Document:

EX-4.2

 Exhibit 4.2 
  

 
  

Advanced Micro Devices, Inc. 

FIRST SUPPLEMENTAL INDENTURE 

Dated as of June 9, 2022 

U.S. Bank Trust Company, National Association 

Trustee 
  

 
  

 

 First Supplemental Indenture dated as of June 9, 2022 (the “Supplemental
Indenture”) between Advanced Micro Devices, Inc., a Delaware corporation (the “Company”), and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). 

RECITALS 
 A. The Company and the
Trustee are parties to an Indenture, dated as of June 9, 2022 (the “Base Indenture”), which provides for the issuance by the Company from time to time of debt securities in one or more Series. The Base Indenture, as
supplemented and amended by this Supplemental Indenture, is herein referred to as the “Indenture.” Capitalized terms used but not defined herein shall have the respective meanings ascribed to them in the Base Indenture. 

B. The Company has authorized the issuance of $500,000,000 aggregate principal amount of 3.924% Senior Notes due 2032 (the “2032
Notes”) and $500,000,000 aggregate principal amount of 4.393% Senior Notes due 2052 (the “2052 Notes”, together with the 2032 Notes, the “Notes”). 

C. The Company desires to enter into this Supplemental Indenture pursuant to Section 9.1(i) of the Base Indenture, without the consent of
Holders, to establish the form and terms of the Notes as new Series of Securities as permitted by Sections 2.1 and Section 2.2 of the Base Indenture. 

NOW, THEREFORE, for and in consideration of the foregoing premises, the Company and the Trustee mutually covenant and agree for the equal and
proportionate benefit of the respective Holders from time to time of the Notes as follows: 
 ARTICLE I 

DESIGNATION AND TERMS OF THE SERIES 

Section 1.1. Terms of the Notes. 

The 2032 Notes are hereby created and designated a series of Securities under the Base Indenture titled “3.924% Senior Notes due
2032” and the 2052 Notes are hereby created and designated a series of Securities under the Base Indenture titled “4.393% Senior Notes due 2052.” The following terms relate to the Notes: 

(1) The 2032 Notes shall constitute a separate Series of Securities under the Indenture having the title “3.924% Senior Notes due
2032” and the 2052 Notes shall constitute a separate Series of Securities under the Indenture having the title “4.393% Senior Notes due 2052.” 

(2) The aggregate principal amount of the 2032 Notes (the “Initial 2032 Notes”) that may be initially authenticated and
delivered under the Indenture shall be $500,000,000. The aggregate principal amount of the 2052 Notes (the “Initial 2052 Notes”) that may be initially authenticated and delivered under the Indenture shall be $500,000,000. The
Company may from time to time, without notice to or the consent of the Holders or beneficial owners of the 2032 Notes or the 2052 Notes, as the case may be, issue additional 2032 Notes (in any such case “Additional 2032 Notes”) or
additional 2052 Notes (in any such case “Additional 2052 Notes”), as the case may be, having the same priority, interest rate, maturity and/or other terms as the Initial 2032 Notes or Additional 2052 Notes (other than the date of
issuance, public offering price and, under certain circumstances, the date from which interest thereon will begin to accrue, the initial Interest Payment Date). Any Additional 2032 Notes or Additional 2052 Notes shall constitute a single series
under the Indenture, provided that if such Additional 2032 Notes or Additional 2052 Notes, as the case may be, are not fungible with the Initial 2032 Notes or Initial 2052 Notes, respectively, for U.S. federal income tax purposes, the
applicable Additional 2032 Notes or Additional 

  
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2052 Notes will have one or more separate CUSIP numbers. All references to the 2032 Notes shall include the Initial 2032 Notes and any Additional 2032 Notes, unless the context otherwise
requires. All references to the 2052 Notes shall include the Initial 2052 Notes and any Additional 2052 Notes, unless the context otherwise requires. The aggregate principal amount of Additional 2032 Notes and the 2052 Notes shall be unlimited. 

(3) The rate at which the 2032 Notes shall bear interest shall be 3.924% per year and the rate at which the 2052 Notes shall bear interest
shall be 4.393% per year. The date from which interest shall accrue on the Notes shall be June 9, 2022, or the most recent applicable Interest Payment Date to which interest has been paid or provided for. The Interest Payment Dates for the
Notes shall be June 1 and December 1 of each year, beginning December 1, 2022. Interest shall be payable on each Interest Payment Date to the holders of record at the close of business on May 15 and November 15 prior to each
Interest Payment Date (in connection with the Notes, a “Regular Record Date”). The basis upon which interest shall be calculated shall be that of a 360-day year consisting of twelve 30-day months. 
 (4) The 2032 Notes will mature on June 1, 2032, and the 2052 Notes will
mature on June 1, 2052, unless redeemed in accordance with Section 1.3 of this Supplemental Indenture or repurchased prior to such Stated Maturity. Payments under the 2032 Notes or the 2052 Notes that are not made when due shall bear
interest at the interest rate for such Notes set forth above from the required payment date. 
 (5) The Notes shall be issuable in whole in
the form of one or more registered Global Securities, and the Depositary for such Global Securities shall be The Depository Trust Company, New York, New York (“Depositary”). The 2032 Notes and 2052 shall be substantially in the
forms attached hereto as Exhibit A and Exhibit B, respectively, the terms of which are herein incorporated by reference. 

(6) The Notes shall be denominated in Dollars and shall be issuable in minimum denominations of $2,000 or any integral multiple of $1,000 in
excess thereof. 
 (7) The Notes may be redeemed at the option of the Company prior to their Stated Maturity, as provided in
Section 1.3 of this Supplemental Indenture. 
 (8) The Notes will not have the benefit of any sinking fund. 

(9) Except as provided herein, the Holders of the Notes shall have no special rights in addition to those provided in the Base Indenture upon
the occurrence of any particular events. 
 (10) The Notes will be senior unsecured obligations of the Company. 

(11) The Notes are not convertible into shares of common stock or other securities of the Company. 

(12) The restrictive covenants set forth in Section 1.4 of this Supplemental Indenture shall be applicable to the Notes. 

(13) The Notes are not repayable at the option of the Holders except as provided in Section 1.4.3. 

(14) The Notes are initially to be issued as Global Securities. 

(15) The Trustee, Registrar and Paying Agent shall be U.S. Bank Trust Company, National Association. 

  
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 (16) The Notes will not initially be guaranteed by the Company’s direct or indirect
Subsidiaries. 
 The changes, modifications and supplements to the Base Indenture effected by this Supplemental Indenture shall be
applicable only with respect to, and govern the terms of, the Notes and shall not apply to any other Series of Securities that may be issued under the Base Indenture unless a supplemental indenture with respect to such other Series of Securities
specifically incorporates such changes, modifications and supplements. 
 Section 1.2. Defined Terms. 

Capitalized terms used but not otherwise defined herein shall have the meanings assigned to them in the Base Indenture. As used herein, the
following additional defined terms shall have the following meanings with respect to the Notes only: 
 “Applicable Par Call
Date” means, in the case of the 2032 Notes, March 1, 2032, and in the case of the 2052 Notes, December 1, 2051. 

“Attributable Debt” with regard to a sale and lease-back transaction of Principal Property means the lesser of: 

 

	 	(1)	 the fair market value of such Principal Property as determined in good faith by the Board of Directors; or

  

	 	(2)	 discounted present value (discounted at a rate per annum equal to the average interest borne by all outstanding
debt securities issued under the Indenture (which may include debt securities in addition to the Notes such as the Existing Notes) determined on a weighted average basis and compounded semi-annually) of all net rentals under the lease.

 “Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for the relief of
debtors. 
 “Business Day” means a day other than a Saturday, Sunday or other day on which banking institutions are
authorized or required by law to close in the City of New York, New York (or in connection with any payment, the place of payment). 

“Capital Stock” means (a) in the case of a corporation, capital stock, (b) in the case of an association or
business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock, (c) in the case of a partnership, partnership interests (whether general or limited), (d) in the case of a
limited liability company, membership interests, (e) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person and (f) any and
all warrants, rights or options to purchase any of the foregoing. 
 “Change of Control” means the occurrence of any one or
more of the following: (1) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the
Company’s assets and the assets of the Company’s Subsidiaries taken as a whole to any “person” (as such term is used in Section 13(d)(3) of the Exchange Act) other than to the Company or one or more of the Company’s
direct or indirect Subsidiaries; (2) an event or series of events by which any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, but excluding any employee benefit plan of

  
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such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner”
(as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a “person” or “group” shall be deemed to have “beneficial
ownership” of all Capital Stock that such “person” or “group” has the right to acquire, whether such right is exercisable immediately or only after the passage of time (such right, an “option right”)), directly or
indirectly, of more than fifty percent (50%) of the Company’s Capital Stock entitled to vote in the election of members of the Board of Directors (or equivalent governing body); provided, however, that a person shall not be deemed
beneficial owner of, or to own beneficially, (A) any securities tendered pursuant to a tender or exchange offer made by or on behalf of such person or any of such person’s affiliates until such tendered securities are accepted for purchase
or exchange thereunder, or (B) any securities if such beneficial ownership (i) arises solely as a result of a revocable proxy delivered in response to a proxy or consent solicitation made pursuant to the applicable rules and regulations
under the Exchange Act, and (ii) is not also then reportable on Schedule 13D (or any successor schedule) under the Exchange Act; (3) the Company consolidates with, or merges with or into, any Person, or any Person consolidates with, or
merges with or into, the Company, in any such event pursuant to a transaction in which any of the Company’s outstanding Voting Stock or the outstanding Voting Stock of such other Person is converted into or exchanged for cash, securities or
other property, other than any such transaction where the shares of the Company’s Voting Stock outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock of the surviving
Person or any direct or indirect parent company of any surviving Person immediately after giving effect to such transaction; or (4) the adoption by the Board of Directors or the Company’s stockholders of a plan relating to the
Company’s liquidation or dissolution. 
 Notwithstanding the foregoing, a transaction will not be deemed to involve a Change of Control
if (i) the Company becomes a direct or indirect wholly-owned Subsidiary of a holding company and (ii)(A) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction, in the aggregate, are
substantially the same and in substantially the same proportion as the holders of the Company’s Voting Stock, in the aggregate, immediately prior to that transaction or (B) immediately following that transaction no “person” (as
such term is used in Section 13(d)(3) of the Exchange Act) (other than a holding company satisfying the requirements of clause (i) above) becomes the beneficial owner, directly or indirectly, of a majority of total voting power of the
Voting Stock of such holding company. 
 “Change of Control Offer” has the meaning set forth in Section 1.4.3(a) of
this Supplemental Indenture. 
 “Change of Control Payment” has the meaning set forth in Section 1.4.3(a) of this
Supplemental Indenture. 
 “Change of Control Payment Date” has the meaning set forth in Section 1.4.3(a) of this
Supplemental Indenture. 
 “Change of Control Triggering Event” means the occurrence of both a Change of Control and a
Rating Event. 
 “Company Order” means a written order signed in the name of the Company by an Officer and delivered to the
Trustee. 
 “Consolidated Net Tangible Assets” means, at any date on which the Company effects a transaction requiring such
Consolidated Net Tangible Assets to be measured hereunder, the total assets (less applicable reserves) appearing on the Company’s most recent consolidated balance sheet, prepared in accordance with GAAP, after deducting: (1) total current
liabilities, excluding notes and loans payable, current maturities of long-term indebtedness, and current maturities of capital leases; and (2) intangible assets, to the extent included in total assets. 

  
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 When calculating the amount of Consolidated Net Tangible Assets and the application of such
term under the Indenture’s covenants in connection with any financing, acquisition, disposition, or other transaction, including any sale and lease-back transaction, or the closing of a revolving credit facility (each, a “Limited Condition
Transaction”), in each case, at the option of the Company (the Company’s election to exercise such option, an “LCT Election”), the date of determination of Consolidated Net Tangible Assets and whether any such Limited Condition
Transaction is permitted under the Indenture shall be deemed to be the date (the “LCT Test Date”) either (a) the definitive agreement for such Limited Condition Transaction is entered into, or (b) solely in connection with an
acquisition to which the United Kingdom City Code on Takeovers and Mergers applies, the date on which a “Rule 2.7 announcement” of a firm intention to make an offer (or equivalent announcement in another jurisdiction) (an “LCT Public
Offer”) in respect of a target of a Limited Condition Transaction and, in each case, if the Company or its Subsidiaries would have been permitted to consummate such Limited Condition Transaction on the relevant LCT Test Date in compliance with
such covenants, such covenants shall be deemed to have been complied with (or satisfied) for all purposes (in the case of Liens, for example, whether the Indebtedness to be secured by such Liens is committed, issued, assumed or incurred at the LCT
Test Date or at any time thereafter); and compliance with covenants shall not be determined or tested at any time after the applicable LCT Test Date for such Limited Condition Transaction and any actions or transaction related thereto (including the
incurrence, issuance or assumption of Indebtedness and the use of proceeds thereof, the incurrence or creation of Liens, and the consummation of a sale and lease-back transaction). 

“Credit Facility” means the credit agreement, dated as of April 29, 2022, by and among Advanced Micro Devices, Inc., as
borrower, the lenders as referred to therein, as lenders, and Wells Fargo Bank, National Association, as administrative agent, swingline lender and an issuing lender. 

“Definitive Security” means a certificated Note registered in the name of the Holder thereof and issued in accordance with
Article II of the Base Indenture. References in the Base Indenture to “definitive Security” or “certificated Security” shall be deemed to refer to “Definitive Security” unless the context otherwise requires. 

“Depository” means The Depository Trust Company, a New York Corporation, or any successor. 

“Event of Default”, with respect to the Notes, means any event specified in Section 1.5.1, continued for the period of
time, if any, therein designated. 
 “Existing Notes” means the Company’s outstanding 2.95% senior notes due 2024.
2.375% senior notes due 2030, 7.50% senior notes due 2022 and 2.125% senior notes due 2026. 
 “GAAP” means generally
accepted accounting principles in the United States as in effect from time to time, including without limitation, those set forth in the Accounting Standards Codification of the Financial Accounting Standards Board or in such other statements by
such other entity as have been approved by a significant segment of the accounting profession. 
 “Governmental Authority”
means the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank). 

  
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 “Indebtedness” means, with respect to any Person at any date and without
duplication, any indebtedness in respect of borrowed money or that is evidenced by bonds, notes, debentures or similar instruments. 

“Intellectual Property” means, collectively, with respect to the Company and its Subsidiaries, all rights, priorities and
privileges relating to owned intellectual property, whether arising under United States, multinational or foreign laws or otherwise, including (a) copyrights, patents, patent applications, trademarks, service marks, trade names, trade secrets, know-how and all rights thereunder or in respect thereof, (b) all income, royalties, damages and payments now or hereafter due and/or payable under any of the foregoing or with respect to any of the foregoing,
including, without limitation, damages or payments for past, present and future infringements of any of the foregoing and (c) all rights corresponding to any of the foregoing, excluding in each case of clauses (a), (b) and (c), any such rights,
priorities or privileges arising from licenses of intellectual property to or from the Company to its Subsidiaries. 
 “Interest
Payment Date”, with respect to any Security, means the Stated Maturity of an installment of interest on such Security. 

“Investment Grade” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P (or the equivalent ratings from any other relevant Rating Agency). 

“Lien” means a mortgage, security interest, pledge, lien, charge or other encumbrance of any kind (including any conditional
sale or other title retention agreement and any agreement to give any security interest), other than any operating leases. 

“Moody’s” means Moody’s Investors Service, Inc., a subsidiary of Moody’s Corporation, and its successors. 

“Permitted Reinvested Attributable Debt” means any Attributable Debt arising from a sale and lease-back transaction with
respect to which the net proceeds from the sale are applied in accordance with the first paragraph of Section 1.4.2 of this Supplemental Indenture. 

“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company,
partnership, Governmental Authority or other entity. 
 “Principal Property” means the land, improvements, buildings,
fixtures and equipment (including any leasehold interest therein) owned by the Company or a Restricted Subsidiary located in the United States that constitutes the Company’s principal corporate office, any manufacturing plant or any
manufacturing facility and that has a gross book value (including related land, machinery and equipment without deduction of any depreciation reserves) of not less than 1.00% of the Company’s Consolidated Net Tangible Assets as of the
determination date. Principal Property does not include any Property that the Board of Directors or any committee thereof has determined in good faith not to be of material importance to the business conducted by the Company and its Subsidiaries,
taken as a whole. 
 “Property” means any property or asset, whether real, personal or mixed, or tangible or intangible,
including shares of capital stock. 
 “Rating Agency” means Moody’s and S&P (or, if either such entity ceases to
rate a series of Notes for reasons outside of the Company’s control, any other “nationally recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the
Exchange Act selected by the Company as a Substitute Rating Agency). 

  
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 “Rating Event” means that the applicable series of Notes ceases to be rated
Investment Grade by both Rating Agencies on any day during the period (the “Trigger Period”) commencing on the earlier of (a) the first public notice of the occurrence of a Change of Control or (b) the public announcement by the
Company of the Company’s intention to effect a Change of Control, and ending 60 days following consummation of such Change of Control (which period shall be extended so long as the rating of the applicable series of Notes is under publicly
announced consideration for a possible rating downgrade by either of the Rating Agencies on such 60th day, such extension to last with respect to each such Rating Agency until the date on which such Rating Agency considering such possible downgrade
either (x) rates such Notes below Investment Grade or (y) publicly announces that it is no longer considering such Notes for possible downgrade, provided that no such extension will occur if on such 60th day such Notes are rated
Investment Grade by at least one of such Rating Agencies in question and are not subject to review for possible downgrade by such Rating Agency). If either Rating Agency is not providing a rating of that series of Notes on any day during the Trigger
Period for any reason (subject, for the avoidance of doubt, to the Company’s right to engage a Substitute Rating Agency), the rating of such Rating Agency for such series of Notes shall be deemed to have ceased to be Investment Grade during the
Trigger Period. 
 “Redemption Date” means, when used with respect to any Note to be redeemed, the date fixed for such
redemption by or pursuant to the Indenture. Such date must be a Business Day. 
 “Redemption Price” means, when used with
respect to any Note to be redeemed, the price at which it is to be redeemed pursuant to the Indenture. 
 “Remaining Scheduled
Payments” means, with respect to each Note to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due after the related Redemption Date but for such redemption, assuming the notes
matured on the Applicable Par Call Date; provided, however, that if such Redemption Date is not an Interest Payment Date with respect to such Note, the amount of the next succeeding scheduled interest payment thereon will be reduced by
the amount of interest accrued thereon to such Redemption Date. 
 “Restricted Subsidiary” means any Subsidiary that owns
any Principal Property other than (1) any Subsidiary primarily engaged in financing receivables or in the finance business; or (2) any of the Company’s less than 80%-owned Subsidiaries if the common stock of such Subsidiary is traded
on any national securities exchange or quoted on the Nasdaq Global Market or on the over-the-counter markets. 

“S&P” means Standard & Poor’s Ratings Services, a division of S&P Global Inc. or any successor to the
rating agency business thereof. 
 “Secured Debt” means any of the Company’s Indebtedness or any Indebtedness of a
Restricted Subsidiary, in each case secured by a Lien on either any Principal Property or on the stock of a Restricted Subsidiary. Secured Debt does not include Indebtedness secured by: 

 

	 	(1)	 Liens on Property existing at the time of acquisition of the Property by the Company or any Restricted
Subsidiary, whether or not assumed; 

  

	 	(2)	 Liens on Property of a Person existing at the time such Person becomes a Restricted Subsidiary provided
that such Liens were not incurred in anticipation of such Person becoming a Restricted Subsidiary and do not extend to any other Property of the Company or any other Restricted Subsidiary (other than Property or the stock of direct or indirect
subsidiaries of the Restricted Subsidiary so acquired, any additions, accessions, parts, improvements and attachments thereto, and the products and proceeds of such Property); 

  
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	 	(3)	 Liens to secure payment of all or any part of the cost of acquisition, construction, development or improvement
of any Property, or to secure any Indebtedness to finance such cost of acquisition, construction, development or improvement that is incurred within 24 months after the later of (i) the completion of the acquisition, construction, development
or improvement thereof, and (ii) the placing in operation of such Property or of such Property as so constructed, developed or improved; 

  

	 	(4)	 Liens to secure Indebtedness owing to the Company or to a Restricted Subsidiary; 

 

	 	(5)	 Liens existing at the date of this Supplemental Indenture; 

 

	 	(6)	 Liens on Property of an entity existing at the time such entity is merged or consolidated with the Company or a
Restricted Subsidiary provided that such Liens were not incurred in anticipation of such merger or consolidation and do not extend to any Property of the Company or any other Restricted Subsidiary (other than that of the Person merged into or
consolidated with the Company or a Restricted Subsidiary, its direct or indirect subsidiaries, any additions, accessions, parts, improvements and attachments thereto, and the products and proceeds of such Property); 

 

	 	(7)	 Liens on Property of an entity at the time of a sale or lease of the Property of such entity as an entirety or
substantially as an entirety to the Company or a Restricted Subsidiary provided that such Liens were not incurred in anticipation of such sale or lease and do not extend to any other Property (other than any additions, accessions, parts,
improvements and attachments thereto, and the products and proceeds of the Property so acquired); 

  

	 	(8)	 Liens incurred to finance the acquisition or construction of Property secured by Liens in favor of the United
States or a political subdivision of the United States; 

  

	 	(9)	 Liens for taxes, assessments or other governmental charges or levies not yet due or payable or not overdue for
a period of more than the greater of 60 days or the period of grace, if any, related thereto, or that are being contested by the Company or a Restricted Subsidiary, and for which the Company maintains adequate reserves to the extent required by
GAAP; 

  

	 	(10)	 Liens incurred in connection with an asset acquisition or a project financed with a non-recourse obligation; 

  

	 	(11)	 Liens in favor of materialmen, mechanics, carriers, warehousemen, processors, workmen or repairmen,
landlord’s Liens for rent or lease obligations or other similar Liens arising, in each case, in the ordinary course of business in respect of obligations which are not overdue or which are being contested by the Company or any Restricted
Subsidiary in good faith and by appropriate proceedings; 

  

	 	(12)	 Liens consisting of zoning restrictions, licenses, easements and restrictions of record or other similar
encumbrances on the use of real property and minor irregularities, which do not, in any case, materially detract from the value of such property or materially impair the use thereof in the ordinary conduct of business; 

  
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	 	(13)	 Liens arising by reason of deposits with, or giving any form of security to, any governmental agency or any
body created or approved by law or government regulation; 

  

	 	(14)	 Liens created by or resulting from any litigation or other proceeding that is being contested in good faith by
appropriate proceedings, including Liens arising out of judgments or awards against the Company or any Restricted Subsidiary with respect to which the Company or any of the Subsidiaries is in good faith prosecuting an appeal or proceedings for
review for which the time to make an appeal has not yet expired, and Liens relating to final unappealable judgments that are satisfied within 60 days of the date of judgment or Liens incurred by the Company or any Restricted Subsidiary for the
purposes of obtaining a stay or discharge in the course of any litigation proceeding to which the Company or any of the Subsidiaries is a party; 

  

	 	(15)	 Liens of suppliers (including sellers of goods) or customers arising in the ordinary course of business to the
extent limited to the property or assets relating to such contract; 

  

	 	(16)	 Liens (i) on receivables from customers sold or transferred to third parties (a) pursuant to credit
arrangements in the ordinary course of business or (b) for which the Company and its Subsidiaries receive adequate consideration therefor and (ii) on notes or accounts receivable sold or transferred in a transaction which constitutes a
true sale under GAAP; 

  

	 	(17)	 to the extent constituting Liens, any option or other agreement to purchase any asset of the Company or any of
its Subsidiaries; 

  

	 	(18)	 (i) leases, licenses, subleases or sublicenses (including non-exclusive
licenses and sublicenses of intellectual property rights) granted to others which do not (A) interfere in any material respect with the business of the Company or its Subsidiaries or materially detract from the value of the relevant assets of
the Company or its Subsidiaries or (B) secure any Indebtedness and (ii) any interest or title of a licensor, sub-licensor, lessor or sub-lessor under leases,
licenses, subleases or sublicenses entered into by any of the Company and its Subsidiaries as licensee, sub-licensee, lessee or sub-lessee in the ordinary course of
business or any customary restriction or encumbrance with respect to the property subject to any such lease, license, sublease or sublicense; 

  

	 	(19)	 reasonable customary initial deposits and margin deposits to the extent required by applicable law;
provided that any obligation secured by any deposit permitted under this clause (19) shall have been incurred in the ordinary course of business and not for speculative purposes; 

 

	 	(20)	 Liens solely on any cash earnest money deposits or escrow arrangements made by the Company or any Subsidiary in
connection with any letter of intent or purchase or merger agreement for any acquisition; 

  

	 	(21)	 (i) Liens in favor of customs and revenue authorities arising as a matter of law to secure the payment of
customs duties in connection with the importation of goods in the ordinary course of business and (ii) Liens on specific items of inventory or other goods and proceeds thereof of any Person securing such Person’s obligations in respect of
bankers’ acceptances or letters of credit issued or created for the account of such Person to facilitate the purchase, shipment or storage of such inventory or other goods in the ordinary course of business; 

  
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	 	(22)	 Liens on cash or cash equivalents used to defease or to satisfy and discharge Indebtedness;

  

	 	(23)	 Liens on any Intellectual Property owned by the Company and its Subsidiaries; 

 

	 	(24)	 Liens relating to hedging and similar arrangements entered into in the ordinary course of business, including
without limitation interest rate or foreign currency hedging arrangements; 

  

	 	(25)	 Liens incurred or deposits or pledges made by the Company or the Restricted Subsidiaries in the ordinary course
of business in connection with, or to secure payment of, obligations under workers’ compensation, unemployment insurance and other types of social security or similar legislation, or to secure the performance of tenders, statutory obligations,
bids, trade contracts, leases, government contracts, surety bonds (other than bonds related to judgments or litigation), performance and return-of-money bonds or other
similar obligations; 

  

	 	(26)	 Liens arising by virtue of deposits made in the ordinary course of business to secure liability for premiums to
insurance carriers so long as such Liens are for amounts not yet due and payable or delinquent or, to the extent such amounts are so due and payable, such amounts are being contested in good faith by appropriate proceedings for which adequate
reserves have been established in accordance with GAAP; 

  

	 	(27)	 Liens on property incurred in permitted sale and lease-back transactions permitted under Section 1.4.2.;

  

	 	(28)	 Liens of issuers or nominated persons arising under Section 5-118
of the UCC on documents presented under letters of credit; 

  

	 	(29)	 (i) Liens of a collecting bank arising in the ordinary course of business under
Section 4-210 of the UCC in effect in the relevant jurisdiction, (ii) Liens of any depositary bank in connection with statutory, common law and contractual rights of setoff and recoupment with
respect to any deposit account of the Company or any Subsidiary thereof and (iii) Liens arising out of conditional sale, title retention, consignment or similar arrangements for the sale of any assets or property in the ordinary course of
business; provided that in no case shall any such Liens secure (either directly or indirectly) the repayment of any Indebtedness; 

  

	 	(30)	 (i) Liens on equity interests of joint ventures securing capital contributions thereto and (ii) customary
rights of first refusal and tag, drag and similar rights in joint venture agreements and agreements with respect to non-wholly-owned Subsidiaries; 

 

	 	(31)	 Liens on the equity interests or Property of non-U.S. subsidiaries to
secure indebtedness or other obligations of non-U.S. subsidiaries; 

  

	 	(32)	 Liens to secure amounts paid in respect of premiums, fees or other costs associated with any extension,
renewal, amendment or replacement of Secured Debt, so long as the Property encumbered by any such Lien is the same as or substantially similar in nature to the Property encumbered by such Secured Debt being amended, extended, renewed or replaced; or

  

	 	(33)	 Liens constituting any extension, renewal, amendment or replacement of any Liens listed above to the extent the
principal amount of the indebtedness secured by such Lien is not increased (except to the extent of any premiums, fees or other costs associated with any such extension, renewal, amendment or replacement) and the Property encumbered by any such Lien
is the same as or substantially similar in nature to the Property encumbered by the Lien being extended, renewed or replaced. 

  
 10 

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

“Subsidiary” means as to any Person, any corporation, partnership, limited liability company or other entity of which more
than fifty percent (50%) of the outstanding Capital Stock having ordinary voting power (other than Capital Stock having such power only by reason of the happening of a contingency that has not occurred) to elect a majority of the board of directors
(or equivalent governing body) or other managers of such corporation, partnership, limited liability company or other entity is at the time owned by (directly or indirectly) or the management is otherwise controlled by (directly or indirectly) such
Person (irrespective of whether, at the time, Capital Stock of any other class or classes of such corporation, partnership, limited liability company or other entity shall have or might have voting power by reason of the happening of any
contingency). Unless otherwise qualified, references to “Subsidiary” or “Subsidiaries” herein shall refer to those of the Company. 

“Substitute Rating Agency” means a “nationally recognized statistical rating organization” within the meaning of
Section 3(a)(62) of the Exchange Act, selected by the Company as a replacement agency for Moody’s or S&P or another Rating Agency, in each case, that provides a rating of the applicable series of Notes. 

“UCC” means the Uniform Commercial Code as in effect in the State of New York. 

“Voting Stock” of any specified Person as of any date means the Capital Stock of such Person that is at the time entitled to
vote generally in the election of the board of directors of such Person. 
 Section 1.3.    Optional Redemption.

 (a)    Prior to (i) in the case of the 2032 Notes, March 1, 2032 (three months prior to their Stated
Maturity) and (ii) in the case of the 2052 Notes, December 1, 2051 (six months prior to their Stated Maturity) (the applicable date with respect to each such series of Notes, the “Applicable Par Call Date”), the Company may
redeem such Notes at its option, in whole or in part, at any time and from time to time, at a redemption price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of: 

(1) (a) the sum of the present values of the Remaining Scheduled Payments of principal and interest thereon of the 2032 Notes or 2052 Notes to
be redeemed (assuming the notes matured on the Applicable Par Call Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve
30-day months) at the Treasury Rate plus (x) in the case of the 2032 Notes, 15 basis points, or (y) in the case of the 2052 Notes, 20 basis points, in each case less (b) interest accrued and
unpaid to, but excluding, the applicable Redemption Date, and 
 (2) 100% of the principal amount of the Notes to be redeemed, 

plus, in either case, accrued and unpaid interest thereon to, but excluding, the applicable Redemption Date. 

  
 11 

 On or after the Applicable Par Call Date, the Company may redeem the Notes, in whole or in
part, at any time and from time to time, at a Redemption Price equal to 100% of the principal amount of the 2032 Notes or the 2052 Notes being redeemed plus accrued and unpaid interest thereon to, but excluding, the Redemption Date. 

“Treasury Rate” means, with respect to any Redemption Date, the yield applicable to such series of Notes determined by the Company
in accordance with the following two paragraphs. 
 The Treasury Rate applicable to a series of Notes shall be determined by the Company
after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors of the Federal Reserve System), on the third Business Day preceding the applicable Redemption Date based upon
the yield or yields for the most recent day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal Reserve System designated as “Selected Interest Rates
(Daily)—H.15” (or any successor designation or publication) (“H.15”) under the caption “U.S. government securities–Treasury constant maturities–Nominal” (or any successor caption or heading). In determining
the Treasury Rate, the Company shall select, as applicable: (1) the yield for the Treasury constant maturity on H.15 exactly equal to the period from the applicable Redemption Date to the Applicable Par Call Date (the “Remaining
Life”); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining Life, the two yields – one yield corresponding to the Treasury constant maturity on H.15 immediately shorter than and one yield
corresponding to the Treasury constant maturity on H.15 immediately longer than the Remaining Life – and shall interpolate to the Applicable Par Call Date on a straight-line basis (using the actual number of days) using such yields and rounding
the result to three decimal places; or (3) if there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for the single Treasury constant maturity on H.15 closest to the Remaining Life. For
purposes of this paragraph, the applicable Treasury constant maturity or maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such Treasury constant maturity from the
applicable Redemption Date. 
 If on the third Business Day preceding the Redemption Date H.15 or any successor designation or publication
is no longer published, the Company shall calculate the Treasury Rate based on the rate per annum equal to the semi-annual equivalent yield to maturity at 11:00 a.m., New York City time, on the second Business Day preceding such Redemption Date of
the United States Treasury security maturing on, or with a maturity that is closest to, the Applicable Par Call Date, as applicable. If there is no United States Treasury security maturing on the Applicable Par Call Date but there are two or more
United States Treasury securities with a maturity date equally distant from the Applicable Par Call Date, one with a maturity date preceding the Applicable Par Call Date and one with a maturity date following the Applicable Par Call Date, the
Company shall select the United States Treasury security with a maturity date preceding the Applicable Par Call Date. If there are two or more United States Treasury securities maturing on the Applicable Par Call Date or two or more United States
Treasury securities meeting the criteria of the preceding sentence, the Company shall select from among these two or more United States Treasury securities the United States Treasury security that is trading closest to par based upon the average of
the bid and asked prices for such United States Treasury securities at 11:00 a.m., New York City time. In determining the Treasury Rate in accordance with the terms of this paragraph, the semi-annual yield to maturity of the applicable United States
Treasury security shall be based upon the average of the bid and asked prices (expressed as a percentage of principal amount) at 11:00 a.m., New York City time, of such United States Treasury security, and rounded to three decimal places. 

The Company’s actions and determinations in determining the Redemption Price shall be conclusive and binding for all purposes, absent
manifest error. 

  
 12 

 Notice of any redemption will be mailed or electronically delivered (or otherwise
transmitted in accordance with the depositary’s procedures) at least 15 days but not more than 60 days before the Redemption Date to each holder of Notes to be redeemed. 

In the event of a redemption pursuant to Article VIII of the Base Indenture, the term “Treasury Rate” shall be deemed replaced with
the term “Determination Treasury Rate.” 
 “Determination Treasury Rate” means, with respect to any redemption date, the
yield determined by the Company in accordance with the following two paragraphs. 
 The Treasury Rate shall be determined by the Company
after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors of the Federal Reserve System), on the third Business Day preceding the date on which such notes are defeased
or discharged (the “determination date”), in each case, based upon the yield or yields for the most recent day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the
Federal Reserve System designated as “Selected Interest Rates (Daily)—H.15” (or any successor designation or publication) (“H.15”) under the caption “U.S. government securities–Treasury constant
maturities–Nominal” (or any successor caption or heading). In determining the Treasury Rate, the Company shall select, as applicable: (1) the yield for the Treasury constant maturity on H.15 exactly equal to the period from the
applicable determination date to the Applicable Par Call Date (the “Remaining Life”); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining Life, the two yields – one yield corresponding to
the Treasury constant maturity on H.15 immediately shorter than and one yield corresponding to the Treasury constant maturity on H.15 immediately longer than the Remaining Life – and shall interpolate to the Applicable Par Call Date on a
straight-line basis (using the actual number of days) using such yields and rounding the result to three decimal places; or (3) if there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for
the single Treasury constant maturity on H.15 closest to the Remaining Life. For purposes of this paragraph, the applicable Treasury constant maturity or maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of
months or years, as applicable, of such Treasury constant maturity from the applicable determination date. 
 If on the third Business Day
preceding the applicable determination date H.15 or any successor designation or publication is no longer published, the Company shall calculate the Treasury Rate based on the rate per annum equal to the semi-annual equivalent yield to maturity at
11:00 a.m., New York City time, on the second Business Day preceding such determination date of the United States Treasury security maturing on, or with a maturity that is closest to, the Applicable Par Call Date, as applicable. If there is no
United States Treasury security maturing on the Applicable Par Call Date but there are two or more United States Treasury securities with a maturity date equally distant from the Applicable Par Call Date, one with a maturity date preceding the
Applicable Par Call Date and one with a maturity date following the Applicable Par Call Date, the Company shall select the United States Treasury security with a maturity date preceding the Applicable Par Call Date. If there are two or more United
States Treasury securities maturing on the Applicable Par Call Date or two or more United States Treasury securities meeting the criteria of the preceding sentence, the Company shall select from among these two or more United States Treasury
securities the United States Treasury security that is trading closest to par based upon the average of the bid and asked prices for such United States Treasury securities at 11:00 a.m., New York City time. In determining the Treasury Rate in
accordance with the terms of this paragraph, the semi-annual yield to maturity of the applicable United States Treasury security shall be based upon the average of the bid and asked prices (expressed as a percentage of principal amount) at 11:00
a.m., New York City time, of such United States Treasury security, and rounded to three decimal places. 

  
 13 

 In the case of a partial redemption of a series of Notes, selection of the Notes of such
series for redemption will be made pro rata, by lot or by such other method as the Trustee in its sole discretion deems appropriate and fair, unless otherwise required by law or applicable stock exchange requirements, subject, in the case of Global
Securities, to the applicable rules and procedures of the Depositary. No Notes of a principal amount of $2,000 or less will be redeemed in part. If any Note is to be redeemed in part only, the notice of redemption that relates to such Note will
state the portion of the principal amount of such Note to be redeemed. A new Note in a principal amount equal to the unredeemed portion of such Note will be issued in the name of the Holder of the note upon surrender for cancellation of the original
Note. For so long as the Notes of a series are held by DTC (or another depositary), the redemption of such Notes shall be done in accordance with the policies and procedures of the depositary. 

Unless the Company defaults in payment of the applicable Redemption Price, on and after the Redemption Date interest will cease to accrue on
the notes or portions thereof called for redemption. 
 1.3.2. At any time, the Company may repurchase Notes in the open market, by private
agreement or otherwise and may hold such Notes or surrender such Notes to the Trustee for cancellation pursuant to Section 2.12 of the Base Indenture. 

Section 1.4. Additional Covenants. 

The following additional covenants shall apply with respect to the Notes so long as any of the Notes remain outstanding: 

1.4.1. Limitation on Liens. 

The Company will not (nor will the Company permit any Restricted Subsidiary to) issue, incur, create, assume or guarantee any Secured Debt
without securing the Notes equally and ratably with or prior to that Secured Debt unless the total amount of all Secured Debt and Attributable Debt (other than Permitted Reinvested Attributable Debt) with which the Notes are not at least equally and
ratably secured would not exceed the greater of (i) $1.25 billion and (ii) 25% of the Company’s Consolidated Net Tangible Assets. 

The foregoing restriction shall not prohibit any extension, renewal, amendment or replacement of any such Secured Debt or Attributable Debt to
the extent the principal amount of the Secured Debt and Attributable Debt (other than Permitted Reinvested Attributable Debt) secured by such Lien is not increased (except to the extent of any premiums, fees or other costs associated with any such
extension, renewal, amendment or replacement). 
 1.4.2. Limitation on Sale and Leaseback Transactions. 

Subject to the following paragraph of this Section 1.4.2, the Company will not (nor will the Company permit any Restricted Subsidiary to)
enter into any lease with a term longer than three years covering any of the Company’s or any Restricted Subsidiary’s Principal Property that is sold to any other Person in connection with that lease unless an amount equal to the net
proceeds from the sale is applied within 270 days of such sale to the retirement of the Company’s or any Restricted Subsidiary’s debt that is at least pari passu in right of payment with the Notes (including, for avoidance of doubt, the
Notes, the Existing Notes and, if the Company has any future borrowings thereunder, the Credit Facility) or the purchase or development of Principal Property. 

However, the Company or its Restricted Subsidiaries may enter into a sale and lease-back transaction with respect to Principal Property
without being required to apply the net proceeds as required by the foregoing paragraph if the sum of the following amounts would not exceed the greater of (i) $1.25 billion and (ii) 25% of the Company’s Consolidated Net Tangible Assets:

 (a) the Attributable Debt (other than Permitted Reinvested Attributable Debt) with respect to all such sale and lease-back transactions
entered into after the date of initial issuance of the Notes; and 

  
 14 

 (b) the total amount of Secured Debt. 

Furthermore, the foregoing restriction does not apply to any sale and lease-back transaction (i) for a term of not more than three years
including renewals; or (ii) between the Company and a Subsidiary or between Subsidiaries, provided that the lessor is a wholly-owned Subsidiary. 

1.4.3. Purchase of Notes Upon a Change of Control Triggering Event. 

(a) Upon the occurrence of a Change of Control Triggering Event with respect to a series of Notes, unless the Company has given notice to
redeem such series of Notes as described above under Section 1.3, and except as set forth in Section 1.4.3(c), each Holder of Notes of such series will have the right to require that the Company purchase all or a portion (equal to $2,000
or an integral multiple of $1,000 in excess thereof) of such Holder’s Notes of such series pursuant to the offer described below (the “Change of Control Offer”), at a purchase price in cash equal to 101% of the aggregate
principal amount of the Notes to be repurchased plus accrued and unpaid interest, if any, to, but excluding, the date of purchase (the “Change of Control Payment”), subject to the rights of Holders of Notes on the relevant Regular
Record Date to receive interest due on the relevant Interest Payment Date of such series. 
 Within 30 days following the date upon which
the Change of Control Triggering Event occurred with respect to a series of Notes or, at the Company’s option, prior to any Change of Control but after public announcement of the transaction that constitutes or may constitute the Change of
Control, the Company must send a notice to each Holder of Notes of such series, with a copy to the Trustee, which notice shall govern the terms of the Change of Control Offer. Such notice shall state, among other things, the purchase date, which
must be no earlier than 10 days nor later than 60 days from the date of such notice or, if the notice is delivered prior to the Change of Control, no earlier than 10 days and no later than 60 days from the date on which the Change of Control
Triggering Event occurs, other than as may be required by law (the “Change of Control Payment Date”). The notice will, if sent prior to the date of consummation of the Change of Control, state that the Change of Control Offer is
conditioned on the Change of Control Triggering Event occurring on or prior to the Change of Control Payment Date. Holders of Definitive Securities electing to have a Note purchased pursuant to a Change of Control Offer will be required to surrender
the Notes, with the form entitled “Option of Holder to Elect Purchase” on the reverse of the Note completed, to the Paying Agent at the address specified in the notice, and Holders of Global Securities must transfer their Notes to the
Paying Agent by book-entry transfer pursuant to the applicable procedures of the Paying Agent, prior to the close of business on the third Business Day prior to the Change of Control Payment Date. 

(b) On the Change of Control Payment Date, the Company shall, to the extent lawful: 

(i) accept for payment all Notes or portions of Notes properly tendered and not withdrawn pursuant to the Change of Control Offer; and 

(ii) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions of Notes so accepted
for payment. 
 (c) The Company will not be required to make a Change of Control Offer if a third party makes such an offer in the manner
and at the times required and otherwise in compliance with the requirements for such an offer made by the Company, and such third party purchases all Notes properly tendered and not withdrawn under its offer. 

  
 15 

 (d) The Company will comply with any applicable requirements of Rule 14e-1 under the Exchange Act, and any other applicable requirements of securities laws and regulations thereunder to the extent such laws and regulations are applicable in connection with the purchase of Notes
pursuant to a Change of Control Offer. To the extent that the provisions of any such securities laws or regulations are applicable and conflict with this Section 1.4.3, the Company will comply with those securities laws and regulations and
shall not be deemed to have breached its obligations under this Section 1.4.3 by virtue of any such conflict. 
 1.4.4. SEC
Reports. 
 Unless otherwise indicated for a particular Series of Securities by a Board Resolution, supplemental indenture or
Officer’s Certificate pursuant to Section 2.2 of the Base Indenture, the Company agrees to deliver to the Trustee and Holders, within 15 days after it files the same with the SEC, copies of the annual reports and of the information,
documents, and other reports, if any, that it is required to file with the SEC pursuant to Section 13 or Section 15(d) of the Exchange Act or pursuant to TIA § 314. All required information, documents and other reports referred to in
this Section 1.4.5 shall be deemed delivered to the Trustee and Holders at the time such information, documents and other reports are publicly filed with the SEC, provided, however, that the Trustee shall have no obligation whatsoever to
determine whether or not such information, documents or reports have been so filed. 
 Delivery of such reports, information and documents
to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute actual or constructive notice of any information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officer’s Certificates). 

Section 1.5. Defaults and Remedies. 

1.5.1. Events of Default. 

Section 6.1 Events of Default of the Base Indenture is replaced, solely with respect to the Notes, in its entirety by the below:

 “Each of the following is an “Event of Default” with respect to each series of Notes: 

(a) Default in the payment of principal of or premium, if any, on any such series of Notes when due at its Maturity, including upon optional
redemption or upon required repurchase; 
 (b) Default in the payment of interest on any such series of Notes when it becomes due and
payable, and continuance of such Default for 30 days (unless the entire amount of such Defaulted Interest (including applicable interest on such payment) is deposited by the Company with the Trustee or with a paying agent prior to the expiration of
such 30-day period); 
 (c) Failure to make a Change of Control Payment when due and payable in
accordance with the terms of the Indenture; 

  
 16 

 (d) Default in the performance or breach of any other covenant by the Company in the
Indenture (other than a covenant that has been included in the Indenture for the solely for the benefit of a series of debt securities other than the Notes), which default continues uncured for a period of 90 days after receipt by the Company, by
registered or certified mail, written notice from the trustee or the Company and the Trustee receive, by registered or certified mail, written notice from the Holders of not less than 25% in principal amount of the outstanding series of such Notes
then outstanding (with a copy to the Trustee, if such notice is given by such Holders), which notice must specify the Default, demand that it be remedied and state that such notice is a “Notice of Default”; 

(e) the Company, pursuant to or within the meaning of any Bankruptcy Law: 

(i) commences a voluntary case; 

(ii) consents to the entry of an order for relief against it in an involuntary case; 

(iii) consents to the appointment of a Custodian of it or for all or substantially all of its property; or 

(iv) makes a general assignment for the benefit of its creditors; 

(v) or takes any comparable action under any foreign laws relating to insolvency; 

(f) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

(i) is for relief against the Company in an involuntary case; 

(ii) appoints a Custodian of the Company or for all or substantially all of its property; or 

(iii) orders the winding up or liquidation of the Company; 

or any similar relief is granted under any foreign laws and the order or decree remains unstayed and in effect for 60 consecutive days. 

The term “Custodian” any receiver, trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law. 

The Company shall deliver to the Trustee, within 30 days after the occurrence thereof, written notice in the form of an Officer’s
Certificate of any event which with the giving of notice or the lapse of time or both would become an Event of Default, its status and what action the Company is taking or proposes to take with respect thereto. 

For purposes of the Indenture, references in the Base Indenture to Section 6.1(d) or Section 6.1(e) shall be deemed to refer to
Section 6.1(e) or (f), respective as set forth in this Section.” 
 Section 1.6. Transfer and Exchange of Global Securities.

 The first sentence of Section 2.14.2 of the Base Indenture is amended and restated as follows: 

“Notwithstanding any provisions to the contrary contained in Section 2.7 of the Indenture and in addition thereto, any Global
Security shall be exchangeable pursuant to Section 2.7 of the Indenture for Securities registered in the names of Holders other than the Depositary for such Security or its nominee only if (i) (x) such Depositary notifies the Company that
it is unwilling or unable to continue as Depositary for such Global Security or (y) such Depositary ceases to be a clearing agency registered under the Exchange Act, and, in either case, the Company fails to appoint a successor Depositary

  
 17 

 
registered as a clearing agency under the Exchange Act within 90 days of such event, (ii) the Company, at its option, notifies the Trustee in writing that such Global Security shall be so
exchangeable or (iii) upon the occurrence of an Event of Default with respect to the Series of Securities represented by such Global Security.” 

ARTICLE II 
 DEFEASANCE 

Section 2.1. Defeasance and Covenant Defeasance. 

Article Eight of the Base Indenture shall be applicable to the Notes. For purposes of Article Eight of the Base Indenture, solely for purposes
of the Notes, if the Company exercises its right of Covenant Defeasance pursuant to Section 8.4 of the Base Indenture, in addition to being released from its obligations under the provisions of the Base Indenture set forth in Section 8.4,
the Company also shall be released from its obligations under Section 1.4 of this Supplemental Indenture and from Article V of the Base Indenture. 

Section 2.2. Repayment to the Company. 

Section 8.5 of the Base Indenture shall be replaced, solely with respect to the Notes, in its entirety with the below: 

Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of, premium,
if any, or interest on any Security and remaining unclaimed for two years after such principal, and premium, if any, or interest has become due and payable shall be paid to the Company on its request or, if then held by the Company, shall be
discharged from such trust; and the Holder of such Security shall thereafter look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as
trustee thereof, shall thereupon cease. 
 Article III 

MISCELLANEOUS 
 Section 3.1.
Confirmation of Indenture. 
 The Base Indenture, as supplemented and amended by this Supplemental Indenture, is in all respects
ratified and confirmed, and the Base Indenture, this Supplemental Indenture and all indentures supplemental thereto with respect to the Notes shall be read, taken and construed as one and the same instrument. 

Section 3.2. Governing Law. 

THIS SUPPLEMENTAL INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE, THE SECURITIES OR
THE TRANSACTIONS CONTEMPLATED HEREBY. 

  
 18 

 Section 3.3. Severability. 

If any provision in this Supplemental Indenture is deemed unenforceable, it shall not affect the validity or enforceability of any other
provision set forth herein, or of the Indenture as a whole. 
 Section 3.4. Counterparts. 

The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together
represent the same agreement. One signed copy of the Supplemental Indenture is enough to prove this Supplemental Indenture. The exchange of copies of this Supplemental Indenture and of signature pages by facsimile, electronic or PDF transmission
shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes. Electronic signatures complying with the New York Electronic
Signatures and Records Act (N.Y. State Tech. §§ 301-309), as amended from time to time, or other applicable law will be deemed original signatures for purposes of this Supplemental Indenture. The
Company assumes all risks arising out of the use of electronic signatures and electronic methods to send communications to the Trustee, including without limitation the risk of the Trustee acting on an unauthorized communication, and the risk of
interception or misuse by third parties. 
 Section 3.5. No Benefit. 

Nothing in this Supplemental Indenture, express or implied, shall give to any Person other than the parties hereto and their successors or
assigns, and the Holders of the Notes, any benefit or legal or equitable rights, remedy or claim under this Supplemental Indenture or the Base Indenture. 

Section 3.6. Electronic Transactions. 

The parties hereto agree that the transactions described herein may be conducted and related documents may be stored by electronic means.
Copies, telecopies, facsimiles, electronic files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or
suit in the appropriate court of law. 
 Section 3.7. Trustee Disclaimer. 

The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture other than as to the validity of its
execution and delivery by the Trustee. The recitals and statements herein are deemed to be those of the Company and not the Trustee. 

[Signature Pages Follow] 

  
 19 

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

			
	ADVANCED MICRO DEVICES, INC.
		
	By:	 	 /s/ Devinder Kumar

		 	Name: Devinder Kumar
		 	Title: Executive Vice President, Chief Financial Officer and Treasurer

  

			
	 U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION

as Trustee

		
	By:	 	 /s/ David Jason

		 	Name: David Jason
		 	Title: Vice President

 [Signature Page to Supplemental Indenture] 

 Exhibit A 

[FORM OF FACE OF SECURITY] 

[Global Securities Legend] 
 THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK OR A NOMINEE OF DTC, WHICH
MAY BE TREATED BY THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS SECURITY FOR ALL PURPOSES. 
 UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 TRANSFERS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH
THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 

  
 A-1 

 3.924% Senior Notes due 2032 

CUSIP: 007903 BF3 
 ISIN:
US007903BF39 
 No.
[                ]    $[                ] 

ADVANCED MICRO DEVICES, INC. promises to pay to CEDE & CO. or registered assigns, the principal sum:
$[                ] ([                ] MILLION DOLLARS AND NO CENTS), as such amount may
be increased or decreased as set forth in the Schedule of Increase or Decrease in Principal Amount of Global Security attached hereto, on June 9, 2032. 

Interest Payment Dates: June 1 and December 1 of each year, commencing on December 1, 2022. 

Record Dates: May 15 and November 15 next preceding the applicable interest payment date. 

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

[Signature Pages Follow] 

  
 A-2 

 IN WITNESS WHEREOF, the parties have caused this instrument to be duly executed. 

 

			
	ADVANCED MICRO DEVICES, INC.
		
	By	 	 
		 	Name:
		 	Title:

  
 A-3 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

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

Date of authentication: 
 U.S. BANK TRUST COMPANY, NATIONAL
ASSOCIATION, as Trustee 
  

	
	By                                    

	Authorized Signatory

  
 A-4 

 [FORM OF REVERSE SIDE OF NOTE] 

ADVANCED MICRO DEVICES, INC. 

3.924% Senior Notes due 2032 
  

	1.	 Indenture 

This Security is one of a duly authorized issue of Securities of the Company, designated as its 3.924% Senior Notes due 2032 (herein called the
“Securities”), issued and to be issued under an indenture, dated as of June 9, 2022 (the “Base Indenture”), between ADVANCED MICRO DEVICES, INC., a Delaware corporation (such company, and its successors and assigns under the
Indenture hereinafter referred to, being herein called the “Company”), and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), as supplemented by the First Supplemental Indenture, dated as of June 9,
2022 (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”) between the Company and the Trustee, to which Indenture and all indentures supplemental thereto, Board Resolutions and Officer’s
Certificates relevant to the Securities reference is hereby made for a complete description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Holders of the Securities.
Capitalized terms used but not defined in this Security shall have the meanings ascribed to them in the Indenture. 
 Each Security is
subject to, and qualified by, all such terms as set forth in the Indenture, certain of which are summarized herein, and each Holder of a Security is referred to the corresponding provisions of the Indenture for a complete statement of such terms. To
the extent that there is any inconsistency between the summary provisions set forth in the Securities and the Indenture, the provisions of the Indenture shall govern. 
  

	2.	 Interest 

The Company promises to pay interest on the principal amount of this Security at the rate per annum shown above. The Company will pay interest
semiannually on June 1 and December 1 of each year, commencing December 1, 2022. Interest on the Securities will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from June 9,
2022. Interest shall be computed on the basis of a 360-day year comprised of twelve 30-day months. In the event that an Interest Payment Date is not a Business Day, then
interest shall be paid on the next succeeding Business Day and no interest shall accrue on such payment as the result of such delay. 
  

	3.	 Paying Agent and Registrar 

Initially, the Trustee will act as Paying Agent and Registrar. The Company may appoint and change any Paying Agent, Registrar or co-registrar without notice to Holders. The Company or any of its Subsidiaries may act as Paying Agent, Registrar or co-registrar. 

 

	4.	 Defaults and Remedies; Waiver 

If an Event of Default with respect to any Securities at the time outstanding (other than an Event of Default specified in Section 6.1(e)
or (f) of the Base Indenture) occurs and is continuing, the Trustee or the Holders of not less than 25% in aggregate principal amount of the outstanding Securities by notice to the Company in writing (and to the Trustee, if given by Holders of
the Securities) specifying the Event of Default, may declare the principal amount of, premium, if any, and accrued and unpaid interest to, but not including, the date of acceleration on all the Securities to be due and payable. Upon such a
declaration, such amounts shall be due and payable immediately. If an Event of Default specified in 

  
 A-5 

 
Section 6.01(e) or (f) of the Base Indenture occurs, the principal amount of, premium, if any, and accrued and unpaid interest to, but not including, the date of such Event of Default
on all the Securities shall become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder of the Securities. 
  

	5.	 Amendment 

The Indenture permits, with certain exceptions as therein provided, the amendment of the Indenture or this Security and the modification of the
rights and obligations of the Company and the rights of the Holders of the Securities under the Indenture at any time by the Company and the Trustee without notice to any Holder but with the written consent of the Holders of a majority in aggregate
principal amount of the Securities then outstanding (including consents obtained in connection with a tender offer or exchange offer for the Securities) affected thereby. The Indenture also contains provisions permitting the Holders of a majority in
principal amount of the Securities by written notice to the Trustee and the Company to waive an existing Default with respect to the Securities and its consequences except a continuing Default in the payment of the principal amount of, premium, if
any, and accrued and unpaid interest on a Security. A consent to an amendment or a waiver by a Holder of a Security shall bind the Holder and every subsequent Holder of that Security or portion of the Security that evidences the same debt as the
consenting Holder’s Security, even if notation of the consent or waiver is not made on the Security. 
  

	6.	 Obligations Absolute 

No reference herein to the Indenture and no provision of this Security or of the Indenture shall amend the contractual obligation of the
Company, which is absolute and unconditional, to pay the principal of, premium, if any, or interest on this Security at the place, at the respective times, at the rate and in the coin or currency herein prescribed. 

 

	7.	 Sinking Fund 

The Securities will not have the benefit of any sinking fund. 
  

	8.	 Denominations; Transfer; Exchange 

The Securities are issuable in fully registered form without coupons in minimum denominations of $2,000 principal amount and integral multiples
of $1,000 in excess thereof. When Securities are presented to the Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal principal amount of Securities, the
Registrar shall register the transfer or make the exchange in the manner and subject to the limitations provided in the Indenture, without payment of any service charge but, subject to certain exceptions set forth in the Indenture, with payment of a
sum sufficient to cover any transfer tax or similar governmental charge payable in connection with any registration or exchange of Securities. 

The Company and the Registrar shall not be required (a) to issue, register the transfer of or exchange any Securities for the a period
beginning at the opening of business 15 Business immediately preceding the day of the sending of a notice of redemption of Securities selected for redemption and ending at the close of business on the day such notice is sent, (b) to register
the transfer or exchange of Securities selected, called or being called for redemption as a whole or the portion being redeemed of any such Securities selected, called or being called for redemption in part or (c) to register the transfer or
exchange of any Securities between a record date and an Interest Payment Date for the Securities. 

  
 A-6 

	9.	 Further Issues 

The Company may from time to time, without the consent of the Holders of the Securities and in accordance with the Indenture, provide for the
issuance of additional Securities 
  

	10.	 Optional Redemption 

The Securities may be redeemed at the Company’s option, upon notice as set forth in the Indenture, in whole at any time or in part from
time to time, on the terms set forth in the Indenture. 
  

	11.	 Change of Control Triggering Event 

Upon the occurrence of a Change of Control Triggering Event with respect to the Securities, subject to certain exceptions, the Company shall be
required to offer to purchase each Holder’s Securities on the terms set forth in the Indenture. 
  

	12.	 Persons Deemed Owners 

The ownership of Securities shall be proved by the register maintained by the Registrar. 

 

	13.	 No Recourse Against Others 

No shareholder, partner, manager, member, director, officer, employee, agent or incorporator, as such, of any Company shall have any liability
for any obligations of the Company under the Securities or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Security, each Holder shall waive and release all such liability.
This waiver and release shall be part of the consideration for the issuance of the Securities. 
  

	14.	 Discharge and Defeasance 

Subject to certain conditions set forth in the Indenture, the Company at any time may terminate some or all of its obligations under the
Securities and the Indenture with respect to the Securities if the Company deposits with the Trustee money and/or U.S. Government Obligations for the payment of principal of, premium, if any, and interest on the Securities to, but not including, the
date of redemption or Maturity, as the case may be. 
  

	15.	 Unclaimed Money 

Subject to applicable abandoned property law, any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust
for the payment of the principal of, premium, if any, or interest on any Security and remaining unclaimed for two years after such principal, and premium, if any, or interest has become due and payable shall be paid to the Company on its request or,
if then held by the Company, shall be discharged from such trust. Thereafter the Holder of such Security shall look only to the Company for payment thereof as general conditions unless an abandoned property law designates another Person. 

 

	16.	 Trustee Dealings with the Company 

Subject to certain limitations imposed by the TIA, the Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar or co-Paying Agent may do the same with like rights.

  
 A-7 

	17.	 Abbreviations 

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

	18.	 CUSIP Numbers 

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

  
 A-8 

 ASSIGNMENT FORM 

For value received                hereby sell(s), assign(s)
and transfer(s) unto                (please insert social security or other identifying number of assignee) the within Security, and hereby irrevocably constitutes and
appoints                attorney to transfer the said Security on the books of the Company, with full power of substitution in the premises. 

 

	
	 Dated :
                                         
                                         
  

	
	   

	
	 
	Signature(s)

 Signature(s) must be guaranteed by an Eligible Guarantor Institution (banks, stock brokers, savings and loan associations and
credit unions) with membership in an approved signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15. 

 

	
	 
	Signature Guarantee

  
 A-9 

 INCREASES OR DECREASES IN PRINCIPAL 

AMOUNT OF GLOBAL SECURITY 
 The
initial principal amount of this Global Security is $                 . The following increases or decreases in this Global Security have been made: 

 

									
	 Date of Increase

or Decrease
	  	 Amount of

Decrease in

Principal
 Amount of
this
 Global Security
	  	 Amount of

Increase in

Principal
 Amount of
this
 Global Security
	  	 Remaining

Principal
 Amount of
this
 Global Security

Following such
 Decrease
or
 Increase
	  	 Signature of

Authorized
 Signatory
of
 Trustee or

Custodian

  
 A-10 

 OPTION OF HOLDER TO ELECT PURCHASE 

If you want to elect to have this Note purchased by the Company pursuant to Section 1.4.3 of the Supplemental Indenture, check the box
below: 
 ☐ Section 1.4.3 

If you want to elect to have only part of the Note purchased by the Company pursuant to Section 1.4.3 of the Supplemental Indenture,
state the amount you elect to have purchased: $_________ 
 Date:
                      
  

	
	 Your Signature:

	
	   

	(Sign exactly as your name appears on the face of this Note)
	
	Tax Identification No:
                                         
                   
	
	Signature Guarantee:
	
	   

  
 A-11 

 Exhibit B 

[FORM OF FACE OF SECURITY] 

[Global Securities Legend] 
 THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK OR A NOMINEE OF DTC, WHICH
MAY BE TREATED BY THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS SECURITY FOR ALL PURPOSES. 
 UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 TRANSFERS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH
THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 
  

  
 A-12 

 4.393% Senior Notes due 2052 

CUSIP: 007903 BG1 
 ISIN:
US007903BG12 
  

					
	No. [        ]	  		  	$[        ]

 ADVANCED MICRO DEVICES, INC. promises to pay to CEDE & CO. or registered assigns, the principal sum:
$[        ] ([        ] MILLION DOLLARS AND NO CENTS), as such amount may be increased or decreased as set forth in the Schedule of Increase or Decrease in Principal
Amount of Global Security attached hereto, on June 9, 2052. 
 Interest Payment Dates: June 1 and December 1 of each year, commencing on
December 1, 2022. 
 Record Dates: May 15 and November 15 next preceding the applicable interest payment date. 

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

[Signature Pages Follow] 

  
 A-13 

 IN WITNESS WHEREOF, the parties have caused this instrument to be duly executed. 

 

			
	ADVANCED MICRO DEVICES, INC.
		
	By	 	 
		 	Name:
		 	Title:

  
 A-14 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

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

Date of authentication: 
 U.S. BANK TRUST COMPANY, NATIONAL
ASSOCIATION, as Trustee 
  

	
	By
                                        

	Authorized Signatory

  
 A-15 

 [FORM OF REVERSE SIDE OF NOTE] 

ADVANCED MICRO DEVICES, INC. 

4.393% Senior Notes due 2052 
  

	1.    Indenture	 

This Security is one of a duly authorized issue of Securities of the Company, designated as its 4.393% Senior Notes due 2052 (herein called the
“Securities”), issued and to be issued under an indenture, dated as of June 9, 2022 (the “Base Indenture”), between ADVANCED MICRO DEVICES, INC., a Delaware corporation (such company, and its successors and assigns under the
Indenture hereinafter referred to, being herein called the “Company”), and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), as supplemented by the First Supplemental Indenture, dated as of June 9,
2022 (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”) between the Company and the Trustee, to which Indenture and all indentures supplemental thereto, Board Resolutions and Officer’s
Certificates relevant to the Securities reference is hereby made for a complete description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Holders of the Securities.
Capitalized terms used but not defined in this Security shall have the meanings ascribed to them in the Indenture. 
 Each Security is
subject to, and qualified by, all such terms as set forth in the Indenture, certain of which are summarized herein, and each Holder of a Security is referred to the corresponding provisions of the Indenture for a complete statement of such terms. To
the extent that there is any inconsistency between the summary provisions set forth in the Securities and the Indenture, the provisions of the Indenture shall govern. 
  

	2.    Interest	 

The Company promises to pay interest on the principal amount of this Security at the rate per annum shown above. The Company will pay interest
semiannually on June 1 and December 1 of each year, commencing December 1, 2022. Interest on the Securities will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from June 9,
2022. Interest shall be computed on the basis of a 360-day year comprised of twelve 30-day months. In the event that an Interest Payment Date is not a Business Day, then
interest shall be paid on the next succeeding Business Day and no interest shall accrue on such payment as the result of such delay. 
  

	3.    Paying	 Agent and Registrar 

Initially, the Trustee will act as Paying Agent and Registrar. The Company may appoint and change any Paying Agent, Registrar or co-registrar without notice to Holders. The Company or any of its Subsidiaries may act as Paying Agent, Registrar or co-registrar. 

 

	4.    Defaults	 and Remedies; Waiver 

If an Event of Default with respect to any Securities at the time outstanding (other than an Event of Default specified in Section 6.1(e)
or (f) of the Base Indenture) occurs and is continuing, the Trustee or the Holders of not less than 25% in aggregate principal amount of the outstanding Securities by notice to the Company in writing (and to the Trustee, if given by Holders of
the Securities) specifying the Event of Default, may declare the principal amount of, premium, if any, and accrued and unpaid interest to, but not including, the date of acceleration on all the Securities to be due and payable. Upon such a
declaration, such amounts shall be due and payable immediately. If an Event of Default specified in 

  
 A-16 

 
Section 6.01(e) or (f) of the Base Indenture occurs, the principal amount of, premium, if any, and accrued and unpaid interest to, but not including, the date of such Event of Default
on all the Securities shall become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder of the Securities. 
  

	5.	 Amendment 

The Indenture permits, with certain exceptions as therein provided, the amendment of the Indenture or this Security and the modification of the
rights and obligations of the Company and the rights of the Holders of the Securities under the Indenture at any time by the Company and the Trustee without notice to any Holder but with the written consent of the Holders of a majority in aggregate
principal amount of the Securities then outstanding (including consents obtained in connection with a tender offer or exchange offer for the Securities) affected thereby. The Indenture also contains provisions permitting the Holders of a majority in
principal amount of the Securities by written notice to the Trustee and the Company to waive an existing Default with respect to the Securities and its consequences except a continuing Default in the payment of the principal amount of, premium, if
any, and accrued and unpaid interest on a Security. A consent to an amendment or a waiver by a Holder of a Security shall bind the Holder and every subsequent Holder of that Security or portion of the Security that evidences the same debt as the
consenting Holder’s Security, even if notation of the consent or waiver is not made on the Security. 
  

	6.	 Obligations Absolute 

No reference herein to the Indenture and no provision of this Security or of the Indenture shall amend the contractual obligation of the
Company, which is absolute and unconditional, to pay the principal of, premium, if any, or interest on this Security at the place, at the respective times, at the rate and in the coin or currency herein prescribed. 

 

	7.	 Sinking Fund 

The Securities will not have the benefit of any sinking fund. 
  

	8.	 Denominations; Transfer; Exchange 

The Securities are issuable in fully registered form without coupons in minimum denominations of $2,000 principal amount and integral multiples
of $1,000 in excess thereof. When Securities are presented to the Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal principal amount of Securities, the
Registrar shall register the transfer or make the exchange in the manner and subject to the limitations provided in the Indenture, without payment of any service charge but, subject to certain exceptions set forth in the Indenture, with payment of a
sum sufficient to cover any transfer tax or similar governmental charge payable in connection with any registration or exchange of Securities. 

The Company and the Registrar shall not be required (a) to issue, register the transfer of or exchange any Securities for the a period
beginning at the opening of business 15 Business immediately preceding the day of the sending of a notice of redemption of Securities selected for redemption and ending at the close of business on the day such notice is sent, (b) to register
the transfer or exchange of Securities selected, called or being called for redemption as a whole or the portion being redeemed of any such Securities selected, called or being called for redemption in part or (c) to register the transfer or
exchange of any Securities between a record date and an Interest Payment Date for the Securities. 

  
 A-17 

	9.	 Further Issues 

The Company may from time to time, without the consent of the Holders of the Securities and in accordance with the Indenture, provide for the
issuance of additional Securities 
  

	10.	 Optional Redemption 

The Securities may be redeemed at the Company’s option, upon notice as set forth in the Indenture, in whole at any time or in part from
time to time, on the terms set forth in the Indenture. 
  

	11.	 Change of Control Triggering Event 

Upon the occurrence of a Change of Control Triggering Event with respect to the Securities, subject to certain exceptions, the Company shall be
required to offer to purchase each Holder’s Securities on the terms set forth in the Indenture. 
  

	12.	 Persons Deemed Owners 

The ownership of Securities shall be proved by the register maintained by the Registrar. 

 

	13.	 No Recourse Against Others 

No shareholder, partner, manager, member, director, officer, employee, agent or incorporator, as such, of any Company shall have any liability
for any obligations of the Company under the Securities or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Security, each Holder shall waive and release all such liability.
This waiver and release shall be part of the consideration for the issuance of the Securities. 
  

	14.	 Discharge and Defeasance 

Subject to certain conditions set forth in the Indenture, the Company at any time may terminate some or all of its obligations under the
Securities and the Indenture with respect to the Securities if the Company deposits with the Trustee money and/or U.S. Government Obligations for the payment of principal of, premium, if any, and interest on the Securities to, but not including, the
date of redemption or Maturity, as the case may be. 
  

	15.	 Unclaimed Money 

Subject to applicable abandoned property law, any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust
for the payment of the principal of, premium, if any, or interest on any Security and remaining unclaimed for two years after such principal, and premium, if any, or interest has become due and payable shall be paid to the Company on its request or,
if then held by the Company, shall be discharged from such trust. Thereafter the Holder of such Security shall look only to the Company for payment thereof as general conditions unless an abandoned property law designates another Person. 

 

	16.	 Trustee Dealings with the Company 

Subject to certain limitations imposed by the TIA, the Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar or co-Paying Agent may do the same with like rights.

  
 A-18 

	17.	 Abbreviations 

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

	18.	 CUSIP Numbers 

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

  
 A-19 

 ASSIGNMENT FORM 

For value received                hereby sell(s), assign(s)
and transfer(s) unto                (please insert social security or other identifying number of assignee) the within Security, and hereby irrevocably constitutes and
appoints                attorney to transfer the said Security on the books of the Company, with full power of substitution in the premises. 

Dated:                         
                                         
                     

	
	
	 
	
	
	   

	Signature(s)

 Signature(s) must be guaranteed by an Eligible Guarantor Institution (banks, stock brokers, savings and loan associations and
credit unions) with membership in an approved signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15. 

 

	
	Signature Guarantee

  
 A-20 

 INCREASES OR DECREASES IN PRINCIPAL 

AMOUNT OF GLOBAL SECURITY 
 The
initial principal amount of this Global Security is $                 . The following increases or decreases in this Global Security have been made: 

 

									
	 Date of Increase
or Decrease
	  	Amount of
Decrease in
Principal
Amount of this
Global Security	  	Amount of
Increase in
Principal
Amount of this
Global Security	  	Remaining
Principal
Amount of this
Global Security
Following such
Decrease or
Increase	  	Signature of
Authorized
Signatory of
Trustee or
Custodian

  

  
 A-21 

 OPTION OF HOLDER TO ELECT PURCHASE 

If you want to elect to have this Note purchased by the Company pursuant to Section 1.4.3 of the Supplemental Indenture, check the box
below: 
 ☐ Section 1.4.3 

If you want to elect to have only part of the Note purchased by the Company pursuant to Section 1.4.3 of the Supplemental Indenture,
state the amount you elect to have purchased: $_________ 
 Date:
                         
  

	
	Your Signature:
	
	   

	(Sign exactly as your name appears on the face of this Note)
	
	
	Tax Identification No:
                                        
                    
	
	Signature Guarantee:
	
	 

  

  
 A-22Exhibit 10.41 Loan Agreement Asset Purchase LOC

		

			 

		

		
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			LOAN AND SECURITY AGREEMENT
		

		
			﻿
		

		
			THIS LOAN AND SECURITY AGREEMENT entered into effective as of this day, June 6, 2022 by and between KCT CREDIT UNION, an Illinois state chartered credit union, located at 111 S Hawthorne Street, Elgin, Illinois (hereinafter sometimes referred to as “Credit Union”) and MINISTRY PARTNERS INVESTMENT COMPANY, LLC, a California limited liability company, located at 915 West Imperial Highway, Suite 120, Brea, CA 92821 (hereinafter referred to as “Borrower”).
		

		
			﻿
		

		
			Background Information
		

		
			﻿
		

		
			Borrower is engaged in the business of originating, investing in and/or acquiring commercial church loans secured by a first lien on commercial real property and desires to borrow money from Credit Union under a line of credit facility to assist in providing a short-term demand financing arrangement (“Line of Credit”). Credit Union will be granted a first lien security interest in (i) each such Commercial/Church Loan ( as hereinafter defined) that will serve as Collateral for the Line of Credit; (ii) the proceeds from the sale of such Commercial/Church Loans unless Borrower substitutes a qualifying Commercial/ Church Loan as Collateral; and (iii) other collateral (collectively, “Collateral”) to secure such Line of Credit and the Credit Union is willing to provide financing to assist in funding the origination and/or acquisition of such Commercial/Church Loans. Borrower hereby acknowledges that the Line of Credit will not be used for operating capital but will be used solely to acquire, pledge and serve as an asset backed credit facility that will support Borrower’s loan funding activities.
		

		
			﻿
		

		
			NOW THEREFORE, the parties hereto, intending to be legally bound, agree as follows:
		

		
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			Operative Provisions
		

		
			﻿
		

			
	
			
				 1.
			

			
	
			
			Definitions .

		
			﻿
		

		
			“Advance” shall mean any provision of money or credit to or for the benefit of Borrower pursuant to this Agreement.
		

		
			﻿
		

		
			“Advance Date” shall mean the date the Credit Union credits for the benefit of Borrower the Loan Account funds or advances funds to enable Borrower to fund the origination of, or acquisition of a Commercial/Church Loan that will be held as Collateral for the Line of Credit pursuant to the instructions of an authorized executive officer of Borrower carried out in accordance with the Credit Union’s funding procedures.
		

		
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			“Advance Request” shall mean that document to be executed by Borrower and which shall serve as a cash advance request hereunder by Borrower, in the form of Exhibit A attached hereto, which may be changed from time to time at the sole discretion of the Credit Union.
		

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

		
			 
		

		

		

		 

		

			 

		

 

		

			 

		

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			“Appraisal” means an appraisal that satisfies the requirements of an appraisal set forth in the Underwriting Guidelines, including a commercial evaluation report or desk top evaluation when warranted under Borrower’s credit loan policies then in effect and is otherwise in form and substance satisfactory to Credit Union.
		

		
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			“Base Rate” shall mean the Credit Union’s base commercial rate of interest which is established from time to time by the Credit Union, each change in the Base Rate to become effective, without notice to the Borrower, on the effective date of each change in the Base Rate.
		

		
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			“Borrowing Base” means an amount equal to up to 120.00% of the outstanding principal balance of Borrower’s Collateral Notes in which Borrower owns a participation interest and which would otherwise be Eligible Notes, in each case pledged to Credit Union as Collateral from and after the Effective Date, as determined from time to time.
		

		
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			“Business Day”  shall mean Central Time on any Monday, Tuesday, Thursday & Friday from 8 am until 6 pm, and Wednesday from 11 am until 6 pm during which the Credit Union is open for the transaction of business in Elgin, Illinois. All payments made to the Line of Credit received after 6:00 pm shall be deemed to have been received the following Business Day.
		

		
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			“Call Date” has the meaning stated in Section 2(b).
		

		
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			“Cash Flow Available for Debt Service” means, with respect to the maker of any Collateral Note for the prior twelve (12) month period most recently ending, such maker’s annual Net Income (or change in net assets) plus interest expense related to the Collateral Loan (if taken out of such maker’s financial statement) plus depreciation (if taken out of such maker’s financial statement) plus amortization (if taken out of such maker’s financial statement), plus principal payments relating to the Collateral Loan, plus interest and principal on Debt of a Collateral Obligor if such Debt has a superior lien position to that of Borrower with respect to any collateral securing such Collateral Loans, for the prior twelve (12) month period most recently ending, provided, that, principal and interest must be derived from financial statement footnotes for any maker that has more than one Collateral Loan outstanding.
		

		
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			“Code” means the Uniform Commercial Code as the same may, from time to time, be enacted and in effect in the State of Illinois; provided, that to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different articles or divisions of the Code, the definition of such term contained in Article 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect to, Credit Union’s lien on any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of Illinois, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies and for purposes of definitions related to such provisions.
		

		
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			“Collateral” means:
		

		
			 
		

		

		

		 

		

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				 (a)
			All Collateral Notes and other Collateral Loan Documents relating to such Collateral Notes pledged to Credit Union from time to time;

		
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				 (b)
			All cash paid or consideration received by Borrower from all Purchase Commitments held by, or subsequently obtained by, Borrower;

		
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				 (c)
			All payment intangibles, payment rights, general intangibles and all other rights relating to or arising under the Collateral Loan Documents pledged to Credit Union from time to time;

			
	
			
				 (d)
			All property of Borrower, now owned or hereafter acquired, upon which Credit Union’s lien is purported to be created by the Collateral Loan Documents; and

		
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				 (e)
			All books, records, and data containing any information, pertaining directly or indirectly to the Collateral and any right of Borrower to retrieve data and other information pertaining directly or indirectly to the Collateral from third parties.

		
			The term “Collateral,” as used herein, shall also include (a) any other property or assets, real or personal, tangible or intangible, now existing or hereafter acquired, of Borrower that may at any time be or become subject to a security interest or lien in favor of Credit Union as security for the Indebtedness, and (b) all supporting obligations (including, but not limited to, all Mortgages, liens, security interests and guaranties relating to or arising under or in connection with the Collateral Notes), products and proceeds of the foregoing (including without limitation, insurance payable by reason of loss or damage to the foregoing property) and any property, securities, guaranties or monies of Borrower which may at any time come into the possession of Credit Union pursuant to such Collateral Loan Documents.
		

		
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			“Collateral Loan” means (a) a loan made by Borrower evidenced by a Collateral Note; (b) all rights, including all rights of repayment, under the Collateral Loan Documents and all other agreements, documents and instruments arising from such loan or relating thereto; and (c) all proceeds arising from such loan or relating thereto (including, but not limited to any collateral acquired by Borrower in the exercise of its rights under the Collateral Loan Documents).
		

		
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			“Collateral Loan Documents” means the Collateral Notes, the Mortgages, and all other agreements (including, without limitation, all security agreements, pledges or other agreements evidencing any lien or encumbrance securing a Collateral Note), guaranties, instruments and documents evidencing, securing, governing, guaranteeing, pertaining or relating to a Collateral Note.
		

		
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			“Collateral Note” means the promissory notes or other similar rights to payment executed by a Collateral Obligor and pledged by Borrower (whether as the lead lender or a participant) to Credit Union as Collateral, which are described in Exhibit B attached hereto (as the same may be amended from time to time).
		

		
			 
		

		

		

		 

		

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			“Collateral Obligor” means any Person who guaranteed or is otherwise obligated to pay or perform all or any portion of the indebtedness evidenced by a Collateral Note whether as a maker, co-signer or in any other capacity.
		

		
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			“Commercial/Church Loan” shall mean or refer to the deed of trust, Mortgage or other instrument granting to the Borrower, or the holder of such deed of trust, a priority first security lien upon the property therein described.
		

		
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			“Committed Line” shall be Five Million and No Dollars ($5,000,000) and shall mean that portion of the Maximum Line of Credit which the Credit Union agrees to provide assuming all conditions precedent to each Advance request have been met by the Borrower.
		

		
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			“Constituent Documents” means the organizational and governance documents and agreements of a Person.
		

		
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			“Credit Facility” has the meaning stated in Section 2 (a).
		

		
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			“Credit Union” shall mean KCT Credit Union, Elgin, Illinois, its successors and assigns.
		

		
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			“Debt” means as to any Person at any time (without duplication) all items of indebtedness, obligation or liability of a Person, whether mature or unmatured, liquidated or unliquidated, direct or indirect, absolute or contingent, joint or several, that should be classified as liabilities in accordance with GAAP.
		

		
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			“Debt Service” means a sum equal to (a) the payments of principal and interest on a Collateral Note for the prior twelve (12) month period most recently ending, and (b) the payments of principal and interest on Debt of a Collateral Obligor for the prior twelve (12) month period most recently ending, if such Debt has a superior lien position to that of Borrower with respect to any collateral securing a Collateral Loan.
		

		
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			“Debt Service Coverage Ratio” shall mean, in respect of a Person and for any period of determination, the ratio, computed on a rolling prior twelve (12) month basis, of (a) Cash Flow Available for Debt Service to (b) Debt Service.
		

		
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			“Default” means any Event of Default or event which with notice and/or the passage of time would be an Event of Default.
		

		
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			“Effective Date” means the date the Loan and Security Agreement is entered into.
		

		
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			“Eligible Notes” means those Collateral Notes which comply with all of the following:
		

		
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				 (a)
			Credit Union has a perfected first priority security interest in any such Collateral Note and in the other Collateral Loan Documents relating thereto and in any collateral or support obligations relating thereto.

		
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				 (b)
			The Collateral Note complies with all applicable laws, rules, and regulations governing the Loan Documents.

		
			 
		

		

		

		 

		

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				 (c)
			The Collateral Note is enforceable in accordance with its terms against the maker and the performance of any obligations thereunder has been completed by Borrower.

		
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				 (d)
			Borrower has good and indefeasible title to such Collateral Note and the other Collateral Loan Documents, or portion thereof, and such Collateral Loan Documents are not subject to any lien except liens in favor of Credit Union. To the extent Borrower has sold participation interests in such Collateral Note and other Collateral Loan Documents, only the percentage interest of the Collateral Note not sold by Borrower shall be considered an Eligible Note.

		
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				 (e)
			The indebtedness evidenced by such Collateral Note is not subject to any setoff, counterclaim, defense, dispute, recoupment, or adjustment.

		
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				 (f)
			(A) The maker of such Collateral Note is not insolvent or the subject of any bankruptcy or insolvency proceeding and has not made an assignment for the benefit of creditors, suspended normal business operations, dissolved, liquidated, terminated its existence, ceased to pay its debts as they become due, or suffered a receiver or trustee to be appointed for any of its assets or affairs, or (B) the Collateral Note is not “uncollectable” (a Collateral Note is “uncollectable” if it is the subject of any foreclosure order entered into by a court or carried out by law in a non-judicial proceeding, charged off by Borrower, or if the maker of the Collateral Note ceases to be a legal entity under applicable law).

		
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				 (g)
			The Collateral Note is not owed by an affiliate, employee, officer, director or equity holder of Borrower.

			
	
			
				 (h)
			The Collateral Note complies with the covenants in this Agreement applicable thereto.

		
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				 (i)
			With respect to Eligible Notes pledged as substitute Collateral under Section 5(b), each substitute Collateral Note:

			
	
			
				 (i)
			was originated or purchased by Borrower in the ordinary course of its business and in accordance with its Church and Ministry Loan Policy and is serviced by Borrower or a servicer in accordance with its credit and collection policy;

		
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				 (ii)
			creates a valid, subsisting, and enforceable first priority security interest in Borrower’s favor in the property covered by the Mortgage and contains customary and enforceable provisions adequate for the realization against the collateral of the benefits of the security;

		
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				 (iii)
			arises under a duly authorized, delivered and validly existing and enforceable Collateral Note and is secured by a Mortgage;

		
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				 (iv)
			is a loan to an evangelical church or other religious organization that has been in operation for at least three (3) years, and is not an Affiliate of Borrower;

		
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				 (v)
			at the time the loan was made or acquired, has a loan-to-value ratio which does not exceed 75.00% based upon the most recent Appraisal that was performed

		
			 
		

		
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			within twelve (12) months of the loan origination or acquisition date, or, if such loan is pledged more than two (2) years after the loan was originated or acquired, satisfies such loan-to-value ratio pursuant to a commercial evaluation report or desk top appraisal made available to Borrower;
		

			
	
			
				 (vi)
			at the time it is pledged, has a Debt Service Coverage Ratio of 1.25 to 1.00 based on the Collateral Obligor’s current financial statements;

		
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				 (vii)
			

			
	
			
			has an original amortization period of three hundred (300) months

		
			or less; current basis;
		

		
			 
		

		
			
		

			
	
			
				 (viii)
			

			
	
			
			requires interest to be payable no less frequently than monthly on a

		
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				 (ix)
			

			
	
			
			is a fully drawn, permanent whole debt obligation with no obligation

		
			 
		

		
			for future advances and is not a construction loan;
		

		
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				 (x)
			is fully assignable without any requirement to obtain the consent of, or give notice to, any person;

		
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				 (xi)
			

			
	
			
			is not delinquent;

		
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				 (xii)
			is an “instrument” or “tangible chattel paper” within the meaning of Section 9.102 of the Code;

		
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				 (xiii)
			is insured by a title insurance policy in the minimum amount equal to the original principal balance of such Collateral Note;

		
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				 (xiv)
			is secured by mortgaged property which is insured by an insurance policy covering standard fire and traditional perils and provides for standard coverage against loss or damage;

		
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				 (xv)
			if a participated Collateral Loan, (a) is subject to a participation agreement or loan documents which Borrower or the lead lender acts as administrative and collateral trustee or the lead trustee and (b) Borrower or the lead lender controls the enforcement and foreclosure of the Collateral Loan; and

			
	
			
				 (xvi)
			has not been previously pledged as collateral to another lender by Borrower; provided, however, if such loan has been pledged and released from any obligation to such lender, it may be used as a Collateral Loan under this Line of Credit.

		
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			“Event of Default” has the meaning stated in Section 12.
		

		
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			“Facility Note” means, collectively, any promissory note evidencing all or part of the Indebtedness from time to time (as any such note may be amended, modified or restated from time to time), a copy of which is attached hereto as Exhibit C.
		

		
			 
		

		

		

		 

		

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			“GAAP” means generally accepted accounting principles, applied on a consistent basis, as set forth in Opinions of the Accounting Principles Board of the American Institute of Certified Public Accountants and/or in statements of the Financial Accounting Standards Board and/or their respective successors and which are applicable in the circumstances as of the date in question. Accounting principles are applied on a “consistent basis” when the accounting principles applied in a current period are comparable in all material respects to those accounting principles applied in a preceding period.
		

		
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			“Indebtedness” means (a) all indebtedness, obligations and liabilities of Borrower to Credit Union of any kind or character, now existing or hereafter arising, under the Facility Note, this Agreement, the other Loan Documents, (b) all accrued but unpaid interest on any of the indebtedness described in (a) above, (c) all obligations of Borrower to Credit Union under the Loan Documents, (d) all costs and expenses incurred by Credit Union in connection with the collection and administration of all or any part of the indebtedness and obligations described in (a), (b) and (c) above or the protection or preservation of, or realization upon, the collateral securing all or any part of such indebtedness and obligations, including without limitation all reasonable attorneys’ fees and (e) all renewals, extensions, modifications and rearrangements of the indebtedness and obligations described in (a), (b), (c) and (d) above.
		

		
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			“Line of Credit” or “Loan” shall mean the credit facility governed hereby.
		

		
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			“Liquidity” shall mean the sum of all Borrower assets owned and held in cash or accounts which can be converted to cash within thirty (30) days, including but not limited to checking accounts, money market or savings, certificates of deposit, and marketable securities held in assets which can be converted to cash within thirty (30) days.
		

		
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			“Loan Account” shall mean that account established by the Credit Union pursuant to Section 2.e. hereof.
		

		
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			“Loan Documents” means this Agreement, the Facility Note, and the other agreements, instruments and documents evidencing, securing, governing, guaranteeing or pertaining to the Loan, but excluding the Collateral Loan Documents.
		

		
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			“Material Adverse Effect” means a material adverse effect on (a) the business, assets, property, operations, condition or prospects of Borrower, (b) the ability of Borrower to pay or perform the Indebtedness, (c) any of the rights of or benefits available to Credit Union under the Loan Documents or (d) the validity or enforceability of the Loan Documents.
		

		
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			“Maturity Date” has the meaning stated in Section 2(k)
		

		
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			“Maximum Line of Credit” shall be Five Million and No Dollars ($5,000,000) and shall consist of the Committed Line; provided, however, that such limit complies with Credit Union’s applicable requirements under state law and its business lending policy then in effect.
		

		
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			“Minimum Collateralization Ratio” means as of any Reporting Date, the percentage obtained by dividing the outstanding principal balance of Borrower’s Eligible Notes pledged to
		

		
			 
		

		

		

		 

		

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			Credit Union as Collateral by the outstanding principal amount of the Indebtedness as of the date determined.
		

		
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			“Maximum Rate” has the meaning ascribed to it in Section 2(i).
		

		
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			“Mortgage” means a mortgage or deed of trust executed in connection with a Collateral Note evidencing an encumbrance on real property.
		

		
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			“Net Income” means for any period, a Person’s before-tax net income for such period, as determined in accordance with GAAP; provided that, if such Person’s net income includes real property lease payments, such payments shall only be included in net income if a written lease agreement under which such leases payments arise has been executed; provided further that, if the tenant under the lease is an Affiliate of such Person, such payments shall only be included in such Person’s net income if such Person supplies written evidence of the prior twelve (12) months’ payment history under the lease agreement.
		

		
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			“Overadvance” has the meaning stated in Section 2(a).
		

		
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			“Permitted Encumbrances” means the following encumbrances: (a) liens for taxes, assessments or governmental charges or levies not yet due and payable or liens for taxes, assessments or governmental charges or levies being contested in good faith and by appropriate proceedings for which adequate reserves have been established in accordance with GAAP; (b) liens created by or pursuant to the Loan Documents; (c) prior liens in existence on the Effective Date which are reasonably substantiated by Borrower; (d) liens arising from judgments, decrees, awards or attachments in circumstances not constituting an Event of Default; (e) liens securing the OSK VII, LLC credit facility; and (f) interests in Collateral Loans which have been sold under participation agreements.
		

		
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			“Person” means any individual, corporation, limited liability company, business trust, association, company, partnership, joint venture, governmental authority, or other entity, and shall include such Person’s heirs, administrators, personal representatives, executors, successors and assigns.
		

		
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			“Purchase Commitment” means a written commitment, subscription for or purchase agreement issued in favor of Borrower by an investor or group of investors pursuant to which that investor or group of investors commits to purchase an interest in a Collateral Loan.
		

		
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			“Prime Rate” shall mean the charged offered rate for a one month term as published in the Wall Street Journal, each change in Prime Rate to become effective, without notice to the Borrower, on the date of publication of each such change.
		

		
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			“Reporting Date” means the date specified in a statement of value of Collateral delivered under Section 10(e).
		

		
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			“Required MCR” has the meaning stated in Section 2(c).
		

		
			 
		

		

		

		 

		

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			“Tangible Net Worth” shall mean total assets minus total liabilities less the sum of: goodwill, organization costs, receivables due from parties related to this credit, and other assets as specified by Credit Union as unacceptable, plus payables due to parties related to this credit, all measured in accordance with GAAP.
		

		
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			“Termination Date” shall mean the first to occur of (i) the maturity date stated in the Facility Note, or (ii) the occurrence of an Event of Default.
		

		
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			“Underwriting Guidelines” means the credit approval guidelines used by Borrower in the origination of Collateral Notes, a copy of which is attached to this Agreement as Exhibit D.
		

		
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			“Warehouse Line” has the meaning ascribed to it in Section 2(i).
		

		
			﻿
		

			
	
			
				 2.
			

			
	
			
			Credit Facility.

		
			﻿
		

			
	
			
				 a)
			Credit Facility. Subject to the terms and conditions set forth in this Agreement and the other Loan Documents, Credit Union hereby agrees to make the Loan (the “Credit Facility”) to Borrower in an amount equal to the lesser of (i) the Borrowing Base, or (ii) Five Million and No Dollars ($5,000,000), commencing on the Effective Date. If at any time the sum of the aggregate principal amount of the Loan outstanding hereunder exceeds the Borrowing Base, such amounts shall be deemed an “Overadvance.” Borrower shall repay the amount of such Overadvance plus all accrued and unpaid interest thereon upon in accordance with Section 2(b) of this Agreement. Notwithstanding anything contained herein to the contrary, an Overadvance shall be considered part of the Loan and shall bear interest at the interest rates set forth in the Note and be secured by this Agreement.

			
	
			
				 b)
			Overadvance . If at the close of business on any Business Day an Overadvance shall have occurred and be continuing, then prior to the close of business on the fifth (5th) Business Day after the occurrence of such event (such date, being a “Call Date”), Borrower shall prepay a portion of the Loan in an amount equal to the Overadvance, provided, however, no such payment shall be required if prior to the close of business on the Call Date, Borrower assigns to Credit Union pursuant to this Agreement a replacement Eligible Note (or Eligible Notes) that is (are) in an amount sufficient to cause Borrower to be in compliance with the Borrowing Base.

		
			﻿
		

			
	
			
				 c)
			Minimum Collateralization. Borrower shall maintain at all times a Minimum Collateralization Ratio of at least 120.00% (the “Required MCR”). If at any time Credit Union determines that Borrower has failed to maintain the Required MCR, Borrower shall prepay a portion of the Loan (prior to the close of business on the fifth (5th) Business Day after notice to Borrower following such determination) in an amount sufficient to be in compliance with the Required MCR, provided, however, no such payment shall be required if Borrower assigns to Credit Union pursuant to this Agreement a replacement Eligible Note (or Eligible Notes) that is (are) in an amount sufficient to cause Borrower to be in compliance with the Required MCR.

		
			﻿
		

			
	
			
				 d)
			Maximum Line.  The sum of all outstanding advances under this Agreement shall not exceed the Maximum Line of Credit. Credit Union and Borrower agree that Five Million and No Dollars ($5,000,000) of the Maximum Line of Credit shall be offered by the Credit Union in the form of a Committed Line. Borrower is aware that Advances made

		
			 
		

		

		

		 

		

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			under the Line of Credit must be aggregated with other loans to Borrower and Affiliates of Borrower for purposes of calculating Credit Union’s legal lending limit. Borrower represents and warrants, to the best of its knowledge, that Borrower does not exceed Credit Union’s loan to one borrower limits.
		

			
	
			
				 e)
			Loan Account. Borrower shall execute a Facility Note in the amount of the maximum Line of Credit and Credit Union shall maintain a Loan Account for the Borrower which shall be debited to the extent of any loans to or Advances for the account of Borrower made by Credit Union pursuant to this Agreement. Borrower’s Loan Account shall be credited with the proceeds received in good funds by Credit Union from a Purchase Commitment, and with such other funds actually received by Credit Union to reduce Borrower’s indebtedness under the Line of Credit. Credit Union shall render to Borrower a monthly statement of Borrower’s Loan Account established pursuant to this Agreement showing all debits and credits thereto, which statement of account shall be considered correct and binding upon Borrower unless Borrower furnishes to Credit Union, within seven (7) days from receipt of such statement, written notice of any exceptions thereto, each of which exception shall be specified in such notice. It is the intention of the parties that Borrower’s indebtedness under this Agreement shall be evidenced by this Agreement and the Facility Note.

		
			﻿
		

			
	
			
				 f)
			Funding of Line . Credit Union will provide a Credit Facility clearing account upon which Borrower will draw funds either by check or by wire/electronic transfer in an amount equal to the Advance made on an Advance Date pursuant to Credit Union’s funding procedures as they may be amended from time to time by Credit Union in its sole discretion. The Credit Union’s obligation to fund Advances under the Line of Credit is subject to satisfaction of the following conditions precedent:

		
			﻿
		

			
	
			
				 (1)
			The Committed Line portion of the Borrower’s Maximum Line of Credit shall not be exceeded;

		
			﻿
		

			
	
			
				 (2)
			There shall exist no condition or event constituting an Event of Default as defined in Section 12 hereof or under the Facility Note;

		
			﻿
		

			
	
			
				 (3)
			The warranties included in Section 7 hereof shall be true and correct as though made at such time of presentment and Borrower shall have performed, or caused to have been performed, all of its covenants under this Agreement through such time;

		
			﻿
		

			
	
			
				 (4)
			Borrower shall have furnished the following documents to Credit Union with respect to each Advance:

			
	
			
				 (a)
			

			
	
			
			A copy of the Advance Request, completed in all material respects and

		
			﻿
		

			
	
			
				 (b)
			

			
	
			
			Such other documentation as to any Eligible Note or Commercial/Church Loan held as Collateral under the Credit Facility as the Credit Union may reasonably request.

		
			﻿
		

			
	
			
				 (c)
			A current form of Exhibit B, as amended, confirming the Collateral pledged under this Agreement.

		
			 
		

		

		

		 

		

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			All documentation shall be satisfactory in form and substance to Credit Union. All such documentation requiring the signature of the Borrower shall have been signed by a duly authorized officer of Borrower, and Credit Union shall be and it is hereby so authorized, to rely upon any signature on any such document as having been authorized.
		

		
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			Notwithstanding the occurrence of the Termination Date, the Credit Union, at its sole and absolute discretion, may thereafter permit the Borrower to draw funds hereunder in accordance with the terms, conditions and provisions hereof. Any draws permitted by Credit Union after the Termination Date shall not constitute an extension, renewal or modification of the Line of Credit or the Termination Date, the waiver by Credit Union of any Event of Default, or otherwise obligate the Credit Union to permit subsequent draws hereunder.
		

		
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				 g)
			Additional Documentation.  Borrower covenants that it will promptly obtain and deliver, or cause to be obtained and delivered any additional loan or other documentation reasonably requested by Credit Union which is customary for lenders in the commercial church and ministry loan business in order to make each Collateral Note and Commercial/Church Loan marketable. Upon demand by the Credit Union, the Borrower shall deliver to the Credit Union any and all collateral pertaining to each Eligible Note and Commercial/Church Loan.

		
			﻿
		

			
	
			
				 h)
			Repayment of Line of Credit.  The entire principal amount of each individual Advance under the Line of Credit, and all fees and interest accrued thereon, shall be payable, on the earlier of:

		
			﻿
		

			
	
			
				 (1)
			One hundred and twenty (120) days from the Advance Date for each draw under the Credit Facility;

			
	
			
				 (2)
			The earliest date on which a Collateral Loan becomes past due for sixty (60) days or more; provided, however, that Borrower may cure such deficiency by delivering a substitute Eligible Note and Commercial/ Church Loan as Collateral for the benefit of Credit Union within ten ( 10) days after receiving written notice of such deficiency;

			
	
			
				 (3)
			The date the Borrower assigns, sells, transfers, conveys, or commences foreclosure upon an Eligible Note or Commercial/Church Loan held as Collateral for the Credit Facility , or

		
			﻿
		

			
	
			
				 (4)
			

			
	
			
			Termination of this Agreement.

		
			﻿
		

			
	
			
				 i)
			Interest on Line of Credit.  Borrower agrees to pay interest from the Advance Date until the repayment of such Advance in accordance with Section 2.h., above. The disbursed and unpaid principal balances of the Indebtedness secured hereby shall bear interest prior to repayment at a variable rate per annum (“Warehouse Rate ”) which shall, from day to day, be equal to the lesser of (a) the maximum effective variable contract rate of interest (“Maximum Rate”) which Credit Union may from time to time lawfully charge, or (b) a rate equal to Prime +

		
			.50%. It is agreed that interest on the Facility Note shall be calculated on the basis of a 365 (366 in leap year) day year unless calculation on that basis would result in Credit Union receiving interest at a rate in excess of the maximum rate of interest which Credit Union is permitted by law
		

		
			 
		

		

		

		 

		

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			to contract for and charge, in which case such Indebtedness shall bear interest at such maximum rate. The Indebtedness shall also bear interest after maturity (whether by demand, acceleration or otherwise) at the maximum rate of interest which Credit Union is permitted by law to contract for and charge thereon.
		

			
	
			
				 j)
			Notice and Manner of Requesting Advances. All Advances shall be funded through a Credit Facility clearing account upon which Borrower will draw funds either by check or by wireless/electronic advance in an amount equal to the Advance Amount, to be funded in accordance with the Credit Union’s then current funding procedures, which procedures may change from time to time in its sole discretion. Borrower shall submit a copy of the Advance Request via written notice (U.S. Mail, fax transmission, or email and which is effective upon receipt), completed in all material respects and such other documentation as to an Eligible Note and Collateral to secure such advance as Credit Union may reasonably request. Credit Union shall fund the advance available to Borrower by crediting the Credit Facility Loan Account held at Credit Union within a reasonable time after Borrower requests such Advance. Borrower shall be deemed to have received the proceeds of the Advance when the Borrower’s Credit Facility Loan Account is funded by Credit Union and shall be liable pursuant to the terms of this Agreement for repayment of any Advances upon funding.

		
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				 k)
			Termination of Line of Credit. This Agreement shall be effective as of June 6,  2022 and shall terminate on June 6,  2023 and no advances of any type will be permitted after this expiration date unless the facility is renewed. The Line of Credit shall renew automatically for a one year term unless Credit Union or Borrower furnishes written notice at least thirty (30) days prior to the Termination Date that it does not intend to renew the Agreement.

		
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				 l)
			Credit Facility Fee.  Borrower agrees that a Line of Credit facility fee equal to 0.25% of the annual Maximum Line of Credit shall be charged by Credit Union and paid by Borrower on an annual basis for providing this credit facility. The commitment fee shall be paid annually within thirty (30) days of the Effective Date of this Agreement and any renewals thereof.

		
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				 3.
			

			
	
			
			Credit Union’s Security Interest and Lien

		
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				 a)
			Grant of Security Interests. Borrower hereby pledges, assigns, conveys, transfers and grants to Credit Union a security interest in and to the following, and to the extent the documents, instruments or other items evidencing and representing the following have not been delivered to Borrower, Borrower hereby covenants and agrees to deliver such documents, instruments or other items (the “Collateral”) to Credit Union:

		
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				 (1)
			The Collateral Note for or with respect to each eligible Commercial/Church Loan funded in whole or in part with an Advance under this Line of Credit or delivered as Collateral for the Credit Facility, and all of the indebtedness evidenced by such Collateral Notes.

			
	
			
				 (2)
			All of its right, title and interest in and to the other instruments securing the payment of the indebtedness evidenced by the Collateral Notes including, but not limited to, all escrows, prepaid special assessment payments included thereunder and

		
			 
		

		

		

		 

		

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			all servicing rights and proceeds from the sale of servicing rights, (and Borrower hereby subrogates the Credit Union to its position as lien holder to ensure that Credit Union may, at its election, exercise, if necessary, in Borrower’s name, all of the rights of the beneficiary of said Collateral Note and other similar security instruments).
		

			
	
			
				 (3)
			

			
	
			
			All proceeds from the sale or transfer of each Eligible Note.

		
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				 (4)
			All deposits, monies or consideration received by or on behalf of Borrower with respect to each Eligible Note funded, in whole or in part with an Advance under this Line of Credit or delivered as Collateral for the Credit Facility, including, but not limited to, escrows for insurance, taxes and interest and payments made under the Eligible Note by the mortgagor.

		
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				 (5)
			All proceeds of any hazard insurance which may arise from damage to or destruction of any Collateral directly or indirectly securing Borrower’s Indebtedness which may arise under this Agreement.

			
	
			
				 (6)
			Borrower’s right, title and interest in and to any private commercial insurance policy in effect with respect to such Eligible Note and Commercial/Church Loans made available to a Collateral Obligor including proceeds received thereof.

			
	
			
				 (7)
			Borrower’s right, title and interest in and to any hazard insurance, liability insurance and title insurance pertaining to the real properties securing the Eligible Notes and proceeds thereof.

		
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				 (8)
			All appraisals, surveys, insurance certificates, and other loan documents pertaining to the Eligible Notes and Commercial/Church Loans delivered to the Credit Union.

		
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				 (9)
			All general intangibles pertaining to the Eligible Notes and Commercial/Church Loans delivered to the Credit Union.

			
	
			
				 (10)
			All of the Borrower’s ledger and account cards, computer tapes, disks and printouts, and books and records of Borrower; and any and all other properties and assets of Borrower of whatever nature, tangible or intangible, wherever located and whether now or hereafter existing relating to the Eligible Notes and Commercial/Church Loans delivered to the Credit Union as Collateral.

		
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				 b)
			Collateral Assignments. Notwithstanding the security interest granted by Borrower to Credit Union in the Collateral, Borrower understands and agrees that should Credit Union request, it shall deliver a separate Collateral Assignment of Note, Deed of Trust and Security Agreement with respect to each Eligible Note and Collateral Loan to be funded, in whole or in part with an Advance or Advances hereunder or held as Collateral for the Credit Facility. Notwithstanding the fact that separate instruments will be used, the security interests granted herein shall be in addition to the security interests granted in each such document, and not in substitution or cancellation thereof, so that Credit Union’s security interest in the Collateral shall be construed and expanded to the fullest extent possible.

		
			 
		

		

		

		 

		

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				 c)
			Collateral Documentation. Borrower covenants and agrees to deliver to Credit Union such assignments, pledges, deeds, financing statements, consents, bailments, and other instruments, documents and agreements as Credit Union or its counsel may deem necessary or appropriate to evidence, confirm, effect or perfect any security interest granted or required to be granted under this Agreement, the Facility Note, or any other instrument or agreement as may be acceptable to Credit Union. Borrower hereby irrevocably authorizes the Credit Union in its discretion: (i) to file without the signature of the Borrower any and all financing statements, modifications and continuations in respect to the Collateral and the transactions contemplated by this Agreement (ii) to sign any such statement, modification or continuation on behalf of the Borrower if the Credit Union deems such signature necessary or desirable under applicable law and (iii) to file a carbon, photographic or other reproduction of any financing statement or modification if the Credit Union deems such filing necessary or desirable under applicable law provided that so long as no Event of Default is then continuing, the Credit Union shall accord the Borrower an opportunity to review and sign any proposed financing statement or modification (but not continuation), with the Credit Union exercising its authority hereunder to sign on behalf of the Borrower if the Borrower has not signed within a reasonable period of time (not to exceed thirty

		
			(30) days) and provided further that the failure to send any such copy for review or signature shall not affect the validity or enforceability of any such signature and filing by the Credit Union. The Borrower shall promptly reimburse the Credit Union for all costs and expenses incurred in connection with the preparation and filing of any such document, including, but not limited to, stamp taxes, recording taxes, privilege taxes, and filing fees. The Credit Union shall send a copy of any such filing to the Borrower provided, however, that the failure to send that copy shall not affect the validity or enforceability of any such filing. The Credit Union shall not be liable for any mistake in or failure to file any financing statement, modification or continuation.
		

		
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				 4.
			Note, Rate, Computation of Interest, and Prepayments . The Credit Facility shall be evidenced by a Note duly executed by Borrower and payable to the order of Credit Union, in form and substance acceptable to Credit Union. The principal of and interest on the Note shall be due and payable in accordance with the terms and conditions set forth in the Note and in this Agreement. All payments made by Borrower under this Agreement and the other Loan Documents shall be made to Credit Union at Credit Union’s offices as set forth herein in dollars and immediately available funds, without setoff, deduction or counterclaim, and free and clear of all taxes, at the time and in the manner provided in the Note. Borrower shall promptly, and in any event within ten (10) days of any such occurrence, prepay the Note as follows:

		
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				 a)
			If Borrower receives proceeds from the sale of a Collateral Loan (under a Purchase Commitment or otherwise), Borrower shall prepay the Note in an amount sufficient to cause Borrower to comply with the Required MCR; and

			
	
			
				 b)
			If Borrower receives prepayment (in whole or in part) or payment in full of any Collateral Note (whether at maturity, by acceleration, from third party capital or otherwise), which causes a failure by Borrower to comply with the Required MCR, Borrower shall prepay the Note in an amount sufficient to cause Borrower to comply with the Required MCR; provided that, if Borrower exercises its right to substitute an Eligible Note as provided in Section 5(b), then no prepayment of the Note shall be required as a result of such prepayment.

		
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				 5.
			

			
	
			
			Collateral.

		
			 
		

		

		

		 

		

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				 a)
			Borrower Remains Liable . Notwithstanding anything to the contrary contained herein, (i) Borrower shall remain liable under the contracts and agreements included in the Collateral to the extent set forth therein to perform all of Credit Union’s respective duties and obligations thereunder to the same extent as if this Agreement had not been executed; (ii) the exercise by Credit Union of any of its rights hereunder shall not release Borrower from any of its duties or obligations under the contracts and agreements included in the Collateral and (iii) Credit Union shall not have any obligation or liability under any of the contracts and agreements included in the Collateral by reason of this Agreement, nor shall Credit Union be obligated to perform any of the obligations or duties of Borrower thereunder or to take any action to collect or enforce any claim for payment assigned hereunder.

		
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				 b)
			Substitution of Collateral Notes. If any Collateral Note is paid in full or is no longer an Eligible Note, Borrower may, at any time and from time to time, substitute one or more additional Eligible Notes in place of such Collateral Note, provided that the outstanding principal balance of such substitute Eligible Note is sufficient in amount to cause Borrower to comply with the Required MCR. Borrower shall execute any and all documents deemed necessary or required by Credit Union to evidence the assignment of any substitute Collateral Note, together with all security therefore (including the other Collateral Loan Documents relating thereto), to Credit Union.

		
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				 c)
			Additional Documents . To secure full and complete payment and performance of the Indebtedness, Borrower shall execute and deliver or cause to be executed and delivered all of the Loan Documents reasonably required by Credit Union covering the Collateral. Borrower shall execute and cause to be executed such further documents and instruments, as Credit Union, in its reasonable discretion, deems necessary or desirable to create, evidence, preserve and perfect its liens and security interests in the Collateral. In the event any of the Loan Documents evidencing or securing the Indebtedness misrepresents or inaccurately reflects the correct terms and/or provisions of the Indebtedness, Borrower shall upon request by Credit Union and in order to correct such mistake, execute such new documents or initial corrected, original documents as Credit Union may deem reasonably necessary to remedy said errors or mistakes. Borrower shall execute such other documents as Credit Union shall deem reasonably necessary to correct any defects or deficiencies in the Loan Documents. Borrower’s failure to execute such documents as requested shall constitute an Event of Default under this Agreement.

		
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				 d)
			Satisfaction of Indebtedness. Until the Indebtedness has been indefeasibly paid and fully satisfied (other than contingent indemnification obligations to the extent no unsatisfied claim has been asserted) and the commitments of Credit Union under the Credit Facility have been terminated, Credit Union shall be entitled to retain the security interests in the Collateral granted under the Loan Documents and the ability to exercise all rights and remedies available to Credit Union under the Loan Documents and applicable laws.

		
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				 e)
			Collection and Servicing Rights . So long as no Event of Default shall have occurred and be continuing, Borrower or Borrower’s designated servicing agent shall be entitled to service, and shall continue to service the Collateral Loans, and to receive and collect directly all sums payable to Borrower in respect of the Collateral.

		
			 
		

		

		

		 

		

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				 f)
			Release of Collateral. If on any monthly valuation date Borrower determines that the value of the Collateral Loans exceeds the amount necessary to maintain Required MCR of 120.00%, Borrower may request and receive a release of Collateral Loans up to the dollar amount sufficient for Borrower to maintain compliance with such Minimum Collateralization Ratio. So long as no Event of Default shall have occurred and be continuing, the release of Collateral Loans shall be subject to mutual agreement between Credit Union and Borrower on the specific Collateral Loans(s) to be released.

		
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				 6.
			

			
	
			
			Conditions Precedent.

		
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				 a)
			Loan. The obligation of Credit Union to make the Loan under the Credit Facility is subject to the condition precedent that Credit Union shall have received, or such condition shall be otherwise satisfied, as of the Effective Date, to Credit Union’s satisfaction:

		
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				 (1)
			Closing Certificate . A closing certificate of an officer of Borrower, which certifies: (1) the resolutions of Borrower authorizing the execution, delivery, and performance of the Loan Documents that Borrower is a party to; (2) certificates of the appropriate government officials and any governing body of Borrower, and (to the extent required by applicable law) any state any such Person is currently doing business as to the existence, qualification and good standing of Borrower, dated no more than ten (10) days prior to the Effective Date; (3) the true and correct Constituent Documents of Borrower; and (4) the names of the individuals or other Persons authorized to sign the Loan Documents that Borrower is a party to, together with specimen signatures of such Persons.

		
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				 (2)
			

			
	
			
			Loan Documents . The Loan Documents executed by Borrower.

		
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				 (3)
			Lien Search. The results of a Code or other lien search showing all financing statements and other documents or instruments on file against Borrower in such locations as Credit Union may reasonably request, dated no more than ten (10) days prior to the Effective Date.

			
	
			
				 (4)
			Financing Statements . Code financing statements covering the Collateral shall have been filed with such filing offices as Credit Union may request.

		
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				 (5)
			Collateral Notes . Borrower shall cause to be delivered to Credit Union or its designated agent or set aside in a secure location designated by Credit Union (who shall hold each Collateral Note for the benefit of Credit Union) (1) each Collateral Note, together with an allonge thereto payable to the order of Credit Union in form and content satisfactory to Credit Union, and (2) an assignment in blank relating to each Mortgage and the other recorded Collateral Loan Documents, in form and content satisfactory to Credit Union.

			
	
			
				 (6)
			Other Matters . Such other documents and agreements as may be required by Credit Union in its reasonable discretion, including, but not limited to, approval by the Credit Union’s Board of Directors of the Maximum Line of Credit.

		
			 
		

		

		

		 

		

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				 7.
			Representations and Warranties . Borrower hereby represents and warrants to Credit Union as follows:

		
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				 a)
			Existence. Borrower (i) is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its organization; (ii) has all requisite power and authority to own its assets and carry on its business as now being or as proposed to be conducted; and (iii) is qualified to do business in all jurisdictions in which the nature of its business makes such qualification necessary and where failure to so qualify would have a Material Adverse Effect. Borrower has the power and authority to execute, deliver, and perform its obligations under the Loan Documents to which it is or may become a party.

			
	
			
				 b)
			Binding Obligations . The execution, delivery, and performance of the Loan Documents by Borrower have been duly authorized by all necessary action by Borrower, and constitute legal, valid and binding obligations of Borrower, enforceable in accordance with their respective terms, except as limited by bankruptcy, insolvency or similar laws of general application relating to the enforcement of creditors’ rights and except to the extent specific remedies may generally be limited by equitable principles.

		
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				 c)
			Known Defaults . Borrower is not knowingly in default in the performance of any obligations to other financial institutions or to federal, state or municipal authorities.

		
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				 d)
			No Consent. The execution, delivery and performance of the Loan Documents, and the consummation of the transactions contemplated thereby, do not (i) conflict with, result in a violation of, or constitute a default under (1) any provision of the Constituent Documents (if any) or other instrument binding upon Borrower, (2) or, to its knowledge, any law, governmental regulation, court decree or order applicable to Borrower, or (3) any contractual obligation, agreement, judgment, license, order or permit applicable to or binding upon Borrower,

			
	
			
				 (ii)
			require the consent, approval or authorization of any third party, or (iii) result in or require the creation of any lien, charge or encumbrance upon any property or asset of Borrower except as may be expressly contemplated in the Loan Documents.

		
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				 e)
			Financial Condition. Each financial statement of Borrower supplied to Credit Union truly discloses and fairly presents Borrower’s financial condition as of the date of each such statement. There has been no material adverse change in such financial condition or results of operations of Borrower subsequent to the date of the most recent financial statement supplied to Credit Union.

		
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				 f)
			Disclosure . No statement, information, report, representation, or warranty made by Borrower in the Loan Documents or furnished to Credit Union in connection with the Loan Documents or any of the transactions contemplated hereby contains any untrue statement of a material fact or omits to state any material fact necessary to make the statements herein or therein not misleading. There is no fact known to Borrower which could reasonably be expected to have a Material Adverse Effect that has not been disclosed in writing to Credit Union.

		
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				 g)
			Security Interest. Borrower has and will have at all times full right, power and authority to grant a security interest in the Collateral to Credit Union in the manner provided

		
			 
		

		

		

		 

		

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			herein, free and clear of any lien, security interest or other charge or encumbrance other than for the Permitted Encumbrances.
		

		
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				 h)
			Location. Borrower’s business office where the records concerning the Collateral are kept are at its address set forth on the signature page hereof.

			
	
			
				 i)
			Collateral Notes.

		
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				 (1)
			Ownership; No Liens; Pledge to Credit Union. (1) Borrower is the sole owner of each Collateral Loan, free and clear of all liens (except for Permitted Encumbrances), and is fully authorized with the consent of Credit Union to sell, transfer, pledge and/or grant a security interest in each and every Collateral Loan; (2) each Collateral Loan is a good and valid loan representing an undisputed bona fide indebtedness incurred or an amount indisputably owed by the Collateral Obligor therein named, for a fixed sum as set forth in the Collateral Loan Documents; (3) no Collateral Loan is subject to any defense, offset, counterclaim, discount or allowance, and, to its knowledge, each Collateral Loan will be collected when due; (4) none of the transactions underlying or giving rise to any Collateral Loan, to its knowledge, violate any applicable state or federal laws or regulations, and all documents relating thereto are legally sufficient under such laws or regulations and shall be legally enforceable in accordance with their terms; (5) all agreements, instruments and other documents relating to any Collateral Loan are true and correct and in all material respects what they purport to be; (6) all signatures and endorsements that appear on all material agreements, instruments and other documents relating to any Collateral Loan are genuine and all signatories and endorsers have full capacity to contract; (7) Borrower has maintained books and records pertaining to said Collateral Loan in such detail, form and scope as Credit Union shall reasonably require; and (8) Credit Union has a first perfected lien on the Collateral.

		
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				 (2)
			Compliance with Laws; Enforceability; Modification; Required Documents, Etc. Each Collateral Loan and the Collateral Loan Documents related thereto (1) was made and has been serviced, to its knowledge, in compliance, in all respects, with all requirements of applicable laws, rules and regulations for such loans, (2) is genuine, valid, duly authorized, properly executed and enforceable in accordance with the terms set forth therein, without defense or offset, (3) complies with the terms of this Agreement, and

			
	
			
				 (4)
			with respect to each Collateral Loan, has been fully advanced in the respective face amounts thereof.

			
	
			
				 (3)
			Underwriting. Each Collateral Note was underwritten, to its knowledge, in accordance with underwriting guidelines that are not less stringent than the Underwriting Guidelines.

		
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				 (4)
			Collection Practices . The collection practices used with respect to each Collateral Note has been in all respects legal, proper, prudent and customary in the lending and servicing business with respect to loans similar to the loans evidenced by the Collateral Notes.

		
			 
		

		

		

		 

		

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				 8.
			Covenants . Until all Indebtedness of Borrower under the Loan Documents is indefeasibly paid or performed, and Credit Union has no further commitment (if any) to lend under the Credit Facility, Borrower agrees and covenants as follows:

		
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				 a)
			Maintenance . Borrower will do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges, agreements and franchises material to the conduct of its business.

		
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				 b)
			Books and Records; Inspection Rights. Borrower will keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities relating to the Collateral Notes. Borrower will permit any representatives designated by Credit Union, upon reasonable prior notice, to visit and inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested. In addition, Borrower agrees to grant the Illinois Department of Financial and Professional Regulation with access to its books and records regarding the Collateral and Credit Facility pursuant to the provisions of Section 12 of the Illinois Credit Union Act.

			
	
			
				 c)
			Compliance with Laws . Borrower will comply with all laws, rules, regulations and orders of any governmental authority applicable to it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

			
	
			
				 d)
			Compliance with Agreements. Borrower will comply, in all material respects with any existing credit loan facility and all other material agreements, contracts, and instruments binding on it or affecting its properties, assets or business.

		
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				 e)
			Purchase Commitments . Borrower shall promptly comply in all respects with the terms and conditions of all Purchase Commitments.

		
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				 f)
			Notices ofMaterial Events . Borrower will furnish to Credit Union prompt written notice of the following:

		
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				 (1)
			

			
	
			
			the occurrence of any Default;

		
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				 (2)
			the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against Borrower that, if adversely determined, could reasonably be expected to result in a Material Adverse Effect; and

		
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				 (3)
			any and all material adverse changes in Borrower’s financial condition and all claims made against Borrower that could materially affect the financial condition of Borrower.

		
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			Each notice delivered under this Section shall be accompanied by a statement of an officer of Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.
		

		
			 
		

		

		

		 

		

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				 g)
			Ownership and Liens . Borrower will maintain good and indefeasible title to the Collateral free and clear of all liens, security interests, encumbrances or adverse claims, except for Permitted Encumbrances. Borrower will cause any financing statement or other security instrument with respect to the Collateral to be terminated, except for Permitted Encumbrances. Borrower will defend at its expense Credit Union’s right, title and security interest in and to the Collateral against the claims of any third party.

		
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				 h)
			Collateral Notes . Borrower will take such action as may be reasonably requested by Credit Union in order to cause all Collateral Notes to be valid and enforceable and will cause all Collateral Notes to have only one original counterpart. Upon written request, Borrower will deliver to Credit Union or its agent all Collateral Notes. Borrower will not deliver possession of such Collateral to any other Person and upon written request from Credit Union, will mark each Collateral Notes with a legend indicating that such Collateral Note is subject to the security interest granted hereunder. So long as Borrower complies with the Required MCR and is otherwise in compliance with the Agreement, Borrower may sell Collateral Notes in whole or in part, whether by participation or otherwise.

		
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				 i)
			Fundamental Change . Unless Borrower notifies Credit Union in advance, furnishes a reasonable business purpose for such change and obtains Credit Union’s consent (which shall not be unreasonably withheld, conditioned or delayed), Borrower will not (i) make any material change in the nature of its business as carried on as of the Effective Date, (ii) liquidate, merge or consolidate with or into any other Person, (iii) make a change in the jurisdiction in which it is organized, or (iv) permit any change in (1) the location of any Collateral, (2) the location of any records concerning any Collateral, or (3) the state of Borrower’s organization to another jurisdiction.

		
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				 j)
			Transfer or Encumbrance . Except as otherwise permitted by this Agreement, Borrower will not (i) sell, assign (by operation of law or otherwise), transfer, exchange, lease or otherwise dispose of any of the Collateral, (ii) grant a lien or security interest in or execute, file or record any financing statement or other security instrument with respect to the Collateral, or (iii) deliver actual or constructive possession of any of the Collateral or its property to any Person other than Credit Union, Credit Union’s agent or, to the extent a third party is servicing such Collateral, such third party.

			
	
			
				 k)
			Impairment of Security Interest. Borrower will not take any action that would in any manner impair the enforceability of Credit Union’s security interest in any Collateral.

			
	
			
				 l)
			Compromise of Collateral. Borrower will not (or will not permit any Person to) adjust, settle, compromise, amend or modify any Collateral, except an adjustment, settlement, compromise, amendment or modification in good faith and in the ordinary course of business; provided, however, this exception shall terminate following written notice from Credit Union upon the occurrence and during the continuation of an Event of Default. Borrower shall provide to Credit Union such information concerning (i) any adjustment, settlement, compromise, amendment or modification of any Collateral, and (ii) any claim asserted by any account debtor for credit, allowance, adjustment, dispute, setoff or counterclaim, as Credit Union may reasonably request from time to time.

		
			 
		

		

		

		 

		

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				 m)
			Certain Agreements. Borrower will not and will not permit any Person to agree to any material amendment or other material change to or material waiver of any of its rights under any Collateral Loan.

		
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				 n)
			Limitations on Credit and Collection Policies. Borrower will not permit and will not allow any Person to make any change in servicing standards applicable to a Collateral Loan, which change would, based upon the facts and circumstances in existence at such time, reasonably be expected to materially adversely affect the collectability, credit quality or characteristics of the Collateral Loans, taken as a whole, the ability of Borrower to exercise any of its rights and remedies under any Collateral Loan Document, or the ability of Credit Union to exercise any of its rights and remedies hereunder or under any other Loan Document.

			
	
			
				 o)
			Collateral Loan Financial Statements . Each Collateral Loan extended by Borrower after the Effective Date, and each renewal or extension of a Collateral Loan by Borrower after the Effective Date, shall require the maker of the related Collateral Note to deliver to Borrower, within one hundred and fifty (150) days after the end of each fiscal year of such maker, a financial statement to include a balance sheet and income statement of such maker, as of the end of such fiscal year.

			
	
			
				 p)
			Renewal and Extension of Collateral Loans . Borrower shall not renew or extend a Collateral Loan unless (i) Borrower has obtained and delivered to Credit Union a recent Appraisal of the real property securing such Collateral Loan which complies with Borrower’s credit policies and procedures, which may be waived with Credit Union’s consent, (ii) such Collateral Loan will continue to amortize over the same number of months as stated in the Collateral Note prior to the renewal and extension thereof, (iii) each Collateral Obligor of such Collateral Loan that is not a natural person is in good standing under the laws of its jurisdiction of organization, (iv) Borrower shall thereafter service such Collateral Loan, and (v) if the maker of such Collateral Loan has a negative annual Net Income or a Debt Service Coverage Ratio of less than 1.00 to 1.00, in either case based on the collateral report compiled from the most recent current financial statement of such maker, such maker is thereafter required to provide to Borrower, within forty-five (45) days after the end of each calendar quarter, financial statements to include a balance sheet and income statement of such maker, as of the end of such calendar quarter all in form and in reasonable detail satisfactory to Borrower and duly certified (subject to year-end review adjustments) by an appropriate officer of such maker as being true and correct in all material aspects to the best of such officer’s knowledge (subject to year-end adjustments).

		
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				 q)
			Payment of Amounts Due . Borrower will pay the fees, interest and principal on Advances and the debit balance, if any, of Borrower’s Loan Account and Facility Note executed pursuant hereto in accordance with the terms hereof and thereof, and will observe, perform and comply with every covenant, term and condition herein and therein expressed or implied on the part of Borrower to be observed, performed or complied with.

		
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				 r)
			Accounts and Reports . Borrower will maintain a standard system of accounting in accordance with generally accepted accounting principles and practices and will furnish to Credit Union any financial reports or other information requested as normally prepared by the Borrower. At reasonable times Credit Union may inspect and copy Borrower’s books and records.

		
			 
		

		

		

		 

		

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				 s)
			Adverse Changes . Borrower will promptly notify Credit Union of any material adverse change in its financial condition, of the occurrence of an Event of Default hereunder, or of the filing of any suit or proceeding in which an adverse decision could have a material adverse effect upon it or its business.

			
	
			
				 t)
			Use of Proceeds . Borrower will not request an Advance under the Line of Credit or otherwise use or attempt to use the proceeds of any such Advance other than to fund the origination or acquisition of an Eligible Note, Commercial/Church Loan for which Borrower requests funding under the Line of Credit or for the purpose of pledging the Advance with an Eligible Note and Commercial/ Church Loan under the Credit Facility.

		
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				 u)
			

			
	
			
			Net Worth, Liquidity, and Debt-to-Equity.

		
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				 (1)
			

			
	
			
			Borrower’s Tangible Net Worth will at all times remain above $5,000,000.00.

		
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				 (2)
			Borrower’s Net Worth shall at all times meet or exceed five percent (5%) of Borrower’s total liabilities.

		
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				 (3)
			Borrower’s Liquidity shall at all times meet or exceed 110% of the outstanding amount due on the .Facility Note as of the end of each calendar month. In the event Borrower fails to meet the liquidity covenant as of the end of any calendar month, Borrower agrees to take commercially reasonable actions to cure such deficiency within thirty (30) days of the end of such reporting date. For the avoidance of doubt, Borrower may satisfy such deficiency by pledging Collateral in an amount equal to two hundred percent (200%) of such deficiency.

			
	
			
				 9.
			Borrower’s Covenants with Respect to Collateral Loans . Borrower covenants with respect to each Eligible Note and Commercial/Church Loan to be funded hereunder or to be held as Collateral for the Credit Facility that each such Collateral Loan will meet satisfy the following conditions:

			
	
			
				 a)
			Title Insurance . Such Eligible Note and Commercial/Church Loan will have received a title insurance policy in favor of the Borrower or title opinion required by federal and state laws.

		
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				 b)
			Validity and Enforceability. To the best of Borrower’s knowledge, each deed of trust, Mortgage, Collateral Note, promissory note or bond, and similar instrument included in each Eligible Note and Commercial/Church Loan shall have been executed by a person legally competent to execute such papers and shall be a legally valid and enforceable obligation of said person. In addition each Eligible Note, promissory note or similar instrument will be a negotiable instrument under the laws of the state having jurisdiction over such note and the negotiability thereof, and the endorsement of such note or instrument by Borrower, whether such endorsement appears on the body of the note or is accomplished by use of an allonge, is an effective endorsement of the note which does not and will not adversely affect the negotiability of such note or instrument.

		
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				 c)
			Maintain Security Interest of Credit Union. Borrower will furnish to Credit Union such documents as Credit Union may at any time deem necessary or desirable to

		
			 
		

		

		

		 

		

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			perfect and maintain in perfected status Credit Union’s security interest in the Collateral hereunder, to enable Credit Union to enforce any Eligible Note and Collateral Loan or to enable Credit Union to make direct sales and transmittals of Eligible Notes and Collateral Loans to potential investors, and have the proceeds of such sales remitted directly to Credit Union.
		

			
	
			
				 d)
			Cooperate with Credit Union. Borrower will cooperate at all times through its officers, agents, employees and directors with all officers, agents, employees, attorneys, audit representatives, and accountants of the Credit Union with respect to this Agreement and all actions contemplated or permitted hereunder.

			
	
			
				 10.
			Reporting Requirements . Until all Indebtedness of Borrower under the Loan Documents is indefeasibly paid and satisfied, and Credit Union has no further commitment to lend under the Credit Facility, Borrower agrees and covenants that it will furnish or cause to be furnished the following:

			
	
			
				 a)
			Interim Financial Statements . As soon as available, and in any event within thirty (30) days after the end of each calendar month, financial statements to include a balance sheet, income statement and cash flow statement of Borrower, as of the end of such calendar month all in form and in reasonable detail satisfactory to Credit Union and duly certified (subject to year-end review adjustments) by an appropriate officer of Borrower (i) as being true and correct in all material aspects to the best of such officer’s knowledge (subject to year-end adjustments), and (ii) as having been prepared in accordance with GAAP. Borrower further agrees to make available to a copy of Borrower’s quarterly report on Form 10-Q filed with the U.S. Securities and Exchange Commission, if requested. Borrower may satisfy this delivery requirement by furnishing notification that its quarterly reports have been electronically filed on the EDGAR System of the U.S. Securities and Exchange Commission.

		
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				 b)
			Annual Financial Statements and Tax Returns . As soon as available and in any event (i) within one hundred twenty (120) days after the end of each fiscal year, a financial statement to include a balance sheet, income statement and cash flow statement of Borrower, as of the end of such fiscal year, audited by independent certified public accountants which are registered with the Public Company Accounting Oversight Board (PCAOB), and (ii) within one hundred twenty (120) days after the end of each fiscal year, notice that its Annual Report on Form 10-K has been filed electronically on the EDGAR System of the U.S. Securities and Exchange Commission. If requested by Credit Union, Borrower further agrees to deliver a copy of its most recent tax return filed with the Internal Revenue Service within thirty (30) days after such request is made.

		
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				 c)
			Management Letters . Promptly upon receipt thereof Borrower shall furnish to Credit Union a copy of any management letter or written report submitted to Borrower by independent certified public accountants with respect to the business, condition (financial or otherwise), operations, prospects, or properties of Borrower.

			
	
			
				 d)
			Notice of Default and Events of Default. As soon as possible and in any event within five (5) Business Days after the occurrence of each Event of Default, a written notice setting forth the details of such Event of Default and the action which is proposed to be taken by Borrower with respect thereto.

		
			 
		

		

		

		 

		

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				 e)
			Borrowing Base; Reports on Collateral and Covenants . As soon as available and in any event within twenty (20) days after the end of each calendar month or more often as may be required by Credit Union, (i) a Borrowing Base report, (ii) a servicing report relating to the Collateral Loans in form and content satisfactory to Credit Union in its reasonable discretion, and (iii) in connection with the collateral Borrowing Base report delivered to Credit Union for the month following the month in which Borrower receives the current financial statements, copies of such current financial statements and an analysis of each Collateral Obligor’s compliance with the financial covenants under the Collateral Loan Documents. Borrower further agrees to deliver a certificate of valuation of the Collateral and confirmation that it has complied with the financial covenants set forth in Section 8(u) certified by an authorized officer of Borrower within twenty (20) days after the end of each calendar month.

		
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				 f)
			General Information. Borrower shall promptly deliver such other information concerning Borrower or the Collateral Loans as Credit Union may request.

		
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				 11.
			Rights of Credit Union.Credit Union shall have the rights contained in this Section at all times that this Agreement is effective.

		
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				 a)
			Financing Statements . Borrower hereby authorizes Credit Union to file one or more financing or continuation statements, and amendments thereto, relating to the Collateral.

		
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				 b)
			Power of Attorney. Borrower hereby irrevocably appoints Credit Union as Borrower’s attorney-in-fact, such power of attorney being coupled with an interest, with full authority in the place and stead of Borrower and in the name of Borrower or otherwise, from time to time following the occurrence and during the continuation of an Event of Default in Credit Union’s reasonable discretion, to take any action and to execute any instrument which Credit Union may deem necessary or appropriate to accomplish the purposes of this Agreement.

		
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				 c)
			Performance by Credit Union. If Borrower fails to perform any agreement or obligation provided for in any Loan Document (unless waived by Credit Union) within ten (10) days after Credit Union furnishes notice to Borrower of its obligations under a Loan Document, Credit Union may itself perform, or cause performance of, such agreement or obligation, and the expenses of Credit Union incurred in connection therewith shall be a part of the Indebtedness, secured by the Collateral and payable by Borrower on demand.

		
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				 d)
			Borrower’s Receipt of Proceeds . Upon the occurrence and during the continuation of an Event of Default, all amounts and proceeds (including instruments and writings) received by Borrower in respect of the Collateral shall be received in trust for the benefit of Credit Union hereunder and, upon the written request of Credit Union, shall be segregated from other property of Borrower and shall be forthwith delivered to Credit Union in the same form as so received (with any necessary endorsement) and applied to the Indebtedness in accordance with the Loan Documents.

			
	
			
				 e)
			Notification of Collateral Obligors . Credit Union may at its reasonable discretion from time to time during the continuation of an Event of Default notify any or all

		
			 
		

		

		

		 

		

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			Collateral Obligors under any Collateral Note to make payment of all amounts due or to become due to Borrower thereunder directly to Credit Union.
		

		
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				 f)
			Collection of Collateral Loans; Management of Collateral. Nothing herein contained shall be construed to constitute Credit Union as agent of Borrower for any purpose whatsoever, and Credit Union shall not be responsible or liable for any shortage, discrepancy, damage, loss or destruction of any part of the Collateral wherever the same may be located and regardless of the cause thereof (other than from acts of omission or commission constituting gross negligence or willful misconduct as determined by a final judgment of a court of competent jurisdiction). Credit Union shall not, under any circumstance or in any event whatsoever, have any liability for any error or omission or delay of any kind occurring in the settlement, collection or payment of any of the Collateral Loans or any instrument received in payment thereof or for any damage resulting therefrom (other than acts of omission or commission constituting gross negligence or willful misconduct as determined by a final judgment of a court of competent jurisdiction). Credit Union, by anything herein or in any assignment or otherwise, does not assume any of the obligations under any contract or agreement assigned to Credit Union and shall not be responsible in any way for the performance by Borrower of any of the terms and conditions thereof.

		
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				 12.
			Events of Default. Each of the following shall constitute an “Event of Default” under this Agreement:

		
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				 a)
			Payment Default. The failure, refusal or neglect of Borrower to pay when due any part of the principal of, or interest on the Indebtedness owing to Credit Union by Borrower or any other indebtedness or obligations due and owing from Borrower to Credit Union under the Loan Documents from time to time and such failure, refusal or neglect shall continue without being cured for a period of ten (10) days from the date such payment is due.

		
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				 b)
			Performance or Warranty Default. Except as otherwise provided in this Section 12, the failure of Borrower to timely and properly observe, keep or perform any covenant, agreement, warranty or condition required herein or in any of the other Loan Documents or any other agreement with Credit Union which is not cured within ten (10) Business Days following written notice from Credit Union to Borrower; provided, that (i) if such default cannot be cured within ten (10) Business Days, (ii) Borrower has, within such period, taken such actions as deemed reasonably necessary and appropriate by Credit Union to cure such default, and (iii) Borrower shall continue to diligently pursue such actions, such cure period shall be extended for a period of thirty

			
	
			
				 (30)
			

			
	
			
			days.

		
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				 c)
			Representations. Any representation contained herein or in any of the other Loan Documents made by Borrower is false, misleading or erroneous in any material respect when made or when deemed to have been made.

			
	
			
				 d)
			Default under other Debt. The occurrence of any event which permits the acceleration of the maturity of any Debt for borrowed money in an aggregate principal amount in excess of One Million Five Hundred Thousand and No/100 Dollars ($1,500,000.00) owing by Borrower to any third party under any agreement or understanding.

		
			 
		

		

		

		 

		

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				 e)
			Insolvency. If Borrower (i) becomes insolvent, or makes a transfer in fraud of creditors, or makes an assignment for the benefit of creditors, or admits in writing its inability to pay its debts as they become due; (ii) generally is not paying its debts as such debts become due; or (iii) has a liquidator, receiver, trustee or custodian appointed for, or take possession of, all or substantially all of its assets.

		
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				 f)
			Failure to Comply. The failure of Borrower to comply with the requirements of Section 2(b).

		
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				 g)
			Judgment. The entry of any judgment against Borrower or the issuance or entry of any attachments or other liens against any of the property of Borrower for an amount in excess of One Million Five Hundred Thousand And No/100 Dollars ($1,500,000.00) (individually or in the aggregate) if uninsured, undischarged, unbonded or undismissed on the date on which such judgment could be executed upon.

		
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				 h)
			Action Against Collateral. The Collateral or any portion thereof is taken on execution or other process of law in any action.

		
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				 i)
			Action of Lien Holder. The holder of any lien or security interest on the Collateral (without hereby implying the consent of Credit Union to the existence or creation of any such lien or security interest on the Collateral), declares a default thereunder or institutes foreclosure or other proceedings for the enforcement of its remedies thereunder.

			
	
			
				 j)
			Material Adverse Effect. Any event shall have occurred or is continuing which shall have had a Material Adverse Effect.

			
	
			
				 k)
			Loan Documents . (i) The Loan Documents shall at any time after their execution and delivery and for any reason cease (1) to create a valid and perfected first priority security interest (subject to Permitted Encumbrances) in and to the Collateral; or (2) to be in full force and effect or shall be declared null and void, or (ii) the validity of enforceability the Loan Documents shall be contested by Borrower or any other Person party thereto or Borrower shall deny it has any further liability or obligation under the Loan Documents.

		
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				 13.
			Credit Union’s Rights and Remedies Upon Default. Upon the occurrence of an Event of Default or upon default in any payment of principal or interest when due or at the time or on the terms provided in any instrument evidencing or related to the Indebtedness of Borrower arising hereunder or in connection herewith, the Indebtedness arising hereunder shall, at the absolute option of Credit Union, become immediately due and payable, or upon the non- performance by Borrower or any secondarily liable party of any of the agreements or covenants contained herein or in any of the papers related to the Indebtedness arising hereunder or in connection herewith, the said Indebtedness shall at the absolute option of the Credit Union become immediately due and payable, and in any such event Credit Union shall have full power and authority at any time or times thereafter to exercise all or any one or more of the remedies and shall have all of the rights of a secured party under the Uniform Commercial Code of Illinois (Code), and is hereby authorized immediately to sell the whole or any part of the Collateral for the Indebtedness evidenced hereby and by the Facility Note, or any substitute therefore or additions thereto, at any brokers’ board or at public or private sale, at the sole option of Credit Union, without

		
			 
		

		

		

		 

		

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			notice of the amounts due or claimed to be due, without demand for payment, without advertisement and without notice of sale, each and all of which is hereby expressly waived, except such notice as is required under said Code and to apply the net proceeds of such sale after deduction of all expenses for collection, sale or delivery, including, but not limited to, attorney’s fees and expenses, to the payment of the Indebtedness to Credit Union specifically secured hereby, returning the surplus, if any, to Borrower unless other disposition thereof is required by said Code. Upon any sale by virtue hereof, Credit Union may purchase, unless otherwise prohibited by said Code, the whole or any part of the aforesaid Collateral discharged from any statutory right of redemption, equity or redemption, exemption from execution, or similar rights all of which are hereby expressly waived and released. Any requirement of said Code for reasonable notice shall be met, if such notice is mailed, postage prepaid, to Borrower at the address of Borrower as shown on the records of Credit Union at least five (5) days prior to the time of the sale, disposition or other event or thing giving rise to the requirement of notice.
		

		
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				 a)
			 Set-off. It is further agreed that any moneys or other property at any time in the possession of Credit Union belonging to Borrower and held for the benefit of a Collateral Obligor, and any deposits, balance of sums at any time credited by or due from Credit Union to Borrower, may at all times, at the option of Credit Union, be held and treated as collateral security for the payment of liability of Borrower to Credit Union as provided hereunder and under the terms of the Facility Note, and Credit Union may, at its sole option and at any time or from time to time after default, set off the amount due or to become due hereon against any claim of Borrower against Credit Union. To effect these rights Borrower agrees, upon request by Credit Union, immediately to endorse, sign and execute all necessary instruments as Credit Union may request.

		
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				 b)
			Exercise of Rights and Remedies . No delay or omission to exercise any right, remedy or power shall impair the right, remedy or power nor shall be construed to be a waiver of any Event of Default or an acquiescence therein. No waiver of any Event of Default shall extend to any subsequent Event of Default. Nothing contained in this Agreement shall be construed to limit the events of default enumerated in any of the other Loan Documents and all such events of default shall be cumulative.

		
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				 14.
			Termination. This Agreement shall terminate on the Termination Date, unless terminated earlier due to a breach by Borrower provided, however, the indebtedness arising under this Agreement shall mature as provided in Section 2(k). hereof. Termination of this Agreement shall not affect the rights, liabilities, and obligations of the parties with respect to Collateral Loans funded prior to or after termination, or with respect to any security therefore. At the termination, Borrower shall pay to Credit Union in full all obligations which may have arisen under this Agreement, specifically including the payment of the debit balance of the Loan Account and the Facility Note. The Agreement may also be terminated (i) within ninety (90) days of receipt of a letter delivered by the Illinois Department of Financial and Professional Regulation to Credit Union advising that it cease and desist from further operations cease on the grounds that the safety and soundness of the Credit Union is threatened; or (ii) immediately in the event that the parties hereto receive notice from the Department Secretary that Credit Union will suffer immediate, substantial and irreparable harm if it remains a party to this Agreement.

		
			 
		

		

		

		 

		

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				 15.
			Indemnity. Borrower shall indemnify Credit Union and hold Credit Union harmless against each and every cost, loss, or expense, including court costs and attorney’s fees, arising from any failure of Borrower to comply with any governmental or regulatory requirements in connection with any Collateral Loan.

			
	
			
				 16.
			Miscellaneous.

		
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				 a)
			Place of Payment of Obligations . All sums payable to Credit Union hereunder shall be paid in Elgin, Illinois, at Credit Union’s principal Credit Union office, the address of which is set forth above, or such other place as Credit Union may designate.

			
	
			
				 b)
			Notices . All notices, requests, consents and demands shall be in writing and shall be mailed by certified or registered mail, return receipt requested, postage prepaid, to the addresses of Borrower and Credit Union, respectively, at the addresses above set out.

		
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				 c)
			Survival of Agreements. All covenants, agreements, representations and warranties made herein shall survive the termination of this Agreement with respect to all Collateral Loans made hereunder prior to such termination, until payment in full of Borrower’s obligations hereunder and under the Facility Note. All statements contained in any certificate or other instrument delivered by Borrower hereunder shall be deemed to constitute representations and warranties made by Borrower.

		
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				 d)
			Parties in Interest. All covenants and agreements contained in this Agreement shall bind and inure to the benefit of the respective successors and assigns of the parties hereto.

		
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				 e)
			Entire Agreement. This Agreement embodies the entire agreement and understanding between the parties and supersedes all prior agreements and understandings relating to the subject matter hereof.

		
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				 f)
			Governing Law. This Agreement shall be deemed a contract made under the laws of Illinois, and shall be construed and enforced in accordance with and governed by the laws of the state of Illinois.

		
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				 g)
			Counterparts . This Agreement may be executed simultaneously in several counterparts, all of which together shall constitute one and the same instrument.

			
	
			
				 h)
			Expenses of Enforcement. Borrower agrees to pay all reasonable attorneys’ fees, expenses and other costs and charges incurred in the execution of the transaction described herein, including, but not limited to, the documentation thereof, the collection of any indebtedness arising under this Agreement, the enforcement of the Credit Union’s rights hereunder, the protection and preservation of any Collateral securing any indebtedness hereunder, the perfection of any security interest or lien contemplated hereby, and maintaining the perfective status of the same. Borrower’s Loan Account may be debited by the amount of such expenses the payment of which shall be secured in the same manner as loans made hereunder.

		
			 
		

		

		

		 

		

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			IN WITNESS WHEREOF, the parties, through their authorized officers have executed this Agreement effective as of the date set out above on this 6th day of June,  2022.
		

		
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						﻿

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						KCT CREDIT UNION, an Illinois State chartered credit union

					
					
						 

					
					
						MINISTRY PARTNERS INVESTMENT COMPANY, LLC, A California limited liability company

				
	
					
						By

					
					
						/s/ Joseph Menolascino

					
					
						 

					
					
						By

					
					
						/s/ Brian Barbre

				
	
					
						﻿

					
					
						Joseph Menolascino, its VP of Operations & Lending

					
					
						 

					
					
						 

					
					
						Brian Barbre, its Chief Financial Officer

				

		
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			30

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