance of a Default under Section 9.01(a), Section 9.01(c) (resulting from a breach of any of the Financial Covenants), Section 9.01(f) or Section 9.01(g). 

8.06 Transactions with Affiliates. The Borrower shall not, directly or indirectly, enter into any transaction of any kind with any
Affiliate of Holdco, whether or not in the ordinary course of business, other than on fair and reasonable terms substantially as favorable to such Loan Party or such Subsidiary as would be obtainable by such Loan Party or such Subsidiary at the time
in a comparable arm’s length transaction with a Person other than an Affiliate. 
 8.07 Use of Proceeds. The Borrower shall not,
nor shall it suffer or permit the Sponsor or any of the Sponsor’s Subsidiaries to, directly or indirectly, use all or any portion of the proceeds of any Borrowing, whether directly or indirectly, and whether immediately, incidentally or
ultimately, in a manner that would cause any Person (including any individual or entity participating in the transaction, whether as Lender, Arranger, Administrative Agent or otherwise) to be in violation of Regulation U of the FRB. 

8.08 Amendments, Waivers and Terminations of Certain Agreements. 

(a) Neither the Borrower nor the Pledgor shall, directly or indirectly, amend or otherwise change, cancel, terminate or waive in any respect
the terms of any of its Organization Documents other than amendments and modifications that could not reasonably be expected to have a material and adverse effect on (i) the value of any Collateral, (ii) the ability of the Administrative
Agent to foreclose upon or otherwise exercise its rights as a secured creditor with respect to any Collateral or (iii) the ability of any Loan Party to perform its obligations under the Loan Documents, and are not otherwise adverse in any
material respect to the Administrative Agent or the Lenders; or 
 (b) The Borrower shall not, nor shall it permit the Servicer to, directly
or indirectly, (i) amend or otherwise change, cancel, terminate or waive in any respect, any of the terms and conditions of, or settle or compromise any claim in respect of, any Pledged Asset when an Event

  
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of Default is continuing or would result therefrom or (ii) consent or assent to a Significant Pledged Asset Modification of any Pledged Asset without the prior written consent of the
Administrative Agent, which consent shall be in the Administrative Agent’s sole discretion provided that, to the extent the underlying loan documentation provides any standard of reasonableness or other qualifying language applicable to the
Borrower in respect of such Significant Pledged Asset Modification, the Administrative Agent shall make its determination in conformance with such standard. 

8.09 Activities of the Pledgor. The Pledgor shall not at any time (a) create, incur or suffer to exist any Indebtedness or other
material liabilities, other than Indebtedness and other obligations under the Loan Documents to which it is a party, (b) create, incur or suffer to exist any Lien upon any of its property, assets or revenues, other than Permitted Liens,
(c) own any material assets, other than Capital Stock of the Borrower or (d) engage in any business or activity other than (i) the ownership of Capital Stock of the Borrower, (ii) maintaining its existence and
(iii) activities incidental to the businesses or activities described in clauses (i) and (ii) of this clause (d). 
 8.10
Accounting Changes. No Loan Party shall, nor shall it suffer or permit any of its Subsidiaries to, directly or indirectly, (i) make any change in accounting policies or reporting practices except as required by or otherwise in accordance
with GAAP, in each case without providing prompt written notice of such change to the Administrative Agent or (ii) make any change in fiscal year except with the written consent of the Administrative Agent. 

8.11 Sanctions. No Loan Party shall, nor shall it suffer or permit any of its Subsidiaries to, directly or knowingly indirectly, use
the proceeds of any Borrowing, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other individual or entity, to fund any activities of or business with any individual or entity, or in any
Designated Jurisdiction, that, at the time of such funding, is the subject of Sanctions, or in any other manner that will result in a violation by any individual or entity (including any individual or entity participating in the transaction, whether
as Lender, Arranger, Administrative Agent or otherwise) of Sanctions. 
 8.12 Anti-Corruption Laws; Anti-Money Laundering. 

(a) No Loan Party shall, nor shall it suffer or permit any of its Subsidiaries to, directly or knowingly indirectly, use the proceeds of any
Borrowing for any purpose which would breach the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and other similar anti-corruption legislation in other jurisdictions. 

(b) No Loan Party shall, nor shall it suffer or permit any of its Subsidiaries to, directly or knowingly indirectly, engage in any
transaction, investment, undertaking or activity that conceals the identity, source or destination of the proceeds from any category of prohibited offenses designated in any applicable law, regulation or other binding measure by the Organisation for
Economic Cooperation and Development’s Financial Action Task Force on Money Laundering or violate these laws or any other applicable Anti-Money Laundering Law or engage in these actions. 

  
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 ARTICLE IX. EVENTS OF DEFAULT AND REMEDIES 

9.01 Events of Default. Any of the following shall constitute an Event of Default: 

(a) Non-Payment. The Borrower or any other Loan Party fails to pay (i) when and as required to be paid herein, any amount of
principal of any Loan, or (ii) within three (3) Business Days after the same becomes due, any interest on any Loan, or any fee due hereunder, or (iii) within five (5) Business Days after the same becomes due, any other amount
payable hereunder or under any other Loan Document; or 
 (b) Specific Covenants. (i) Any Loan Party fails to perform or observe
any term, covenant or agreement contained in any of Section 7.01 (provided, that, Borrower shall have five (5) Business Days after the occurrence of such Default to cure such Default), 7.02, 7.03, 7.05,
7.10, 7.11, 7.12, 7.13 (after taking into account any cure provisions set forth in the Code that are complied with by the Sponsor) or 7.14 or Article V, Article VIII, or Article XII;
(ii) Holdco fails to perform of observe any term, covenant or agreement contained in the Holdco Guaranty; or (iii) any Loan Party fails to perform or observe any term, covenant or agreement contained in any Collateral Document to which it
is a party, including any Negative Pledge provisions contained therein but excluding any “affirmative covenants” contained therein, unless the failure to perform or observe same would result in an Event of Default under
Section 9.01(k); or 
 (c) Other Defaults. Any Loan Party fails to perform or observe any other covenant or agreement
(not specified in subsection (a) or (b) above) contained in any Loan Document on its part to be performed or observed and such failure continues for 30 days (or if such default is of such a nature that it cannot with
reasonable effort be completely remedied within said period of 30 days, such additional period of time as may be reasonably necessary to cure same, not to exceed 60 days); or 

(d) Representations and Warranties. Any representation, warranty, certification or statement of fact made or deemed made by or on
behalf of the Borrower or any other Loan Party herein (other than with respect to representations or warranties set forth in Exhibit E), in any other Loan Document, or in any document delivered in connection herewith or therewith shall be
incorrect or misleading in any material respect when made or deemed made; or 
 (e) Cross-Default. (i) Any Loan Party
(A) fails to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee (other than Indebtedness hereunder and Indebtedness under Swap
Contracts) having an aggregate principal amount (including undrawn committed or available amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement) of more than the Threshold Amount, or (B) fails
to observe or perform any other agreement or condition relating to any such Indebtedness or Guarantee or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or
other event is to cause, or to permit the holder or holders of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the
giving of notice if required, such Indebtedness (of more than the Threshold Amount) to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically 

  
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or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness (of more than the Threshold Amount) to be made, prior to its stated maturity, or such Guarantee to become
payable or cash collateral in respect thereof to be demanded; or (ii) there occurs under any Swap Contract an Early Termination Date (as defined in such Swap Contract) resulting from (A) any event of default under such Swap Contract as to
which any Loan Party or any Subsidiary thereof is the Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event (as so defined) under such Swap Contract as to which any Loan Party or any Subsidiary thereof is an Affected
Party (as so defined) and, in either event, the Swap Termination Value owed by such Loan Party or such Subsidiary as a result thereof is greater than the Threshold Amount; or 

(f) Insolvency Proceedings, Etc. (i) Any Loan Party institutes or consents to the institution of any proceeding under any
Insolvency Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, provisional liquidator, rehabilitator or similar officer for it or for
all or any material part of its property; or (ii) any receiver, trustee, custodian, conservator, liquidator, provisional liquidator, rehabilitator or similar officer is appointed without the application or consent of any Loan Party and the
appointment continues undischarged or unstayed for 60 calendar days; or (iii) any proceeding under any Insolvency Law relating to any Loan Party or to all or any material part of its property is instituted without the consent of such Person and
continues undismissed or unstayed for 60 calendar days, or an order for relief is entered in any such proceeding; or 
 (g) Inability to
Pay Debts; Attachment. (i) Any Loan Party becomes unable or admits in writing its inability or fails generally to pay its debts as they become due, or (ii) any writ or warrant of attachment or execution or similar process is issued or
levied against all or any material part of the property of any such Person and is not released, vacated or fully bonded within 30 days after its issue or levy; or 

(h) Judgments. There shall remain in force, undischarged, unsatisfied and unstayed, for a period of more than forty-five
(45) days, whether or not consecutive, any uninsured final judgment against any Loan Party (i) one or more final judgments or orders for the payment of money in an aggregate amount (as to all such judgments or orders) exceeding the
Threshold Amount (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage), or (ii) any one or more non-monetary final judgments that have, or could reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect; or 
 (i) ERISA. (i) An ERISA Event occurs with respect to a
Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in liability of any Loan Party under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of the
Threshold Amount, or (ii) any Loan Party or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under
a Multiemployer Plan in an aggregate amount in excess of the Threshold Amount; or 

  
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 (j) Invalidity of Loan Documents. Any provision of any Loan Document, at any time after
its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect; or any Loan Party or any Affiliate thereof contests in any
manner the validity or enforceability of any provision of any Loan Document; or any Loan Party denies that it has any or further liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any provision of any Loan
Document; or 
 (k) Collateral Documents. Any Collateral Document after delivery thereof shall for any reason cease to create a valid
and perfected Lien on the Collateral of the same effect and priority purported to be covered thereby; or 
 (l) Change of Control.
There occurs any Change of Control. 
 9.02 Remedies Upon Event of Default. If any Event of Default occurs and is continuing, the
Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders, take any or all of the following actions: 

(a) declare the commitment of each Lender to make Loans to be terminated, whereupon such commitments and obligation shall be terminated;
provided, that upon the occurrence of an actual or deemed entry of an order for relief with respect to any Loan Party under the Bankruptcy Code of the United States, the obligation of each Lender to make Loans shall automatically terminate;

 (b) declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other amounts owing or
payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by each Loan Party; provided, however,
that upon the occurrence of an actual or deemed entry of an order for relief with respect to any Loan Party under the Bankruptcy Code of the United States, the unpaid principal amount of all outstanding Loans and all interest and other amounts as
aforesaid shall automatically become due and payable without further act of the Administrative Agent or any Lender; 
 (c) foreclose upon or
otherwise enforce its security interest in and Lien on the Collateral to secure all payments and performance of the Obligations in any manner permitted by law or provided for in the Loan Documents; 

(d) notify all obligors under any of the Collateral that the Collateral has been assigned to the Administrative Agent (or to another Person
designated by the Administrative Agent) and that all payments on that Collateral are to be made directly to the Administrative Agent (or such other Person); and following acceleration of any or all Obligations, settle, compromise or release, in
whole or in part, any amounts any obligor owes on any of the Collateral on terms acceptable to the Administrative Agent; enforce payment and prosecute any action or proceeding involving any of the Collateral; and where any Collateral is in default,
foreclose on and enforce any Liens securing that Collateral in any manner permitted by law and sell any property acquired as a result of those enforcement actions; 

(e) require the Borrower and the Custodian to assemble and make available to the Administrative Agent the Collateral and all related books and
records at a place designated by the Administrative Agent, and deliver to the Administrative Agent all ELA Documents and any other instruments, certificates and documents then held by the Custodian relating to one or more of the Pledged Assets; 

  
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 (f) require the Borrower to (i) notify all Mortgagors related to the Pledged Assets to make
payment in respect thereof directly to the Administrative Agent’s Office, and (ii) execute all documents and agreements which are necessary or appropriate to have the Collateral which constitutes Pledged Assets to be assigned to the
Administrative Agent or its designee; 
 (g) exercise exclusive “control” (as defined in accordance with the UCC in effect in the
State of New York from time to time) of the Collection Account; 
 (h) before the disposition of the Collateral, prepare it for disposition
in any manner and to the extent the Administrative Agent deems appropriate; 
 (i) exercise all rights and remedies of a secured creditor
under the UCC or other applicable Law, including selling or otherwise disposing of all or any portion of the Collateral at one or more public or private sales, whether or not the Collateral is present at the place of sale, for cash or credit or
future delivery, on the terms and in the manner as the Administrative Agent may determine in accordance with applicable Law. The Borrower waives any right the Borrower may have to prior notice of the sale of all or any portion of the Collateral to
the extent allowed by applicable law. If notice is required under applicable Law, the Administrative Agent will give the Borrower not less than 10 days’ notice of any public sale or of the date after which any private sale may be held. The
Borrower agrees that 10 days’ notice is reasonable notice. The Administrative Agent may, without notice or publication, adjourn any public or private sale one or more times by announcement at the time and place fixed for the sale, and the sale
may be held at any time or place announced at the adjournment. In the case of a sale of all or any portion of the Collateral on credit or for future delivery, the Collateral sold on those terms may be retained by the Administrative Agent until the
purchaser pays the selling price or takes possession of the Collateral. The Administrative Agent has no liability to the Borrower if a purchaser fails to pay for or take possession of the Collateral sold on those terms, and in the case of any such
failure, the Administrative Agent may sell the Collateral again upon notice complying with this Section; 
 (j) instead of or in conjunction
with exercising the powers of sale granted in this Article IX, the Administrative Agent may proceed by suit at law or in equity to collect all amounts due upon the Collateral, or to foreclose the Administrative Agent’s Lien on and sell
all or any portion of the Collateral pursuant to a judgment or decree of a court of competent jurisdiction; 
 (k) proceed against the
Borrower or any other obligor under any Loan Document subject to any limitations of recourse contained in any Loan Document; and 
 (l)
retain all excess proceeds from the sale or other disposition of the Collateral, and apply them to the payment of the Obligations under Section 9.03. 

  
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 9.03 Application of Funds. After the exercise of remedies provided for in
Section 9.02 (or after the Loans have automatically become immediately due and payable as set forth in the proviso to Section 9.02(b)), any amounts received on account of the Obligations shall, subject to the provisions of
Section 2.14, be applied by the Administrative Agent in the following order: 
 First, to payment of that portion of the
Obligations constituting fees, indemnities, expenses and other amounts (including fees, charges and disbursements of counsel to the Administrative Agent and amounts payable under Article III) payable to the Administrative Agent in its
capacity as such; 
 Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other
than principal and interest) payable to the Lenders (including fees, charges and disbursements of counsel to the respective Lenders and amounts payable under Article III), ratably among them in proportion to the respective amounts described
in this clause Second payable to them; 
 Third, to payment of that portion of the Obligations constituting accrued and
unpaid interest on the Loans and other Obligations, ratably among the Lenders in proportion to the respective amounts described in this clause Third payable to them; 

Fourth, to payment of that portion of the Obligations constituting unpaid principal of the Loans, ratably among the Lenders in
proportion to the respective amounts described in this clause Fourth held by them; and 
 Last, the balance, if any,
after all of the Obligations have been indefeasibly paid in full, to the Borrower or as otherwise required by Law. 
 ARTICLE X.
ADMINISTRATIVE AGENT 
 10.01 Appointment and Authority. 

(a) Each of the Lenders hereby irrevocably appoints Bank of America to act on its behalf as the Administrative Agent hereunder and under the
other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are
reasonably incidental thereto. The provisions of this Article are solely for the benefit of the Administrative Agent and the Lenders, and neither the Borrower nor any other Loan Party shall have rights as a third party beneficiary of any of such
provisions. It is understood and agreed that the use of the term “agent” herein or in any other Loan Documents (or any other similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied
(or express) obligations arising under agency doctrine of any applicable Law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties. 

(b) The Administrative Agent shall also act as the “collateral agent” under the Loan Documents, and each of the Lenders hereby
irrevocably appoints and authorizes the Administrative Agent to act as the agent of such Lender for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Loan Parties to secure any of the Obligations,
together with such powers and discretion as are reasonably incidental thereto. In this connection, the Administrative Agent, as “collateral agent” and any co-agents, sub-agents 

  
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and attorneys-in-fact appointed by the Administrative Agent pursuant to Section 10.05 for purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted
under the Collateral Documents, or for exercising any rights and remedies thereunder at the direction of the Administrative Agent), shall be entitled to the benefits of all provisions of this Article X and Article XI (including
Section 11.04(c), as though such co-agents, sub-agents and attorneys-in-fact were the “collateral agent” under the Loan Documents) as if set forth in full herein with respect thereto. 

10.02 Rights as a Lender. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its
capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise
requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory
capacity for and generally engage in any kind of business with any Loan Party or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders. 

10.03 Exculpatory Provisions. The Administrative Agent shall not have any duties or obligations except those expressly set forth herein
and in the other Loan Documents, and its duties hereunder shall be administrative in nature. Without limiting the generality of the foregoing, the Administrative Agent: 

(a) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is
continuing; 
 (b) shall not have any duty to take any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as
shall be expressly provided for herein or in the other Loan Documents), provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to
liability or that is contrary to any Loan Document or applicable Law, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Insolvency Law or that may effect a forfeiture, modification or
termination of property of a Defaulting Lender in violation of any Insolvency Law; and 
 (c) shall not, except as expressly
set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to any Loan Party or any Affiliate thereof that is communicated to or obtained by the Person
serving as the Administrative Agent or any of its Affiliates in any capacity. 
 The Administrative Agent shall not be liable for any action
taken or not taken by it (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in

  
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good faith shall be necessary, under the circumstances as provided in Sections 11.01 and 9.02) or (ii) in the absence of its own gross negligence or willful misconduct as
determined by a court of competent jurisdiction by a final and non-appealable judgment. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given in writing to the
Administrative Agent by the Borrower or a Lender. 
 The Administrative Agent shall not be responsible for or have any duty to ascertain or
inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in
connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or the creation, perfection or priority of any Lien purported to be created by the Collateral Documents, (v) the value or
sufficiency of any Collateral or (vi) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent. 

10.04 Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been
signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability
for relying thereon. In determining compliance with any condition hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition is satisfactory to such
Lender unless the Administrative Agent shall have received notice to the contrary from such Lender prior to the making of such Loan. The Administrative Agent may consult with legal counsel (who may be counsel for the Loan Parties), independent
accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 

10.05 Delegation of Duties. The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder
or under any other Loan Document by or through any one or more sub agents appointed by the Administrative Agent. The Administrative Agent and any such sub agent may perform any and all of its duties and exercise its rights and powers by or through
their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub agent and to the Related Parties of the Administrative Agent and any such sub agent, and shall apply to their respective activities in
connection with the syndication of the credit facility provided for herein as well as activities as the Administrative Agent. The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent
that a court of competent jurisdiction determines in a final and non-appealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents. 

  
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 10.06 Resignation of Administrative Agent. 

(a) The Administrative Agent may at any time give notice of its resignation to the Lenders and the Borrower; provided that Bank of
America may resign as Administrative Agent only upon the occurrence and during the continuance of an Event of Default. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to
appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States. If no such successor shall have been so appointed by the Required Lenders and shall have accepted
such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the “Resignation Effective Date”), then the retiring
Administrative Agent may (but shall not be obligated to) on behalf of the Lenders, appoint a successor Administrative Agent meeting the qualifications set forth above, provided that in no event shall any such successor Administrative Agent be
a Defaulting Lender or a Prohibited Transferee. Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date. 

(b) If the Person serving as Administrative Agent is a Defaulting Lender pursuant to clause (d) of the definition thereof, the
Required Lenders may, to the extent permitted by applicable law and, unless an Event of Default has occurred and is continuing, with the consent and approval of the Borrower (such consent and approval shall not to be unreasonably withheld of
delayed), by notice in writing to such Person, remove such Person as Administrative Agent and appoint a successor. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days (or
such earlier day as shall be agreed by the Required Lenders) (the “Removal Effective Date”), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date. 

(c) With effect from the Resignation Effective Date or the Removal Effective Date (as applicable) (1) the retiring or removed
Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any Collateral held by the Administrative Agent on behalf of the Secured Parties under any of the Loan
Documents, the retiring or removed Administrative Agent shall continue to hold such Collateral until such time as a successor Administrative Agent is appointed) and (2) except for any indemnity payments or other amounts then owed to the
retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender directly, until such time, if any, as the Required
Lenders appoint a successor Administrative Agent as provided for above. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring (or removed) Administrative Agent (other than as provided in Section 3.01(h) and other than any rights to indemnity payments or other amounts owed to the retiring or removed Administrative Agent as
of the Resignation Effective Date or the Removal Effective Date, as applicable), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already
discharged therefrom as provided above in this Section). The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor.
After the retiring or removed Administrative 

  
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Agent’s resignation or removal hereunder and under the other Loan Documents, the provisions of this Article X and Section 11.04 shall continue in effect for the
benefit of such retiring or removed Administrative Agent, its sub agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them (i) while the retiring or removed Administrative Agent was
acting as Administrative Agent and (ii) after such resignation or removal for as long as any of them continues to act in any capacity hereunder or under the other Loan Documents, including (a) acting as collateral agent or otherwise
holding any Collateral on behalf of any of the Lenders and (b) in respect of any actions taken in connection with transferring the administrative agency or collateral agency to any successor Administrative Agent. 

10.07 Non-Reliance on Administrative Agent and Other Lenders. Each Lender acknowledges that it has, independently and without reliance
upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to
make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder. 

10.08 No Other Duties, Etc. Anything herein to the contrary notwithstanding, the Arranger shall not have any powers, duties or
responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent or a Lender hereunder. 

10.09 Administrative Agent May File Proofs of Claim; Credit Bidding. In case of the pendency of any proceeding under any Insolvency Law
or any other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the
Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise: 

(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and
all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under or pursuant to the Fee Letter, Section 2.07 and
Section 11.04) allowed in such judicial proceeding; and 
 (b) to collect and receive any monies or other
property payable or deliverable on any such claims and to distribute the same; 

  
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 and any custodian, receiver, assignee, trustee, liquidator, provisional liquidator, sequestrator or other similar
official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to
pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under or pursuant to the
Fee Letter, Section 2.07 and Section 11.04. 
 Nothing contained herein shall be deemed to authorize the
Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender to authorize the Administrative Agent
to vote in respect of the claim of any Lender in any such proceeding. 
 The Secured Parties hereby irrevocably authorize the Administrative
Agent, at the direction of the Required Lenders, to credit bid all or any portion of the Obligations (including accepting some or all of the Collateral in satisfaction of some or all of the Secured Obligations pursuant to a deed in lieu of
foreclosure or otherwise) and in such manner purchase (either directly or through one or more acquisition vehicles) all or any portion of the Collateral (a) at any sale thereof conducted under the provisions of the Bankruptcy Code of the United
States, including under Sections 363, 1123 or 1129 of the Bankruptcy Code of the United States, or any similar Laws in any other jurisdictions to which a Loan Party is subject, (b) at any other sale or foreclosure or acceptance of collateral in
lieu of debt conducted by (or with the consent or at the direction of) the Administrative Agent (whether by judicial action or otherwise) in accordance with any applicable Law. In connection with any such credit bid and purchase, the Obligations
owed to the Secured Parties shall be entitled to be, and shall be, credit bid on a ratable basis (with Obligations with respect to contingent or unliquidated claims receiving contingent interests in the acquired assets on a ratable basis that would
vest upon the liquidation of such claims in an amount proportional to the liquidated portion of the contingent claim amount used in allocating the contingent interests) in the asset or assets so purchased (or in the Capital Stock or debt instruments
of the acquisition vehicle or vehicles that are used to consummate such purchase). In connection with any such bid (i) the Administrative Agent shall be authorized to form one or more acquisition vehicles to make a bid, (ii) to adopt
documents providing for the governance of the acquisition vehicle or vehicles (provided that any actions by the Administrative Agent with respect to such acquisition vehicle or vehicles, including any disposition of the assets or Capital Stock
thereof shall be governed, directly or indirectly, by the vote of the Required Lenders, irrespective of the termination of this Agreement and without giving effect to the limitations on actions by the Required Lenders contained in clauses
(a) through (g) of Section 11.01 of this Agreement, (iii) the Administrative Agent shall be authorized to assign the relevant Obligations to any such acquisition vehicle pro rata by the Lenders, as a result of
which each of the Lenders shall be deemed to have received a pro rata portion of any Capital Stock and/or debt instruments issued by such an acquisition vehicle on account of the assignment of the Obligations to be credit bid, all without the need
for any Secured Party or acquisition vehicle to take any further action, and (iv) to the extent that Obligations that are assigned to an acquisition vehicle are not used to acquire Collateral for any reason (as a result of another bid being
higher or better, because the amount of Obligations assigned to the acquisition vehicle exceeds the amount of debt credit bid by the acquisition vehicle or otherwise), such Obligations shall automatically be reassigned to the Lenders pro rata and
the Capital Stock and/or debt instruments issued by any acquisition vehicle on account of the Obligations that had been assigned to the acquisition vehicle shall automatically be cancelled, without the need for any Secured Party or any acquisition
vehicle to take any further action. 

  
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 10.10 Collateral Matters. Without limiting the provisions of
Section 10.09, each of the Lenders irrevocably authorize the Administrative Agent, at its option and in its discretion, to release any Lien on any property granted to or held by the Administrative Agent under any Loan Document
(i) upon termination of the Facility Amount and payment in full of all Obligations (other than contingent indemnification obligations), (ii) upon consummation of a Release Transaction relating to such property in accordance with
Section 5.06, (iii) subject to Section 5.02, that is a Potential Pledged Asset, or (iv) subject to Section 11.01, if approved, authorized or ratified in writing by the Required Lenders. 

The Administrative Agent shall not be responsible for or have a duty to ascertain or inquire into any representation or warranty regarding the
existence, value or collectability of the Collateral, the existence, priority or perfection of the Administrative Agent’s Lien thereon, or any certificate prepared by any Loan Party in connection therewith, nor shall the Administrative Agent be
responsible or liable to the Lenders for any failure to monitor or maintain any portion of the Collateral. 
 10.11 Distribution by the
Administrative Agent. If in the opinion of the Administrative Agent distribution of any amount received by it in such capacity hereunder or under any other Loan Document might involve any liability, it may refrain from making distribution until
its right to make distribution shall have been adjudicated by a court of competent jurisdiction or has been resolved by the mutual consent of all Lenders. In addition, the Administrative Agent may request full and complete indemnity, in form and
substance satisfactory to it, prior to making any such distribution. If a court of competent jurisdiction shall adjudge that any amount received and distributed by the Administrative Agent is to be repaid, each person to whom any such distribution
shall have been made shall either repay to the Administrative Agent its proportionate share of the amount so adjudged to be repaid or shall pay over to the same in such manner and to such persons as shall be determined by such court. 

ARTICLE XI. MISCELLANEOUS 

11.01 Amendments, Etc. No amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any
departure by the Borrower or any other Loan Party therefrom, shall be effective unless in writing signed by the Required Lenders and the Borrower or the applicable Loan Party, as the case may be, and acknowledged by the Administrative Agent, and
each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no such amendment, waiver or consent shall: 

(a) waive any condition set forth in Section 4.01(a) without the written consent of each Lender; 

(b) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 9.02) without the
written consent of such Lender; 

  
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 (c) postpone any date fixed by this Agreement or any other Loan Document for any payment
(excluding mandatory prepayments) of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; 

(d) reduce the principal of, or the rate of interest specified herein on, any Loan, or (subject to clause (ii) of the second
proviso to this Section 11.01) any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; provided, however, that only the consent of
the Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive any obligation of the Borrower to pay interest at the Default Rate; 

(e) change Section 9.03 in a manner that would alter the pro rata sharing of payments required thereby without the written consent
of each Lender; 
 (f) change any provision of this Section or the definition of “Required Lenders” or any other provision
hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender; or 

(g) release any Guarantor from any Guaranty Agreement or release all or substantially all of the Collateral in any transaction or series of
related transactions, in each case, without the written consent of each Lender; 
 and, provided further, that (i) no amendment, waiver or
consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan Document; and (ii) the Fee Letter
may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto. 
 With respect to any
requested amendment, waiver, consent or other action which requires the approval of the Required Lenders or all of the Lenders, as the case may be, in accordance with the terms of this Agreement, or if the Administrative Agent is required hereunder
to seek, or desires to seek, the approval of the Required Lenders or all of the Lenders, as the case may be, prior to undertaking a particular action or course of conduct, the Administrative Agent in each such case shall provide each Lender with
written notice of any such request for amendment, waiver or consent or any other requested or proposed action or course of conduct, accompanied by such detailed background information and explanations as may be reasonably necessary to determine
whether to approve or disapprove such amendment, waiver, consent or other action or course of conduct. The Administrative Agent may (but shall not be required to) include in any such notice, printed in capital letters or boldface type, a legend
substantially to the following effect: 
 “THIS COMMUNICATION REQUIRES IMMEDIATE RESPONSE. FAILURE TO RESPOND WITHIN TEN
(10) CALENDAR DAYS FROM THE RECEIPT OF THIS COMMUNICATION SHALL CONSTITUTE A DEEMED APPROVAL BY THE ADDRESSEE OF THE ACTION REQUESTED BY THE BORROWER OR THE COURSE OF CONDUCT PROPOSED BY THE ADMINISTRATIVE AGENT AND RECITED ABOVE.” 

  
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 and if the foregoing legend is included by the Administrative Agent in its communication, a Lender shall be
deemed to have approved or consented to such action or course of conduct for all purposes hereunder if such Lender fails to object to such action or course of conduct by written notice to Administrative Agent within ten (10) calendar days of
such Lender’s receipt of such notice; provided, however, that, upon the written request of any Lender for additional time to consider such proposed action or course of conduct in accordance with the requirements of such
Lender’s internal review process, the foregoing 10 day period shall be extended by the Administrative Agent for up to an additional ten (10) calendar days. 

Notwithstanding anything to the contrary herein: 

(i) no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any
amendment, waiver or consent which by its terms requires the consent of all Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting Lenders), except that (x) the Commitment of any
Defaulting Lender may not be increased or extended without the consent of such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender
disproportionately adversely relative to other affected Lenders shall require the consent of such Defaulting Lender. 
 (ii)
the Administrative Agent and the Borrower may, with the consent of the other (but without the consent of any Lender or other Loan Party), amend, modify or supplement this Agreement and any other Loan Document: 

(A) to correct, amend or cure any ambiguity, omission, inconsistency or defect or correct any typographical error or other
manifest error in any Loan Document so long as such amendment, modification or supplement does not impose additional obligations on any Lender, provided that the Administrative Agent shall promptly give the Lenders notice of any such amendment,
modification or supplement; and 
 (B) to add collateral or perfect its Lien on any Collateral without the consent of any
Lender. 
 11.02 Notices; Effectiveness. 

(a) Notices. Any notice or other communication in connection with this Agreement or any of the other Loan Documents (a
“Notice”), shall be in writing, and (i) deposited in the United States mail, postage prepaid, by registered or certified mail, or (ii) hand delivered by any commercial recognized courier service or overnight delivery service such
as Federal Express, or (iii) sent by electronic mail transmission, addressed as set forth below: 
 (i) if to the
Borrower or any other Loan Party, or the Administrative Agent, to the address or electronic mail address specified for such Person on Schedule 11.02; and 

  
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 (ii) if to any other Lender, to the address or electronic mail address specified
in its Administrative Questionnaire (including, as appropriate, notices delivered solely to the Person designated by a Lender on its Administrative Questionnaire then in effect for the delivery of notices that may contain material non-public
information relating to any Loan Party). 
 A notice shall be deemed to have been given, delivered and received for the purposes of all Loan Documents upon
the earliest of: (i) if sent by such certified or registered mail, on the earlier of the third Business Day following the date of postmark or on the date of actual receipt, or (ii) if hand delivered at the specified address by such courier
or overnight delivery service, when so delivered or tendered for delivery during customary business hours on a Business Day, or (iii) if electronic transmission is a permitted means of giving notice, upon transmission properly evidenced. 

(b) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT PARTIES (AS DEFINED BELOW) DO NOT
WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY,
INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM.
In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to any Loan Party, any Lender or any other Person for losses, claims, damages, liabilities or expenses
of any kind (whether in tort, contract or otherwise) arising out of the Borrower’s, any Loan Party’s or the Administrative Agent’s transmission of Borrower Materials or notices through the Platform, any other electronic platform or
electronic messaging service, or through the Internet. 
 (c) Change of Address, Etc. Each of the Borrower and the Administrative
Agent may change its address or electronic mail address for notices and other communications hereunder by notice to the other parties hereto. Each other Lender may change its address or electronic mail address for notices and other communications
hereunder by notice to the Borrower and the Administrative Agent. In addition, each Lender agrees to notify the Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an effective address, contact name,
telephone number, facsimile number and electronic mail address to which notices and other communications may be sent and (ii) accurate wire instructions for such Lender. Furthermore, each Public Lender agrees to cause at least one individual at
or on behalf of such Public Lender to at all times have selected the “Private Side Information” or similar designation on the content declaration screen of the Platform in order to enable such Public Lender or its delegate, in accordance
with such Public Lender’s compliance procedures and applicable Law, including United States federal and state securities Laws, to make reference to Borrower Materials that are not made available through the “Public Side Information”
portion of the Platform and that may contain material non-public information with respect to any Loan Party or its securities for purposes of United States federal or state securities laws. 

  
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 (d) Reliance by Administrative Agent and Lenders. The Administrative Agent and the Lenders
shall be entitled to rely and act upon any notices (including telephonic notices and Loan Notices) purportedly given by or on behalf of any Loan Party even if (i) such notices were not made in a manner specified herein, were incomplete or were
not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof. The Borrower shall indemnify the Administrative Agent, each Lender and the
Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of any Loan Party; provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, costs, expenses or liabilities are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such
Indemnitee. All telephonic notices to and other telephonic communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording. 

11.03 No Waiver; Cumulative Remedies; Enforcement. No failure by any Lender or the Administrative Agent to exercise, and no delay by
any such Person in exercising, any right, remedy, power or privilege hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided, and provided under each other Loan Document, are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law. 
 Notwithstanding anything to the contrary contained herein or in any other Loan
Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the Loan Parties or any of them shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement
shall be instituted and maintained exclusively by, the Administrative Agent in accordance with Section 9.02 for the benefit of all the Lenders; provided, however, that the foregoing shall not prohibit (a) the
Administrative Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its capacity as the Administrative Agent) hereunder and under the other Loan Documents, (b) any Lender from exercising setoff
rights in accordance with Section 11.08 (subject to the terms of Section 2.11), or (c) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding
relative to any Loan Party under any Insolvency Law; and provided, further, that if at any time there is no Person acting as the Administrative Agent hereunder and under the other Loan Documents, then (i) the Required Lenders
shall have the rights otherwise ascribed to the Administrative Agent pursuant to Section 9.02 and (ii) in addition to the matters set forth in clauses (b) and (c) of the preceding proviso and subject to
Section 2.11, any Lender may, with the consent of the Required Lenders, enforce any rights and remedies available to it and as authorized by the Required Lenders. 

11.04 Expenses; Indemnity; Damage Waiver. 

(a) Costs and Expenses. The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent and
its Affiliates (including the reasonable fees, charges and disbursements of one counsel, taken as a whole, and, if applicable, one local counsel 

  
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in each material jurisdiction, for the Administrative Agent), in connection with the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan
Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), and (ii) all out-of-pocket expenses incurred by the Administrative
Agent or any Lender (including the fees, charges and disbursements of one counsel for the Administrative Agent and the Lenders, taken as a whole, and, if applicable, one local counsel in each material jurisdiction), in connection with the
enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section, or (B) in connection with the Loans made hereunder, including all such out-of-pocket
expenses incurred during any workout, restructuring or negotiations in respect of such Loans. 
 (b) Indemnification by the Borrower.
The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof), the Arranger, each Lender and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold
each Indemnitee harmless from and against, any and all out-of-pocket losses, claims, damages, liabilities and related out-of-pocket expenses (including the reasonable fees, charges and disbursements of one counsel for all Indemnitees, taken as a
whole, and, if reasonably necessary, one local counsel for all Indemnitees, taken as a whole, in each relevant jurisdiction and, solely in the case of an actual conflict of interest, one additional counsel (and if reasonably necessary, one local
counsel in each relevant jurisdiction) to the group of similarly situated affected Indemnitees who are subject to such conflict of interest)), incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Borrower or any
other Loan Party) other than such Indemnitee and its Related Parties, in each case, arising out of, in connection with, attributable to, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement
or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder, the consummation of the transactions contemplated hereby or thereby, or, in the case of the Administrative
Agent (and any sub-agent thereof) and its Related Parties only, the administration of this Agreement and the other Loan Documents (including in respect of any matters addressed in Section 3.01), (ii) any Loan or the use or proposed
use of the proceeds therefrom, (iii) the failure of any title insurance company, agent or approved attorney to comply with the Borrower’s disbursement or instruction letter relating to any Pledged Asset, (iv) any actual or alleged
presence or release of Hazardous Materials on or from any property owned or operated by the Borrower, or any Environmental Liability related in any way to the Borrower; provided, however, that notwithstanding anything to the contrary,
the Borrower’s indemnification obligations with respect to Hazardous Materials or Environmental Liability in connection with a Pledged Asset shall expire after an Event of Default has occurred and is continuing and the Administrative Agent has
consummated its remedies under Section 9.02(c), 9.02(h) or 9.02(i) with respect to such Pledged Asset; provided, further, however, that to the extent that the Borrower’s indemnification obligation has not expired
pursuant to the foregoing proviso, the Administrative Agent and the Lenders hereby acknowledge and agree that the Administrative Agent shall have exhausted its remedies pursuant to the ELA Documents, including, without limitation, any such remedies
contained in any environmental indemnity agreements of the underlying obligors of the Pledged Assets prior to pursuing any indemnification remedy against the Borrower, or (v) any actual or prospective claim, litigation, investigation or
proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether 

  
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brought by a third party or by the Borrower or any other Loan Party, and regardless of whether any Indemnitee is a party thereto, IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR
IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF THE INDEMNITEE; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related
expenses are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee. Without limiting the provisions of Section 3.01(c),
this Section 11.04(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim. 

(c) Reimbursement by Lenders. To the extent that the Borrower for any reason fails to indefeasibly pay any amount required under
subsection (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub-agent thereof) or any Related Party thereof, each Lender severally agrees to pay to the Administrative Agent (or any such
sub-agent) or such Related Party, as the case may be, such Lender’s pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought based on each Lender’s share of the Total Credit Exposure
at such time) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender), such payment to be made severally among them based on such Lenders’ Applicable Percentage (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought), provided, further that, the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against
the Administrative Agent (or any such sub-agent), in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) in connection with such capacity. The obligations of the
Lenders under this subsection (c) are subject to the provisions of Section 2.10(d). 
 (d) Waiver of
Consequential Damages, Etc. To the fullest extent permitted by applicable Law, no party to this Agreement shall assert, and each party hereto hereby waives, and acknowledges that no other Person shall have, any claim against any party hereto, on
any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof. No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use by unintended
recipients of any information or other materials distributed to such unintended recipients by such Indemnitee through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan
Documents or the transactions contemplated hereby or thereby other than for direct or actual damages that are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful
misconduct of such Indemnitee. 
 (e) Payments. All amounts due under this Section 11.04 shall be payable not later than
ten Business Days after demand therefor. 

  
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 (f) Survival. The agreements in this Section 11.04 and the indemnity
provisions of Section 11.02(e) shall survive the resignation or replacement of the Administrative Agent, the replacement of any Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all the other
Obligations. 
 11.05 Payments Set Aside. To the extent that any payment by or on behalf of any Loan Party is made to the
Administrative Agent or any Lender, or the Administrative Agent or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Insolvency Law
or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not
occurred, and (b) each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the date
of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from time to time in effect. The obligations of the Lenders under clause (b) of the preceding sentence shall survive the payment in full
of the Obligations and the termination of this Agreement. 
 11.06 Successors and Assigns. 

(a) Successors and Assigns Generally. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Loan Party may assign or otherwise transfer any of its rights or obligations hereunder or under any other Loan Document without the
prior written consent of the Administrative Agent and the Required Lenders and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of subsection
(b) of this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of
subsection (e) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the
parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 

  
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 (b) Assignments by Lenders. Any Lender may at any time assign to one or more assignees all
or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); provided that there shall not be more than four Lenders (including the Administrative Agent)
at any time; and provided further that any such assignment shall be subject to the following conditions: 
 (i)
Minimum Amounts. 
 (A) in the case of an assignment of the entire remaining amount of the assigning Lender’s
Commitment and/or the Loans at the time owing to it or contemporaneous assignments to related Approved Funds (determined after giving effect to such Assignments) that equal at least the amount specified in Section 11.06 (b)(i)(B) in
the aggregate or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; 

(B) in any case not described in Section 11.06(b)(i)(A), the aggregate amount of the Commitment (which for this
purpose includes Loans outstanding thereunder) or, if the Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment, determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $5,000,000 unless each of the
Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed); and 

(C) notwithstanding anything herein to the contrary, the aggregate amount of the Commitment (which for this purpose includes
Loans outstanding thereunder) or, if the Commitment is not then in effect, the principal outstanding balance of the Loans of the Lender that is the Administrative Agent shall not be less than 20% of the Facility Amount. 

(ii) Proportionate Amounts. Each partial assignment shall be made as an assignment of a proportionate part of all the
assigning Lender’s rights and obligations under this Agreement with respect to the Loans or the Commitment assigned; 

(iii) Required Consents. No consent shall be required for any assignment except to the extent required by
subsection (b)(i)(B) of this Section and, in addition: 
 (A) the consent of the Borrower (such consent not
to be unreasonably withheld or delayed) shall be required unless (1) an Event of Default has occurred and is continuing at the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund;
provided that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof; and 

(B) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required if such
assignment is to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender. 

  
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 (iv) Assignment and Assumption. The parties to each assignment shall
execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee in the amount of $3,500; provided, however, that the Administrative Agent may, in its sole discretion, elect
to waive such processing and recordation fee in the case of any assignment. The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. 

(v) No Assignment to Certain Persons. No such assignment shall be made (A) to the Borrower or any of the
Borrower’s Affiliates or Subsidiaries, (B) to any Defaulting Lender or any of its Affiliates, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B),
(C) to a natural person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person) or (D) to a Prohibited Transferee. 

(vi) Certain Additional Payments. In connection with any assignment of rights and obligations of any Defaulting Lender
hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount
sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the
Administrative Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all
payment liabilities then owed by such Defaulting Lender to the Administrative Agent or any Lender hereunder (and interest accrued thereon) and (y) acquire (and fund as appropriate) its full pro rata share of all Loans in accordance with its
Applicable Percentage. Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable Law without compliance with the provisions of this paragraph,
then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs. 
 Subject to
acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement
and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party
hereto) but shall continue to be entitled to the benefits of Sections 3.01, 3.04, and 11.04 with respect to facts and circumstances occurring prior to the effective date of such assignment; provided, that except to the
extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender. Upon request,
the 

  
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Borrower (at its expense) shall execute and deliver a Note to the assignee Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with
this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection (d) of this Section. 

(c) Register. The Administrative Agent, acting solely for this purpose as a non-fiduciary agent of the Borrower, shall maintain at the
Administrative Agent’s Office a copy of each Assignment and Assumption delivered to it (or the equivalent thereof in electronic form) and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and
principal amounts (and stated interest) of the Loans 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 the Borrower, the
Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower
and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 
 (d) Participations. Any Lender may at
any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than (A) a natural Person, or a holding company, investment vehicle or trust for, or owned and operated for the
primary benefit of a natural person, (B) a Defaulting Lender, (C) any Loan Party or any of Affiliate or Subsidiary of any Loan Party or (D) a Prohibited Transferee) (each, a “Participant”) in all or a portion of such
Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent and the Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this Agreement. For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 11.04(c) without regard to the existence of any
participation. 
 Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall
retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in the first proviso to Section 11.01 that affects such Participant. The Borrower agrees that each Participant shall be entitled to the benefits of Sections
3.01 and 3.04 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to subsection (b) of this Section (it being understood that the documentation required under
Section 3.01(e) shall be delivered to the Lender who sells the participation) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such
Participant (A) agrees to be subject to the provisions of Sections 3.05 and 11.13 as if it were an assignee under paragraph (b) of this Section and (B) shall not be entitled to receive any greater payment
under Sections 3.01 or 3.04, with respect to any participation, than the Lender from whom it acquired the applicable participation would have been entitled to receive, except to the extent such entitlement

  
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to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. Each Lender that sells a participation agrees, at the
Borrower’s request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 3.05 with respect to any Participant. To the extent permitted by law, each Participant also shall be
entitled to the benefits of Section 11.08 as though it were a Lender; provided that such Participant agrees to be subject to Section 2.11 as though it were a Lender. Each Lender that sells a participation shall, acting solely
for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other
obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any
information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such
commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations and to confirm that no such Participants are Prohibited Transferees. The entries in the Participant
Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the
contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register. 

(e) Certain Pledges. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this
Agreement (including under its Note, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or other central banking authority; provided that no such pledge or
assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 

(f) Prohibited Transferees. 

(i) The Administrative Agent (in its capacity as such, and not in its capacity as a Lender) shall not be responsible or have
any liability for, or have any duty to ascertain, inquire into, monitor or enforce, compliance with the provisions hereof relating to Prohibited Transferees. Without limiting the generality of the foregoing, the Administrative Agent (in its capacity
as such, and not in its capacity as a Lender) shall not (x) be obligated to ascertain, monitor or inquire as to whether any Lender or Participant or prospective Lender or Participant is a Prohibited Transferee or (y) have any liability
with respect to or arising out of any assignment or participation of Loans, or disclosure of confidential information, to any Prohibited Transferee. 

(ii) No assignment or participation shall be made to any Person that was a Prohibited Transferee as of the date (the
“Trade Date”) on which the assigning Lender entered into a binding agreement to sell and assign all or a portion of its rights and obligations under this Agreement to such Person (unless the Borrower has consented to such assignment
in writing in its sole and absolute discretion, in which case such Person will not be considered a Prohibited Transferee for the purpose of such assignment or 

  
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participation). For the avoidance of doubt, with respect to any assignee that becomes a Prohibited Transferee after the applicable Trade Date (including as a result of the delivery of a notice
pursuant to, and/or the expiration of the notice period referred to in, the definition of “Prohibited Transferee”), (x) such assignee shall not retroactively be disqualified from becoming a Lender and (y) the execution by the
Borrower of an Assignment and Assumption with respect to such assignee will not by itself result in such assignee no longer being considered a Prohibited Transferee. Any assignment in violation of this clause (f)(ii) shall not be void, but
the other provisions of this clause (f) shall apply. 
 (iii) If any assignment or participation is made to any
Prohibited Transferee without the Borrower’s prior written consent in violation of clause (ii) above, or if any Person becomes a Prohibited Transferee after the applicable Trade Date, the Borrower may, at its sole expense and effort, upon
notice to the applicable Prohibited Transferee and the Administrative Agent, (A) terminate any Commitment of such Prohibited Transferee and repay all Obligations of the Borrower owing to such Prohibited Transferee in connection with such
Commitment (but only to the extent that no proceeds of Loans are used to make such repayment), and/or (B) require such Prohibited Transferee to assign, without recourse (in accordance with and subject to the restrictions contained in this
Section 11.06), all of its interest, rights and obligations under this Agreement to one or more Eligible Assignees at the lesser of (x) the outstanding principal amount thereof and (y) the amount that such Prohibited Transferee
paid to acquire such interests, rights and obligations, in each case plus accrued interest, accrued fees and all other amounts (other than principal amounts) payable to it hereunder. 

(iv) Notwithstanding anything to the contrary contained in this Agreement, Prohibited Transferees (A) will not
(x) have the right to receive information, reports or other materials provided to Lenders by the Borrower, any other Loan Party, the Administrative Agent or any other Lender, (y) attend or participate in meetings attended by the Lenders or
the Administrative Agent, or (z) access the Platform or any other electronic site established for the Lenders or confidential communications from counsel to or financial advisors of the Administrative Agent or the Lenders and
(B) (x) for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the purpose of any direction to the Administrative Agent or any Lender to undertake any action (or refrain from taking any
action) under this Agreement or any other Loan Document, each Prohibited Transferee will be deemed to have consented in the same proportion as the Lenders that are not Prohibited Transferees consented to such matter, and (y) for purposes of
voting on any plan of reorganization or plan of liquidation pursuant to any Insolvency Law (a “Bankruptcy Plan”), each Prohibited Transferee party hereto hereby agrees (1) not to vote on such Bankruptcy Plan, (2) if such
Prohibited Transferee does vote on such Bankruptcy Plan notwithstanding the restriction in the foregoing clause (1), such vote will be deemed not to be in good faith and shall be “designated” pursuant to Section 1126(e) of the
Bankruptcy Code (or any similar provision in any other Insolvency Law), and such vote shall not be counted in determining whether the applicable class has accepted or rejected such Bankruptcy Plan in accordance with Section 1126(c) of the
Bankruptcy Code (or any similar provision in any other Insolvency Law) and (3) not to contest any request by any party for a determination by the bankruptcy court (or other applicable court of competent jurisdiction) effectuating the foregoing
clause (2). 

  
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 (v) The Administrative Agent shall have the right, and the Borrower hereby
expressly authorizes the Administrative Agent, to (A) post the list of Prohibited Transferees provided by the Borrower and any updates thereto from time to time (collectively, the “PT List”) on the Platform, including that
portion of the Platform that is designated for “public side” Lenders and/or (B) provide the PT List to each Lender requesting the same. 

11.07 Treatment of Certain Information; Confidentiality. Each of the Administrative Agent and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates, its auditors and its Related Parties (it being understood that the Persons to whom such disclosure is made will be informed
of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent required or requested by any regulatory authority purporting to have jurisdiction over such Person or its Related Parties
(including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable Laws or regulations or by any subpoena or similar legal process, (d) to any other party
hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder,
(f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights and obligations under this
Agreement or any Eligible Assignee invited to be a Lender pursuant to Section 2.13(c) or (ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made
by reference to the Borrower and its obligations, this Agreement or payments hereunder, (g) on a confidential basis to (i) any rating agency in connection with rating the Borrower or its Subsidiaries or the credit facilities provided
hereunder or (ii) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers or other market identifiers with respect to the credit facilities provided hereunder, (h) with the consent of
the Borrower or (i) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to the Administrative Agent, any Lender or any of their respective
Affiliates on a nonconfidential basis from a source other than a Loan Party or an Affiliate of a Loan Party. In addition, the Administrative Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement to
market data collectors, similar service providers to the lending industry and service providers to the Administrative Agent and the Lenders in connection with the administration of this Agreement, the other Loan Documents, and the Commitments. 

For purposes of this Section, “Information” means all information received from any Loan Party or any Subsidiary of any Loan Party relating
to a Loan Party or any Subsidiary thereof or any of their respective businesses, other than any such information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by a Loan Party or any
Subsidiary thereof; provided that, in the case of information received from a Loan Party or any Subsidiary of a Loan Party after the date hereof, such information is clearly 

  
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identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section 11.07 shall be considered to have
complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. 

Each of the Administrative Agent and the Lenders acknowledges that (a) the Information may include material non-public information
concerning the Borrower or its Subsidiaries or Affiliates, as the case may be, (b) it has developed compliance procedures regarding the use of material non-public information and (c) it will handle such material non-public information in
accordance with applicable Law, including United States Federal and state securities Laws. 
 11.08 Right of Setoff. If an Event of
Default shall have occurred and be continuing, each Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, after obtaining the prior written consent of the Administrative Agent, to the fullest extent
permitted by applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender or
any such Affiliate to or for the credit or the account of the Borrower or the Pledgor against any and all of the obligations of the Borrower or the Pledgor now or hereafter existing under this Agreement or any other Loan Document to such Lender or
their respective Affiliates, irrespective of whether or not such Lender or Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrower or the Pledgor may be contingent or
unmatured or are owed to a branch, office or Affiliate of such Lender different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness; provided, that in the event that any Defaulting Lender shall exercise any
such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.14 and, pending such payment, shall be segregated by
such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in
reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each Lender and its Affiliates under this Section 11.08 are in addition to other rights and remedies
(including other rights of setoff) that such Lender or its Affiliates may have. Each Lender agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application, provided that the failure to give such
notice shall not affect the validity of such setoff and application. 
 11.09 Interest Rate Limitation. Notwithstanding anything to
the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”). If the
Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower. In
determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any payment that is not
principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the
contemplated term of the Obligations hereunder. 

  
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 11.10 Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement, the other Loan Documents, and any separate
letter agreements with respect to fees payable to the Administrative Agent, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received
counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic imaging means (e.g. “pdf” or
“tif”) shall be effective as delivery of a manually executed counterpart of this Agreement. 
 11.11 Survival of
Representations and Warranties. All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and
delivery hereof and thereof. Such representations and warranties have been or will be relied upon by the Administrative Agent and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or on their behalf and
notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default at the time of any Loan, and shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall remain
unpaid or unsatisfied. 
 11.12 Severability. If any provision of this Agreement or the other Loan Documents is held to be illegal,
invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith
negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a
particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. Without limiting the foregoing provisions of this Section 11.12, if and to the extent that the enforceability of any
provisions in this Agreement relating to Defaulting Lenders shall be limited by Insolvency Law, as determined in good faith by the Administrative Agent then such provisions shall be deemed to be in effect only to the extent not so limited. 

11.13 Replacement of Lenders . If the Borrower is entitled to replace a Lender pursuant to the provisions of Section 3.05,
or if any Lender is a Defaulting Lender or a Non-Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in
accordance with and subject to the restrictions contained in, and consents required by, Section 11.06), all of its interests, rights (other than its existing rights to payments pursuant to Sections 3.01 and 3.04) and
obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided that: 

(a) the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in Section 11.06(b); 

  
 114 

 (b) such Lender shall have received payment of an amount equal to the outstanding principal of
its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the
case of all other amounts); 
 (c) in the case of any such assignment resulting from a claim for compensation under Section 3.04
or payments required to be made pursuant to Section 3.01, such assignment will result in a reduction in such compensation or payments thereafter; 

(d) such assignment does not conflict with applicable Laws; and 

(e) in the case of an assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the
applicable amendment, waiver or consent. 
 A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. 

11.14 Governing Law; Jurisdiction; Etc. 

(a) GOVERNING LAW. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN
CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT (EXCEPT, AS TO ANY OTHER LOAN DOCUMENT, AS EXPRESSLY SET FORTH THEREIN) AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS THEREOF (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK);
PROVIDED THAT PERFECTION ISSUES WITH RESPECT TO ARTICLE 9 OF THE UCC MAY GIVE EFFECT TO APPLICABLE CHOICE OR CONFLICT OF LAW RULES SET FORTH IN ARTICLE 9 OF THE UCC) OF THE STATE OF NEW YORK. 

(b) SUBMISSION TO JURISDICTION. THE BORROWER AND EACH OTHER LOAN PARTY AND THE ADMINISTRATIVE AGENT AND EACH LENDER FROM TIME TO TIME
PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT 

  
 115 

 
OR IN TORT OR OTHERWISE, AGAINST THE BORROWER OR ANY OTHER LOAN PARTY, THE ADMINISTRATIVE AGENT, ANY LENDER, OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY
APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING
ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION NOR SHALL THE TAKING OF PROCEEDINGS WITH RESPECT TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT IN ANY JURISDICTION PRECLUDE THE ADMINISTRATIVE AGENT OR ANY LENDER FROM TAKING PROCEEDINGS WITH RESPECT TO THIS AGREEMENT OR SUCH OTHER LOAN DOCUMENT IN ANY OTHER JURISDICTION, WHETHER CONCURRENTLY OR NOT. 

(c) WAIVER OF VENUE. THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (b) OF THIS
SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT. 

(d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN
SECTION 11.02. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW. 

11.15 Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR 

  
 116 

 
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

11.16 No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction contemplated hereby (including in
connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower and each other Loan Party acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (i) (A) the
arranging and other services regarding this Agreement provided by the Administrative Agent, the Arranger, and the Lenders are arm’s-length commercial transactions between the Borrower, each other Loan Party and their respective Affiliates, on
the one hand, and the Administrative Agent, the Arranger, and the Lenders, on the other hand, (B) each of the Borrower and the other Loan Parties has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed
appropriate, and (C) the Borrower and each other Loan Party is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) the
Administrative Agent, the Arranger and each Lender is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for
the Borrower, any other Loan Party or any of their respective Affiliates, or any other Person and (B) neither the Administrative Agent, the Arranger nor any Lender has any obligation to the Borrower, any other Loan Party or any of their
respective Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Administrative Agent, the Arranger and the Lenders and their
respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower, the other Loan Parties and their respective Affiliates, and neither the Administrative Agent, the Arranger, nor any
Lender has any obligation to disclose any of such interests to the Borrower, any other Loan Party or any of their respective Affiliates. To the fullest extent permitted by law, each of the Borrower and each other Loan Party hereby waives and
releases any claims that it may have against the Administrative Agent, the Arranger or any Lender with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby. 

11.17 Electronic Execution of Assignments and Certain Other Documents. The words “execute,” “execution,”
“signed,” “signature,” and words of like import in or related to any document to be signed in connection with this Agreement and the transactions contemplated hereby (including without limitation Assignment and Assumptions,
amendments or other modifications, Loan Notices, waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative
Agent, or the keeping of records in electronic form, 

  
 117 

 
each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent
and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic
Transactions Act; provided that notwithstanding anything contained herein to the contrary the Administrative Agent is under no obligation to agree to accept electronic signatures in any form or in any format unless expressly agreed to by the
Administrative Agent pursuant to procedures approved by it. 
 11.18 USA PATRIOT Act. Each Lender that is subject to the Act (as
hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify the Borrower in accordance with the Act. The Borrower shall, promptly following a request by the Administrative Agent or any Lender, provide all documentation and other information that the
Administrative Agent or such Lender requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including the Act. 

11.19 ENTIRE AGREEMENT. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES. 

11.20 Acknowledgement and Consent to Bail-In of EEA Financial Institutions. Solely to the extent any Lender that is an EEA Financial
Institution is a party to this Agreement and notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any
Lender that is an EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and
acknowledges and agrees to be bound by: 
 (a) the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any
such liabilities arising hereunder which may be payable to it by any Lender that is an EEA Financial Institution; and 
 (b) the effects of
any Bail-In Action on any such liability, including, if applicable: 
 (i) a reduction in full or in part or cancellation of
any such liability; 
 (ii) a conversion of all, or a portion of, such liability into shares or other instruments of
ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights
with respect to any such liability under this Agreement or any other Loan Document; or 

  
 118 

 (iii) the variation of the terms of such liability in connection with the
exercise of the write-down and conversion powers of any EEA Resolution Authority. 
 11.21 Monthly Statements. While the
Administrative Agent may issue invoices or other statements on a monthly or periodic basis, it is expressly acknowledged and agreed that: (a) the failure of the Administrative Agent to issue any statement on one or more occasions shall not
affect the Borrower’s obligations to make payments under the Loan Documents as and when due; (b) the inaccuracy of any statement shall not be binding upon the Administrative Agent or the Lenders and so the Borrower shall always remain
obligated to pay the full amount(s) required under the Loan Documents as and when due notwithstanding any provision to the contrary contained in any statement; (c) all statements are issued for information purposes only and shall never
constitute any type of offer, acceptance, modification, or waiver of the Loan Documents or any of the Administrative Agent’s or Lenders’ rights or remedies thereunder; and (d) in no event shall any statement serve as the basis for, or
a component of, any course of dealing, course of conduct, or trade practice which would modify, alter, or otherwise affect the express written terms of the Loan Documents. 

11.22 Authorized Person and Authorized Signer. The Administrative Agent is authorized to rely upon the continuing authority of the
Authorized Persons and Authorized Signers to bind the Borrower as set forth in the Borrower’s Instruction Certificate. Such authorization may be changed only upon written notice to the Administrative Agent accompanied by evidence, reasonably
satisfactory to the Administrative Agent, of the authority of the Person giving such notice. Such notice shall be effective not sooner than five (5) Business Days following receipt thereof by the Administrative Agent. 

11.23 Judgment Currency. If, for the purposes of obtaining judgment in any court, it is necessary to convert a sum due hereunder or any
other Loan Document in one currency into another currency, the rate of exchange used shall be that at which in accordance with normal banking procedures the Administrative Agent could purchase the first currency with such other currency on the
Business Day preceding that on which final judgment is given. The obligation of the Borrower in respect of any such sum due from it to the Administrative Agent or any Lender hereunder or under the other Loan Documents shall, notwithstanding any
judgment in a currency (the “Judgment Currency”) other than that in which such sum is denominated in accordance with the applicable provisions of this Agreement (the “Agreement Currency”), be discharged only to the
extent that on the Business Day following receipt by the Administrative Agent or such Lender, as the case may be, of any sum adjudged to be so due in the Judgment Currency, the Administrative Agent or such Lender, as the case may be, may in
accordance with normal banking procedures purchase the Agreement Currency with the Judgment Currency. If the amount of the Agreement Currency so purchased is less than the sum originally due to the Administrative Agent or any Lender from any
Borrower in the Agreement Currency, the Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the Administrative Agent or such Lender, as the case may be, against such loss. If the amount of the Agreement
Currency so purchased is greater than the sum originally due to the Administrative Agent or any Lender in such currency, the Administrative Agent or such Lender, as the case may be, agrees to return the amount of any excess to the Borrower (or to
any other Person who may be entitled thereto under applicable Law). 

  
 119 

 11.24 Lender Representations Regarding ERISA. (a) Each Lender (x) represents and
warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative
Agent and its Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that at least one of the following is and will be true: 

(i) such Lender is not using “plan assets” (within the meaning of 29 CFR § 2510.3-101, as modified by
Section 3(42) of ERISA) of one or more Benefit Plans in connection with the Loans; 
 (ii) the transaction exemption set
forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general
accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption
for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans and this Agreement; 

(iii) (A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning
of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans and this Agreement, (C) the entrance into,
participation in, administration of and performance of the Loans and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of
subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans and this Agreement; or 

(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole
discretion, and such Lender. 
 (b) In addition, unless sub-clause (i) in the immediately preceding clause (a) is true with
respect to a Lender or such Lender has not provided another representation, warranty and covenant as provided in sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such
Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and its Affiliates, and
not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that: 
 (i) none of the
Administrative Agent or any of its Affiliates is a fiduciary with respect to the assets of such Lender (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any
documents related to hereto or thereto); 

  
 120 

 (ii) the Person making the investment decision on behalf of such Lender with
respect to the entrance into, participation in, administration of and performance of the Loans and this Agreement is independent (within the meaning of 29 CFR § 2510.3-21) and is a bank, an insurance carrier, an investment adviser, a
broker-dealer or other person that holds, or has under management or control, total assets of at least $50 million, in each case as described in 29 CFR § 2510.3-21(c)(1)(i)(A)-(E); 

(iii) the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in,
administration of and performance of the Loans and this Agreement is capable of evaluating investment risks independently, both in general and with regard to particular transactions and investment strategies (including in respect of the
Obligations); 
 (iv) the Person making the investment decision on behalf of such Lender with respect to the entrance into,
participation in, administration of and performance of the Loans and this Agreement is a fiduciary under ERISA or the Code, or both, with respect to the Loans and this Agreement and is responsible for exercising independent judgment in evaluating
the transactions hereunder; and 
 (v) no fee or other compensation is being paid directly to the Administrative Agent or any
of its Affiliates for investment advice (as opposed to other services) in connection with the Loans or this Agreement. 
 (c) The
Administrative Agent hereby informs the Lenders that it is not undertaking to provide impartial investment advice, or to give advice in a fiduciary capacity, in connection with the transactions contemplated hereby, and that it has a financial
interest in the transactions contemplated hereby in that such Person or an Affiliate thereof (i) may receive interest or other payments with respect to the Loans and this Agreement, (ii) may recognize a gain if it extended the Loans for an
amount less than the amount being paid for an interest in the Loans by such Lender or (iii) may receive fees or other payments in connection with the transactions contemplated hereby, the Loan Documents or otherwise, including structuring fees,
commitment fees, arrangement fees, facility fees, upfront fees, underwriting fees, ticking fees, agency fees, administrative agent or collateral agent fees, utilization fees, minimum usage fees, letter of credit fees, fronting fees, deal-away or
alternate transaction fees, amendment fees, processing fees, term out premiums, banker’s acceptance fees, breakage or other early termination fees or fees similar to the foregoing. 

11.25 Certain Tax Matters. The parties intend that neither the Borrower nor any portion thereof be a “taxable mortgage pool”
for U.S. federal income tax purposes, and this Agreement and any ancillary agreements or documentation (including any assignment or participation of the Loan) shall be interpreted consistent with such intent. 

  
 121 

 ARTICLE XII. GUARANTY 

In order to induce the Secured Parties to extend credit to the Borrower hereunder, the Pledgor hereby irrevocably, absolutely and
unconditionally guarantees, as a primary obligor and not merely as a surety, the payment when and as due of the Obligations. The Pledgor agrees that the due and punctual payment of the Obligations may be extended or renewed, in whole or in part,
without notice to or further assent from it, and that it will remain bound upon its guarantee hereunder notwithstanding any such extension or renewal of any Obligation. 

The Pledgor waives presentment to, demand of payment from and protest to it of any of the Obligations, and also waives notice of acceptance of
its obligations and notice of protest for nonpayment. The obligations of the Pledgor hereunder shall not be affected by (a) the failure of any Secured Party to assert any claim or demand or to enforce any right or remedy against the Borrower or
any other Guarantor under the provisions of this Agreement, any other Loan Document or otherwise; (b) any extension or renewal of any of the Obligations; (c) any rescission, waiver, amendment or modification of, or release from, any of the
terms or provisions of this Agreement, or any other Loan Document or agreement; (d) any default, failure or delay, willful or otherwise, in the performance of any of the Obligations; (e) the failure of any Secured Party to take any steps
to perfect and maintain any Lien in, or to preserve any rights to, any security or collateral for the Obligations, if any; (f) any change in the corporate, partnership or other existence, structure or ownership of the Borrower or any Guarantor;
(g) the enforceability or validity of the Obligations or any part thereof or the genuineness, enforceability or validity of any agreement relating thereto or with respect to any collateral securing the Obligations or any part thereof, or any
other invalidity or unenforceability relating to or against the Borrower or any Guarantor of any of the Obligations, for any reason related to this Agreement, any other Loan Document, or any provision of applicable Law, decree, order or regulation
of any jurisdiction purporting to prohibit the payment by the Borrower or any Guarantor of the Obligations, of any of the Obligations or otherwise affecting any term of any of the Obligations; or (h) any other act, omission or delay to do any
other act which may or might in any manner or to any extent vary the risk of any Guarantor or otherwise operate as a discharge of any other Guarantor as a matter of law or equity or which would impair or eliminate any right of any Guarantor to
subrogation. 
 The Pledgor further agrees that its agreement hereunder constitutes a guarantee of payment when due (whether or not any
bankruptcy or similar proceeding shall have stayed the accrual or collection of any of the Obligations or operated as a discharge thereof) and not merely of collection, and waives any right to require that any resort be had by any Secured Party to
any balance of any deposit account or credit on the books of such Secured Party in favor of the Borrower, any Guarantor or any other Person. 

The obligations of the Pledgor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, and
shall not be subject to any defense or set-off, counterclaim, recoupment or termination whatsoever, by reason of the invalidity, illegality or unenforceability of any of the Obligations, any impossibility in the performance of any of the Obligations
or otherwise. 

  
 122 

 The Pledgor further agrees that its obligations hereunder shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part thereof, of any Obligation is rescinded or must otherwise be restored by any Secured Party upon the bankruptcy or reorganization of the Borrower or any Guarantor or otherwise
(including pursuant to any settlement entered into by any Secured Party in its discretion). 
 In furtherance of the foregoing and not in
limitation of any other right which any Secured Party may have at law or in equity against any Guarantor by virtue hereof, upon the failure of the Borrower or such Guarantor to pay any Obligation when and as the same shall become due, whether at
maturity, by acceleration, after notice of prepayment or otherwise, the Pledgor hereby promises to and will, upon receipt of written demand by any Secured Party, forthwith pay, or cause to be paid, to such Secured Party in cash an amount equal to
the unpaid principal amount of the Obligations then due, together with accrued and unpaid interest thereon. 
 Upon payment by the Pledgor
of any sums as provided above, all rights of the Pledgor against the Borrower arising as a result thereof by way of right of subrogation or otherwise shall in all respects be subordinated and junior in right of payment to the prior indefeasible
payment in full in cash of all the Obligations owed by the Borrower to the Secured Parties. 
 Nothing shall discharge or satisfy the
liability of the Pledgor hereunder except the full payment in immediately available funds of the Obligations. In furtherance and not in limitation of the foregoing, no release of a Pledged Asset or any other Collateral from the Administrative
Agent’s Lien, shall release or be construed as a release of the Pledgor from this Guaranty nor shall the release of Holdco from the Holdco Guaranty release or be construed as a release of the Pledgor from this Guaranty. 

  
 123 

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

			
	Executed and delivered as a deed by:
	
	TPG RE FINANCE 20, LTD.
		
	By:	 	/s/ Matthew Coleman
	Name:	 	Matthew Coleman
	Title:	 	Vice President, Transactions

  

			
	TPG RE FINANCE PLEDGOR 20, LLC
		
	By:	 	/s/ Matthew Coleman
	Name:	 	Matthew Coleman
	Title:	 	Vice President, Transactions

 [Signature Page to TPG Credit Agreement] 

 
			
	 BANK OF AMERICA, N.A., as

Administrative Agent

		
	By:	 	/s/ Mark E. Connors
	Name:	 	Mark E. Connors
	Title:	 	SVP

 [Signature Page to TPG Credit Agreement] 

 
			
	BANK OF AMERICA, N.A., as a Lender
		
	By:	 	/s/ Mark E. Connors
	Name:	 	Mark E. Connors
	Title:	 	SVP

 [Signature Page to TPG Credit Agreement] 

 SCHEDULE 1.01 

DUE DILIGENCE PACKAGE MATERIALS 

General Information 
 Borrower’s internal credit
committee or investment committee memorandum, among other things, outlining the proposed transaction, including potential transaction benefits and all material underwriting risks and underwriting issues, anticipated exit strategies, underwriting
models and all other characteristics of the proposed transaction that a prudent lender would consider material; 
 Site Inspection Report 

Maps and Photos 
 Borrower/Sponsor Information 

Credit Reports 
 Financial Statements & Tax Returns 

Underlying Borrower Structure or Org Chart 
 Bankruptcy and
Foreclosure History 
 Know Your Customer Diligence Materials 

Property Information 
 Historical Operating Statements

 Rent Rolls 
 Budget 

Insurance Review 
 Retail Sales Figures 

Market Survey 
 Leasing Information 

Stacking Plan 
 Major Leases 

Tenant Estoppels 
 Standard Lease Forms 

SNDA’s 
 Third Party Reports 

Appraisals 
 Environmental Site Assessments 

Engineering Reports 
 Seismic Reports 

Property and Zoning Report 
 Other Information 

Reports of UCC, tax lien, judgment and litigation searches as requested by the Administrative Agent, conducted by search firms reasonably acceptable to the
Administrative Agent with respect to the Proposed Loan Asset, the Borrower and the related Mortgagor, such searches to be 

 
conducted in each location the Administrative Agent shall reasonably designate and such reports reasonably satisfactory to the Administrative Agent 

Hotel Franchise Compliance Reports 
 Hotel Franchise Agreement

 Hotel Franchise Comfort Letters 
 Ground Lease 

Management Agreement/Contract 
 Permits 

Documentation 
 Purchase and Sale Agreement 

Closing Statement 
 Legal Binder 

 SCHEDULE 2.01 

COMMITMENTS 
 AND
APPLICABLE PERCENTAGES 
  

									
	 Lender
	  	Commitment	 	  	Applicable
Percentage	 
	 Bank of America, N.A.
	  	$	250,000,000	 	  	 	100.000000000	% 
	 Total
	  	$	250,000,000	 	  	 	100.000000000	% 

 SCHEDULE 11.02 

ADMINISTRATIVE AGENT’S OFFICE; 

CERTAIN ADDRESSES FOR NOTICES 
 LOAN
PARTIES: 
 c/o TPG RE Finance Trust Management, L.P. 
 888
Seventh Avenue, 35th Floor 
 New York, NY 10106 
 Attention:
TRT Asset Management 
 and to: 
 c/o TPG RE Finance Trust
Management, L.P. 
 888 Seventh Avenue, 35th Floor 
 New York,
NY 10106 
 Attention: Deborah Ginsberg 
 Telephone:
212-405-8426 
 Email: dginsberg@tpg.com 
 and to: 

c/o TPG RE Finance Trust Management, L.P. 
 888 Seventh Avenue,
35th Floor 
 New York, NY 10106 
 Attention: Jason Ruckman 

Telephone: (212) 430-4125 
 Email: jruckman@tpg.com

 Website Address: http://investors.tpgrefinance.com/Docs 
  

					
	 Loan Party Name
	  	Jurisdiction of
Formation	  	FEIN or
Equivalent
	 TPG RE Finance 20, Ltd.
	  	Cayman Islands	  	98-1300153
			
	 TPG RE Finance Pledgor 20, LLC
	  	Delaware	  	36-4796967
			
	 TPG RE Finance Holdco, LLC
	  	Delaware	  	36-4796967

 ADMINISTRATIVE AGENT: 

Administrative Agent’s Office 
 (For
financial/loan activity – advances, pay down, interest/fee billing and payments, rollovers, rate-settings): 
 Bank of America, N.A. 

100 Federal Street 
 Mail Stop MA1-225-02-04 

Boston, MA 02110 
 Attention: Julie Bednar 

Telephone: 469-201-0547 
 Electronic Mail:
BofA_Warehousing_Group@baml.com 
 Administrative Agent’s Wiring Instructions 

Bank of America N.A. 
 ABA Number: 026009593 

Attn: CREB Operations 
 Account number: 1367011723000 

Reference: TPG RE Finance 20, Ltd./Customer #42463 
 Other
Notices as Administrative Agent: 
 Bank of America, N.A. 

225 Franklin St., 2nd. Floor 
 MA1-225-02-04 

Boston, MA 02110 
 Attention: Andrew Blomstedt 

Telephone: 617-346-3491 
 Facsimile: 617-346-5025 

Electronic Mail: andrew.blomstedt@baml.com 

 SCHEDULE 11.06 

PROHIBITED TRANSFEREES 

The following entities and their affiliates and managed funds, including each of their respective successors and assigns: 

Blackstone Group, L.P. 
 Fortress
Credit Corp. 
 H/2 Credit Manager LP 

iStar Financial Inc. 

KKR & Co. L.P. 

LoanCore Capital, LLC 
 Lone
Star U.S. Acquisitions, LLC 
 Oaktree Capital Management 

Oz Management LP 
 Starwood
Capital Group 
 Starwood Property Trust, Inc. 

Winthrop Capital Management, LLC 

 EXHIBIT A 

FORM OF LOAN NOTICE 
  

			
	ELIGIBLE PROPERTY TYPE:	  	Check one:
		
		  	 ☐ Office
  

☐ Industrial
  

☐ Multifamily
  

☐ Multi-Tenant Retail
  

☐ Mixed Use
  

☐ Lodging Commercial

		
	ELIGIBLE LOAN TYPE:	  	Check one:
		
		  	 ☐ Proposed Loan Asset
  

☐ Future Funding Amount
  

☐ Excess Borrowing Base Capacity

		
	ELIGIBLE LOAN COLLATERAL TYPE:	  	Check one:
		
		  	 ☐ Senior Loan
  

☐ Mezzanine Loan (originated in connection with a Senior Loan that the Borrower is simultaneously pledging to the Administrative
Agent under the Credit Agreement)
  
 ☐ Participation
Interest

 Borrowing amount:
$                                         
    
 Pledged Asset
Name:                                        
     
 Pledged Asset State and Zip
Code:                       
 Mortgage
Note Amount: $                                     

Mortgage Note
Date:                                        
     
 Mortgage Note Maturity
Date:                             

Borrowing Base Amount for Pledged Asset: $                 

  
 A -1 

Form of Loan Notice 

 If Future Funding Amount or Excess Borrowing Base Capacity, amount of all prior Loans with 

respect to such Pledged Asset:
$                                     

Date of
Borrowing:                                       
                  
 Title Company/Closing
Agent:                                     

Title Contact
Person:                                        
             Phone
No.:                                     

Title Contact Person E-Mail
Address:                                       
                                         

 Title Company
Address:                                       
                                         
                     

  
 A -2 

Form of Loan Notice 

 WIRE TRANSFER INFORMATION 

Wire
Amount:                                        
         Date of
Wire:                                        
     
 Receiving
Bank:                                        
     ABA
No.:                                        
             
 City &
State:                                        
         
 Credit Account
Name:                                    
Number:                                        
                 

Advise:                        
                                    
Phone:                                        
                     
 TPG RE Finance 20, Ltd. (the
“Borrower”) has granted, and hereby reaffirms the grant of, a security interest to Bank of America, N.A., as administrative agent (the “Administrative Agent”) for itself and various lenders (the
“Lenders”), in all of the Borrower’s right, title and interest in and to the Pledged Asset described above and all related Collateral pursuant to Article 4 of the Credit Agreement dated as of September 29, 2017, among the
Borrower, TPG RE Finance Pledgor 20, LLC, a Delaware limited liability company, the Administrative Agent and the Lenders (as amended, restated, amended and restated, extended, supplemented or otherwise modified from time to time, the
“Agreement”). Capitalized terms used in this Loan Notice, unless otherwise defined herein, have the meanings set forth in the Agreement. 

The Borrower hereby represents and warrants as follows: 

(a) The Borrowing requested hereby complies with all applicable requirements of the Agreement. 

(b) Each representation and warranty made under the Agreement and the other Loan Documents, or which are contained in any document furnished
at any time under or in connection therewith, are, at and as of the date hereof, and will be at and as of the time the Borrowing contemplated herein is made, true and correct in all material respects (or if qualified by “materiality,”
“material adverse effect” or similar language, in all respects (after giving effect to such qualification)), in each case, both with and without giving effect to such Borrowing and the application of the proceeds thereof except (1) to
the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (or if qualified by “materiality,” “material adverse effect” or similar
language, in all respects (after giving effect to such qualification)) as of such earlier date, (2) in the case of the representations and warranties set forth on Exhibit E of the Agreement, which representations and warranties are true and
correct with respect to each Pledged Asset subject only to any exceptions set forth in the Confirmation Statement with respect to such Pledged Asset or in any Exception Notice with respect to such Pledged Asset which is delivered to the
Administrative Agent at least ten Business Days prior to the date that a requested Loan is to be made and (3) that for purposes of Section 4.01 of the Agreement, the representations and warranties contained in subsections (a) and
(b) of Section 6.05 of the Agreement shall be deemed to refer to the most recent statements furnished pursuant to subsections (a) and (b), respectively, of Section 7.01 of the Agreement. 

  
 A -3 

Form of Loan Notice 

 (c) No Default or Event of Default has occurred and is continuing as of the date hereof, or would
result from the making of the Borrowing contemplated herein or the application of the proceeds thereof if such Borrowing were made on the date hereof, and no Default or Event of Default will have occurred and be continuing at the time the Borrowing
contemplated herein is to be made or would result from the making of such Borrowing or the application of the proceeds thereof. 
 (d) The
Borrower agrees to cause the Mortgage Notes(s) and the other ELA Documents required by the Agreement, including Section 4.02(j) thereof, to be delivered to the Custodian by no later than when required pursuant to the applicable provisions of
the Agreement and Section 4.02 thereof. 
 (e) The Diligence Material delivered to the Administrative Agent with respect to the
Borrowing contemplated herein, and approved by the Administrative Agent, are accurate and complete in all material respects as of the date hereof. 

IN WITNESS WHEREOF, the undersigned has executed this Loan Notice as a document under seal as of
            , 20    . 
 TPG RE FINANCE 20, LTD.1 

By:                         
                                    

Print
Name:                                        
       

Title:                         
                                  

 

	1 	To be executed by an Authorized Signer 

  
 A -4 

Form of Loan Notice 

 EXHIBIT B 

FORM OF NOTE 

  ,                  

FOR VALUE RECEIVED, the undersigned (the “Borrower”), hereby promises to pay to
                             or its registered assigns (the “Lender”), in accordance
with the provisions of the Agreement (as hereinafter defined), the principal amount of each Loan from time to time made by the Lender to the Borrower under that certain Credit Agreement, dated as of September 29, 2017 (as amended, amended and
restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among the Borrower, TPG RE Finance Pledgor 20, LLC, a Delaware
limited liability company, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent. 
 The Borrower
promises to pay interest on the unpaid principal amount of each Loan from the date of such Loan until such principal amount is paid in full, at such interest rates and at such times as provided in the Agreement. All payments of principal and
interest shall be made to the Administrative Agent for the account of the Lender in Dollars in immediately available funds at the Administrative Agent’s Office. If any amount is not paid in full when due hereunder, such unpaid amount shall bear
interest, to be paid upon demand, from the due date thereof until the date of actual payment (and before as well as after judgment) computed at the per annum rate set forth in the Agreement. 

This Note is one of the Notes referred to in the Agreement, is entitled to the benefits thereof and may be prepaid in whole or in part subject
to the terms and conditions provided therein. This Note is also entitled to the benefits of the Guaranty and is secured by the Collateral. Upon the occurrence and continuation of one or more of the Events of Default specified in the Agreement, all
amounts then remaining unpaid on this Note shall become, or may be declared to be, immediately due and payable all as provided in the Agreement. Loans made by the Lender shall be evidenced by one or more loan accounts or records maintained by the
Lender in the ordinary course of business. The Lender may also attach schedules to this Note and endorse thereon the date, amount and maturity of its Loans and payments with respect thereto. 

The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment, protest and demand and notice of protest, demand,
dishonor and non-payment of this Note. 
 NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN OR IN THE AGREEMENT, THIS NOTE MAY NOT
BE TRANSFERRED EXCEPT PURSUANT TO AND IN ACCORDANCE WITH THE PROVISIONS OF SECTION 11.06 OF THE AGREEMENT. 

  
 B -1 

Form of Note 

 THIS NOTE AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR
OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS NOTE AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS
THEREOF (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). 
  

			
	TPG RE FINANCE 20, LTD.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 B -2 

Form of Note 

 LOANS AND PAYMENTS WITH RESPECT THERETO 

 

											
	 Date
	 	 Type of
Loan Made
	 	 Amount of
Loan Made
	  	 Amount of
Principal or

Interest
Paid This
Date
	  	 Outstanding
Principal
Balance
This Date
	  	 Notation
Made By

	  
	 	  
	 	  
	  	  
	  	  
	  	  

	  
	 	  
	 	  
	  	  
	  	  
	  	  

	  
	 	  
	 	  
	  	  
	  	  
	  	  

	  
	 	  
	 	  
	  	  
	  	  
	  	  

	  
	 	  
	 	  
	  	  
	  	  
	  	  

	  
	 	  
	 	  
	  	  
	  	  
	  	  

	  
	 	  
	 	  
	  	  
	  	  
	  	  

	  
	 	  
	 	  
	  	  
	  	  
	  	  

	  
	 	  
	 	  
	  	  
	  	  
	  	  

	  
	 	  
	 	  
	  	  
	  	  
	  	  

	  
	 	  
	 	  
	  	  
	  	  
	  	  

	  
	 	  
	 	  
	  	  
	  	  
	  	  

	  
	 	  
	 	  
	  	  
	  	  
	  	  

	  
	 	  
	 	  
	  	  
	  	  
	  	  

	  
	 	  
	 	  
	  	  
	  	  
	  	  

	  
	 	  
	 	  
	  	  
	  	  
	  	  

	  
	 	  
	 	  
	  	  
	  	  
	  	  

	  
	 	  
	 	  
	  	  
	  	  
	  	  

  
 B -3 

Form of Note 

 EXHIBIT C 

FORM OF COMPLIANCE CERTIFICATE 

☐ Check for distribution to PUBLIC and Private side
Lenders1 
 Financial Statement Date:
                    , 20         

 

	To:	Bank of America, N.A., as Administrative Agent 

 Ladies and Gentlemen: 

Reference is made to that certain Credit Agreement, dated as of September 29, 2017 (as amended, amended and restated, extended,
supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among TPG RE Finance 20, Ltd., an exempted company incorporated in the Cayman Islands
with limited liability (the “Borrower”), TPG RE Finance Pledgor 20, LLC, a Delaware limited liability company, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent. This Certificate is
delivered pursuant to [Section 2.03(b)(ii)(A)(III)] [Section 4.01(a)(xvi)] [Section 7.02(a)] of the Agreement. 
 The undersigned
Responsible Officer of TPG RE Finance Trust Holdco, LLC, a Delaware limited liability company (“Holdco”), hereby certifies as of the date hereof that he/she is the [chief executive officer] [chief financial officer] [treasurer]
[controller] [vice president, transactions] of Holdco, and that, as such, he/she is authorized to execute and deliver this Certificate to the Administrative Agent on behalf of Holdco and the Borrower, and further certifies in such capacity, and not
in any personal capacity, that: 
 [Use following paragraph 1 for fiscal year-end financial statements] 

1. The Borrower has delivered the year-end audited financial statements required by Section 7.01(a) of the Agreement for the
fiscal year of Holdco ended as of the above Financial Statement Date, together with the report and opinion of an independent certified public accountant required by such section. 

[Use following paragraph 1 for fiscal quarter-end financial statements] 

1. The Borrower has delivered the unaudited financial statements required by Section 7.01(b) of the Agreement for the fiscal
quarter of Holdco ended as of the above Financial Statement Date. Such financial statements fairly present the financial condition, results of operations, shareholders’ equity and cash flows of Holdco and its Subsidiaries in accordance with
GAAP as at such date and for such period, subject only to normal year-end audit adjustments and the absence of footnotes. 
  

	1 	If this is not checked, this certificate will only be posted to Private side Lenders. 

  
 C - 1 

Form of Compliance Certificate 

 2. The undersigned has reviewed and is familiar with the terms of the Agreement and has made, or
has caused to be made under his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of the Loan Parties during the accounting period covered by such financial statements. 

3. A review of the activities of the Loan Parties during such fiscal period has been made under the supervision of the undersigned with a view
to determining whether during such fiscal period the Loan Parties performed and observed all their Obligations under the Loan Documents, and 

[select one:] 

[to the best knowledge of the undersigned, during such fiscal period the Loan Parties performed and observed each covenant and condition of
the Loan Documents applicable to it, and no Default has occurred and is continuing.] 
 —or— 

[to the best knowledge of the undersigned, during such fiscal period the following covenants or conditions have not been performed or
observed and the following is a list of each such Default and its nature and status:] 
 4. The representations and warranties of the
Loan Parties made in the Agreement and the other Loan Documents are true and correct in all material respects (or if qualified by “materiality,” “material adverse effect” or similar language, in all respects (after giving effect
to such qualification)) on and as of the date hereof (other than the representation in Section 6.05(c) of the Agreement, which shall be made only as of the Closing Date), except (a) to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and correct in all material respects (or if qualified by “materiality,” “material adverse effect” or similar language, in all respects (after giving effect
to such qualification)) as of such earlier date, (b) in the case of the representations and warranties set forth on Exhibit E to the Agreement, which representations and warranties shall be true and correct with respect to each Pledged Asset
subject only to any exceptions set forth in the Confirmation Statement with respect to such Pledged Asset and any Exception Notice with respect to such Pledged Asset received by the Administrative Agent and (c) that for purposes of this
Certificate, the representations and warranties contained in subsections (a) and (b) of Section 6.05 of the Agreement shall be deemed to refer to the most recent statements furnished pursuant to subsections
(a) and (b), respectively, of Section 7.01 of the Agreement[, including the statements referenced in paragraph 1 of this Certificate. 

[Use following paragraphs 5 and 6 for delivery pursuant to Sections 4.01(a)(xvi) and 7.02(a)] 

[5. The financial covenant analyses and information set forth on Schedule 1 attached hereto are true and accurate on and as of the date
of this Certificate. 

  
 C - 2 

Form of Compliance Certificate 

 6. [Attached hereto are][The Borrower has delivered to the Administrative Agent] true, correct
and complete copies of a rent roll, statement of income or operations and leasing status report for the fiscal quarter ended on the Financial Statement Date for each Pledged Asset.] 

[Use following paragraphs 5 through 8 for delivery pursuant to Section 2.03(b)(ii)(A)(III)] 

[5. The Financial Statement Date is the last day of the fiscal quarter of Holdco most recently ended for which financial statements were
required to be delivered pursuant to Section 7.01(a) or (b) of the Agreement. 
 6. Attached hereto as Schedule
1 are true, correct and complete calculations as of the above Financial Statement Date, which calculations demonstrate that immediately after giving pro forma effect to the making of the Loan(s) requested to be made with respect to the Excess
Borrowing Base Capacity of certain Specified Pledged Assets in lieu of a Specified Prepayment pursuant to Section 2.03(b)(ii) of the Agreement, Holdco will be in compliance with the Financial Covenants, determined on a pro forma basis.

 7. Attached hereto as Schedule 2 are true, correct and complete calculations as of the above Financial Statement Date, which
calculations demonstrate that immediately after giving pro forma effect to the making of the Loan(s) requested to be made with respect to the Excess Borrowing Base Capacity of certain Specified Pledged Assets in lieu of a Specified Prepayment
pursuant to Section 2.03(b)(ii) of the Agreement, the Total Outstandings will be $             and will not exceed the Maximum Available Amount of
$            . 
 8. Attached hereto as Schedule 3 are true,
correct and complete calculations as of the above Financial Statement Date, which calculations demonstrate that immediately after giving pro forma effect to the making of the Loan(s) requested to be made with respect to the Excess Borrowing Base
Capacity of certain Specified Pledged Assets in lieu of a Specified Prepayment pursuant to Section 2.03(b)(ii) of the Agreement, the Pledged Asset Total Outstandings with respect to each Specified Pledged Asset will not exceed the
Borrowing Base Amount for such Specified Pledged Asset.] 
 IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
                ,          20        . 

 

			
	TPG RE FINANCE TRUST HOLDCO, LLC

 
			
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 C - 3 

Form of Compliance Certificate 

 For the Quarter/Year ended
             (“Statement Date”) 
 SCHEDULE 1 

to the Compliance Certificate 
 ($
in 000’s) 
  

	I.	Minimum Liquidity. 

  

									
	 	  	A.	  	Liquidity at Statement Date:	  	 
					
		  		  	1.	  	Cash and Cash Equivalents:	  	$                
					
		  		  	2.	  	Available Borrowing Capacity (as defined in the Agreement) (without duplication of amounts under Line I.A.1.):	  	$                
					
		  		  	3.	  	Liquidity	  	
					
		  		  		  	(Line I.A1. + Line I.A.2.):	  	$                
				
		  	B.	  	Minimum required:	  	$                2
				
		  	C.	  	Line I.A.3. 3 Line I.B.	  	Compliance:
(Yes or No)

  

	II.	Minimum Tangible Net Worth. 

  

									
	 	  	A.	  	Tangible Net Worth at Statement Date:	  	 
					
		  		  	1.	  	Total assets of Holdco:	  	$                
					
		  		  	2.	  	Total liabilities of Holdco:	  	$                
					
		  		  	3.	  	Tangible Net Worth (Line III.A.1.—Line III.A.2.):	  	$                
				
		  	B.	  	75% of the net cash proceeds of all equity issuances made by Holdco or the Sponsor as of the Closing Date:	  	$                
				
		  	C.	  	75% of the aggregate net cash proceeds of any equity issuances made by Holdco or the Sponsor after the Closing Date:	  	$                
				
		  	D.	  	Minimum required	  	
				
		  		  	(Lines III.B. + III.C.):	  	$                
				
		  	E.	  	Line III.A.3. 3 Line III.D.:	  	Compliance:
(Yes or No)

  

	2 	Greater of $10,000,000 and 5.0% of Holdco’s Recourse Indebtedness. 

  
 C - 4 

Form of Compliance Certificate 

	III.	Maximum Ratio of Total Indebtedness to Total Equity. 

  

							
				
		 	A.	  	Total Indebtedness at Statement Date:	  	$                
				
		 	B.	  	Total Equity at Statement Date:	  	$                
				
		 	C.	  	Ratio of Total Indebtedness to Total Equity	  	
				
		 		  	(Line IV.A. ÷ Line IV.B.):	  	         to 1.0
				
		 	D.	  	Maximum permitted:	  	     4.0 to 1.0
				
		 	E.	  	Line IV.A.3. £ Line IV.D.:	  	Compliance:
(Yes or No)

  

	IV.	Minimum Interest Coverage Ratio. 

  

									
	 	  	A.	  	EBITDA for the period of twelve (12) consecutive months ended on above date (if such date is the last
day of a fiscal quarter) or most recently ended prior to such date (if such date is not the last day of a
fiscal
quarter) (“Subject Period”):	  	 
					
		  		  	1.	  	Net Income for Subject Period:	  	$                
					
		  		  	2.	  	Depreciation and amortization expense for Subject Period:	  	$                
					
		  		  	3.	  	Interest Expense for Subject Period:	  	$                
					
		  		  	4.	  	Federal, state, local and foreign income taxes accrued or paid in cash during Subject Period:	  	$                
					
		  		  	5.	  	Extraordinary or non-recurring items reducing Net Income for Subject Period:	  	$                
					
		  		  	6.	  	EBITDA (Line V.A.1. + Line V.A.2. + Line V.A.3. + Line V.A.4. + Line V.A.5. + Line V.A.6.):	  	$                
				
		  	B.	  	Interest Expense for Subject Period:	  	$                
				
		  	C.	  	Ratio of EBITDA to Interest Expense	  	
				
		  		  	(Line V.A.6. ÷ Line V.B.):	  	         to 1.0
				
		  	D.	  	Minimum required:	  	     1.4 to 1.0
				
		  	E.	  	Line V.C. 3 Line V.D.:	  	Compliance:
 (Yes or No)

  
 C - 5 

Form of Compliance Certificate 

 For the Quarter/Year ended
             (“Statement Date”) 
 SCHEDULE 2 

to the Compliance Certificate 

MAXIMUM AVAILABLE AMOUNT 

  
 C - 6 

Form of Compliance Certificate 

 SCHEDULE 3 

to the Compliance Certificate 

PLEDGED ASSET TOTAL OUTSTANDINGS 

  
 C - 7 

Form of Compliance Certificate 

 EXHIBIT D 

ASSIGNMENT AND ASSUMPTION 

This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the Effective Date set forth below and is
entered into by and between [the][each]1 Assignor identified in item 1 below ([the][each, an] “Assignor”) and [the][each]2
Assignee identified in item 2 below ([the][each, an] “Assignee”). [It is understood and agreed that the rights and obligations of [the Assignors][the Assignees]3 hereunder are
several and not joint.]4 Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, the “Credit
Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this
Assignment and Assumption as if set forth herein in full. 
 For an agreed consideration, [the][each] Assignor hereby irrevocably sells and
assigns to [the Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and assumes from [the Assignor][the respective Assignors], subject to and in accordance with the Standard Terms and Conditions and the Credit
Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of [the Assignor’s][the respective Assignors’] rights and obligations in [its capacity as a Lender][their respective capacities as
Lenders] under the Credit Agreement and any other documents or instruments delivered pursuant thereto in the amount[s] and equal to the percentage interest[s] identified below of all the outstanding rights and obligations under the
respective facilities identified below and (ii) to the extent permitted to be assigned under applicable Law, all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a Lender)][the respective Assignors (in
their respective capacities as Lenders)] against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby
or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and
assigned pursuant to clause (i) above (the rights and obligations sold and assigned by [the][any] Assignor to [the][any] Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as [the][an]
“Assigned Interest”). Each such sale and assignment is without recourse to [the][any] Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by [the][any] Assignor. 

 
  
  

 

	1 	For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a single Assignor, choose the first bracketed language. If the assignment is from multiple Assignors, choose
the second bracketed language. 

	2 	For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a single Assignee, choose the first bracketed language. If the assignment is to multiple Assignees, choose the
second bracketed language. 

	3 	Select as appropriate. 

	4 	Include bracketed language if there are either multiple Assignors or multiple Assignees. 

  
 D - 1 

Form of Assignment and Assumption 

							
	1.	  	Assignor[s]: 	  	 	  	
				
		  		  	 	  	
				
		  		  	[Assignor [is] [is not] a Defaulting Lender]	  	
				
	2.	  	Assignee[s]:	  	 	  	
				
		  		  	 	  	
			
		  		  	[for each Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]]
			
	3.	  	Borrower(s):	  	TPG RE Finance 20, Ltd.
		
	4.	  	Administrative Agent: Bank of America, N.A., as the administrative agent under the Credit Agreement
		
	5.	  	Credit Agreement: Credit Agreement, dated as of September 29, 2017, among TPG RE Finance 20, Ltd., an exempted company incorporated in the Cayman Islands with limited liability (“Borrower”),
TPG RE Finance Pledgor 20, LLC, a Delaware limited liability company, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent
		
	6.	  	Assigned Interest[s]:

  

																	
	 Assignor[s]5
	  	
Assignee[s]6
	  	Aggregate
Amount of
Commitments
for all Lenders7	 	  	Amount of
Commitment
Assigned	 	  	Percentage
Assigned of
Commitment8	 	 	 CUSIP

Number

		  		  	$	                	 	  	$	                	 	  	 	                	% 	 	
		  		  	$	                	 	  	$	                	 	  	 	                	% 	 	
		  		  	$	                	 	  	$	                	 	  	 	                	% 	 	

  

	[7.	Trade Date:                                ]9 

  
  

 
  
  

 

	5 	List each Assignor, as appropriate. 

	6 	List each Assignee and, if available, its market entity identifier, as appropriate. 

	7 	Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date.

	8 	Set forth, to at least 9 decimals, as a percentage of the Commitment of all Lenders thereunder. 

	9 	To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date. 

  
 D - 2 

Form of Assignment and Assumption 

 Effective Date:
                , 20        [TO BE INSERTED BY THE ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF
RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.] 
 The terms set forth in this Assignment and Assumption are hereby agreed to: 

 

			
	ASSIGNOR[S]
	
	[NAME OF ASSIGNOR]
		
	By:	 	 
	
	[NAME OF ASSIGNOR]
		
	By:	 	 
		 	Title:

  

			
	ASSIGNEE[S]
	
	[NAME OF ASSIGNEE]
		
	By:	 	 
		 	Title:
	
	[NAME OF ASSIGNEE]
		
	By:	 	 
		 	Title:

  
 D - 3 

Form of Assignment and Assumption 

 [Consented to and]10 Accepted: 

 

			
	 BANK OF AMERICA, N.A., as
Administrative
Agent

			
		
	By: 	 	 
		 	Title:

 [Consented to:]11 

 

			
	TPG RE FINANCE 20, LTD.
		
	By:	 	 
		 	Title:

  
  

	10 	To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement. 

	11 	To be added only if the consent of the Borrower is required by the terms of the Credit Agreement. 

  
 D - 4 

Form of Assignment and Assumption 

 ANNEX 1 TO ASSIGNMENT AND ASSUMPTION 

STANDARD TERMS AND CONDITIONS FOR 

ASSIGNMENT AND ASSUMPTION 
 1.
Representations and Warranties. 
 1.1. Assignor. [The][Each] Assignor (a) represents and warrants that (i) it is
the legal and beneficial owner of [the][the relevant] Assigned Interest, (ii) [the][such] Assigned Interest is free and clear of any lien, encumbrance or other adverse claim, (iii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and (iv) it is [not] a Defaulting Lender; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any
collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document. 
 1.2. Assignee.
[The][Each] Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and
to become a Lender under the Credit Agreement, (ii) it meets all the requirements to be an assignee under Section 11.06(b)(iii) and (v) of the Credit Agreement (subject to such consents, if any, as may be required under
Section 11.06(b)(iii) of the Credit Agreement), (iii) from and after the Effective Date referred to in this Assignment and Assumption, it shall be bound by the provisions of the Credit Agreement and the other Loan Documents as a
Lender thereunder and, to the extent of [the][the relevant] Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by [the][such]
Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire [the][such] Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has
received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 6.05 thereof, as applicable, and such other documents and information as it deems appropriate to make its own
credit analysis and decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, (vi) it has, independently and without reliance upon the Administrative Agent or any other Lender and based on such
documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, and (vii) if it is a Foreign Lender, attached hereto
is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by [the][such] Assignee; and (b) agrees that (i) it will, independently and without reliance upon the
Administrative Agent, [the][any] Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents,
and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender. 

  
 D - 5 

Form of Assignment and Assumption 

 [The][Each] Assignee represents and warrants as of the Effective Date to the Administrative
Agent, [the][each] Assignor and the respective Affiliates of each, and not, for the avoidance of doubt, for the benefit of the Borrower or any other Loan Party, that [the][such] Assignee is not and will not be (1) an employee benefit plan
subject to Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), (2) a plan or account subject to Section 4975 of the Internal Revenue Code of 1986 (the “Code”); (3) an entity deemed
to hold “plan assets” of any such plans or accounts for purposes of ERISA or the Code; or (4) a “governmental plan” within the meaning of ERISA. 

2. Payments. From and after the Effective Date, the Administrative Agent shall make all payments in respect of [the][each] Assigned
Interest (including payments of principal, interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued to but excluding the Effective Date and to [the][the relevant] Assignee for amounts which have accrued from
and after the Effective Date. Notwithstanding the foregoing, the Administrative Agent shall make all payments of interest, fees or other amounts paid or payable in kind from and after the Effective Date to [the][the relevant] Assignee. 

3. General Provisions. This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and
Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York. 

  
 D - 6 

Form of Assignment and Assumption 

 EXHIBIT E 

REPRESENTATIONS AND WARRANTIES REGARDING THE PLEDGED ASSETS 

PART 1: REPRESENTIONS AND WARRANTIES REGARDING SENIOR LOANS 

1. Performing First-Lien Mortgage Loan. Such Senior Loan is a performing mortgage loan secured by (or, upon such filing, recording or
registration as required to perfect the relevant security interest, will be secured by) a first priority perfected security interest in a commercial real estate property classified as multi-tenant retail, multi-family, office, industrial or lodging
or some combination of the foregoing located in one of the states of the United States or in the District of Columbia. Such Senior Loan is a whole loan and not a participation interest in a loan or part of an “A/B” or other multiple-note
structure. 
 2. Compliance with Laws. Such Senior Loan complies in all material respects with, or is exempt from, all applicable
Legal Requirements (including all laws, rules and regulations relating to usury). Each Mortgage Note was originated by a lender then duly authorized and licensed to originate the Mortgage Note. 

3. Ownership. The Borrower is the sole legal and equitable owner and holder of such Senior Loan, free and clear of all Liens (other
than Permitted Liens). Such Senior Loan has been duly authorized and validly issued to the Borrower, and has been and will continue to be validly pledged or assigned to the Administrative Agent, subject to no other Liens (other than Permitted
Liens). Neither the Borrower, any of its Subsidiaries nor the directors or executive officers of the Borrower or its Subsidiaries have any ownership interest, right to acquire any ownership interest or equivalent economic interest in (a) any
property securing such Senior Loan, (b) the Mortgagor under such Senior Loan, or (c) any other obligor on, or guarantor of, any related Mortgage Note. 

4. No Fraudulent Acts. No fraudulent acts were committed by the Borrower or any of its Affiliates in connection with its acquisition or
origination of such Senior Loan nor, to the Borrower’s knowledge, were any fraudulent acts committed by any other Person in connection with the origination of such Senior Loan. 

5. Accuracy of Diligence Materials. All information contained in the related Diligence Materials (or as otherwise provided to the
Administrative Agent and the Lenders) in respect of such Senior Loan is accurate and complete in all material respects. The Borrower has made available to the Administrative Agent and the Lenders for inspection, with respect to such Senior Loan,
true, correct and complete copies of the ELA Documents. 
 6. Absence of Agreements. Except as included in the Due Diligence Package
or by written instruments included as ELA Documents or as otherwise permitted under this Agreement, (i) the Borrower is not a party to any document, instrument or agreement, and there is no document, instrument or agreement, that by its terms
modifies or affects materially the rights and obligations of any holder of such Senior Loan, and (ii) the Borrower has not and has not consented to any material change or waiver to any term or provision of any such document, instrument or
agreement and no such change or waiver exists. 

  
 E-1 

 7. Power to Pledge. The Borrower has, and shall continue to have, the full right, power
and authority to pledge such Senior Loan under this Agreement, and such Senior Loan or any related Mortgage Note has not been cancelled, satisfied or rescinded in whole or part nor has any instrument been executed that would effect a cancellation,
satisfaction or rescission thereof. No consent, approval, authorization or order of, or registration or filing with, or notice to, any court or governmental agency or body having jurisdiction or regulatory authority or any other Person is required
for any transfer, pledge or assignment of such Senior Loan. 
 8. ELA Documents. The Mortgage Note for such Senior Loan is
(1) payable to the order of the Borrower, (2) an “instrument” within the meaning of Section 9-102 of the UCC of all applicable jurisdictions and (3) is denominated and payable in Dollars. The Borrower has delivered to
the Administrative Agent or its designee the original Mortgage Note(s) made in respect of such Senior Loan, together with an original endorsement thereof executed by the Borrower in blank. The original assignments of Mortgage, assignment of leases
(if a separate instrument) and of UCC financing statements delivered, or if applicable, to be delivered pursuant to any Delayed Conditions, to the Administrative Agent or its designee, in blank for such Senior Loan, when such blanks are completed,
will be in recordable form and comply with all applicable laws and regulations governing the filing and recording of such documents. The related ELA Documents provide, or the Borrower has sent or caused to be sent a direction letter to the related
Mortgagor, providing that such Mortgagor shall make any and all payments due in connection with such Senior Loan to the Servicer. 
 The
Borrower has forwarded to the Custodian (or an Acceptable Attorney pursuant to an Attorney’s Bailee Letter with delivery to the Custodian within the time period required under this Agreement) all additional original documents, including all
original letters of credit issued after the Pledge Date for a Pledged Asset, and all additional documents evidencing any assumption, modification, consolidation, extension or funding of a Pledged Asset approved in accordance with the terms of this
Agreement (including in connection with any Loan with respect to a Future Funding Amount), for the Custodian to hold for the benefit of the Administrative Agent pursuant to the Custodial Agreement. With respect to any documents which have been
delivered or are being delivered to recording offices for recording and have not been returned to the Borrower in time to permit their delivery to the Custodian (or an Acceptable Attorney pursuant to an Attorney’s Bailee Letter with delivery to
the Custodian within the time period required under this Agreement) at the time required, in lieu of delivering such original documents, the Borrower has delivered to the Custodian (or an Acceptable Attorney pursuant to an Attorney’s Bailee
Letter with delivery to the Custodian within the time period required under this Agreement) a true copy thereof with a certificate of a Responsible Officer of the Borrower certifying that such copies represent true, correct and complete copies of
the originals and that such originals have been submitted for recordation. The Borrower shall deliver such original documents to the Custodian promptly after receipt. Any ELA Documents not delivered to the Custodian are being held in trust by the
Borrower or its designee for the benefit of the Administrative Agent. 
 9. ELA Document Status. Each related Mortgage Note,
Mortgage, assignment of leases (if a separate instrument), guaranty, ELA Document and other agreement executed by or on behalf of the related Mortgagor, guarantor or other obligor or party, as applicable, in connection with such Senior Loan has been
duly executed and delivered by the parties thereto and is the legal, valid and binding obligation of the related Mortgagor, guarantor or other obligor 

  
 E-2 

 
or party (subject to any applicable state anti-deficiency or market value limit deficiency legislation), as applicable, and is enforceable in accordance with its terms, except (i) as such
enforcement may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar laws relating to or affecting the enforcement of creditors’ rights generally or by general principles of equity (regardless
of whether such enforcement is considered in a proceeding in equity or at law) and (ii) that certain provisions in such ELA Documents (including, without limitation, provisions requiring the payment of default interest, late fees or
prepayment/yield maintenance fees, charges and/or premiums) are, or may be, further limited or rendered unenforceable by or under applicable law, but such limitations or unenforceability will not render such ELA Document invalid as a whole or
materially interfere with the practical realization of the rights and benefits afforded thereby and/or the security provided thereby (clauses (i) and (ii), collectively, the “Standard Qualifications”). The related Mortgage Note
and Mortgage contain no provision limiting the right or ability of the Borrower to assign, transfer or convey such Senior Loan to any other Person. With respect to any Mortgaged Property that has tenants, there exists as either part of the Mortgage
or as a separate document, an assignment of leases. No party to such Senior Loan or any ELA Document is in violation of any Legal Requirement if the violation would impair the collectability of the Mortgage Loan or the performance by the related
Mortgagor or any other obligor of its obligations under the Mortgage Note or any related ELA Document. 
 There is no valid offset, defense, counterclaim or
right of rescission available with respect to any of the related Mortgage Notes, Mortgages or other ELA Documents relating to such Senior Loan, including, without limitation, any such valid offset, defense, counterclaim or right based on intentional
fraud by the Borrower in connection with the origination of the Senior Loan, except in each case, with respect to enforceability, the Standard Qualifications. 

10. Mortgage Provisions. The ELA Documents for such Senior Loan contain provisions comparable to those customary for loans secured by
mortgaged properties similarly situated that render the rights and remedies of the holder thereof adequate for the practical realization against the Mortgaged Property of the principal benefits of the security intended to be provided thereby,
including realization by judicial or, if applicable, non-judicial foreclosure subject to the Standard Qualifications. 
 11. Mortgage
Status; Waivers and Modifications. Since the origination of such Senior Loan and except by written instruments included as ELA Documents or as otherwise permitted under this Agreement, (a) the material terms of any related Mortgage,
Mortgage Note, guaranty, and any other related ELA Documents have not been waived, impaired, modified, altered, satisfied, canceled, subordinated or rescinded in any respect which materially and adversely affects the value of such Senior Loan or
materially interferes with the security intended to be provided by such Mortgage; (b) no related Mortgaged Property or any portion thereof has been released from the lien of the related Mortgage; and (c) neither the related Mortgagor nor
any related guarantor has been released from any of its obligations under the Senior Loan. 
 12. Assignability; Title; Encumbrances.
Each related Mortgage and assignment of leases, if any, is freely assignable without the consent of the related Mortgagor or any other Person. Each related Mortgage is a legal, valid and enforceable first lien on the related Mortgagor’s fee (or
in the case of a Ground Leases (as defined below), leasehold) interest in the 

  
 E-3 

 
Mortgaged Property in the principal amount of such Senior Loan subject only to the exceptions set forth in Paragraph 9 of this Part 1 and the following title exceptions (each such title
exception, a “Title Exception,” and collectively, the “Title Exceptions”): (a) the lien of current real property taxes, water charges, sewer rents and assessments not yet due and payable; (b) covenants,
conditions and restrictions, rights of way, easements and other matters of public record; (c) the exceptions (general and specific) and exclusions set forth in the Title Policy (as defined below) relating to the Mortgage Loan; (d) other
matters to which like properties are commonly subject; (e) the rights of tenants (as tenants only) under leases (including subleases) pertaining to the related Mortgaged Property; and (f) if such Senior Loan is cross-collateralized and
cross-defaulted with one or more mortgage loans, the lien of the Mortgage for another mortgage loan contained in the same cross-collateralized and cross-defaulted group of mortgage loans (“Crossed Mortgage Loans”); provided
that none of such items (a) through (f), individually or in the aggregate, materially and adversely interferes with the value or current use of the Mortgaged Property or the security intended to be provided by such Mortgage or the
Mortgagor’s ability to pay its obligations when they become due (collectively, the “Permitted Encumbrances”). Except as contemplated by clause (f) of the preceding sentence none of the Permitted Encumbrances are mortgage
liens that are senior to or pari passu with the lien of the related Mortgage and there are no mezzanine loans secured by pledges of direct or indirect ownership interests in the related Mortgagor. The related Mortgaged Property is free and clear of
any recorded mechanics’ liens, recorded materialmen’s liens and other recorded encumbrances which are prior to or equal with the lien of the related Mortgage, except those which are bonded over, escrowed for or insured against by a
lender’s title insurance policy (as described below), and, subject to the rights of tenants (as tenants only) (subject to and excepting Permitted Encumbrances and the Title Exceptions), no rights exist which under law could give rise to any
such lien or encumbrance that would be prior to or equal with the lien of the related Mortgage, except those which are bonded over, escrowed for or insured against by a lender’s title insurance policy (as described below). 

13. Title Insurance. Each Mortgaged Property securing such Senior Loan is covered by an American Land Title Association loan title
insurance policy or a comparable form of loan title insurance policy approved for use in the applicable jurisdiction (or, if such policy is yet to be issued, by a pro forma policy, a preliminary title policy with escrow instructions or a
“marked up” commitment, in each case binding on the title insurer) (as applicable, the “Title Policy”) in the original principal amount of such Senior Loan (or with respect to a Senior Loan secured by multiple properties,
an amount equal to at least the allocated loan amount with respect to the Title Policy for each such property) after all advances of principal (including any advances held in escrow or reserves), that insures for the benefit of the owner of the
indebtedness secured by the Mortgage and its successors and assigns as the named insured of such policy, the first priority lien of the Mortgage, which lien is subject only to Permitted Encumbrances. Such Title Policy (or, if it has yet to be
issued, the coverage to be provided thereby) is assignable without consent of the insurer, is in full force and effect, all premiums thereon have been paid, no claims have been made by the Borrower thereunder and no claims have been paid thereunder.
Neither the Borrower nor, to the Borrower’s knowledge, any other holder of such Senior Loan, has done, by act or omission, anything that would materially impair the coverage under such Title Policy. The insurer issuing such Title Policy is
(x) a nationally-recognized title insurance company and (y) qualified to do business in the jurisdiction in which the related Mortgaged Property is located to the extent required. 

  
 E-4 

 14. Junior Liens. Except for any Crossed Mortgage Loans, there are no subordinate
mortgages or junior liens securing the payment of money encumbering the related Mortgaged Property (other than Permitted Encumbrances and Title Exceptions, mechanics’ and materialmen’s liens (which are the subject of the representation in
Paragraph 12 of this Part 1)). None of the ELA Documents permits the related Mortgaged Property to be encumbered without the prior written consent of the holder of such Mortgage Loan, by any lien securing the payment of money junior to or of equal
priority with, or superior to, the lien of the related Mortgage (other than contested taxes, assessments and mechanic’s and materialmen’s liens that become due after the Pledge Date of the related Mortgage Loan). 

15. Assignment of Leases and Rents. There exists as part of the related ELA Documents an assignment of leases (either as a separate
instrument or incorporated into the related Mortgage). Subject to the Permitted Encumbrances and the Title Exceptions, each related assignment of leases creates a valid first-priority collateral assignment of, or a valid first-priority lien or
security interest in, rents and certain rights under the related lease or leases, subject only to a license granted to the related Mortgagor to exercise certain rights and to perform certain obligations of the lessor under such lease or leases,
including the right to operate the related leased property, except as the enforcement thereof may be limited by the Standard Qualifications. 

16. UCC Filings. UCC financing statements have been filed and/or recorded (or, if not filed and/or recorded, have been submitted in
proper form for filing and recording), in all public places necessary to perfect a valid security interest in all items of personal property located on the Mortgaged Property that are owned by the Mortgagor and either (i) are reasonably
necessary to operate such Mortgaged Property or (ii) are (as indicated in the related appraisal) material to the value of the Mortgaged Property (other than any personal property subject to a purchase money security interest or a sale and
leaseback financing arrangement permitted under the terms of the related ELA Documents or any other personal property leases applicable to such personal property) (other than any non-material personal property, any personal property subject to a
purchase money security interest, a sale and leaseback financing arrangement as permitted under the terms of the related ELA Documents or any other personal property leases applicable to such personal property), to the extent perfection may be
effected pursuant to applicable law by recording or filing, as the case may be, and the Mortgages, security agreements, chattel mortgages or equivalent documents related to and delivered in connection with such Senior Loan establish and create a
valid and enforceable lien and priority security interest on such items of personalty except as such enforcement may be limited by the Standard Qualifications. Notwithstanding any of the foregoing, no representation is made as to the perfection of
any security interest in rents or other personal property to the extent that possession or control of such items or actions other than the filing of UCC financing statements are required in order to effect such perfection. 

17. Condition of Property. As of any date of determination, each related Mortgaged Property was inspected by or on behalf of the
Borrower during the 12 month period ending on such date and, to the Borrower’s knowledge, based solely upon due diligence customarily performed in connection with the origination of comparable mortgage loans, is free and clear of any material
damage (other than (i) deferred maintenance for which escrows were established at origination and (ii) any damage fully covered by insurance) that would affect materially and adversely the use or value of such Mortgaged Property as
security for the Senior Loan. 

  
 E-5 

 18. Taxes and Assessments. All taxes, governmental assessments and other outstanding
governmental charges (including, without limitation, water and sewage charges), or installments thereof, which could be a lien on the related Mortgaged Property that would be of equal or superior priority to the lien on the related Mortgage and that
have become delinquent in respect of each related Mortgaged Property have been paid, or an escrow of funds has been established in an amount sufficient to cover such payments and reasonably estimated interest and penalties, if any, thereon. For
purposes of this representation and warranty, real estate taxes and governmental assessments and other outstanding governmental charges and installments thereof shall not be considered delinquent until the earlier of (a) the date on which
interest and/or penalties would first be payable thereon and (b) the date on which enforcement action is entitled to be taken by the related taxing authority. 

19. Condemnation. There is no proceeding pending, and, to Borrower’s knowledge, there is no proceeding threatened, for the total
or partial condemnation of such Mortgaged Property that would have a material adverse effect on the value, use or operation of the Mortgaged Property. 

20. Actions Concerning Senior Loan. There is not pending or filed, and to Borrower’s knowledge, there is not threatened, any
action, suit or proceeding, arbitration or governmental investigation involving any Mortgagor, guarantor, or the Mortgaged Property, an adverse outcome of which would reasonably be expected to materially and adversely affect (a) such
Mortgagor’s title to the Mortgaged Property, (b) the validity or enforceability of the Mortgage, (c) such Mortgagor’s ability to perform under the related ELA Documents, including, without limitation, such Mortgagor’s
ability to pay principal, interest or any other amounts due under such Senior Loan or the security intended to be provided by the ELA Documents relating to the Senior Loan or the use of the related Mortgaged Property, (d) such guarantor’s
ability to perform under the related guaranty, (e) the use, operation or value of the Mortgaged Property, (f) the principal benefit of the security intended to be provided by the ELA Documents, (g) the ability of the Mortgaged
Property to generate net cash flow sufficient to service such Pledged Asset or (h) the current principal use of the Mortgaged Property. 

21. No Holdbacks. Such Senior Loan is presently outstanding, the proceeds thereof have been fully and properly disbursed and unless
such Senior Loan is a Future Funding Pledged Asset, there is no requirement for any future advances thereunder. 
 22. Insurance.
Each related Mortgaged Property is, and is required pursuant to the related Mortgage (or other ELA Document) to be, insured by a property insurance policy providing coverage for loss in accordance with coverage found under a “special cause of
loss form” or “all risk form” that includes replacement cost valuation issued by an insurer meeting the requirements of the related Mortgage (or other ELA Document) and having a claims-paying or financial strength rating of at least
“A :VIII” from A.M. Best Company or “A3” (or the equivalent) from Moody’s or “A-” from Standard & Poor’s (collectively, the “Insurance Rating Requirements”), in an amount (subject to
a customary deductible) not less than the lesser of (1) the outstanding principal balance of such Senior Loan and (2) the full insurable value on a 

  
 E-6 

 
replacement cost basis of the improvements, furniture, furnishings, fixtures and equipment owned by the mortgagor and included in the Mortgaged Property (with no deduction for physical
depreciation), but, in any event, not less than the amount necessary, or containing such endorsements as are necessary, to avoid the operation of any coinsurance provisions with respect to the related Mortgaged Property. 

Each related Mortgaged Property is also covered, and is required to be covered pursuant to the related ELA Documents, by business interruption
or rental loss insurance which (subject to a customary deductible) covers a period of not less than 12 months (or if such Mortgage Loan is on a single asset with a principal balance of $35 million or more, 18 months). 

An architectural or engineering consultant has performed an analysis of each of the Mortgaged Properties located in seismic zones 3 or 4 in
order to evaluate the structural and seismic condition of such property, for the sole purpose of assessing the scenario expected limit (“SEL”) for the Mortgaged Property in the event of an earthquake. In such instance, the SEL was
based on a 475-year return period, an exposure period of 50 years and a 10% probability of exceedance. If the resulting report concluded that the SEL would exceed 20% of the amount of the replacement costs of the improvements, earthquake insurance
on such Mortgaged Property was obtained by an insurer rated at least “A:VIII” by A.M. Best Company or “A3” (or the equivalent) from Moody’s or “A-” by S&P in an amount not less than 100% of the SEL. 

The related ELA Documents require insurance proceeds in respect of a property loss to be applied either (a) to the repair or restoration
of all or part of the related Mortgaged Property, with respect to all property losses in excess of 5% of the then outstanding principal amount of such Senior Loan, the lender (or a trustee appointed by it) of such Senior Loan having the right to
hold and disburse such proceeds as the repair or restoration progresses, or (b) to the payment of the outstanding principal balance of such Senior Loan together with any accrued interest thereon. 

All premiums on all insurance policies referred to in this Paragraph 22 for such Senior Loan have been paid, and such insurance policies name
the lender under such Senior Loan and its successors and assigns as a loss payee under a mortgagee endorsement clause or, in the case of the general liability insurance policy, as named or additional insured. Such Senior Loan obligates the related
Mortgagor to maintain or cause to be maintained all such insurance and, at such Mortgagor’s failure to do so, authorizes the lender of such Senior Loan to maintain such insurance at the Mortgagor’s cost and expense and to charge such
Mortgagor for related premiums. All such insurance policies (other than commercial liability policies) require prior notice as provided in the ELA Documents to the lender of such Senior Loan of termination or cancellation (or such lesser period, as
may be required by applicable law) arising for any reason other than non-payment of a premium and no such notice has been received by the Borrower. 

23. Flood Insurance. The improvements located on the Mortgaged Property securing such Senior Loan are either not located in a federally
designated special flood hazard area or, if so located, the related Mortgagor is required pursuant to the ELA Documents to maintain or the mortgagee maintains, a flood insurance policy with respect to such improvements and such policy is in full
force and effect in an amount no less than the lesser of (i) the original principal balance of such Senior Loan, (ii) the value of such improvements on the related Mortgaged Property located in such flood hazard area or (iii) the
maximum allowed under the related federal flood insurance program. 

  
 E-7 

 24. Access; Utilities; Separate Tax Lots. To Borrower’s knowledge, based solely upon
the Borrower’s review of the related Title Policy and current surveys obtained in connection with origination, each Mortgaged Property related to such Senior Loan (a) is located on or adjacent to a public road and has direct legal access
to such road, or has access via an irrevocable easement or irrevocable right of way permitting ingress and egress to/from a public road, (b) is served by or has uninhibited access rights to public or private water and sewer (or well and septic)
and all required utilities, all of which are appropriate for the current use of the Mortgaged Property, and (c) constitutes one or more separate tax parcels which do not include any property that is not part of the Mortgaged Property or is
subject to an endorsement under the related Title Policy insuring the Mortgaged Property. 
 25. No Encroachments. To the
Borrower’s knowledge, based solely on current surveys obtained in connection with the origination of such Senior Loan and the lender’s Title Policy (or, if such policy is not yet issued, a pro forma title policy, a preliminary title policy
with escrow instructions or a “marked up” commitment) obtained in connection with the origination of such Senior Loan, (a) none of the material improvements that were included for the purpose of determining the appraised value of any
Mortgaged Property securing such Senior Loan at the time of origination are outside of the boundaries or building restriction lines of such Mortgaged Property, except encroachments that do not materially and adversely affect the value or current use
of such Mortgaged Property or for which insurance or endorsements were obtained under the Title Policy (b) no improvements on adjoining parcels encroach onto the related Mortgaged Property except for encroachments that do not materially and
adversely affect the value or current use of such Mortgaged Property or for which insurance or endorsements were obtained under the Title Policy and (c) no improvements encroach upon any easements except for encroachments the removal of which
would not materially and adversely affect the value or current use of such Mortgaged Property or for which insurance or endorsements obtained with respect to the Title Policy. 

26. No Contingent Interest or Equity Participation. Such Senior Loan is a whole loan and does not have any shared appreciation feature,
any other contingent or additional interest feature or a negative amortization or an equity participation by the Borrower. The Borrower holds no preferred equity interest in the direct or indirect owner of the Mortgaged Property securing such Senior
Loan. 
 27. REMIC. Such Senior Loan is not REMIC eligible. 

28. Authorized to do Business. To the extent required under applicable law as of the date of origination, and as necessary for the
enforceability or collectability of such Senior Loan, the originator and each other holder of the related Mortgage Note was authorized to transact and do business in the jurisdiction in which each related Mortgaged Property is located, or the
failure to be so authorized does not materially or adversely affect the enforcement of such Senior Loan by such holder of the related Mortgage Note. 

  
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 29. Trustee under Deed of Trust. With respect to such Senior Loan, if the related Mortgage
is a deed of trust, a trustee, duly qualified under applicable law to serve as such, serves and is named in the deed of trust or has been substituted in accordance with such Mortgage and applicable law or may be substituted in accordance with such
Mortgage and applicable law by the related mortgagee. 
 30. Local Law Compliance. With respect to such Senior Loan, there are no
material violations of any applicable zoning ordinances, building codes or land laws applicable to any related Mortgaged Property or the use and occupancy thereof which (i) are not insured by an ALTA lender’s title insurance policy (or a
binding commitment therefor), or its equivalent as adopted in the applicable jurisdiction, or a law and ordinance insurance policy or (ii) would have a material adverse effect on the value, operation or operating income of such Mortgaged
Property or the security interest in such Mortgaged Property intended to be provided by the Mortgage securing such Senior Loan. The ELA Documents require the related Mortgaged Property to comply in all material respects with all applicable laws and
ordinances. 
 31. Licenses and Permits. The Mortgagor of such Senior Loan, the related lessee, franchisor or operator is in
possession of all material licenses, permits and authorizations required for use of the related Mortgaged Property by such Mortgagor and all such material licenses, permits and authorizations are in effect. The related ELA Documents require the
Mortgagor to keep all material licenses, permits and authorizations necessary for its operation of the Mortgaged Property in full force and effect and to be qualified to do business in the jurisdiction in which the related Mortgaged Property is
located. 
 32. Recourse Obligations. The ELA Documents for such Senior Loan provide that such Senior Loan (a) becomes full
recourse to the related Mortgagor or guarantor (which is a natural person or persons, or an entity distinct from the Mortgagor (but may be affiliated with the Mortgagor) that has assets other than equity in the related Mortgaged Property that are
not de minimis) in any of the following events: (i) if any voluntary petition for bankruptcy, insolvency, dissolution or liquidation pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed by the Mortgagor;
(ii) the Mortgagor or guarantor shall have colluded with (or, alternatively, solicited or caused to be solicited) other creditors to cause an involuntary bankruptcy filing with respect to the Mortgagor or (iii) voluntary transfers of
either the Mortgaged Property or equity interests in the Mortgagor made in violation of the ELA Documents; and (b) contains provisions providing for recourse against the Mortgagor or guarantor (which is a natural person or persons, or an entity
distinct from the Mortgagor (but may be affiliated with the Mortgagor) that has assets other than equity in the related Mortgaged Property that are not de minimis), for losses and damages sustained by reason of the Mortgagor’s
(i) misappropriation of rents after the occurrence of an event of default under the Senior Loan; (ii) misappropriation of (A) insurance proceeds or condemnation awards or (B) security deposits or, alternatively, the failure of
any security deposits to be delivered to the lender under such Senior Loan upon foreclosure or action in lieu thereof (except to the extent applied in accordance with leases prior to a Senior Loan event of default); (iii) fraud or intentional
material misrepresentation; (iv) breaches of the environmental covenants in the related ELA Documents; or (v) commission of intentional material physical waste at the related Mortgaged Property. 

  
 E-9 

 33. Financial Reporting and Rent Rolls. The ELA Documents with respect to such Senior Loan
require the Mortgagor to provide the owner or holder of the Mortgage with quarterly and annual operating statements, and quarterly rent rolls for properties that have leases contributing more than 5% of the in-place base rent and annual financial
statements, which annual financial statements with respect to such Senior Loan with more than one mortgagor are in the form of an annual combined balance sheet of the Mortgagor entities (and no other entities), together with the related combined
statements of operations, members’ capital and cash flows, including a combining balance sheet and statement of income for the Mortgaged Properties on a combined basis. 

34. Acts of Terrorism Exclusion. With respect to such Senior Loan, the related special-form all-risk insurance policy and business
interruption policy (issued by an insurer meeting the Insurance Rating Requirements) do not specifically exclude Acts of Terrorism, as defined in the Terrorism Risk Insurance Act of 2002, as amended by the Terrorism Risk Insurance Program
Reauthorization Act of 2007 (collectively referred to as “TRIA”), from coverage, or if such coverage is excluded, it is covered by a separate terrorism insurance policy. With respect to such Senior Loan, the related ELA Documents do
not expressly waive or prohibit the mortgagee from requiring coverage for Acts of Terrorism, as defined in TRIA, or damages related thereto except to the extent that any right to require such coverage may be limited by commercial availability on
commercially reasonable terms; provided, that if TRIA or a similar or subsequent statute is not in effect, then, provided that terrorism insurance is commercially available, the mortgagor under such Senior Loan is required to carry terrorism
insurance, but in such event the mortgagor shall not be required to spend on terrorism insurance coverage more than two times the amount of the insurance premium that is payable in respect of the property and business interruption/rental loss
insurance required under the related ELA Documents (without giving effect to the cost of terrorism and earthquake components of such casualty and business interruption/rental loss insurance) at the time of origination of the Senior Loan, and if the
cost of terrorism insurance exceeds such amount, the mortgagor is required to purchase the maximum amount of terrorism insurance available with funds equal to such amount. 

35. Interest Rate. Either (A) such Senior Loan bears interest at a rate that remains fixed throughout the remaining term of such
Senior Loan, except in the case of situations where default interest is imposed or (B) such Senior Loan bears interest at a floating rate equal to the sum of (x) LIBOR or the Federal Funds Rate plus (y) a fixed number of basis points
throughout the remaining term of the Senior Loan except in situations where default interest may be imposed. The interest rate (exclusive of any default interest, late charges, yield maintenance charges, or prepayment premiums) of such Senior Loan
complied as of the date of origination with, or was exempt from, applicable state or federal laws, regulations and other requirements pertaining to usury. 

36. Ground Leases. For purposes of this Paragraph 36 (“Ground Leases”), a “Ground Lease” shall mean a lease
creating a leasehold estate in real property where the fee owner as the ground lessor conveys for a term or terms of years its entire interest in the land and buildings and other improvements, if any, comprising the premises demised under such lease
to the ground lessee (who may, in certain circumstances, own the building and improvements on the land), subject to the reversionary interest of the ground lessor as fee owner and does not include industrial development agency or similar leases for
purposes of conferring a tax abatement or 

  
 E-10 

 
other benefit. If such Senior Loan is secured by a leasehold estate under a Ground Lease in whole or in part, and the related Mortgage does not also encumber the related lessor’s fee
interest in such Mortgaged Property, based upon the terms of the Ground Lease and any estoppel or other agreement received from the ground lessor in favor of the Borrower, its successors and assigns, the Borrower represents and warrants that: 

(a) The Ground Lease or a memorandum regarding such Ground Lease has been duly recorded or submitted for recordation in a form that is
acceptable for recording in the applicable jurisdiction. The Ground Lease or an estoppel or other agreement received from the ground lessor permits the interest of the lessee to be encumbered by the related Mortgage and does not restrict the use of
the related Mortgaged Property by such lessee, its successors or assigns in a manner that would materially adversely affect the security provided by the related Mortgage; 

(b) Such Ground Lease may not be amended or modified, or canceled or terminated without the prior written consent of the record holder of the
Mortgage Note and any such action without such consent is not binding on the record holder of the Mortgage Note, its successors or assigns, and no such consent has been granted by the Borrower since the origination of the Mortgage Loan; 

(c) Such Ground Lease has an original term (or an original term plus one or more optional renewal terms, which, under all circumstances, may
be exercised, and will be enforceable, by either the mortgagor or the mortgagee) that extends not less than 20 years beyond the stated maturity of such maturity; 

(d) Such Ground Lease either (i) is not subject to any liens or encumbrances superior to, or of equal priority with, the Mortgage, except
for the related fee interest of the ground lessor and the Permitted Encumbrances, or (ii) is subject to a subordination, non-disturbance and attornment agreement to which the mortgagee on the lessor’s fee interest in the Mortgaged Property
is subject; 
 (e) Such Ground Lease (i) does not place commercially unreasonable restrictions on the identity of the mortgagee and
upon foreclosing on the Mortgage and (ii) is assignable (including pursuant to foreclosure) to the holder of the Senior Loan and its successors and assigns without the consent of the lessor thereunder, and in the event it is so assigned, it is
further assignable by the holder of the Senior Loan and its successors and assigns without the consent of the lessor; 
 (f) Such Ground
Lease is in full force and effect, and to Borrower’s knowledge, there is no material default under such Ground Lease and no condition that, but for the passage of time or giving of notice, would result in a material default under the terms of
such Ground Lease, and the Borrower has not received any written notice of material default under or notice of termination of such Ground Lease; 

(g) Such Ground Lease or ancillary agreement between the lessor and the lessee requires the lessor to give written notice of any default to
the lender under the Senior Loan, and provides that no notice of default or termination is effective against the lender unless such notice is given to the lender in the manner described in such Ground Lease or ancillary agreement; 

  
 E-11 

 (h) A lender is permitted a reasonable opportunity (including, where necessary, sufficient time
to gain possession of the interest of the lessee under the Ground Lease through legal proceedings) to cure any default under the Ground Lease which is curable after the lender’s receipt of notice of any default before the lessor may terminate
the Ground Lease; 
 (i) The Ground Lease does not impose any restrictions on subletting that would be viewed as commercially unreasonable
by a prudent commercial lender; 
 (j) Under the terms of the Ground Lease, an estoppel or other agreement received from the ground lessor
and the related Mortgage (taken together), any related insurance proceeds or the portion of the condemnation award allocable to the ground lessee’s interest (other than (i) de minimis amounts for minor casualties or (ii) in respect of
a total or substantially total loss or taking as addressed in clause (k) below) will be applied either to the repair or to restoration of all or part of the related Mortgaged Property with (so long as such proceeds are in excess of the
threshold amount specified in the related ELA Documents) the lender or a trustee appointed by it having the right to hold and disburse such proceeds as repair or restoration progresses, or to the payment of the outstanding principal balance of the
Senior Loan, together with any accrued interest; 
 (k) In the case of a total or substantially total taking or loss, under the terms of
such Ground Lease, an estoppel or other agreement and the related Mortgage (taken together), any related insurance proceeds, or portion of the condemnation award allocable to ground lessee’s interest in respect of a total or substantially total
loss or taking of the related Mortgaged Property to the extent not applied to restoration, will be applied first to the payment of the outstanding principal balance of the Senior Loan, together with any accrued interest; and 

(l) The ground lessor under such Ground Lease is required to enter into a new lease upon early termination of the Ground Lease for any reason,
including rejection of such Ground Lease in bankruptcy. 
 37. Due on Sale or Encumbrance. Subject to specific exceptions set forth
below, such Senior Loan contains a “due on sale” or other such provision for the acceleration of the payment of the unpaid principal balance of such Senior Loan if, without complying with the requirements of the Mortgage or loan agreement,
(a) the related Mortgaged Property, or any equity interest of greater than 50% in the related Mortgagor, is directly or indirectly pledged, transferred or sold, other than as related to (i) family and estate planning transfers or transfers
upon death or legal incapacity, (ii) transfers to certain affiliates as defined in the related ELA Documents, (iii) transfers of less than, or other than, a controlling interest in the related Mortgagor, (iv) transfers to another
holder of direct or indirect equity in the Mortgagor, a specific Person designated in the related ELA Documents or a Person satisfying specific criteria identified in the related ELA Documents, such as a qualified equityholder, (v) transfers of
stock or similar equity units in publicly traded companies, or (vi) by reason of any mezzanine debt that existed at the origination of the related Mortgage Loan, or future permitted mezzanine debt or (b) the related Mortgaged Property is
encumbered with a subordinate lien or security interest against the related Mortgaged Property, other than (i) any serviced companion loan or non-serviced companion loan or any subordinate debt that existed at origination and is permitted under
the related ELA Documents, (ii) purchase money security interests (iii) any Crossed Mortgage Loan or (iv) Permitted Encumbrances. The related Mortgage or other ELA Documents require the Mortgagor to pay all reasonable costs incurred
by the lender relative to such transfer or encumbrance. 

  
 E-12 

 38. No Material Default; Payment Record. Such Senior Loan is not more than 30 days
delinquent, without giving effect to any grace or cure period, in making required payments. There is (a) no material default, breach, violation or event of acceleration existing under such Senior Loan, or (b) no event (other than payments
due but not yet delinquent) which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a material default, breach, violation or event of acceleration, which default, breach, violation or event of
acceleration, in the case of either clause (a) or clause (b), materially and adversely affects the value of such Senior Loan or the value, use or operation of the related Mortgaged Property, provided, that this representation and
warranty does not cover any default, breach, violation or event of acceleration that specifically pertains to or arises out of an exception scheduled to any other representation and warranty made by the Borrower in this Part 1. No person other than
the holder of such Senior Loan may declare any event of default under such Senior Loan or accelerate any indebtedness under the related ELA documents. 

39. Bankruptcy. Neither the Mortgaged Property securing such Senior Loan (other than any tenants of such Mortgaged Property), nor any
portion thereof, is the subject of, and no Mortgagor, guarantor or tenant occupying a single-tenant property is a debtor in, any state or federal bankruptcy or insolvency proceeding. 

40. Organization of Mortgagor. The Mortgagor with respect to such Senior Loan is an entity organized under the laws of a state of the
United States or the District of Columbia and is a Special Purpose Entity. 
 For this purpose, a “Special Purpose Entity” shall
mean an entity, other than an individual, whose organizational documents provide substantially to the effect that it was formed or organized solely for the purpose of owning and operating one or more of the Mortgaged Properties securing the
Purchased Asset and prohibit it from engaging in any business unrelated to such Mortgaged Property or Properties, and whose organizational documents further provide, or which entity represented in the related ELA Documents, substantially to the
effect that it does not have any assets other than those related to its interest in and operation of such Mortgaged Property or Properties, or any indebtedness other than as permitted by the related Mortgage(s) or the other related ELA Documents,
that it has its own books and records and accounts separate and apart from those of any other person, and that it holds itself out as a legal entity, separate and apart from any other person or entity. 

41. Environmental Conditions. There is no material and adverse environmental condition or circumstance affecting the related Mortgaged
Property securing such Senior Loan; there is no material violation of any applicable Environmental Law with respect to the related Mortgaged Property. Neither the Borrower nor the Mortgagor on such Senior Loan has taken any actions which would cause
the related Mortgaged Property not to be in material compliance with all applicable Environmental Laws. The related ELA Documents require the borrower to materially comply with all Environmental Laws. The Mortgagor has agreed to either
(i) indemnify the mortgagee for any losses resulting from any material, adverse environmental condition or from any failure of the Mortgagor to abide by such Environmental Laws or (ii) has provided environmental insurance. 

  
 E-13 

 42. Appraisal. The Mortgaged Property securing such Senior Loan is the subject of a
Current Appraisal, and in the interim, to Borrower’s knowledge, there has been no obvious and material change in market conditions or physical aspects of the property that threaten the adequacy of the collateral since such appraisal was
prepared. For purposes of this Paragraph 42, (i) “Current Appraisal” means, on any date, an “as-is” market value appraisal prepared by an Appraiser and complying in all respects with the standards for real estate
appraisal established pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended, and the Uniform Standards for Professional Appraisal Practice (USPAP), and otherwise in the reasonable judgment of
the Administrative Agent in form and substance adequate to satisfy all legal requirements applicable to the Administrative Agent and the Lenders that is dated not more than one year prior to such date, and (ii) “Appraiser”
means an appraiser that is a Member of the Appraisal Institute and is a stated licensed or state certified appraiser (as appropriate) in the state in which such Mortgaged Property is located and who (i) was engaged directly by the originator of
the Mortgage Loan or the Borrower, or a correspondent or agent of the originator of the Mortgage Loan or the Borrower, and (ii) to Borrower’s knowledge, had no interest, direct or indirect, in the Mortgaged Property or the Mortgagor or in
any loan made on the security thereof, and whose compensation is not affected by the approval or disapproval of the Senior Loan. 
 43.
Cross-Collateralization. Such Senior Loan is not cross-collateralized or cross-defaulted with any other Mortgage Loan that is not also a Pledged Asset. 

44. Advance of Funds by the Borrower. After origination of such Senior Loan, no advance of funds has been made by the Borrower to the
related Mortgagor other than in accordance with the ELA Documents, and to Borrower’s knowledge no funds have been received from any Person other than the Mortgagor or an Affiliate for, or on account of, payments due on the Senior Loan (other
than as contemplated by the related ELA Documents, such as, by way of example and not in limitation of the foregoing, amounts paid by the tenant(s) into a lender-controlled lockbox if required or contemplated under the related lease or ELA
Documents). Neither the Borrower nor any Affiliate thereof has any obligation to make any capital contribution to the Mortgagor under such Senior Loan. 

45. Compliance with Anti-Money Laundering Laws. The Borrower has complied with all applicable anti-money laundering laws and
regulations, including without limitation the USA PATRIOT Act of 2001 and all applicable orders, rules, regulations and recommendations of the federal Office of Foreign Asset Control with respect to the origination of such Senior Loan. 

46. Sanctions. (a) None of the funds or other assets of the related Mortgagor, any guarantor or any other obligor with respect to
such Senior Loan shall constitute property of, or shall be beneficially owned, directly or indirectly, by, any individual or entity that is, or is owned or controlled by any individual or entity that is (i) currently the subject or target of
any Sanctions, (ii) included on OFAC’s List of Specially Designated Nationals, HMT’s Consolidated List of Financial Sanctions Targets and the Investment Ban List, or any similar list enforced by

  
 E-14 

 
any other relevant sanctions authority or (iii) located, organized or resident in a Designated Jurisdiction (a “Prohibited Person”), with the result that such Senior Loan is
or would be in violation of law; (b) no Prohibited Person shall have any interest of any nature whatsoever in any Mortgagor, the Borrower or any guarantor, as applicable, with the result that such Senior Loan is or would be in violation of law;
and (c) none of the funds of the Mortgagor, any guarantor or any other obligor with respect to such Senior Loan, as applicable, shall be derived from any unlawful activity with the result that such Senior Loan is or would be in violation of
law. No tenant at the Mortgaged Property relating to such Senior Loan is a Prohibited Person. 
 PART 2: REPRESENTATIONS AND WARRANTIES REGARDING
MEZZANINE LOANS 
 1. Performing First-Lien Mezzanine Loan. Such Mezzanine Loan is a performing senior mezzanine loan secured by
(or, upon such filing, recording or registration as required to perfect the relevant security interest, will be secured by) a first priority perfected security interest in 100% of the direct Equity Interest in a Person that owns commercial real
estate property (the “Property Owner”) classified as multi-tenant retail, multi-family, office, industrial or lodging or some combination of the foregoing located in one of the states of the United States or in the District of
Columbia. The related Senior Loan is a Pledged Asset. 
 2. Compliance with Laws. Such Mezzanine Loan complies in all material
respects with, or is exempt from, all applicable Legal Requirements (including all laws, rules and regulations relating to usury). Such Mezzanine Loan was originated by a lender then duly authorized and licensed to originate the Mezzanine Loan. 

3. Ownership. The Borrower is the sole legal and equitable owner and holder of such Mezzanine Loan, free and clear of all Liens (other
than Permitted Liens). Such Mezzanine Loan has been duly authorized and validly issued to the Borrower, and has been and will continue to be validly pledged or assigned to the Administrative Agent, subject to no other Liens (other than Permitted
Liens). Neither the Borrower, any of its Subsidiaries nor the directors or executive officers of the Borrower or its Subsidiaries have any ownership interest, right to acquire any ownership interest or equivalent economic interest in (a) any
property securing such Mezzanine Loan, (b) the borrower under such Mezzanine Loan (the “Mezzanine Borrower”), or (c) any other obligor on, or guarantor of such Mezzanine Loan. 

4. No Fraudulent Acts. No fraudulent acts were committed by the Borrower or any of its Affiliates in connection with its acquisition or
origination of such Senior Loan nor, to the Borrower’s knowledge, were any fraudulent acts committed by any other Person in connection with the origination of such Mezzanine Loan. 

5. Accuracy of Diligence Materials. All information contained in the related Diligence Materials (or as otherwise provided to the
Administrative Agent and the Lenders) in respect of such Mezzanine Loan is accurate and complete in all material respects. The Borrower has made available to the Administrative Agent and the Lenders for inspection, with respect to such Mezzanine
Loan, true, correct and complete copies of the ELA Documents. 

  
 E-15 

 6. Absence of Agreements. Except as included in the Due Diligence Package or by written
instruments included as ELA Documents or as otherwise permitted under this Agreement, (i) the Borrower is not a party to any document, instrument or agreement, and there is no document, instrument or agreement, that by its terms modifies or
affects materially the rights and obligations of any holder of such Mezzanine Loan or the related Senior Loan, and (ii) the Borrower has not and has not consented to any material change or waiver to any term or provision of any such document,
instrument or agreement and no such change or waiver exists. 
 7. Power to Pledge. The Borrower has, and shall continue to have, the
full right, power and authority to pledge such Mezzanine Loan under this Agreement, and such Mezzanine Loan or any related promissory note evidencing such Mezzanine Loan (a “Mezzanine Note”) has not been cancelled, satisfied or
rescinded in whole or part nor has any instrument been executed that would effect a cancellation, satisfaction or rescission thereof. No consent, approval, authorization or order of, or registration or filing with, or notice to, any court or
governmental agency or body having jurisdiction or regulatory authority or any other Person is required for any transfer, pledge or assignment of such Mezzanine Loan. 

8. ELA Documents. The Mezzanine Note, if any, is (1) payable to the order of the Borrower, (2) an “instrument”
within the meaning of Section 9-102 of the UCC of all applicable jurisdictions and (3) is denominated and payable in Dollars. The Mezzanine Loan is denominated and payable in Dollars. The Borrower has delivered to the Administrative Agent
or its designee the original Mezzanine Note(s), if any, made in respect of such Mezzanine Loan, together with an original endorsement thereof executed by the Borrower in blank. The original assignments of UCC financing statements delivered, or if
applicable, to be delivered pursuant to any Delayed Conditions, to the Administrative Agent or its designee in blank for such Mezzanine Loan, when such blanks are completed, will be in recordable form and comply with all applicable laws and
regulations governing the filing and recording of such documents. The related ELA Documents provide, or the Borrower has sent or caused to be sent a direction letter to the related Mezzanine Borrower, providing that such Mezzanine Borrower shall
make any and all payments due in connection with such Mezzanine Loan to the Servicer. 
 The Borrower has forwarded to the Custodian (or an
Acceptable Attorney pursuant to an Attorney’s Bailee Letter with delivery to the Custodian within the time period required under this Agreement) all additional original documents, including all original letters of credit issued after the Pledge
Date for a Pledged Asset, and all additional documents evidencing any assumption, modification, consolidation, extension or funding of a Pledged Asset approved in accordance with the terms of this Agreement (including in connection with any Loan
with respect to a Future Funding Amount), for the Custodian to hold for the benefit of the Administrative Agent pursuant to the Custodial Agreement. With respect to any documents which have been delivered or are being delivered to recording offices
for recording and have not been returned to the Borrower in time to permit their delivery to the Custodian (or an Acceptable Attorney pursuant to an Attorney’s Bailee Letter with delivery to the Custodian within the time period required under
this Agreement) at the time required, in lieu of delivering such original documents, the Borrower has delivered to the Custodian (or an Acceptable Attorney pursuant to an Attorney’s Bailee Letter with delivery to the Custodian within the time
period required under this Agreement) a true copy thereof with a certificate of a Responsible Officer of the Borrower certifying that such copies represent true, correct and complete copies of the originals and that such originals have been

  
 E-16 

 
submitted for recordation. The Borrower shall deliver such original documents to the Custodian promptly after receipt. Any ELA Documents not delivered to the Custodian are being held in trust by
the Borrower or its designee for the benefit of the Administrative Agent. 
 9. ELA Document Status. Each related Mezzanine Note,
guaranty, ELA Document and other agreement executed by or on behalf of the related Mezzanine Borrower, guarantor or other obligor or party, as applicable, in connection with such Mezzanine Loan has been duly executed and delivered by the parties
thereto and is the legal, valid and binding obligation of the related Mezzanine Borrower, guarantor or other obligor or party (subject to any applicable state anti-deficiency or market value limit deficiency legislation), as applicable, and is
enforceable in accordance with its terms, except (i) as such enforcement may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar laws relating to or affecting the enforcement of creditors’
rights generally or by general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law) and (ii) that certain provisions in such ELA Documents (including, without limitation, provisions
requiring the payment of default interest, late fees or prepayment/yield maintenance fees, charges and/or premiums) are, or may be, further limited or rendered unenforceable by or under applicable law, but such limitations or unenforceability will
not render such ELA Document invalid as a whole or materially interfere with the practical realization of the rights and benefits afforded thereby and/or the security provided thereby (clauses (i) and (ii), collectively, the “Standard
Qualifications”). The related Mezzanine Note and the other ELA Documents contain no provision limiting the right or ability of the Borrower to assign, transfer or convey such Mezzanine Loan to any other Person. No party to such Mezzanine
Loan or any ELA Document is in violation of any Legal Requirement if the violation would impair the collectability of the Mezzanine Loan or the performance by the related Mezzanine Borrower or any other obligor of its obligations under the Mezzanine
Note or any related ELA Document. 
 There is no valid offset, defense, counterclaim or right of rescission available to the Mezzanine Borrower with respect
to any of the related Mezzanine Notes or other ELA Documents relating to such Mezzanine Loan, including, without limitation, any such valid offset, defense, counterclaim or right based on intentional fraud by the Borrower in connection with the
origination of the Mezzanine Loan, except in each case, with respect to enforceability, the Standard Qualifications. 
 10. Document
Provisions. Pursuant to the terms of the ELA Documents with respect to such Mezzanine Loan (subject to any applicable intercreditor agreement): (a) no material terms of any related Mortgage for the related Senior Loan may be waived,
canceled, subordinated or modified in any material respect without the consent of the holder of the Mezzanine Loan; (b) the holder of the Mezzanine Loan is entitled to approve the budget of the underlying obligor as it relates to the related
Mortgaged Property; and (c) the holder of the Mezzanine Loan’s consent is required prior to the underlying obligor incurring any additional indebtedness, other than indebtedness relating to trade payables and other liabilities incurred in
the ordinary course of business. 

  
 E-17 

 11. Waivers and Modifications. Since the origination of such Mezzanine Loan and except by
written instruments included as ELA Documents or as otherwise permitted under this Agreement, (a) the material terms of any related ELA Document have not been waived, impaired, modified, altered, satisfied, canceled, subordinated or rescinded
in any respect which materially and adversely affects the value of such Senior Loan or materially interferes with the security intended to be provided by such Mortgage; (b) no related Mortgaged Property or any portion thereof has been released
from the lien of the ELA Documents for the Mezzanine Loan or the ELA Documents for the related Senior Loan; and (c) neither the related Mezzanine Borrower nor any related guarantor has been released from any of its obligations under the
Mezzanine Loan. 
 12. Assignability; Title; Encumbrances. The related Senior Loan is secured by one or more Mortgages and each such
Mortgage is a legal, valid and enforceable first lien on the related Mortgagor’s fee (or in the case of a Ground Leases, leasehold) interest in the Mortgaged Property in the principal amount of such Senior Loan subject only to the exceptions
set forth in Paragraph 9 of this Part 2 and the Title Exceptions as defined in Part 1 above. Except with respect to cross-collateralized and cross-defaulted Mezzanine Loans and the related Senior Loans, none of the Permitted Encumbrances are
mortgage liens that are senior to or pari passu with the lien of the Mortgage securing the related Senior Loan and there are no mezzanine loans secured by pledges of direct or indirect ownership interests in the Property Owner. 

13. UCC Insurance. The Borrower’s security interest in the Equity Interests of the Property Owner is covered by a UCC 9 insurance
policy and: (i) such policy is in full force and effect, (ii) all premiums thereon have been paid, (iii) no claims have been made by or on behalf of the Borrower thereunder, and (iv) no claims have been paid thereunder. The
Borrower obtained a mezzanine endorsement to the Property Owner’s “owner’s” title policy and an assignment of title proceeds in connection therewith. 

14. UCC Filings. UCC financing statements have been filed and/or recorded (or, if not filed and/or recorded, have been submitted in
proper form for filing and recording), in all public places necessary to perfect a valid security interest in all items of collateral for such Mezzanine Loan, to the extent perfection may be effected pursuant to applicable law by recording or
filing, as the case may be, and the ELA Documents related to and delivered in connection with such Mezzanine Loan establish and create a valid and enforceable lien and priority security interest on such items of personalty except as such enforcement
may be limited by the Standard Qualifications. Notwithstanding any of the foregoing, no representation is made as to the perfection of any security interest in rents or other personal property to the extent that possession or control of such items
or actions other than the filing of UCC financing statements are required in order to effect such perfection. 
 15. Condition of
Property. As of any date of determination, each related Mortgaged Property was inspected by or on behalf of the Borrower during the 12 month period ending on such date and, to the Borrower’s knowledge, based solely upon due diligence
customarily performed in connection with the origination of comparable mortgage loans, is free and clear of any material damage (other than (i) deferred maintenance for which escrows were established at origination and (ii) any damage
fully covered by insurance) that would affect materially and adversely the use or value of such Mortgaged Property. 

  
 E-18 

 16. Taxes and Assessments. All taxes, governmental assessments and other outstanding
governmental charges (including, without limitation, water and sewage charges), or installments thereof, which could be a lien on the related Mortgaged Property that would be of equal or superior priority to the lien on the related Mortgage and that
have become delinquent in respect of each related Mortgaged Property have been paid, or an escrow of funds has been established in an amount sufficient to cover such payments and reasonably estimated interest and penalties, if any, thereon. For
purposes of this representation and warranty, real estate taxes and governmental assessments and other outstanding governmental charges and installments thereof shall not be considered delinquent until the earlier of (a) the date on which
interest and/or penalties would first be payable thereon and (b) the date on which enforcement action is entitled to be taken by the related taxing authority. 

17. Condemnation. There is no proceeding pending, and, to Borrower’s knowledge, there is no proceeding threatened, for the total
or partial condemnation of such Mortgaged Property that would have a material adverse effect on the value, use or operation of the Mortgaged Property. 

18. No Holdbacks. Such Mezzanine Loan is presently outstanding, the proceeds thereof have been fully and properly disbursed and unless
such Mezzanine Loan is a Future Funding Pledged Asset, there is no requirement for any future advances thereunder. 
 19. Insurance.
The Mezzanine Borrower maintains insurance coverage with respect to the Mortgaged Property in compliance in all material respects with the requirements under the ELA Documents and/or any Mortgage with respect thereto and Paragraph 22 of Part 1.

 20. Flood Insurance. The improvements located on the related Mortgaged Property are either not located in a federally designated
special flood hazard area or, if so located, the Property Owner is required to maintain or the mortgagee maintains, a flood insurance policy with respect to such improvements and such policy is in full force and effect in an amount no less than the
lesser of (i) the original principal balance of the related Mortgage Loans, (ii) the value of such improvements on the related Mortgaged Property located in such flood hazard area or (iii) the maximum allowed under the related federal
flood insurance program. 
 21. Access; Utilities; Separate Tax Lots. To Borrower’s knowledge, based solely upon the
Borrower’s review of the related Title Policy and current surveys obtained in connection with origination, the related Mortgaged Property (a) is located on or adjacent to a public road and has direct legal access to such road, or has
access via an irrevocable easement or irrevocable right of way permitting ingress and egress to/from a public road, (b) is served by or has uninhibited access rights to public or private water and sewer (or well and septic) and all required
utilities, all of which are appropriate for the current use of the Mortgaged Property, and (c) constitutes one or more separate tax parcels which do not include any property that is not part of the Mortgaged Property or is subject to an
endorsement under the related Title Policy insuring the Mortgaged Property. 
 22. No Encroachments. To the Borrower’s
knowledge, based solely on current surveys obtained in connection with the origination of such Mezzanine Loan and the lender’s Title Policy (or, if such policy is not yet issued, a pro forma title policy, a preliminary title policy with escrow
instructions or a “marked up” commitment) obtained in connection with the origination of such Mezzanine Loan (a) none of the material improvements that were included 

  
 E-19 

 
for the purpose of determining the appraised value of any Mortgaged Property related to such Mezzanine Loan at the time of origination are outside of the boundaries or building restriction lines
of such Mortgaged Property, except encroachments that do not materially and adversely affect the value or current use of such Mortgaged Property or for which insurance or endorsements were obtained under the Title Policy (b) no improvements on
adjoining parcels encroach onto the related Mortgaged Property except for encroachments that do not materially and adversely affect the value or current use of such Mortgaged Property or for which insurance or endorsements were obtained under the
Title Policy and (c) no improvements encroach upon any easements except for encroachments the removal of which would not materially and adversely affect the value or current use of such Mortgaged Property or for which insurance or endorsements
obtained with respect to the Title Policy. 
 23. No Contingent Interest or Equity Participation. Such Mezzanine Loan is a whole loan
and does not have any shared appreciation feature, any other contingent or additional interest feature or a negative amortization or an equity participation by the Borrower. The Borrower holds no preferred equity interest in the direct or indirect
owner of the Mortgaged Property. 
 24. Authorized to do Business. To the extent required under applicable law as of the date of
origination, and as necessary for the enforceability or collectability of such Mezzanine Loan, the originator and each other holder of the related Mezzanine Note was authorized to transact and do business in the jurisdiction in which each related
Mortgaged Property is located , or the failure to be so authorized does not materially or adversely affect the enforcement of such Mezzanine Loan by such holder of the related Mezzanine Note. 

25. Local Law Compliance. There are no material violations of any applicable zoning ordinances, building codes or land laws applicable
to any related Mortgaged Property or the use and occupancy thereof which (i) are not insured by an ALTA lender’s title insurance policy (or a binding commitment therefor), or its equivalent as adopted in the applicable jurisdiction, or a
law and ordinance insurance policy or (ii) would have a material adverse effect on the value, operation or operating income of such Mortgaged Property. The ELA Documents require the related Mortgaged Property to comply in all material respects
with all applicable laws and ordinances. 
 26. Licenses and Permits. The Property Owner, the related Mortgagor of the related Senior
Loan, the related lessee, franchisor or operator is in possession of all material licenses, permits and authorizations required for use of the related Mortgaged Property by such Mortgagor and all such material licenses, permits and authorizations
are in effect. The related ELA Documents require the Property Owner to keep all material licenses, permits and authorizations necessary for its operation of the Mortgaged Property in full force and effect and to be qualified to do business in the
jurisdiction in which the related Mortgaged Property is located. 
 27. Recourse Obligations. The ELA Documents for such Mezzanine
Loan provide that such Mezzanine Loan (a) becomes full recourse to the related Mezzanine Borrower or guarantor (which is a natural person or persons, or an entity distinct from the Mortgagor (but may be affiliated with the Mezzanine Borrower)
that has assets other than equity in the related Mortgaged Property that are not de minimis) in any of the following events: (i) if any voluntary 

  
 E-20 

 
petition for bankruptcy, insolvency, dissolution or liquidation pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed by the Mezzanine Borrower; (ii) the
Mezzanine Borrower or guarantor shall have colluded with (or, alternatively, solicited or caused to be solicited) other creditors to cause an involuntary bankruptcy filing with respect to the Mezzanine Borrower or (iii) voluntary transfers of
either the Mortgaged Property or equity interests in the Mezzanine Borrower made in violation of the ELA Documents; and (b) contains provisions providing for recourse against the Mezzanine Borrower or guarantor (which is a natural person or
persons, or an entity distinct from the Mezzanine Borrower (but may be affiliated with the Mezzanine Borrower) that has assets other than equity in the related Mortgaged Property that are not de minimis), for losses and damages sustained by reason
of the Mezzanine Borrower’s (i) misappropriation of rents after the occurrence of an event of default under the Mezzanine Loan; (ii) misappropriation of (A) insurance proceeds or condemnation awards or (B) security deposits
or, alternatively, the failure of any security deposits to be delivered to the lender under such Mezzanine Loan upon foreclosure or action in lieu thereof (except to the extent applied in accordance with leases prior to a Senior Loan event of
default); (iii) fraud or intentional material misrepresentation; (iv) breaches of the environmental covenants in the related ELA Documents; or (v) commission of intentional material physical waste at the related Mortgaged Property.

 28. Financial Reporting and Rent Rolls. The ELA Documents with respect to such Mezzanine Loan require the Mezzanine Borrower to
provide the owner or holder of the Mezzanine Loan with quarterly and annual operating statements, and quarterly rent rolls for properties that have leases contributing more than 5% of the in-place base rent and annual financial statements, which
annual financial statements with respect to such Mezzanine Loan with more than one mortgagor are in the form of an annual combined balance sheet of the Mezzanine Borrower entities (and no other entities), together with the related combined
statements of operations, members’ capital and cash flows, including a combining balance sheet and statement of income for the Mortgaged Properties on a combined basis. 

29. Interest Rate. Either (A) such Mezzanine Loan bears interest at a rate that remains fixed throughout the remaining term of
such Mezzanine Loan, except in the case of situations where default interest is imposed or (B) such Mezzanine Loan bears interest at a floating rate equal to the sum of (x) LIBOR or the Federal Funds Rate plus (y) a fixed number of
basis points throughout the remaining term of the Mezzanine Loan except in situations where default interest may be imposed. The interest rate (exclusive of any default interest, late charges, yield maintenance charges, or prepayment premiums) of
such Senior Loan complied as of the date of origination with, or was exempt from, applicable state or federal laws, regulations and other requirements pertaining to usury. 

30. Ground Leases. If the related Mortgaged Property consists of a Ground Lease, the ground lessor consented to and acknowledged that
(i) the Mezzanine Loan is permitted/approved, (ii) any foreclosure of the Mezzanine Loan and related change in ownership of the ground lessee will not require the consent of the ground lessor or constitute a default under the Ground Lease
(iii) copies of default notices will be sent to the lender under the Mezzanine Loan and (iv) it would accept cure from the lender under the Mezzanine Loan on behalf of the ground lessee. 

  
 E-21 

 31. Due on Sale or Encumbrance. The ELA Documents with respect to such Mezzanine Loan
provide for the acceleration of the payment of the unpaid principal balance of the Mezzanine Loan if (a) the Mezzanine Borrower voluntarily transfers or encumbers all or any portion of any related collateral pledged in request of such Mezzanine
Loan or (ii) any direct or indirect interest in the Mezzanine Borrower is voluntarily transferred or assigned, other than, in each case, as permitted under the terms and conditions of the related ELA Documents. 

32. No Material Default; Payment Record. Such Mezzanine Loan is not more than 30 days delinquent, without giving effect to any grace or
cure period, in making required payments. There is (a) no material default, breach, violation or event of acceleration existing under such Mezzanine Loan, or (b) no event (other than payments due but not yet delinquent) which, with the
passage of time or with notice and the expiration of any grace or cure period, would constitute a material default, breach, violation or event of acceleration, which default, breach, violation or event of acceleration, in the case of either clause
(a) or clause (b), materially and adversely affects the value of such Mezzanine Loan or the value, use or operation of the related Mortgaged Property, provided, that this representation and warranty does not cover any default, breach,
violation or event of acceleration that specifically pertains to or arises out of an exception scheduled to any other representation and warranty made by the Borrower in this Part 2. No person other than the holder of such Mezzanine Loan may declare
any event of default under such Mezzanine Loan or accelerate any indebtedness under the related ELA documents. 
 33. Bankruptcy.
Neither the Mezzanine Borrower nor the Property Owner is a debtor in, any state or federal bankruptcy or insolvency proceeding. 
 34.
Organization of Mezzanine Borrower. The Mezzanine Borrower with respect to such Mezzanine Loan is an entity organized under the laws of a state of the United States or the District of Columbia and is a Special Purpose Entity. 

For this purpose, a “Special Purpose Entity” shall mean an entity, other than an individual, whose organizational documents provide
substantially to the effect that it was formed or organized solely for the purpose of owning a special purpose entity that was formed or organized solely for the purpose of owning and operating one or more of the Mortgaged Properties securing the
Purchased Asset and prohibit it from engaging in any business unrelated to the ownership of such special purpose entity, and whose organizational documents further provide, or which entity represented in the related ELA Documents, substantially to
the effect that it does not have any assets other than those related to its interest in and operation of such the ownership of such special purpose entity, or any indebtedness other than as permitted by the related Mezzanine Loan or the other
related ELA Documents, that it has its own books and records and accounts separate and apart from those of any other person, and that it holds itself out as a legal entity, separate and apart from any other person or entity. 

35. Environmental Conditions. There is no material and adverse environmental condition or circumstance affecting the related Mortgaged
Property securing such Senior Loan; there is no material violation of any applicable Environmental Law with respect to the related Mortgaged Property. Neither the Borrower, the Mezzanine Borrower nor the Mortgagor on the related Senior Loan has
taken any actions which would cause the related Mortgaged Property not to be in material compliance with all applicable Environmental Laws. The related ELA 

  
 E-22 

 
Documents require the borrower to materially comply with all Environmental Laws. The Mortgagor has agreed to either (i) indemnify the holder of the Mezzanine Loan for any losses resulting
from any material, adverse environmental condition or from any failure of the Mezzanine Borrower or the Mortgagor to abide by such Environmental Laws or (ii) has provided environmental insurance. 

36. Appraisal. The related Mortgaged Property is the subject of a Current Appraisal, and, in the interim, to Borrower’s knowledge,
there has been no obvious and material change in market conditions or physical aspects of the property that threaten the adequacy of the collateral since such appraisal was prepared. For purposes of this Paragraph 42, (i) “Current
Appraisal” means, on any date, an “as-is” market value appraisal prepared by an Appraiser and complying in all respects with the standards for real estate appraisal established pursuant to Title XI of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989, as amended, and the Uniform Standards for Professional Appraisal Practice (USPAP), and otherwise in the reasonable judgment of the Administrative Agent in form and substance adequate to satisfy all
legal requirements applicable to the Administrative Agent and the Lenders that is dated not more than one year prior to such date, and (ii) “Appraiser” means an appraiser that is a Member of the Appraisal Institute and is a
stated licensed or state certified appraiser (as appropriate) in the state in which such Mortgaged Property is located and who (i) was engaged directly by the originator of the Mortgage Loan or the Borrower, or a correspondent or agent of the
originator of the Mortgage Loan or the Borrower, and (ii) to Borrower’s knowledge, had no interest, direct or indirect, in the Mortgaged Property, the Property Owner or the Mezzanine Borrower or in any loan made on the security thereof,
and whose compensation is not affected by the approval or disapproval of the Mortgage Loan. 
 37. Cross-Collateralization. Such
Mezzanine Loan is not cross-collateralized or cross-defaulted with any other Mortgage Loan that is not also a Pledged Asset. 
 38.
Advance of Funds by the Borrower. After origination of such Mezzanine Loan, no advance of funds has been made by the Borrower to the related Mezzanine Borrower other than in accordance with the ELA Documents, and, to Borrower’s
knowledge, no funds have been received from any Person other than the Mezzanine Borrower or an Affiliate for, or on account of, payments due on the Mezzanine Loan (other than as contemplated by the related ELA Documents, such as, by way of example
and not in limitation of the foregoing, amounts paid by the tenant(s) into a lender-controlled lockbox if required or contemplated under the related lease or ELA Documents). Neither the Borrower nor any Affiliate thereof has any obligation to make
any capital contribution to the Mezzanine Borrower under such Mezzanine Loan. 
 39. Compliance with Anti-Money Laundering Laws. The
Borrower has complied with all applicable anti-money laundering laws and regulations, including without limitation the USA PATRIOT Act of 2001 and all applicable orders, rules, regulations and recommendations of the federal Office of Foreign Asset
Control with respect to the origination of such Mezzanine Loan. 

  
 E-23 

 40. Sanctions. (a) None of the funds or other assets of the related Mezzanine
Borrower, any guarantor or any other obligor with respect to such Mezzanine Loan shall constitute property of, or shall be beneficially owned, directly or indirectly, by, any individual or entity that is, or is owned or controlled by any individual
or entity that is (i) currently the subject or target of any Sanctions, (ii) included on OFAC’s List of Specially Designated Nationals, HMT’s Consolidated List of Financial Sanctions Targets and the Investment Ban List, or any
similar list enforced by any other relevant sanctions authority or (iii) located, organized or resident in a Designated Jurisdiction, with the result that such Mezzanine Loan is or would be in violation of law; (b) no Prohibited Person
shall have any interest of any nature whatsoever in the Mezzanine Borrower, the Borrower or any guarantor, as applicable, with the result that such Senior Loan is or would be in violation of law; and (c) none of the funds of the Mortgagor, any
guarantor or any other obligor with respect to such Senior Loan, as applicable, shall be derived from any unlawful activity with the result that such Senior Loan is or would be in violation of law. No tenant at the Mortgaged Property relating to
such Senior Loan is a Prohibited Person. 
 41. Not a Security. Such Mezzanine Loan has not been and shall not be deemed to be a
“Security” within the meaning of the Securities Act of 1933, as amended or the Securities Exchange Act of 1934, as amended. 
 PART 3:
REPRESENTATIONS AND WARRANTIES REGARDING PARTICIPATION INTERESTS 
 1. Participation Interest. Such Participation Interest is a
senior participation interest in a Senior Loan. 
 2. Related Senior Loan. The Senior Loan related to such Participation Interest is
a performing mortgage loan secured by (or, upon such filing, recording or registration as required to perfect the relevant security interest, will be secured by) a first priority perfected security interest in a commercial real estate property
classified as multi-tenant retail, multi-family, office, industrial or lodging or some combination of the foregoing located in one of the states of the United States or in the District of Columbia. Such Senior Loan is a whole loan. 

3. Compliance with Laws. Such Participation Interest and the related Senior Loan comply in all material respects with, or are exempt
from, all applicable Legal Requirements (including all laws, rules and regulations relating to usury). 
 4. Ownership. The Borrower
is the sole legal and equitable owner and holder of such Participation Interest, free and clear of all Liens (other than Permitted Liens). Such Participation Interest has been duly authorized and validly issued to the Borrower, and has been and will
continue to be validly pledged or assigned to the Administrative Agent, subject to no other Liens (other than Permitted Liens). Neither the Borrower, any of its Subsidiaries nor the directors or executive officers of the Borrower or its Subsidiaries
have any ownership interest, right to acquire any ownership interest or equivalent economic interest in (a) any property securing the related Senior Loan, (b) the Mortgagor under such Senior Loan, or (c) any other obligor on, or
guarantor of, any related Mortgage Note. 
 5. No Fraudulent Acts. No fraudulent acts were committed by the Borrower or any of its
Affiliates in connection with its acquisition or origination of such Participation Interest nor, to the Borrower’s knowledge, were any fraudulent acts committed by any other Person in connection with the origination of such Participation
Interest or the related Senior Loan. 

  
 E-24 

 6. Accuracy of Diligence Materials. All information contained in the related Diligence
Materials (or as otherwise provided to the Administrative Agent and the Lenders) in respect of such Participation Interest and the related Senior Loan is accurate and complete in all material respects. The Borrower has made available to the
Administrative Agent and the Lenders for inspection, with respect to such Participation Interest and the related Senior Loan, true, correct and complete copies of the ELA Documents. 

7. Absence of Agreements. Except as included in the Due Diligence Package or by written instruments included as ELA Documents or as
otherwise permitted under this Agreement, (i) the Borrower is not a party to any document, instrument or agreement, and there is no document, instrument or agreement, that by its terms modifies or affects materially the rights and obligations
of any holder of such Participation Interest, and (ii) the Borrower has not and has not consented to any material change or waiver to any term or provision of any such document, instrument or agreement and no such change or waiver exists. 

8. Power to Pledge. The Borrower has, and shall continue to have, the full right, power and authority to pledge such Participation
Interest under this Agreement, and such Participation Interest and the related Senior Loan or any related Mortgage Note has not been cancelled, satisfied or rescinded in whole or part nor has any instrument been executed that would effect a
cancellation, satisfaction or rescission thereof. No consent, approval, authorization or order of, or registration or filing with, or notice to, any court or governmental agency or body having jurisdiction or regulatory authority or any other Person
is required for any transfer, pledge or assignment of such Participation Interest. 
 9. ELA Documents. The Borrower has delivered to
the Administrative Agent or its designee the certificate relating to such Participation Interest, however denominated, together with an original assignment thereof executed by the Borrower in blank. 

The Borrower has forwarded to the Custodian (or an Acceptable Attorney pursuant to an Attorney’s Bailee Letter with delivery to the
Custodian within the time period required under this Agreement) all additional original documents, including all original letters of credit issued after the Pledge Date for a Pledged Asset, and all additional documents evidencing any assumption,
modification, consolidation, extension or funding of a Pledged Asset approved in accordance with the terms of this Agreement (including in connection with any Loan with respect to a Future Funding Amount), for the Custodian to hold for the benefit
of the Administrative Agent pursuant to the Custodial Agreement. With respect to any documents which have been delivered or are being delivered to recording offices for recording and have not been returned to the Borrower in time to permit their
delivery to the Custodian (or an Acceptable Attorney pursuant to an Attorney’s Bailee Letter with delivery to the Custodian within the time period required under this Agreement) at the time required, in lieu of delivering such original
documents, the Borrower has delivered to the Custodian (or an Acceptable Attorney pursuant to an Attorney’s Bailee Letter with delivery to the Custodian within the time period required under this Agreement) a true copy thereof with a
certificate of a Responsible Officer of the Borrower certifying that such copies represent true, correct and complete copies of the originals and that such originals have been submitted for recordation. The Borrower shall deliver such original
documents to the Custodian promptly after receipt. Any ELA Documents not delivered to the Custodian are being held in trust by the Borrower or its designee for the benefit of the Administrative Agent. 

  
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 10. ELA Document Status. With respect to such Participation Interest and the related
Senior Loan, each related Mortgage Note, Mortgage, assignment of leases (if a separate instrument), guaranty, ELA Document and other agreement executed by or on behalf of the related Mortgagor, guarantor or other obligor or party, as applicable, in
connection with such Participation Interest and the related Senior Loan has been duly executed and delivered by the parties thereto and is the legal, valid and binding obligation of the related Mortgagor, guarantor or other obligor or party (subject
to any applicable state anti-deficiency or market value limit deficiency legislation), as applicable, and is enforceable in accordance with its terms, except (i) as such enforcement may be limited by bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium or other similar laws relating to or affecting the enforcement of creditors’ rights generally or by general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at
law) and (ii) that certain provisions in such ELA Documents (including, without limitation, provisions requiring the payment of default interest, late fees or prepayment/yield maintenance fees, charges and/or premiums) are, or may be, further
limited or rendered unenforceable by or under applicable law, but such limitations or unenforceability will not render such ELA Document invalid as a whole or materially interfere with the practical realization of the rights and benefits afforded
thereby and/or the security provided thereby (clauses (i) and (ii), collectively, the “Standard Qualifications”). The related Mortgage Note, Mortgage participation agreement and participation certificate contain no provision
limiting the right or ability of any holder thereof to assign, transfer or convey all or any portion of the related Senior Loan or the related Participation Interest to any other Person. With respect to any Mortgaged Property that has tenants, there
exists as either part of the Mortgage or as a separate document, an assignment of leases. No party to such Senior Loan or any ELA Document is in violation of any Legal Requirement if the violation would impair the collectability of the Participation
Interest or the related Senior Loan or the performance by the related Mortgagor or any other obligor of its obligations under the related Mortgage Note or any related ELA Document. The related ELA Documents provide, or the Borrower has sent or
caused to be sent a direction letter to the related Mortgagor, providing that such Mortgagor shall make any and all payments due in connection with such Participation Interest to the Servicer. 

With respect to the Participation Interest and the related Senior Loan, there is no valid offset, defense, counterclaim or right of rescission available with
respect to any of the related Mortgage Notes, Mortgages or other ELA Documents, except in each case, with respect to enforceability, the Standard Qualifications. 

11. Mortgage Provisions. With respect to the related Senior Loan, the ELA Documents contain provisions comparable to those customary
for loans secured by mortgaged properties similarly situated that render the rights and remedies of the holder thereof adequate for the practical realization against the Mortgaged Property of the principal benefits of the security intended to be
provided thereby, including realization by judicial or, if applicable, non-judicial foreclosure subject to the Standard Qualifications. 

12. Waivers and Modifications. Since the origination of the related Senior Loan and except by written instruments included as ELA
Documents or as otherwise permitted under this Agreement, (a) the material terms of any related Mortgage, Mortgage Note, guaranty, and any other related ELA Documents have not been waived, impaired, modified, altered, satisfied, canceled,
subordinated or rescinded in any respect which materially and adversely affects the 

  
 E-26 

 
value of such Senior Loan or materially interferes with the security intended to be provided by such Mortgage or other ELA Document; (b) no related Mortgaged Property or any portion thereof
has been released from the lien of the related Mortgage; and (c) neither the related Mortgagor nor any related guarantor has been released from any of its obligations under the related Senior Loan. 

13. Title; Encumbrances. The related Senior Loan is secured by one or more Mortgages and each such Mortgage is a legal, valid and
enforceable first lien on the related Mortgagor’s fee (or in the case of a Ground Leases, leasehold) interest in the Mortgaged Property in the principal amount of such Senior Loan subject only to the exceptions set forth in Paragraph 9 of this
Part 3 and the Title Exceptions as defined in Part 1 above. Except with respect to cross-collateralized and cross-defaulted related Senior Loans, none of the Permitted Encumbrances are mortgage liens that are senior to or pari passu with the lien of
the Mortgage securing the related Senior Loan and there are no mezzanine loans secured by pledges of direct or indirect ownership interests in the Mortgagor. The related Mortgaged Property is free and clear of any recorded mechanics’ liens,
recorded materialmen’s liens and other recorded encumbrances which are prior to or equal with the lien of the related Mortgage, except those which are bonded over, escrowed for or insured against by the related Title Policy and, subject to the
rights of tenants (as tenants only) (subject to and excepting Permitted Encumbrances and the Title Exceptions), no rights exist which under law could give rise to any such lien or encumbrance that would be prior to or equal with the lien of the
related Mortgage, except those which are bonded over, escrowed for or insured against by a lender’s title insurance policy. 
 14.
Title Insurance. Each Mortgaged Property securing the related Senior Loan is covered by a Title Policy in the original principal amount of such Senior Loan (or with respect to a Senior Loan secured by multiple properties, an amount equal to
at least the allocated loan amount with respect to the Title Policy for each such property) after all advances of principal (including any advances held in escrow or reserves), that insures for the benefit of the owner of the indebtedness secured by
the Mortgage and its successors and assigns as the named insured of such policy, the first priority lien of the Mortgage, which lien is subject only to Permitted Encumbrances. Such Title Policy (or, if it has yet to be issued, the coverage to be
provided thereby) is assignable without consent of the insurer, is in full force and effect, all premiums thereon have been paid, no claims have been made by the Borrower thereunder and no claims have been paid thereunder. Neither the Borrower nor,
to the Borrower’s knowledge, any other holder of such Senior Loan, has done, by act or omission, anything that would materially impair the coverage under such Title Policy. The insurer issuing such Title Policy is (x) a
nationally-recognized title insurance company and (y) qualified to do business in the jurisdiction in which the related Mortgaged Property is located to the extent required. 

15. Junior Liens. Except for any Crossed Mortgage Loans, there are no subordinate mortgages or junior liens securing the payment of
money encumbering the related Mortgaged Property (other than Permitted Encumbrances and Title Exceptions, mechanics’ and materialmen’s liens (which are the subject of the representation in Paragraph 13 of this Part 3)). None of the ELA
Documents permits the related Mortgaged Property to be encumbered without the prior written consent of the holder of the related Senior Loan, by any lien securing the payment of money junior to or of equal priority with, or superior to, the lien of
the related Mortgage (other than contested taxes, assessments and mechanic’s and materialmen’s liens that become due after the Pledge Date of such Participation Interest). 

  
 E-27 

 16. UCC Filings. UCC financing statements have been filed and/or recorded (or, if not
filed and/or recorded, have been submitted in proper form for filing and recording), in all public places necessary to perfect a valid security interest in all items of personal property located on the related Mortgaged Property that are owned by
the Mortgagor and either (i) are reasonably necessary to operate such Mortgaged Property or (ii) are (as indicated in the related appraisal) material to the value of the Mortgaged Property (other than any personal property subject to a
purchase money security interest or a sale and leaseback financing arrangement permitted under the terms of the related ELA Documents or any other personal property leases applicable to such personal property) (other than any non-material personal
property, any personal property subject to a purchase money security interest, a sale and leaseback financing arrangement as permitted under the terms of the related ELA Documents or any other personal property leases applicable to such personal
property), to the extent perfection may be effected pursuant to applicable law by recording or filing, as the case may be, and the Mortgages, security agreements, chattel mortgages or equivalent documents related to and delivered in connection with
such Senior Loan establish and create a valid and enforceable lien and priority security interest on such items of personalty except as such enforcement may be limited by the Standard Qualifications. Notwithstanding any of the foregoing, no
representation is made as to the perfection of any security interest in rents or other personal property to the extent that possession or control of such items or actions other than the filing of UCC financing statements are required in order to
effect such perfection. 
 17. Condition of Property. As of any date of determination, each related Mortgaged Property was inspected
by or on behalf of the Borrower during the 12 month period ending on such date and, to the Borrower’s knowledge, based solely upon due diligence customarily performed in connection with the origination of comparable mortgage loans, is free and
clear of any material damage (other than (i) deferred maintenance for which escrows were established at origination and (ii) any damage fully covered by insurance) that would affect materially and adversely the use or value of such
Mortgaged Property as security for the Senior Loan. 
 18. Taxes and Assessments. All taxes, governmental assessments and other
outstanding governmental charges (including, without limitation, water and sewage charges), or installments thereof, which could be a lien on the related Mortgaged Property that would be of equal or superior priority to the lien on the related
Mortgage and that have become delinquent in respect of each related Mortgaged Property have been paid, or an escrow of funds has been established in an amount sufficient to cover such payments and reasonably estimated interest and penalties, if any,
thereon. For purposes of this representation and warranty, real estate taxes and governmental assessments and other outstanding governmental charges and installments thereof shall not be considered delinquent until the earlier of (a) the date
on which interest and/or penalties would first be payable thereon and (b) the date on which enforcement action is entitled to be taken by the related taxing authority. 

19. Condemnation. There is no proceeding pending, and, to Borrower’s knowledge, there is no proceeding threatened, for the total
or partial condemnation of such Mortgaged Property that would have a material adverse effect on the value, use or operation of the Mortgaged Property. 

  
 E-28 

 20. Actions Concerning Senior Loan. With respect to the related Senior Loan, there is not
pending or filed, and to Borrower’s knowledge, there is not threatened, any action, suit or proceeding, arbitration or governmental investigation involving any Mortgagor, guarantor, or the Mortgaged Property, an adverse outcome of which would
reasonably be expected to materially and adversely affect (a) such Mortgagor’s title to the Mortgaged Property, (b) the validity or enforceability of the Mortgage, (c) such Mortgagor’s ability to perform under the related
ELA Documents, including, without limitation, such Mortgagor’s ability to pay principal, interest or any other amounts due under the related Senior Loan or the security intended to be provided by the ELA Documents relating to the related Senior
Loan or the use of the related Mortgaged Property, (d) such guarantor’s ability to perform under the related guaranty, (e) the use, operation or value of the Mortgaged Property, (f) the principal benefit of the security intended
to be provided by the ELA Documents, (g) the ability of the Mortgaged Property to generate net cash flow sufficient to service such Pledged Asset or (h) the current principal use of the Mortgaged Property. 

21. No Holdbacks. The related Senior Loan is presently outstanding, the proceeds thereof have been fully and properly disbursed. 

22. Insurance. With respect to the Participation Interest and the related Senior Loan, the related Mortgagor maintains insurance
coverage with respect to the Mortgaged Property in compliance in all material respects with the requirements under the ELA Documents and/or any Mortgage with respect thereto and Paragraph 22 of Part 1. 

23. Flood Insurance. The improvements located on the Mortgaged Property securing such Senior Loan are either not located in a federally
designated special flood hazard area or, if so located, the related Mortgagor is required pursuant to the ELA Documents to maintain or the mortgagee maintains, a flood insurance policy with respect to such improvements and such policy is in full
force and effect in an amount no less than the lesser of (i) the original principal balance of the related Senior Loan, (ii) the value of such improvements on the related Mortgaged Property located in such flood hazard area or
(iii) the maximum allowed under the related federal flood insurance program. 
 24. Access; Utilities; Separate Tax Lots. With
respect to the related Senior Loan, to Borrower’s knowledge, based solely upon the Borrower’s review of the related Title Policy and current surveys obtained in connection with origination, with respect to the related Senior Loan, each
Mortgaged Property related to such Senior Loan (a) is located on or adjacent to a public road and has direct legal access to such road, or has access via an irrevocable easement or irrevocable right of way permitting ingress and egress to/from
a public road, (b) is served by or has uninhibited access rights to public or private water and sewer (or well and septic) and all required utilities, all of which are appropriate for the current use of the Mortgaged Property, and
(c) constitutes one or more separate tax parcels which do not include any property that is not part of the Mortgaged Property or is subject to an endorsement under the related Title Policy insuring the Mortgaged Property. 

  
 E-29 

 25. No Encroachments. To the Borrower’s knowledge, based solely on current surveys
obtained in connection with the origination of such Senior Loan related to such Participation Interest, and the lender’s Title Policy (or, if such policy is not yet issued, a pro forma title policy, a preliminary title policy with escrow
instructions or a “marked up” commitment) obtained in connection with the origination of such Senior Loan, (a) none of the material improvements that were included for the purpose of determining the appraised value of any Mortgaged
Property securing such Senior Loan at the time of origination are outside of the boundaries or building restriction lines of such Mortgaged Property, except encroachments that do not materially and adversely affect the value or current use of such
Mortgaged Property or for which insurance or endorsements were obtained under the Title Policy (b) no improvements on adjoining parcels encroach onto the related Mortgaged Property except for encroachments that do not materially and adversely
affect the value or current use of such Mortgaged Property or for which insurance or endorsements were obtained under the Title Policy and (c) no improvements encroach upon any easements except for encroachments the removal of which would not
materially and adversely affect the value or current use of such Mortgaged Property or for which insurance or endorsements obtained with respect to the Title Policy. 

26. No Contingent Interest or Equity Participation. Except for the Participation Interest, the related Senior Loan is a whole loan and
does not have any shared appreciation feature, any other contingent or additional interest feature or a negative amortization or an equity participation by the Borrower. The Borrower holds no preferred equity interest in the direct or indirect owner
of the Mortgaged Property securing such Senior Loan. 
 27. REMIC. The related Senior Loan is not REMIC eligible. 

28. Authorized to do Business. With respect to the Senior Loan related to such Participation Interest, to the extent required under
applicable law as of the date of origination, and as necessary for the enforceability or collectability of such related Senior Loan, the originator and each other holder of such related Mortgage Note was authorized to transact and do business in the
jurisdiction in which each related Mortgaged Property is located , or the failure to be so authorized does not materially or adversely affect the enforcement of such Senior Loan by such holder of such related Mortgage Note. 

29. Trustee under Deed of Trust. With respect to the related Senior Loan, if the related Mortgage is a deed of trust, a trustee, duly
qualified under applicable law to serve as such, serves and is named in the deed of trust or has been substituted in accordance with such Mortgage and applicable law or may be substituted in accordance with such Mortgage and applicable law by the
related mortgagee. 
 30. Local Law Compliance. With respect to the related Senior Loan, there are no material violations of any
applicable zoning ordinances, building codes or land laws applicable to any related Mortgaged Property or the use and occupancy thereof which (i) are not insured by an ALTA lender’s title insurance policy (or a binding commitment
therefor), or its equivalent as adopted in the applicable jurisdiction, or a law and ordinance insurance policy or (ii) would have a material adverse effect on the value, operation or operating income of such Mortgaged Property or the security
interest in such Mortgaged Property intended to be provided by the Mortgage securing such Senior Loan. The ELA Documents require the related Mortgaged Property to comply in all material respects with all applicable laws and ordinances. 

  
 E-30 

 31. Licenses and Permits. The Mortgagor of the related Senior Loan, the related lessee,
franchisor or operator is in possession of all material licenses, permits and authorizations required for use of the related Mortgaged Property by such Mortgagor and all such material licenses, permits and authorizations are in effect. The related
ELA Documents require the Mortgagor to keep all material licenses, permits and authorizations necessary for its operation of the Mortgaged Property in full force and effect and to be qualified to do business in the jurisdiction in which the related
Mortgaged Property is located. 
 32. Recourse Obligations. The ELA Documents for the related Senior Loan provide that such Senior
Loan (a) becomes full recourse to the related Mortgagor or guarantor (which is a natural person or persons, or an entity distinct from the Mortgagor (but may be affiliated with the Mortgagor) that has assets other than equity in the related
Mortgaged Property that are not de minimis) in any of the following events: (i) if any voluntary petition for bankruptcy, insolvency, dissolution or liquidation pursuant to federal bankruptcy law, or any similar federal or state law, shall be
filed by the Mortgagor; (ii) the Mortgagor or guarantor shall have colluded with (or, alternatively, solicited or caused to be solicited) other creditors to cause an involuntary bankruptcy filing with respect to the Mortgagor or
(iii) voluntary transfers of either the Mortgaged Property or equity interests in the Mortgagor made in violation of the ELA Documents; and (b) contains provisions providing for recourse against the Mortgagor or guarantor (which is a
natural person or persons, or an entity distinct from the Mortgagor (but may be affiliated with the Mortgagor) that has assets other than equity in the related Mortgaged Property that are not de minimis), for losses and damages sustained by reason
of the Mortgagor’s (i) misappropriation of rents after the occurrence of an event of default under the Senior Loan; (ii) misappropriation of (A) insurance proceeds or condemnation awards or (B) security deposits or,
alternatively, the failure of any security deposits to be delivered to the lender under such Senior Loan upon foreclosure or action in lieu thereof (except to the extent applied in accordance with leases prior to a Senior Loan event of default);
(iii) fraud or intentional material misrepresentation; (iv) breaches of the environmental covenants in the related ELA Documents; or (v) commission of intentional material physical waste at the related Mortgaged Property. 

33. Financial Reporting and Rent Rolls. The ELA Documents with respect to the related Senior Loan require the Mortgagor to provide the
owner or holder of the Mortgage with quarterly and annual operating statements, and quarterly rent rolls for properties that have leases contributing more than 5% of the in-place base rent and annual financial statements, which annual financial
statements with respect to such Senior Loan with more than one mortgagor are in the form of an annual combined balance sheet of the Mortgagor entities (and no other entities), together with the related combined statements of operations,
members’ capital and cash flows, including a combining balance sheet and statement of income for the Mortgaged Properties on a combined basis. 

34. Acts of Terrorism Exclusion. With respect to the related Senior Loan, the related special-form all-risk insurance policy and
business interruption policy (issued by an insurer meeting the Insurance Rating Requirements) do not specifically exclude Acts of Terrorism, as defined in the Terrorism Risk Insurance Act of 2002, as amended by the Terrorism Risk

  
 E-31 

 
Insurance Program Reauthorization Act of 2007 (collectively referred to as “TRIA”), from coverage, or if such coverage is excluded, it is covered by a separate terrorism
insurance policy. With respect to such Senior Loan, the related ELA Documents do not expressly waive or prohibit the mortgagee from requiring coverage for Acts of Terrorism, as defined in TRIA, or damages related thereto except to the extent that
any right to require such coverage may be limited by commercial availability on commercially reasonable terms; provided, that if TRIA or a similar or subsequent statute is not in effect, then, provided that terrorism insurance is commercially
available, the mortgagor under such Senior Loan is required to carry terrorism insurance, but in such event the mortgagor shall not be required to spend on terrorism insurance coverage more than two times the amount of the insurance premium that is
payable in respect of the property and business interruption/rental loss insurance required under the related ELA Documents (without giving effect to the cost of terrorism and earthquake components of such casualty and business interruption/rental
loss insurance) at the time of origination of the related Senior Loan, and if the cost of terrorism insurance exceeds such amount, the mortgagor is required to purchase the maximum amount of terrorism insurance available with funds equal to such
amount. 
 35. Interest Rate. The related Senior Loan either (A) bears interest at a rate that remains fixed throughout the
remaining term of such Senior Loan, except in the case of situations where default interest is imposed or (B) bears interest at a floating rate equal to the sum of (x) LIBOR or the Federal Funds Rate plus (y) a fixed number of basis
points throughout the remaining term of the Senior Loan except in situations where default interest may be imposed. The interest rate (exclusive of any default interest, late charges, yield maintenance charges, or prepayment premiums) of such Senior
Loan complied as of the date of origination with, or was exempt from, applicable state or federal laws, regulations and other requirements pertaining to usury. 

36. Ground Leases. If the related Senior Loan is secured by a leasehold estate under a Ground Lease in whole or in part, and the
related Mortgage does not also encumber the related lessor’s fee interest in such Mortgaged Property, based upon the terms of the Ground Lease and any estoppel or other agreement received from the ground lessor in favor of the Borrower, its
successors and assigns, the Borrower represents and warrants that: 
 (a) The Ground Lease or a memorandum regarding such Ground Lease has
been duly recorded or submitted for recordation in a form that is acceptable for recording in the applicable jurisdiction. The Ground Lease or an estoppel or other agreement received from the ground lessor permits the interest of the lessee to be
encumbered by the related Mortgage and does not restrict the use of the related Mortgaged Property by such lessee, its successors or assigns in a manner that would materially adversely affect the security provided by the related Mortgage; 

(b) Such Ground Lease may not be amended or modified, or canceled or terminated without the prior written consent of the record holder of the
Mortgage Note and any such action without such consent is not binding on the record holder of the Mortgage Note, its successors or assigns, and no such consent has been granted by the Borrower since the origination of the Mortgage Loan; 

(c) Such Ground Lease has an original term (or an original term plus one or more optional renewal terms, which, under all circumstances, may
be exercised, and will be enforceable, by either the mortgagor or the mortgagee) that extends not less than 20 years beyond the stated maturity of such maturity; 

  
 E-32 

 (d) Such Ground Lease either (i) is not subject to any liens or encumbrances superior to, or
of equal priority with, the Mortgage, except for the related fee interest of the ground lessor and the Permitted Encumbrances, or (ii) is subject to a subordination, non-disturbance and attornment agreement to which the mortgagee on the
lessor’s fee interest in the Mortgaged Property is subject; 
 (e) Such Ground Lease (i) does not place commercially unreasonable
restrictions on the identity of the mortgagee and upon foreclosing on the Mortgage and (ii) is assignable (including pursuant to foreclosure) to the holder of the Senior Loan and its successors and assigns without the consent of the lessor
thereunder, and in the event it is so assigned, it is further assignable by the holder of the Senior Loan and its successors and assigns without the consent of the lessor; 

(f) Such Ground Lease is in full force and effect, and to Borrower’s knowledge, there is no material default under such Ground Lease and
no condition that, but for the passage of time or giving of notice, would result in a material default under the terms of such Ground Lease, and the Borrower has not received any written notice of material default under or notice of termination of
such Ground Lease; 
 (g) Such Ground Lease or ancillary agreement between the lessor and the lessee requires the lessor to give written
notice of any default to the lender under the Senior Loan, and provides that no notice of default or termination is effective against the lender unless such notice is given to the lender in the manner described in such Ground Lease or ancillary
agreement; 
 (h) A lender is permitted a reasonable opportunity (including, where necessary, sufficient time to gain possession of the
interest of the lessee under the Ground Lease through legal proceedings) to cure any default under the Ground Lease which is curable after the lender’s receipt of notice of any default before the lessor may terminate the Ground Lease; 

(i) The Ground Lease does not impose any restrictions on subletting that would be viewed as commercially unreasonable by a prudent commercial
lender; 
 (j) Under the terms of the Ground Lease, an estoppel or other agreement received from the ground lessor and the related Mortgage
(taken together), any related insurance proceeds or the portion of the condemnation award allocable to the ground lessee’s interest (other than (i) de minimis amounts for minor casualties or (ii) in respect of a total or substantially
total loss or taking as addressed in clause (k) below) will be applied either to the repair or to restoration of all or part of the related Mortgaged Property with (so long as such proceeds are in excess of the threshold amount specified in the
related ELA Documents) the lender or a trustee appointed by it having the right to hold and disburse such proceeds as repair or restoration progresses, or to the payment of the outstanding principal balance of the Senior Loan, together with any
accrued interest; 
 (k) In the case of a total or substantially total taking or loss, under the terms of such Ground Lease, an estoppel or
other agreement and the related Mortgage (taken together), any related insurance proceeds, or portion of the condemnation award allocable to ground lessee’s interest in respect of a total or substantially total loss or taking of the related
Mortgaged Property to the extent not applied to restoration, will be applied first to the payment of the outstanding principal balance of the Senior Loan, together with any accrued interest; and 

  
 E-33 

 (l) The ground lessor under such Ground Lease is required to enter into a new lease upon early
termination of the Ground Lease for any reason, including rejection of such Ground Lease in bankruptcy. 
 37. Due on Sale or
Encumbrance. Subject to specific exceptions set forth below, the related Senior Loan contains a “due on sale” or other such provision for the acceleration of the payment of the unpaid principal balance of such Senior Loan if, without
complying with the requirements of the Mortgage or loan agreement, (a) the related Mortgaged Property, or any equity interest of greater than 50% in the related Mortgagor, is directly or indirectly pledged, transferred or sold, other than as
related to (i) family and estate planning transfers or transfers upon death or legal incapacity, (ii) transfers to certain affiliates as defined in the related ELA Documents, (iii) transfers of less than, or other than, a controlling
interest in the related Mortgagor, (iv) transfers to another holder of direct or indirect equity in the Mortgagor, a specific Person designated in the related ELA Documents or a Person satisfying specific criteria identified in the related ELA
Documents, such as a qualified equityholder, (v) transfers of stock or similar equity units in publicly traded companies, or (vi) by reason of any mezzanine debt that existed at the origination of the related Mortgage Loan, or future
permitted mezzanine debt or (b) the related Mortgaged Property is encumbered with a subordinate lien or security interest against the related Mortgaged Property, other than (i) any serviced companion loan or non-serviced companion loan or
any subordinate debt that existed at origination and is permitted under the related ELA Documents, (ii) purchase money security interests (iii) any Crossed Mortgage Loan or (iv) Permitted Encumbrances. The related Mortgage or other
ELA Documents require the Mortgagor to pay all reasonable costs incurred by the lender relative to such transfer or encumbrance. 
 38.
No Material Default; Payment Record. The related Senior Loan is not more than 30 days delinquent, without giving effect to any grace or cure period, in making required payments. There is (a) no material default, breach, violation or
event of acceleration existing under such Senior Loan, or (b) no event (other than payments due but not yet delinquent) which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a material
default, breach, violation or event of acceleration, which default, breach, violation or event of acceleration, in the case of either clause (a) or clause (b), materially and adversely affects the value of such Senior Loan or the value, use or
operation of the related Mortgaged Property, provided, that this representation and warranty does not cover any default, breach, violation or event of acceleration that specifically pertains to or arises out of an exception scheduled to any
other representation and warranty made by the Borrower in this Part 3. No person other than the holder of such Senior Loan may declare any event of default under such Senior Loan or accelerate any indebtedness under the related ELA documents. 

39. Bankruptcy. Neither the Mortgaged Property securing the related Senior Loan (other than any tenants of such Mortgaged Property),
nor any portion thereof, is the subject of, and no issuer of the Participation Interest, no co-participant and no Mortgagor, guarantor or tenant occupying a single-tenant property related thereto is a debtor in, any state or federal bankruptcy or
insolvency proceeding. 

  
 E-34 

 40. Organization of Mortgagor. The Mortgagor with respect to the related Senior Loan is an
entity organized under the laws of a state of the United States or the District of Columbia and is a Special Purpose Entity. 
 For this
purpose, a “Special Purpose Entity” shall mean an entity, other than an individual, whose organizational documents provide substantially to the effect that it was formed or organized solely for the purpose of owning and operating one or
more of the Mortgaged Properties securing the Purchased Asset and prohibit it from engaging in any business unrelated to such Mortgaged Property or Properties, and whose organizational documents further provide, or which entity represented in the
related ELA Documents, substantially to the effect that it does not have any assets other than those related to its interest in and operation of such Mortgaged Property or Properties, or any indebtedness other than as permitted by the related
Mortgage(s) or the other related ELA Documents, that it has its own books and records and accounts separate and apart from those of any other person, and that it holds itself out as a legal entity, separate and apart from any other person or entity.

 41. Environmental Conditions. There is no material and adverse environmental condition or circumstance affecting the related
Mortgaged Property securing the related Senior Loan; there is no material violation of any applicable Environmental Law with respect to the related Mortgaged Property. Neither the Borrower nor the Mortgagor on such Senior Loan has taken any actions
which would cause the related Mortgaged Property not to be in material compliance with all applicable Environmental Laws. The related ELA Documents require the borrower to materially comply with all Environmental Laws. The Mortgagor has agreed to
either (i) indemnify the mortgagee for any losses resulting from any material, adverse environmental condition or from any failure of the Mortgagor to abide by such Environmental Laws or (ii) has provided environmental insurance. 

42. Appraisal. The Mortgaged Property securing the related Senior Loan is the subject of a Current Appraisal, and in the interim, to
Borrower’s knowledge, there has been no obvious and material change in market conditions or physical aspects of the property that threaten the adequacy of the collateral since such appraisal was prepared. For purposes of this Paragraph 42,
(i) “Current Appraisal” means, on any date, an “as-is” market value appraisal prepared by an Appraiser and complying in all respects with the standards for real estate appraisal established pursuant to Title XI of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended, and the Uniform Standards for Professional Appraisal Practice (USPAP), and otherwise in the reasonable judgment of the Administrative Agent in form and substance
adequate to satisfy all legal requirements applicable to the Administrative Agent and the Lenders that is dated not more than one year prior to such date, and (ii) “Appraiser” means an appraiser that is a Member of the
Appraisal Institute and is a stated licensed or state certified appraiser (as appropriate) in the state in which such Mortgaged Property is located and who (i) was engaged directly by the originator of the Mortgage Loan or the Borrower, or a
correspondent or agent of the originator of the Mortgage Loan or the Borrower, and (ii) to Borrower’s knowledge, had no interest, direct or indirect, in the Mortgaged Property or the Mortgagor or in any loan made on the security thereof,
and whose compensation is not affected by the approval or disapproval of the Senior Loan. 

  
 E-35 

 43. Cross-Collateralization. The related Senior Loan is not cross-collateralized or
cross-defaulted with any other Mortgage Loan that is not also a Pledged Asset. 
 44. Advance of Funds by the Borrower. After
origination of the related Senior Loan, no advance of funds has been made by the Borrower to the related Mortgagor other than related to the Participation Interest, and to Borrower’s knowledge no funds have been received from any Person other
than the Mortgagor or an Affiliate for, or on account of, payments due on the Participation Interest. Neither the Borrower nor any Affiliate thereof has any obligation to make any capital contribution to the Mortgagor under such Senior Loan. 

45. Sanctions. (a) None of the funds or other assets of the related Mortgagor, any guarantor or any other obligor with respect to
such Participation Interest or the related Senior Loan shall constitute property of, or shall be beneficially owned, directly or indirectly, by, any individual or entity that is, or is owned or controlled by any individual or entity that is
(i) currently the subject or target of any Sanctions, (ii) included on OFAC’s List of Specially Designated Nationals, HMT’s Consolidated List of Financial Sanctions Targets and the Investment Ban List, or any similar list
enforced by any other relevant sanctions authority or (iii) located, organized or resident in a Designated Jurisdiction (a “Prohibited Person”), with the result that such Senior Loan is or would be in violation of law;
(b) no Prohibited Person shall have any interest of any nature whatsoever in any Mortgagor, the Borrower or any guarantor, as applicable, with the result that such Senior Loan is or would be in violation of law; and (c) none of the funds
of the Mortgagor, any guarantor or any other obligor with respect to such Senior Loan, as applicable, shall be derived from any unlawful activity with the result that such Senior Loan is or would be in violation of law. No tenant at the Mortgaged
Property relating to such Senior Loan is a Prohibited Person. 
 46. Not a Security. Such Participation Interest has not been and
shall not be deemed to be a “Security” within the meaning of the Securities Act of 1933, as amended or the Securities Exchange Act of 1934, as amended. 

47. No Pari Passu Default. No default or event of default has occurred under any agreement pertaining to any lien or other interest
that ranks pari passu with the interests of the holder of such Participation Interest in respect of the related Mortgaged Property and there is no provision in any such agreement which would provide for any increase in the principal amount of any
such lien or other interest. 
 48. No Material Default. No (i) monetary default, breach or violation exists with respect to any
agreement or other document governing or pertaining to such Participation Interest, the related Senior Loan or any other obligation of the Mortgagor, (ii) material non-monetary default, breach or violation exists with respect to such
Participation Interest, the related Senior Loan or any other obligation of the Mortgagor, or (iii) event which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach,
violation or event of acceleration under any agreement or other document governing or pertaining to such Participation Interest, the related Senior Loan or any other obligation of the Mortgagor. 

  
 E-36 

 EXHIBIT F 

FORM OF AVAILABILITY CERTIFICATE 

Reference is made to that certain Credit Agreement, dated as of September 29, 2017 (as amended, amended and restated, extended,
supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among TPG RE Finance 20, Ltd., an exempted company incorporated in the Cayman Islands
with limited liability (the “Borrower”), TPG RE Pledgor 20, LLC, a Delaware limited liability company, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent. This Certificate is delivered
pursuant to [Section 4.02(f)] [Section 4.03(e)] [Section 4.04(e)] [Section 5.06(b)(vii)] [Section 7.02(a)] of the Agreement. 
 The
undersigned Responsible Officer of the Borrower hereby certifies as of the date hereof that he/she is the
                                        
of the Borrower, and that, as such, he/she is authorized to execute and deliver this Availability Certificate to the Administrative Agent on behalf of the Borrower and further certifies in such capacity, and not in any personal capacity, that: 

1. Attached hereto as Schedule 1 are accurate and complete calculations of the Borrowing Base Amount for each Pledged Asset, the
Pledged Asset Total Outstandings for each Pledged Asset and the Maximum Available Amount, in each case, on and as of the date of this Availability Certificate [immediately after giving pro forma effect to the making of the requested Loan]15 [immediately after giving pro forma effect to the proposed Release Transaction (and any contemporaneous prepayment or borrowing of Loans and/or pledge of additional Pledged Assets)]16. 
 2. Total Outstandings on and as of the date of this Availability Certificate
[immediately after giving pro forma effect to the making of the requested Loan]17 [immediately after giving pro forma effect to the proposed Release Transaction (and any contemporaneous prepayment
or borrowing of Loans and/or pledge of additional Pledged Assets)]18 are $            , which does not exceed the Maximum
Available Amount of $             as shown on Schedule 1. 

 

	15 	Include for delivery pursuant to Section 4.02(f), 4.03(e) and 4.04(e) 

	16 	Include for delivery pursuant to Section 5.06(b)(vii) 

	17 	Include for delivery pursuant to Section 4.02(f), 4.03(e) and 4.04(e) 

	18 	Include for delivery pursuant to Section 5.06(b)(vii) 

  
 F - 1 

Form of Availability Certificate 

 3. The calculations on Schedule 1 demonstrate that [immediately after giving pro forma
effect to the making of the requested Loan]19 [immediately after giving pro forma effect to the proposed Release Transaction (and any contemporaneous prepayment or borrowing of Loans and/or pledge
of additional Pledged Assets)]20 the Pledged Asset Total Outstandings with respect to each Pledged Asset [do][will] not exceed the Borrowing Base Amount for such Pledged Asset. 

IN WITNESS WHEREOF, the undersigned has executed this Availability Certificate as of
                    ,
                    . 
  

			
	TPG RE FINANCE 20, LTD.
		
	By:	 	 
		 	Name:
		 	Title:

  

	19 	Include for delivery pursuant to Section 4.02(f), 4.03(e) and 4.04(e) 

	20 	Include for delivery pursuant to Section 5.06(b)(vii) 

  
 F - 2 

Form of Availability Certificate 

 SCHEDULE 1 

TO AVAILABILITY CERTIFICATE 

PLEDGED ASSET TOTAL OUTSTANDINGS, BORROWING BASE AMOUNT 

AND MAXIMUM AVAILABLE AMOUNT 
 (SEE
ATTACHED) 

  
 F - 3 

Form of Availability Certificate 

 SCHEDULE 2 

TO AVAILABILITY CERTIFICATE 

FOR EACH PLEDGED ASSET 

(SEE ATTACHED) 

  
 F - 4 

Form of Availability Certificate 

 EXHIBIT G 

FORM OF PLEDGE PROPOSAL 

Date:                     ,
             
  

	To:	Bank of America, N.A., as Administrative Agent 

 Ladies and Gentlemen: 

Reference is made to that certain Credit Agreement, dated as of September 29, 2017 (as amended, amended and restated, extended,
supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among TPG RE Finance 20, Ltd., an exempted company incorporated in the Cayman Islands
with limited liability (the “Borrower”), TPG RE Finance Pledgor 20, LLC, a Delaware limited liability company, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent. 

Pursuant to Section 2.01(b) of the Agreement, Borrower hereby requests that Administrative Agent and the Lenders approve the Proposed
Loan Asset described below and more fully set forth on Schedule 1 attached hereto as an Eligible Loan Asset. 
  

			
	Name of Proposed Loan Asset:	 	 

 
			
		
	Mortgagor’s name:	 	 

 
			
		
	Principal amount of [Mortgage Note/Mezzanine Note/Participation Certificate]:	 	 

 
			
		
	Maturity date of [Mortgage Note/Mezzanine Note/Participation Certificate]:	 	 

 
			
		
	Borrower’s case/loan number:	 	 

 
			
		
	Expected date of Borrowing:	 	 

 
			
		
	Name of the holder of the original [Mortgage Note/Mezzanine Note/Participation Certificate]:	 	 

 
			
		
	Is this Proposed Loan Asset a Table Funded Loan Asset:	 	[YES][NO]    
		
	Is there a future funding for this Proposed Loan Asset:	 	[YES][NO]    

 
					
			
	[Future Funding Amount:	 	 	 	]

 [If a Future Funding Transaction, Borrower hereby request that the Required Lenders agree to fund the
Future Funding Amount] 

  
 G - 5 

Form of Pledge Proposal 

 By its delivery hereof, the undersigned Borrower hereby represents and warrants that Borrower has
no knowledge of any material information concerning such Proposed Loan Asset which is not reflected in the related Diligence Material or otherwise disclosed to the Administrative Agent and the Lenders in writing. 

 

			
	TPG RE FINANCE 20, LTD.

 
			
		
	By:	 	 

 
			
		
	Name:	 	 

 
			
		
	Title:	 	 

  
 G - 6 

Form of Pledge Proposal 

 Schedule 1 to Pledge Proposal 

Proposed Loan Asset: 
 Nature of
Proposed Loan Asset (Senior Loan, Mezzanine Loan or Participation Interest): 
 Eligible Property Type (office, industrial, multifamily,
multi-tenant retail, mixed use or lodging commercial properties): 
 Describe extension options applicable to the Mortgagor under the
Mortgage Loan (including for each extension option, the period for exercise, the standard of consent (if any) and the length of extension ): 

Other items: 

  
 G - 7 

Form of Pledge Proposal 

 EXHIBIT H 

FORM OF CONFIRMATION STATEMENT 

Date:                     ,
             
  

	To:	TPG RE Finance 20, Ltd. 

 Ladies and Gentlemen: 

Reference is made to that certain Credit Agreement, dated as of September 29, 2017 (as amended, amended and restated, extended,
supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among TPG RE Finance 20, Ltd., an exempted company incorporated in the Cayman Islands
with limited liability (the “Borrower”), TPG RE Finance Pledgor 20, LLC, a Delaware limited liability company, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent. 

Bank of America, N.A., as Administrative Agent under the Agreement, is pleased to deliver our written confirmation that the Proposed Loan
Asset described below and more fully set forth on Schedule 1 attached hereto has been approved as an Eligible Loan Asset subject to the terms and conditions set forth in the Agreement and below. The Proposed Loan Asset shall be a Pledged Asset for
all purposes under the Agreement effective as of the date first set forth above upon the due execution and delivery of this Confirmation Statement by Borrower and Administrative Agent. The exceptions to the representations and warranties set forth
on Exhibit E to the Agreement as set forth on Schedule 2 attached hereto are hereby approved. 
  

			
	Name of Proposed Loan Asset:	 	 

 
			
		
	Mortgagor’s name:	 	 

 
			
		
	Principal amount of [Mortgage Note/Mezzanine Note/Participation Certificate]:	 	 

 
			
		
	Maturity date of [Mortgage Note/Mezzanine Note/Participation Certificate]:	 	 

 
			
		
	Borrower’s case/loan number:	 	 

 
			
		
	Expected date of Borrowing:	 	 

 
			
		
	Name of the holder of the original [Mortgage Note/Mezzanine Note/Participation Certificate]:	 	 

 Governing
agreements: As identified on attached Schedule 1 

			
		
	Advance Rate:	 	 

  
 H - 8 

Form of Confirmation Statement 

			
		
	Underwritten Events:	 	 

 
			
		
	Major Lease:	 	 

 
			
		
	Is there a future funding for this Proposed Loan Asset:	 	[YES][NO]    

 [If the
Proposed Loan Asset is a Future Funding Pledged Asset: 
 The aggregate amount of future funding advances that the Borrower is committed to
make under the ELA Documents relating to such Future Funding Pledged Asset is $            . 

[The Required Lenders agree to fund the portion of the Future Funding Amount equal to the Advance Rate of such Future Funding Pledged Asset.]]

 [If the Proposed Loan Asset is a Table Funded Loan Asset or any other Pledged Asset with respect to which there are Delayed Conditions:
Set forth below are the conditions precedent with respect to such Proposed Loan Asset which such conditions precedent shall be satisfied by not later than the third Business Day after the Initial Funding Date:] 

In furtherance of the security interest granted by Borrower pursuant to Section 5.01 of the Agreement, Borrower hereby pledges, assigns
and grants to Administrative Agent, for the ratable benefit of the Secured Parties, to secure the prompt and complete payment and performance when due of the Obligations, a security interest in all of the Borrower’s right, title and interest
in, to and under the Pledged Asset described herein, including, without limitation, the ELA Documents listed on the ELA Schedule attached to the Custodial Delivery Certificate with respect to such Pledged Asset, in accordance with Section 5.01
of the Agreement. 

  
 H - 9 

Form of Confirmation Statement 

 
			
	 BANK OF AMERICA, N.A., as

Administrative Agent

 
			
		
	By:	 	 

 
			
		
	Name:	 	 

 
			
		
	Title:	 	 

  

			
	ACKNOWLEDGED AND AGREED:
	
	TPG RE FINANCE 20, LTD.

			
		
	By:	 	 

			
		
	Name:	 	 

			
		
	Title:	 	 

  
 H - 10 

Form of Confirmation Statement 

 Schedule 1 to Confirmation Statement 

Eligible Loan Asset: 
 Nature of
Eligible Loan Asset (Senior Loan, Mezzanine Loan or Participation Interest): 
 Eligible Property Type (office, industrial, multifamily,
multi-tenant retail, mixed use or lodging commercial properties): 
 Describe extension options applicable to the Mortgagor under the
Mortgage Loan (including for each extension option, the period for exercise, the standard of consent (if any) and the length of extension ): 

Governing Agreements: 
 Other
items: 

  
 H - 11 

Form of Confirmation Statement 

 Schedule 2 to Confirmation Statement 

Exceptions to Representations and Warranties Set Forth on 

Exhibit E to the Agreement 

  
 H - 12 

Form of Confirmation Statement 

 EXHIBIT I-1 

FORM OF 
 U.S. TAX
COMPLIANCE CERTIFICATE 
 (For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to the Credit Agreement dated as of dated as of September 29, 2017 (as amended, amended and restated, extended,
supplemented or otherwise modified in writing from time to time, the “Credit Agreement”), among TPG RE Finance 20, Ltd., an exempted company incorporated in the Cayman Islands with limited liability (“Borrower”),
TPG RE Finance Pledgor 20, LLC, a Delaware limited liability company, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent. 

Pursuant to the provisions of Section 3.01(e) of the Credit Agreement, the undersigned hereby certifies that (i) it is the
sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code,
(iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of
the Code. 
 The undersigned has furnished the Administrative Agent and the Borrower with a certificate of its non-U.S. Person status on IRS
Form W-8BEN-E (or W-8BEN, as applicable). By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative
Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the
undersigned, or in either of the two calendar years preceding such payments. 
 Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit Agreement. 
 [NAME OF LENDER] 

By: ________________________ 
 Name:
________________________ 
 Title: _________________________ 

Date:                     
    , 20[  ] 

  
 I - 1 

U.S. Tax Compliance Certificate 

 EXHIBIT I-2 

FORM OF 
 U.S. TAX
COMPLIANCE CERTIFICATE 
 (For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to the Credit Agreement, dated as of September 29, 2017 (as amended, amended and restated, extended,
supplemented or otherwise modified in writing from time to time, the “Credit Agreement”), among TPG RE Finance 20, Ltd., an exempted company incorporated in the Cayman Islands with limited liability (“Borrower”),
TPG RE Finance Pledgor 20, LLC, a Delaware limited liability company, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent. 

Pursuant to the provisions of Section 3.01(e) of the Credit Agreement, the undersigned hereby certifies that (i) it is the
sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the
Borrower within the meaning of Section 871(h)(3)(B) of the Code, and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code. 

The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN-E (or W-8BEN, as
applicable). By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall have at all
times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit
Agreement. 
 [NAME OF PARTICIPANT] 
 By:
________________________ 
 Name: ________________________ 

Title: _________________________ 
 Date:
                         , 20[  ] 

  
 I - 2 

U.S. Tax Compliance Certificate 

 EXHIBIT I-3 

FORM OF 
 U.S. TAX
COMPLIANCE CERTIFICATE 
 (For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to the Credit Agreement, dated as of September 29, 2017 (as amended, amended and restated, extended,
supplemented or otherwise modified in writing from time to time, the “Credit Agreement”), among TPG RE Finance 20, Ltd., an exempted company incorporated in the Cayman Islands with limited liability (“Borrower”),
TPG RE Finance Pledgor 20, LLC, a Delaware limited liability company, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent. 

Pursuant to the provisions of Section 3.01(e) of the Credit Agreement, the undersigned hereby certifies that (i) it is the
sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation, (iii) with respect such participation, neither
the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code,
(iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign
corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code. 
 The undersigned has furnished its
participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN-E (or W-8BEN, as applicable) or (ii) an IRS
Form W-8IMY accompanied by an IRS Form W-8BEN-E (or W-8BEN, as applicable) from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that
(1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective
certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit
Agreement. 
 [NAME OF PARTICIPANT] 
 By:
________________________ 
 Name: ________________________ 

Title: _________________________ 
 Date:
                         , 20[  ] 

  
 I - 3 

U.S. Tax Compliance Certificate 

 EXHIBIT I-4 

FORM OF 
 U.S. TAX
COMPLIANCE CERTIFICATE 
 (For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to the Credit Agreement, dated as of September 29, 2017 (as amended, amended and restated, extended,
supplemented or otherwise modified in writing from time to time, the “Credit Agreement”), among TPG RE Finance 20, Ltd., an exempted company incorporated in the Cayman Islands with limited liability (“Borrower”),
TPG RE Finance Pledgor 20, LLC, a Delaware limited liability company, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent. 

Pursuant to the provisions of Section 3.01(e) of the Credit Agreement, the undersigned hereby certifies that (i) it is the
sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such Loan(s) (as well as any
Note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to this Credit Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit
pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the
Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code. 

The undersigned has furnished the Administrative Agent and the Borrower with IRS Form W-8IMY accompanied by one of the following forms from
each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN-E (or W-8BEN, as applicable) or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN-E (or W-8BEN, as applicable) from each of such
partner’s/member’s beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall
promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the
calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. 

  
 I - 4 

U.S. Tax Compliance Certificate 

 Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have
the meanings given to them in the Credit Agreement. 
 [NAME OF LENDER] 

By: ________________________ 
 Name:
________________________ 
 Title: _________________________ 

Date:                     
    , 20[  ] 

  
 I - 5 

U.S. Tax Compliance Certificate 

 EXHIBIT J 
  

			
	

	  	 Effective Date:
                    , 20    

Page              of
            

 Borrower Remittance Instructions 

I, [NAME OF AUTHORIZED SIGNATORY]1, the authorized signatory of TPG RE FINANCE 20, LTD. (the
“Borrower”), which said Borrower has executed a certain Credit Agreement dated as of [DATE OF AGREEMENT], with Bank of America, N.A., as Administrative Agent (“Bank”), in the original maximum principal amount of
$250,000,000 (“Loan Agreement”), do hereby certify that the following represents Borrower’s remittance instructions. 
 Bank is hereby
instructed to use the following instructions as directed by Borrower for either disbursement of Loan proceeds or debit of Loan payments: 
  

					
		  	 Account Name:___________________
  

Account Number:_______________________
  

Bank Name:___________________________
  

City & State:___________________________
  

ABA #:__________________________
	  	

 Check one of the following: 

             I certify that the above-referenced account is owned by Borrower. 

             I certify that the above-referenced account is owned by a title company,
escrow company or other closing agent directed and authorized by Borrower to receive Loan proceeds. 

             I certify that the above-referenced account (“Account”) is
owned by Borrower. Borrower agrees that scheduled payments on the Loan will be deducted automatically on their due dates from the Account. Bank is hereby authorized to apply the amounts so debited to Borrower’s obligations under
the Loan. Notwithstanding the foregoing, Bank will not automatically deduct the principal payment at maturity from the Account. Bank will debit the Account on the dates the payments become due. If a due date does not fall on a Business Day, Bank
will debit the Account on the first Business Day following the due date. If there are insufficient funds in the Account on the date Bank enters any debit authorized hereby, without limiting Bank’s other remedies in such an event, the debit will
be reversed in whole or in part, in Bank’s sole and absolute discretion, and such amount not debited shall be deemed to be unpaid and shall be immediately due and payable in accordance with the terms of the Loan. 

Bank may rely on these instructions until written notice is received by Bank, revoking these instructions and/or replacing this with new Borrower Remittance
Instructions, and such notice shall be effective not sooner than five (5) Business Days following receipt thereof. 
  

			
	TPG RE FINANCE 20, LTD.

			
		
	By:	 	 

			
	Name:	 	 

			
	Title:	 	 

			
	Date:	 	 

  

	1 	a recent incumbency certificate must be on file for the authorized signatory signing the Borrower Remittance Instructions. 

  
 J - 1 

Borrower Remittance Instructions 

 EXHIBIT K 
  

			
	

	  	 Effective Date:
                    , 20    

Page              of
            

 BORROWER’S INSTRUCTION CERTIFICATE 

Certificate of Authority and Specimen Signatures 

I, [NAME OF AUTHORIZED SIGNATORY]1, the authorized signatory of TPG RE FINANCE 20, LTD.,
(“Borrower”), which said Borrower has executed a certain Credit Agreement dated as of [DATE OF AGREEMENT], with Bank of America, N.A. , as Administrative Agent (“Bank”), in the original maximum principal amount
of $250,000,000 (“Loan Agreement”), and do hereby certify that the Authorized Signers and Authorized Persons whose names, titles and signatures appear in Sections I and II below are authorized to act on behalf of Borrower for
the specified purposes indicated below. 
 Section I – General Authorization. All persons listed below are also listed in the most recent
borrowing resolution. Any one (1) of the Authorized Signers, indicated below, is authorized to act on behalf of Borrower for all purposes including, but not limited to obtaining any and all information pertaining to the Loan, requesting any action
under the Loan Documents, providing any certificates on behalf of Borrower, and appointing and changing Authorized Persons below. All persons who signed the Loan Agreement on behalf of Borrower must sign in this Section I acknowledging their
agreement with the below listed Authorized Persons. 
  

					
	 Name
	  	 Title
	  	 Signature

	  
	  	  
	  	  

	  
	  	  
	  	  

	  
	  	  
	  	  

	  
	  	  
	  	  

	  
	  	  
	  	  

	  
	  	  
	  	  

	  
	  	  
	  	  

	  
	  	  
	  	  

	  
	  	  
	  	  

 Section II – Draw Requests for Loan Proceeds Authorization. 

Any one (1) of the Authorized Persons, indicated below, is authorized to act on behalf of Borrower in providing Draw Requests and requesting disbursements of
Loan proceeds. 
  

					
	 Name
	  	 Title
	  	 Signature

	  
	  	  
	  	  

	  
	  	  
	  	  

	  
	  	  
	  	  

	  
	  	  
	  	  

	  
	  	  
	  	  

	  
	  	  
	  	  

 I further certify that the specimen signatures set forth above in Sections I and II, next to each name are the
true and genuine signatures of such persons, and Bank may conclusively rely on the accuracy, genuineness, and good faith of any written, oral or electronic communication from any of the above listed individuals, for the specified purposes so stated.
Bank may rely on this Borrower’s Instruction Certificate until written notice is received by Bank, revoking the authorizations in Sections I and II and/or replacing this with a new Borrower’s Instruction Certificate, and such notice
shall be effective not sooner than five (5) Business Days following receipt thereof. 

							
	  
	  	  
	  	  
	  	  

	(Printed Name of Authorizing Party)	  	(Signature)	  	(Title)	  	(Phone Number)

  

	1 	a recent incumbency certificate must be on file for the authorized signatory signing this certificate 

  
 K - 1 

Borrower’s Instruction Certificate 

 EXHIBIT L 

FORM OF REDIRECTION LETTER 

TPG RE FINANCE 20, LTD 

[                       
                                 ] 

[                       
                                 ] 

[                       
                                 ] 

[                       
                                 ] 

REDIRECTION LETTER 
 AS OF
[                    ], 201[  ] 

Ladies and Gentlemen: 
 Please
refer to: (a) that certain [Loan Agreement], dated [                    ], 201[  ], by and between
[                    ] (the “Borrower”), as borrower, and TPG RE FINANCE 20, LTD., an exempted company incorporated in the
Cayman Islands with limited liability (the “Lender”), as lender; and (b) all documents securing or relating to that certain $[            ] loan made by the
Lender to the Borrower on [                    ], 20[ ] (the “Loan”). 

You are advised as follows, effective as of the date of this letter. 

Pledge of the Loan. The Lender has entered into a Credit Agreement, dated as of September 29, 2017 (as the same may be
amended and/or restated from time to time, the “Credit Agreement”), with the lenders from time to time party thereto, the other parties from time to time party thereto and Bank of America, N.A., as Administrative Agent (the
“Administrative Agent”), and has pledged its right, title and interest in the Loan to the Administrative Agent subject to the terms of the Credit Agreement. This assignment shall remain in effect unless and until the Administrative
Agent has notified you otherwise in writing. 
 Direction of Funds. In connection with Borrower’s obligations under the
Loan, Lender hereby directs Borrower to disburse, by wire transfer, any and all payments to be made under or in respect of the Loan to the following account, for the benefit of the Administrative Agent: 

[                       
         ] 
 ABA
[                            ] 

Account #
[                        ] 

Attn:
[                                    ] 

Attn:
[                                ] 

This direction shall remain in effect unless and until the Administrative Agent has notified you otherwise in writing. 

Modifications, Waivers, Etc. No modification, waiver, deferral, or release (in whole or in part) of any party’s obligations
in respect of the Loan, or of any collateral for any obligations in respect of the Loan, shall be effective without the prior written consent of the Administrative Agent. 

Please acknowledge your acceptance of the terms and directions contained in this correspondence by executing a counterpart of this
correspondence and returning it to the undersigned. 
 [Signature Page Follows] 

  
 L - 1 

Form of Redirection Letter 

 
			
	Very truly yours,
	
	TPG RE FINANCE 20, LTD
		
	By:	 	 
		 	Name:
		 	Title:

  

			
	 Agreed and accepted this [        ]

day of [                    ], 201[__]

[                          
          ]

			
		
	By:	 	 

			
	Name:	 	 

			
	Title:	 	 

  
 L - 1 

Form of Redirection Letter 

 EXHIBIT M 

FORM OF POWER OF ATTORNEY 

September 29, 2017 
 Know
All Men by These Presents, that TPG RE FINANCE 20, LTD., an exempted company incorporated in the Cayman Islands with limited liability (the “Borrower”), does hereby appoint BANK OF AMERICA, N.A. (“Administrative
Agent”), its attorney-in-fact to act in Borrower’s name, place and stead in any way which Borrower could do with respect to (i) the completion of the endorsements of the Mortgage Notes, Mezzanine Notes and the Assignments of
Mortgages, (ii) the recordation of the Assignments of Mortgages and the assignment of assignment of leases and rents and (iii) the enforcement of Borrower’s rights under the Pledged Assets pledged to the Administrative Agent for the
ratable benefit of the Secured Parties pursuant to that certain Credit Agreement, dated as of September 29, 2017 (as amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the
“Agreement”), among Borrower, TPG RE Finance Pledgor 20, LLC, a Delaware limited liability company, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent, and to take such other steps as may
be necessary or desirable to enforce Secured Parties’ rights against such Pledged Assets, the related ELA Documents and the related servicing records to the extent that Borrower is permitted by law to act through an agent. 

Capitalized terms used herein and not otherwise defined have the meanings set forth in the Agreement. 

TO INDUCE ANY THIRD PARTY TO ACT HEREUNDER, BORROWER HEREBY AGREES THAT ANY THIRD PARTY RECEIVING A DULY EXECUTED COPY OR A FACSIMILE OF THIS
INSTRUMENT MAY ACT HEREUNDER, AND THAT REVOCATION OR TERMINATION HEREOF SHALL BE INEFFECTIVE AS TO SUCH THIRD PARTY UNLESS AND UNTIL ACTUAL NOTICE OR KNOWLEDGE OR SUCH REVOCATION OR TERMINATION SHALL HAVE BEEN RECEIVED BY SUCH THIRD PARTY, AND
BORROWER ON ITS OWN BEHALF AND ON BEHALF OF BORROWER’S ASSIGNS, HEREBY AGREES TO INDEMNIFY AND HOLD HARMLESS ANY SUCH THIRD PARTY FROM AND AGAINST ANY AND ALL CLAIMS THAT MAY ARISE AGAINST SUCH THIRD PARTY BY REASON OF SUCH THIRD PARTY HAVING
RELIED ON THE PROVISIONS OF THIS INSTRUMENT. 
 [Signature Page Follows] 

  
 M - 1 

Form of Power of Attorney 

 IN WITNESS WHEREOF the Borrower has caused this Power of Attorney to be executed and delivered as
a deed as of the date first above written. 
  

					
	TPG RE FINANCE 20, LTD.
		
	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

  
 M - 1 

Form of Power of Attorney 

 EXHIBIT N 
  

 
 [INSERT TODAY’S DATE] 

[INSERT NAME OF TITLE COMPANY 
 ADDRESS 

ADDRESS 
 (the “Escrow Agent”) 

Lender: [INSERT CLIENT NAME] (THE “Mortgage Lender”) 

Property Name: [INSERT PROPERTY NAME] 

Mortgage Lender’s Loan Number: [INSERT LOAN IDENTIFICATION NUMBER] 

Closing Date: on or before [INSERT DATE THAT IS 3 BUSINESS DAYS FROM TODAY](the “Closing Date”) 

Loan: $[INSERT AMOUNT OF LOAN](+/- 5% variance; if variance is greater than +/- 5%, please e-mail the Bank of America Representative
noted below)(the “Loan”) 
 In accordance with closing instructions that an authorized representative of the Mortgage Lender has provided to
the Escrow Agent (“Mortgage Lender’s Instructions”), the Loan is expected to close and fund on the Closing Date. The Mortgage Lender will disburse funds (including funds advanced by Bank of America, N.A. (“Warehouse
Lender”)) to the Escrow Agent on the Closing Date, which are to be held by the Escrow Agent pending the closing and funding of the Loan in accordance with Mortgage Lender’s Instructions and this letter. Of such funds disbursed by Mortgage
Lender to the Escrow Agent, an amount equal to $[            ] are funds advanced by the Warehouse Lender (the “Warehouse Lender Funds”). 

In the event that the Loan is not closed by 5:00 p.m. Eastern Time (“ET”) on the Closing Date, or immediately upon the Mortgage Lender informing you
that the closing of the Loan will not occur by the Closing Date, the Escrow Agent hereby agrees to (a) call Cheryl A. Bailey at 617-346-0089 or Lisa M. Palumbo-Nieforth at 401-278-5713; and (b) notwithstanding any contrary instructions in
the Mortgage Lender’s Instructions, immediately, and in any event by 12:00 p.m. ET on the next business day, return to the Warehouse Lender at the following account all Warehouse Lender Funds provided by the Mortgage Lender to the Escrow Agent:

 Bank of America 

ABA # 026009593 

ACCOUNT: [INSERT CLIENT’S NAME AND REPAYMENT ACCOUNT #] 

Attn: Cheryl A. Bailey/ Lisa M. Palumbo-Nieforth 

Please have an authorized representative of the Escrow Agent countersign this letter and send a copy via electronic mail immediately to
BofA_Warehousing_Group@baml.com. Please note that the Warehouse Lender requires receipt of a copy of this fully executed letter as a condition to its funding. 

Bank of America 
 100 Federal Street 

Boston, Ma. 02110 
 MA1-225-02-04 

[INSERT NAME & PHONE NUMBER] 

BofA_Warehousing_Group@baml.com 
  

									
	BY:	  	 	  		  	 	  	
		  		  		  	Date	  	
	BY:	  	 	  		  	 	  	
		  	Authorized Representative of the Escrow Agent	  		  	Date

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