Document:

Advisory Agreement between the registrant and FundCore Advisor LLC

 Exhibit 10.1 

 
  

ADVISORY AGREEMENT 

by and between 

FundCore Institutional Income Trust Inc. 

and 

FundCore Advisor LLC 

Dated as of October 5, 2010 
  

 

 ADVISORY AGREEMENT, dated as of October 5, 2010, by and between FundCore Institutional
Income Trust Inc., a Maryland corporation (the “Company”), and FundCore Advisor LLC, a Delaware limited liability company (the “Advisor”). 

W I T N E S S E T H: 

WHEREAS, the Company is a newly formed corporation which intends to invest in Target Assets (as defined below) and intends to qualify as
a real estate investment trust for federal income tax purposes and will elect to receive the tax benefits accorded by Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”); and 

WHEREAS, the Company desires to retain the Advisor to administer the business activities and day-to-day operations of the Company and to
perform services for the Company in the manner and on the terms set forth herein and the Advisor wishes to be retained to provide such services. 

NOW THEREFORE, in consideration of the premises and agreements hereinafter set forth, the parties hereto hereby agree as follows:

 Section 1. Definitions. 

(a) The following terms shall have the meanings set forth in this Section 1(a): 

“Advisor” has the meaning set forth in the Recitals. 

“Advisor Change of Control” means a change in the direct or indirect (i) beneficial ownership of
more than fifty percent (50%) of the combined voting power of the Advisor’s then-outstanding equity interests, or (ii) power to direct or control the management policies of the Advisor, whether through the ownership of beneficial
equity interests, common directors or officers, by contract or otherwise. Advisor Change of Control shall not include (i) public offerings of the equity interests of the Advisor, or (ii) any assignment of this Agreement by the Advisor as
permitted hereby and in accordance with the terms hereof. 
 “Advisor Indemnified Party” has the
meaning set forth in Section 8(a) hereof. 
 “Advisor Permitted Disclosure Parties” has the
meaning set forth in Section 5(a) hereof. 

 “Affiliate” means (i) any Person directly or
indirectly controlling, controlled by, or under common control with such other Person, (ii) any executive officer or general partner of such other Person, (iii) any member of the board of directors or board of managers (or bodies
performing similar functions) of such Person, and (iv) any legal entity for which such Person acts as an executive officer or general partner. 

“Agreement” means this Advisory Agreement, as amended, supplemented or otherwise modified from time to
time. 
 “Asset Management Fee” means a monthly fee equal to one-twelfth of 1.0% of the sum of
the Cost Basis of all investments (including, for the avoidance of doubt, short-term, highly liquid investments) and cash in the Company’s portfolio on the last day of each month, excluding net proceeds from the Initial Public Offering prior to
the initial investment (including investment in short-term, highly liquid investments) of such proceeds. 

“Automatic Renewal Term” has the meaning set forth in Section 10(a) hereof. 

“Bankruptcy” means, with respect to any Person, (a) the filing by such Person of a voluntary
petition seeking liquidation, reorganization, arrangement or readjustment, in any form, of its debts under Title 11 of the United States Code or any other U.S. federal or state or foreign insolvency law, or such Person’s filing an answer
consenting to or acquiescing in any such petition, (b) the making by such Person of any assignment for the benefit of its creditors, (c) the expiration of 60 days after the filing of an involuntary petition under Title 11 of the Unites
States Code, an application for the appointment of a receiver for a material portion of the assets of such Person, or an involuntary petition seeking liquidation, reorganization, arrangement or readjustment of its debts under any other U.S. federal
or state or foreign insolvency law, provided that the same shall not have been vacated, set aside or stayed within such 60-day period or (d) the entry against such Person of a final and non-appealable order for relief under any
bankruptcy, insolvency or similar law now or hereinafter in effect. 
 “Board” means the board
of directors of the Company. 
 “Bona Fide Due Diligence Expenses” means the bona fide due
diligence expenses of the Primary Dealer and Soliciting Dealers, including legal fees, travel, lodging, meals and other reasonable out-of-pocket expenses incurred by their personnel and agents when visiting the Company’s office to verify
information related to the Company and the Initial Public Offering and, in some cases, reimbursement of the allocable share of out-of-pocket internal due diligence personnel of the Soliciting Dealers conducting due diligence on the Initial Public
Offering. 
  

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 “Borrower Generated Fees” means any origination or similar
fees paid by the applicable borrower at the time a debt investment is made. 
 “Business Day”
means any day except a Saturday, a Sunday or a day on which banking institutions in New York, New York are not required to be open. 

“Cause” has the meaning set forth in Section 10(b) hereof. 

“Claim” has the meaning set forth in Section 8(c) hereof. 

“Code” has the meaning set forth in the Recitals. 

“Common Stock” means the common stock, par value $0.01 per share, of the Company. 

“Company” has the meaning set forth in the Recitals. 

“Company Indemnified Party” has meaning set forth in Section 8(b) hereof. 

“Conduct Policies” has the meaning set forth in Section 2(l) hereof. 

“Confidential Information” has the meaning set forth in Section 5 hereof. 

“Cost Basis” means the total amount actually paid or allocated (as of the date of origination or
acquisition) with respect to the origination or acquisition of an investment, including without limitation acquisition expenses the Company capitalizes and any debt attributable to such investment. 

“Deferred Sales Commission” means an annual deferred sales commission of up to 1.0% of the gross proceeds
from the sale of Shares in the Initial Public Offering (not including Shares sold pursuant to the Company’s distribution reinvestment plan) payable to the Primary Dealer and to Soliciting Dealers with respect to Shares sold by them, provided,
however, that the aggregate Deferred Sales Commission paid to the Primary Dealer and Soliciting Dealers shall not exceed 5.0% of the gross offering proceeds the Company raises from the sale of Shares in the Initial Public Offering (not including
Shares sold pursuant to the Company’s distribution reinvestment plan). 
  

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 “Effective Date” means the date the Registration Statement
is initially declared effective by the SEC. 
 “Effective Termination Date” has the meaning set
forth in Section 10(b) hereof. 
 “Equity” means (a) the sum of (1) the net
proceeds from all issuances of the Company’s equity securities since inception (allocated on a pro rata basis for such issuances during the fiscal quarter of any such issuance), plus (2) the Company’s retained earnings at the end of
the most recently completed calendar quarter, less (b) any amount that the Company or any of its Subsidiaries has paid to redeem or repurchase the Company’s Common Stock since inception. Equity excludes (1) any unrealized gains and
losses and other non-cash items that have impacted stockholders’ equity as reported in the Company’s financial statements prepared in accordance with GAAP, and (2) one-time events pursuant to changes in GAAP, and certain non-cash
items not otherwise described above, in each case after discussions between the Advisor and the Independent Directors and approval by a majority of the Independent Directors. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“FINRA” means the Financial Industry Regulatory Authority, Inc. 

“GAAP” means generally accepted accounting principles in effect in the United States on the date such
principles are applied. 
 “Governing Instruments” means, with regard to any entity, the
articles of incorporation or certificate of incorporation and bylaws in the case of a corporation, the partnership agreement in the case of a general or limited partnership, the certificate of formation and operating agreement in the case of a
limited liability company, the trust instrument in the case of a trust, or similar governing documents, in each case as amended. 

“Indemnified Party” has the meaning set forth in Section 8(b) hereof. 

“Independent Director” means a member of the Board who is “independent” in accordance with the
Company’s Governing Instruments and the rules of the New York Stock Exchange. 
 “Initial Public
Offering” means the Company’s sale of share of its Common Stock pursuant to the Company’s Registration Statement. 
  

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 “Initial Term” has the meaning set forth in
Section 10(a) hereof. 
 “Investment Committee” means the investment committee formed by
the Advisor, the members of which shall consist of officers or employees of the Advisor and its Affiliates and may change from time to time. 

“Investment Company Act” means the Investment Company Act of 1940, as amended. 

“Investment Advisors Act” means the Investment Advisers Act of 1940, as amended. 

“Investment Guidelines” means the investment guidelines approved by the Board, a copy of which is
attached hereto as Exhibit A, as the same may be amended, restated, modified, supplemented or waived pursuant to the approval of a majority of the entire Board (which must include a majority of the Independent Directors). 

“Losses” has the meaning set forth in Section 8(a) hereof. 

“Notice of Proposal to Negotiate” has the meaning set forth in Section 10(c) hereof. 

“Offering Period” shall have the meaning ascribed to it in the Registration Statement. 

“Offering Period Termination Date” means the date on which the Offering Period Terminates. 

“Operations Commencement Date” means the date on which the Company authorizes the release of the proceeds
from the Initial Public Offering from escrow. 
 “Organizational and Offering Expenses” means
any and all costs and expenses, other than the Deferred Sales Commission, incurred by the Advisor or any Affiliate in connection with the formation, qualification and registration of the Company and the marketing and distribution of Shares,
including, without limitation, the following: attorneys’ fees (including fees of the primary dealer’s attorneys), expenses for printing, engraving, mailing and distribution costs, all advertising and marketing expenses, charges of third
party service providers (including transfer agents, registrars, trustees, escrow holders, depositories and experts) and expenses and taxes related to the filing, registration and qualification of the sale of the Shares under federal and state laws.

  

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 “Person” means any natural person, corporation,
partnership, association, limited liability company, estate, trust or joint venture, any federal, state, county or municipal government or any bureau, department or agency thereof or any other legal entity and any fiduciary acting in such capacity
on behalf of the foregoing. 
 “Primary Dealer” means Integrity Investments, Inc. or such other
Person or entity selected by the Board of Directors to act as the primary dealer for the Initial Public Offering. 

“Prospectus” means the Company’s prospectus, dated
            , 2010. 
 “Registration
Statement” means the Company’s Registration Statement on Form S-11 (No. 333-167420), as amended from time to time. 

“Regulation FD” means Regulation FD as promulgated by the SEC. 

“REIT” means a “real estate investment trust” as defined under the Code. 

“SEC” means the United States Securities and Exchange Commission. 

“Securities Act” means the Securities Act of 1933, as amended. 

“Shares” means shares of the Common Stock of the Company. 

“Soliciting Dealers” means broker-dealers who are members of FINRA and have executed selected dealer
agreements with the Primary Dealer to sell Shares. 
 “Subsidiary” means (i) any subsidiary
of the Company, (ii) any partnership the general partner of which is the Company or any subsidiary of the Company, and (iii) any limited liability company the managing member of which is the Company or any subsidiary of the Company.

  

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 “Target Assets” means the types of assets described under
“Business—Our Investment Strategy” in the Prospectus, subject to, and including, any changes to the Company’s Investment Guidelines that may be approved by the Advisor and the Company from time to time. 

“Termination Fee” means a termination fee equal to three (3) times the aggregate amount of the Asset
Management Fee earned by the Advisor during the 12-month period immediately preceding the most recently completed month prior to the Effective Termination Date. 

“Termination Notice” has the meaning set forth in Section 10(b) hereof. 

“Termination Without Cause” has the meaning set forth in Section 10(b) hereof. 

(b) As used herein, accounting terms relating to the Company and its Subsidiaries, if any, not defined in Section 1(a) and
accounting terms partly defined in Section 1(a), to the extent not defined, shall have the respective meanings given to them under GAAP. 

(c) The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section references are to this Agreement unless otherwise specified. 

(d) The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. The
words include, includes and including shall be deemed to be followed by the phrase “without limitation.” 

Section 2. Appointment and Duties of the Advisor. 

(a) The Company hereby appoints the Advisor to manage the investments and day-to-day operations of the Company and its Subsidiaries,
subject at all times to the further terms and conditions set forth in this Agreement and to the supervision of, and such further limitations or parameters as may be imposed from time to time by, the Board. The Advisor hereby agrees to use its
commercially reasonable efforts to perform each of the duties set forth herein, provided that funds are made available by the Company for such purposes as set forth in Section 7 hereof. The appointment of the Advisor shall be exclusive to the
Advisor, except to the extent that the Advisor elects, in its sole and absolute discretion, subject to the terms of this Agreement, to cause the duties of the Advisor as set forth herein to be provided by third parties, so long as the Advisor
remains responsible for the performance of such duties. 
  

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 (b) The Advisor, in its capacity as manager of the investments and the operations of the
Company, at all times will be subject to the supervision and direction of the Board and will have only such functions and authority as the Board may delegate to it, including, without limitation, managing the Company’s business affairs in
conformity with the Investment Guidelines and other policies that are approved and monitored by the Board. The Company and Advisor hereby acknowledge the recommendation by the Advisor and the approval by the Board, of the Investment Guidelines,
including, but not limited to, the Company’s investment strategy in the Target Assets. The Company and the Advisor hereby acknowledge and agree that, during the term of this Agreement, any proposed changes to the Company’s investment
strategy that would modify or expand the Target Assets may only be recommended by the Advisor and shall require the approval of the Board and the Advisor. 

(c) The Advisor will be responsible for the day-to-day operations of the Company (which, for purposes of the Advisor’s
responsibilities in this Agreement, includes its Subsidiaries) and will perform (or cause to be performed) such services and activities relating to the investments and operations of the Company as may be appropriate, which may include, without
limitation: 
 (i) forming the Investment Committee, which will have the following responsibilities:
(A) proposing modifications to the Investment Guidelines to the Board, (B) reviewing the Company’s investment portfolio for compliance with the Investment Guidelines on a quarterly basis, (C) reviewing the diversification of the
Company’s investment portfolio and the Company’s hedging and financing strategies on a quarterly basis, and (D) conducting or overseeing the provision of the services set forth in this Section 2; 

(ii) serving as the Company’s consultant with respect to the periodic review of the Investment Guidelines and other
parameters for the Company’s investments, financing activities and operations; 
 (iii) investigating,
analyzing and selecting possible investment opportunities and acquiring or originating, financing, retaining, selling, restructuring or disposing of investments consistent with the Investment Guidelines; 

(iv) with respect to prospective purchases, sales or exchanges of investments, conducting negotiations on the
Company’s behalf with sellers, purchasers and brokers and, if applicable, their respective agents and representatives; 

(v) negotiating and entering into, on the Company’s behalf, repurchase agreements, interest rate swap agreements, and
other agreements and instruments required for the Company to conduct the Company’s business; 
  

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 (vi) engaging and supervising, on the Company’s behalf and at the
Company’s expense, independent contractors that provide investment banking, securities brokerage, mortgage brokerage, other financial services, due diligence services, underwriting review services, legal and accounting services, and all other
services (including transfer agent and registrar services) as may be required relating to the Company’s operations or investments (or potential investments); 

(vii) coordinating and managing operations of any joint venture or co-investment interests held by the Company and
conducting all matters with the joint venture or co-investment partners; 
 (viii) providing executive and
administrative personnel, office space and office services required in rendering services to the Company; 
 (ix)
administering the day-to-day operations and performing and supervising the performance of such other administrative functions necessary to the Company’s management as may be agreed upon by the Advisor and the Board, including, without
limitation, the collection of revenues and the payment of the Company’s debts and obligations and maintenance of appropriate computer services to perform such administrative functions; 

(x) communicating on the Company’s behalf with the holders of any of the Company’s equity or debt securities as
required to satisfy the reporting and other requirements of any governmental bodies or agencies or trading markets and to maintain effective relations with such holders; 

(xi) counseling the Company in connection with policy decisions to be made by the Board; 

(xii) evaluating and recommending to the Board hedging strategies and engaging in hedging activities on the Company’s
behalf, consistent with the Company’s qualification as a REIT and with the Investment Guidelines; 
 (xiii)
counseling the Company regarding the maintenance of the Company’s qualification as a REIT and monitoring compliance with the various REIT qualification tests and other rules set out in the Code and Treasury Regulations thereunder and using
commercially reasonable efforts to cause the Company to qualify for taxation as a REIT; 
 (xiv) counseling the
Company regarding the maintenance of the Company’s exemption from the status of an investment company required to register under the Investment Company Act, monitoring compliance with the requirements for maintaining such exemption and using
commercially reasonable efforts to cause the Company to maintain such exemption from such status; 
  

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 (xv) furnishing reports and statistical and economic research to the Company
regarding the Company’s activities and services performed for the Company by the Advisor; 
 (xvi)
monitoring the operating performance of the Company’s investments and providing periodic reports with respect thereto to the Board, including comparative information with respect to such operating performance and budgeted or projected operating
results; 
 (xvii) investing and reinvesting any moneys and securities of the Company (including investing in
short-term investments pending investment in other investments, payment of fees, costs and expenses, or payments of dividends or distributions to the Company’s stockholders and partners) and advising the Company as to the Company’s capital
structure and capital raising; 
 (xviii) causing the Company to retain qualified accountants and legal counsel,
as applicable, to assist in developing appropriate accounting procedures and systems, internal controls and other compliance procedures and testing systems with respect to financial reporting obligations and compliance with the provisions of the
Code applicable to REITs and, if applicable, taxable REIT subsidiaries, and to conduct quarterly compliance reviews with respect thereto; 

(xix) assisting the Company in qualifying to do business in all applicable jurisdictions and to obtain and maintain all
appropriate licenses; 
 (xx) assisting the Company in complying with all regulatory requirements applicable to
the Company in respect of the Company’s business activities, including preparing or causing to be prepared all financial statements required under applicable regulations and contractual undertakings and all reports and documents, if any,
required under the Exchange Act or the Securities Act; 
 (xxi) assisting the Company in taking all necessary
action to enable the Company to make required tax filings and reports, including soliciting information from stockholders to the extent required by the provisions of the Code applicable to REITs; 

(xxii) placing, or arranging for the placement of, all orders pursuant to the Advisor’s investment determinations for
the Company either directly with the borrower, issuer or with a broker or dealer (including any affiliated broker or dealer); 
  

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 (xxiii) handling and resolving all claims, disputes or controversies
(including all litigation, arbitration, settlement or other proceedings or negotiations) in which the Company may be involved or to which the Company may be subject arising out of the Company’s day-to-day operations (other than with the Advisor
or its Affiliates), subject to such limitations or parameters as may be imposed from time to time by the Board; 

(xxiv) using commercially reasonable efforts to cause expenses incurred by the Company or on the Company’s behalf to
be commercially reasonable or commercially customary and within any budgeted parameters or expense guidelines set by the Board from time to time; 

(xxv) advising the Company with respect to and structuring long-term financing vehicles for the Company’s portfolio
of assets, and offering and selling securities publicly or privately in connection with any such structured financing; 

(xxvi) serving as the Company’s consultant with respect to decisions regarding any of the Company’s financings,
hedging activities or borrowings undertaken by the Company, including (1) assisting the Company in developing criteria for debt and equity financing that is specifically tailored to the Company’s investment objectives, and
(2) advising the Company with respect to obtaining appropriate financing for the Company’s investments; 

(xxvii) providing the Company with portfolio management; 

(xxviii) arranging marketing materials, advertising, industry group activities (such as conference participations and
industry organization memberships) and other promotional efforts designed to promote the Company’s business; 

(xxix) performing such other services as may be required from time to time for management and other activities relating to
the Company’s assets and business as the Board shall reasonably request or the Advisor shall deem appropriate under the particular circumstances; and 

(xxx) using commercially reasonable efforts to cause the Company to comply with all applicable laws. 

(d) Subject to the periodic oversight of the Board, the Advisor may retain, for and on behalf, and at the sole cost and expense, of the
Company, such services of the persons and firms referred to in Section 7(b) hereof as the Advisor deems necessary or advisable in connection with the management and operations of the Company. In performing its duties under this Section 2,
the Advisor shall be entitled to rely reasonably on qualified experts and professionals (including, without limitation, accountants, legal counsel and other professional service providers) hired by the Advisor, subject to the periodic oversight of
the Board, at the Company’s sole cost and expense. 
  

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 (e) The Advisor shall refrain from any action that, in its sole judgment made in good
faith, (i) is not in compliance with the Investment Guidelines, (ii) would adversely and materially affect the qualification of the Company as a REIT under the Code or the Company’s status as an entity excluded from investment company
status under the Investment Company Act, or (iii) would violate any law, rule or regulation of any governmental body or agency having jurisdiction over the Company or that would otherwise not be permitted by the applicable Governing
Instruments. If the Advisor is ordered to take any action by the Board, the Advisor shall promptly notify the Board if it is the Advisor’s judgment that such action would adversely and materially affect such status or violate any such law, rule
or regulation or Governing Instruments. Notwithstanding the foregoing, neither the Advisor nor any of its Affiliates, nor any other Person providing sub-advisory services to the Advisor, shall be liable to the Company, the Board, or the
Company’s stockholders for any act or omission by the Advisor or any of its Affiliates, except as provided in Section 8 of this Agreement. 

(f) The Company (including the Board) agrees to take all actions reasonably required to permit and enable the Advisor to carry out its
duties and obligations under this Agreement, including, without limitation, all steps reasonably necessary to allow the Advisor to file any registration statement or other filing required to be made under the Securities Act, Exchange Act, Code or
other applicable law, rule or regulation on behalf of the Company in a timely manner. The Company further agrees to use commercially reasonable efforts to make available to the Advisor all resources, information and materials reasonably requested by
the Advisor to enable the Advisor to satisfy its obligations hereunder, including its obligations to deliver financial statements and any other information or reports with respect to the Company. 

(g) As frequently as the Advisor may deem reasonably necessary or advisable, or at the direction of the Board, the Advisor shall
prepare, or, at the sole cost and expense of the Company, cause to be prepared, any reports and other information relating to any proposed or consummated investment as may be reasonably requested by the Company. 

(i) The Advisor shall prepare, or, at the sole cost and expense of the Company, cause to be prepared, all reports,
financial or otherwise, with respect to the Company reasonably required by the Board in order for the Company to comply with its Governing Instruments, or any other materials required to be filed with any governmental body or agency, and shall
prepare, or, at the sole cost and expense of the Company, cause to be prepared, all materials and data necessary to complete such reports and other materials, including, without limitation, an annual audit of the Company’s books of account by a
nationally recognized independent accounting firm. 
  

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 (ii) The Advisor shall prepare, or, at the sole cost and expense to the
Company, cause to be prepared, regular reports for the Board to enable the Board to review the Company’s acquisitions, portfolio composition and characteristics, credit quality, performance and compliance with the Investment Guidelines and
policies approved by the Board. 
 (h) Officers, employees and agents of the Advisor and its Affiliates may serve as directors,
officers, agents, nominees or signatories for the Company or any of its Subsidiaries, to the extent permitted by their Governing Instruments, by any resolutions duly adopted by the Board. When executing documents or otherwise acting in such
capacities for the Company or any of its Subsidiaries, such Persons shall indicate in what capacity they are executing on behalf of the Company or any of its Subsidiaries. Without limiting the foregoing, while this Agreement is in effect, the
Advisor will provide the Company with a management team, including a Chief Executive Officer and President or similar positions, along with appropriate support personnel, to provide the management services to be provided by the Advisor to the
Company hereunder, who shall devote such of their time to the management of the Company as necessary and appropriate, commensurate with the level of activity of the Company from time to time. 

(i) The Advisor, at its sole cost and expense, shall provide personnel for service on the Investment Committee. 

(j) The Advisor, at its sole cost and expense, shall maintain reasonable and customary “errors and omissions” insurance
coverage and other customary insurance coverage in respect to its obligations and activities under, or pursuant to, this Agreement. 

(k) The Advisor, at its sole cost and expense, shall provide such internal audit, compliance and control services as may be required for
the Company to comply with applicable law (including the Securities Act and Exchange Act), regulation (including SEC regulations) and as otherwise reasonably requested by the Company or its Board from time to time. 

(l) The Advisor acknowledges receipt of the Company’s Code of Business Conduct and Ethics (collectively, the “Conduct
Policies”) and agrees to require the persons who provide services to the Company to comply with such Conduct Policies in the performance of such services hereunder or such comparable policies as shall in substance hold such persons to at least
the standards of conduct set forth in the Conduct Policies. 
 (m) The Advisor shall be responsible for paying a Deferred Sales
Commission to the Primary Dealer and Soliciting Dealers in accordance with the terms of the agreements with the Primary Dealer and with each Soliciting Dealer. 
  

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 (n) The Advisor shall initially be responsible for payment of the Company’s
Organizational and Offering Expenses and Bona Fide Due Diligence Expenses, subject to reimbursement from the Company pursuant to Section 7(b)(i) below. 

Section 3. Additional Activities of the Advisor; Non-Solicitation; Restrictions. 

(a) Except as provided in the last sentence of this Section 3(a) and/or the Investment Guidelines, nothing in this Agreement shall
(i) prevent the Advisor or any of its Affiliates, officers, directors or employees, from engaging in other businesses or from rendering services of any kind to any other Person or entity, whether or not the investment objectives or policies of
any such other Person or entity are similar to those of the Company or (ii) in any way bind or restrict the Advisor or any of its Affiliates, officers, directors or employees from buying, selling or trading any securities or commodities for
their own accounts or for the account of others for whom the Advisor or any of its Affiliates, officers, directors or employees may be acting. While information and recommendations supplied to the Company shall, in the Advisor’s reasonable and
good faith judgment, be appropriate under the circumstances and in light of the investment objectives and policies of the Company, they may be different from the information and recommendations supplied by the Advisor or any Affiliate of the Advisor
to others. The Company shall be entitled to equitable treatment under the circumstances in receiving information, recommendations and any other services, but the Company recognizes that it is not entitled to receive preferential treatment as
compared with the treatment given by the Advisor or any Affiliate of the Advisor to others. The Company shall have the benefit of the Advisor’s best judgment and effort in rendering services hereunder and, in furtherance of the foregoing, the
Advisor shall not undertake activities that, in its good faith judgment, will adversely affect the performance of its obligations under this Agreement. 

(b) In the event of a Termination Without Cause of this Agreement by the Company pursuant to Section 10(b) hereof, for two
(2) years after such termination of this Agreement, the Company shall not, without the consent of the Advisor, employ or otherwise retain any employee of the Advisor or any of its Affiliates or any person who has been employed by the Advisor or
any of its Affiliates at any time within the two (2) year period immediately preceding the date on which such person commences employment with or is otherwise retained by the Company. The Company acknowledges and agrees that, in addition to any
damages, the Advisor shall be entitled to equitable relief for any violation of this Section 3(b) by the Company, including, without limitation, injunctive relief. 

Section 4. Bank Accounts. At the direction of the Board, the Advisor may establish and maintain one or more bank accounts in
the name of the Company or any Subsidiary, and may collect and deposit into any such account or accounts, and disburse funds from any such account or accounts, under such terms and conditions as the Board may approve; and the Advisor shall from time
to time render appropriate accountings of such collections and payments to the Board and, upon request, to the auditors of the Company or any Subsidiary. 
  

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 Section 5. Records; Confidentiality. 

The Advisor shall maintain appropriate books of accounts and records relating to services performed hereunder, and such books of account
and records shall be accessible for inspection by representatives of the Company or any Subsidiary at any time during normal business hours. The Advisor shall keep confidential any and all non-public information, written or oral, obtained by it in
connection with the services rendered hereunder (“Confidential Information”) and shall not use Confidential Information except in furtherance of its duties under this Agreement or disclose Confidential Information, in whole or in
part, to any Person other than (i) to its Affiliates, officers, directors, employees, agents, representatives or advisors who need to know such Confidential Information for the purpose of rendering services hereunder, (ii) to appraisers,
financing sources and others in the ordinary course of the Company’s business ((i) and (ii) collectively, “Advisor Permitted Disclosure Parties”), (iii) in connection with any governmental or regulatory filings of the
Company or disclosure or presentations to Company investors (subject to compliance with Regulation FD), (iv) to governmental officials having jurisdiction over the Company, (v) as requested by law or legal process to which the Advisor or
any Person to whom disclosure is permitted hereunder is a party, or (vi) with the consent of the Company. The Advisor agrees to inform each of its Advisor Permitted Disclosure Parties of the non-public nature of the Confidential Information and
to obtain agreement from such Persons to treat such Confidential Information in accordance with the terms hereof. Nothing herein shall prevent the Advisor from disclosing Confidential Information (i) upon the order of any court or
administrative agency, (ii) upon the request or demand of, or pursuant to any law or regulation to, any regulatory agency or authority, (iii) to the extent reasonably required in connection with the exercise of any remedy hereunder, or
(iv) to its legal counsel or independent auditors; provided, however that with respect to clauses (i) and (ii), it is agreed that, so long as not legally prohibited, the Advisor will provide the Company with prompt written notice of
such order, request or demand so that the Company may seek, at its sole expense, an appropriate protective order and/or waive the Advisor’s compliance with the provisions of this Agreement. If, failing the entry of a protective order or the
receipt of a waiver hereunder, the Advisor is required to disclose Confidential Information, the Advisor may disclose only that portion of such information that is legally required without liability hereunder; provided, that the Advisor agrees to
exercise its reasonable best efforts to obtain reliable assurance that confidential treatment will be accorded such information. Notwithstanding anything herein to the contrary, each of the following shall be deemed to be excluded from provisions
hereof: any Confidential Information that (A) is available to the public from a source other than the Advisor, (B) is released in writing by the Company to the public (except to the extent exempt under Regulation FD) or to persons who are
not under similar obligation of confidentiality to the Company, or (C) is obtained by the Advisor from a third party which, to the best of the Advisor’s knowledge, does not constitute a breach by such third party of an obligation of
confidence with respect to the Confidential Information disclosed. The provisions of this Agreement shall survive the expiration or earlier termination of this Agreement for a period of one year. 

Section 6. Compensation. 

(a) For the services rendered under this Agreement, the Company shall pay the Asset Management Fee to the Advisor. The Asset Management
Fee shall be payable by the Company in cash and may be deferred, in whole or in part, from time to time, by the Advisor (without interest). 
  

 15 

 (b) The Advisor shall also receive as compensation for services rendered in connection with
this Agreement any Borrower Generated Fees not to exceed 1.00% of the value of the debt investment amount. The parties acknowledge and agree that Borrower Generated Fees represent fees paid by a borrower to the Advisor in respect of the
Advisor’s role in arranging a financing for the borrower. Borrower Generated Fees shall be paid by any borrower directly to the Advisor at the time a debt investment is made. The parties acknowledge and agree that the 1% threshold represents an
appropriate arm’s length fee in respect of the services performed by the Advisor in connection with arranging a financing on behalf of a borrower. 

(c) The Advisor shall calculate each monthly installment of the Asset Management Fee and deliver such calculation to the Company, within
thirty (30) days following the last day of each month. The Company shall pay the Advisor each installment of the Asset Management Fee within five (5) Business Days after the date of delivery to the Company of such computations. To the
extent that any Borrower Generated Fees exceed the threshold described in clause (b) above, the Advisor shall promptly pay any such amounts to the Company. 

(d) In the event the Advisor enters into strategic alliances with any Person that has specialized expertise and dedicated resources in
specific areas of real estate securities or debt-related investments as provided for in the Prospectus, the Company shall have no obligation to pay such Person any fees and expenses hereunder. To the extent, such Person performs services that would
entitle Advisor to any fees or expenses hereunder, any such fees will be paid by the Advisor (and not by the Company) to such Person out of the fees or expenses the Advisor receives from the Company pursuant to the terms of this Agreement.

 Section 7. Expenses of the Company. 

(a) The Advisor shall be responsible for the expenses related to any and all personnel of the Advisor and its Affiliates who provide
services to the Company pursuant to this Agreement (including, without limitation, each of the officers of the Company and any directors of the Company who are also directors, officers, employees or agents of the Advisor or any of its Affiliates),
including, without limitation, salaries, bonus and other wages, payroll taxes and the cost of employee benefit plans of such personnel, and costs of insurance with respect to such personnel. 

 

 16 

 (b) The Company shall pay all of its costs and expenses and shall reimburse the Advisor or
its Affiliates for expenses of the Advisor and its Affiliates incurred on behalf of the Company, excepting only those expenses that are specifically the responsibility of the Advisor pursuant to Section 7(a) of this Agreement. Without limiting
the generality of the foregoing, it is specifically agreed that the following costs and expenses of the Company or any Subsidiary shall be paid by the Company and shall not be paid by the Advisor or Affiliates of the Advisor: 

(i) the Company’s Organizational and Offering Expenses and Bona Fide Due Diligence Expenses; provided, however, that
the Advisor shall initially be responsible for payment of the Company’s Organizational and Offering Expenses and Bona Fide Due Diligence Expenses and the Company shall reimburse the Advisor for such Organizational and Offering Expenses and Bona
Fide Due Diligence Expenses by making monthly payments over the five year period commencing on the Offering Period Termination Date and ending on the fifth anniversary of the Effective Date; 

(ii) expenses in connection with the issuance and transaction costs incident to the acquisition or origination,
disposition and financing of the investments of the Company and its Subsidiaries; 
 (iii) costs of legal, tax,
accounting, consulting, auditing and other similar services rendered for the Company by providers retained by the Advisor; 

(iv) the compensation and expenses of the Company’s directors and the cost of liability insurance to indemnify the
Company’s directors and officers; 
 (v) costs associated with the establishment and maintenance of any of
the Company’s credit facilities, other financing arrangements, or other indebtedness of the Company (including commitment fees, accounting fees, legal fees, closing and other similar costs) or any of the Company’s securities offerings;

 (vi) expenses connected with communications to holders of the Company’s securities or of the Subsidiaries
and other bookkeeping and clerical work necessary in maintaining relations with holders of such securities and in complying with the continuous reporting and other requirements of governmental bodies or agencies, including, without limitation, all
costs of preparing and filing required reports with the SEC, costs of preparing, printing and mailing the Company’s annual report to the Company’s stockholders and proxy materials with respect to any meeting of the Company’s
stockholders; 
 (vii) expenses incurred by managers, officers, personnel and agents of the Advisor for travel on
the Company’s behalf and other out-of-pocket expenses incurred by managers, officers, personnel and agents of the Advisor in connection with the purchase, financing, refinancing, sale or other disposition of an investment or establishment and
maintenance of any of the Company’s securitizations or any of the Company’s securities offerings; 
  

 17 

 (viii) compensation and expenses of the Company’s custodian and
transfer agent, if any; 
 (ix) the costs of maintaining compliance with all federal, state and local rules and
regulations or any other regulatory agency; 
 (x) all taxes and license fees; 

(xi) all insurance costs incurred in connection with the operation of the Company’s business except for the costs
attributable to the insurance that the Advisor elects to carry for itself and its personnel; 
 (xii) costs and
expenses incurred in contracting with third parties, including third-party servicers who service the loans originated by the Company; 

(xiii) all other costs and expenses relating to the Company’s business and investment operations, including, without
limitation, the costs and expenses of acquiring, owning, protecting, maintaining, developing and disposing of investments, including appraisal, reporting, audit and legal fees; 

(xiv) expenses relating to any office(s) or office facilities, including, but not limited to, disaster backup recovery
sites and facilities, maintained for the Company or the investments of the Company and its Subsidiaries separate from the office or offices of the Advisor; 

(xv) expenses connected with the payments of interest, dividends or distributions in cash or any other form authorized or
caused to be made by the Board to or on account of holders of the Company’s securities or of the Subsidiaries, including, without limitation, in connection with any distribution reinvestment plan; 

 

 18 

 (xviii) any judgment or settlement of pending or threatened proceedings
(whether civil, criminal or otherwise) against the Company or any Subsidiary, or against any trustee, director, partner, member or officer of the Company or of any Subsidiary in his capacity as such for which the Company or any Subsidiary is
required to indemnify such trustee, director, partner, member or officer by any court or governmental agency; and 

(xix) all other expenses actually incurred by the Advisor (except as otherwise specified herein) which are reasonably
necessary for the performance by the Advisor of its duties and functions under this Agreement. 
 (c) Except as otherwise
provided herein, costs and expenses incurred by the Advisor on behalf of the Company shall be reimbursed monthly to the Advisor. The Advisor shall prepare a written statement in reasonable detail documenting the costs and expenses of the Company and
those incurred by the Advisor on behalf of the Company during each month, and shall deliver such written statement to the Company within thirty (30) days after the end of each month. Within thirty (30) days of the Offering Period
Termination Date, the Advisor shall prepare a written statement in reasonable detail documenting the Organizational and Offering Expenses and Bona Fide Due Diligence Expenses to be reimbursed pursuant to Section 7(b)(1) hereof. The Company
shall pay all amounts payable to the Advisor pursuant to this Section 7(c) within five (5) Business Days after the receipt of the written statement without demand, deduction, offset or delay. Cost and expense reimbursement to the Advisor
shall be subject to adjustment at the end of each calendar year in connection with the annual audit of the Company. Reimbursement of Bona Fide Due Diligence Expenses is contingent upon the receipt by the Advisor or the Primary Dealer of an invoice
or a similar such itemized statement that demonstrates the actual due diligence expenses incurred by that Soliciting Dealer. The provisions of this Section 7 shall survive the expiration or earlier termination of this Agreement to the extent
such expenses have previously been incurred or are incurred in connection with such expiration or termination. 

Section 8. Limits of the Advisor’s Responsibility. 

(a) The Advisor assumes no responsibility under this Agreement other than to render the services called for hereunder in good faith and
shall not be responsible for any action of the Board in following or declining to follow any advice or recommendations of the Advisor, including as set forth in the Investment Guidelines. The Advisor and its Affiliates, and the directors, officers,
employees and stockholders of the Advisor and its Affiliates, and any Person providing sub-advisory services to the Advisor, will not be liable to the Company, any Subsidiary, the Board, the Company’s stockholders or any Subsidiary’s
stockholders or partners for any acts or omissions by the Advisor or its officers, employees or Affiliates performed in accordance with and pursuant to this Agreement, except by reason of acts or omissions constituting bad faith, willful misconduct,
gross negligence or reckless disregard of their respective duties under this Agreement, as determined by a final non-appealable order of a court of competent jurisdiction. The Company shall, to the full extent lawful, reimburse, indemnify and hold
harmless the Advisor, its Affiliates, and the directors, officers, employees and stockholders of the Advisor and its Affiliates and any Person providing sub-advisory services to the Advisor (each, an “Advisor Indemnified Party”), of
and from any and all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever (including reasonable attorneys’ fees) (collectively “Losses”) in respect of or arising from any acts or
omissions of such Advisor Indemnified Party performed in good faith under this Agreement and not constituting bad faith, willful misconduct, gross negligence or reckless disregard of duties of such Advisor Indemnified Party under this Agreement. In
addition, the Advisor will not be liable for trade errors that may result from ordinary negligence, including, without limitation, errors in the investment decision-making process or in the trade process. 

 

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 (b) The Advisor shall, to the full extent lawful, reimburse, indemnify and hold harmless
the Company, and the directors, officers, personnel and agents of the Company and each Person, if any, controlling or controlled by the Company (each, a “Company Indemnified Party”; an Advisor Indemnified Party and a Company
Indemnified Party are each sometimes hereinafter referred to as an “Indemnified Party”) of and from any and all Losses in respect of or arising from (i) any acts or omissions of the Advisor constituting bad faith, willful
misconduct, gross negligence or reckless disregard of duties of the Advisor under this Agreement or (ii) any claims by the Advisor’s employees relating to the terms and conditions of their employment by the Advisor. 

(c) In case any such claim, suit, action or proceeding (a “Claim”) is brought against any Indemnified Party in respect
of which indemnification may be sought by such Indemnified Party pursuant hereto, the Indemnified Party shall give prompt written notice thereof to the indemnifying party, which notice shall include all documents and information in the possession of
or under the control of such Indemnified Party reasonably necessary for the evaluation and/or defense of such Claim and shall specifically state that indemnification for such Claim is being sought under this Section; provided, however, that
the failure of the Indemnified Party to so notify the indemnifying party shall not limit or affect such Indemnified Party’s rights other than pursuant to this Section. Upon receipt of such notice of Claim (together with such documents and
information from such Indemnified Party), the indemnifying party shall, at its sole cost and expense, in good faith defend any such Claim with counsel reasonably satisfactory to such Indemnified Party, which counsel may, without limiting the rights
of such Indemnified Party pursuant to the next succeeding sentence of this Section, also represent the indemnifying party in such investigation, action or proceeding. In the alternative, such Indemnified Party may elect to conduct the defense of the
Claim, if (i) such Indemnified Party reasonably determines that the conduct of its defense by the indemnifying party could be materially prejudicial to its interests, (ii) the indemnifying party refuses to assume such defense (or fails to
give written notice to the Indemnified Party within ten (10) days of receipt of a notice of Claim that the indemnifying party assumes such defense), or (iii) the indemnifying party shall have failed, in such Indemnified Party’s
reasonable judgment, to defend the Claim in good faith. The indemnifying party may settle any Claim against such Indemnified Party without such Indemnified Party’s consent, provided (i) such settlement is without any Losses whatsoever to
such Indemnified Party, (ii) the settlement does not include or require any admission of liability or culpability by such Indemnified Party and (iii) the indemnifying party obtains an effective written release of liability for such
Indemnified Party from the party to the Claim with whom such settlement is being made, which release must be reasonably acceptable to such Indemnified Party, and a dismissal with prejudice with respect to all claims made by the party against such
Indemnified Party in connection with such Claim. The applicable Indemnified Party shall reasonably cooperate with the indemnifying party, at the indemnifying party’s sole cost and expense, in connection with the defense or settlement of any
Claim in accordance with the terms hereof. If such Indemnified Party is entitled pursuant to this Section to elect to defend such Claim by counsel of its own choosing and so elects, then the indemnifying party shall be responsible for any good faith
settlement of such Claim entered into by such Indemnified Party. Except as provided in the immediately preceding sentence, no Indemnified Party may pay or settle any Claim and seek reimbursement therefor under this Section. 

 

 20 

 (d) Notwithstanding the foregoing, nothing in this Section 8 or elsewhere in this
Agreement shall constitute a waiver by either party of its legal rights under applicable U.S. federal securities laws or any other laws whose applicability is not permitted to be contractually waived. 

(e) The provisions of this Section 8 shall survive the expiration or earlier termination of this Agreement. 

Section 9. No Joint Venture. The Company and the Advisor are not partners or joint venturers with each other and nothing
herein shall be construed to make them such partners or joint venturers or impose any liability as such on either of them. 

Section 10. Term; Renewal; Termination Without Cause. 

(a) This Agreement shall become effective on the Effective Date and shall continue in operation, unless terminated in accordance with the
terms hereof, until the fifth anniversary of the Operations Commencement Date (the “Initial Term”). After the Initial Term, this Agreement shall be deemed renewed automatically each year for an additional one-year period (an
“Automatic Renewal Term”) unless the Company or the Advisor elects not to renew this Agreement in accordance with Section 10(b) or Section 10(d), respectively. 

(b) Notwithstanding any other provision of this Agreement to the contrary, upon the expiration of the Initial Term or any Automatic
Renewal Term and upon 180 days’ prior written notice to the Advisor (the “Termination Notice”), the Company may, without cause, in connection with the expiration of the Initial Term or the then-current Automatic Renewal Term,
decline to renew this Agreement (any such nonrenewal, a “Termination Without Cause”) upon the unanimous affirmative vote of the Independent Directors that (1) there has been unsatisfactory performance by the Advisor that is
materially detrimental to the Company and its Subsidiaries taken as a whole or (2) the Asset Management Fee and Borrower Generated Fees payable to the Advisor are not fair, subject to Section 10(c) below. In the event of a Termination
Without Cause, the Company shall pay the Advisor the Termination Fee before or on the last day of the Initial Term or such Automatic Renewal Term, as the case may be (the “Effective Termination Date”). The Company may terminate this
Agreement for cause pursuant to Section 12 hereof even after a Termination Notice and, in such case, no Termination Fee shall be payable. 
  

 21 

 (c) Notwithstanding the provisions of subsection (b) above, if the reason for
nonrenewal specified in the Company’s Termination Notice is that the Independent Directors have unanimously determined that the Asset Management Fee and Borrower Generated Fees payable to the Advisor are unfair, the Company shall not have the
foregoing nonrenewal right in the event the Advisor agrees that it will continue to perform its duties hereunder during the Automatic Renewal Term that would commence upon the expiration of the Initial Term or then-current Automatic Renewal Term at
a fee that the Independent Directors unanimously determine to be fair; provided, however, the Advisor shall have the right to renegotiate the Asset Management Fee and/or the Borrower Generated Fees by delivering to the Company, not less than
120 days prior to the pending Effective Termination Date, written notice (a “Notice of Proposal to Negotiate”) of its intention to renegotiate the Asset Management Fee and/or Borrower Generated Fees. Thereupon, the Company and the
Advisor shall endeavor to negotiate the Asset Management Fee and/or the Borrower Generated Fees in good faith. Provided that the Company and the Advisor agree to a revised Asset Management Fee, Borrower Generated Fees or other compensation structure
within sixty (60) days following the Company’s receipt of the Notice of Proposal to Negotiate, the Termination Notice from the Company shall be deemed of no force and effect, and this Agreement shall continue in full force and effect on
the terms stated herein, except that the Asset Management Fee, Borrower Generated Fees or other compensation structure shall be the revised Asset Management Fee, Borrower Generated Fees or other compensation structure as then agreed upon by the
Company and the Advisor. The Company and the Advisor agree to execute and deliver an amendment to this Agreement setting forth such revised Asset Management Fee, Borrower Generated Fees or other compensation structure promptly upon reaching an
agreement regarding same. In the event that the Company and the Advisor are unable to agree to a revised Asset Management Fee, Borrower Generated Fees or other compensation structure during such sixty (60) day period, this Agreement shall
terminate on the Effective Termination Date and the Company shall be obligated to pay the Advisor the Termination Fee upon the Effective Termination Date. 

(d) No later than 180 days prior to the expiration of the Initial Term or the then-current Automatic Renewal Term, the Advisor may
deliver written notice to the Company informing it of the Advisor’s intention to decline to renew this Agreement, whereupon this Agreement shall not be renewed and extended and this Agreement shall terminate effective on the anniversary date of
this Agreement next following the delivery of such notice. The Company is not required to pay to the Advisor the Termination Fee if the Advisor terminates this Agreement pursuant to this Section 10(d). 

(e) Except as set forth in this Section 10, a nonrenewal of this Agreement pursuant to this Section 10 shall be without any
further liability or obligation of either party to the other, except as provided in Section 3(b), Section 5, Section 7 and Section 8 of this Agreement. 
  

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 (f) The Advisor shall cooperate with the Company in executing an orderly transition of the
management of the Company’s consolidated assets to a new advisor. 
 Section 11. Assignments 

(a) Assignments by the Advisor. This Agreement shall terminate automatically without payment of the Termination Fee in the
event of its assignment, in whole or in part, by the Advisor, unless such assignment is consented to in writing by the Company with the consent of a majority of the Independent Directors. Any such permitted assignment shall bind the assignee under
this Agreement in the same manner as the Advisor is bound, and the Advisor shall be liable to the Company for all acts or omissions of the assignee under any such assignment. In addition, the assignee shall execute and deliver to the Company a
counterpart of this Agreement naming such assignee as the Advisor. Notwithstanding the foregoing, the Advisor may, without the approval of the Company’s Independent Directors, (i) assign this Agreement to an Affiliate of the Advisor and
(ii) delegate to one or more of its Affiliates the performance of any of its responsibilities hereunder so long as it remains liable for any such Affiliate’s performance, in each case so long as assignment or delegation does not require
the Company’s approval under the Investment Advisers Act (but if such approval is required, the Company shall not unreasonably withhold, condition or delay its consent). Nothing contained in this Agreement shall preclude any pledge,
hypothecation or other transfer of any amounts payable to the Advisor under this Agreement. 
 (b) Assignments by the
Company. This Agreement shall not be assigned by the Company without the prior written consent of the Advisor, except in the case of assignment by the Company to another REIT or other organization which is a successor (by merger, consolidation,
purchase of assets, or other transaction) to the Company, in which case such successor organization shall be bound under this Agreement and by the terms of such assignment in the same manner as the Company is bound under this Agreement. 

Section 12. Termination for Cause. 

(a) The Company may terminate this Agreement effective upon 30 days’ prior written notice of termination from the Company to the
Advisor, without payment of any Termination Fee, if (i) the Advisor, its agents or its assignees breaches any material provision of this Agreement and such breach shall continue for a period of 30 days after written notice thereof specifying
such breach and requesting that the same be remedied in such 30-day period (or 45 days after written notice of such breach if the Advisor takes steps to cure such breach within 30 days of the written notice), (ii) there is a commencement of any
proceeding relating to the Advisor’s Bankruptcy or insolvency, including an order for relief in an involuntary bankruptcy case or the Advisor authorizing or filing a voluntary bankruptcy petition, (iii) there occurs any Advisor Change of
Control resulting in fewer than three members of the Investment Committee, or their duly chosen successors, continuing to serve in such capacity, which a majority of the Independent Directors determines is materially detrimental to the Company and
its Subsidiaries taken as a whole, (iv) the dissolution of the Advisor, unless the Advisor is replaced with an Affiliate of the Advisor, or (v) the Advisor commits fraud against the Company, misappropriates or embezzles funds of the
Company, or acts, or fails to act, in a manner constituting bad faith, willful misconduct, gross negligence or reckless disregard in the performance of its duties under this Agreement; provided, however, that if any of the actions or
omissions described in this clause (v) are caused by an employee and/or officer of the Advisor or one of its Affiliates and the Advisor takes all necessary and appropriate action against such person and cures the damage caused by such actions
or omissions within 30 days of the Advisor actual knowledge of its commission or omission, the Company shall not have the right to terminate this Agreement pursuant to this Section 12(a)(v). 

 

 23 

 (b) The Advisor may terminate this Agreement effective upon 60 days’ prior written
notice of termination to the Company in the event that the Company shall default in the performance or observance of any material term, condition or covenant contained in this Agreement and such default shall continue for a period of 30 days after
written notice thereof specifying such default and requesting that the same be remedied in such 30-day period. The Company is required to pay to the Advisor the Termination Fee if the termination of this Agreement is made pursuant to this
Section 12(b). 
 (c) The Advisor may terminate this Agreement if the Company becomes required to register as an
investment company under the Investment Company Act, with such termination deemed to occur immediately before such event, in which case the Company shall not be required to pay the Termination Fee. 

Section 13. Action Upon Termination. From and after the effective date of termination of this Agreement pursuant to Sections
10, 11, or 12 of this Agreement, the Advisor shall not be entitled to compensation for further services hereunder, but shall be paid all compensation accruing to the date of termination and, if terminated pursuant to section 12(b) hereof or not
renewed pursuant to Section 10(b) hereof (subject to Section 10(c) hereof), the Termination Fee. Upon any such termination, the Advisor shall forthwith: 

(a) after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled, pay over to the Company or
a Subsidiary all money collected and held for the account of the Company or a Subsidiary pursuant to this Agreement; 
 (b)
deliver to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Board with respect to the
Company and any Subsidiaries; and 
 (c) deliver to the Board all property and documents of the Company and any Subsidiaries
then in the custody of the Advisor. 
  

 24 

 Section 14. Representations and Warranties. 

(a) The Company hereby represents and warrants to the Advisor as follows: 

(i) The Company is duly organized, validly existing and in good standing under the laws of the State of Maryland, has the
corporate power and authority and the legal right to own and operate its assets, to lease any property it may operate as lessee and to conduct the business in which it is now engaged and is duly qualified as a foreign corporation and in good
standing under the laws of each jurisdiction where its ownership or lease of property or the conduct of its business requires such qualification, except for failures to be so qualified, authorized or licensed that could not in the aggregate have a
material adverse effect on the business operations, assets or financial condition of the Company and its Subsidiaries, if any, taken as a whole. 

(ii) The Company has the corporate power and authority and the legal right to make, deliver and perform this Agreement and
all obligations required hereunder and has taken all necessary corporate action to authorize this Agreement on the terms and conditions hereof and the execution, delivery and performance of this Agreement and all obligations required hereunder. No
consent of any other Person, including stockholders and creditors of the Company, and no license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is
required by the Company in connection with this Agreement or the execution, delivery, performance, validity or enforceability of this Agreement and all obligations required hereunder. This Agreement has been, and each instrument or document required
hereunder will be, executed and delivered by a duly authorized officer of the Company, and this Agreement constitutes, and each instrument or document required hereunder when executed and delivered hereunder will constitute, the legally valid and
binding obligation of the Company enforceable against the Company in accordance with its terms. 
 (iii) The
execution, delivery and performance of this Agreement and the documents or instruments required hereunder will not violate any provision of any existing law or regulation binding on the Company, or any order, judgment, award or decree of any court,
arbitrator or governmental authority binding on the Company, or the Governing Instruments of, or any securities issued by the Company or of any mortgage, indenture, lease, contract or other agreement, instrument or undertaking to which the Company
is a party or by which the Company or any of its assets may be bound, the violation of which would have a material adverse effect on the business operations, assets or financial condition of the Company and its Subsidiaries, if any, taken as a
whole, and will not result in, or require, the creation or imposition of any lien on any of its property, assets or revenues pursuant to the provisions of any such mortgage, indenture, lease, contract or other agreement, instrument or undertaking.

  

 25 

 (b) The Advisor hereby represents and warrants to the Company as follows: 

(i) The Advisor is duly organized, validly existing and in good standing under the laws of the State of Delaware, has the
limited liability company power and authority and the legal right to own and operate its assets, to lease the property it operates as lessee and to conduct the business in which it is now engaged and is duly qualified as a foreign corporation and in
good standing under the laws of each jurisdiction where its ownership or lease of property or the conduct of its business requires such qualification, except for failures to be so qualified, authorized or licensed that could not in the aggregate
have a material adverse effect on the business operations, assets or financial condition of the Advisor. 
 (ii)
The Advisor has the limited liability company power and authority and the legal right to make, deliver and perform this Agreement and all obligations required hereunder and has taken all necessary limited liability company action to authorize this
Agreement on the terms and conditions hereof and the execution, delivery and performance of this Agreement and all obligations required hereunder. No consent of any other Person, including members and creditors of the Advisor, and no license,
permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required by the Advisor in connection with this Agreement or the execution, delivery, performance,
validity or enforceability of this Agreement and all obligations required hereunder. This Agreement has been, and each instrument or document required hereunder will be, executed and delivered by a duly authorized officer of the Advisor, and this
Agreement constitutes, and each instrument or document required hereunder when executed and delivered hereunder will constitute, the legally valid and binding obligation of the Advisor enforceable against the Advisor in accordance with its terms.

 (iii) The execution, delivery and performance of this Agreement and the documents or instruments required
hereunder will not violate any provision of any existing law or regulation binding on the Advisor, or any order, judgment, award or decree of any court, arbitrator or governmental authority binding on the Advisor, or the Governing Instruments of, or
any securities issued by, the Advisor or of any mortgage, indenture, lease, contract or other agreement, instrument or undertaking to which the Advisor is a party or by which the Advisor or any of its assets may be bound, the violation of which
would have a material adverse effect on the business operations, assets or financial condition of the Advisor, and will not result in, or require, the creation or imposition of any lien or any of its property, assets or revenues pursuant to the
provisions of any such mortgage, indenture, lease, contract or other agreement, instrument or undertaking. 
  

 26 

 Section 15. Miscellaneous. 

(a) Notices. All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing
(including by telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered against receipt or upon actual receipt of (i) personal delivery, (ii) delivery by reputable overnight
courier, (iii) delivery by facsimile transmission with telephonic confirmation or (iv) delivery by registered or certified mail, postage prepaid, return receipt requested, addressed as set forth below (or to such other address as may be
hereafter notified by the respective parties hereto in accordance with this Section 15): 
  

			
	The Company:	  	 FundCore Institutional Income Trust Inc.

One World Financial Center, 30th Floor
 New York,
NY 10281
 Attention: Steven A. Ball

Fax: (646) 374-4715

		
	with a copy to:	  	 Skadden, Arps, Slate, Meagher & Flom LLP

4 Times Square
 New York, New York
10036
 Attention: Phyllis G. Korff, Esq.

Fax: (212) 735-2000

		
	The Advisor:	  	 FundCore Advisor LLC
 One
World Financial Center, 30th Floor
 New York, NY 10281

Attention: Steven A. Ball
 Fax: (646) 374-4715

		
	with a copy to:	  	 Skadden, Arps, Slate, Meagher & Flom LLP

4 Times Square
 New York, New York
10036
 Attention: Phyllis G. Korff, Esq.

Fax: (212) 735-2000

(b) Binding Nature of Agreement; Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective heirs, personal representatives, successors and assigns as provided herein. 

(c) Integration. This Agreement contains the entire agreement and understanding among the parties hereto with respect to
the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express
terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. 
  

 27 

 (d) Amendments. Neither this Agreement nor any terms hereof may be amended,
supplemented or modified except in an instrument in writing executed by the parties hereto. 
 (e) GOVERNING LAW. THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. EACH OF THE
PARTIES HERETO IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR ANY DISTRICT WITHIN SUCH STATE FOR THE PURPOSE OF ANY ACTION OR JUDGMENT RELATING TO OR ARISING OUT OF
THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY AND TO THE LAYING OF VENUE IN SUCH COURT. 
 (f) WAIVER OF JURY
TRIAL. EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND, THEREFORE, EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
BY THIS AGREEMENT. 
 (g) Survival of Representations and Warranties. All representations and warranties made
hereunder, and in any document, certificate or statement delivered pursuant hereto or in connection herewith, shall survive the execution and delivery of this Agreement. 

(h) No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of a party hereto, any
right, remedy, power or privilege hereunder 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 are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law. 

(i) Costs and Expenses. Each party hereto shall bear its own costs and expenses (including the fees and disbursements of
counsel and accountants) incurred in connection with the negotiations and preparation of and the closing under this Agreement, and all matters incident thereto. 
  

 28 

 (j) Section Headings. The section and subsection headings in this Agreement
are for convenience in reference only and shall not be deemed to alter or affect the interpretation of any provisions hereof. 

(k) Counterparts. This Agreement may be executed by the parties to this Agreement on any number of separate counterparts
(including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. 

(l) Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

 

 29 

 IN WITNESS WHEREOF, each of the parties hereto has executed this Advisory Agreement as of
the date first written above. 
  

			
	FundCore Institutional Income Trust Inc.
		
	By:	 	 /s/ Lee J. Taragin

	Name:	 	 Lee J. Taragin

	Title:	 	 Chief Financial Officer & Chief Operating Officer

	
	FundCore Advisor LLC
		
	By:	 	 /s/ Steven A. Ball

	Name:	 	Steven A. Ball
	Title:	 	Manager

  

 30 

 Exhibit A 

Investment Guidelines 
  

	 	1.	The Company’s investments shall be in the Target Assets. 

  

	 	2.	Not more than 25% of Equity will be invested in any individual asset without the consent of a majority of the Independent Directors, provided however, that during the
Offering Period (including if the Offering Period is extended) and only to the extent the Company has raised less than $300 million of Equity, if the Advisor reasonably expects that the Company will raise at least $300 million of Equity by the end
of the offering period, such consent of a majority of the Independent Directors shall only be required for investments that are greater than $75 million. 

  

	 	3.	Until appropriate investments in the Target Assets are identified, the Advisor may invest the proceeds of the Initial Public Offering and, thereafter, any working
capital reserves the Company may establish, in short-term, highly liquid investments, including government obligations, bank certificates of deposit, short-duration CMBS, short-term debt obligations and interest-bearing accounts or other authorized
investments as approved by the Board, subject to the requirements for the Company’s qualification as a REIT under the Code. 

  

	 	4.	Any investment by the Company of up to $10 million or less requires the approval of the Company’s President and Chief Investment Officer. Any investment in excess
of $10 million but less than or equal to $100 million requires the approval of the Investment Committee. Any investment in excess of $100 million requires the approval of the Investment Committee and a majority of the Independent Directors.

  

	 	5.	No investment in commodities or commodity futures contracts shall be made, except for futures contracts when used solely for the purpose of hedging in connection with
the Company’s ordinary business. 

  

	 	6.	The Company shall not make or invest in mortgage loans that are subordinated to any lien or other indebtedness of any of the Company’s directors, or the Advisor or
its Affiliates; 

  

	 	7.	No investment in common equity securities (other than securities traded on a national securities exchange) shall be made unless a majority of the Board (including a
majority of Independent Directors) not otherwise interested in the transaction approves such investment as being fair, competitive and commercially reasonable. 

	 	8.	No investment shall be made that is inconsistent with the Company’s objectives of qualifying and remaining qualified as a REIT unless and until the Board
determines, in its sole discretion, that REIT qualification is not in the Company’s best interests. 

  

	 	9.	No investment shall be made that would cause the Company or any Subsidiary to be required to be registered as an investment company under the Investment Company Act.

 These Investment Guidelines may be amended, restated, modified, supplemented or waived by the Board (which
must include a majority of the Independent Directors) without the approval of the Company’s stockholders.Form of Indemnification Agreement

 Exhibit 10.2 

FORM OF INDEMNIFICATION AGREEMENT 

THIS INDEMNIFICATION AGREEMENT (“Agreement”) is made and entered into as of the
         day of                     , 2010, by and between FundCore Institutional Income Trust
Inc., a Maryland corporation (the “Company”), and                  (“Indemnitee”). 

WHEREAS, at the request of the Company, Indemnitee currently serves as a director and/or officer of the Company and may,
therefore, be subjected to claims, suits or proceedings arising as a result of his service; and 
 WHEREAS, as
an inducement to Indemnitee to continue to serve as such director and/or officer, the Company has agreed to indemnify and to advance expenses and costs incurred by Indemnitee in connection with any such claims, suits or proceedings, to the maximum
extent permitted by law; and 
 WHEREAS, the parties by this Agreement desire to set forth their agreement
regarding indemnification and advance of expenses; 
 NOW, THEREFORE, in consideration of the premises and the
covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows: 
 Section 1.
Definitions. For purposes of this Agreement: 
 (a) “Change in Control” means a change in
control of the Company occurring after the Effective Date of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or
form) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), whether or not the Company is then subject to such reporting requirement; provided, however, that, without limitation, such a Change in
Control shall be deemed to have occurred if, after the Effective Date (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company representing 15% or more of the combined voting power of all of the Company’s then-outstanding securities entitled to vote generally in the election of directors
without the prior approval of at least two-thirds of the members of the Board of Directors in office immediately prior to such person’s attaining such percentage interest; (ii) the Company is a party to a merger, consolidation, sale of
assets, plan of liquidation or other reorganization not approved by at least two-thirds of the members of the Board of Directors then in office, as a consequence of which members of the Board of Directors in office immediately prior to such
transaction or event constitute less than a majority of the Board of Directors thereafter; or (iii) at any time, a majority of the members of the Board of Directors are not individuals (A) who were directors as of the Effective Date or
(B) whose election by the Board of Directors or nomination for election by the Company’s stockholders was approved by the affirmative vote of at least two-thirds of the directors then in office who were directors as of the Effective Date
or whose election or nomination for election was previously so approved. 

 (b) “Corporate Status” means the status of a person as a present
or former director, officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company,
joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company. As a clarification and without limiting the circumstances in which Indemnitee may be serving at the
request of the Company, service by Indemnitee shall be deemed to be at the request of the Company if Indemnitee serves or served as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any corporation,
partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise (i) of which a majority of the voting power or equity interest is owned directly or indirectly by the Company or (ii) the management of
which is controlled directly or indirectly by the Company. 
 (c) “Disinterested Director” means a
director of the Company who is not and was not a party to the Proceeding in respect of which indemnification and/or advance of Expenses is sought by Indemnitee. 

(d) “Effective Date” means the date set forth in the first paragraph of this Agreement. 

(e) “Expenses” means any and all reasonable and out-of-pocket attorneys’ fees and costs, retainers, court
costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, federal, state, local or foreign taxes imposed on Indemnitee as a result of
the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties and any other disbursements or expenses incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or
preparing to be a witness in or otherwise participating in a Proceeding. Expenses shall also include Expenses incurred in connection with any appeal resulting from any Proceeding including, without limitation, the premium, security for and other
costs relating to any cost bond supersedeas bond or other appeal bond or its equivalent. 
 (f)
“Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any
matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement or of other indemnitees under similar indemnification agreements), or (ii) any other party to or participant or witness in the
Proceeding giving rise to a claim for indemnification or advance of Expenses hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct
then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. 

(g) “Proceeding” means any threatened, pending or completed action, suit, arbitration, alternate dispute
resolution mechanism, investigation, inquiry, administrative hearing or other proceeding, whether brought by or in the right of the Company or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal,
administrative or investigative (formal or informal) nature, including any appeal therefrom, except one pending or completed on or before the Effective Date, unless otherwise specifically agreed in writing by the Company and Indemnitee. If
Indemnitee reasonably believes that a given situation may lead to or culminate in the institution of a Proceeding, such situation shall also be considered a Proceeding. 
  

 2 

 Section 2. Services by Indemnitee. Indemnitee will serve as a
director and/or officer of the Company. However, this Agreement shall not impose any independent obligation on Indemnitee or the Company to continue Indemnitee’s service to the Company. This Agreement shall not be deemed an employment contract
between the Company (or any other entity) and Indemnitee. 
 Section 3. General. The Company shall
indemnify, and advance Expenses to, Indemnitee (a) as provided in this Agreement and (b) otherwise to the maximum extent permitted by Maryland law in effect on the Effective Date and as amended from time to time; provided, however, that no
change in Maryland law shall have the effect of reducing the benefits available to Indemnitee hereunder based on Maryland law as in effect on the Effective Date. The rights of Indemnitee provided in this Section 3 shall include, without
limitation, the rights set forth in the other sections of this Agreement, including any additional indemnification permitted by Section 2-418(g) of the Maryland General Corporation Law (the “MGCL”). 

Section 4. Standard for Indemnification. If, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is
threatened to be, made a party to any Proceeding, Indemnitee shall be indemnified against all judgments, penalties, fines and amounts paid in settlement and all Expenses actually and reasonably incurred by him or on his behalf in connection with any
such Proceeding unless it is established by clear and convincing evidence that (a) the act or omission of Indemnitee was material to the matter giving rise to the Proceeding and (i) was committed in bad faith or (ii) was the result of
active and deliberate dishonesty, (b) Indemnitee actually received an improper personal benefit in money, property or services or (c) in the case of any criminal Proceeding, Indemnitee had reasonable cause to believe that his conduct was
unlawful. 
 Section 5. Certain Limits on Indemnification. Notwithstanding any other provision of this
Agreement (other than Section 6), Indemnitee shall not be entitled to: 
 (a) indemnification hereunder if
the Proceeding was one by or in the right of the Company and Indemnitee is adjudged to be liable to the Company; 

(b) indemnification hereunder if Indemnitee is adjudged to be liable on the basis that personal benefit was improperly
received in any Proceeding charging improper personal benefit to Indemnitee, whether or not involving action in Indemnitee’s Corporate Status; or 

(c) indemnification or advance of Expenses hereunder if the Proceeding was brought by Indemnitee unless: (i) the
Proceeding was brought to enforce indemnification under this Agreement, and then only to the extent in accordance with and as authorized by Section 12 of this Agreement, or (ii) the Company’s charter or Bylaws, a resolution of the
stockholders entitled to vote generally in the election of directors or of the Board of Directors or an agreement approved by the Board of Directors to which the Company is a party expressly provide otherwise. 

 

 3 

 Section 6. Court-Ordered Indemnification. Notwithstanding any other
provision of this Agreement, a court of appropriate jurisdiction, upon application of Indemnitee and such notice as the court shall require, may order indemnification in the following circumstances: 

(a) if it determines Indemnitee is entitled to reimbursement under Section 2-418(d)(1) of the MGCL, the court shall
order indemnification, in which case Indemnitee shall be entitled to recover the Expenses of securing such reimbursement; or 

(b) if it determines that Indemnitee is fairly and reasonably entitled to indemnification in view of all the relevant
circumstances, whether or not Indemnitee (i) has met the standards of conduct set forth in Section 2-418(b) of the MGCL or (ii) has been adjudged liable for receipt of an improper personal benefit under Section 2-418(c) of the
MGCL, the court may order such indemnification as the court shall deem proper. However, indemnification with respect to any Proceeding by or in the right of the Company or in which liability shall have been adjudged in the circumstances described in
Section 2-418(c) of the MGCL shall be limited to Expenses. 
 Section 7. Indemnification for Expenses of
a Party Who is Wholly or Partly Successful. Notwithstanding any other provision of this Agreement, and without limiting any such provision, to the extent that Indemnitee was or is, by reason of his Corporate Status, made a party to (or otherwise
becomes a participant in) any Proceeding and is successful, on the merits or otherwise, in the defense of such Proceeding, Indemnitee shall be indemnified for all Expenses actually and reasonably incurred by him or on his behalf in connection
therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee under this
Section 7 for all Expenses actually and reasonably incurred by him or on his behalf in connection with each such claim, issue or matter, allocated on a reasonable and proportionate basis. For purposes of this Section 7 and, without
limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter. 

Section 8. Advance of Expenses for a Party. If, by reason of Indemnitee’s Corporate Status, Indemnitee is, or
is threatened to be, made a party to any Proceeding, the Company shall, without requiring a preliminary determination of Indemnitee’s ultimate entitlement to indemnification hereunder, advance all reasonable Expenses incurred by or on behalf of
Indemnitee in connection with such Proceeding within ten days after the receipt by the Company of a statement or statements requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such
statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by a written affirmation by Indemnitee of Indemnitee’s good faith belief that the standard of conduct
necessary for indemnification by the Company as authorized by law and by this Agreement has been met and a written undertaking by or on behalf of Indemnitee, in substantially the form attached hereto as Exhibit A or in such form as may be
required under applicable law as in effect at the time of the execution thereof, to reimburse the portion of any Expenses advanced to Indemnitee relating to claims, issues or matters in the Proceeding as to which it shall ultimately be established
that the standard of conduct has not been met by Indemnitee and which have not been successfully resolved as described in Section 7 of this Agreement. To the extent that Expenses advanced to Indemnitee do not relate to a specific claim, issue
or matter in the Proceeding, such Expenses shall be allocated on a reasonable and proportionate basis. The undertaking required by this Section 8 shall be an unlimited general obligation by or on behalf of Indemnitee and shall be accepted
without reference to Indemnitee’s financial ability to repay such advanced Expenses and without any requirement to post security therefor. 
  

 4 

 Section 9. Indemnification and Advance of Expenses of a Witness.
Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is or may be, by reason of his Corporate Status, made a witness or otherwise asked to participate in any Proceeding, whether instituted by the Company or any other
party, and to which Indemnitee is not a party, he shall be advanced all reasonable Expenses and indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith within ten days after the receipt by
the Company of a statement or statements requesting any such advance indemnification from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by
Indemnitee. 
 Section 10. Procedure for Determination of Entitlement to Indemnification. 

(a) To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including
therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. Indemnitee may submit one or more such
requests from time to time and at such time(s) as Indemnitee deems appropriate in his sole discretion. The officer of the Company receiving any such request from Indemnitee shall, promptly upon receipt of such a request for indemnification, advise
the Board of Directors in writing that Indemnitee has requested indemnification. 
 (b) Upon written request by
Indemnitee for indemnification pursuant to Section 10(a) above, a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall promptly be made in the specific case: (i) if a Change in Control
shall have occurred, by Independent Counsel, in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee, which Independent Counsel shall be selected by the Indemnitee and approved by the Board of Directors in
accordance with Section 2-418(e)(2)(ii) of the MGCL, which approval will not be unreasonably withheld; or (ii) if a Change in Control shall not have occurred, (A) by the Board of Directors by a majority vote of a quorum consisting of
Disinterested Directors or, if such a quorum cannot be obtained, then by a majority vote of a duly authorized committee of the Board of Directors consisting solely of one or more Disinterested Directors, (B) if Independent Counsel has been
selected by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the MGCL and approved by the Indemnitee, which approval shall not be unreasonably withheld, by Independent Counsel, in a written opinion to the Board of Directors,
a copy of which shall be delivered to Indemnitee or (C) if so directed by a majority of the members of the Board of Directors, by the stockholders of the Company. If it is so determined that Indemnitee is entitled to indemnification, payment to
Indemnitee shall be made within ten days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such
person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination
in the discretion of the Board of Directors or Independent Counsel if retained pursuant to clause (ii)(B) of this Section 10(b). Any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making such determination
shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company shall indemnify and hold Indemnitee harmless therefrom. 

 

 5 

 (c) The Company shall pay the reasonable fees and expenses of Independent
Counsel, if one is appointed. 
 Section 11. Presumptions and Effect of Certain Proceedings. 

(a) In making any determination with respect to entitlement to indemnification hereunder, the person or persons or entity
making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and the Company shall have
the burden of proof to overcome that presumption in connection with the making of any determination contrary to that presumption. 

(b) The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or
conviction, upon a plea of nolo contendere or its equivalent, or entry of an order of probation prior to judgment, does not create a presumption that Indemnitee did not meet the requisite standard of conduct described herein for
indemnification. 
 (c) The knowledge and/or actions, or failure to act, of any other director, officer,
employee or agent of the Company or any other director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust,
employee benefit plan or other enterprise shall not be imputed to Indemnitee for purposes of determining any other right to indemnification under this Agreement. 

Section 12. Remedies of Indemnitee. 

(a) If (i) a determination is made pursuant to Section 10(b) of this Agreement that Indemnitee is not entitled
to indemnification under this Agreement, (ii) advance of Expenses is not timely made pursuant to Section 8 or 9 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to
Section 10(b) of this Agreement within 60 days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 7 or 9 of this Agreement within ten days after receipt by
the Company of a written request therefor, or (v) payment of indemnification pursuant to any other section of this Agreement or the charter or Bylaws of the Company is not made within ten days after a determination has been made that Indemnitee
is entitled to indemnification, Indemnitee shall be entitled to an adjudication in an appropriate court located in the State of Maryland, or in any other court of competent jurisdiction, of his entitlement to such indemnification or advance of
Expenses. Alternatively, Indemnitee, at his option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Indemnitee shall commence a proceeding
seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 12(a); provided, however, that the foregoing clause shall not
apply to a proceeding brought by Indemnitee to enforce his rights under Section 7 of this Agreement. Except as set forth herein, the provisions of Maryland law (without regard to its conflicts of laws rules) shall apply to any such arbitration.
The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration. 
  

 6 

 (b) In any judicial proceeding or arbitration commenced pursuant to this
Section 12, Indemnitee shall be presumed to be entitled to indemnification or advance of Expenses, as the case may be, under this Agreement and the Company shall have the burden of proving that Indemnitee is not entitled to indemnification or
advance of Expenses, as the case may be. If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 12, Indemnitee shall not be required to reimburse the Company for any advances pursuant to Section 8 of this
Agreement until a final determination is made with respect to Indemnitee’s entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed). The Company shall, to the fullest extent not prohibited by law, be
precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or
before any such arbitrator that the Company is bound by all of the provisions of this Agreement. 
 (c) If a
determination shall have been made pursuant to Section 10(b) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this
Section 12, absent a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification. 

(d) In the event that Indemnitee is successful in seeking, pursuant to this Section 12, a judicial adjudication of
or an award in arbitration to enforce his rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company for, any and all Expenses actually and
reasonably incurred by him in such judicial adjudication or arbitration. If it shall be determined in such judicial adjudication or arbitration that Indemnitee is entitled to receive part but not all of the indemnification or advance of Expenses
sought, the Expenses incurred by Indemnitee in connection with such judicial adjudication or arbitration shall be appropriately prorated. 

(e) Interest shall be paid by the Company to Indemnitee at the maximum rate allowed to be charged for judgments under the
Courts and Judicial Proceedings Article of the Annotated Code of Maryland for amounts which the Company pays or is obligated to pay for the period commencing with the date on which the Company was requested to advance expenses in accordance with
Section 8 or 9 of this Agreement or to make the determination of entitlement to indemnification under Section 10(b) of this Agreement and ending on the date such payment is made to Indemnitee by the Company. 

 

 7 

 Section 13. Defense of the Underlying Proceeding. 

(a) Indemnitee shall notify the Company promptly in writing upon being served with any summons, citation, subpoena,
complaint, indictment, request or other document relating to any Proceeding which may result in the right to indemnification or the advance of Expenses hereunder and shall include with such notice a description of the nature of the Proceeding and a
summary of the facts underlying the Proceeding. The failure to give any such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee, to indemnification or the advance of Expenses under this
Agreement unless the Company’s ability to defend in such Proceeding or to obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and then only to the extent the Company is thereby actually so prejudiced.

 (b) Subject to the provisions of the last sentence of this Section 13(b) and of Section 13(c)
below, the Company shall have the right to defend Indemnitee in any Proceeding which may give rise to indemnification hereunder; provided, however, that the Company shall notify Indemnitee of any such decision to defend within 15 calendar days
following receipt of notice of any such Proceeding under Section 13(a) above. The Company shall not, without the prior written consent of Indemnitee, which shall not be unreasonably withheld or delayed, consent to the entry of any judgment
against Indemnitee or enter into any settlement or compromise which (i) includes an admission of fault of Indemnitee, (ii) does not include, as an unconditional term thereof, the full release of Indemnitee from all liability in respect of
such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee or (iii) would impose any Expense, judgment, fine, penalty or limitation on Indemnitee. This Section 13(b) shall not apply to a Proceeding
brought by Indemnitee under Section 12 of this Agreement. 
 (c) Notwithstanding the provisions of
Section 13(b) above, if in a Proceeding to which Indemnitee is a party by reason of Indemnitee’s Corporate Status, (i) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not
be unreasonably withheld, that he may have separate defenses or counterclaims to assert with respect to any issue which may not be consistent with other defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion
of counsel approved by the Company, which approval shall not be unreasonably withheld, that an actual or apparent conflict of interest or potential conflict of interest exists between Indemnitee and the Company, or (iii) if the Company fails to
assume the defense of such Proceeding in a timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee’s choice, subject to the prior approval of the Company, which shall not be unreasonably withheld,
at the expense of the Company. In addition, if the Company fails to comply with any of its obligations under this Agreement or in the event that the Company or any other person takes any action to declare this Agreement void or unenforceable, or
institutes any Proceeding to deny or to recover from Indemnitee the benefits intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel of Indemnitee’s choice, subject to the prior approval of the
Company, which shall not be unreasonably withheld, at the expense of the Company (subject to Section 12(d) of this Agreement), to represent Indemnitee in connection with any such matter. 

 

 8 

 Section 14. Non-Exclusivity; Survival of Rights; Subrogation.

 (a) The rights of indemnification and advance of Expenses as provided by this Agreement shall not be deemed
exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the charter or Bylaws of the Company, any agreement or a resolution of the stockholders entitled to vote generally in the election of directors or of
the Board of Directors, or otherwise. Unless consented to in writing by Indemnitee, no amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of
any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal, regardless of whether a claim with respect to such action or inaction is raised prior or subsequent to such amendment, alteration
or repeal. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right or remedy shall be cumulative and in addition to every other right or remedy given hereunder or now or hereafter existing
at law or in equity or otherwise. The assertion of any right or remedy hereunder, or otherwise, shall not prohibit the concurrent assertion or employment of any other right or remedy. 

(b) In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to
all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such
rights. 
 Section 15. Insurance. The Company will use its reasonable best efforts to acquire directors
and officers liability insurance, on terms and conditions deemed appropriate by the Board of Directors, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee by reason of his Corporate Status and covering the Company
for any indemnification or advance of Expenses made by the Company to Indemnitee for any claims made against Indemnitee by reason of his Corporate Status. Without in any way limiting any other obligation under this Agreement, the Company shall
indemnify Indemnitee for any payment by Indemnitee arising out of the amount of any deductible or retention and the amount of any excess of the aggregate of all judgments, penalties, fines, settlements and Expenses incurred by Indemnitee in
connection with a Proceeding over the coverage of any insurance referred to in the previous sentence. The purchase, establishment and maintenance of any such insurance shall not in any way limit or affect the rights or obligations of the Company or
Indemnitee under this Agreement except as expressly provided herein, and the execution and delivery of this Agreement by the Company and the Indemnitee shall not in any way limit or affect the rights or obligations of the Company under any such
insurance policies. If, at the time the Company receives notice from any source of a Proceeding to which Indemnitee is a party or a participant (as a witness or otherwise), the Company has director and officer liability insurance in effect, the
Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. 

Section 16. Coordination of Payments. The Company shall not be liable under this Agreement to make any payment of
amounts otherwise indemnifiable or payable or reimbursable as Expenses hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise. 

 

 9 

 Section 17. Reports to Stockholders. To the extent required by the
MGCL, the Company shall report in writing to its stockholders the payment of any amounts for indemnification of, or advance of Expenses to, Indemnitee under this Agreement arising out of a Proceeding by or in the right of the Company with the notice
of the meeting of stockholders of the Company next following the date of the payment of any such indemnification or advance of Expenses or prior to such meeting. 

Section 18. Duration of Agreement; Binding Effect. 

(a) This Agreement shall continue until and terminate on the later of (i) the date that Indemnitee shall have ceased
to serve as a director, officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, real estate
investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company and (ii) the date that Indemnitee is no
longer subject to any actual or possible Proceeding (including any rights of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement). 

(b) The indemnification and advance of Expenses provided by, or granted pursuant to, this Agreement shall be binding upon
and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company),
shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic
corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company, and shall inure to the benefit of Indemnitee and
his spouse, assigns, heirs, devisees, executors and administrators and other legal representatives. 
 (c) The
Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part of the business and/or assets of the Company, by written agreement in form and
substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. 

(d) The Company and Indemnitee agree herein that a monetary remedy for breach of this Agreement, at some later date, may
be inadequate, impracticable and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or
specific performance hereof, without any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which
he may be entitled. Indemnitee shall further be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other
undertakings in connection therewith. The Company acknowledges that, in the absence of a waiver, a bond or undertaking may be required of Indemnitee by a court, and the Company hereby waives any such requirement of such a bond or undertaking.

  

 10 

 Section 19. Severability. If any provision or provisions of this
Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section,
paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain
enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and
(c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby. 

Section 20. Identical Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. One such counterpart signed by the party against whom enforceability is sought shall be sufficient to evidence the existence of
this Agreement. 
 Section 21. Headings. The headings of the paragraphs of this Agreement are inserted
for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof. 

Section 22. Modification and Waiver. No supplement, modification or amendment of this Agreement shall be binding
unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a
continuing waiver. 
 Section 23. Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed or (ii) mailed by certified or registered
mail with postage prepaid, on the third business day after the date on which it is so mailed: 
 (a) If to
Indemnitee, to the address set forth on the signature page hereto. 
  

 11 

 (b) If to the Company, to: 

FundCore Institutional Income Trust Inc. 

Attn: General Counsel 

30th
 Floor 
 One World Financial
Center 
 New York, New York 10281 

or to such other address as may have been furnished in writing to Indemnitee by the Company or to the Company by Indemnitee, as the case
may be. 
 Section 24. Governing Law. The parties agree that this Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Maryland, without regard to its conflicts of laws rules. 

Section 25. Miscellaneous. Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun
where appropriate. 
 [SIGNATURE PAGE FOLLOWS] 

 

 12 

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

			
	COMPANY:
	
	FUNDCORE INSTITUTIONAL INCOME TRUST INC.
		
	By:	 	 
		 	 Name:

Title:

	
	INDEMNITEE
	
	  
	 Name:
 Address:

  

 13 

 EXHIBIT A 

FORM OF AFFIRMATION AND UNDERTAKING TO REPAY EXPENSES ADVANCED 

The Board of Directors of FundCore Institutional Income Trust Inc. 

Re: Undertaking to Repay Expenses Advanced 

Ladies and Gentlemen: 

This undertaking is being provided pursuant to that certain Indemnification Agreement dated the
         day of                     , 2010, by and between FundCore Institutional Income Trust
Inc., a Maryland corporation (the “Company”), and the undersigned Indemnitee (the “Indemnification Agreement”), pursuant to which I am entitled to advance of Expenses in connection with [Description of Proceeding] (the
“Proceeding”). 
 Terms used herein and not otherwise defined shall have the meanings specified in the
Indemnification Agreement. 
 I am subject to the Proceeding by reason of my Corporate Status or by reason of
alleged actions or omissions by me in such capacity. I hereby affirm my good faith belief that at all times, insofar as I was involved as a director and/or officer of the Company, in any of the facts or events giving rise to the Proceeding, I
(1) did not act with bad faith or active or deliberate dishonesty, (2) did not receive any improper personal benefit in money, property or services and (3) in the case of any criminal proceeding, had no reasonable cause to believe
that any act or omission by me was unlawful. 
 In consideration of the advance of Expenses by the Company for
reasonable attorneys’ fees and related Expenses incurred by me in connection with the Proceeding (the “Advanced Expenses”), I hereby agree that if, in connection with the Proceeding, it is established that (1) an act or omission
by me was material to the matter giving rise to the Proceeding and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty or (2) I actually received an improper personal benefit in money, property or
services or (3) in the case of any criminal proceeding, I had reasonable cause to believe that the act or omission was unlawful, then I shall promptly reimburse the portion of the Advanced Expenses relating to the claims, issues or matters in
the Proceeding as to which the foregoing findings have been established. 
 IN WITNESS WHEREOF, I have executed
this Affirmation and Undertaking on this          day of                     ,
20    .

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