Document:

cnbmedleyletteragreement

                               November 14, 2018   Medley LLC  280 Park Avenue,  6th Floor East  New York, NY 10017         Re: Letter Agreement (the "Letter Agreemene)   Ladies and Gentlemen:         We  refer to that certain Credit Agreement, dated as of August 19, 2014 (as amended,  restated, supplemented or otherwise modified from time to time, the "Credit Agreement"), by  and among Medley LLC, a Delaware limited liability company (the "Borrower" or "you"), the  lenders from time to time party thereto (the "Lenders"), and City National Bank, a national  banking association, in its capacity as the administrative agent (the "Administrative Agent") and  in its capacity as the collateral agent for the Lenders (the "Administrative Agent" and the  "Collateral Agent", collectively "Agents"). Capitalized terms used herein and not otherwise  defined shall have the meanings assigned to such terms in the Credit Agreement.         Borrower has informed the Agents and the Lenders that Borrower intends to enter into a  merger transaction, pursuant to the Merger Agreement dated as of August 9, 2018 in the form  provided to Agents prior to the date hereof (the "Merger Agreement") among Medley  Management Inc., a Delaware corporation ("Medley"), Sierra Income Corporation, a Maryland  corporation  ("SIC") and Sierra Management, Inc., a Delaware corporation and wholly-owned  subsidiary of SIC ("Merger Sub"), in accordance with which Medley will merge with and into  Merger Sub, with Merger Sub as the survivor thereof (the "Designated Transaction").         Agents, the Lenders and Borrower agree that on the "Closing Date" as such term is  defined in the Merger Agreement and the consummation of the Designated Transaction ( such  date, the "Designated Transaction Effective Date") a Change in Control  will have occurred  pursuant to the Credit Agreement. Notwithstanding, the Borrower  requests that the Agents and  the Lenders  agree that the Designated Transaction be deemed to not constitute a Change in  Control subject to the conditions stated herein.         In consideration of the foregoing and the mutual covenants herein contained, and for  other good and valuable consideration, the receipt and sufficiency of which are hereby  acknowledged, the Agents, the Lenders and Borrower agree as follows:         1.    So long as the Designated Transaction Effective Date occurs on or before March 29, 2019, the Designated Transaction shall not constitute a Change in Control until the date that  is 120 days after the Designated Transaction Effective Date. If the Designated Transaction  Effective Date occurs on or after March 30, 2019, the Designated Transaction shall constitute a  Change in Control immediately upon the occurrence of the Designated Transaction Effective  Date.    LEGAL_us _w  # 96205864.9 38468.00116  

 

 

 

 

 

 

 

 

 

 

 

                                   EXHIBIT A                           REAFFIRMATION AND CONSENT                Reference is hereby made to that certain LETTER AGREEMENT, dated as of  November 14, 2018 (the "Letter Agreement"), by and among MEDLEY LLC, a Delaware limited  liability company ("Borrower"), the lenders identified on the signature pages thereof (such lenders,  together with their respective successors and assigns, are referred to hereinafter each individually  as a "Lender" and collectively as the "Lenders"), and CITY NATIONAL BANK, a national  banking association ("CNB"), as administrative agent and collateral agent for the Lenders and the  Bank Product Providers (in such capacity, together with its successors and assigns in such capacity,  "Agent"). All initially capitalized terms used herein but not otherwise defined herein shall have the  meanings ascribed to them in that certain Credit Agreement dated as of August 14, 2014 (as  amended, restated, supplemented or otherwise modified from time to time, the "Credit  Agreement"), by and Among Borrower, the Lenders and Agents. The undersigned Guarantors  each hereby (a) represents and warrants to Agent that the execution, delivery, and performance of  this Reaffirmation and Consent are within its powers, have been duly authorized by all necessary  action, and are not in contravention of any law, rule, or regulation, or any order, judgment, decree,  writ, injunction, or award of any arbitrator, court, or Governmental Authority, or of the terms of its  Organizational Documents, or of any contract or undertaking to which it is a party or by which any  of its properties may be bound or affected; (b) consents to the amendments of the Credit  Agreement and the consents set forth in the Letter Agreement; ( c) acknowledges and reaffirms its  obligations owing to the Agents and the Lenders under any Loan Documents to which it is a party;  ( d) reaffirms, acknowledges and agrees that it has granted to Collateral Agent a perfected security  interest in the Collateral in order to secure all of its present and future Indebtedness under the Loan  Documents to which it is a party; (e)  restates, ratifies and reaffirms each and every term and  condition set forth in the Credit Agreement and other Loan Documents to which it is a party  effective as of the date of the Letter Agreement; (f) confirms that all Indebtedness of the  Guarantors evidenced by the Loan Documents to which they are a party are unconditionally owing  by it to Agents and the Lenders, without offset, defense, withholding, counterclaim or deduction of  any kind, nature or description whatsoever; and (g) agrees that each of the Loan Documents to  which it is a party is and shall remain in full force and effect. Although each of the undersigned  has been informed of the matters set forth herein and has acknowledged and agreed to same, they  each understand that neither any Agent nor any Lender has any obligation to inform it of such  matters in the future or to seek its acknowledgment or agreement to future amendments, and  nothing herein shall create such a duty. Delivery of an executed counterpart of this Reaffirmation  and Consent by telefacsimile or other electronic method of transmission shall be equally as  effective as delivery of an original executed counterpart of this Reaffirmation and Consent. Any  party delivering an executed counterpart of this Reaffirmation and Consent by telefacsimile or  other electronic method of transmission also shall deliver an original executed counterpart of this  Reaffirmation and Consent but the failure to deliver an original executed counterpart shall not  affect the validity, enforceability, and binding effect of this Reaffirmation and Consent. This  Reaffirmation and Consent shall be governedby  the laws of the State of New York.                                 [Signature page follows]    LEGAL_US_W # 96205864.9 38468.00116cnbmedleywaivertocredita

                               November 14, 2018   Medley LLC  280 Park A venue, 6th Floor East  New York, NY 10017         Re: Waiver to Credit Agreement   Ladies and Gentlemen:         We  refer to that certain Credit Agreement, dated as of August 19, 2014 (as amended,  restated, supplemented or otherwise modified from time to time, the "Credit Agreement"), by  and among Medley LLC, a Delaware limited liability company (the "Borrower" or "you"), the  lenders from time to time party thereto (the "Lenders"), and City National Bank, a national  banking association, in its capacity as the administrative agent (the "Administrative Agent") and  in its capacity as the collateral agent  for the Lenders (the "Administrative Agent" and the  "Collateral Agent", collectively  "Agents").  Capitalized terms used herein and not otherwise  defined shall have the meanings assigned to such terms in the Credit Agreement.         As of the Closing Date, SIC Advisors LLC ("SIC Advisors") was a Non-Guarantor  Subsidiary. On August 9, 2018, SIC Advisors became a Wholly Owned Subsidiary of the  Borrower. Pursuant to Sections 5.12 and 7.0l(e) of the Credit Agreement, the Borrower is  required to cause any Non-Guarantor Subsidiary to execute and deliver the Guarantee and  Collateral Agreement and each applicable Security Document within 30 days following the date  on such Non-Guarantor Subsidiary becomes a Wholly Owned Subsidiary. Pursuant to Section  7 .16 of the Guarantee and Collateral Agreement, any Subsidiary that is required to become a  party thereto pursuant to Section  5.12 of the Credit Agreement shall execute and deliver the  supplement (the "Supplement") to become a Subsidiary Guarantor and a Grantor thereunder. As  of the date of this letter, SIC Advisors has not yet executed and delivered the Supplement, which  constitutes an Event of Default under Section 7.0l(e) of the Credit Agreement (the "Specified  Event of Default").         At the request of the Borrower, and in accordance with the Credit Agreement, subject to  the receipt of a Supplement executed and delivered by SIC Advisors in form and substance  satisfactory to Agent, the Agents and Lenders hereby waive the Specified Event of Default. The  waiver set forth in this paragraph will be effective upon execution of this letter by the Borrower,  Agents, and the Lenders, and the execution and delivery by SIC Advisors of the Supplement to  Agent.         The waiver set forth above is limited solely to the Specified Event of Default and shall  not be deemed to be a consent to or waiver of any other Default or Event of Default or an  amendment of any other provision of the Credit Agreement or any other Loan Documents. As    LEGAL US W # 96469119.2 38468.00116cnbmedleysupplementno4to

          SUPPLEMENT NO. 4 TO GUARANTEE AND COLLATERAL AGREEMENT                SUPPLEMENT  NO.  4  (this  “Supplement”)  dated  as  of  November  14,  2018  to  the  Guarantee  and  Collateral  Agreement  dated  as  of  August  19,  2014 (as  amended,  supplemented  or  otherwise modified from time to time, the “Guarantee and Collateral Agreement”), among MEDLEY  LLC, a Delaware limited liability company (the “Borrower”), each Subsidiary of the Borrower from time  to time party thereto (each such Subsidiary individually, a “Subsidiary Guarantor” and collectively, the  “Subsidiary Guarantors”; the Subsidiary Guarantors, the Borrower are referred to collectively herein as  the  “Grantors”)  and  CITY  NATIONAL  BANK,  a  national  banking  association  (together with its  affiliates, “CNB”), as collateral agent (in such capacity, the “Collateral Agent”) for the Secured Parties  (as defined therein).                A.     Reference  is  made  to  the  Credit  Agreement  dated  as  of  August  19,  2014  (as  amended,  amended  and  restated, supplemented  or  otherwise  modified from time to time, the “Credit  Agreement”), among the Borrower, the lenders from time to time party thereto (the “Lenders”) and CNB,  as administrative agent for the Lenders and as Collateral Agent.                B.     Capitalized  terms  used  herein  and  not  otherwise  defined  herein  shall  have  the  meanings  assigned  to  such  terms  in  the  Credit  Agreement  or  the Guarantee  and  Collateral  Agreement  referred to therein, as applicable.                C.     The Grantors have entered into the Guarantee and Collateral Agreement in order  to induce the Lenders to make Loans. Section 7.16 of the Guarantee and Collateral Agreement provides  that additional Subsidiaries of the Borrower may become Subsidiary Guarantors and Grantors under the  Guarantee  and  Collateral  Agreement  by  execution  and  delivery  of  an  instrument  in  the  form  of  this  Supplement.  The  undersigned  Subsidiary  (the  “New Subsidiary”)  is  executing  this  Supplement  in  accordance  with  the  requirements  of  the  Credit  Agreement  to  become  a  Subsidiary  Guarantor  and  a  Grantor under the Guarantee and Collateral Agreement in order to induce the Lenders to make additional  Loans (if any) and as consideration for Loans previously made.                Accordingly, the Collateral Agent and the New Subsidiary agree as follows:                SECTION 1.   In  accordance  with  Section 7.16  of  the  Guarantee  and  Collateral  Agreement,  the  New  Subsidiary  by  its  signature  below  becomes  a Grantor  and  Subsidiary  Guarantor  under  the  Guarantee  and  Collateral  Agreement  with  the  same  force  and  effect  as  if  originally  named  therein as a Grantor and Subsidiary Guarantor and the New Subsidiary hereby (a) agrees to all the terms  and provisions of the Guarantee and Collateral Agreement applicable to it as a Grantor and Subsidiary  Guarantor thereunder and (b) represents and warrants that the representations and warranties made by it  as  a  Grantor  and  Subsidiary  Guarantor  thereunder  are  true  and  correct  on  and  as  of  the  date  hereof  (including,  for  the  avoidance  of  doubt,  the  representations  and  warranties  in  Section  4.02(d),  without  giving effect to any references therein to the Closing Date or any Credit Event; provided, that Schedule III  attached hereto shall be deemed to be “Schedule III” for purposes of such representations and warranties).  In furtherance of the foregoing, the New Subsidiary, as security for the payment and performance in full  of the Obligations (as defined in the Guarantee and Collateral Agreement), does hereby create and grant  to  the  Collateral  Agent,  its  successors  and  assigns,  for  the  ratable  benefit  of  the  Secured  Parties,  their  successors  and  assigns,  a  security  interest  in  and  lien  on  all of  the  New  Subsidiary’s  right,  title  and  interest  in  and  to  the  Collateral  (as  defined  in  the  Guarantee and  Collateral  Agreement)  of  the  New  Subsidiary. Each reference to a “Grantor” or a “Subsidiary Guarantor” in the Guarantee and Collateral  Agreement shall be deemed to include the New Subsidiary. The Guarantee and Collateral Agreement is  hereby incorporated herein by reference.    LEGAL_US_W # 96412860.2

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