Document:

Exhibit 10.1

 

 

 

 

 

TERM LOAN AGREEMENT

 

 

 

between

 

 

 

THE BORROWERS LISTED ON SCHEDULE
I ATTACHED HERETO,

individually and collectively,

as Borrower

 

 

 

and

 

 

 

GUGGENHEIM REAL ESTATE, LLC,

a Delaware limited liability
company, as Lender

 

 

 

 

 

October 28, 2022

 

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	 	Page
	 	 
	ARTICLE 1 CERTAIN DEFINITIONS	1
	Section 1.1	Certain Definitions	1
	Section 1.2	Principles of Construction	16
	 	 	 
	ARTICLE 2 LOAN TERMS	17
	Section 2.1	The Loan	17
	Section 2.2	Interest Rate; Late Charge; Default Rate	17
	Section 2.3	Terms of Payment	17
	Section 2.4	Security	19
	Section 2.5	Withholding Taxes; Changes In Legal Requirements; Market Disruption	19
	Section 2.6	Reserve Funds	19
	Section 2.7	Reserved	22
	Section 2.8	Use of Proceeds	22
	Section 2.9	Cash Management	22
	Section 2.10	Intentionally omitted	23
	Section 2.11	Project Releases	23
	 	 	 
	ARTICLE 3 INSURANCE, CONDEMNATION AND IMPOUNDS	24
	Section 3.1	Insurance	24
	Section 3.2	Use and Application of Insurance Proceeds	27
	Section 3.3	Condemnation Awards	28
	Section 3.4	Impounds	29
	 	 	 
	ARTICLE 4 ENVIRONMENTAL MATTERS	29
	Section 4.1	Representations and Warranties on Environmental Matters	29
	Section 4.2	Covenants on Environmental Matters	29
	Section 4.3	Allocation of Risks and Indemnity	30
	Section 4.4	No Waiver	30
	Section 4.5	Obligations Unsecured	30
	 	 	 
	ARTICLE 5 LEASING MATTERS	30
	Section 5.1	Representations and Warranties on Leases	30
	Section 5.2	Standard Lease Form; Approval Rights; Security Deposits	31
	Section 5.3	Covenants	31
	Section 5.4	Tenant Estoppels	31
	 	 	 
	ARTICLE 6 REPRESENTATIONS AND WARRANTIES	32
	Section 6.1	Organization and Power	32
	Section 6.2	Validity of Loan Documents	32
	Section 6.3	Liabilities; Litigation	32
	Section 6.4	Taxes and Assessments	32
	Section 6.5	Other Agreements; Defaults	32
	Section 6.6	Compliance with Legal Requirements	33
	Section 6.7	Location of Borrower	33
	Section 6.8	ERISA	34
	Section 6.9	Margin Stock	34
	Section 6.10	Tax Filings	34
	Section 6.11	Solvency	34
	Section 6.12	Full and Accurate Disclosure	35

 

    i

     

    

 

	Section 6.13	Single Purpose Entity	35
	Section 6.14	Property Specific Representations	35
	Section 6.15	Taxpayer I.D. Number	35
	Section 6.16	Organization I.D. Number	35
	Section 6.17	Legal Name	35
	Section 6.18	Use of Proceeds	35
	Section 6.19	Survey	35
	Section 6.20	Financial Statements	35
	Section 6.21	Financial Condition	35
	Section 6.22	Management Agreement	36
	Section 6.23	Intentionally Omitted	36
	Section 6.24	CFIUS	36
	 	 	 
	ARTICLE 7 FINANCIAL REPORTING	36
	Section 7.1	Financial Statements	36
	Section 7.2	Accounting Principles	36
	Section 7.3	Other Information	37
	Section 7.4	Annual Budget	37
	Section 7.5	Audits and Records	37
	Section 7.6	Annual Ownership Report	37
	Section 7.7	Electronic Submissions	37
	 	 	 
	ARTICLE 8 COVENANTS	38
	Section 8.1	Due on Sale and Encumbrance; Transfers of Interests	38
	Section 8.2	Taxes; Charges	39
	Section 8.3	Property Management	39
	Section 8.4	Operation; Maintenance; Inspection; Alterations	39
	Section 8.5	Taxes on Security	40
	Section 8.6	Legal Existence; Name; Organizational Documents	40
	Section 8.7	Affiliate Transactions	41
	Section 8.8	Limitation on Other Debt	41
	Section 8.9	Further Assurances	41
	Section 8.10	Estoppel Certificates	41
	Section 8.11	Notice of Certain Events	42
	Section 8.12	Indemnification	42
	Section 8.13	Compliance With Legal Requirements	42
	Section 8.14	Single Purpose Covenants	43
	Section 8.15	Cooperation	44
	Section 8.16	Required Debt Yield; Cash Sweep	46
	Section 8.17	Financial Covenants	46
	Section 8.18	Intentionally Omitted	46
	Section 8.19	Accounts	46
	Section 8.20	ERISA	47
	Section 8.21	No Cross-Default or Cross-Collateralization	47
	Section 8.22	No Cessation of Business	47
	Section 8.23	No Cash Distributions	47
	 	 	 
	ARTICLE 9 EVENTS OF DEFAULT	48
	Section 9.1	Payments	48
	Section 9.2	Insurance	48
	Section 9.3	Sale, Encumbrance, etc	48
	Section 9.4	Covenants	48

 

    ii

     

    

 

	Section 9.5	Representations and Warranties	48
	Section 9.6	Single Purpose Entity	48
	Section 9.7	Involuntary Bankruptcy or Other Proceeding	48
	Section 9.8	Voluntary Petitions, etc	49
	Section 9.9	Failure to Satisfy the Required Debt Yield	49
	Section 9.10	Misapplication or Misappropriation of Funds	49
	Section 9.11	Failure To Make Deposits	49
	Section 9.12	Mezzanine Loan	49
	Section 9.13	Anti-Terrorism and Anti-Money Laundering	49
	Section 9.14	Other Loan Documents	49
	Section 9.15	Other Defaults	49
	Section 9.16	ERISA	49
	 	 	 
	ARTICLE 10 REMEDIES	50
	Section 10.1	Remedies - Insolvency Events	50
	Section 10.2	Remedies - Other Events	50
	Section 10.3	Lender’s Right to Perform the Obligations	50
	 	 	 
	ARTICLE 11 MISCELLANEOUS	51
	Section 11.1	Notices	51
	Section 11.2	Amendments and Waivers	52
	Section 11.3	Limitation on Interest	52
	Section 11.4	Invalid Provisions	52
	Section 11.5	Reimbursement of Expenses	53
	Section 11.6	Approvals; Third Parties; Conditions	53
	Section 11.7	Lender Not in Control; No Partnership	53
	Section 11.8	Time of the Essence	54
	Section 11.9	Successors and Assigns	54
	Section 11.10	Renewal, Extension or Rearrangement	54
	Section 11.11	Waivers	54
	Section 11.12	Cumulative Rights	54
	Section 11.13	Singular and Plural	54
	Section 11.14	Phrases	54
	Section 11.15	Exhibits and Schedules	54
	Section 11.16	Titles of Articles, Sections and Subsections	54
	Section 11.17	Lender’s Promotional Material	55
	Section 11.18	Survival	55
	Section 11.19	Waiver of Jury Trial	55
	Section 11.20	Waiver of Punitive or Consequential Damages	55
	Section 11.21	Governing Law/Jurisdiction	55
	Section 11.22	Entire Agreement	56
	Section 11.23	Counterparts; Electronic Signatures	56
	Section 11.24	Waiver of Set-Off	56
	Section 11.25	Construction	57
	Section 11.26	Use of Websites	57
	Section 11.27	Language 	57
	Section 11.28	Joint and Several Obligations	57
	Section 11.29	Electronic Imaging 	57
	 	 	 
	ARTICLE 12 LIMITATIONS ON LIABILITY	58
	Section 12.1	Limitation on Liability	58

 

    iii

     

    

 

	Section 12.2	Limitation on Liability of Lender and its Officers, Employees, etc	58
	Section 12.3	Claims Against Lender	58
	 	 	 
	ARTICLE 13 SANCTIONS, ANTI-MONEY LAUNDERING AND ANTI-BRIBERY PROVISIONS	59
	Section 13.1	Sanctions	59
	Section 13.2	Anti-Money Laundering Laws and Anti-Bribery Laws	59
	Section 13.3	Use of Proceeds	59
	Section 13.4	Certain Transfers	59
	 	 	 
	ARTICLE 14 CONDOMINIUM REGIME	60
	Section 14.1	Condominium Representations	60 
	Section 14.2	Condominium Covenants	60

 

    iv

     

    

 

EXHIBITS AND SCHEDULES

 

	EXHIBIT A	—	Legal Description of Project
	 	 	 
	EXHIBIT B	—	Reserved
	 	 	 
	EXHIBITS C-1, C-2, C-3, C-4	—	U.S. Tax Compliance Certificates
	 	 	 
	SCHEDULE I	—	Borrowers
	 	 	 
	SCHEDULE II	—	Allocated Loan Amounts
	 	 	 
	SCHEDULE 2.2(a)	—	Contract Rate
	 	 	 
	SCHEDULE 2.3(b)	—	Amortization Schedule
	 	 	 
	SCHEDULE 2.3(d)	—	Yield Maintenance Amount
	 	 	 
	SCHEDULE 2.5	—	Withholding Taxes; Changes in Legal Requirements; Market Disruption; EEA Financial Institution
	 	 	 
	SCHEDULE 2.6(a)	—	Replacement Reserve
	 	 	 
	SCHEDULE 2.6(b)	—	Leasing Reserve
	 	 	 
	SCHEDULE 2.6(c)	—	Required Repairs
	 	 	 
	SCHEDULE 5.1(a)	—	Leasing Matters
	 	 	 
	SCHEDULE 5.1(b)	—	Rent Roll
	 	 	 
	SCHEDULE 6.1(a)	—	States of Organization and Borrower’s Taxpayer I.D. 
	 	 	 
	 	 	Number and Organization I.D. Number
	 	 	 
	SCHEDULE 6.1(b)	—	Borrower’s Organizational Chart
	 	 	 
	SCHEDULE 6.3	—	Liabilities; Litigation
	 	 	 
	SCHEDULE 6.8	—	ERISA

 

    v

     

    

 

TERM LOAN AGREEMENT

 

This Term Loan
Agreement (this “Agreement”) is entered into as of October 28, 2022 between THE ENTITIES LISTED ON SCHEDULE
I ATTACHED HERETO (collectively, the “Borrower”), and GUGGENHEIM REAL ESTATE, LLC, a Delaware limited
liability company (“Lender”). The following recitals form the basis and are a material part of this Agreement:

 

 A. Borrower desires to obtain the Loan from Lender.

 

B. Lender
is willing to make the Loan to Borrower subject to and in accordance with the conditions and terms of this Agreement and the other Loan
Documents.

 

NOW, THEREFORE,
in consideration of the covenants set forth in this Agreement, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged by the parties hereto, the parties agree as follows:

 

ARTICLE 1

 

CERTAIN DEFINITIONS

 

Section 1.1 Certain Definitions. As used herein, the
following terms have the meanings indicated:

 

“A/B Notes” has the meaning assigned
in Section 8.15(b).

 

“Above
the Fund Transfer” shall mean any Transfer or Permitted Transfer of any direct or indirect legal or beneficial interest
in Wheeler Real Estate Investment Trust, Inc., a Maryland corporation.

 

“Act” has the meaning assigned in
Section 8.14(a).

 

“Accounts”
means the Collections Account, the Cash Management Account (if any), and each other deposit account now or hereafter pledged by Borrower
to Lender as security for the Obligations or any portion thereof.

 

“Affiliate”
shall mean, as to any Person, any other Person that, directly or indirectly, is in control of, is controlled by or is under common control
with such Person or is a director or officer of such Person or of an Affiliate of such Person.

 

“Agreement”
means this Term Loan Agreement, as originally executed by Borrower, and Lender, as the same may be supplemented, amended, modified, consolidated,
extended, refinanced, substituted, replaced, renewed and/or restated from time to time.

 

“Allocated Loan Amount”
shall, for each Project, have the meaning set forth on Schedule II attached hereto.

 

“Alterations Threshold”
has the meaning assigned in Section 8.4(b).

 

“Amortization Payment” has the meaning assigned in
Section 2.3(b).

 

“Anti-Bribery
Laws” means the U.S. Foreign Corrupt Practices Act of 1977, as amended, 15 U.S.C. §§ 78dd-1, et seq., the
U.K. Bribery Act of 2010, and all other applicable anti-bribery or corruption laws.

 

     

     

    

 

“Anti-Money
Laundering Laws” means the USA Patriot Act, the U.S. Bank Secrecy Act and locally applicable anti-money laundering or terrorism
laws.

 

“Application”
means that certain Loan Application, dated as of March 25, 2022, accepted on behalf of Borrower with respect to the Project.

 

“Appraisal”
means an as-is appraisal of the Project prepared by an Appraiser, which appraisal must comply in all respects with the standards for real
estate appraisal established pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended,
and otherwise in form and substance satisfactory to Lender.

 

“Appraiser”
shall mean Cushman or any other “state certified general appraiser” as such term is defined and construed under applicable
regulations and guidelines issued pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as
amended, which appraiser must have been licensed and certified by the applicable Governmental Authority having jurisdiction in the State,
and which appraiser shall have been selected by Lender.

 

“Assignment
of Management Agreement” means, for each Borrower and its Project, the Assignment of Management Agreement and Subordination
of Management Fees dated as of the date hereof, as originally executed by the applicable Borrower and Property Manager, to and in favor
of Lender, as each the same may be supplemented, amended, modified, consolidated, extended, substituted, replaced, renewed and/or restated
from time to time, together with all consents from other parties as contemplated therein.

 

“Assignment
of Rents and Leases” means, for each Borrower and its Project, the Assignment of Rents and Leases dated as of the date hereof,
as originally executed by the applicable Borrower in favor of Lender, and pertaining to a Project, as the same may be supplemented, amended,
modified, consolidated, extended, substituted, replaced, renewed and/or restated from time to time.

 

“Bankruptcy Code”
means the Federal Bankruptcy Code of 1978, as amended from time to time.

 

“Bankruptcy Party” has the meaning
assigned in Section 9.7.

 

“Below
the Fund Transfer” means, to the extent not covered as an Above the Fund Transfer, any Transfer or Permitted Transfer of
the direct partnership, membership or other ownership interests or beneficial ownership interests in Borrower or Guarantor. For the avoidance
of doubt, this Agreement shall not restrict the creation or transfers of de minimus, non-controlling interests of certain preferred shareholders,
membership units or partnership interests in the ownership structure of Borrower or Guarantor solely for real estate investment trust
compliance purposes, and such transfers shall be deemed to be Permitted Transfers.

 

“Borrower” has the meaning assigned
in the Preamble.

 

“Borrower Party” means,
individually and collectively, each Borrower and Guarantor.

 

“Business Day” means a day (other than a
Saturday or Sunday) on which (a) commercial national banks are not authorized or required to close in (i) New York City, or (ii) the
place of business of each of (A) Lender and (B) any Servicer, and (b) the New York Stock Exchange and the Federal Reserve Bank of
New York are each open for business.

 

“Capital Expenditures Budget” has
the meaning assigned in Schedule 2.6(a).

 

    2

     

    

 

“Cash Management Account” has the
meaning assigned in Section 2.9(a).

 

“Cash
Management Agreement” means any cash management agreement executed by Borrower, Lender, Cash Management Bank and Property
Manager in accordance with Section 2.9(c), as the same may be supplemented, amended, modified, consolidated, extended, refinanced,
substituted, replaced, renewed and/or restated from time to time.

 

“Cash
Management Bank” means a depositary bank designated by Lender to serve as the cash management bank under the Cash Management
Agreement pursuant to Section 2.4(b).

 

“Cash Sweep Cure Event” has the
meaning assigned in Section 2.9(b).

 

“Cash
Sweep Period” means a period of time beginning on the date of a Cash Sweep Trigger and continuing until the date of a Cash
Sweep Cure Event.

 

“Cash
Sweep Pro Forma Net Cash Flow” means the amount by which Cash Sweep Pro Forma Operating Revenues exceed (a) Underwritten
Expenses, plus (b) all Underwritten Reserves. Lender’s calculation of Cash Sweep Pro Forma Net Cash Flow shall be calculated in
good faith and shall be final absent manifest error.

 

“Cash
Sweep Pro Forma Operating Revenues” means, for any period as reasonably estimated by Lender, the Operating Revenues received
for the Project during the trailing twelve (12) month period.

 

“Cash Sweep Trigger” has the meaning
assigned in Section 2.9(a).

 

“CFIUS”
means the Committee on Foreign Investment in the United States or any successor agency.

 

“CFIUS
Approval” means (a) written confirmation provided by CFIUS that the Loan is not a Covered Transaction under the DPA, (b)
written confirmation provided by CFIUS that it has completed its review or, if applicable, investigation of the Loan pursuant to a declaration
or notice filed under the DPA and determined that there are no unresolved national security concerns with respect to the Loan, or (c)
CFIUS shall have sent a report to the President of the United States requesting the decision of the President of the United States under
the DPA, and the President shall have announced a decision not to take any action to suspend, prohibit, or place any limitations on the
Loan.

 

“CFIUS Review” has the meaning
assigned in Section 8.13.

 

“Change” has the meaning assigned in Schedule 2.5(f).

 

“Code”
means the Internal Revenue Code of 1986, as amended, reformed or otherwise modified from time to time, and the regulations promulgated
thereunder from time to time.

 

“Collateral
Assignment” means, for each Borrower and its Project, that certain Collateral Assignment dated as of the date hereof, as
originally executed by such Borrower in favor of Lender, as the same may be supplemented, amended, modified, consolidated, extended, substituted,
replaced, renewed and/or restated from time to time.

 

“Collections Account” has the meaning
assigned in Section 2.4(b).

 

    3

     

    

 

“Collections
Account DACA” means, collectively, those certain Blocked Account Agreements dated as of the date hereof, as originally executed
by each entity comprising Borrower, Lender and Depositary Bank, as the same may be supplemented, amended, modified, consolidated, extended,
refinanced, substituted, replaced, renewed and/or restated from time to time.

 

“Commitment”
the amount set forth on Lender’s signature page hereof or in any subsequent amendment hereof or in any assignment and assumption
agreement related hereto.

 

“Condominium”
means the condominium regime to be imposed on and with respect to the Project subject to and in accordance with the Condominium Act and
the Condominium Documents.

 

“Condominium
Act” means the Pennsylvania Uniform Condominium Act and all amendments, modifications and/or replacements thereof and/or
supplements thereto, and rules and regulations with respect thereto, now or hereafter enacted.

 

“Condominium
Declaration” means the Declaration of Condominium for Trexler Mall, A Land Condominium, recorded on September 1, 2021 as
instrument number 2021037658 with the Recorder of Deeds Office of Lehigh County, Pennsylvania.

 

“Condominium
Documents” means all documents required by the Condominium Act with respect to the imposition of a condominium regime upon
the Project, and the regulation, management or administration of the condominium regime after such imposition, including (without limitation)
a declaration of condominium, offering plan, articles of incorporation, if applicable, by-laws and rules and regulations of a condominium
association, as the same may be supplemented, amended, modified, consolidated, extended, substituted, replaced, renewed and/or restated
from time to time.

 

“Condominium
Unit” means each Unit (as defined in the Condominium Declaration) together with its appurtenant Common Elements and Limited
Common Elements (each as defined in the Condominium Declaration) in a condominium regime with respect to the portion of the Project validly
formed pursuant to the Condominium Act and in accordance with the terms hereof.

 

“Connection
Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are
franchise Taxes or branch profits Taxes.

 

“Contract Rate” has the meaning
assigned in Schedule 2.2(a).

 

“control”
or “controlled” means the possession, directly or indirectly, of the power to direct or cause the direction
of the day-to-day management and policies of an entity through the ownership of voting securities or equity interests, by contract or
otherwise.

 

“Controlled
Group” means all members of a controlled group of corporations and all trades or businesses (whether or not incorporated)
under common control which, together with any Loan Party or any of their respective Subsidiaries or Affiliates (as applicable), are treated
as a single employer under Section 414(b) or (c) of the Code, and any organization which is required to be treated as a single employer
with any Loan Party under Sections 414(m) or 414(o) of the Code.

 

“Covered Transaction” has the meaning
assigned in the DPA.

 

“Creditors’
Rights Law” shall mean with respect to any Person any existing or future law of any state or Federal jurisdiction, domestic
or foreign, relating to bankruptcy, insolvency, reorganization, conservatorship, arrangement, adjustment, winding-up, liquidation, dissolution,
assignment for the benefit of creditors, composition or other relief with respect to its debts or debtors.

 

    4

     

    

 

“Debt”
means, for any Person, without duplication: (a) all indebtedness of such Person for borrowed money, for amounts drawn under a letter of
credit, or for the deferred purchase price of property for which such Person or its assets is liable, (b) all unfunded amounts under a
loan agreement, letter of credit, or other credit facility for which such Person would be liable, if such amounts were advanced under
the credit facility, (c) all amounts required to be paid by such Person as a guaranteed payment to partners or a preferred or special
dividend, including any mandatory redemption of shares or interests, (d) all indebtedness guaranteed by such Person, directly or indirectly,
(e) all obligations under leases that constitute capital leases for which such Person is liable, and (f) all obligations of such Person
under interest rate swaps, caps, floors, collars and other interest hedge agreements, in each case whether such Person is liable contingently
or otherwise, as obligor, guarantor or otherwise, or in respect of which obligations such Person otherwise assures a creditor against
loss.

 

“Debt
Service” means the aggregate interest, scheduled principal, and other payments due on account of the Loan and on any other
outstanding Debt of Borrower (whether permitted or not permitted by Lender) for the period of time for which calculated, but excluding
payments of Excess Cash Flow applied to reduction of principal.

 

“Debt Yield” means the ratio of
(a) Net Operating Income for the immediately preceding twelve (12) month period to (b) the Principal Balance.

 

“Default
Rate” means the lesser of (a) the maximum rate of interest allowed by applicable Legal Requirements, and (b) five percent
(5%) per annum in excess of the Contract Rate.

 

“Depositary
Bank” means Manufacturers and Traders Trust Company, a New York State-chartered bank, and its successors and assigns.

 

“Dodd-Frank”
means the Dodd-Frank Wall Street Reform and Consumer Protection Act, as amended, modified, replaced and/or supplemented from time to time,
and any orders, rules, regulations, rulings, authorizations, determinations, guidelines, directives and/or any other requirements and/or
provisions issued under such Act, existing now or in the future.

 

“DPA”
means the Defense Production Act of 1950, 50 U.S.C. § 4565, as amended, all laws and regulations related thereto, and all mandates,
requirements, powers and similar requirements imposed or exercised thereunder.

 

“Employee
Benefit Plan” means any employee benefit plan within the meaning of Section 3(3) of ERISA or other plan established or maintained,
or to which contributions have been made, by any Loan Party.

 

“Environmental
Laws” means any Legal Requirement governing health, safety, industrial hygiene, the environment or natural resources, or
Hazardous Materials, including, without limitation, such Legal Requirements governing or regulating the use, generation, storage, removal,
recovery, treatment, handling, transport, disposal, control, discharge of, or exposure to, Hazardous Materials.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, modified, replaced and/or supplemented from time to time, and any
current or future regulations thereunder.

 

“Eurodollar Rate” has the meaning
assigned in Schedule 2.2(a).

 

    5

     

    

 

“Event of Default”
has the meaning assigned in Article 9.

 

“Excess
Cash Flow” means, for any period, the amount by which Operating Revenues exceed the sum of (a) Operating Expenses, (b) Debt
Service, and (c) Underwritten Reserves.

 

“Excluded
Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or
deducted from a payment to a Recipient, (a) Taxes imposed on (or measured by) net income (however denominated), franchise Taxes, and
branch profits or similar Taxes, in each case (i) imposed as a result of such Recipient being organized under the laws of, or having
its principal office or, in the case of Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any
political subdivision thereof) or (ii) that are Other Connection Taxes; (b) in the case of Lender, any U.S. federal Withholding Tax
that is imposed on amounts payable to or for the account of Lender with respect to an applicable interest in the Loan or the
Commitment pursuant to a law in effect on the date on which (i) Lender acquires such interest in the Loan or the Commitment (other
than pursuant to an assignment request by Borrower under paragraph (h)(i) of Schedule 2.5) or (ii)
Lender changes its lending office), except in each case to the extent that, pursuant to paragraph (c) of Schedule
2.5, amounts with respect to such Taxes were payable either to Lender’s assignor, immediately before Lender became a
party hereto or to Lender immediately before it changed its lending office; (c) Taxes attributable to such Recipient’s failure
to comply with paragraph (a) of Schedule 2.5; and (d) any U.S. federal Withholding Taxes imposed under
FATCA.

 

“Executive
Order” means Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001, and relating to Blocking Property
and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism, as amended, modified, replaced and/or
supplemented from time to time.

 

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

 

“FDIC”
means the Federal Deposit Insurance Corporation or any successor agency.

 

“Financial Covenants” has the meaning
assigned in Section 8.17.

 

“Fixed Rate”
has the meaning assigned in Schedule 2.2(a).

 

“GAAP”
means the generally accepted accounting principles, consistently applied, set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board (or agencies with similar functions of comparable stature and authority within accounting profession), or in such other
statements by such entity as may be in general use by significant segments of the U.S. accounting profession, to the extent such principles
apply to partnerships, corporations or limited liability companies, as applicable.

 

“Golden
Triangle Environmental Covenants” means (a) that certain Final Report and approval letter dated October 1, 1999 from the
Pennsylvania Department of Environmental Protection, and (b) that certain Final Report and approval letter dated August 6, 1998 from the
Pennsylvania Department of Environmental Protection, each applicable to the Golden Triangle portion of the Project and attached as Exhibit
A-1 to the Indemnity Agreement.

 

    6

     

    

 

“Governmental
Authority(ies)” means any court, legislature, council, agency, authority, board (including, without limitation, environmental
protection, planning and zoning), bureau, commission, department, office or instrumentality of any nature whatsoever of any governmental
or quasi-governmental unit, or any governmental, public or quasi-public authority, of any foreign, domestic, federal, state, county, city,
borough, municipal government or other political subdivision of any of the foregoing, or any official thereof, whether now or hereafter
in existence.

 

“Guarantor” means Wheeler REIT,
L.P., a Virginia limited partnership.

 

“Hazardous
Material(s)” means (i) any and all substances, materials, wastes or mixtures which are or shall be listed, defined, or otherwise
determined by any Governmental Authority to be hazardous, toxic or otherwise regulated, affected, controlled or which may give rise to
liability or a standard of conduct under any Environmental Laws, including any substance identified under any Environmental Law based
upon their harmful or deleterious properties as a pollutant, contaminant, hazardous waste, hazardous constituent, special waste, hazardous
substance, hazardous material or toxic substance, or petroleum or petroleum-derived substance or waste; (ii) asbestos or asbestos-containing
materials; (iii) polychlorinated biphenyls (PCBs) and compounds containing them; (iv) radon gas; (v) laboratory wastes; (vi) experimental
products, including genetically engineered microbes and other recombinant DNA products; (vii) petroleum, crude oil, natural gas, natural
gas liquid, liquefied natural gas, other petroleum or chemical products, whether liquid, solid or gaseous form, or synthetic gas useable
as fuel; (viii) “source,” “special nuclear” and “by-product” material, as defined in the Atomic Energy
Act of 1954, 42 U.S.C. § 3011 et seq., as amended from time to time; (ix) explosives, radioactive or flammable materials;
(x) underground or above-ground storage tanks, whether empty or containing any substance; (xi) indoor air contaminants, mold, fungi,
toxins, irritants and other allergens and microbial matter; and (xii) lead and lead-based paint.

 

“Indemnified
Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any
obligation of any Loan Party under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

 

“Indemnity
Agreement” means each Hazardous Materials Indemnity Agreement now or hereafter executed by Guarantor and Borrower, collectively
and jointly and severally, as indemnitors, to and in favor of Lender, as the same may be supplemented, amended, modified, consolidated,
extended, substituted, replaced, renewed and/or restated from time to time.

 

“Independent
Director” of any corporation or limited liability company shall mean an individual with at least three (3) years of employment
experience serving as an independent director at the time of appointment who is provided by, and is in good standing with, CT Corporation,
Corporation Service Company, National Registered Agent, Inc., Wilmington Trust Company, Stewart Management Company, Lord Securities Corporation
or, if none of those companies is then providing professional independent directors or managers, another nationally recognized company
reasonably approved by Lender, that is not an Affiliate of such corporation or limited liability company and that provides professional
independent directors or managers and other corporate services in the ordinary course of its business, and which individual is duly appointed
as a member of the board of directors or board of managers of such corporation or limited liability company and is not, and has never
been, and will not while serving as independent director or manager be:

 

(a) a
member (other than an independent, non-economic “springing” member), partner, equityholder, manager, director, officer or
employee of such corporation or limited liability company, or any of its respective equityholders or Affiliates (other than as an independent
director or manager of an Affiliate of such corporation or limited liability company that is not in the direct chain of ownership of such
corporation or limited liability company and that is required by a creditor to be a single purpose bankruptcy remote entity, provided
that such independent director or manager is employed by a company that routinely provides professional independent directors or managers
in the ordinary course of business);

 

    7

     

    

 

(b) a
customer, creditor, supplier or service provider (including provider of professional services) to such corporation or limited liability
company or any of its respective equityholders or Affiliates (other than a nationally recognized company that routinely provides professional
independent directors or managers and other corporate services to such corporation or limited liability company or any of its respective
equityholders or Affiliates in the ordinary course of business);

 

(c) a
family member of any such member, partner, equityholder, manager, director, officer, employee, creditor, supplier or service provider;
or

 

(d) a
Person that controls or is under common control with (whether directly, indirectly or otherwise) any of the Persons referred to in clauses
(a), (b) or (c) above.

 

A natural person who otherwise satisfies
the foregoing definition other than subparagraph (a) by reason of being the independent director or manager of a “special purpose
entity” in the direct chain of ownership of such corporation or limited liability company shall not be disqualified from serving
as an independent director or manager of such corporation or limited liability company, provided that the fees that such individual earns
from serving as independent directors or managers of such Affiliates in any given year constitute in the aggregate less than five percent
(5%) of such individual’s annual income for that year. For purposes of this paragraph, a “special purpose entity” is
an entity whose organizational documents contain restrictions on its activities and impose requirements intended to preserve such entity’s
separateness that are substantially similar to those contained in Section 8.14.

 

“Independent
Director Event” shall mean, with respect to an Independent Director, (i) any acts or omissions by such Independent Director
that constitute willful disregard of such Independent Director’s duties under the applicable organizational documents, (ii) such
Independent Director engaging in or being charged with, or being convicted of, fraud or other acts constituting a crime under any law
applicable to such Independent Director, (iii) such Independent Director is unable to perform his or her duties as Independent Director
due to death, disability or incapacity, or (iv) such Independent Director no longer meeting the definition of Independent Director in
this Agreement.

 

“IRS” means the U.S. Internal Revenue
Service or any successor agency.

 

“Lease(s)”
means a fully executed lease(s), occupancy agreement(s), license agreement(s) or other rental or occupancy arrangement(s) by or binding
upon Borrower, as lessor, for space in the Project.

 

“Leasing Reserve” has the meaning
assigned in Schedule 2.6(b).

 

“Legal
Requirement(s)” means, collectively, all foreign, domestic, federal, state, local and municipal laws, statutes, codes, ordinances,
rules, rulings, orders, judgments, decrees, injunctions, arbitral decisions, regulations, authorizations, determinations, directives and
any other requirements and/or provisions (including building codes and zoning regulations and ordinances) of all Governmental Authorities,
whether now or hereafter in force, which may be or become applicable to Borrower or any Borrower Party, the relationship of lender and
borrower, Lender, the Project, any of the Loan Documents, or any part of any of them (whether or not the same may be valid) and all requirements,
obligations and conditions of all instruments of record on the date hereof.

 

“Lender” has the meaning assigned
in the Preamble, and its successors and assigns.

 

    8

     

    

 

“Lender
Exposure” means any one or more of the following: (i) the Loan is in violation of Legal Requirements, or (ii) the Project
or any other collateral for the Loan or any portion thereof (including the Rents (as defined in the Mortgage) or other income to be derived
therefrom) is subject to forfeiture or to being frozen, seized, sequestered or otherwise impaired by a Governmental Authority, or (iii)
the Loan or any payments made or to be made in respect thereof (including principal and interest) is subject to forfeiture or to being
frozen, seized, sequestered or otherwise impaired by a Governmental Authority or (iv) Lender or any of its collateral for the Loan or
the Lien priority thereof or Lender’s rights or remedies in respect of the Loan or the collateral therefor is otherwise impaired
or adversely affected, or (v) Lender, its affiliates and its or their respective directors, officers, employees, attorneys, agents, advisors,
participants, successors and assigns is subject to criminal or civil liability or penalty.

 

“Lending Installation” means any
office, branch, subsidiary or Affiliate of Lender.

 

“Lien”
means any interest, or claim thereof, in the Project securing an obligation owed to, or a claim by, any Person other than the owner of
the Project, whether such interest is based on common law, statute or contract, including the lien or security interest arising from a
deed of trust, mortgage, assignment, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment
or bailment for security purposes. The term “Lien” shall include reservations, exceptions, encroachments, easements, rights
of way, covenants, conditions, restrictions, leases and other title exceptions and encumbrances affecting the Project.

 

“Loan”
means the loan to be made by Lender to Borrower under this Agreement and all other amounts secured by the Loan Documents.

 

“Loan Amount” has the meaning assigned
in Section 2.1.

 

“Loan
Documents” has the meaning assigned in Section 2.4(a), as any or all of the same may be supplemented, amended,
restated and/or replaced from time to time.

 

“Loan Party” means each Borrower
and Guarantor.

 

“Loan
Year” means the period between the date hereof and October 27, 2023 for the first Loan Year and the period between each
succeeding October 28th and October 27th until the Maturity Date.

 

“Lockout Account” has the meaning
assigned in Section 2.9(a).

 

“Major
Lease” means each of (a) a ground Lease, sandwich Lease or master Lease, (b) intentionally omitted, or (c) a Lease, when
combined with all other space in the Project leased to the same tenant or an Affiliate thereof, demises space in excess of 15,000 square
feet.

 

“Management
Agreement” shall mean those certain WHLR Management Agreements and Asset Management Agreement between Borrower and Property
Manager as described in the Assignment of Management Agreement.

 

“Material
Action” shall mean, as to any Person, an action to file any insolvency, or reorganization case or proceeding, to institute
proceedings to have such Person be adjudicated bankrupt or insolvent, to institute proceedings under any applicable insolvency law, to
seek any relief under any law relating to relief from debts or the protection of debtors, to consent to the filing or institution of bankruptcy
or insolvency proceedings against such Person, to file a petition seeking, or consent to, reorganization or relief with respect to such
Person under any applicable federal or state law relating to bankruptcy or insolvency, to seek or consent to the appointment of a receiver,
liquidator, assignee, trustee, sequestrator, custodian, or any similar official of or for such Person or a substantial part of its property,
to make any assignment for the benefit of creditors of such Person, to admit in writing such Person’s inability to pay its debts
generally as they become due (unless such admission is true), or to take action in furtherance of any of the foregoing.

 

    9

     

    

 

“Material
Adverse Effect” or “Material Adverse Change” means a material adverse effect upon or a material
adverse change in (i) the business affairs, operations or the financial condition of Borrower or Guarantor or (ii) the ability of Borrower
or Guarantor to perform its or his or her material contractual obligations under any Loan Document to which it or he or she is a party,
or (iii) the validity or priority of the Lien of the Mortgage or the validity or enforceability of this Agreement or any of the other
Loan Documents or any of the material rights, remedies or options of Lender hereunder or thereunder or (iv) the Project or the other collateral
for the Loan or a material portion or component thereof (including the value or marketability thereof).

 

“Major
Potential Default” means a monetary Potential Default or a material non-monetary Potential Default.

 

“Maturity
Date” means the earlier of (a) the Scheduled Maturity Date, or (b) any earlier date on which the entire Loan is required
to be paid in full, by acceleration or otherwise, under this Agreement or any of the other Loan Documents.

 

“Member” has the meaning assigned
in Section 8.14(a).

 

“Moody’s” means Moody’s
Investors Services, Inc., and its successors in interest.

 

“Mortgage”
means, for any Project, the mortgage, deed of trust or deed to secure debt, as applicable, and security agreement and fixture filing,
dated as of the date hereof, as originally executed by the applicable Borrower in favor of, or for the benefit of, Lender, covering and
creating a first lien on such Project, as the same may be supplemented, amended, modified, consolidated, extended, substituted, replaced,
renewed and/or restated from time to time.

 

“Multiemployer
Plan” means an Employee Benefit Plan maintained pursuant to a collective bargaining agreement or any other arrangement to
which any Loan Party or any member of the Controlled Group is a party to which more than one employer is obligated to make contributions
and which otherwise is a “multiemployer plan” as defined in Section 3(37) of ERISA.

 

“Net
Operating Income” means the amount by which Operating Revenues exceed Operating Expenses.

 

“Note(s)”
means the Promissory Note dated as of the date hereof from Borrower payable to Lender evidencing the Loan, as originally executed, and
any substitute promissory note(s) executed by Borrower pursuant to Section 8.15, all as the same may be issued, supplemented,
amended, modified, consolidated, extended, refinanced, substituted, replaced, renewed and/or restated from time to time.

 

“Notice Date” has the meaning assigned
in Section 2.11(a).

 

“Obligations”
means all loans, advances, debts, liabilities and obligations for monetary amounts (whether such amounts are liquidated or determinable)
owing by Borrower to Lender, and all present or future covenants and duties of Borrower regarding such amounts, of any kind or nature,
whether evidenced by any note, agreement or other instrument, arising under this Agreement or any of the other Loan Documents. This term
includes all interest, charges, expenses, reasonable attorneys’ fees and any other sum chargeable to Borrower under any of the Loan
Documents.

 

    10

     

    

 

“OECD”
means the Organization for Economic Cooperation and Development or any successor organization.

 

“OFAC”
means the U.S. Department of the Treasury’s Office of Foreign Assets Control.

 

“Operating Account” has
the meaning assigned in Section 2.9(a).

 

“Operating
Expenses” means, for any period, all reasonable and necessary recurring expenses of operating a Project in the ordinary
course of business and which are directly associated with and fairly allocable to such Project for the applicable period, including ad
valorem real estate taxes and assessments, insurance premiums, maintenance costs, management fees and costs, accounting, legal, and other
professional fees, and other expenses incurred by Lender and reimbursed by Borrower under this Agreement and the other Loan Documents,
and wages, salaries, and personnel expenses, but excluding Debt Service, extraordinary one-time expenses, capital expenditures, deposits
to Reserve Funds, any payment or expense that is non-recurring or for which Borrower was or is to be reimbursed from proceeds of the Loan
or insurance or by any third party (including without limitation, any Tenant), and any non-cash charges such as depreciation and amortization.
Operating Expenses shall not include federal, state or local income taxes or legal and other professional fees unrelated to the operation
of such Project.

 

“Operating
Revenues” means, for any period, all revenues of Borrower from operation of a Project or otherwise arising in respect of
such Project after the date hereof which are properly allocable to such Project for the applicable period, including receipts from Leases
and parking agreements, license and concession fees and charges and other miscellaneous operating revenues, proceeds from rental or business
interruption insurance, any sum received or receivable from any deposit held as security for performance of a Tenant’s obligation,
any other moneys paid or payable in respect of any display or advertising at such Project including any fixture or fitting at such Project
for display or advertisement, but excluding Tenant security or other deposits until they are forfeited by the depositor, advance rentals
until they are earned, disbursements from Reserve Funds, extraordinary or non-recurring income (including without limitation, lease termination
payments), and proceeds from a sale or other disposition.

 

“Other
Connection Taxes” means with respect to any Recipient, Taxes imposed as a result of a present or former connection between
such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered,
become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged
in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in the Loan or the Loan Document).

 

“Other
Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise
from any payment made under, from the execution, delivery, performance, enforcement, filing, recordation or registration of, from the
receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other
Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to paragraph (h) of Schedule
2.5.

 

“Partial Release Date”
has the meaning assigned in Section 2.12.

 

“Partial
Release Price” means (i) for any individual Partial Project Release Parcel the subject of a Partial Project Release,
one hundred ten percent (110%) of the allocated loan amount for such Partial Project Release Parcel, as determined by Lender upon
receipt of an Appraisal pursuant to Section 2.12, or (ii) for multiple Partial Project Release Parcels the subject of
simultaneous Partial Project Release, one hundred ten percent (110%) of the aggregate the allocated loan amount for all such Partial
Project Release Parcel, as determined by Lender upon receipt of an Appraisal pursuant to Section 2.12.

 

    11

     

    

 

“Partial Project Release” has the
meaning assigned in Section 2.12.

 

“Patriot
Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism
Act of 2001, Public Law 107-56 and the regulations promulgated thereunder, as each of the same may be amended, modified, replaced and/or
supplemented from time to time.

 

“Payment Date” has the meaning assigned
in Section 2.3(a).

 

“Pension
Plan” means an employee pension benefit plan within the meaning of Section 3(2) of ERISA (other than a Multiemployer Plan)
that is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Code and as to which any Loan
Party or any member of the Controlled Group may have any liability.

 

“Permitted Transfer” means

 

(a) leasing
of space within the Project, so long as Borrower complies with the provisions of the Loan Documents relating to such leasing activity;

 

(b) a
Transfer by devise or descent or by operation of law upon the death of an individual having a legal or beneficial ownership or economic
interest in Borrower;

 

(c) any
Below the Fund Transfer, in one or a series of transactions, of the direct membership interests in Borrower or Guarantor, so long as,
at all times during the term of the Loan, both of the following shall be satisfied: (i) Guarantor or its successor by merger or consolidation
or a sale of all or substantially all of its assets owns, directly or indirectly, at least fifty-one percent (51%) of the voting and beneficial
ownership interests in Borrower, and (ii) Guarantor or its successor by merger or consolidation or a sale of all or substantially all
of its assets shall maintain the day to day control and management of Borrower, or

 

(d) Above
the Fund Transfers, provided that after giving effect to any such Above the Fund Transfer the following listed entities (either individually
or in combination with one another) shall own and retain at least fifty-one (51%) percent of the direct or indirect controlling ownership
interests of Wheeler REIT, L.P., a Virginia limited partnership: (1) Wheeler Real Estate Investment Trust, Inc.

 

(e) Lender’s
consent shall not be required in connection with one or a series of Transfers, of not more than forty-nine percent (49%) of the membership
interests in a Borrower; provided, however, no such Transfer shall result in the change of control in Borrower, and as a condition to
each such Transfer, Lender shall receive not less than thirty (30) days prior written notice of such proposed Transfer. Borrower shall
pay any and all reasonable out-of-pocket costs and expenses incurred in connection with such Transfers (including Lender’s counsel
fees and disbursements).

 

“Person”
means any individual, corporation, partnership, joint venture, association, joint stock company, trust, trustee, estate, limited liability
company, unincorporated organization, real estate investment trust, government or any agency or political subdivision thereof, or any
other form of entity.

 

“Pledge
of Accounts” means that certain Pledge of Accounts dated as of the date hereof, as originally executed by Borrower in favor
of Lender, as the same may be supplemented, amended, modified, consolidated, extended, substituted, replaced, renewed and/or restated
from time to time.

 

    12

     

    

 

“PML” has the meaning assigned in
Section 3.1(a)(vi).

 

“Potential
Default” means the occurrence of any event or condition which, with the giving of notice, the passage of time, or both,
would reasonably be expected to constitute an Event of Default, as determined in good faith.

 

“Prepayment Date” has the
meaning assigned in Schedule 2.3(d).

 

“Prepayment Fee” has the meaning assigned in Section
2.3(d).

 

“Prime Rate” has the meaning assigned in Schedule 2.2(a).

 

“Principal Balance” means the outstanding
principal balance of the Note from time to time.

 

“Prohibited
Person” means any Person: (a) listed in the Annex to, or that fails to comply with the provisions of, the Executive Order;
(b) that is owned or controlled by, or acting for or on behalf of, any person or entity that is listed in the Annex to, or that otherwise
fails to comply with the provisions of, the Executive Order; (c) with whom Lender is prohibited from dealing; (d) that is otherwise engaging
in any transaction in violation of any terrorism or money laundering Legal Requirements, including, without limitation, the Executive
Order and the Patriot Act; (e) that commits, threatens or conspires to commit, or supports, “terrorism,” as such term is defined
in the Executive Order or the Patriot Act; (f) that is named as a “specially designated national and blocked person” on the
most current list published by OFAC at its official website or at any replacement website or other replacement official publication of
such list; or

(g) that is an Affiliate of a Person listed
above.

 

“Project Release” has the meaning
assigned in Section 2.11.

 

“Project”
means, individually and collectively, as the context may require, each of the real properties described in Exhibit A, and
all improvements now or hereafter located thereon, including without limitation, the retail buildings located on each property, and all
related facilities, amenities, fixtures, and personal property owned by the applicable Borrower.

 

“Projects” means, collectively,
each and every Project that secures the Loan at the time in question.

 

“Property
Manager” means Wheeler Real Estate LLC, a Virginia limited liability company and Wheeler Interests, Inc., a Virginia corporation,
each as a subsidiary of Wheeler Real Estate Investment Trust.

 

“Public
Official” means any officer or employee of a government or any government department or agency; any person in an official
capacity for or on behalf of a government or any government department or agency; any officer or employee of a government investment vehicle
owned or funded by a government, including but not limited to currency reserve funds, government-employee pension funds, and sovereign
wealth funds; any officer or employee of a company or business that is 25% or more owned or controlled by a government agency (even is
such agency is not considered a public official under local law); any officer or employee of a public international organization, such
as the World Bank or the United Nations; any officer or employee of a political party or any person acting in an official capacity on
behalf of a political party; any candidate for political office.

 

“Recipient” means Lender and its
successors and/or assigns in interest under the Loan Documents.

 

    13

     

    

 

“Recourse
Indemnity” means each Limited Recourse Indemnity Agreement now or hereafter executed by Guarantor to and in favor of Lender,
as the same may be supplemented, amended, modified, consolidated, extended, substituted, replaced, renewed and/or restated from time to
time.

 

“Redirection
Notice” means a written notice from Lender to Depositary Bank whereby Lender is able to take control of the Collections
Account and Borrower shall not have a right of withdrawal from the Collections Account.

 

“Regulation D”
has the meaning assigned in the definition of Reserve Requirement.

 

“Reimbursement Contribution” is defined in
Section 14.1(c).

 

“Release Date”
has the meaning assigned in Section 2.11.

 

“Release
Price” means (i) for any individual Project the subject of a Project Release, one hundred ten percent (110%) of the Allocated
Loan Amount as set forth in Schedule II for such Project, or (ii) for multiple Projects the subject of simultaneous Project
Release, one hundred ten percent (110%) of the aggregate Allocated Loan Amount as set forth in Schedule II for all such
Projects.

 

“Replacement Rate” has the
meaning assigned in Schedule 2.2(a).

 

“Replacement Reserve” has the meaning assigned in Schedule
2.6(a).

 

“Replacement Reserve Monthly Deposit”
has the meaning assigned in Schedule 2.6(a).

 

“Required Repairs” has the meaning assigned in Section
2.6(c).

 

“Required Repair Fund” has
the meaning assigned in Section 2.6(c).

 

“Requirements” has the meaning assigned in Section
8.13.

 

“Reserve
Funds” means, collectively, the Leasing Reserve, the Tax and Insurance Escrow Fund, the Replacement Reserve Fund, the Required
Repair Fund, and any other escrow fund or impound now or hereafter established pursuant to the Loan Documents; “Reserve Fund”
means any one of them.

 

“Reserve Requirement”
means, for any day, the highest reserve percentage (expressed as a decimal) from time to time established by (x) the Council Regulation
established by the European Central Bank, as revised from time to time, or (y) the Board of Governors of the U.S. Federal Reserve System
or (z) any other banking authority to which any Lender is now or hereafter subject, including, without limitation, any (i) reserve on
Eurocurrency Liabilities as defined in Regulation D of the Board of Governors of the U.S. Federal Reserve System (as the same may be
amended, modified, replaced and/or supplemented from time to time, “Regulation D”) at the ratios provided in such Regulation
D from time to time, and (ii) any marginal, supplemental or emergency reserves.

 

“Risk-Based Capital Guidelines”
has the meaning assigned in paragraph (f) of Schedule 2.5.

 

“S&P”
means S&P Global Ratings, a division of The McGraw Hill Companies, Inc., and its successors in interest.

 

“Sanctioned
Country” means any country or jurisdiction who is, or whose government or government-owned entity is the subject of Sanctions
which countries include the Crimea region (formerly Ukraine), Cuba, Iran, North Korea and Syria.

 

    14

     

    

 

“Sanctioned Party”
means, at any time, any Person, including any entity that is 50% or more owned or controlled, either directly or indirectly, by any Person
who is (a) the subject of Sanctions, or (b) located in or resident of a Sanctioned Country.

 

“Sanctions”
means sanctions laws, regulations and executive orders administered and enforced by the United States (including OFAC and the U.S. Department
of State), the United Nations, the European Union, Her Majesty’s Treasury-UK, or any locally applicable sanctions regime, as each
of the same may be amended, modified, replaced and/or supplemented from time to time.

 

“Scheduled Maturity Date”
means November 10, 2032, provided, that if such day is not a Business Day, then the immediately preceding Business Day.

 

“Secondary Market Transaction” has
the meaning assigned in Section 8.15(a).

 

“Servicer” has the meaning provided in Section
8.15(d).

 

“Servicing Agreement has the meaning provided
in Section 8.15(d).

 

“Single Purpose Entity” has the meaning assigned in Section 8.14(a).

 

“Site
Assessment” means an environmental engineering report for a Project prepared by an engineer engaged by Lender, at Borrower’s
expense, and in a manner satisfactory to Lender, based upon an investigation relating to and making appropriate inquiries concerning the
existence of Hazardous Materials on or about such Project, and the past or present discharge, disposal, release or escape of any such
substances, all consistent with good customary and commercial practice, including without limitation the Operations and Maintenance Plans
described on Exhibit A to the Indemnity Agreement.

 

“Special Member” has the meaning
assigned in Section 8.14(a).

 

“State”
means, unless the context otherwise indicates, the state where each Project, or the applicable Project, is located.

 

“Subsidiary”
means, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture, or other business
entity of which more than 50% of the total voting power of shares of stock or other ownership interests entitled (without regard to the
occurrence of any contingency) to vote in the election of the Person or Persons (whether directors, managers, trustees, or other Persons
performing similar functions) having the power to direct or cause the direction of the management and policies thereof is at the time
owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof;
provided, that in determining the percentage of ownership interests of any Person controlled by another Person, no ownership interest
in the nature of a “qualifying share” of the former Person shall be deemed to be outstanding.

 

“Tax and Insurance Escrow Fund”
has the meaning assigned in Section 2.6(d).

 

“Tax Requirements”
means, collectively, all foreign, domestic, federal, state, local and municipal laws, statutes, codes, ordinances, rules, rulings, orders,
judgments, decrees, injunctions, arbitral decisions, regulations, authorizations, determinations, directives and any other requirements
of all Taxing Authorities, including, without limitation, FATCA, whether now or hereafter in force (whether or not the same may be valid).

 

    15

     

    

  

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

 

“Taxing
Authority” means the U.S. government or the government of 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, without limitation,
any supra-national bodies such as the European Union or the European Central Bank, if applicable).

 

“Test
Date” means the last day of each calendar quarter during the term of the Loan, commencing on June 30, 2023.

 

“Title
Policy(ies)” means each ALTA Loan Policy issued to Lender in connection with the Loan in accordance with the Lender’s
written instructions, as amended, modified and/or endorsed from time to time in accordance with Lender’s written instructions.

 

“Transfer”
means (a) the sale, transfer, conveyance, grant, mortgage, pledge, hypothecation, lease, license, declaration of trust, assignment or
other disposal of a direct legal or beneficial ownership or economic interest in (i) the Project, (ii) Borrower, or (iii) Guarantor, and
(b) any division of a limited liability company into multiple entities or series pursuant to Section 18-217 of the Delaware Limited Liability
Company Act, as amended, with allocation of any of the collateral for the Loan to any such entity or series; “Transfer” shall
not include the leasing of individual units within the Project so long as Borrower complies with the provisions of the Loan Documents
relating to such leasing activity.

 

“Underwritten
Expenses” means (a) the greater of actual Operating Expenses for the trailing twelve (12) month period and the Operating
Expenses expected to be incurred by the Project during the twelve (12) month period following the date of calculation, as reasonably estimated
by Lender reflected in the Appraisal approved by Lender, plus (b) a vacancy rate equal to the greater of actual Project vacancy and five
percent 5% and plus (c) in the case of management fees, the greater of the actual management fee for the Project and three percent (3%).

 

“Underwritten
Reserves” means the greater of (a) actual annual Reserve Funds required to be deposited under this Agreement, and (b) an
annual replacement reserve of $0.15 per rentable square foot of space in the Project.

 

“Unrelated Claims” has the meaning
assigned in Section 12.3(d).

 

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

 

“U.S. Lender” has the meaning assigned
in paragraph (a)(iii) of Schedule 2.5.

 

“Withholding Agent” means any Loan Party
and Lender.

 

“Withholding Taxes” means any and
all Taxes collected by withholding or deduction.

 

“Yield
Maintenance Amount” has the meaning set forth in Schedule 2.3(d) attached hereto and made a part hereof.

 

Section
1.2 Principles of Construction. All references to sections and schedules are to sections and schedules in or to this Agreement
unless otherwise specified. Unless otherwise specified, the words “hereof,” “herein” and
“hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to
any particular provision of this Agreement. Unless otherwise specified, all meanings attributed to defined terms herein shall be
equally applicable to both the singular and plural forms of the terms so defined.

 

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ARTICLE 2

 

LOAN TERMS

 

Section 2.1 The
Loan. Lender agrees, on the terms and conditions set forth in this Agreement, to make a loan to Borrower in the principal amount of
One Hundred Ten Million and 00/100 Dollars ($110,000,000.00) (the “Loan Amount”), all of which is being disbursed
to or at the direction of Borrower on the date hereof, as provided for in this Agreement. The Loan is not a revolving facility and in
no event shall Borrower have the right to re-borrow any amount repaid or prepaid under this Agreement.

 

Section 2.2 Interest Rate; Late Charge; Default
Rate.

 

(a) The
Principal Balance of the Loan (including any amounts added to principal under the Loan Documents) shall bear interest at the Contract
Rate. Interest on the Principal Balance shall be computed on the basis of the actual number of days elapsed in the period during which
interest or fees accrue and a year of three hundred sixty (360) days. In computing interest on the Loan, the date of the making of a disbursement
under the Loan shall be included and the date of payment shall be excluded.

 

(b) Except
with respect to the payment due on the Maturity Date, in addition to the payments required under this Section 2.2, if Borrower
fails to pay any installment of interest or principal on the date on which the same is due, Borrower shall pay to Lender a late charge
on such past-due amount, as liquidated damages and not as a penalty, equal to five percent (5%) of such amount, but not in excess of the
maximum amount of interest allowed by applicable Legal Requirements. These charges shall be paid to defray the expenses incurred by Lender
in handling and processing such delinquent payment(s) and to compensate Lender for the loss of the use of such funds. These charges shall
be secured by the Loan Documents.

 

(c) In
addition to the payments required under this Section 2.2, while an Event of Default exists, the Loan shall bear interest
at the Default Rate.

 

Section 2.3 Terms
of Payment. Borrower hereby covenants to punctually (i) pay the Loan and the other Obligations, in immediately available funds, as
provided herein, in the Note and in the other Loan Documents and (ii) perform the Obligations. Without limiting the foregoing, the Loan
shall be payable as follows:

 

(a) Interest.
Borrower shall pay Lender interest in accordance with the terms of the Note and this Agreement. Interest on the Principal Balance of the
Loan shall accrue from and after the date hereof until the Obligations are indefeasibly paid in full. On the date hereof, Borrower shall
pay interest in advance for the period commencing on the date hereof and ending November 9, 2022. Commencing on December 10, 2022 and
continuing thereafter, Borrower shall pay interest in arrears on the tenth (10th) Business Day of each month (each a “Payment
Date”) until the Obligations are indefeasibly paid in full.

 

(b) Principal
Amortization. Commencing on December 10, 2027 and continuing thereafter on each Payment Date until the Maturity Date (whereupon
all amounts due under the Loan Documents shall be paid in full), Borrower shall pay to Lender monthly installments of principal in
the amount set forth on Schedule 2.3(b) (each, an “Amortization Payment”).

 

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(c) Maturity.
On the Maturity Date, Borrower shall pay to Lender all outstanding principal, accrued and unpaid interest, and any other outstanding Obligations.

 

(d) Prepayment.
Except as otherwise expressly stated in Articles 2 and 3 hereof, upon not less than thirty (30) days prior notice to
Lender, Borrower may prepay the Loan and any other amounts then due and payable under this Agreement and other Loan Documents in
whole but not in part, upon payment of a prepayment fee (the “Prepayment Fee”) equal to, as applicable,
(i) for any Prepayment Date occurring prior to the Seventh (7th) Loan Year, the Yield Maintenance Amount, (ii) for any
Prepayment Date occurring on or after the date set forth in clause (i) above, but prior to the eighth (8th) Loan Year,
two percent (2.0%) of the amount of Principal Balance being prepaid on such Prepayment Date; and (iii) for any Prepayment Date
occurring on or after the date set forth in clause (ii) above, but prior to the ninth (9th) Loan Year, one percent (1.0%)
of the amount of Principal Balance being prepaid on such Prepayment Date. Thereafter, upon not less than thirty (30) days’
prior notice to Lender, Borrower may prepay the Loan and any other amounts then due and payable under this Agreement and other Loan
Documents in whole but not in part, without Prepayment Fee. The Prepayment Fee shall be due and payable upon any acceleration or
prepayment of the Loan, whether voluntary, involuntary, as a result of, or otherwise in connection with, a Creditors’ Rights
Law proceeding or upon occurrence of an Event of Default, and Lender shall not be obligated to accept any prepayment unless it is
accompanied by all accrued interest due under the Loan Documents and all other Obligations of Borrower due under the Loan Documents,
together with an amount equal to the applicable Prepayment Fee. Such amounts may be applied by Lender in such order and priority as
Lender shall determine. The parties hereto acknowledge and agree that the damages that Lender would suffer as a result of the Loan
being prepaid are difficult or impossible to ascertain and, therefore, agree that the aforesaid Prepayment Fee is a reasonable
approximation of such damages and does not constitute a penalty. Lender is not obligated hereunder or under any of the other Loan
Documents to re-advance to Borrower any sums prepaid by Borrower, whether prepaid voluntarily or involuntarily. If for any reason
Borrower prepays the Loan on a date other than a Payment Date, Borrower shall also pay to Lender, in addition to any other amounts
required under this Section 2.3(d), all interest which would have accrued on the prepayment amount from the Prepayment
Date until (but not including) the next succeeding Payment Date.

 

(e) Application
of Payments. All payments received by Lender under the Loan Documents shall be applied: first, to any previously billed fees and expenses
due hereunder to Lender under the Loan Documents; second, to any other fees and expenses due to Lender under the Loan Documents; third,
to the payment of protective advances; fourth, to any Default Rate interest and late charges; fifth, to accrued and unpaid interest at
the Contract Rate; and sixth, to the Principal Balance and other amounts due under the Loan Documents. Notwithstanding the foregoing,
while an Event of Default exists, Lender may apply payments in such order and manner as Lender elects in its sole discretion.

 

(f) Set-Off.
Subject to the terms and conditions of Section 2.5, all payments of the Obligations shall be made, without set-off, deduction,
or counterclaim, in immediately available funds by wire transfer to Lender’s account set forth in the Note or to such other account(s)
or location(s) as Lender may, from time to time, designate upon notice to Borrower.

 

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Section 2.4 Security. The
Loan shall be evidenced, secured and supported by the following, all dated as of the date hereof (except as otherwise noted below)
(collectively, with any amendments, supplements, restatements, consolidations, extensions, modifications, renewals, substitutions
and replacements thereto from time to time, the “Loan Documents”):

 

		(a)	this Agreement;

 

		(b)	the Note;

 

		(c)	the Mortgage;

 

		(d)	the Assignment of Rents and Leases;

 

		(e)	the Assignment of Management Agreement;

 

		(f)	the Collateral Assignment;

 

		(g)	the Pledge of Accounts;

 

		(h)	the Collections Account DACA;

 

		(i)	each Cash Management Agreement (if any);

 

		(j)	the Recourse Indemnity;

 

		(k)	the Indemnity Agreement;

 

		(l)	the financing statements referred to in the Mortgage; and

 

		(m)	such other assignments, pledges, documents and agreements as Lender may require.

 

Section 2.5 Withholding
Taxes; Changes In Legal Requirements; Market Disruption; EEA Financial Institution. Borrower and Lender shall be bound by
the provisions of Schedule 2.5 of this Agreement; provided that (a) if Lender is a U.S. Lender, no provisions relating
to Non-U.S. Lenders shall apply, and (b) at any time while Lender is not an EEA Financial Institution, the provisions of Schedule
2.5(i) shall not apply.

 

Section 2.6 Reserve
Funds. Borrower shall deposit with Lender such amounts as are required under this Section 2.6 from the Replacement Reserve,
the Leasing Reserve, and the Tax and Insurance Escrow Fund on the terms and conditions of this Section 2.6 and the other
terms and conditions of this Agreement.

 

(a) Borrower
shall establish and fund the Replacement Reserve, and Borrower shall have the right to request disbursements from the Replacement Reserve
in accordance with Schedule 2.6(a).

 

(b) Borrower
shall establish and fund the Leasing Reserve and shall have the right to request disbursements from the Leasing Reserve in accordance
with Schedule 2.6(b).

 

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(c) Required
Repair Funds. Borrower shall perform the repairs at the Project that are listed on Schedule 2.6(c) hereto (such
repairs hereinafter collectively referred to as “Required Repairs”). Borrower shall complete the Required
Repairs on or before the required deadline for each repair as set forth on Schedule 2.6(c). On the date hereof,
Borrower shall deposit with Lender an amount equal to $76,987.50 to perform the Required Repairs. Amounts so deposited with Lender
shall hereinafter be referred to as Borrower’s “Required Repair Fund.” Subject to the terms and
conditions of this Agreement, the Required Repair Fund shall be advanced by Lender to Borrower to fund or reimburse Borrower for the
cost of Required Repairs in accordance with the conditions for replacements, repairs and capital improvements advances under Schedule
2.6(a). Any such funding or reimbursement will, with respect to each individual Required Repair, equal no more than 125% of
the actual cost of such Required Repair. While an Event of Default exists, Lender shall not be obligated to advance to Borrower any
portion of the Required Repair Fund, and while an Event of Default exists, Lender shall be entitled, without notice to Borrower, to
apply any funds in the Required Repair Fund to fund completion of the Required Repairs or to satisfy the Obligations in such order,
proportion and priority as Lender may determine in its sole discretion. Lender’s right to withdraw and apply Required Repair
Funds shall be in addition to all other rights and remedies provided to Lender under this Agreement and the other Loan Documents.
Upon completion of the Required Repairs in accordance herewith, Lender shall disburse to Borrower any then remaining Required Repair
Funds in the Required Repair Reserve.

 

(d) Tax
and Insurance Escrow Fund. Borrower shall pay to Lender (i) on the date hereof an initial deposit in the amount of $860,236.57
and (ii) on each Payment Date thereafter (a) one twelfth (1/12th) of the Taxes that Lender
estimates will be payable with respect to each Project during the next ensuing twelve (12) months in order to accumulate with Lender
sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (b) one twelfth (1/12th)
of the insurance premiums that Lender estimates will be payable for the renewal of the coverage afforded by the policies of
insurance required pursuant to Article 3 hereof upon the expiration thereof in order to accumulate with Lender
sufficient funds to pay all such insurance premiums at least thirty (30) days prior to the expiration of such policies of insurance
(said amounts in (i) and (ii) above hereinafter called the “Tax and Insurance Escrow Fund”). Provided no
Event of Default exists, Lender will apply funds in the Tax and Insurance Escrow Fund to payments of Taxes and insurance premiums
required to be made by Borrower pursuant to the terms and conditions of this Agreement and the Mortgage. Borrower shall be
responsible for ensuring the receipt by Lender, at least thirty (30) days prior to the respective due date for payment thereof, of
all bills, invoices and statements for all Taxes and insurance premiums to be paid from the Tax and Insurance Escrow Fund, and so
long as no Event of Default exists, Lender shall pay the governmental authority or other party entitled thereto directly to the
extent funds are available for such purpose in the Tax and Insurance Escrow Fund. In making any payment relating to the Tax and
Insurance Escrow Fund, Lender may do so according to any bill, statement or estimate procured from the appropriate public office
(with respect to Taxes) or insurer or agent (with respect to insurance premiums), without inquiry into the accuracy of such bill,
statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax Lien or title or claim thereof. If the
amount of the Tax and Insurance Escrow Fund shall exceed the amounts due for Taxes and insurance premiums, Lender shall, in its sole
discretion and only while no Event of Default exists, return any excess to Borrower or credit such excess against future payments to
be made to the Tax and Insurance Escrow Fund. Any amount remaining in the Tax and Insurance Escrow Fund after the Obligations have
been satisfied in full shall be returned to Borrower. In allocating such excess, Lender may deal with the Person shown on the
records of Lender to be the owner of the Project. If at any time Lender reasonably determines that the Tax and Insurance Escrow Fund
is not or will not be sufficient to pay Taxes and insurance premiums by the dates set forth in (i) and (ii) above, Lender shall
notify Borrower of such determination and Borrower shall increase its monthly payments to Lender by the amount that Lender estimates
is sufficient to make up the deficiency at least thirty (30) days prior to the due date of the Taxes and/or thirty (30) days prior
to expiration of the applicable insurance policies, as the case may be.

 

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 (e) Reserve Funds Generally.

 

(i) Borrower
grants to Lender a continuing, first-priority perfected security interest in each of the Reserve Funds and (A) any and all monies now
or hereafter deposited in each Reserve Fund, (B) the accounts into which the Reserve Funds have been deposited, (C) all insurance of said
accounts, (D) all accounts, contract rights and general intangibles or other rights and interests pertaining thereto, (E) all sums now
or hereafter therein or represented thereby, (F) all replacements, substitutions or proceeds thereof, (G) all instruments and documents
now or hereafter evidencing the Reserve Funds or such accounts, (H) all powers, options, rights, privileges and immunities pertaining
to the Reserve Funds (including the right to make withdrawals therefrom), and (I) all proceeds of the foregoing as additional security
for the Obligations. Until expended or applied in accordance herewith, the Reserve Funds shall constitute additional security for the
Obligations. While an Event of Default exists, Lender may, in addition to any and all other rights and remedies available to Lender, apply
any sums then present in any or all of the Reserve Funds to the payment of the Obligations in any order in its sole discretion. The Reserve
Funds shall not constitute trust funds and may be commingled with other monies held by Lender.

 

(ii) Borrower
shall not, without obtaining the prior consent of Lender, further pledge, assign or grant any security interest in any Reserve Fund or
the monies deposited therein or permit any Lien or encumbrance to attach thereto, or any levy to be made thereon, or any UCC-1 Financing
Statements, except those naming Lender as the secured party, to be filed with respect thereto.

 

(iii) Any
interest or other earnings on a Reserve Fund shall be added to and become a part of such Reserve Fund and shall be disbursed in the same
manner as other monies deposited in such Reserve Fund. Borrower shall be responsible for payment of any federal, state or local income
or other tax applicable to the interest or income earned on the Reserve Funds.

 

(iv) Borrower
shall indemnify Lender and hold Lender harmless from and against any and all actions, suits, claims, demands, liabilities, losses, damages,
obligations and costs and expenses (including litigation costs and reasonable attorney’s fees and expenses) arising from or in any
way connected with the Reserve Funds or the performance of the obligations for which the Reserve Funds were established, except to the
extent that such loss or damage results from Lender’s gross negligence or willful misconduct. Borrower shall assign to Lender all
rights and claims Borrower may have against all Persons supplying labor, materials or other services which are to be paid from or secured
by the Reserve Funds; provided, however, that Lender may not pursue any such right or claim unless an Event of Default exists.

 

(v) Lender
shall not have any duty as to any Reserve Fund in its possession or control as agent therefor or bailee thereof or any income
thereon or the preservation of rights against any person or otherwise with respect thereto. In no event shall Lender, or its
affiliates, agents, employees or bailees be liable or responsible for any loss or damage to any Reserve Fund, or for any diminution
in value thereof, by any reason of the acts or omissions of Lender, except to the extent that such loss or damage results from
Lender’s gross negligence or willful misconduct.

 

(vi) Upon payment in full of the
Obligations, Lender shall disburse any then-remaining funds in the Reserve Accounts to Borrower.

 

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Section 2.7 Reserved.

 

Section
2.8 Use of Proceeds. Borrower shall use the proceeds of the Loan solely to (a) refinance the Project, (b) pay Operating Expenses
and other charges with respect to the Project in compliance with this Agreement, (c) make deposits into the Reserve Funds in the
amounts provided herein, (d) pay costs and expenses incurred in connection with the closing of the Loan, as approved by Lender, (e)
fund any working capital requirements of the Project in compliance with this Agreement, and (f) distribute the balance, if any, to
Borrower, all subject to Section 2.9, Section 8.23 and the other terms and conditions of this
Agreement.

 

Section 2.9 Cash Management.

 

(a) An
operating account for each Project (each a “Collections Account”) is held at Depositary Bank. Borrower has
(i) entered into the Pledge of Accounts pursuant to which Borrower’s rights in and to the Collections Accounts are pledged to
Lender, subject to the rights of tenants with respect to their respective security deposits held in the Collections Accounts and
(ii) entered into the Collections Account DACA with Lender and Depositary Bank. Provided no Event of Default or other Cash Sweep
Trigger (as defined below) exists, Borrower may, from time to time, transfer funds in the Collections Account for the payment of
Operating Expenses at the applicable Project and use such Collections Accounts as operating accounts. If (A) an Event of Default
exists or (B) the Projects fail to maintain an aggregate Debt Yield of no less than 7.75% as of any calendar quarter Test Date
(each, a “Cash Sweep Trigger”), Lender shall have the right to issue a Redirection Notice and immediately
thereafter take control of the Collections Accounts, thereby suspending Borrower’s access to and right of withdrawal from the
Collections Accounts. Upon issuing a Redirection Notice, Lender shall, pursuant to the Collections Account DACA, cause Depositary
Bank to sweep funds from the Collections Account to (x) prior to the execution of a Cash Management Agreement, an account designated
by Lender in its sole discretion and (y) after the execution of a Cash Management Agreement, the Cash Management Account, as defined
therein (the “Cash Management Account”).

 

(b) Lender
may, in its discretion and in any order, apply or disburse funds swept from the Collections Account pursuant to Section 2.9(a)
above for (1) the payment of escrow deposits into the Tax and Insurance Reserve Fund then required pursuant to Section 2.6(d)
or impounds required pursuant to Section 3.4, if any, (2) Debt Service on account of the Loan then due and payable, (3)
other amounts due and payable to Lender pursuant to the applicable terms and provisions of the Loan Documents, including, without limitation,
deposits to Reserve Funds required hereunder and the customary and reasonable cash management servicing fees associated with establishment
and/or administration of the Cash Management Account (or any sub-account thereof).

 

(c) After
an Event of Default or Cash Sweep Trigger, Borrower shall cooperate, and shall cause Property Manager to cooperate, with Lender and
Cash Management Bank to execute a Cash Management Agreement governing the application and/or disbursements of funds from the Cash
Management Account, which shall be on a form acceptable to Lender in its sole discretion. Upon execution of a Cash Management
Agreement, provided no Event of Default exists, Lender may apply or disburse funds from the Cash Management Account to fund (i)
expenses described in Section 2.9(b) above and other Operating Expenses in accordance with the most recent operating
budget approved by Lender pursuant to Section 7.4 hereof, or (ii) as otherwise specified in the Cash Management
Agreement.

 

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(d) If
no Event of Default or Cash Sweep Trigger exists, Lender shall send a notice to Depositary Bank and return control of the Collections
Accounts to Borrower provided that either (i) the Projects have achieved an aggregate Debt Yield of not less than 7.85% for a period of
two (2) consecutive calendar quarters (provided, that, if all or a portion of the amounts on deposit in any Account are used in the calculation
to satisfy the requirements of Section 8.16, then such portion shall be deposited with Lender as a cash reserve) or (ii)
Borrower indefeasibly pays and performs the Obligations in full (either, a “Cash Sweep Cure Event”).

 

(e) While
an Event of Default exists, Lender may apply any sums then held in the Collections Accounts or the Cash Management Account (other than
funds held in the security deposit subaccount, if any) in accordance with Section 2.3(e) above. Until expended or applied,
amounts held in the Collections Accounts or the Cash Management Account (other than funds held in any lease security deposit subaccount)
shall constitute additional security for the Obligations.

 

Section 2.10 Intentionally omitted.

 

Section 2.11 Project
Releases. Provided that no Event of Default exists (unless the matter giving rise to such Event of Default can be cured by effectuating
a Project Release), Borrower may obtain the release of a Project (a “Project Release”) from the lien of the
Mortgage thereon (and other related Loan Documents) and the release of the applicable Borrower’s obligations under the Loan Documents
with respect to such Project (other than those expressly stated to survive) in connection with (and at the time of) the conveyance of
such Project or Projects pursuant to an arm’s length transaction with a Person that is not an Affiliate of Borrower or Guarantor,
upon the satisfaction of each of the following conditions:

 

(a) The
amount of the Principal Balance to be prepaid in accordance with the terms hereof shall not be less than the Release Price for the applicable
Project or group of Projects and any such prepayment shall be in accordance with Section 2.3(d), including, without limitation,
payment of any applicable Prepayment Fee;

 

(b) The
aggregate amount of the Principal Balance to be prepaid in connection with all Project Releases and all Partial Project Releases shall
not exceed $36,000,000.00;

 

(c) Borrower
shall provide Lender with at least thirty (30) days but no more than one hundred eighty (180) days prior written notice of Borrower’s
request to obtain a release of such Project (a “Release Date”);

 

(d) Lender
shall have determined that the Debt Yield, after giving effect to such Project Release, would be no less than the greater of (i) the Debt
Yield for all Projects (including the Project being released) immediately prior to such Project Release and (ii) ten percent (10.00%);
and

 

(e) Lender
shall have received payment of all of Lender’s reasonable out-of-pocket costs and expenses, including appraisal costs and
reasonable attorney’s fees and disbursements incurred in connection with such Project Release and the preparation, review and
approval of the documents and information required to be delivered in connection therewith. It is understood and agreed that no
Project Release shall impair or otherwise adversely affect the Liens or other rights of Lender under the Loan Documents not being
released (or as to parties to the Loan Documents and the Projects other than the affected Project and the Borrower subject of such
Project Release).

 

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Section 2.12 Partial
Project Releases. Provided that no Event of Default exists (unless the matter giving rise to such Event of Default can be cured by
effectuating a Partial Project Release), Borrower may obtain the release of a Partial Project Release Parcel listed on Schedule
2.12 attached hereto (a “Partial Project Release”) from the lien of the Mortgage thereon (and other
related Loan Documents) and the release of the applicable Borrower’s obligations under the Loan Documents with respect to such Partial
Project Release Parcel (other than those expressly stated to survive) in connection with (and at the time of) the conveyance of such Partial
Project Release Parcel(s) pursuant to an arm’s length transaction with a Person that is not an Affiliate of Borrower or Guarantor,
upon the satisfaction of each of the following conditions:

 

(a) The
amount of the Principal Balance to be prepaid in accordance with the terms hereof shall not be less than the Partial Release Price for
the applicable a Partial Project Release Parcel or group of a Partial Project Release Parcels and any such prepayment shall be in accordance
with Section 2.3(d), including, without limitation, payment of any applicable Prepayment Fee;

 

(b) The
aggregate amount of the Principal Balance to be prepaid in connection with all Project Releases and all Partial Project Releases shall
not exceed $36,000,000.00;

 

(c) Borrower
shall provide Lender with at least thirty (30) days but no more than one hundred eighty (180) days prior written notice of Borrower’s
request to obtain a release of such a Partial Project Release Parcel (a “Partial Release Date”);

 

(d) Lender
shall have determined that the Debt Yield, after giving effect to such Partial Project Release, would be no less than the greater of (i)
the Debt Yield for all Projects (including the a Partial Project Release Parcel being released) immediately prior to such Partial Project
Release and (ii) ten percent (10.00%);

 

(e) Lender
shall have received a new Appraisal of the proposed Partial Project Release Parcel(s); and

 

(f) Lender shall
have received payment of all of Lender’s reasonable out-of-pocket costs and expenses, including appraisal costs and reasonable
attorney’s fees and disbursements incurred in connection with such Partial Project Release and the preparation, review and
approval of the documents and information required to be delivered in connection therewith.

 

It is understood and agreed that no Partial
Project Release shall impair or otherwise adversely affect the Liens or other rights of Lender under the Loan Documents not being released
(or as to parties to the Loan Documents and the Projects other than the affected Partial Project Release Parcel(s) and the Borrower subject
of such Partial Project Release).

 

ARTICLE 3

 

INSURANCE, CONDEMNATION AND IMPOUNDS

 

Section 3.1
Insurance. Borrower shall maintain insurance for the benefit of Lender as follows:

 

		(a)	Casualty; Business Interruption.

 

(i)
Property insurance against loss customarily included under so called “all risk” policies including flood, collapse,
theft and earthquake, boiler and machinery, acts of terrorism, and such other insurable hazards as, under good insurance practices,
from time to time are insured against for other property and buildings similar to the premises in nature, use, location, height and
type of construction. Such insurance policy shall also insure the additional expense of demolition and increased cost of
construction due to the enforcement of Legal Requirements regulating reconstruction at the time of rebuilding following a loss,
which insurance for demolition and increased cost of construction must be 100% of the building value for the undamaged portion of
the building and may contain a sublimit of $3,000,000.00 or ten percent (10%) of the replacement cost value of improvements each of
demolition and increased cost of construction (twenty percent (20%) of the replacement cost value of improvements if demolition and
increased cost of construction limits are combined). The amount of such “all risk” insurance shall be not less than one
hundred percent (100%) of the replacement cost value of the improvements. Each such insurance policy shall contain an agreed amount
(coinsurance waiver) and replacement cost value endorsement and shall cover, without limitation, all tenant improvements and
betterments, which Borrower is required to insure in accordance with any lease.

 

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(ii) If
any portion of the improvements is located within an area designated as “flood prone” or a “special flood hazard area”
(as defined under the regulations adopted under the National Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973),
flood insurance shall be provided, in an amount not less than the maximum limit of coverage available under the federal flood insurance
plan with respect to the Project. Lender reserves the right to require flood insurance in excess of that available under the federal flood
insurance plan. Should the available aggregate limits of flood insurance be eroded by losses so that the remaining limits available to
pay losses are less than forty percent (40%) of the required limits, Borrower shall promptly purchase additional coverage to restore the
available limit and aggregate limit to not less than eighty percent (80%) of the required amount of flood insurance. Amounts of flood
insurance required by this paragraph (a)(ii) shall be solely for the protection of the improvements. If the amounts of flood insurance
required by any ground lease, condominium declaration, reciprocal easement agreement, covenants, conditions and restrictions, or the like
are greater than the amounts required herein, then Borrower shall maintain such higher amounts of flood insurance. If the flood insurance
and associated aggregate limits are shared among other locations, then the risks associated with other locations also insured in the same
policy shall be taken into consideration in determining the amount of flood insurance to be provided herein.

 

(iii)
Comprehensive boiler and machinery insurance covering all mechanical and electrical equipment against physical damage on a
replacement cost basis. The minimum amount of limits to be provided shall be $20,000,000.00 per accident or 100% of the building
replacement cost value of improvements per accident.

 

(iv) Rent
loss and/or business interruption insurance on an actual loss sustained basis as an extension to coverage required by (i) and (ii) above,
in an amount not less than the amount of rent receivable or business income earned in a 12-month period and additionally providing a
365-day extended period of indemnity. Lender shall be named as loss payee as respects this coverage.

 

(v) During
any period of repair or restoration and any other period when construction is occurring, builder’s “All-Risk” insurance
in an amount equal to not less than the full insurable completed value of the Project against such risks (including so called “all
risk” perils coverage and collapse of the Improvements) to agreed limits as Lender may request, in form and substance acceptable
to Lender.

 

(vi) The
amount of earthquake insurance shall be based on a “Probable Maximum Loss” Study (“PML”) for each
Project, which must be conducted by a seismic engineering company satisfactory to Lender. The results of the PML study, on an individual
location basis and for all locations insured in the same earthquake insurance policies, shall be used to determine the amount of earthquake
coverage to be provided by Borrower. The amount of insurance shall be determined by adding the total expected damage to all improvements
subject to a single earthquake event in a given region together with the expected loss of rental income for each property, singly and
collectively, for a given regional event. Earthquake insurance shall provide a limit inclusive of rent loss for “Very High,”
“High,” and “Moderate” Hazard Earthquake Risk ratings at twice the annual rental amount. Other lower risk-rated
buildings, as determined by Lender, shall provide one times the annual rental loss. The total amount of earthquake insurance in limits
shall be the sum of expected property damage, reconstruction cost and rental income loss calculation. Should the available aggregate limits
of earthquake insurance be eroded by losses so that the remaining limits available to pay losses are less than forty percent (40%) of
the required limits, Borrower shall purchase additional coverage to restore the available limit and aggregate limit to not less than eighty
percent (80%) of the required amount of earthquake insurance. Amounts of earthquake insurance required by this paragraph (a)(vi) shall
be solely for the protection of the improvements. If the amounts of earthquake insurance required by any ground lease, condominium declaration,
reciprocal easement agreement, covenants, conditions and restrictions, or the like are greater than the amounts required herein, then
Borrower shall maintain such higher amounts of earthquake insurance. If the earthquake insurance and associated aggregate limits are shared
among other locations, then the risks associated with other locations also insured in the same policy shall be taken into consideration
in determining the amount of earthquake insurance to be provided herein.

 

 (vii) Intentionally omitted.

 

(viii) The
policies of insurance set forth in the foregoing clauses (i), (iii), (iv) and (v) shall not exclude from coverage acts of terrorism
and such policies, therefore, shall include one hundred percent (100%) replacement cost insurance without co-insurance for damage
to, or loss of rents from, the Project caused by terrorist activities. All policies of insurance set forth in this Section
3.1(a) shall have deductibles of not more than five percent (5%) of the insurable value of the Project. Should the available
aggregate limits of terrorism coverage be eroded by losses so that the remaining limits available to pay losses are less than forty
percent (40%) of the required limits, Borrower shall purchase additional coverage to restore the available limit and aggregate limit
to not less than eighty percent (80%) of the required amount of terrorism coverage. Amounts of terrorism coverage required by this
paragraph (a)(viii) shall be solely for the protection of the improvements. If the amounts of terrorism coverage required by any
ground lease, condominium declaration, reciprocal easement agreement, covenants, conditions and restrictions, or the like are
greater than the amounts required herein, then Borrower shall maintain such higher amounts of terrorism coverage. If terrorism
coverage and associated aggregate limits are shared among other locations, then the risks associated with other locations also
insured in the same policy shall be taken into consideration in determining the amount of terrorism coverage to be provided
herein.

 

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(b) Liability.

 

(i) General
public liability insurance, including, without limitation, commercial general liability insurance; owned (if any), hired and non-owned
auto liability; and umbrella liability coverage for personal injury, bodily injury, death, accident and property damage, providing in
combination no less than $35,000,000.00 per occurrence ($50,000,000.00 during construction) and in the annual aggregate, per location.
If aggregate limits are shared among more than one location, a $35,000,000.00 limit shall be obtained. The policies described in this
paragraph shall cover, without limitation: elevators, escalators, independent contractors, contractual liability (covering, to the maximum
extent permitted by law the mortgagor’s obligation to indemnify the mortgagee as required under this Agreement) products and completed
operations liability coverage.

 

(ii) Workers’
compensation and disability insurance as required by law.

 

(c) Form and
Quality. All insurance policies shall be endorsed in form and substance acceptable to Lender to name Lender as an additional
insured, loss payee or mortgagee thereunder, as its interest may appear, with loss payable to Lender, without contribution, under a
standard New York (or local equivalent) mortgagee clause. With respect to all insurance under Section 3.1(a), no
Person other than Lender shall be named as loss payee. All premiums for such insurance policies and endorsements shall be paid for
(and evidence of such payment shall be delivered to Lender) not later than thirty (30) calendar days prior to the next ensuing
policy year. All such policies and endorsements shall contain such provisions and expiration dates and be in such form and issued by
such insurance companies licensed or authorized to do business in the State, with a rating of “A:X” or better as
established by Best’s Rating Guide (or a lesser or equivalent rating approved in writing by Lender). If any insurance company
issuing such insurance shall no longer have such required rating, Borrower shall, within ten (10) Business Days after notice from
Lender, cause a replacement insurance policy(ies) to be issued by an insurance company licensed to do business in the State which
has such required rating (upon issuance of such replacement insurance policy(ies), Lender will simultaneously release the insurance
policy(ies) being replaced). If any insurance company issuing such insurance shall enter into any form of regulatory or governmental
receivership or other similar regulatory or governmental proceeding, or is otherwise declared insolvent or required to run off its
insurance coverages, Borrower shall, within five (5) Business Days, deliver to Lender a replacement insurance policy(ies) to be
issued by an insurance company licensed to do business in the State which has such required rating. Each policy shall provide that
such policy may not be cancelled or materially changed except upon thirty (30) days’ prior written notice of intention of
non-renewal, cancellation or material change to Lender and that no act or thing done by Borrower shall invalidate any policy as
against Lender. Borrower shall, promptly when available, deliver copies of all original policies certified to Lender by the
insurance company or authorized agent as being true copies, together with the endorsements required hereunder; provided, however,
Lender shall not be deemed by reason of the custody of such insurance policies to have knowledge of the contents thereof. The
proceeds of insurance policies coming into the possession of Lender shall not be deemed trust funds, and Lender shall be entitled to
apply such proceeds as herein provided. Borrower may effect such coverage under its blanket insurance policies, provided that (i)
any such policy of blanket insurance either shall specify therein, or Borrower shall furnish Lender with written statement from the
insurer under such policy so specifying, (x) the maximum amount of the total insurance afforded by the blanket policy allocated to
the Project and (y) any sublimits in such blanket policy applicable to the Project, which amounts shall not be less than the amount
required pursuant to this Section 3.1; (ii) any policy of blanket insurance hereunder shall comply in all respects
with the other provisions of this Section 3.1(c); and (iii) the protection afforded Borrower under any policy of
blanket insurance hereunder shall be no less than that which would have been afforded under a separate policy or policies relating
only to the Project. Borrower shall not take out separate insurance concurrent in form or contributing in the event of loss with
that required to be maintained under this Section 3.1 unless Lender is included thereon as a named insured with loss
payable to Lender under a standard mortgage endorsement of the character and to the extent above described. Borrower shall promptly
notify Lender whenever any such separate insurance is taken out and shall promptly deliver to Lender the policy or policies of such
insurance. Each insurance policy shall contain a provision whereby the insurer: (1) waives any right to claim any premiums and
commissions against Lender, provided that the policy need not waive the requirement that the premium be paid in order for a claim to
be paid to the insured, and (2) provides that Lender is permitted to make payments to effect the continuation of such policy upon
notice of cancellation due to non-payment of premiums. In the event any insurance policy (except for general public and other
liability and workers compensation insurance) shall contain breach of warranty provisions, such policy shall provide that with
respect to the interest of Lender, such insurance policy shall not be invalidated by and shall insure Lender regardless of (X) any
act, failure to act or negligence of or violation of warranties, declarations or conditions contained in such policy by any named
insured, (Y) the occupancy or use of the premises for purposes more hazardous than permitted by the terms thereof, or (Z) any
foreclosure or other action or proceeding taken by Lender pursuant to any provision of this Agreement or any of the other Loan
Documents.

 

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(d) Adjustments.
Borrower shall give immediate written notice of any loss to the insurance carrier and to Lender. With respect to any loss exceeding $650,000.00,
Borrower hereby irrevocably authorizes and empowers Lender, as attorney-in-fact for Borrower coupled with an interest, to make proof
of loss, to adjust and compromise any claim under insurance policies, to appear in and prosecute any action arising from such insurance
policies, to collect and receive insurance proceeds, and to deduct therefrom Lender’s expenses incurred in the collection of such
proceeds. Nothing contained in this Section 3.1(d), however, shall require Lender to incur any expense or take any action
hereunder.

 

(e) Lender’s
Right to Procure Insurance. Notwithstanding anything to the contrary contained herein, if at any time Lender is not in receipt of
written evidence that all insurance required hereunder is maintained in full force and effect, Lender shall have the right (but not the
obligation), upon notice to Borrower, to take such action as Lender deems necessary to protect its interests in the Project, including,
without limitation, the obtaining of such insurance coverage as Lender deems appropriate, and all premiums paid and expenses incurred
by Lender in connection with such action shall be paid by Borrower and shall be secured by the Mortgage.

 

(f) Delivery
of Policies. Borrower shall promptly when available deliver to Lender certified copies of the insurance policies required to be
maintained pursuant to this Section 3.1, provided, however, Lender shall not be deemed by reason of the custody of
such insurance policies or copies thereof to have knowledge of the contents thereof. Borrower also shall deliver to Lender, within
ten (10) days of Lender’s request, a certificate of each insurance carrier evidencing the coverages set forth herein together
with evidence that all insurance premiums due thereon have been paid and that such coverages are in full force and effect. Not later
than thirty (30) days prior to the expiration date of each of the insurance policies, Borrower shall deliver to Lender binders
of all such renewal insurance policies. Such proof of renewal insurance shall include evidence satisfactory to Lender that all
insurance premiums therefor have been paid and that the insurance coverages are in full force and effect. Any certificate of
insurance delivered to Lender in compliance with the requirements of this Agreement shall include a letter from the relevant
insurance company confirming that the entity issuing such certificate of insurance is authorized to do so, and in delivering such
certificate they are acting as an agent of the insurance company providing the coverage. If such letter is not provided, then Lender
will only accept insurance company issued binders confirming that the required insurance is in full force and effect.

 

Section 3.2 Use
and Application of Insurance Proceeds. All insurance proceeds shall be paid to Lender, and Lender shall apply insurance proceeds to
costs of restoring the Project or payment of the Loan as follows:

 

(a) if
the loss is less than or equal to $650,000.00, Lender shall apply the insurance proceeds to restoration provided (i) no Event of Default
exists, (ii) Borrower promptly commences and is diligently pursuing restoration of the Project and (iii) the loss is not, directly or
indirectly, the result of terrorist activities;

 

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(b) if the loss
exceeds $650,000.00 but is not more than the lesser of (x) $1,000,000.00, and (y) fifteen percent (15)% of the replacement value of
the improvements, Lender shall apply the insurance proceeds to restoration provided that at all times during such restoration (i) no
Event of Default or Major Potential Default (other than a Major Potential Default solely related to the then-incomplete restoration
of the Project) exists; (ii) Lender determines that there are sufficient funds available to restore and repair the Project to a
condition approved by Lender; (iii) Lender determines that the Net Operating Income of the Project during restoration will be
sufficient to pay Debt Service; (iv) Lender determines that restoration and repair of the Project to a condition approved by Lender
will be completed within one (1) year after the date of loss or casualty and in any event one hundred eighty (180) days prior to the
Maturity Date; (v) Borrower promptly commences and is diligently pursuing restoration of the Project and (vi) the loss is not,
directly or indirectly the result of any act of terrorism;

 

(c) if
the conditions set forth above are not satisfied or the loss exceeds the maximum amount specified in Section 3.2(b) above,
in Lender’s sole discretion, Lender may apply any insurance proceeds it may receive to the payment of the Loan, in which case no
Prepayment Fee shall be payable in connection therewith, or allow all or a portion of such proceeds to be used for the restoration of
the Project;

 

(d) insurance
proceeds applied to restoration will be disbursed on receipt of satisfactory plans and specifications, contracts and subcontracts, schedules,
budgets, permits, lien waivers and architects’ certificates, and otherwise in accordance with prudent commercial construction lending
practices, terms and conditions for construction loan advances;

 

(e) the
net proceeds of rent loss and/or business interruption insurance shall be paid to Lender, with any excess available after payment of principal,
interest and any other amounts due under the Loan being held by Lender; and

 

(f) any
excess insurance proceeds remaining after restoration of the Project and payment of all costs of the same may be either applied to the
reduction of the Principal Balance of the Loan or, if no Event of Default exists, paid to Borrower. Provided no Event of Default exists,
any such prepayment of the Loan shall not be subject to Prepayment Fee.

 

Section 3.3
Condemnation Awards. Borrower shall immediately notify Lender of the institution of any proceeding for the condemnation or other
taking of the Project or any portion thereof. Lender may participate in any such proceeding and Borrower will deliver to Lender all
instruments necessary or required by Lender to permit such participation. Without Lender’s prior consent, Borrower (a)
shall not agree to any compensation or award, and (b) shall not take any action or fail to take any action which would cause
the compensation to be determined. All awards and compensation for the taking or purchase in lieu of condemnation of the Project or
any part thereof are hereby assigned to and shall be paid to Lender, which payments shall not be subject to a Prepayment Fee.
Borrower authorizes Lender to collect and receive such awards and compensation, to give proper receipts and acquittances therefor,
and in Lender’s sole discretion to apply the same toward the payment of the Loan, which payments shall not be subject to a
Prepayment Fee, notwithstanding that the Loan may not then be due and payable, or to the restoration of the Project; provided,
however, if the award is less than or equal to $650,000.00 and Borrower requests that such proceeds be used for non-structural site
improvements (such as landscape, driveway, walkway and parking area repairs) required to be made as a result of such condemnation,
Lender will apply the award to such restoration in accordance with disbursement procedures applicable to insurance proceeds,
provided there exists no Event of Default. In the event that Lender permits such compensation or award to be applied towards
restoration of the Project, any excess amounts remaining after restoration of the Project may be either applied to the reduction of
the Principal Balance of the Loan, in which case no Prepayment Fee shall be payable in connection therewith, or, if no Event of
Default exists, paid to Borrower, in Lender’s sole discretion. Borrower, upon request by Lender, shall execute all instruments
requested to confirm the assignment of the awards and compensation to Lender, free and clear of all Liens, charges or
encumbrances.

 

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Section 3.4 Impounds.
Subject to Section 2.6(d) with respect to Taxes and insurance premiums, Lender may elect that Borrower shall deposit with Lender
monthly, one-twelfth (1/12th) of the annual charges for ground or other rent, if any, insurance premiums and real estate taxes,
assessments and similar charges relating to the Project, and Borrower shall do all things necessary or desirable to comply with Lender
election. At or before the initial advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly
installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due
with respect to such payments. Deposits shall be made on the basis of Lender’s estimate from time to time of the charges for the
current year (after giving effect to any reassessment or, at Lender’s election, on the basis of the charges for the prior year,
with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender and may be commingled
with Lender’s general funds. Borrower hereby grants to Lender a continuing security interest in all funds so deposited with Lender
for the purpose of securing the Loan. The funds deposited may, at Lender’s sole election, be applied in payment of the charges for
which such funds have been deposited, provided that while an Event of Default exists, such funds may be applied to the payment of the
Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been
made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which
such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount
on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such
charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit
with Lender is sufficient to pay such charges and Lender has received a bill for such charges.

 

ARTICLE 4

 

ENVIRONMENTAL MATTERS

 

Section
4.1 Representations and Warranties on Environmental Matters. Except as set forth in the Site Assessment or as disclosed in the
Indemnity Agreement, (a) no Hazardous Material is now or was formerly used, stored, generated, manufactured, installed, disposed of
or otherwise present at or about the Project or any property adjacent to the Project (except for cleaning and other products
currently used in connection with the routine maintenance or repair of the Project in full compliance with Environmental Laws), (b)
all permits, licenses, approvals and filings required by Environmental Laws have been obtained, and the use, operation and condition
of the Project does not, and did not previously, violate any Environmental Laws, and (c) no civil, criminal or administrative
action, suit, claim, hearing, investigation or proceeding has been brought or been threatened, nor have any settlements been reached
by or with any parties or any Liens imposed in connection with the Project concerning Hazardous Materials or Environmental Laws.

 

Section 4.2 Covenants on Environmental Matters.

 

(a)
 Borrower shall (i) comply strictly and in all respects with applicable Environmental Laws and with the Site Assessments and
other environmental proceedings and recommendations identified on Exhibit A to the Indemnity Agreement, including without
limitation, the determinations and recommendations set forth in the Golden Triangle Environmental Covenants; (ii) notify Lender
immediately upon Borrower’s discovery of any spill, discharge, release or presence of any Hazardous Material at, upon, under,
within, contiguous to or otherwise affecting the Project, or of any violation of the Golden Triangle Environmental Covenants; (iii)
 promptly remove such Hazardous Materials and remediate the Project in full compliance with Environmental Laws and in
accordance with the recommendations and specifications of an independent environmental consultant approved by Lender; (iv) promptly
forward to Lender copies of all orders, notices, permits, applications or other communications and reports in connection with any
spill, discharge, release or the presence of any Hazardous Material or any other matters relating to the Environmental Laws or any
similar Legal Requirements, as they may affect the Project, Borrower, or Lender; and (v) cooperate with any environmental consultant
or engineer performing or updating a Site Assessment (Lender’s or Borrower’s), including responding to any interview
request and the questions propounded thereat.

 

(b) Borrower
shall (i) not cause, shall prohibit any other Person within the control of Borrower from causing, and shall use prudent, commercially
reasonable efforts to prohibit other Persons (including tenants) from causing, any spill, discharge or release, or the use, storage, generation,
manufacture, installation, or disposal, of any Hazardous Materials at, upon, under, within or about the Project or the transportation
of any Hazardous Materials to or from the Project (except for cleaning and other products used in connection with routine maintenance
or repair of the Project in full compliance with Environmental Laws), (ii) not install, shall prohibit any other Person within the control
of Borrower from installing, and shall use prudent, commercially reasonable efforts to prohibit any other Persons (including tenants)
from installing, any underground storage tanks at the Project, and (iii) not conduct, shall prohibit any other Person within the control
of Borrower from conducting, and shall use prudent, commercially reasonable efforts to prohibit other Persons (including tenants) from
conducting, any activity that requires a permit or other authorization under Environmental Laws.

 

(c) If
(i) an Event of Default exists, (ii) required by applicable Legal Requirements, or (iii) Lender reasonably believes a violation of Environmental
Laws may exist, Borrower shall provide to Lender, at Borrower’s expense, promptly upon the written request of Lender, a Site Assessment
or, if required by Lender, an update to any existing Site Assessment, to assess the presence or absence of any Hazardous Materials and
the potential costs in connection with abatement, cleanup or removal of such Hazardous Materials found on, under, at or within the Project.

 

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Section 4.3 Allocation of Risks
and Indemnity. As between Borrower, on one hand, and Lender, on the other hand, all risk of loss associated with non-compliance
with Environmental Laws, or with the presence of any Hazardous Material at, upon, within, contiguous to or otherwise affecting the
Project, shall lie solely with Borrower. Accordingly, Borrower shall bear all risks and costs associated with any loss (including
any loss in value attributable to Hazardous Materials), damage or liability therefrom, including all costs of removal of Hazardous
Materials or other remediation required by Lender or by Legal Requirements. Borrower shall indemnify, defend and hold harmless
Lender and each of the other Indemnified Parties (as defined in the Indemnity Agreement) from and against all loss, liabilities,
damages, claims, costs and expenses (including reasonable costs of defense) arising out of or associated, in any way, with the
non-compliance with Environmental Laws, or the release or the existence of Hazardous Materials in, on, or about the Project, or a
breach of any representation, warranty or covenant contained in this Article 4, whether based in contract, tort,
implied or express warranty, strict liability, criminal or civil statute or common law, including those arising from the joint,
concurrent, or comparative negligence of Lender; however, Borrower shall not be liable under such indemnification to the extent such
loss, liability, damage, claim, cost or expense results solely from Lender’s gross negligence or willful misconduct.
Borrower’s obligations under this Article 4 shall arise upon the discovery of the presence of any Hazardous
Material, whether or not any Governmental Authority has taken or threatened any action in connection with the presence of any
Hazardous Material, and whether or not the existence of any such Hazardous Material or potential liability on account thereof is
disclosed in the Site Assessment and shall continue notwithstanding the repayment of the Loan or any Transfer of any right, title
and interest in the Project (by foreclosure, deed in lieu of foreclosure or otherwise).

 

Section 4.4 No
Waiver. Notwithstanding any provision in this Article or elsewhere in the Loan Documents, or any rights or remedies granted by the
Loan Documents, Lender does not waive and expressly reserve all rights and benefits now or hereafter accruing to Lender under the “security
interest” or “secured creditor” exception under applicable Environmental Laws, as the same may be amended. No action
taken by Lender pursuant to the Loan Documents shall be deemed or construed to be a waiver or relinquishment of any such rights or benefits
under the “security interest exception.”

 

Section 4.5 Obligations
Unsecured. Borrower acknowledges and agrees that, notwithstanding anything to the contrary contained in any of the Loan Documents,
the representations, warranties and covenants of Borrower contained in this Article 4 are independent obligations which
are not secured by the Mortgage or any other Loan Document. Borrower further acknowledges that it is the intent of Lender to create separate
obligations of Borrower under this Article 4 which can be enforced against Borrower without regard to the existence of the
Mortgage or the other Loan Documents or the Liens or security interests contained therein.

 

ARTICLE 5

 

LEASING MATTERS

 

Section
5.1 Representations and Warranties on Leases. Except for matters set forth in Schedule 5.1(a) attached hereto and
made a part hereof, Borrower represents and warrants to Lender, with respect to Leases, that: (a) the rent roll attached hereto as Schedule
5.1(b) is true, correct and complete, and the leases are valid and in full force and effect; (b) the Leases (including
amendments) are in writing, and there are no oral agreements with respect thereto; (c) the copies of the Leases delivered to Lender
are true, correct and complete; (d) neither the landlord nor, to Borrower’s knowledge, any tenant is in default under any of
the Leases; (e) Borrower has no knowledge of any notice of termination or default with respect to any Lease; (f) Borrower has not
assigned or pledged any of the Leases, the rents or any interests therein except to Lender; (g) except as set forth in the rent roll
attached as Schedule 5.1(b), no tenant or other party has any right or option to purchase all or any portion of the
Project; (h) no tenant has the right to terminate its Lease prior to expiration of the stated term of such Lease; and (i) no tenant
has prepaid more than one (1) month’s rent in advance (except for bona fide security deposits).

 

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Section 5.2 Standard Lease Form; Approval Rights;
Security Deposits.

 

(a) All
Leases shall in all respects be approved by Lender and, with respect to any Lease entered into from and after the date hereof, shall be
on a standard lease form approved by Lender with no material modifications (except as approved by Lender) and shall be at market terms
and conditions. Such Lease form and all future Leases at the Project shall provide that (i) the Lease is subordinate to the Mortgage,
(ii) the tenant shall attorn to Lender, and (iii) that any cancellation, surrender, or amendment of any Major Lease without the prior
written consent of Lender shall be voidable by Lender.

 

(b) All
modifications, amendments and/or waivers of or under Leases shall be approved in writing by Lender.

 

(c) Borrower
shall hold, in trust, all tenant security deposits in a segregated account, and, to the extent required by applicable Legal Requirements,
shall not commingle any such funds with any other funds of Borrower. Within ten (10) Business Days after Lender’s request, Borrower
shall furnish to Lender a statement of all tenant security deposits, and copies of all Leases not previously delivered to Lender, certified
by Borrower as being true and correct.

 

(d) Notwithstanding
anything contained in this Section 5.2 or any other provision of the Loan Documents, Lender’s approval shall not be
required for future Leases or Lease amendments, modifications, or extensions if the following conditions are satisfied: (i) there exists
no Event of Default; (ii) the Lease (A) is on the standard lease form approved by Lender with no material modifications, (B) reflects
market rental rates, and (C) is for a term of at least three (3) years; (iii) the Lease does not conflict with any restrictive covenant
affecting the Project or any other Lease; and (iv) the Lease is not a Major Lease.

 

Section 5.3 Covenants.
Borrower shall (a) perform the obligations which Borrower is required to perform under the Leases; (b) use commercially reasonable efforts
to enforce the obligations to be performed by the tenants; (c) promptly furnish to Lender any notice of default or termination received
by Borrower from any commercial tenant, and any notice of default or termination given by Borrower to any commercial tenant; (d) not collect
any rents for more than one (1) month in advance of the time when the same shall become due, except for bona fide security deposits not
in excess of an amount equal to two months’ rent; (e) not enter into any ground lease, sandwich lease or master lease of any portion
of the Project; (f) not further assign or encumber any Lease; (g) not cancel or accept surrender or termination of any Major Lease; and
(h) deliver to Lender, promptly after entering into the same, true, correct and complete copies of all Leases; and any action in violation
of clauses (e), (f), and (g) of this Section 5.3 shall be void at the election of Lender.

 

Section 5.4 Tenant
Estoppels. At Lender’s request, Borrower shall use commercially reasonable efforts to obtain and furnish to Lender written estoppels
in form and substance satisfactory to Lender, executed by tenants under commercial Leases in the Project and confirming the term, rent
and other provisions and matters relating to the Leases.

 

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ARTICLE 6

 

REPRESENTATIONS AND
WARRANTIES

 

Borrower represents and warrants to Lender that:

 

Section 6.1 Organization
and Power. Except as previously disclosed to Lender (a) each Loan Party that is not an individual is duly organized, validly existing
and in good standing under the Legal Requirements of the state of its formation or existence set forth on Schedule 6.1(a),
(b) each Loan Party that is not an individual is qualified to do business and in good standing under the Legal Requirements of every state
in which it does business or is otherwise required to qualify under that state’s Legal Requirements, (c) each Loan Party is in compliance
with Legal Requirements applicable to doing business in the State, and (d) each Loan Party that is not an individual has the power and
authority to own its property, borrow or guarantee, as the case may be, the Loan and enter into and perform its obligations under the
Loan Documents. Borrower is not a “foreign person” within the meaning of § 1445 (f) (3) of the Code. The organizational
chart of Borrower attached hereto as Schedule 6.1(b) is true, correct and complete.

 

Section 6.2 Validity
of Loan Documents. The execution, delivery and performance of the Loan Documents by Borrower and each Borrower Party that is a party
to the Loan Documents: (a) are duly authorized and do not require the consent or approval of any other party or Governmental Authority
which has not been obtained; and (b) will not violate any Legal Requirement or result in the imposition of any lien, charge or encumbrance
upon the assets of any such party, except as contemplated by the Loan Documents. The Loan Documents have been duly executed and delivered
and constitute the legal, valid and binding obligations of Borrower and each Borrower Party that is a party to the Loan Documents, enforceable
in accordance with their respective terms, subject to applicable Creditors’ Rights Laws generally affecting the enforcement of creditors’
rights.

 

Section 6.3 Liabilities; Litigation.

 

(a) Except
as disclosed in the financial statements provided to Lender or on Schedule 6.3 attached hereto and made a part hereof, there are no liabilities
(fixed or contingent) affecting the Project, Borrower or any Borrower Party. Except as disclosed in the financial statements provided
to Lender or on Schedule 6.3 attached hereto and made a part hereof, there is no litigation, administrative proceeding,
investigation or other legal action (including any proceeding under any Creditors’ Rights Law) pending or, to the knowledge of Borrower
after due inquiry, threatened, against the Project, Borrower or any Borrower Party.

 

(b) Neither
Borrower nor any Borrower Party is contemplating either the filing of a petition by it under any Creditors’ Rights Law or the liquidation
of all or a major portion of its assets or property, and neither Borrower nor any Borrower Party has knowledge of any Person contemplating
the filing of any such petition against it.

 

Section 6.4 Taxes
and Assessments. Each Project is comprised of one or more parcels, each of which constitutes a separate tax lot and none of which
constitutes a portion of any other tax lot. There are no pending or, to Borrower’s knowledge, proposed, special or other assessments
for public improvements or otherwise affecting the Project, nor are there any contemplated improvements to the Project that may result
in such special or other assessments.

 

Section 6.5 Other Agreements; Defaults.

 

(a)
 Neither the execution, delivery or performance by Borrower and Guarantor of the Loan Documents to which it is a party
(including, without limitation, the granting of Liens pursuant to the respective Loan Documents), nor compliance by Borrower and
Guarantor with the terms and conditions thereof, nor the consummation of the transactions contemplated therein (i) will contravene
any provision of any Legal Requirement applicable to Borrower or Guarantor, (ii) will conflict with or result in any breach of or
constitute a tortious interference with any of the terms, covenants, conditions or provisions of, or constitute a default under, or
result in the creation or imposition of (or the obligation to create or impose) any Lien (except pursuant to the respective Loan
Document) upon any of the property or assets of Borrower or Guarantor pursuant to the terms of any contractual obligation to which
Borrower or Guarantor is a party or by which it or any of its property or assets is bound or to which it or any of its property or
assets may be subject, (iii) will violate any provision of any organizational document of any Loan Party or (iv) requires any
approval or consent of partners, members or any other Person which has not been obtained.

 

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(b)   Neither
Borrower nor any Borrower Party is a party to any agreement or instrument or subject to any court order, injunction, permit or
restriction which might adversely affect the Project or the business, properties, assets, operations or condition (financial or
otherwise) of Borrower or any Borrower Party. Neither Borrower nor any Borrower Party is in violation of any agreement which
violation could have a Material Adverse Effect on the Project, Borrower or any Borrower Party, or Borrower’s or any Borrower
Party’s business, properties, assets, operations or condition (financial or otherwise). Neither Borrower nor any Borrower
Party has (i) entered into any agreement under which, the default by Borrower or such Borrower Party, as the case may be, may result
in an Event of Default under this Agreement or any of the other Loan Documents, or
(ii)   granted a Lien on any of the collateral for the Loan to secure any obligation of
Borrower or any Borrower Party under any agreement with any Person other than Lender. Borrower is not a party to, or bound by, any
so-called integrated cash management arrangement with any of its Affiliates or sponsors. Borrower and each applicable Borrower Party
has obtained all non-governmental third-party approvals and consents to own, lease, finance and/or operate the Project and to carry
on Borrower’s business.

 

Section 6.6 Compliance with Legal
Requirements.

 

(a)   Except
as previously disclosed to Lender, Borrower and each Borrower Party has all requisite approvals, consents, licenses, permits, franchises,
qualifications, certificates of occupancy or other governmental authorizations to own, lease, finance and/or operate the Project and to
carry on its business, and the Project is in compliance with all Legal Requirements and is free of structural defects, and all building
systems contained therein are in good working order, subject to ordinary wear and tear. The Project does not constitute, in whole or in
part, a legally non-conforming use under Legal Requirements;

 

(b)   No
condemnation has been commenced or, to Borrower’s knowledge, is contemplated with respect to all or any portion of the Project or
for the relocation of roadways or curb cuts providing access to the Project; and

 

(c)   Each
Project has adequate rights of legal and physical access to public ways and is served by adequate water, sewer, sanitary sewer and storm
drain facilities. All public utilities necessary or convenient to the full use and enjoyment of the Project are located in the public
right-of-way abutting the Project, and all such utilities are connected so as to serve the Project without passing over other property,
except to the extent such other property is subject to a perpetual easement for such utility benefiting the Project. All roads necessary
for the full utilization of the Project for its current purpose have been completed and dedicated to public use and accepted by all Governmental
Authorities.

 

Section 6.7
Location of Borrower. Borrower’s principal place of business and chief executive offices are, and the office where Borrower
maintains all records relating to the Project and the other collateral under the Loan Documents is, located at the address stated in Section
11.1.

 

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Section 6.8 ERISA.

 

(a)   No
Loan Party nor any other Person, including any fiduciary, has engaged in any prohibited transaction (as defined in Section 4975 of the
Code or Section 406 of ERISA) which could subject a Loan Party or any Person to whom any Loan Party may have an obligation to indemnify
to any tax or penalty imposed under Section 4975 of the Code or Section 502 of ERISA, and each Employee Benefit Plan (other than a Multiemployer
Plan) has been administered in accordance with its terms and in compliance with all applicable Legal Requirements, including any reporting
requirements; except in each case where such tax, penalty or compliance failure could not reasonably be expected to have a Material Adverse
Effect. Each Employee Benefit Plan (other than a Multiemployer Plan) that is intended to qualify under Section 401(a) or 401(k) of the
Code is the subject of a favorable determination or opinion letter from the IRS as to its tax-qualified status and no event has occurred
that could reasonably be expected to result in the disqualification of such Employee Benefit Plan.

 

(b)   Except
as disclosed on Schedule 6.8, as of the date hereof, no Loan Party nor member of the Controlled Group maintains, contributes
to or has any liability with respect to a Pension Plan or any Multiemployer Plan that is subject to Title IV of ERISA. There is no Lien
outstanding or security interest given by any Loan Party or member of the Controlled Group in connection with any Plan. No accumulated
funding deficiency (whether or not waived) under Section 412 of the Code or Section 302 of ERISA has occurred with respect to any Pension
Plan. No Loan Party has any liability for uninsured retiree medical or death benefits (contingent or otherwise) other than as required
by Section 4980B of the Code. No part of the funds to be used by a Loan Party in satisfaction of their respective obligations under this
Agreement and the other Loan Documents, constitute “plan assets” within the meaning of Department of Labor regulation 29 C.F.R.
Section 2510.3-101, as modified by Section 3(42) of ERISA, of any “employee benefit plan” within the meaning of Section 3(3)
of ERISA that is subject to Title I of ERISA, any “plan” within the meaning of Section 4975 of the Code that is subject to
Section 4975 of the Code or any entity the underlying assets of which are deemed to include plan assets.

 

Section 6.9
Margin Stock. No part of the proceeds of the Loan will be used for purchasing or acquiring any “margin stock” within the
meaning of Regulations T, U or X of the Board of Governors of the Federal Reserve System.

 

Section 6.10
Tax Filings. Borrower and each Borrower Party have filed (or have obtained effective extensions for filing) all federal, state and
other material tax returns required to be filed and have paid or made adequate provision for the payment of all federal, state and other
material taxes, charges and assessments.

 

Section 6.11
Solvency. Giving effect to the Loan, the fair saleable value of Borrower’s assets exceeds and will, immediately following the
making of the Loan, exceed Borrower’s total liabilities, including, without limitation, subordinated, unliquidated, disputed and
contingent liabilities. The fair saleable value of Borrower’s assets is and will be immediately following the making of the Loan,
greater than Borrower’s probable liabilities, including the maximum amount of its contingent liabilities on its Debts as such Debts
become absolute and matured. Borrower’s assets do not and, immediately following the making of the Loan will not, constitute unreasonably
small capital to carry out its business as conducted or as proposed to be conducted. Borrower does not intend to, and does not believe
that it will, incur Debts and liabilities (including contingent liabilities and other commitments) beyond its ability to pay such Debts
as they mature (taking into account the timing and amounts of cash to be received by Borrower and the amounts to be payable on or in respect
of obligations of Borrower).

 

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Section 6.12
Full and Accurate Disclosure. No statement of fact made by or on behalf of Borrower or any Borrower Party in this Agreement or in
any of the other Loan Documents contains any untrue statement of a material fact or omits to state any material fact necessary to make
statements contained herein or therein not misleading. There is no fact presently known to Borrower which has not been disclosed to Lender
which adversely affects, nor as far as Borrower can foresee, might adversely affect, the Project or the business, assets, properties,
operations or condition (financial or otherwise) of Borrower or any Borrower Party.

 

Section 6.13 Single Purpose Entity. Each Borrower
is a Single Purpose Entity.

 

Section 6.14 Property Specific Representations.

 

(a)   Borrower
has good, marketable, insurable and indefeasible fee simple, or leasehold (as applicable) title to the Project, subject to no Liens or
other encumbrances except those contained in the Title Policy, and all of the encumbrances set forth therein are in full force and effect
and there are no defaults thereunder.

 

(b)   Each
Project complies with all applicable zoning ordinances and no special use permits are required for the continued use of the Project for
its current use.

 

(c)   Each
Project has adequate parking (if any) to comply with all applicable Legal Requirements.

 

Section 6.15
Taxpayer I.D. Number. Each Borrower’s U.S. taxpayer identification number is listed on Schedule 6.1(a).

 

Section 6.16
Organization I.D. Number. Each Borrower’s organization identification number is listed on Schedule 6.1(a).

 

Section 6.17
Legal Name. Borrower’s exact legal name, as that name appears on its Certificate of Existence or Articles of Organization, is
as set forth on Schedule I hereto.

 

Section 6.18
Use of Proceeds. Borrower is borrowing the Loan for its own use and not as an agent for any third party and for only lawful purposes.

 

Section 6.19
Survey. The representations set forth in that certain Survey Affidavit and Indemnity executed by Borrower for the benefit of Commonwealth
Land Title Insurance Company on or about the date hereof are true and correct.

 

Section 6.20
Financial Statements. All financial statements or certifications (as applicable) furnished to Lender by or on behalf of Borrower,
any Affiliate of Borrower and Guarantor are true, correct and complete in all material respects as of the respective dates thereof and
all other information previously furnished by or on behalf of Borrower, any Affiliate of Borrower and Guarantor to Lender in connection
with the Loan are true, complete and correct in all material respects and do not fail to state any material fact necessary to make the
statements made not misleading.

 

Section 6.21
Financial Condition. No Material Adverse Change has occurred since the date of the most recent financial statement and/or certification
provided by each Loan Party to Lender. The Loan Parties are (and after giving effect to the transactions contemplated by this Agreement
and the other Loan Documents will be) solvent.

 

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Section 6.22
Management Agreement. The Management Agreement is in full force and effect and there is no default thereunder by any party thereto
and no event has occurred that, with the passage of time and/or giving of notice, would constitute a default thereunder. Borrower has
provided to Lender a true, correct and complete copy of the Management Agreement and all amendments thereto.

 

Section 6.23 Intentionally Omitted.

 

Section 6.24
CFIUS. Either (a) the Loan is not a Covered Transaction and Borrower’s acquisition of the Project was not a Covered Transaction,
or (b) Borrower has previously obtained CFIUS Approval with respect to the Loan and Borrower’s acquisition of the Project.

 

ARTICLE 7

 

FINANCIAL REPORTING

 

Section 7.1 Financial Statements.

 

(a)   Quarterly
Reports. Within thirty (30) days after the end of each calendar quarter, Borrower shall (i) furnish to Lender a current (as of the
end of such calendar quarter) rent roll, together with Borrower’s balance sheet and a detailed operating statement (showing quarterly
activity and year-to-date) stating Operating Revenues, Operating Expenses, Net Operating Income and Excess Cash Flow for the calendar
quarter just ended.

 

(b)   Annual
Reports. Within ninety (90) days after the end of each calendar year, Borrower shall (i) furnish to Lender a current (as of the end
of such calendar year) balance sheet and a detailed operating statement stating annual Operating Revenues, Operating Expenses, Net Operating
Income and Excess Cash Flow for each of Borrower and the Project and (ii) cause Guarantor to deliver to Lender a certificate stating that
Guarantor is in compliance with the Financial Covenants, which certificate, which shall include a personal financial statement and liquidity
verification, shall be in the same form as the certificate delivered by Guarantor to Lender on the date hereof in connection with the
closing of the Loan.

 

(c)   Appraisals.
Lender may, at its option, commission a new and/or updated Appraisal of the Project from time to time after the date hereof; provided,
however, that Borrower shall only be required to reimburse Lender for such new and/or updated Appraisal if an Event of Default
exists or if such Appraisal is required by applicable Legal Requirements.

 

(d)   Certification;
Supporting Documentation. Each such report and financial statement shall be in scope and detail reasonably satisfactory to Lender
and shall be accompanied by a certificate of a duly authorized representative of Borrower, stating that such information is true, correct
and complete and that, to the best of his or her knowledge, no Event of Default has occurred, or if an Event of Default has occurred,
specifying the nature thereof and the action proposed to be taken with respect thereto.

 

Section 7.2
Accounting Principles. All financial statements shall be prepared in accordance with GAAP or such other basis of accounting as Lender
approves in writing. If the financial statements are prepared on an accrual basis, such statements shall be accompanied by a reconciliation
to cash basis accounting principles.

 

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Section 7.3 Other
Information. Borrower shall deliver, or cause to be delivered, to Lender such additional information regarding Borrower, its
subsidiaries, its business, any Borrower Party, and the Project within thirty (30) days after Lender’s request therefor.
Borrower shall also furnish Lender with copies of all documents distributed or sent by it or Guarantor to its or Guarantor’s
shareholders, members, partners, investors, owners or creditors generally or any class of them at the same time as they are
distributed or sent.

 

Section 7.4
Annual Budget. At least thirty (30) days prior to the commencement of each fiscal year, Borrower will provide to Lender its proposed
annual operating and capital improvements budget for the Project for such fiscal year for review and approval by Lender.

 

Section 7.5 Audits and Records.

 

(a)   While
an Event of Default exists, Lender shall have the right to choose and appoint a certified public accountant to perform financial audits
with respect to the Project as it deems necessary, at Borrower’s expense. Borrower shall permit Lender to examine such records,
books and papers of Borrower which reflect upon its financial condition and the income and expense relative to the Project;

 

(b)   At
any time during regular business hours upon prior notice, Borrower shall permit Lender and/or any of its agents or representatives (including
any auditor chosen by Lender) to have access to, and to examine, all of Borrower’s and Guarantor’s books and records, including,
without limitation, those relating to the ownership, development, management, leasing and/or operation of the Project;

 

(c)   Borrower
shall permit Lender to copy and make abstracts from any and all of Borrower’s and Guarantor’s books and records relating to
the Project; and

 

(d)   Borrower
shall annually cause Guarantor to allow representatives of Lender to inspect its financial records, including, without limitation, records
of entities in which it may have an equity interest, at Guarantor’s office, and to supply Lender with such factual information as
it and/or they may request in order to develop a schedule of Guarantor’s assets, liabilities, liquid net worth, cash flow, and contingent
liabilities. Guarantor shall supply such certifications with respect thereto as may be reasonably requested by Lender.

 

Section 7.6
Annual Ownership Report. Within thirty (30) days after the end of each calendar year, Borrower shall deliver to Lender a certification
that the then-current organizational chart of Borrower, which shall be attached to such certification and shall have the same level of
detail as provided for in the form attached hereto as Schedule 6.1(b), is true, correct and complete.

 

Section 7.7
Electronic Submissions. Subject to Section 11.1 as to any approval, consent, demand, notice or, request, any budgets,
reports, statements, rent rolls, leasing reports, sales reports and/or other information required to be submitted by Borrower or its agents,
contractors or employees to Lender under this Agreement shall be delivered electronically via email in PDF format (and, with respect to
rent rolls, in Excel format) to Lender at the email address(es) from time to time to be designated by the relevant loan officer of Lender.

 

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ARTICLE
8

 

COVENANTS

 

During the term of the Loan and so long
as any Obligations are outstanding, Borrower covenants and agrees with Lender as follows:

 

Section 8.1 Due on Sale and Encumbrance; Transfers
of Interests.

 

(a)   Without
the prior approval of Lender, which may be withheld in its sole and absolute discretion, the Loan shall become due and payable upon the
occurrence of any Transfer (other than a Permitted Transfer).

 

(b)   With
respect to any and all Transfer(s), if such Transfer is of five percent (5%) or more of the direct or indirect interests in Borrower (or
such lesser percentage as may be required from time to time under applicable Legal Requirements), Borrower shall provide Lender with (i)
prior notice of such Transfer (or if no Loan Party had prior notice of such Transfer, promptly upon any Loan Party having such knowledge),
(ii) sufficient information about the transferee so that Lender may fulfill its “know your customer” requirements (which,
by way of example, may include the receipt and review of copies of operating agreements, by-laws, partnership agreements, articles of
incorporation, articles of organization, certificates of formation, certificates of good standing, W-9 forms, updated organizational charts,
valid governmental forms of identification and such other information or documentation reasonably required by Lender with respect to such
“know your customer” requirements) and (iii) such other information or documentation reasonably required by Lender from time
to time with respect to such “know your customer” requirements. Any Permitted Transfer shall be conditioned upon Lender’s
confirmation (which confirmation shall not be unreasonably delayed) that such transferee is neither a Sanctioned Party, a Prohibited Person
or a restricted person described in Article 13, failing which such proposed Permitted Transfer shall be void ab initio;
provided that a Permitted Transfer due to death shall not be subject to the aforementioned condition.

 

(c)   Nothing
contained in Section 8.1(i) shall limit the prohibitions contained in Article 13, nor shall any Below the
Fund Transfer involve a Person (i) with whom Lender is adverse in any pending litigation or arbitration, (ii) with whom Lender is prohibited
by Legal Requirements from conducting business, or (iii) is a Sanctioned Party or a Prohibited Person.

 

 (d) Intentionally omitted.

 

(e)
Notwithstanding the provisions of this Section 8.1, if no Event of Default exists, Lender shall permit, in a
transaction approved by Lender in its sole discretion, one (1) transfer or sale of the Project during the term of the Loan, without
an increase in the rate of interest payable under the Note or any other material changes in the Loan Documents, provided that each
of Borrower and the proposed transferee satisfies all conditions set forth in the Loan Documents, including without limitation the
following: (i) Lender shall receive a written request for its approval at least ninety (90) days before the proposed transfer, which
request shall specify the identity of the proposed transferee, the purchase price and other terms of the transaction, shall include
a copy of the proposed contract of sale, and shall be accompanied by the financial statements, tax returns, and organizational
documents of the proposed transferee and its principals and any other documents or information required by Lender (including without
limitation, all information required by Lender to satisfy its “know your customer” requirements); (ii) the transferee
shall expressly, unconditionally and fully assume, without modification, the Note, each of the other Loan Documents, and all
obligations and liabilities thereunder, which assumption shall be in form and substance satisfactory to Lender in its sole
discretion; (iii) the transferee and its ownership structure, reputation, financial strength, credit history, demonstrated property
management expertise ( or property manager of the proposed transferee) and principals are each satisfactory to Lender in its sole
discretion; (iv) a replacement guarantor that satisfies the Financial Covenants and is otherwise acceptable to Lender shall execute
an Indemnity Agreement, a Recourse Indemnity and any other Loan Documents executed by Guarantor, in the form originally executed by
Guarantor; (v) Borrower and Guarantor shall retain liability under the Loan Documents for matters arising before or in connection
with the transfer; (vi) Borrower or the transferee pays to Lender at or prior to the time of transfer a sum equal to one-half of one
percent (0.50%) of the Principal Balance, together with all of Lender’s costs and expenses incurred in connection with the
proposed transfer, including reasonable attorneys’ fees; (vii) Borrower provides to Lender a true and correct copy of the as-recorded deed or other instrument by which such transfer is made and such Appraisals, Site Assessments, property condition reports
and other third party reports as Lender requires; (viii) Borrower provided to Lender a letter authorizing transfer to the transferee
of any Reserve Funds then on deposit with Lender; (ix) Lender receives satisfactory evidence from the proposed transferee of all
insurance required under this Agreement; (x) Lender receives an endorsement to the Title Policy insuring the continued validity and
priority of the Mortgage following the assumption and such other endorsements as Lender requires, without any new exceptions other
than those approved by Lender in writing; and (xi) the transferee provides to Lender such opinions as it requires as a condition to
approving the transfer.

 

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Section 8.2
Taxes; Charges. Borrower shall pay before any fine, penalty, interest or cost may be added thereto, and shall not enter into any agreement
to defer, any real estate taxes and assessments, franchise taxes and charges, and other governmental charges that may become a Lien upon
the Project or become payable during the term of the Loan, and will promptly furnish Lender with evidence of such payment, except when
funds in the appliable Reserve Account are sufficient to pay the same. Borrower shall not suffer or permit the joint assessment of the
Project with any other real property constituting a separate tax lot or with any other real or personal property. Borrower shall pay when
due all claims and demands of mechanics, materialmen, laborers and others which, if unpaid, might result in a Lien on the Project; however,
Borrower may contest the validity of such claims and demands so long as (a) Borrower notifies Lender that it intends to contest such claim
or demand, (b) Borrower provides Lender with an indemnity, bond or other security satisfactory to Lender (including an endorsement to
Lender’s title insurance policy insuring against such claim or demand) assuring the discharge of Borrower’s Obligations for
such claims and demands, including interest and penalties, and (c) Borrower is diligently contesting the same by appropriate legal proceedings
in good faith and at its own expense and concludes such contest prior to the thirtieth (30th) day preceding the earlier to occur of the
Maturity Date or the date on which the Project is scheduled to be sold for non-payment.

 

Section 8.3
Property Management. Borrower has entered into the Management Agreement and shall not terminate, replace or appoint any property manager
(other than Property Manager) or terminate or amend such management agreement for the Project without Lender’s prior approval. Any
change in ownership or control of the property manager shall be cause for Lender to re-approve such property manager and management agreement.
Each property manager shall hold and maintain all necessary licenses, certifications and permits required by law. Borrower shall fully
perform all of its covenants, agreements and obligations under the management agreement in all material respects. Without Lender’s
prior approval, no management fee payable to a property manager may exceed five percent (5%) of Operating Revenues.

 

Section 8.4 Operation; Maintenance;
Inspection; Alterations.

 

(a) Borrower
shall observe and comply in all material respects with all Legal Requirements applicable to the ownership, use and operation of each
Project. Borrower shall not initiate or consent to any zoning reclassification of any portion of the Project or seek any variance
under any existing zoning ordinance or use or permit the use of any portion of the Project in any manner that could reasonably be
expected to result in such use becoming a non-conforming use under any zoning ordinance or any other applicable Legal Requirements
without the prior written consent of Lender. Borrower shall maintain the Project in good condition and promptly repair any damage or
casualty. Borrower shall permit Lender and its agents, representatives and employees, upon reasonable prior notice to Borrower
(except that in the event of an emergency, no advance notice shall be necessary), to inspect the Project and conduct such
environmental and engineering studies as Lender may require, provided such inspections and studies do not materially interfere with
the use and operation of each Project.

 

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(b)   Borrower
shall obtain Lender’s prior consent to any alterations of any portion of the Project. Notwithstanding the foregoing, Lender’s
prior consent for an alteration shall not be required unless the estimated cost thereof exceeds $650,000.00 (the “Alterations
Threshold”). No approval shall be required for (and the above-specified Alterations Threshold shall exclude) alterations
(i) required by applicable Legal Requirements, (ii) pursuant to any Lease existing as of the date hereof or (iii) that are non-structural,
such as carpeting or painting.

 

(c)   Any
request for Lender’s prior consent to an alteration that is required under this Agreement shall be delivered to Lender together
with all materials reasonably determined by Borrower to be necessary for Lender to evaluate such request. Borrower shall promptly reimburse
Lender for its costs and expenses reasonably incurred in reviewing any such request.

 

(d)   Borrower
shall not permit any reservations, exceptions, encroachments, easements, rights of way, covenants, conditions, restrictions or other title
exceptions or encumbrances to affect the Project, other than those listed in the Title Policy.

 

(e)   Borrower
covenants to use and maintain each Project solely as a retail shopping center. Borrower may change such purpose of a Project only with
the prior written consent of Lender, which Lender may grant or withhold in its discretion.

 

Section 8.5
Taxes on Security. Borrower shall pay all taxes, charges, filing, registration and recording fees, excises and levies payable with
respect to the Note or the Liens created or secured by the Loan Documents, other than Taxes imposed on (or measured by) net income (however
denominated), franchise Taxes, and branch profits or similar Taxes imposed on Lender (in the case of Taxes, to the extent set forth in
Schedule 2.5). If there shall be enacted any Legal Requirements (a) deducting the Loan from the value of the Project for
the purpose of taxation, (b) affecting any Lien on the Project, or (c) changing existing Legal Requirements of taxation of mortgages,
deeds of trust, security deeds, or debts secured by real property, or changing the manner of collecting any such taxes, Borrower shall
promptly pay to Lender, on demand, all taxes, costs and charges for which Lender is or may be liable as a result thereof and, in the case
of Taxes, to the extent set forth in Schedule 2.5, that (i) this Section 8.5 shall not apply to Taxes imposed
on (or measured by) net income (however denominated), franchise Taxes, and branch profits or similar Taxes imposed on Lender and (ii)
if such payment would be prohibited by Legal Requirements or would render the Loan usurious, then instead of collecting such payment,
Lender may declare all amounts owing under the Loan Documents to be immediately due and payable.

 

Section 8.6 Legal Existence; Name;
Organizational Documents.

 

(a) Each Loan
Party that is not an individual shall preserve and keep in full force and effect its entity status, franchises, rights and
privileges under the Legal Requirements of the state of its formation and in every state in which it does business, and all
qualifications, licenses and permits applicable to the ownership, use and operation of the Project. No Loan Party that is not an
individual shall (i) wind up, liquidate, dissolve, reorganize, merge, or consolidate with or into, or convey, sell, assign,
transfer, lease, or otherwise dispose of all or substantially all of its assets to, or acquire all or substantially all of the
assets of the business of, any Person, or (ii) divide into multiple entities or series pursuant to Section 18-217 of the Delaware
Limited Liability Act, as amended, or otherwise or other similar Legal Requirements of the jurisdiction where such Loan Party is
organized. Notwithstanding the provisions of Section 8.6(a)(i), no Event of Default shall occur as a result of any
reorganization, merger or consolidation of Guarantor so long as, following such event, Guarantor is in compliance with the Financial
Covenants.

 

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(b)   Borrower
shall conduct business only in its own name and shall not change its name, identity, or organizational structure, or the location of its
chief executive office or principal place of business unless Borrower (i) shall have obtained the prior consent of Lender to such change,
and (ii) shall have taken all actions necessary or requested by Lender to file or amend any financing statement or continuation statement
to assure perfection and continuation of perfection of security interests under the Loan Documents.

 

Section 8.7
Affiliate Transactions. Without the prior consent of Lender, Borrower shall not engage in any transaction affecting the Project with
an Affiliate of Borrower other than the Management Agreement, or any subsequent management agreements with Affiliates of Borrower.

 

Section 8.8
Limitation on Other Debt. Borrower shall not, without the prior consent of Lender, incur any Debt other than the Loan and customary
trade payables which are payable, and shall be paid, within thirty (30) days of when invoiced and do not exceed, in the aggregate, two
percent (2.0%) of the Principal Balance.

 

Section 8.9
Further Assurances. Borrower shall promptly (a) cure any defects in the execution and delivery of the Loan Documents, and (b) (x)
other than with respect to the Notes(s), execute and deliver, or cause to be executed and delivered, all such other documents, agreements
and instruments as Lender may reasonably request to further evidence and more fully describe the collateral for the Loan, to correct any
omissions in the Loan Documents, to perfect, protect or preserve any Liens created under any of the Loan Documents, or to make any recordings,
file any notices, or obtain any consents, as may be necessary or appropriate in connection therewith and to consummate fully the transaction
contemplated under this Agreement and the other Loan Documents, and/or correct any discrepancies or defects in connection with any releases
of liens or security interest, or (y) with respect to the Note(s), Lender may require Borrower to execute a reaffirmation in the form
of a replacement note in connection with

(i)   assignments
of a Lender’s interest in the Loan, (ii) changes to any A/B Notes structure, or (iii) if Lender informs Borrower in writing that
a Note was lost, stolen, destroyed or mutilated and Lender delivers a “lost note affidavit” in its customary form.

 

Section 8.10 Estoppel Certificates.

 

(a)   Borrower,
within ten (10) Business Days after request, shall furnish to Lender a statement, duly acknowledged, setting forth the amount due on the
Loan, the terms of payment of the Loan, the date to which interest has been paid, whether any offsets or defenses exist against the Loan
and, if any are alleged to exist, the nature thereof in detail, and stating that no Major Potential Default or Event of Default has occurred,
or if a Major Potential Default or Event of Default has occurred, specifying the nature thereof and the action proposed to be taken with
respect thereto, and such other matters as Lender reasonably may request.

 

(b)   Borrower,
within ten (10) Business Days after request, shall furnish to Lender a statement, duly acknowledged, indicating any changes to the accuracy
of the representations contained in Section 4.1 and/or in Article 6.

 

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Section 8.11 Notice of
Certain Events. Borrower shall promptly notify Lender of (a) any Major Potential Default or Event of Default, together with a
detailed statement of the steps being taken to cure such Major Potential Default or Event of Default; (b) any notice of default
received by Borrower under other obligations relating to the Project or otherwise material to Borrower’s business; (c)
threatened or pending legal, judicial or regulatory proceedings, including any dispute between Borrower and any Governmental
Authority, affecting Borrower or the Project; and (d) any event or circumstance resulting in, or which would reasonably be expected
to result in, a Material Adverse Effect.

 

Section 8.12
Indemnification. Borrower shall defend, indemnify and hold harmless Lender, its affiliates and its or their respective directors,
officers, employees, attorneys, agents, advisors, participants, successors and assigns from and against any and all deficiencies, losses,
liabilities, claims, damages, expenses, obligations, penalties, actions, judgments, awards, suits, costs or disbursements of any kind
or nature whatsoever, including reasonable attorneys’ fees and expenses, in connection with (a) any inspection, review or testing
of or with respect to the Project, (b) any investigative, administrative, mediation, arbitration, or judicial proceeding, whether or not
Lender are designated a party thereto, commenced or threatened at any time (including after the repayment of the Loan) in any way related
to the execution, delivery or performance of any Loan Document or to the Project, (c) any proceeding instituted by any Person claiming
a Lien, and (d) any brokerage commissions or finder’s fees claimed by any broker or other party in connection with the Loan, the
Project, or any of the transactions contemplated in the Loan Documents, including, without limitation, those arising from the joint, concurrent,
or comparative negligence of Lender, except to the extent any of the foregoing is caused by Lender’s gross negligence or willful
misconduct. Borrower shall have no liability under this Section 8.12 for Taxes imposed on (or measured by) net income (however
denominated), franchise Taxes, and branch profits or similar Taxes imposed on Lender, other than any such Taxes relating to indemnification
for amounts other than such Taxes. This Section 8.12 shall survive the satisfaction of the Obligations in accordance with
Section 11.18

 

Section 8.13
Compliance With Legal Requirements. Borrower shall fully, faithfully and punctually comply (and shall use commercially reasonable
efforts to cause all lessees and other Persons that occupy or enter upon the Project at all times so to comply) in all material respects
with all Legal Requirements of any Governmental Authority having jurisdiction over Borrower or the Project now or hereafter in effect
(including any of the foregoing that heretofore have been promulgated but which are not yet in effect), in each instance as modified,
amended, renewed and/or extended, which are applicable to Borrower, to the Project or any portion thereof, to the use, manner of use,
occupancy, possession, condition, operation, maintenance, alteration, repair, replacement, or restoration of the Project or any portion
thereof or to the conduct of Borrower’s business at the Project (“Requirements”), including, without limitation,
Requirements that, if violated, would cause the Project or a part thereof to be subject to forfeiture or a Lien. Notwithstanding the foregoing,
Borrower may contest the validity of such Requirements so long as (a) Borrower notifies Lender that it intends to contest the same, (b)
Borrower is diligently contesting the same by appropriate legal proceedings in good faith and at its own expense, and (c) such contest
will not subject Borrower, any Borrower Party or the Project to any potential civil or criminal liability or any Lien. During the term
of the Loan, Borrower shall (and shall cause the holders of direction and/or indirect, legal and/or beneficial interest in Borrower to)
(i) within five (5) Business Days of receipt of the same, notify Lender and provide Lender with a copy of, any inquiry received from CFIUS
or any other Governmental Authority related to Borrower’s acquisition of the Project, (ii) make any filing requested by CFIUS related
to Borrower’s acquisition of the Project, (iii) cooperate with, and fully respond to any inquiries received from, CFIUS or any Governmental
Authority related to CFIUS’s review and/or investigation (the “CFIUS Review”) related to Borrower’s
acquisition of the Project, in each case within the time permitted by CFIUS or such Governmental Authority, as applicable, and (iv) subject
to the terms and conditions hereof, take any mitigation measures requested by CFIUS and/or any Governmental Authority in connection with
the CFIUS Review.

 

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Section 8.14 Single Purpose Covenants.

 

(a) Each Borrower
shall at all times be a Single Purpose Entity. For the purpose of this Agreement a “Single Purpose Entity”
means a Borrower which shall at all times: (i) exist solely for the purpose of, and not engage in any business or activity other
than, the owning, operating, financing, leasing and otherwise dealing with the Project, and activities incidental thereto; (ii) not
acquire or own any assets other than the Project and such incidental personal property as may be necessary for the ownership and
operation thereof; (iii) not incur any Debt, secured or unsecured, direct or contingent (including guaranteeing any obligation)
other than as expressly permitted by this Agreement; (iv) maintain its books and records separate from any other Person; (v)
maintain its bank accounts separate from any other Person; (vi) conduct business in its own name; (vii) hold all of its assets in
its own name and not commingle its assets with those of any other Person; (viii) maintain its financial statements, accounting
records and other entity documents separate from any other Person; (ix) to the extent funds from operation of the Project permits,
intends to remain solvent and pay its own liabilities and expenses (including, without limitation, salaries of its own employees)
only out of its own funds; provided, however, that the foregoing shall not require Borrower’s members, partners or
shareholders to make additional capital contributions to Borrower; (x) observe all material organizational formalities necessary to
maintain its separate existence, and not fail to preserve its existence as an entity duly organized, validly existing and in good
standing (if applicable) under the applicable Legal Requirements of the jurisdiction of its organization or formation; (xi) except
for capital contributions or capital distributions permitted under the terms and conditions of Borrower’s organizational
documents and properly reflected on its books and records, not enter into or be party to any transaction with its partners, members,
stockholders or Affiliates except in the ordinary course of its business and on terms and conditions that are intrinsically fair,
commercially reasonable and are no less favorable to Borrower than would be obtained in a comparable arms-length transaction with an
unaffiliated third party; (xii) maintain a sufficient number of employees in light of its contemplated business operations; (xiii)
except as expressly contemplated in the Loan Documents, not guarantee or become obligated for the debts of any other Person; (xiv)
except as expressly contemplated in the Loan Documents, not (1) hold out its credit as being available to satisfy the obligations of
any other Person or otherwise pledge its assets to secure the obligations of any other Person or (2) hold out its credit or assets
as being available to satisfy the obligations of any other Person or (3) make any loans or advances to any Person, or (4) own any
stock or securities of, any Person, or (5) buy or hold evidence of indebtedness issued by any other Person or (6) with respect to
Borrower, own any subsidiary, or make any investment in, in any Person; (xv) not acquire obligations or securities of its partners,
members, stockholders or other Affiliates, as applicable; (xvi) allocate fairly and reasonably any shared expenses (including,
without limitation, office space and services performed by an employee of an Affiliate) with any other Person; (xvii) use separate
stationery, invoices, and checks bearing its own name; (xviii) except as expressly contemplated in the Loan Documents, not pledge
its assets for the benefit of any other Person or make any loans or advances to any Person; (xix) hold itself out as a separate and
distinct entity under its own name and not as a division or part of any Person; (xx) correct any known misunderstanding regarding
its separate and distinct identity; (xxi) to the extent funds from operation of the Project permit, intend to maintain adequate
capital in light of its contemplated business obligations; provided, however, that the foregoing shall not require Borrower’s
members, partners or shareholders to make additional capital contributions to Borrower; (xxii) (1) comply in all material respects
with the provisions of its organizational documents and (2) not amend, modify, terminate or fail to comply in any material respect
with the provisions of its organizational documents, in each case without the prior written consent of Lender; (xxiii) except as
expressly contemplated in the Loan Documents, not, to the fullest extent permitted by Legal Requirements, (1) dissolve or liquidate
or consolidate or terminate or transfer or otherwise dispose of all or substantially all of its assets or change its legal structure
or merge with or into any other entity in whole or in part, or (2) divide into multiple entities or series pursuant to Section 18-217 of the Delaware Limited Liability Company Act, as amended, modified, replaced and/or supplemented from time to time (the
“Act”) or other similar Legal Requirement of the jurisdiction in which each Borrower is formed, or
otherwise, or (3) take any Material Action or action that might cause such entity to become insolvent, in each case, without the
unanimous written consent of all of its partners or members, as applicable, and the written consent of all directors or managers of
Borrower or Borrower’s sole member, as applicable, including, without limitation, the Independent Director; (xxiv) not
maintain its assets in such a manner that it will be costly or difficult to segregate, ascertain or identify its individual assets
from those of any other Person; (xxv) not fail to (1) file its own tax returns separate from those of any other Person, except to
the extent that Borrower is treated as a “disregarded entity” or part of a consolidated (or combined) group for tax
purposes and is not required to file its own tax returns under applicable Legal Requirements and (2) pay any taxes required to be
paid under applicable Legal Requirements; provided, however, that Borrower shall not have any obligation to reimburse its
equityholders or their Affiliates for any taxes that such equityholders or their Affiliates may incur as a result of any profits or
losses of Borrower; (xxvi) not have any of its obligations guaranteed by an Affiliate, except as contemplated by the Loan Documents;
(xxvii) not identify itself as a department or division of any other Person; (xxviii) with respect to Borrower’s sole member,
cause Borrower to comply with the provisions of this Section 8.14; and (xxix) with respect to Borrower, have
organizational documents that provide that (1) upon the occurrence of any event that causes the last remaining member of Borrower
(“Member”) to cease to be the member of Borrower (other than (x) upon an assignment by Member of all of
its limited liability company interest in Borrower and the admission of the transferee in accordance with the Loan Documents and
Borrower’s operating agreement, or (y) the resignation of Member and the admission of an additional member of Borrower in
accordance with the terms of the Loan Documents and Borrower’s operating agreement), the personal representative of Member
shall, within ninety (90) days, agree in writing to continue the existence of Borrower and to the admission of such personal
representative or its nominee or designee, as the case may be, as a substitute member of Borrower, effective as of the occurrence of
the event that caused Member to cease to be a member of Borrower, and any Person acting as the Independent Director of Borrower
shall, without any action of any other Person and simultaneously with the Member ceasing to be the member of Borrower, automatically
be admitted to Borrower (“Special Member”) and shall continue Borrower’s existence without
dissolution and (2) Special Member may not resign from Borrower or transfer its rights as Special Member or be removed as Special
Member unless (x) a successor Special Member has been admitted to Borrower as Special Member in accordance with requirements of
Delaware law and (y) such successor Special Member has also accepted its appointment as the Independent Director. Borrower’s
organizational documents shall further provide that (v) Special Member shall automatically cease to be a member of Borrower upon the
admission to Borrower of a substitute Member, (w) pursuant to Section 18-301 of the Act, Special Member shall be a member of
Borrower that has no interest in the profits, losses and capital of Borrower and has no right to receive any distributions of
Borrower assets, (x) pursuant to Section 18-301 of the Act, Special Member shall not be required to make any capital contributions
to Borrower and shall not receive a limited liability company interest in Borrower, (y) Special Member, in its capacity as Special
Member, may not bind Borrower and (z) except as required by any mandatory provision of the Act, Special Member, in its capacity as
Special Member, shall have no right to vote on, approve or otherwise consent to any action by, or matter relating to, Borrower,
including, without limitation, the merger, consolidation or conversion of Borrower; provided, however, such prohibition shall not
limit the obligations of Special Member, in its capacity as Independent Director, to vote on such matters required by
Borrower’s operating agreement. In order to implement the admission to Borrower of Special Member, Special Member shall
execute a counterpart to Borrower’s operating agreement. Prior to its admission to Borrower as Special Member, Special Member
shall not be a member of Borrower. Neither Borrower nor any member or Affiliate of Borrower may remove an Independent Director or
Special Member without Lender’s prior consent. Any action initiated by or brought against Member or Special Member under any
Creditors Rights Law shall not cause Member or Special Member to cease to be a member of Borrower and upon the occurrence of such an
event, the existence of Borrower shall continue without dissolution. Borrower’s operating agreement shall also provide that
each of Member and Special Member waives any right it might have to agree in writing to dissolve Borrower upon the occurrence of any
action initiated by or brought against Member or Special Member under any Creditors Rights Law, or the occurrence of an event that
causes Member or Special Member to cease to be a member of Borrower. The organizational documents of Borrower and Borrower’s
sole member shall provide an express acknowledgment that Lender is an intended third party beneficiary of the “special
purpose” provisions of such organizational documents. For the avoidance of doubt, compliance with the immediately preceding
six sentences shall also comprise elements of the definition of “Single Purpose Entity.”

 

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(b) The
organizational documents of Borrower (where Borrower is a corporation or a single member limited liability company formed under the
Act) and Borrower’s sole member, as applicable, shall include the following provisions: (i) at all times there shall be, and
Borrower or Borrower’s sole member, as applicable, shall cause there to be, at least one (1) Independent Director; (ii) the
board of directors or managers of Borrower or Borrower’s sole member, as applicable, shall not take any Material Action which,
under the terms of any certificate of incorporation, by laws, voting trust agreement with respect to any common stock, articles of
organization or operating agreement requires unanimous vote of the board of directors or managers of Borrower or Borrower’s
sole member, as applicable, unless at the time of such action there shall be at least one member of the board of directors or
managers who is an Independent Director; (iii) Borrower or Borrower’s sole member, as applicable, shall not, without the
unanimous written consent of its board of directors or managers, including the Independent Director, on behalf of itself or
Borrower, as the case may be, take any Material Action or any action that might cause such entity to become insolvent, and when
voting with respect to such matters, the Independent Director shall, to the fullest extent permitted by law, including Section
18-1101(c) of the Act, and notwithstanding any duty otherwise existing at law or in equity, consider only the interests of Borrower
and Borrower’s sole member (including their respective creditors), and except for its duties to Borrower and Borrower’s
sole member with respect to voting on matters as set forth immediately above (which duties shall extend to the constituent equity
owners of Borrower and Borrower’s sole member solely to the extent of their respective economic interests in Borrower or
Borrower’s sole member but shall exclude (1) all other interests of such constituent equity owners, (2) the interests of other
affiliates of Borrower or Borrower’s sole member, and (3) the interests of any group of affiliates of which Borrower and
Borrower’s sole member are a part), the Independent Director shall not have any fiduciary duties to such constituent equity
owners, any officer or any other Person; provided, however, the foregoing shall not eliminate the implied contractual covenant of
good faith and fair dealing; and (iv) no Independent Director of Borrower or Borrower’s sole member may be removed or replaced
other than as a result of an Independent Director Event, and any such removal or replacement shall not occur unless Borrower or
Borrower’s sole member provides Lender with not less than five (5) Business Days’ prior written notice of (1) any
proposed removal of an Independent Director, together with a statement as to the reasons for such removal, and (2) the identity of
the proposed replacement Independent Director, together with a certification that such replacement satisfies the requirements set
forth in the organizational documents for an Independent Director; provided, however, no resignation or removal of an Independent
Director shall be effective until a successor Independent Director is appointed and has accepted his or her appointment.

 

Section 8.15 Cooperation.

 

(a)   Borrower
acknowledges that Lender and its successors and assigns may without notice to or consent from Borrower (i) sell this Agreement, the Mortgage,
the Note, the other Loan Documents, and any and all servicing rights thereto to one or more investors as a whole loan, (ii) participate
the Loan to one or more investors, (iii) deposit this Agreement, the Note and the other Loan Documents with a trust, which trust may sell
certificates to investors evidencing an ownership interest in the trust assets, or (iv) otherwise sell or encumber the Loan or interests
therein to investors (the transactions referred to in clauses (i) through (iv) are hereinafter each referred to as a “Secondary
Market Transaction”). Borrower shall cooperate with Lender in effecting any such Secondary Market Transaction and shall
cooperate to implement all requirements imposed by any rating agency involved in any Secondary Market Transaction. Borrower further agrees
that Lender may, without any notice to or consent from Borrower, disseminate to any such actual or potential purchaser(s), assignee(s),
lender(s) or participant(s) all documents and information (including all financial information) which has been or is hereafter provided
to or known to Lender with respect to: (a) the Project and its operation; (b) any party connected with the Loan (including Borrower, any
Borrower Party, any partner of Borrower or any Borrower Party, any constituent partner or member of Borrower or any Borrower Party), and/or
(c) any lending relationship other than the Loan which Lender may have with any party connected with the Loan. Borrower shall provide
such information and documents (and updated information and documents) relating to Borrower, Guarantor and the Project as Lender may request
in connection with such Secondary Market Transaction, together with such opinion(s) of counsel as Lender may reasonably request. In addition,
Borrower shall make available to Lender all information concerning its business and operations that Lender may reasonably request. Lender
shall be permitted to share all such information with the investment banking firms, rating agencies, accounting firms, law firms and other
third-party advisory firms involved with the Loan and the Loan Documents or the applicable Secondary Market Transaction. It is understood
that the information provided by Borrower to Lender may ultimately be incorporated into the offering documents for the Secondary Market
Transaction and thus various investors may also see some or all of the information. Lender and all of the aforesaid third-party advisors
and professional firms shall be entitled to rely on the information supplied by or on behalf of Borrower. Borrower also agrees to execute
any amendment of or supplement to this Agreement and the other Loan Documents as Lender may reasonably request in connection with any
Secondary Market Transaction, provided that such amendment or supplement does not change any of the economic terms of the Loan or materially
increase Borrower’s non-monetary Obligations or materially diminish Borrower’s rights under this Agreement and the other Loan
Documents. All reasonable third party costs and expenses incurred by any Loan Party in connection with Borrower’s complying with
requests made under this Section 8.15 shall be paid by Lender, except for Borrower’s attorneys’ fees. In the
event of any such sale, assignment, encumbrance, grant or participation, Lender and the parties to such transaction will share in the
rights and obligations of Lender as set forth in the Loan Documents only as and to the extent they agree among themselves.

 

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(b) Lender shall
have the right, at its own expense, at any time, to modify the Loan in order to create one or more notes of equal or varying
priority and/or interest rates (including, without limitation, so-called “A/B Notes”); provided, that: (i)
the Principal Balance of the Loan as of the effective date of such modification equals the Principal Balance of the Loan immediately
prior to such modification; and (ii) the weighted average stated interest rate of all such notes on the date created shall equal the
stated interest rates that were applicable to the Loan immediately prior to such modification of the Loan. Lender shall have the
right to modify the Loan in accordance with this Section 8.15(b) upon notice to Borrower in which event such
modification shall then be deemed effective. If requested by Lender, Borrower shall promptly execute an amendment to this Agreement,
the Note and the other Loan Documents to evidence such modification; provided that such amendment shall have no materially adverse
tax consequences to Borrower or any of its direct or indirect owners. Borrower shall, at its own expense, cooperate with all
reasonable requests of Lender in order to establish the “component” notes and shall execute and deliver such documents
as shall reasonably be required by Lender in connection therewith.

 

(c)   The
indemnity obligations of Borrower under the Loan Documents (including under Section 8.12) will also apply with respect to
any purchaser, assignee, lender or participant. Anything in this Agreement to the contrary notwithstanding, and without the need to comply
with any of the formal or procedural requirements of this Agreement, including this Section 8.15, Lender may (without notice
to Borrower and without payment of any fee) at any time and from time to time pledge and assign all or any portion of its rights under
all or any of the Loan Documents to a Federal Reserve Bank or a Federal Home Loan Bank; provided that no such pledge or assignment will
release Lender from its obligations thereunder. In the event Lender sells or assigns the Loan and the Loan Documents, Lender will endeavor
to give Borrower notice thereof (without liability for failure to so deliver such notice).

 

(d)   At
the option of Lender, the Loan may be serviced by a master servicer, primary servicer, special servicer and/or trustee (any such master
servicer, primary servicer, special servicer, and trustee, together with its agents, nominees or designees, are collectively referred
to as “Servicer”) selected by Lender and Lender may delegate all or any portion of its responsibilities under
this Agreement and the other Loan Documents to Servicer pursuant to a pooling and servicing agreement, servicing agreement, special servicing
agreement or other agreement providing for the servicing of one or more mortgage loans (collectively, the “Servicing Agreement”)
between Lender and Servicer. Borrower shall be responsible for any reasonable set up fees or any other initial costs relating to or arising
under the Servicing Agreement, but Borrower shall not be responsible for payment of the regular monthly master servicing fee or trustee
fee due to Servicer under the Servicing Agreement or any fees or expenses required to be borne by, and not reimbursable to, Servicer.
Notwithstanding the foregoing, Borrower shall promptly reimburse Lender on demand for (i) interest payable on advances made by Servicer
with respect to delinquent debt service payments (to the extent charges are due under this Agreement and interest at the Default Rate
actually paid by Borrower in respect of such payments is insufficient to pay the same) and expenses paid by Servicer or trustee in respect
of the protection and preservation of the Project (including, without limitation, payments of Taxes and insurance premiums) and (ii) all
of the following costs and expenses, liquidation fees, workout fees, special servicing fees, operating advisor fees or any other similar
fees payable by Lender to Servicer: (A) as a result of an Event of Default or the Loan becoming specially serviced, an enforcement, refinancing
or restructuring of the credit arrangements provided under this Agreement in the nature of a “work-out” of the Loan Documents
or of any insolvency or bankruptcy proceeding; (B) any liquidation fees, workout fees, special servicing fees, operating advisor fees
or any other similar fees that are due and payable to Servicer under the Servicing Agreement or the trustee, which fees may be due and
payable under the Servicing Agreement on a periodic or continuing basis; (C) the costs of all property inspections and/or appraisals of
the Project (or any updates to any existing inspection or appraisal) that Servicer or the trustee may be required to obtain (other than
the cost of regular annual inspections required to be borne by Servicer under the Servicing Agreement); or (D) any special requests made
by Borrower or Guarantor during the term of the Loan including, without limitation, in connection with a prepayment, assumption or modification
of the Loan.

 

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Section 8.16 Required Debt Yield;
Cash Sweep.

 

(a) The Debt
Yield shall be calculated quarterly, beginning on the first Test Date, by Borrower within thirty (30) days following the end of the
immediately preceding calendar quarter. Borrower shall promptly certify to Lender such calculation in writing, together with all
statements and background information used for such calculation. Notwithstanding the foregoing, Lender may complete its separate
calculation of Debt Yield as of such Test Date, which shall be binding on Borrower absent manifest error.

 

(b)   Beginning
on the date hereof and continuing until the Obligations are satisfied in full, Borrower covenants that the Projects shall maintain an
aggregate Debt Yield of not less than 7.75%.

 

(c)   If
at any time (and from time to time) the aggregate Debt Yield is less than 7.75%, Lender may in its sole discretion send a Redirection
Notice, which shall cause Lender to have full control of the Collections Account in accordance with Section 2.9 until a
Cash Sweep Cure Event.

 

(d)   If
at any time (and from time to time) Debt Yield is less than 6.25%, then Borrower shall deposit with Lender a cash reserve (the “Interest
Reserve Funds”) in an amount as, when deducted from the Principal Balance, would cause the Debt Yield to be no less than 6.35%
(the “Debt Yield Deposit Requirement”). If prior to the occurrence of such failure to achieve at least a 6.25% Debt
Yield, a Cash Sweep Period was already ongoing, then Lender shall first apply funds in the Cash Management Account to satisfy the Debt
Yield Deposit Requirement. The Interest Reserve Funds shall be returned to Borrower when Project achieves a Debt Yield of no less than
6.35% for two (2) consecutive calendar quarters (without taking the Interest Reserve Funds into consideration for such Debt Yield calculation),
and provided that no other Cash Sweep Period or Event of Default is then ongoing.

 

Section 8.17
Financial Covenants. Borrower shall cause Guarantor to maintain throughout the term of the Loan (a) a consolidated net worth of not
less than $110,000,000.00, as reasonably determined by Lender, and (b) minimum liquidity of $6,000,000.00 (consisting only of available
cash and/or readily marketable securities traded on a major U.S. domestic, public stock exchange). Lender shall test Guarantor’s
consolidated net worth, minimum liquidity and contingent liabilities on an semi-annual basis. The foregoing financial requirements and
covenants imposed upon Guarantor are referred to in this Agreement as the “Financial Covenants.” With respect
to Guarantor’s minimum liquidity, liquid assets shall be deemed to include only cash and cash equivalents, obligations of the U.S.
government supported by its full faith and credit, certificates of deposit issued by commercial banks which at all times are rated in
the highest short-term rating category by each Rating Agency, securities listed and traded on a recognized stock exchange or traded over
the counter and listed in the National Association of Securities Dealers Automatic Quotations and liquid debt instruments that have a
readily ascertainable value and are regularly traded in a recognized financial market, none of which liquid assets have been pledged,
encumbered or otherwise restricted in use, including, without limitation, by operation of any applicable cash management system.

 

Section 8.18 Intentionally
Omitted.

 

Section 8.19 Accounts.

 

(a)   Borrower
represents, warrants and covenants that there are and shall be no deposit, securities or similar accounts (other than the Accounts) maintained
by Borrower or any other Person with respect to the Project. Borrower shall promptly deposit or cause to be deposited all Operating Revenues
into the Collections Accounts within two (2) Business Days of receipt.

 

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(b) Borrower
agrees that, until the Obligations are indefeasibly satisfied in full, neither Borrower nor any other Person shall (i) close the
Collections Accounts, (ii) open any accounts for the operations of the Project except for the Accounts and any other accounts
approved by Lender in its sole discretion or (iii) rescind, withdraw or change the directions sent pursuant to Section
8.19(a) without Lender’s prior written consent. The foregoing shall not prohibit Borrower from opening, maintaining
and utilizing one or more separate accounts for the disbursement or retention of funds that have been transferred to Borrower to the
extent permitted under this Agreement and the other Loan Documents and provided that, prior to the use of such separate accounts,
Borrower pledges and grants to Lender a security interest in all such funds and accounts as additional security for the Loan and
enters into a control agreement(s) evidencing and/or securing such pledge as Lender shall require.

 

(c)   Borrower
hereby pledges and grants to Lender a security interest in the Collections Accounts, the other Accounts and in all such funds and accounts
as additional security for the Obligations and shall enter into such control agreement(s) evidencing and/or securing such pledge as Lender
shall require.

 

(d)   Borrower
acknowledges that if Depositary Bank sets off and/or charges the Collections Accounts for any fees or expenses, within fifteen (15) days
of such set off or charge, Borrower shall deposit, or shall cause to be deposited, into the Collections Accounts an amount equal to such
set off or charge.

 

(e)   During
a Cash Sweep Period or Event of Default, Borrower shall provide to Lender electronic access to the Accounts.

 

Section 8.20
ERISA. Borrower shall not establish any pension plan for employees which would cause Borrower to be subject to the ERISA. However,
the foregoing shall not prohibit Borrower from being a party to any collective bargaining agreement for its employees which provides for
pension plan contributions.

 

Section 8.21 No Cross-Default or
Cross-Collateralization.

 

(a)   Except
as expressly contemplated in the Loan Documents, neither Borrower nor any Borrower Party shall (i) enter into any agreement under which,
the default by Borrower or such Borrower Party, as the case may be, may result in an Event of Default under this Agreement or any of the
other Loan Documents, or (ii) grant a Lien on any of the collateral for the Obligations to secure any obligation of Borrower or any Borrower
Party under any agreement with any Person other than Lender related to the Loan.

 

(b)   Borrower
shall not be a party to, or be bound by, any so-called integrated cash management arrangement with any of its Affiliates or sponsors.

 

Section 8.22
No Cessation of Business. Borrower shall not cease, or threaten to cease, to carry on its business operations as they exist on the
date hereof.

 

Section 8.23 No Cash
Distributions. While an Event of Default or any Cash Sweep Period exists, Borrower shall not declare or pay any dividend or make
any other distribution to its interest owners, directly or indirectly, issue any further ownership interests or alter any rights
attaching to its issued ownership interests as at the date of this Agreement, or repay or redeem any of its invested capital. Any
fees to Borrower, Guarantor, any of their respective affiliates, principals, partners, sureties or any related Person shall be
subordinate to Debt Service on the Loan. For the avoidance of any doubt, and in accordance with this Section 8.23,
Guarantor may receive, as the sole member of Borrower, periodic distributions of net cash flow from operations of the Project so
long as no Event of Default exists, the Loan is not in a Cash Sweep Period, and such distributions are made pursuant to the
organizational documents of Borrower.

 

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ARTICLE 9

 

EVENTS OF
DEFAULT

 

Each of the following shall constitute an “Event
of Default” under the Loan:

 

Section 9.1
Payments. Borrower’s failure to pay (w) any regularly scheduled installment of principal due under this Agreement or the Note
on its due date, (x) interest or other regularly scheduled amount due under this Agreement or the Loan Documents within two (2) Business
Days after the date when due, (y) the Loan at the Maturity Date, whether by acceleration or otherwise, or (z) any other amount required
to be paid by Borrower hereunder or under any of the other Loan Documents within the time periods applicable to any such payment after
notice by Lender to Borrower as set forth herein or therein, or if no time period and/or notice period is expressly set forth, within
five (5) Business Days after Lender’s demand therefor.

 

Section 9.2
Insurance. (a) Borrower’s failure to maintain insurance as required under Section 3.1 of this Agreement or (b)
in the event that a copy of the insurance policy with respect to a specific insurance coverage has not already been delivered to Lender,
the failure of Borrower to deliver such insurance policy within thirty (30) days after the date hereof or (c) the failure of any certificate
of insurance delivered to Lender to accurately reflect in any respect the insurance coverage provided under the insurance policy to which
such certificate of insurance relates.

 

Section 9.3
Sale, Encumbrance, etc. The Transfer of any part or all of the Project, or any interest therein, or of any interest in Borrower, in
violation of Section 8.1.

 

Section 9.4 Covenants.
Borrower’s failure to perform or observe any of the agreements and covenants contained in this Agreement or in any of the
other Loan Documents, and the continuance of such failure for thirty (30) days after notice by Lender to Borrower; however, subject
to any shorter period for curing any failure as specified in any of the other Loan Documents. Borrower shall have an additional
sixty (60) days to cure such failure if (a) such failure does not involve the failure to make payments on a monetary obligation; (b)
intentionally omitted; (c) Borrower is diligently undertaking to cure such failure, and (d) Borrower has provided Lender with
security reasonably satisfactory to Lender against any interruption of payment or impairment of collateral as a result of such
continuing failure. The notice and cure provisions of this Section 9.4 do not apply to the other Events of Default
described in this Article 9.

 

Section 9.5
Representations and Warranties. Any certification, representation or warranty made in, or pursuant to, any Loan Document proves to
be untrue in any material respect when made or deemed made.

 

Section 9.6
Single Purpose Entity. The failure of any Borrower to maintain its status as a Single Purpose Entity.

 

Section 9.7 Involuntary
Bankruptcy or Other Proceeding. Commencement of an involuntary case or other proceeding against Borrower, any Borrower Party or
any other Person having an ownership or security interest in the Project (each, a “Bankruptcy Party”)
which seeks liquidation, reorganization or other relief with respect to it or its debts or other liabilities under any
Creditors’ Rights Law now or hereafter in effect or seeks the appointment of a trustee, receiver, liquidator, custodian or
other similar official of it or any of its property, and such involuntary case or other proceeding shall remain undismissed or
unstayed for a period of sixty (60) days; or an order for relief against a Bankruptcy Party shall be entered in any such case under
the Bankruptcy Code.

 

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Section 9.8
Voluntary Petitions, etc. Commencement by a Bankruptcy Party of a voluntary case or other proceeding seeking liquidation, reorganization
or other relief with respect to itself or its Debts or other liabilities under any Creditors’ Rights Law or seeking the appointment
of a trustee, receiver, liquidator, custodian or other similar official for it or any of its property, or consent by a Bankruptcy Party
to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced
against it, or the making by a Bankruptcy Party of a general assignment for the benefit of creditors, or the failure by a Bankruptcy Party,
or the admission by a Bankruptcy Party in writing of its inability to pay its debts generally as they become due, or any action by a Bankruptcy
Party to authorize or effect any of the foregoing.

 

Section 9.9
Failure to Make Deposit. Borrower’s failure to make the Debt Yield Deposit Requirement as and when required pursuant to Section
8.16.

 

Section 9.10
Misapplication or Misappropriation of Funds. Borrower’s misapplication or misappropriation of (a) Reserve Funds, funds disbursed
from the Reserve Funds, or any proceeds of the Loan disbursed pursuant to Section 2.6, or (b) security deposits in violation
of the Leases.

 

Section 9.11
Failure To Make Deposits. Borrower’s failure to deliver to Lender the impounds required in accordance with Section 3.4.

 

Section 9.12
Mezzanine Loan. The existence of any Mezzanine Loan Default and such Mezzanine Loan Default remains uncured within thirty (30) days
after occurrence of the same.

 

Section 9.13
Anti-Terrorism and Anti-Money Laundering. The failure of Borrower or any of its Affiliates to comply with the provisions of Article
13.

 

Section 9.14
Other Loan Documents. The occurrence of a default, Default, event of default, or Event of Default (beyond the expiration of any applicable
notice or cure periods) under any of the other Loan Documents.

 

Section 9.15 Other
Defaults. The occurrence of a (i) default under Section 2.6, 2.8, 5.2, 5.3(e),
(f), or (g), 8.2, 8.3, 8.4(ii), (iii), (iii) or (iv), 8.5, 8.6, 8.7, 8.8, 8.11, 8.17, 8.19, 8.21, 8.22, 8.23
or 8.25 of this Agreement beyond any applicable notice, cure or grace period expressly set forth therein, or (ii) a
default which continues for fifteen (15) days under Section 8.4(i), or 5.3(a), (b), (c), (d) or (h).

 

Section 9.16
ERISA. The assets of any Loan Party become “plan assets” within the meaning of Department of Labor regulation 29 C.F.R.
Section 2510.3-101, as modified by Section 3(42) of ERISA, of any “employee benefit plan” within the meaning of Section 3(3)
of ERISA that is subject to Title I of ERISA, any “plan” within the meaning of Section 4975 of the Code that is subject to
Section 4975 of the Code or any entity the underlying assets of which are deemed to include plan assets.

 

Notwithstanding anything herein or
in the other Loan Documents to the contrary, if an Event of Default occurs (after expiration of any applicable cure periods in this Article
9 or any of the other Loan Documents), no Borrower nor any other Borrower Party shall have a right to cure such Event of Default,
and Lender shall have no obligation to accept such cure. Any such Event of Default shall exist unless waived in accordance with Section
11.2 of this Agreement.

 

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ARTICLE 10

 

REMEDIES

 

Section 10.1 Remedies -
Insolvency Events. Upon the occurrence of any Event of Default described in Section 9.7 or Section
9.8, the obligations of Lender to advance amounts hereunder shall automatically and immediately terminate, and all amounts
due under the Loan Documents automatically and immediately shall become due and payable, all without notice and without presentment,
demand, protest, notice of protest or dishonor, notice of intent to accelerate the maturity thereof, notice of acceleration of the
maturity thereof, or any other notice of any kind, all of which are hereby expressly waived by Borrower; provided; however, that if
the Bankruptcy Party under Section 9.7 or Section 9.8 is other than Borrower, then all amounts due under
the Loan Documents shall become immediately due and payable at Lender’s election, in Lender’s sole discretion.

 

Section 10.2
Remedies - Other Events. Except as set forth in Section 10.1 above, while any Event of Default exists, Lender may (a)
by notice to Borrower, declare the entire Loan to be immediately due and payable without presentment, demand, protest, notice of protest
or dishonor, notice of intent to accelerate the maturity thereof, notice of acceleration of the maturity thereof, or other notice of default
of any kind, all of which are hereby expressly waived by Borrower, (b) terminate the obligation, if any, of Lender to advance amounts
hereunder, and (c) exercise all rights and remedies therefor under the Loan Documents and at law or in equity.

 

Section 10.3
Lender’s Right to Perform the Obligations. If Borrower shall fail, refuse or neglect to make any payment or perform any act
required by the Loan Documents, then while any Event of Default exists, and without notice to or demand upon Borrower and without waiving
or releasing any other right, remedy or recourse Lender may have because of such Event of Default, Lender may (but shall not be obligated
to) make such payment or perform such act for the account of and at the expense of Borrower, and shall have the right to enter upon the
Project for such purpose and to take all such action thereon and with respect to the Project as it may deem necessary or appropriate.
If Lender shall elect to pay any sum due with reference to the Project, Lender may do so upon consultation with Borrower and in reliance
on any bill, statement or assessment procured from the appropriate Governmental Authority or other issuer thereof without inquiring into
the accuracy or validity thereof. Similarly, in making any payments to protect the security intended to be created by the Loan Documents,
Lender shall consult with Borrower but shall not be bound to inquire into the validity of any apparent or threatened adverse title, lien,
encumbrance, claim or charge before making an advance for the purpose of preventing or removing the same. Additionally, if any Hazardous
Materials affect or threaten to affect the Project, Lender may (but shall not be obligated to) give such notices and take such actions
as it deems necessary or advisable in order to abate the discharge of any Hazardous Materials or remove the Hazardous Materials. Borrower
shall indemnify, defend and hold Lender harmless from and against any and all losses, liabilities, claims, damages, expenses, obligations,
penalties, actions, judgments, suits, costs or disbursements of any kind or nature whatsoever, including reasonable attorneys’ fees,
incurred or accruing by reason of any acts performed by Lender pursuant to the provisions of this Section 10.3, including
those arising from the joint, concurrent, or comparative negligence of Lender, except as a result of Lender’s gross negligence or
willful misconduct. All sums paid by Lender pursuant to this Section 10.3, and all other sums expended by Lender to which
it shall be entitled to be indemnified, together with interest thereon at the Default Rate from the date of such payment or expenditure
until paid, shall constitute additions to the Loan, shall be secured by the Loan Documents and shall be paid by Borrower to Lender upon
demand.

 

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ARTICLE 11

 

MISCELLANEOUS

 

Section 11.1 Notices. Any
approval, confirmation, consent, demand, determination, notice, request or other communication required or permitted to be given
under this Agreement or any other Loan Documents shall be in writing and either shall be sent by overnight air courier service,
personally delivered to a representative of the receiving party. All such communications shall be sent or delivered, addressed to
the party for whom it is intended at its address set forth below.

 

	If to Borrower:	c/o
                              Wheeler REIT, L.P.

                                                                           2529
                                            Virginia Beach Blvd.

                                                                           Virginia
                                            Beach, VA 23452

                                                                           Attention:
                                            M. Andrew Franklin

                                                                           

	 	 
	With a copy to:	Stuart Pleasants

        2529 Virginia
        Beach Blvd.

        Virginia Beach, VA 23452

        

	 	 
	If to Lender:	Guggenheim Real Estate, LLC

                                                           c/o Guggenheim Partners Investment Management, LLC

                                                           100 Wilshire Boulevard, Suite 500

                                                           Santa Monica, California 90401

                                                           Attention: Head of Real Estate

                                                           

	 	 
	With a copy to:	Guggenheim Real Estate, LLC

                                                           c/o Guggenheim Partners Investment Management, LLC

                                                           231 S. Bemiston Avenue, Suite 1250

                                                           St. Louis, Missouri 63105

                                                           Attention: Jennifer A. Marler

                                                           

	 	 
	With a copy to:	Dentons US LLP

                                                           4520 Main Street, Suite 1100

                                                           Kansas City, Missouri 64111

                                                           Attention: Sarah Armendariz, Esq.

                                                           

  

Any communication so addressed and
mailed shall be deemed to be given on the earliest of (1) when actually delivered or (2) on the first (1st) Business Day
after deposit with an overnight air courier service, in each case to the address of the intended addressee (except as otherwise
provided in the Mortgage), and any communication so delivered in person shall be deemed to be given when receipted for by, or
actually received by Lender or Borrower, as the case may be. Either party may designate a change of address by notice to the other
by giving at least ten (10) days prior notice of such change of address. Notwithstanding anything to the contrary set forth herein
or in any other Loan Documents, notices under each Loan Document shall be permitted to be given by electronic mail so long as such
notice is transmitted to the electronic mail addresses of the recipient set forth in and a copy of such notice is also sent by one
of the other permitted notice methods under such Loan Document. For purposes of the foregoing, (a) Borrower’s electronic mail
address for notices is loans@whlr.us, with copies afranklin@whlr.us and cplum@whlr.us; and (b) Guarantor’s electronic mail
address for notices is loans@whlr.us, with a copy to cplum@whlr.us.

 

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Section 11.2 Amendments
and Waivers. No amendment or waiver of any provision of the Loan Documents shall be effective unless in writing and signed by the
party against whom enforcement is sought. For the avoidance of doubt, nothing herein or in any of the other Loan Documents shall be, or
shall be deemed to constitute, a waiver, amendment, modification, forbearance or extension with respect to the Loan or the other Loan
Documents other than in accordance with the express terms and conditions hereof for the limited and express purposes contemplated hereby.
In addition, no single or multiple waivers, amendments, modifications, forbearances or extensions, whether previously entered into or
entered into in the future, shall constitute, or be deemed to constitute, a course of dealing creating any additional obligation to waive,
amend, modify, forbear or extend any obligations or conditions under any of the Loan Documents, unless expressly agreed in writing by
the parties hereto.

 

Section
11.3 Limitation on Interest. It is the intention of the parties hereto to conform strictly to applicable usury Legal
Requirements. Accordingly, all agreements between Borrower, on one hand, and Lender, on the other hand, with respect to the Loan are
hereby expressly limited so that in no event, whether by reason of acceleration of maturity or otherwise, shall the amount paid or
agreed to be paid to Lender or charged by Lender for the use, forbearance or detention of the money to be lent hereunder or
otherwise, exceed the maximum amount allowed by Legal Requirements. If the Loan would be usurious under applicable Legal
Requirements (including the Legal Requirements of the State of New York, the State and the U.S.), then, notwithstanding anything to
the contrary in the Loan Documents: (1) the aggregate of all consideration which constitutes interest under applicable Legal
Requirements that is contracted for, taken, reserved, charged or received under the Loan Documents shall under no circumstances
exceed the maximum amount of interest allowed by applicable Legal Requirements, and any excess shall be credited on the Note by the
holder thereof (or, if the Note has been paid in full, refunded to Borrower); and (2) if maturity is accelerated by reason of an
election by Lender, or in the event of any prepayment, then any consideration which constitutes interest may never include more than
the maximum amount allowed by applicable Legal Requirements. In such case, excess interest, if any, provided for in the Loan
Documents or otherwise, to the extent permitted by applicable Legal Requirements, shall be amortized, prorated, allocated and spread
from the date of advance until payment in full so that the actual rate of interest is uniform through the term hereof. If such
amortization, proration, allocation and spreading is not permitted under applicable Legal Requirements, then such excess interest
shall be canceled automatically as of the date of such acceleration or prepayment and, if previously paid, shall be credited on the
Note (or, if the Note has been paid in full, refunded to Borrower). The terms and provisions of this Section 11.3
shall control and supersede every other provision of the Loan Documents. The Loan Documents are contracts made under and shall be
construed in accordance with and governed by the Legal Requirements of the State of New York, without giving effect to New
York’s principles of conflicts of laws, except that if at any time U.S. federal Legal Requirements permit Lender to contract
for, take, reserve, charge or receive a higher rate of interest than is allowed by the Legal Requirements of the State of New York
(whether such U.S. federal Legal Requirements directly so provide or refer to the Legal Requirements of any state), then such U.S.
federal Legal Requirements shall to such extent govern as to the rate of interest which Lender may contract for, take, reserve,
charge or receive under the Loan Documents.

 

Section
11.4 Invalid Provisions. If any provision of any Loan Document is held to be illegal, invalid or unenforceable, such provision
shall be fully severable; the Loan Documents shall be construed and enforced as if such illegal, invalid or unenforceable provision
had never comprised a part thereof; the remaining provisions thereof shall remain in full effect and shall not be affected by the
illegal, invalid, or unenforceable provision or by its severance therefrom; and in lieu of such illegal, invalid or unenforceable
provision there shall be added automatically as a part of such Loan Document a provision as similar in terms to such illegal,
invalid or unenforceable provision as may be possible to be legal, valid and enforceable.

 

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Section 11.5 Reimbursement
of Expenses. Borrower shall promptly upon request pay all expenses incurred by Lender in connection with the origination of the Loan
and the preparation, negotiation, execution and delivery of the Loan Documents, including, without limitation, fees and expenses of Lender’s
environmental, engineering, insurance and other consultants, premiums for title insurance and endorsements thereto and fees, charges or
taxes for the recording or filing of Loan Documents, and the reasonable fees and expenses of Lender’s attorneys, whether incurred
by Lender prior to, on or after the date hereof. Borrower shall also promptly upon request from time to time pay all expenses of Lender
in connection with the administration of the Loan, including, without limitation, amendments, modifications, consents, waivers, audit
costs, inspection fees, settlement of condemnation and casualty awards, expenses, charges and expenses of any other architectural/engineering
consultants. Borrower shall promptly upon request reimburse Lender for all amounts expended, advanced or incurred by Lender to collect
the Note, or to enforce the rights of Lender under this Agreement or any other Loan Document, or to defend or assert the rights and claims
of Lender under the Loan Documents or with respect to the Project (by litigation or other proceedings), which amounts will include, without
limitation, all court costs, reasonable attorneys’ fees and expenses, fees of auditors and accountants, and investigation expenses
as may be incurred by Lender in connection with any such matters (whether or not litigation is instituted), together with interest at
the Default Rate on each such amount from the date of disbursement until the date of reimbursement to Lender, all of which shall constitute
part of the Loan and shall be secured by the Loan Documents.

 

Section 11.6 Approvals;
Third Parties; Conditions. All approval rights retained or exercised by Lender with respect to leases, contracts, plans, studies and
other matters are solely to facilitate the Lender’s credit underwriting, and shall not be deemed or construed as a determination
that Lender have passed on the adequacy thereof for any other purpose and may not be relied upon by Borrower or any other Person. This
Agreement is for the sole and exclusive use of Lender and Borrower and may not be enforced, nor relied upon, by any Person other than
Lender and Borrower. All conditions to the obligations of Lender hereunder, including the obligation to make the Loan, are imposed solely
and exclusively for the benefit of Lender, its successors and assigns, and no other Person shall have standing to require satisfaction
of such conditions or be entitled to assume that Lender will refuse to make the Loan in the absence of strict compliance with any or all
of such conditions, and no other Person shall, under any circumstances, be deemed to be a beneficiary of such conditions, any and all
of which may be freely waived in whole or in part by Lender at any time in Lender’s sole discretion.

 

Section
11.7 Lender Not in Control; No Partnership. None of the covenants or other provisions contained in this Agreement shall, or
shall be deemed to, give Lender the right or power to exercise control over the affairs or management of Borrower, the power of
Lender being limited to the rights to exercise the remedies referred to in the Loan Documents. The relationship between Borrower, on
the one hand, and Lender, on the other hand, is, and at all times shall remain, solely that of debtor and creditor. No covenant or
provision of the Loan Documents is intended, nor shall it be deemed or construed, to create a partnership, joint venture, agency or
common interest in profits or income between Lender, and Borrower or to create an equity in the Project in Lender. Lender neither
undertakes nor assumes any responsibility or duty to Borrower or to any other person with respect to the Project or the Loans,
except as expressly provided in the Loan Documents; and notwithstanding any other provision of the Loan Documents: (a) Lender shall
not be construed as (i) a partner, joint venturer, agent, alter ego, manager, controlling person or other business associate or
participant of any kind of Borrower or its stockholders, members, or partners or (ii) having a common interest in profits or income
between Lender and Borrower, or to create an equity interest in the Project in Lender, and Lender intends to ever assume such
status; (b) Lender shall not in any event be liable for any Debts, costs, liabilities, expenses or losses incurred or sustained by
Borrower; and (c) Lender shall not be deemed responsible for or a participant in any acts, omissions or decisions of Borrower or its
stockholders, members or partners.

 

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Section
11.8 Time of the Essence. Time is of the essence with respect to this Agreement.

 

Section 11.9
Successors and Assigns. This Agreement shall be binding upon, and shall inure to the benefit of, Lender and Borrower and the respective
successors and assigns of Lender and Borrower, provided that neither Borrower nor any other Borrower Party shall, without the prior consent
of Lender, assign or attempt to assign any rights, duties or obligations hereunder or under any other Loan Document.

 

Section 11.10
Renewal, Extension or Rearrangement. All provisions of the Loan Documents shall apply with equal effect to each and all promissory
notes and amendments thereof hereinafter executed which in whole or in part represent a renewal, extension, increase or rearrangement
of the Loan.

 

Section 11.11
Waivers. NO COURSE OF DEALING ON THE PART OF LENDER, ITS OFFICERS, EMPLOYEES, CONSULTANTS OR
AGENTS, NOR ANY FAILURE OR DELAY BY LENDER WITH RESPECT TO EXERCISING ANY RIGHT, POWER OR PRIVILEGE OF LENDER UNDER ANY OF THE LOAN DOCUMENTS,
SHALL OPERATE AS A WAIVER THEREOF. WITHOUT LIMITING THE FOREGOING, BORROWER ACKNOWLEDGES THAT LENDER SHALL HAVE THE RIGHT TO EXERCISE
ANY OF ITS RIGHTS AND REMEDIES HEREUNDER AND UNDER THE OTHER LOAN DOCUMENTS AT ANY TIME THAT AN EVENT OF DEFAULT HAS OCCURRED, WHETHER
THE SAME SHALL BE MONETARY OR NON-MONETARY IN NATURE. IF LENDER ACCEPTS ANY PAYMENT(S) UNDER THE LOAN DOCUMENTS WITH KNOWLEDGE OF ANY
EVENT OF DEFAULT, THEN SUCH ACCEPTANCE OF PAYMENT(S) SHALL NOT BE DEEMED A WAIVER OF SUCH EVENT OF DEFAULT. LENDER MAY ACCEPT ANY PAYMENT(S)
AND THEREAFTER ENFORCE ITS RIGHTS AND REMEDIES ON ACCOUNT OF ANY EVENT OF DEFAULT THAT OCCURRED BEFORE OR AT THE TIME OF SUCH PAYMENT(S).

 

Section 11.12 Cumulative
Rights. Rights and remedies of Lender under the Loan Documents shall be cumulative, and the exercise or partial exercise of any such
right or remedy shall not preclude the exercise of any other right or remedy.

 

Section
11.13 Singular and Plural. Words used in this Agreement and the other Loan Documents in the singular, where the context so
permits, shall be deemed to include the plural and vice versa. The definitions of words in the singular in this Agreement and the
other Loan Documents shall apply to such words when used in the plural where the context so permits and vice versa.

 

Section 11.14
Phrases. When used in this Agreement and the other Loan Documents, the phrase “including” shall mean “including,
but not limited to” and “including, without limitation,” the phrase “satisfactory to Lender” shall mean
“in form and substance satisfactory to Lender in all respects,” the phrase “with Lender’s consent” or “with
Lender’s approval” shall mean such consent or approval at Lender’s discretion, and the phrase “acceptable to Lender”
shall mean “acceptable to Lender at Lender’s sole discretion.”

 

Section 11.15 Exhibits
and Schedules. The exhibits and schedules attached to this Agreement are incorporated herein and shall be considered a part of this
Agreement for the purposes stated herein.

 

Section
11.16 Titles of Articles, Sections and Subsections. All titles or headings to articles, sections, subsections or other divisions
of this Agreement and the other Loan Documents or the exhibits hereto and thereto are only for the convenience of the parties and
shall not be construed to have any effect or meaning with respect to the other content of such articles, sections, subsections or
other divisions, such other content being controlling as to the agreement between the parties hereto.

 

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Section 11.17
Lender’s Promotional Material. Borrower authorizes Lender to issue press releases, advertisements and other promotional materials
in connection with Lender’s own promotional and marketing activities, and describing the Loan in general terms or in detail and
Lender’s participation in the Loan. All references to Lender contained in any press release, advertisement or promotional material
issued by Borrower shall be approved in writing by Lender in advance of issuance.

 

Section
11.18 Survival. All of the representations, warranties, covenants, and indemnities hereunder (including environmental matters
under Article 4), and under the indemnification provisions of the other Loan Documents shall survive the repayment in
full of the Loan and the release of the Liens evidencing or securing the Loan, and shall survive the Transfer (by sale, foreclosure,
conveyance in lieu of foreclosure or otherwise) of any or all right, title and interest in and to the Project to any party, whether
or not an Affiliate of Borrower.

 

Section
11.19 Waiver of Jury Trial. TO THE MAXIMUM EXTENT PERMITTED BY LEGAL REQUIREMENTS, BORROWER,
ON THE ONE HAND, AND LENDER, ON THE OTHER HAND, HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN) OR ACTION OF EITHER PARTY OR ANY EXERCISE BY ANY PARTY OF
THEIR RESPECTIVE RIGHTS UNDER THE LOAN DOCUMENTS OR IN ANY WAY RELATING TO THE LOAN OR THE PROJECT (INCLUDING, WITHOUT LIMITATION, ANY
ACTION TO RESCIND OR CANCEL THIS AGREEMENT, AND ANY CLAIM OR DEFENSE ASSERTING THAT THIS AGREEMENT WAS FRAUDULENTLY INDUCED OR IS OTHERWISE
VOID OR VOIDABLE). THIS WAIVER IS A MATERIAL INDUCEMENT FOR LENDER TO ENTER THIS AGREEMENT.

 

Section 11.20
Waiver of Punitive or Consequential Damages. NEITHER LENDER NOR BORROWER SHALL BE RESPONSIBLE OR LIABLE TO THE OTHER OR TO ANY
OTHER PERSON FOR ANY PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES WHICH MAY BE ALLEGED AS A RESULT OF THE LOAN OR THE TRANSACTION CONTEMPLATED
HEREBY, INCLUDING ANY BREACH OR OTHER DEFAULT BY ANY PARTY HERETO.

 

Section
11.21 Governing Law/Jurisdiction. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND UNDER THE OTHER LOAN DOCUMENTS SHALL IN ALL RESPECTS BE GOVERNED BY, AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO NEW YORK’S PRINCIPLES
OF CONFLICTS OF LAW). BORROWER AND LENDER HEREBY IRREVOCABLY (I) SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF ANY NEW YORK STATE OR
FEDERAL COURT SITTING IN THE COUNTY OF NEW YORK OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
THE OTHER LOAN DOCUMENTS, (II) WAIVE ANY OBJECTION WHICH IT MAY HAVE AT ANY TIME TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING
BROUGHT IN ANY SUCH COURT, (III) WAIVE ANY CLAIM THAT SUCH PROCEEDINGS OR ACTIONS HAVE BEEN BROUGHT IN AN INCONVENIENT FORUM AND
(IV) WAIVE THE RIGHT TO OBJECT, WITH RESPECT TO SUCH ACTION OR PROCEEDING, THAT SUCH COURT DOES NOT HAVE JURISDICTION OVER SUCH
PARTY. LENDER AND BORROWER HEREBY AGREE AND CONSENT THAT, IN ADDITION TO ANY METHODS OF SERVICE OF PROCESS PROVIDED FOR UNDER
APPLICABLE LAW, ALL SERVICE OF PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY NEW YORK STATE OR FEDERAL COURT SITTING IN THE
COUNTY OF NEW YORK MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO LENDER OR BORROWER, AS
APPLICABLE, AT THE ADDRESS FOR NOTICES PURSUANT TO SECTION 11.1, AND SERVICE SO MADE SHALL BE COMPLETE FIVE (5) DAYS AFTER
THE SAME SHALL HAVE BEEN SO MAILED.

 

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Section 11.22 Entire
Agreement. This Agreement and the other Loan Documents embody the entire agreement and understanding between Lender, on the one hand,
and Borrower and Borrower Parties on the other hand, and supersede all prior agreements and understandings between such parties relating
to the subject matter hereof and thereof. Accordingly, the Loan Documents may not be contradicted by evidence of prior, contemporaneous,
or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties.

 

Section
11.23 Counterparts; Electronic Signatures. This Agreement may be executed in multiple counterparts, each of which shall
constitute an original, but all of which shall constitute one document; provided, however, in making proof of this Agreement, it
shall be unnecessary to produce or account for more than one counterpart to which signatures (acknowledged as applicable) from other
counterparts may be attached. Delivery of an executed counterpart of a signature page of this Agreement or any other Loan Document
by facsimile or electronic image (including, without limitation, “pdf,” “tif” or “jpg” format)
will be effective as a delivery of an original of a manually executed counterpart of this Agreement or such other Loan Document with
the same force and effect as if such facsimile or electronic image signature page was an original thereof. Each party intends to be
bound by any such facsimile and electronic image signatures, is aware that the other party will rely on such signatures, and shall
not raise, and waives, any defense to, the validity, binding nature of, or enforceability of this Agreement or such other Loan
Document based on the form of signature. An original executed counterpart shall be delivered by, or on behalf of, Borrower and
Guarantor to Lender following delivery of the facsimile or electronic image, but the failure to deliver such original executed
counterpart shall not affect the validity, binding nature, or enforceability of this Agreement or such other Loan Document. BORROWER
AND LENDER AGREE THAT ELECTRONIC SIGNATURES OF THE PARTIES, WHETHER DIGITAL OR ENCRYPTED, IF AND AS INCLUDED IN THIS AGREEMENT AND
THE OTHER LOAN DOCUMENTS ARE INTENDED TO AUTHENTICATE THIS WRITING AND TO HAVE THE SAME FORCE AND EFFECT AS MANUAL SIGNATURES.
“ELECTRONIC SIGNATURE” MEANS ANY ELECTRONIC SOUND, SYMBOL OR PROCESS ATTACHED TO OR LOGICALLY ASSOCIATED WITH A RECORD
AND EXECUTED AND ADOPTED BY A PARTY WITH THE INTENT TO SIGN SUCH RECORD, INCLUDING FACSIMILE OR E MAIL ELECTRONIC SIGNATURES.

 

Section 11.24
Waiver of Set-Off. Borrower hereby irrevocably waives the right to assert any counterclaim (except mandatory counterclaims) in any
action or proceeding brought against it by Lender or its respective agents or otherwise to offset any obligation to make the payments
required by the Loan Documents. No failure by Lender to perform any of its obligations hereunder shall be a valid defense to, or result
in any offset against, any payments which Borrower is obligated to make under any of the Loan Documents.

 

    56

     

    

 

Section
11.25 Construction. In this Agreement, unless a contrary intention appears, (1) an amendment includes a supplement, novation,
extension (whether of maturity or otherwise), restatement, reenactment or replacement; (2) assets includes present and future
properties, revenues and rights of every description; (3) an authorization includes an authorization, consent, approval, resolution,
permit, license, exemption, filing, or registration; (3) disposal means a Transfer, whether voluntary or involuntary, and dispose
will be construed accordingly; (4) indebtedness includes any obligation (whether incurred as principal or as surety and whether
present or future, actual or contingent) for the payment or repayment of money; (5) a currency is a reference to the lawful currency
for the time being of the relevant country; (6) a Legal Requirement is a reference to that provision as extended, applied, amended
or reenacted and includes any subordinate legislation; and (7) a time of day is a reference to New York, New York time. Further,
unless the contrary intention appears, a reference to a “month” or “months” is a reference to a period
starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month or the calendar
month in which it is to end, except that: if the numerically corresponding day is not a Business Day, the period will end on the
next Business Day in that month (if there is one) or the preceding Business Day (if there is not); if there is no numerically
corresponding day in that month, that period will end on the last Business Day in that month; a period which commences on the last
Business Day of a month will end on the last Business Day in the next month or the calendar month in which it is to end, as
appropriate. Unless the contrary intention appears: a reference to a party will not include that party if it has ceased to be a
party under this Agreement; a word or expression used in any other Loan Document or in any notice given in connection with any Loan
Document has the same meaning in that Loan Document or notice as in this Agreement; and any obligation of Borrower or any Guarantor
under the Loan Documents which is not a payment obligation remains in force for so long as any payment obligation of Borrower or any
Guarantor may be or is capable of becoming outstanding under the Loan Documents.

 

Section
11.26 Use of Websites. Except as provided below, Borrower may deliver any information under this Agreement to Lender by posting
it on to an electronic website if (a) Lender agrees in writing; (b) Borrower and Lender designate an electronic website for this
purpose; (c) Borrower notifies Lender of the address of and password for the website; and (d) the information posted is in a format
agreed between Borrower and Lender. Notwithstanding the above, Borrower must supply to Lender in paper form a copy of any
information posted on the website within ten (10) Business Days of request by Lender. Borrower shall promptly upon becoming aware of
its occurrence, notify Lender if the website cannot be accessed; the website or any information on the website is infected by any
electronic virus or similar software; the password for the website is changed; or any information to be supplied under this
Agreement is posted on the website or amended after being posted. If the circumstances in the immediately preceding sentence occur,
Borrower shall supply any information required under this Agreement in paper form until Lender is satisfied that the circumstances
giving rise to the notification are no longer continuing.

 

Section 11.27
Language. Any notice or other writing given in connection with a Loan Document must be in English.

 

Section 11.28
Joint and Several Obligations. If Borrower consists of more than one Person, the obligations and liabilities of each such Person shall
be joint and several.

 

Section 11.29 Electronic
Imaging. Lender may create electronic images of this Agreement and the other Loan Documents and destroy paper originals of any such
imaged documents, each without the consent of Borrower or Guarantor. Provided that such images are maintained by or on behalf of Lender
as part of its normal business processes, such images have the same legal force and effect as the paper originals and are enforceable
against each of Borrower and Guarantor. Further, Lender may convert this Agreement or any other Loan Document into an “Electronic
record” within the meaning of the ESRA and the image of such instrument in Lender’s possession shall be deemed the unique,
identifiable and unalterable version of such record. As used herein “ESRA” shall mean the Electronic Signatures
and Records Act, N.Y. Comp. Codes R. & Regs. Tit 9 Part 540, as amended from time to time.

 

    57

     

    

 

ARTICLE 12

 

LIMITATIONS
ON LIABILITY

 

Section 12.1
Limitation on Liability. Borrower shall be personally liable for amounts due under the Loan Documents.

 

Section 12.2
Limitation on Liability of Lender and its Officers, Employees, etc. Any obligation or liability whatsoever of Lender which may arise
at any time under this Agreement or any other Loan Document shall be satisfied, if at all, out of Lender’s assets only. No such
obligation or liability shall be personally binding upon, nor shall resort for the enforcement thereof be had to, the property of Lender’s,
Lender’s affiliates or their respective shareholders, directors, officers, employees attorneys, agents, advisors, participants,
successors and assigns regardless of whether such obligation or liability is in the nature of contract, tort or otherwise.

 

Section 12.3 Claims Against Lender.

 

(a) Lender
shall not be in default under this Agreement, or under any other Loan Document, unless a written notice specifically setting forth
the claim of Borrower shall have been given to Lender within one hundred eighty (180) days after Borrower first had actual knowledge
or actual notice of the occurrence of the event which Borrower alleges gave rise to such claim and Lender fails to remedy or cure
the default, if any there be, with reasonable promptness thereafter.

 

(b)
If it is determined by the final order of a court of competent jurisdiction, which is not subject to further appeal, that Lender has
breached any of its obligations under the Loan Documents and has not remedied or cured the same with reasonable promptness following
notice thereof, then Lender’s responsibilities shall be limited to: (i) where the breach consists of the failure to grant consent
or give approval in violation of the terms and requirements of the Loan Documents, the obligation to grant such consent or give such
approval; and (ii) in the case of any such failure to grant such consent or give such approval, or in the case of any other default by
Lender, where it is also determined that Lender acted in bad faith, or Lender’s default constituted gross negligence or willful
misconduct, the payment of any actual direct, compensatory damages sustained by Borrower as a result thereof plus Borrower’s reasonable
costs and expenses, including, without limitation, reasonable attorneys’ fees and disbursements in connection with such court proceedings.

 

(c) In
no event, however, Lender shall not be liable to Borrower or anyone else for other damages such as, but not limited to, indirect,
speculative or punitive damages whatever the nature of the breach by Lender of its obligations under this Loan Agreement or under
any of the other Loan Documents. In no event shall Lender be liable to Borrower or anyone else unless a written notice specifically
setting forth the claim of Borrower shall have been given to Lender within the time period specified above.

 

(d) Borrower
agrees that so long as any of the Obligations remains outstanding, Borrower shall not assert, and Borrower hereby waives, any right
of offset, claim, counterclaim or defense against Lender or any of the Obligations, which right of offset, claim, counterclaim or
defense arises out of obligations, liabilities or circumstances unrelated to the Obligations, the Loan or the Project (such offsets,
claims, counterclaims or defenses being, collectively, “Unrelated Claims”). Any assignee of Lender’s
interest in and to the Loan Documents shall take the same free and clear of all Unrelated Claims, and no Unrelated Claim shall be
interposed or asserted by Borrower in any action or proceeding brought by any such assignee upon any of the Loan Documents, and any
such right to interpose or assert any such Unrelated Claim in any such action or proceeding is hereby expressly waived by the
Borrower for the benefit of such assignee.

 

    58

     

    

 

ARTICLE 13

 

SANCTIONS, ANTI-MONEY LAUNDERING AND ANTI-BRIBERY
PROVISIONS

 

Section 13.1 Sanctions. Borrower represents
and warrants to Lender that:

 

(a)
No Loan Party, nor its Affiliates, employees, beneficial owners or control person, agents, affiliates or subsidiaries is a Sanctioned
Party, the subject of Sanctions or in violation of Sanctions;

 

(b)
Each Loan Party has policies and procedures reasonably designed to comply with Sanctions; and

 

(c)
None of the funds or other assets of Borrower or, to Borrower’s knowledge, of any Affiliate or subsidiary of Borrower constitute
property or assets of, or are beneficially owned or controlled, directly or indirectly, by, any Sanctioned Party, or any party who is
the subject of Sanctions or located in or resident of a Sanctioned Country.

 

Section 13.2 Anti-Money Laundering
Laws and Anti-Bribery Laws. Borrower represents and warrants to Lender that:

 

(a)
Each Loan Party is in compliance with Anti-Money Laundering Laws and has policies and procedures reasonably designed to comply
with Anti-Money Laundering Laws.

 

(b)
Each Loan Party is in compliance with Anti-Bribery Laws and has policies and procedures reasonably designed to comply with Anti-Bribery
Laws. Each Loan Party represents and warrants that, in connection with this transaction, it will not offer, promise to pay, authorize
the payment or giving of, or receipt of, anything of value to, for or from any Public Official, or any other party, in violation of Anti-Bribery
Laws.

 

Section 13.3 Use of Proceeds.

 

(a)
No part of the proceeds of the Loan will be used, either directly or indirectly, to fund any operations in, finance any investments
or activities in, or make any payments to or for, either directly or indirectly, (i) any Sanctioned Party or in violation of Sanctions,
(ii) in violation of Anti-Money Laundering Laws, or (iii) in violation of Anti-Bribery Laws.

 

(b)
No part of the proceeds of the Loan will be used, directly or indirectly, in furtherance of an offer, payment, promise to pay,
or authorization of the payment or giving of money, or anything else of value, to any party, either directly or directly, in violation
of the Anti-Bribery Laws.

 

Section 13.4 Certain Transfers.

 

(a)
Anything to the contrary contained in this Agreement or the other Loan Documents notwithstanding, in no event shall a Transfer (i)
to a Sanctioned Party occur if the result of a Sanctioned Party holding any direct or indirect interest in Borrower (at any level)
is that Lender Exposure could occur, or (ii) be made or suffered to occur if, as a result of such Transfer, there could result a
violation of (A) the U.S. Federal Lender Secrecy Act, as amended, modified, replaced and/or supplemented from time to time, and its
implementing rules and/or regulations (31 CFR part 103), including, without limitation, with respect to those Persons named on
OFAC’s Specially Designated Nationals and Blocked Persons list, (B) the Patriot Act, (C) any order issued with respect to
anti-money laundering by OFAC, (D) the Executive Order or (E) any other Legal Requirements which, or the subject matter of which,
relates to matters similar to those matters which are addressed by the Legal Requirements referred to in clauses (A) through (D)
above if, with respect to clauses (A), (B), (C), (D) or (E), Lender Exposure could occur.

 

(b)
If requested by Lender in connection with any Transfer, Borrower shall certify to Lender that, as a result of such Transfer, there
will be no violation of this Article 13.

 

    59

     

    

 

ARTICLE
14

 

CONDOMINIUM REGIME

 

Section 14.1 Condominium Representations.

 

(a)
Condominium Declaration. Borrower hereby represents and warrants to Lender that (i) Cedar-Trexler, LLC, a Delaware limited
liability company is the sole owner of all of the Units (as defined in the Condominium Declaration), Common Elements (as defined in the
Condominium Declaration), Limited Common Elements (as defined in the Condominium Declaration) and other real property subject to the
Condominium Declaration, (ii) Borrower is the sole Declarant (as defined in the Condominium Declaration) under the Condominium Declaration,
(iii)  the Association (as defined in the Condominium Declaration) has never been formed and there is no condominium association
or other homeowner’s association in existence as of the date hereof, (iv)   as of the date hereof, Borrower, as the holder
of the Declarant rights, is not aware of any violation of the covenants, conditions, restrictions, rules and regulations set forth in
the Condominium Declaration, and (v) the assessment regime set forth in the Condominium Declaration has not been established or imposed
and, as of the date hereof, there are no assessments due and owing under the Condominium Declaration. 

 

Section
14.2 Condominium Covenants. Notwithstanding anything to the contrary herein:

 

(a)
Borrower will not in any respect modify, amend, restate, waive, release or otherwise alter any provision of, or terminate or cancel,
the Condominium Documents without the prior written approval of Lender.

 

(b)
Borrower will not change or alter the presently anticipated use of the Project from retail space, nor market and sell the
Condominium Units, or any portion thereof, without the prior written consent of Lender.

 

(c)
Borrower shall not, without Lender’s prior written consent (and Borrower hereby assigns to Lender any right it may have) to
(i) take any action to activate or establish the condominium regime, form or establish the Association; or (ii) assign (other than
to Lender) or encumber (other than in favor of Lender as security for the Debt) any of its rights under the Condominium Declaration
or related documents.

 

(d)
Borrower shall not, without Lender’s prior written consent, exercise any right it may have to vote (i) for any additions or
improvements to the common elements of the condominium regime; (ii) for any borrowing on behalf of the condominium regime; or (iii)
in connection with the repair or restoration of the Improvements or the expenditure of any insurance proceeds or condemnation awards
for any such repair or restoration other than in accordance with the terms of this Agreement.

 

(e)
Borrower shall not, except with the prior written consent of Lender (i) institute any action or proceeding for partition of the
Project; or (ii) vote for or consent to any modification of, amendment to or relaxation in the enforcement of any provision of the
Condominium Declaration which affects, alters or impairs the lien of the applicable Mortgage or the security therefor, or which
materially increases the obligations or diminishes the rights of Lender.

 

(f)
In each and every case in which, under the provisions of the Condominium Declaration, the consent or the vote of the Unit Owners (as
defined in the Condominium Declaration) is required, Borrower shall not vote or give such consent so as to impair the lien of the
applicable Mortgage or the security therefor without, in each and every case, the prior written consent of Lender.

 

(g)
In the event any assessments become due and payable under the Condominium Declaration, Borrower shall promptly pay, as the same
become due and payable, all such assessments as required by the Condominium Declaration and the Rules and Regulations (as defined in
the Condominium Declaration) or any resolutions adopted pursuant thereto, and shall promptly upon demand provide to Lender receipts
for all such payments. In the event that Borrower fails to make such payments as the same become due and payable, Lender may from
time to time at its option, but without any obligation to do so and without notice to or demand upon Borrower, make such payments,
and the same shall be added to the Debt, and shall bear interest until repaid at the Default Rate; provided, however, that the
failure of the Borrower to make any such payment (which is not cured within any applicable notice and cure period under the
Condominium Declaration) or to exhibit such receipts within five (5) Business Days of Lender’s demand shall, at the election
of Lender constitute an Event of Default.

 

(h)
In the event of the failure of Borrower to perform any of its obligations relating to the Project under the Condominium Declaration
within a period of ten (10) days (unless the Condominium Declaration requires sooner performance) after notice thereof, or in the
case of any such default which cannot with due diligence be cured or remedied within such period, if Borrower fails to proceed
promptly after such notice to cure or remedy the same with due diligence, then in any such case, Lender may from time to time at its
option, but without any obligation to do so, cure or remedy any such default of Borrower (Borrower hereby authorizing Lender to
enter upon the Project as may be necessary for such purposes), and all sums expended by Lender for such purposes, including
reasonable counsel fees, shall be added to the Debt; provided, however, that the failure of Borrower to keep or perform any such
obligations within the applicable period after notice, or, in the case in which such cannot be kept or performed within the
applicable period, provided Borrower has commenced to cure such default and is diligently pursuing same to completion, such
additional time as is needed to so complete, shall, at the election of Lender, constitute an Event of Default.

 

[signature pages follow]

 

    60

     

    

 

EXECUTED as of the date first written above.

 

BORROWER:

 

CEDAR BRICKYARD, LLC, a Delaware limited liability
company

CEDAR BRICKYARD II, LLC, a Delaware limited
liability company

CEDAR-FAIRVIEW COMMONS, LLC, a Delaware limited
liability company

CEDAR-GOLD STAR PLAZA, LLC, a Delaware limited
liability company

CEDAR GOLDEN TRIANGLE, LLC, a Delaware limited
liability company

CEDAR HAMBURG, LLC, a Delaware limited liability
company

PINE GROVE PLAZA ASSOCIATES, LLC, a Delaware
limited liability company

CEDAR SOUTHINGTON PLAZA, LLC, a Delaware limited
liability company

CEDAR-TREXLER, LLC, a Delaware limited liability
company

WASHINGTON CENTER L.L.C. 1, a Delaware limited
liability company

GREENTREE ROAD L.L.C. 1, a Delaware limited
liability company

CEDAR-PC PLAZA, LLC, a Delaware limited liability
company

CEDAR-PC ANNEX, LLC, a Delaware limited liability
company

 

	By:	/s/ M. Andrew Franklin	 
	Name: 	M. Andrew Franklin	 
	Title:	Authorized Signatory	 

 

     

     

    

 

	LENDER:	 
	 	 
	GUGGENHEIM REAL ESTATE, LLC,	 
	a Delaware limited liability company 	 
	 	 	 
	By:	/s/ Jennifer A. Marler	 
	 	Jennifer A. Marler, Attorney-In-FactEX-10.11

  EXHIBIT 10.11

  Dated 5 April 2022

  Amendment and Restatement Agreement

  in respect of the Original Bond Agreement

  by

  Renalytix plc

  with

  CVI Investments, Inc.

  as Initial Bondholder

   

   

   

  White & Case LLP

  5 Old Broad Street

  London EC2N 1DW

   

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  Table of Contents

   

  1.	Definitions and Interpretation	2

  2.	Amendment and Restatement	2

  3.	Further Assurance	3

  4.	Notices	3

  5.	Severability	3

  6.	Counterparts	3

  7.	Contracts (Rights of Third Parties) Act 1999	3

  8.	Governing Law and Jurisdiction	3

  ANNEX 1 - Form of Amended and Restated Bond Agreement	7

   

   

   

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  This Agreement is made on 5 April 2022

  Between:

  (1)	RENALYTIX PLC, a company incorporated as a public limited company under the laws of England (the “Company” or the “Issuer”); and

  (2)	CVI INVESTMENTS INC., a Cayman Islands exempted company (the “Initial Bondholder”),

  (each a “Party” and together the “Parties”).

  Whereas:

  (A)	The Company and the Initial Bondholder entered into a bond agreement dated 31 March 2022 (the “Original Bond Agreement”).

  (B)	The Parties are entering into this Agreement in order to amend and restate the Bond Agreement.

  It is agreed as follows:

  1.Definitions and Interpretation

  1.1Definitions

  In this Agreement, the term:

  “Amended and Restated Bond Agreement” means the Original Bond Agreement as amended and restated by this Agreement in the form set out in Annex 1 (Form of Amended and Restated Bond Agreement).

  “Original Bond Agreement” has the meaning given to it in Recital (A).

  Terms defined in the Amended and Restated Bond Agreement shall have the same meaning herein, unless otherwise defined herein or the context otherwise requires.

  1.2Construction

  The principles of construction set out in clause 1.2 (Construction) of the Amended and Restated Bond Agreement shall have effect as if set out in this Agreement, mutatis mutandis.

  2.Amendment and Restatement

  With effect at and from the date of this Agreement, each of the Parties hereto consents and agrees that the Original Bond Agreement will be amended and restated in its entirety so that it reads and is construed for all purposes as set out in Annex 1 (Form of Amended and Restated Bond Agreement). Save as amended by this Agreement, the provisions of the Original Bond Agreement, the obligations of the parties and all the rights of the Company and the Initial Bondholder thereunder shall continue in full force and effect and this Agreement and the Amended and Restated Bond Agreement shall be read and construed as one instrument.

   

   

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  3.Further Assurance

  Each Party shall promptly, at the request of the other Party (acting reasonably) and at its own expense, do all such acts and things necessary or desirable to give effect to the amendments effected or to be effected pursuant to this Agreement.

  4.Notices

  The provisions of clause 13 (Notices) of the Original Bond Agreement shall be incorporated into this Agreement as if set out in full in this Agreement and as if references therein to “this Agreement” were references to this Agreement.

  5.Severability

  If any provision in or obligation under this Agreement is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction, that will not affect or impair (i) the validity, legality or enforceability under the law of that jurisdiction of any other provision in or obligation under this Agreement, and (ii) the validity, legality or enforceability under the law of any other jurisdiction of that or any other provision in or obligation under this Agreement.

  6.Counterparts

  This Agreement may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

  7.Contracts (Rights of Third Parties) Act 1999

  A Person who is not a Party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Agreement, but this does not affect any right or remedy of a third Party which exists or is available apart from that Act.

  8.Governing Law and Jurisdiction

  This Agreement and any non-contractual obligations arising out of or in connection with it, shall be governed by, and construed in accordance with, English law. The provisions of clause 21.2 (Jurisdiction) of the Original Bond Agreement shall apply to this Agreement as if the same were repeated in full herein, mutatis mutandis.

   

  3

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  This Agreement has been entered into on the date stated at the beginning.

  RENALYTIX PLC

  			
	as Company
	 
	 

	 
	By: /s/ James McCullough

	 
	Name: James McCullough

	 
	Title: CEO

   

  (Signature Page to the Amendment and Restatement Agreement)

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  CVI INVESTMENTS, INC.

  			
	as Initial Bondholder acting by Heights Capital Management, Inc., its authorised agent
	 
	  

	  
	By: /s/ Martin Kobinger

	  
	Name: Martin Kobinger 

	  
	Title: President

   

   

  (Signature Page to the Amendment and Restatement Agreement)

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  ANNEX 1 - Form of Amended and Restated Bond Agreement

  [Begins on the following page]

   

  7

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  Amended and Restated Bond Agreement

  in respect of the commitment to purchase and the issuance of
U.S.$21,200,000 Amortising Senior Convertible Bonds due 2027

  by

  Renalytix plc

  with

  CVI Investments, Inc.

  as Initial Bondholder

   

   

   

   

  White & Case LLP

  5 Old Broad Street

  London EC2N 1DW

   

   

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  Table of Contents

  Page

  1.	Definitions and Interpretation	1

  2.	The Bonds	5

  3.	Issue and Subscription	6

  4.	Completion and Settlement	6

  5.	Register and Title	8

  6.	Indemnity	10

  7.	Costs and Expenses	12

  8.	Representations of the Company	12

  9.	Representations of the Initial Bondholder	21

  10.	Undertakings by the Company	23

  11.	Transfers of Rights and Obligations	24

  12.	Undertaking of Bondholders	25

  13.	Notices	26

  14.	Confidential Information	28

  15.	Payments	29

  16.	Severability	29

  17.	Remedies and Waivers	29

  18.	Amendments and Waivers	29

  19.	Counterparts	30

  20.	Contracts (Rights of Third Parties) Act 1999	30

  21.	Governing Law and Jurisdiction	30

  Schedule 1	Subscription Allocation	31

  Schedule 2	Conditions Precedent	32

  Schedule 3	Form of Bond Certificate	33

  Schedule 4	Terms and Conditions of the Bonds	34

  Schedule 5	Form of Transfer and Accession Deed	103

  Schedule 6	Form of Register	105

  Schedule 7	Regulations Concerning Transfers and Registration of the Bonds	106

   

  (i)

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  This Agreement was made on 31 March 2022 and is amended and restated on 5 April 2022

  Between:

  (1)	RENALYTIX PLC, a company incorporated as a public limited company under the laws of England (the “Company” or the “Issuer”); and

  (2)	CVI INVESTMENTS INC., a Cayman Islands exempted company (the “Initial Bondholder”),

  (each a “Party” and together the “Parties”).

  Whereas:

  (A)	The Company has authorised the creation and issue of U.S.$21,200,000 amortising senior convertible bonds due 2027 (the “Bonds”) to be constituted by this Agreement and subject to the Conditions (as defined below).

  (B)	Subject to the provisions of the Conditions, the Bonds will be convertible into American Depositary Shares (“ADSs”) each as at the Closing Date representing two ordinary shares of £0.0025 each in the share capital of the Company (the “Ordinary Shares”) at an initial conversion price of U.S.$8.70 per ADS (being the sum of a reference price of U.S.$7.25 per ADS plus a 20 per cent. conversion premium), subject to adjustment in accordance with the Conditions.

  (C)	Prior to or substantially concurrently with the issue of the Bonds, the Company shall offer and sell pursuant to a private sale between the Company and prospective investors: ADSs representing newly issued Ordinary Shares, newly issued Ordinary Shares or a combination of such ADSs and newly issued Ordinary Shares; (the “Equity Raise Securities” and which such expression shall include any underlying securities represented by any such ADS), with the issue and placing price of such ADSs being not less than U.S.$6.00 (and the issue and placing price of any such Ordinary Shares (if any) corresponding to the same price) and resulting in no less than U.S.$7,000,000 in gross proceeds for the Company (the “Equity Raise”).

  (D)	The Parties hereto wish to record the arrangements agreed between them in relation to the commitment to purchase the Bonds by the Initial Bondholder and the issue of the Bonds by the Company.

  It is agreed as follows:

  1.Definitions and Interpretation

  1.1.Definitions

  In this Agreement, the following terms shall have the following meanings (and terms used and not defined in the Recitals above or in this Clause 1.1, and which are defined in the Conditions, shall have the meanings given in the Conditions):

  “ADSs” has the meaning given to it in Recital (B).

  “affiliate” has the meaning given to it in Rule 501(b) of Regulation D under the Securities Act.

  1

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  “Anti-Bribery and Anti-Corruption Laws” has the meaning given in Clause 8(u) (Representations of the Company).

   

  2

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  “Authorisation” means an authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or registration.

  “Bond Certificates” means a Bond certificate in or in substantially the form set out in Schedule 3 (Form of Bond Certificate) including any replacement Bond Certificate issued pursuant to Clause 5.6 (Replacement of Bonds).

  “Bond Documents” means this Agreement (including the Conditions), the Calculation Agency Agreement and each Bond Certificate.

  “Bondholder” means in respect of a Bond, the person in whose name such Bond is for the time being registered in the Register, being, at the Closing Date, the Initial Bondholder.

  “Bonds” has the meaning given to it in Recital (A).

  “Business Day” means a day (other than a Saturday or Sunday) on which banks are open for general business in London and New York.

  “Calculation Agency Agreement” means the calculation agency agreement to be entered into not later than the Closing Date between the Company and the Calculation Agent.

  “Calculation Agent” means Conv-Ex Advisors Limited.

  “Closing” means the closing of the issue of the Bonds to the Initial Bondholder.

  “Closing Date” means the date falling on the fourth Business Day after the occurrence of the Pricing Date, except if the receipt of the monies specified in Clause 4.2(b) (Closing Procedure) by the Company shall not occur on such date, in which case it shall be the date falling on the fifth Business Day after the occurrence of the Pricing Date, or such other date as may be agreed in writing between the Parties, in their absolute discretion.

  “Conditions” means the terms and conditions of the Bonds in Schedule 4 (Terms and Conditions of the Bonds) hereto.

  “Confidential Information” has the meaning given in Clause 14.1 (Confidentiality).

  “Conversion Notice” means a notice (which shall be irrevocable) delivered by (and signed by an authorised signatory of) a Bondholder to the Company, stating the Bondholder is electing to exercise its Conversion Rights (as defined in the Conditions) with respect to certain Bonds, and specifying:

  (a)the relevant principal amount of Bonds (and related Bond Certificate number) the subject of such exercise;

  (b)confirming the relevant Payment Details (as defined in the Conditions) for the delivery of ADSs and US Dollar bank account details for the payment of cash, in relation to such exercise of Conversion Rights;

  (c)confirming the Bonds which are the subject of such notice are free from all liens, charges and encumbrances or any other third party rights; and

  (d)confirming any third party nominee to whose account the ADSs are to be delivered, if applicable, have consented to the same.

  3

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  “Default” means an Event of Default or any event or circumstance specified in Condition 10 (Events of Default) which would (with the expiry of a grace period, the giving of notice, the making of any determination under the Bond Documents or any combination of any of the foregoing) be an Event of Default.

  “Equity Raise” has the meaning given to it in Recital (C).

  “Equity Raise Securities” has the meaning given to it in Recital (C).

  “EUWA” means the European Union (Withdrawal) Act 2018.

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

  “Existing Holder” has the meaning given to it in Clause 11.2 (Permitted Transfers).

  “FSMA” means the Financial Services and Markets Act 2000.

  “Governmental Authority” means the government of any nation, or of any political subdivision thereof, whether state, regional or local, and any agency, authority, branch, department, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government or any subdivision thereof (including any supra-national bodies).

  “Group” means the Company and its consolidated Subsidiaries from time to time taken as a whole and references to a member of the Group means any of the Company or any of its consolidated Subsidiaries from time to time.

  “IFRS” means International Financial Reporting Standards issued by the International Accounting Standards Board (IASB) and interpretations issued by the International Reporting Interpretations Committee of the IASB (as amended, supplemented or re-issued from time to time).

  “Indemnified Person” has the meaning given to it in Clause 6.1 (Indemnity).

  “Initial Bondholder’s Solicitors” means White & Case LLP, a limited liability partnership organised and existing under the laws of England with its registered office at 5 Old Broad Street, London EC2N 1DW, United Kingdom.

  “Intellectual Property Rights” means, collectively, trademarks, trade names and other rights to inventions, know-how, patents, copyrights, confidential information and other intellectual property.

  “Issue Price” means, in respect of the Initial Bondholder, [***] of the principal amount of Bonds to be subscribed by such Initial Bondholder.

  “Licences” has the meaning given to it in Clause 8(l) (Representations of the Company).

  “Longstop Time” means 10:00 a.m. London time on 7 April 2022, or any later date, if so agreed in writing between the Parties, in their absolute discretion.

  “Material Adverse Effect” means, (a) (solely in respect of the period commencing from the date hereof up to the time of pricing on the Pricing Date) with respect to the Company and 
each member of the Group: (i) it is in breach of the terms of, or in default under, any 
instrument, agreement or order to which it is a party or by which it or its property is bound 
or an event has occurred which with the giving of notice or lapse of time or other condition would constitute a default under any such instrument, agreement or order, except for any 
 

  4

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  such breach or default which either individually or in the aggregate would not reasonably be expected to be material in the context of the issue and offering of the Bonds; or (ii) it is 
engaged (whether as defendant or otherwise) in, or the Company has knowledge of the existence of, or any threat of, any legal, arbitration, administrative, governmental or other proceedings an adverse result of which would reasonably be expected to be material in the context of the issue and offering of the Bonds, or (iii) it has taken any action or any steps have been taken or legal proceedings commenced for the winding up or dissolution of the Company or any member of the Group, or (b) any adverse change or any development or event, in each case when compared to the position which had been publicly disclosed by the Company immediately prior to this Agreement, which could be reasonably expected to, individually or in aggregate, result in a change which is materially adverse to the condition (financial or otherwise), prospects, business, results of operations, or properties of the Group as a whole or (c) any development of which the Company is, or might reasonably be expected to be, aware that could be reasonably expected to materially adversely affect the ability of the Company to perform its obligations under the Bond Documents or the Bonds.

  “Money Laundering Laws” has the meaning given in Clause 8(w) (Representations of the Company).

  “Ordinary Shares” has the meaning given to it in Recital (B).

  “Pricing Date” means the date on which the purchase price of the Equity Raise Securities in the Equity Raise is announced by the Company, which shall not occur later than the Longstop Time.

  “Prohibited Payment” has the meaning given in Clause 8(u) (Representations of the Company).

  “Public Statements” means any information in any press release or announcement by or on behalf of the Company or any member of the Group, whether such information was required to be made public by applicable law and regulation (including, but not limited to, all filings required by the relevant Stock Exchange and/or English law) or otherwise, on or after 30 June 2021.

  “Register” means the register of Bonds maintained by the Company in or substantially in the form set out in Schedule 6 (Form of Register).

  “Regulation S” means Regulation S under the Securities Act.

  “Related Parties” has the meaning given to it in Clause 6.1 (Indemnity).

  “Sanctions” means any sanctions administered by the Office of Foreign Assets Control of the U.S. Department of Treasury, the U.S. State Department, any other agency of the U.S. government, the United Nations, the European Union or the United Kingdom.

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

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

  “Stock Exchange” means, in the case of ADSs in issue or to be issued by the Company, the Nasdaq Global Market, and in the case of Ordinary Shares of the Company, the AIM market operated by the London Stock Exchange plc, in each case as the context may require.

  5

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  “Subsidiary” means a subsidiary undertaking within the meaning of section 1162 of the Companies Act 2006 as if the words “is a member of the undertaking and” had been deleted from subsections 1162(2)(b) and (d).

  “Term Sheet” means the term sheet in respect of the Bonds dated 27 March 2022 between the Company and the Initial Bondholder.

  “Transfer and Accession Deed” means a deed substantially in the form set out in Schedule 5 (Form of Transfer and Accession Deed) or any other form agreed between the Issuer, the relevant Existing Holder and the New Holder.

  “£” and “Sterling” means the lawful currency of the United Kingdom.

  “U.S. Dollars” or “U.S.$” means the lawful currency of the United States of America.

  1.2.Construction

  (a)Unless a contrary indication appears, any reference in this Agreement to:

  (i)the “Initial Bondholder”, any “Bondholder” or any “Party” shall be construed so as to include its successors in title, permitted assigns and permitted transferees to, or of, its rights and/or obligations under the Bond Documents;

  (ii)“assets” includes present and future properties, revenues and rights of every description;

  (iii)a “Bond Document” or any other agreement or instrument is a reference to that Bond Document or other agreement or instrument as amended, novated, supplemented, extended or restated;

  (iv)a “Person” includes any individual, firm, company, corporation, government, state or agency of a state or any association, trust, joint venture, consortium, partnership or other entity (whether or not having separate legal personality);

  (v)a “regulation” includes any regulation, rule, official directive, or official guidance of any governmental, intergovernmental or supranational body, agency, department or of any regulatory, self-regulatory or other Governmental Authority;

  (vi)a provision of law is a reference to that provision as amended or re-enacted from time to time; and

  (vii)a time of day is a reference to London time.

  (b)Time shall be of the essence in this Agreement.

  (c)Headings and the table of contents are for ease of reference only and shall not affect the construction of this Agreement.

  (d)Any reference in this Agreement to a Clause or a Schedule is, unless otherwise stated, to a Clause or a Schedule hereof. The Schedules form an integral part of this Agreement.

  6

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  2.The Bonds

  2.1.Constitution of the Bonds

  On and from the Closing Date, the Company constitutes the Bonds and covenants in favour 
of each Bondholder that it will duly perform and comply with the obligations expressed to 
be undertaken by it in this Agreement, in each Bond Certificate and in the Conditions (and 
for this purpose any reference in the Conditions to any obligation or payment under or in 
respect of the Bonds shall be construed to include a reference to any obligation or payment under or pursuant to this provision).

  2.2.Benefit

  This Agreement shall enure to the benefit of each Bondholder and each of their (and any subsequent) successors and assigns, each of which shall be entitled severally to enforce this Agreement against the Company.

  3.Issue and Subscription

  3.1.Undertaking to Issue

  With effect from the date of this Agreement, and subject to:

  (a)the occurrence of the Pricing Date; and

  (b)the ADSs and Ordinary Shares being issued in accordance with the terms of the Equity Raise (and the relevant subscription monies being received by the Company in connection therewith) prior to or on the Closing Date,

  the Company undertakes to the Initial Bondholder that, subject to and in accordance with the terms and conditions of this Agreement, the Company will: (x) issue Bonds in the principal amount specified opposite the Initial Bondholder’s name in Schedule 1 (Subscription Allocation) on the Closing Date, in accordance with the provisions of this Agreement, and (y) execute the Calculation Agency Agreement, the Bond Certificate in respect of the Initial Bondholder and such other documents necessary for the issuance of the Bonds and the consummation of the transaction contemplated hereby.

  3.2.Undertaking to Subscribe

  With effect from the date of this Agreement, subject to:

  (a)the occurrence of the Pricing Date; and

  (b)the ADSs and Ordinary Shares being issued in accordance with the terms of the Equity Raise (and the relevant subscription monies being received by the Company in connection therewith) prior to or on the Closing Date,

  the Initial Bondholder undertakes to the Company that, subject to and in accordance with the terms and conditions of this Agreement, it will subscribe for Bonds in the principal amount specified opposite the Initial Bondholder’s name in Schedule 1 (Subscription Allocation) on the Closing Date at the Issue Price (less the Initial Bondholder’s permitted expenses pursuant to the Term Sheet).

  7

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  4.Completion and Settlement

  4.1.Conditions Precedent to Closing

  (a)The Initial Bondholder will only be obliged to subscribe for Bonds if:

  (i)within a reasonable time prior to the Closing, the Initial Bondholder has received all of the documents and other evidence listed in Schedule 2 (Conditions Precedent) in form and substance reasonably satisfactory to it (in its absolute discretion);

  (ii)on each of the date hereof and on the Closing Date (A) the representations and warranties of the Company in this Agreement being true, accurate and correct at, and as if made on, such date, (B) the Company having performed all of its obligations under this Agreement to be performed on or before such date and on the Closing Date, and (C) there being no material breach of any of the obligations of the Company under this Agreement;

  (iii)on the Closing Date, no Default is continuing or would result from the issue of the Bonds;

  (iv)there has been no Material Adverse Effect;

  (v)in the Initial Bondholder’s good faith opinion, since the date of this 
Agreement there has been no adverse change in the financial markets in the United Kingdom, the United States, the Cayman Islands, the European Economic Area or the international financial markets, any outbreak of hostilities or escalation thereof, any act of terrorism or war or any 
declaration of emergency or martial law or other calamity or crisis (including without limitation, a material escalation in any pandemic on or after the date of this Agreement) nor any change or development involving a prospective change in national or international political, financial or economic conditions, currency exchange rates or exchange controls, whether or not foreseeable at the date of this Agreement, which would reasonably be considered material in the context of the issue of the Bonds and the purchase thereof by the Initial Bondholder;

  (vi)prior to the Closing, the Company has received gross proceeds of at least U.S.$7,000,000 in respect of the Equity Raise; and

  (vii)on or prior to the Closing, the Initial Bondholder’s Solicitors have received 
the documents listed in Clause 4.2(a)(ii) to be held in escrow pending 
Closing.

  (b)The Initial Bondholder shall notify the Company promptly upon receipt of all of the documents and other evidence listed in Schedule 2 (Conditions Precedent) in form and substance satisfactory to it.

  (c)The Initial Bondholder may, in its absolute discretion and upon such terms as it thinks fit, waive compliance with the whole or any part of this Clause 4.1 (Conditions Precedent to Closing).

  (d)If, on the Closing Date, any of the conditions precedent referenced in Clause 4.1(a) have not been satisfied, nor waived as provided in Clause 4.1(c), then the Initial 

  8

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  Bondholder shall, at its election, be relieved of all its obligations under Clause 3.2 (Undertaking to Subscribe) to subscribe for the Bonds under this Agreement.

  (e)An election by the Initial Bondholder under Clause 4.1(d) above shall not operate as a waiver of any rights the Initial Bondholder may have by reason of such failure or such non-fulfilment.

  4.2.Closing Procedure

  (a)By no later than the Closing Date:

  (i)subject to receipt of payment instructions of the Initial Bondholder in accordance with Clause 4.2(b) below, the Company shall make (or shall procure the making of) the appropriate entry in the Register showing the Initial Bondholder as the registered owner of the principal amount of Bonds set out against its name in Schedule 1 (Subscription Allocation);

  (ii)the Company shall issue and deliver to the Initial Bondholder’s Solicitors:

  (A)the initial Bond Certificate dated the Closing Date; and

  (B)a certified excerpt of the Register updated to reflect the entry referred to in paragraph (i) above,

  such documents to be held in escrow to the Company’s order until such time as they are deemed to be released pursuant to Clause 4.2(d) below.

  (b)At Closing, and subject to Clauses 4.2(c) and 4.2(d), the Company will deliver to the Initial Bondholder the Bonds to be subscribed for by the Initial Bondholder in the form of the documents specified in Clause 4.2(a)(ii) above, against payment by the Initial Bondholder to the Company or its order in immediately available funds of the subscription monies (net of the Initial Bondholder’s permitted expenses pursuant to the Term Sheet) to the following account of the Company:

  Account Name:	Renalytix plc

  Sort Code:	40-12-76

  Account Number:	83922779

  IBAN:	GB75HBUK40127683922779

  SWIFTBIC:	HBUKGB4B

  or such account of the Company as the Company designates to the Initial Bondholder in writing at least three Business Days prior to the Closing Date.

  (c)On the Closing Date, and following confirmation of receipt from the Initial Bondholder’s Solicitors of the documents specified in Clause 4.2(a)(ii), the Initial Bondholder shall pay or procure the payment of its subscription monies (net of the Initial Bondholder’s permitted expenses pursuant to the Term Sheet) in accordance with Clause 4.2(b) in immediately available funds and shall notify the Company thereof and provide evidence or a receipt of such payment transfer.

  (d)Upon receipt of the net subscription monies specified in Clause 4.2(b), the documents referred to in Clause 4.2(a)(ii) above shall be deemed to be released by the Company to or to the order of the Initial Bondholder. The Company shall promptly on the Closing 

  9

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  Date furnish a written confirmation to the Initial Bondholder of its receipt of the net subscription monies.

  5.Register and Title

  5.1.Registration of Bonds

  (a)The Company shall maintain a Register in respect of the Bonds in accordance with the regulations in Schedule 7 (Regulations Concerning Transfers and Registration of the Bonds).

  (b)A Bond Certificate will be issued to each Bondholder in respect of its registered holding.

  (c)Each Bond Certificate will be numbered serially with an identifying number which will be recorded in the Register by the Company.

  5.2.Title

  (a)Each Bondholder registered in the Register shall (except as otherwise required by law or as ordered by a court of competent jurisdiction) be treated as the absolute owner of such Bond for all purposes (whether or not it is overdue and regardless of any notice of ownership, trust or any other interest in such Bond, any writing on the Bond Certificate relating to such Bonds (other than a duly executed transfer thereof) or any notice of any previous loss or theft of such Bond Certificate) and no person shall be liable for so treating such Bondholder.

  (b)The Company shall promptly on demand by any Bondholder (and in any event by no later than five Business Days after demand) send to such Bondholder a complete and correct copy of the Register.

  5.3.Registration and Delivery of Bond Certificates

  (a)Promptly following the surrender of a Bond Certificate subject to and in accordance with Clause 11 (Transfer of Rights and Obligations), the Company will register the transfer in question and deliver, at the Company’s expense (except as provided below), a new Bond Certificate of a like principal amount to the Bonds transferred to each New Holder to the address specified for the purpose by such New Holder and, if applicable, a new Bond Certificate to the Existing Holders in accordance with Clause 11 (Transfer of Rights and Obligations).

  (b)Promptly following the exercise by any Bondholder of their Conversion Rights and surrender of a Bond Certificate in accordance with Condition 6.10 (Procedure for exercise of Conversion Rights), the Company will register such conversion of the Bonds and, solely in the case of a partial conversion of Bonds in accordance with the Conditions, deliver at the Company’s expense (except as provided below) a new Bond Certificate to such Bondholder representing the principal amount of Bonds held thereby following such partial conversion.

  5.4.Closed Periods

  Bondholders may not require transfers to be registered during the period of 5 days ending on the due date for any payment of principal or interest in respect of the Bonds or in respect of which a Conversion Notice has been delivered in accordance with Conditions.

  10

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  5.5.Regulations Concerning Transfers and Registration

  All transfers of Bonds, provision of new Bond Certificates (upon transfer) and entries on the Register are subject to the detailed regulations concerning the transfer and registration of Bonds set out in Schedule 7 (Regulations Concerning Transfers and Registration of the Bonds).

  5.6.Replacement of Bond Certificates

  Promptly following receipt by the Company of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Bond Certificate, and:

  (a)in the case of loss, theft or destruction, of an indemnity reasonably satisfactory to it; 
or

  (b)in the case of mutilation, upon surrender and cancellation of such Bond Certificate,

  the Company shall, at its own expense, execute and deliver, a replacement Bond Certificate.

  5.7.Copies of Bond Certificates

  Whenever in this Agreement or the Conditions there is any requirement to deliver, produce, surrender or possess a Bond Certificate, the delivery, production, surrender or possession of an electronic copy of such Bond Certificate shall be satisfactory, save that in the case of a surrender of a Bond Certificate by electronic means the Bondholder (where not the Company) shall confirm to the Company destruction of any original thereof.

  6.Indemnity

  6.1.Indemnity

  (a)The Company agrees to indemnify and hold harmless the Initial Bondholder and 
each of its affiliates and all their respective officers, directors, general partners, employees, Heights Capital Management, Inc., Heights Capital Ireland, LLC, shareholders and representatives and each of their respective successors (but, for the avoidance of doubt, not including any permitted transferee or assignee of the Initial Bondholder) (each, an “Indemnified Person”) from and against any and all actions, suits, investigation, inquiry, claims, losses, damages, liabilities, proceedings and documented related out-of-pocket fees and expenses of any kind or nature (a “Loss”) (subject to the limitations set forth in this Clause 6) which may be incurred by any 
such Indemnified Person as a result of or arising out of or in connection with or based on:

  (i)Misrepresentation: any breach or alleged breach of the representations and warranties contained in, or made or deemed to be made by the Company 
under, this Agreement by reference to the facts and circumstances then subsisting; or

  (ii)Breach: any breach or alleged breach by the Company of any of its obligations in this Agreement or the Bonds (including, without limitation, the failure by the Company to issue the Bonds on the Closing Date); or

  (iii)Announcements: any untrue statement contained in any announcement or 
press release published following the date hereof by or on behalf of the 

  11

  

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  Company or any member of the Group in connection with the initial offering of and/or initial issue of the Bonds or any omission or alleged omission of a material fact required to be stated therein or necessary to make the 
statements therein, in light of the circumstances in which they are made, not misleading.

  (b)The Company shall pay to the relevant Indemnified Person within 10 Business Days of written demand therefor an amount equal to such Loss, provided that no Indemnified Person will be entitled to indemnity hereunder in respect of any Loss to the extent that it is finally judicially determined by a court of competent jurisdiction that such Loss, resulted from the negligence, bad faith or wilful misconduct of such Indemnified Person or its affiliates, officers, directors, partners, trustees, employees, shareholders, agents or controlling persons (all such persons “Related Parties”).

  (c)This Agreement shall not cause any Bondholder to have any duty or obligation, whether as fiduciary or trustee for any Indemnified Person or its Related Parties or otherwise, to recover any such payment or to account to any other person for any amounts paid to it under this Clause 6.

  6.2.Conduct of Claims

  (a)In case any action shall be brought against any Indemnified Person in respect of which recovery may be sought from the Company under this Clause 6, the relevant Indemnified Person shall promptly notify the Company in writing of such fact, but failure to do so will not relieve the Company from any liability under this Agreement and in any event shall not relieve it from any liability which it may have otherwise than on account of the indemnities contained in this Agreement.

  (b)Each Indemnified Person shall thereafter, subject to any requirement imposed by an insurer of the Indemnified Person and to the extent permitted by applicable law or regulation:

  (i)at reasonable intervals keep the Company informed of the progress of the claim;

  (ii)provide the Company with copies of such documentation relating to the claim as it may reasonably request; and

  (iii)maintain reasonable consultation with the Company regarding decisions concerning the claim,

  subject in each case to the Indemnified Person being indemnified and secured to its reasonable satisfaction against all Losses incurred by it in consequence of its compliance with this Clause 6, and provided that nothing in this Clause 6 shall:

  (i)require any Indemnified Person to provide the Company with a copy of any document which it, in good faith, considers to be held by it subject to a duty of confidentiality or to be privileged whether in the context of any litigation connected with the claim or otherwise; or

  (iv)require an Indemnified Person to do, or refrain from doing, anything which would, or which the Company considers might, either prejudice any insurance cover to which it or any other Indemnified Person may from time to time be entitled, or from which it or any of them may benefit or which may prejudice 

  12

  

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  the reputation or standing of such Indemnified Person or of any other Indemnified Person.

  (c)The Company may participate at its own expense in the defence of any such action; provided, however, that legal advisers to the Company shall not (except with the consent of the relevant Indemnified Person) also be legal advisers to the Indemnified Person. The Company shall not, without the prior written consent of the relevant Indemnified Person, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification could be sought under this Clause 6 (whether or not the Indemnified Person(s) are actual or potential parties thereto), unless such settlement, compromise or consent:

  (i)includes an unconditional release of each Indemnified Person from all liability arising out of such litigation, investigation, proceeding or claim; and

  (ii)does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person.

  7.Costs and Expenses

  7.1.Transaction Expenses

  With effect from the Closing Date:

  (a)the Company shall be responsible for its own expenses and the fees and expenses of 
all third parties (including the Calculation Agent and the Stock Exchanges) 
appointed under or in connection with the Bonds, in connection with the preparation and execution of the Bond Documents and the issue and performance of the Bonds; and

  (b)without prejudice to any costs and expenses arrangements separately agreed in the Term Sheet and subject to Clause 6 (Indemnity), unless otherwise agreed by the Company (in its discretion) the Bondholders shall be responsible for their own respective costs and expenses incurred by them in connection with the Bonds.

  7.2.Amendment Costs

  If the Company requests an amendment, waiver or consent and such requests for 
amendments, waivers or consents, in the reasonable opinion of each Bondholder, require 
legal fees to be incurred, the Company shall, within five Business Days of demand, reimburse each Bondholder for the amount of such reasonable legal costs and expenses properly 
incurred by it in responding to, evaluating, negotiating or complying with that request or requirement provided that such legal costs and expenses shall be agreed with the Company in advance.

  7.3.Enforcement Costs

  The Company shall, within three Business Days of demand, pay to each Bondholder the amount of all costs and expenses (including legal fees) properly incurred by that Bondholder in connection with the enforcement of, or the preservation of any rights under, the Bonds and this Agreement.

  13

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  8.Representations of the Company

  The Company makes the representations and warranties set out below in this Clause 8 to the Initial Bondholder on the date of this Agreement and to the Initial Bondholder, by reference 
to the facts and circumstances then subsisting, on each of the Pricing Date and the Closing 
Date:

  (a)that:

   

  14

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  (i)all expressions of opinion, forecasts or estimates of the Company and/or its Group contained in any such Public Statements were made in good faith on reasonable grounds after due and careful consideration;

  (ii)other than in respect of the matters which are the subject of this Agreement and the Equity Raise, the Company is not aware, after due and careful consideration, of any information relating to the Company or any member of the Group which the Company or any member of the Group is required or obliged to publish or make available to the public pursuant to applicable laws (including under applicable listing requirements), whether to correct a misleading impression or otherwise to avoid behaviour which would 
constitute market abuse (in contravention of Regulation 596/2014/EU as it forms part of English law by virtue of the EUWA) which has not been published;

  (iii)other than in respect of the matters which are the subject of this Agreement and the Equity Raise, neither the Company nor any of its directors or officers is aware of any non-public fact or circumstance that, if made public, would be likely to have a significant effect upon the market price of the Bonds, the ADSs or the Ordinary Shares, and in respect of which the Company has delayed disclosure in compliance with applicable law; and

  (iv)the Company is in compliance with the rules and regulations of each of the Stock Exchanges (including, but not limited to, continuing disclosure obligations) in all material respects;

  (b)that the Company has been duly incorporated and is validly existing and registered in England and Wales as a public limited company with limited liability and is not in liquidation, receivership or bankruptcy and the Company has full power and authority to own, lease and operate its properties to the extent material in the context of the issue of the Bonds and the purchase thereof by the Initial Bondholder and conduct its business and to execute and perform its obligations under the Bond Documents and the Bonds;

  (c)that the issue of the Bonds, the delivery of ADSs on conversion of the Bonds (and the issue of Ordinary Shares represented thereby) or upon any ADS Settlement under the Bonds and the execution and delivery of the Bond Documents have been duly authorised by the Company and, in the case of the Bonds and ADSs (and the Ordinary Shares represented thereby), upon due execution, issue and delivery in accordance with this Agreement and the Conditions will constitute, and, in the case of the Bond Documents, upon due execution and delivery (as applicable), constitute, legal, valid and binding obligations of the Company enforceable in accordance with their respective terms, subject to the laws of bankruptcy and other laws affecting the rights of creditors generally;

   

  15

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  (d)that:

  (i)the annual audited consolidated financial statements of the Company as of and for the years ended 30 June 2021 and 2020 were prepared in accordance with IFRS accounting principles generally accepted in the United Kingdom consistently applied and that they give a true and fair view of its financial condition and its results of operations (on a consolidated basis) as at the dates indicated; and

  (ii)the unaudited interim consolidated financial statements of the Company as of and for the six months ended 31 December 2021 were prepared in accordance with IFRS accounting principles generally accepted in the United Kingdom consistently applied (subject to the qualification that they are unaudited) and that they fairly present in all material respects the financial condition of the Company as at the date indicated;

  (e)since 17 July 2020, the Company has timely (including following any extensions of time for filing provided by Rule 12b-25 promulgated under the Exchange Act) filed all reports, schedules, forms, proxy statements, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the Exchange Act (all of the foregoing filed prior to the date hereof and all exhibits and appendices included therein and financial statements, notes and schedules thereto and documents incorporated by reference therein, and including any amendments thereto, being hereinafter referred to as the “SEC Documents”). As of their respective dates, the SEC Documents complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. As of their respective dates, the financial statements of the Company included in the SEC Documents complied in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto as in effect as of the time of filing. The Company is not currently contemplating to amend or restate any of the financial statements (including, without limitation, any notes or any letter of the independent accountants of the Company with respect thereto) included in the SEC Documents (the “Financial Statements”), nor is the Company currently aware of facts or circumstances which would require the Company to amend or restate any of the Financial Statements, in each case, in order for any of the Financials Statements to be in compliance with IFRS and the rules and regulations of the SEC. The Company has not been informed by its independent accountants that they recommend that the Company amend or restate any of the Financial Statements or that there is any need for the Company to amend or restate any of the Financial Statements;

   

  16

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  (f)The Company and each member of the Group maintains internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) that is effective to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, including that (i) transactions are executed in accordance with management’s general or specific authorisations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with United States generally accepted accounting principles or IFRS and to maintain asset and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in accordance with management’s general or specific authorisation and (iv) the recorded accountability for assets and liabilities is compared with the existing assets and liabilities at reasonable intervals and appropriate action is taken with respect to any difference. The Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) that are effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarised and reported, within the time periods specified in the rules and forms of the SEC, including, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive officer or officers and its principal financial officer or officers, as appropriate, to allow timely decisions regarding required disclosure. Neither the Company nor any member of the Group has received any notice or correspondence from any accountant, governmental entity or other Person relating to any potential material weakness or significant deficiency in any part of the internal controls over financial reporting of the Company or any member of the Group that has not been fully remediated;

  (g)that no event has occurred which would constitute (if the Bond Documents had been duly executed and the Bonds were issued and outstanding) an Event of Default or a Potential Event of Default (each as defined in the Conditions);

  (h)that the Company and each member of the Group (i) is not in breach of the terms of, or in default under, any instrument, agreement or order to which it is a party or by which it or its property is bound and no event has occurred which with the giving of notice or lapse of time or other condition would constitute a default under any such instrument, agreement or order, except for any such breach or default which either individually or in the aggregate would not reasonably be expected to be material in the context of the issue of the Bonds and the purchase thereof by the Initial Bondholder; (ii) is not engaged (whether as defendant or otherwise) in, nor has the Company knowledge of the existence of, or any threat of, any legal, arbitration, administrative, governmental or other proceedings an adverse result of which is reasonably likely to be material in the context of the issue of the Bonds and the purchase thereof by the Initial Bondholder or which is reasonably likely to have or have had a Material Adverse Effect and (iii) has not taken any action nor, to the best of their knowledge or belief having made all reasonable enquiries, have any steps been taken or legal proceedings commenced for the winding up or dissolution of the Company or any member of the Group;

   

  17

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  (i)that:

  (i)the Company has 52,266,410 fully paid and issued Ordinary Shares as at the date of this Agreement;

  (ii)the Company has 10,021,260 issued and outstanding ADSs as at the date of this Agreement;

  (iii)the ADSs (other than any ADSs held by “affiliates” within the meaning of the Securities Act) and Ordinary Shares currently in issue are freely tradeable and admitted to trading on the relevant Stock Exchange in compliance with all applicable listing rules and the Company is in compliance with all applicable listing rules relating to the ADSs and Ordinary Shares, and it has made and will continue to make all applicable regulatory filings in respect of the listing and admission to trading of the ADSs and the Ordinary Shares with the relevant Stock Exchange;

  (iv)any ADSs to be issued or delivered on conversion of the Bonds (or upon any ADS Settlement under the Bonds) shall be fungible with any and all ADSs currently in issue (other than any ADSs held by “affiliates” within the meaning of the Securities Act), such ADSs shall be issued without any restrictions on transfer imposed by the Securities Act, and the deposit of Ordinary Shares by the Company with the Depositary (as defined in the Conditions) and the issuance of ADSs of the Depositary to the Initial Bondholder in accordance with the Deposit Agreement (as defined in the Conditions) may be effected without registration of such deposit or issuance under the Securities Act and without the requirement to include restrictive legends on such ADSs;

  (v)none of the ADSs and the Ordinary Shares represented by the ADSs to be issued or delivered on conversion of the Bonds (or pursuant to any share redemption option thereunder) will be issued or delivered in violation of the pre-emptive rights of any holder of ADSs or Ordinary Shares, respectively;

  (vi)none of the ADSs to be issued or delivered on conversion of the Bonds (or upon any ADS Settlement under the Bonds) shall exceed the maximum amount of ADSs registered pursuant to the Company’s F-6 registration statement;

  (vii)the Company has available for issue and authority to allot, free from pre-emption rights, sufficient authorised but unissued ADSs and Ordinary Shares represented by the ADSs to enable the conversion rights attaching to the Bonds to be satisfied in full, and all other rights of subscription and conversion into ADSs to be satisfied in full in accordance with their terms;

   

  18

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  (viii)the ADSs to be issued upon conversion of the Bonds (or upon any ADS Settlement under the Bonds) and the Ordinary Shares represented by such ADSs will be fully paid and will not be subject to calls for further funds and will be subject to the terms of the Deposit Agreement;

  (ix)the ADSs to be issued and/or delivered upon conversion of the Bonds (or upon any ADS Settlement under the Bonds) and Ordinary Shares represented by such ADSs will rank pari passu with the then outstanding ADSs and Ordinary Shares, respectively, and will be free and clear of all liens, charges, pledges, encumbrances, security interests, claims and other third party rights;

  (x)there are no outstanding securities convertible into or exchangeable for, or warrants, rights or options to purchase from the Company or any member of the Group, or obligations or commitments of the Company or any member of the Group to issue, sell or otherwise dispose of, the Ordinary Shares or the ADSs, other than securities issuable pursuant to the Company’s equity incentive plans and employee stock purchase plan as described in the Company’s Form 20-F as filed with the SEC in respect of its annual report for the financial year ended 30 June 2021;

  (xi)there are no restrictions upon the voting or transfer of any of the ADSs or the Ordinary Shares whether pursuant to any law or any agreement or otherwise (other than as set forth in articles 36 and 70 of the Company’s articles of association and Sections 2.8, 3.1, 3.5, 4.10 and 5.1 of the Deposit Agreement); and

  (xii)subject to general provisions of law relating to the distribution of profits, there are no restrictions on the payment of dividends and other distributions declared and payable on the ADSs or the Ordinary Shares (other than as set forth in article 129 of the Company’s articles of association and Sections 2.8 and 3.1 and Article 4 of the Deposit Agreement);

  (j)that that Company and the members of the Group together own, possess or can acquire on reasonable terms, adequate Intellectual Property Rights necessary to conduct the business now operated by them, or presently employed by them, and have not received any notice of infringement of or conflict with asserted rights of others with respect to any Intellectual Property Rights, except where such notice of infringement or conflict, if determined adversely, would not, individually or in the aggregate, have a Material Adverse Effect;

  (k)all statutory, municipal and other licences, franchises, consents, permits, approvals, orders, authorities and other concessions necessary and material for the carrying on of the businesses and operations of the Company and each member of the Group as now carried on, as previously carried on and as proposed to be carried on have been obtained (collectively, “Licences”) and are (or were at the relevant time) valid and subsisting, except where the lack of such Licences, individually and in the aggregate, would not have a Material Adverse Effect;

  (l)all conditions applicable to any such Licence have been and are complied with and no member of the Group is in breach of any such Licence, except where such breach would not, individually or in the aggregate, have a Material Adverse Effect;

   

  19

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  (m)there are no circumstances or proceedings of which the Company is aware which indicate that:

  (i)any such Licence may be; or

  (ii)if determined adversely to any member of the Group, may cause any such Licence to be,

  revoked, rescinded, modified, avoided or repudiated or not renewed, in whole or in part, in the ordinary course of events, except where such circumstances or proceedings would not, individually or in the aggregate, have a Material Adverse Effect;

  (n)save in each case where it would not have, individually or in aggregate, a Material Adverse Effect:

  (i)neither the Company nor any member of the Group is in violation of any applicable statute, law, rule, regulation, ordinance or rule of civil or common law or any judicial or administrative interpretation thereof, including any judicial or administrative order, consent, decree or judgment, relating to pollution or protection of human health, the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata) or wildlife, including, without limitation, laws and regulations relating to the release or threatened release of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous substances, petroleum or petroleum products, asbestos-containing materials or mould (collectively, “Hazardous Materials”) or to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials (collectively, “Environmental Laws”);

  (ii)the Company and each member of the Group has all Authorisations required under any applicable Environmental Laws and is in compliance with their requirements;

  (iii)there are no pending or, to the knowledge and belief of the Company, threatened administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens, notices of non-compliance or violation, investigation or proceedings relating to any Environmental Law against it or any member of the Group; and

  (iv)to the best of the Company’s knowledge, there are no events or circumstances that would reasonably be expected to form the basis of an order for clean-up or remediation, or an action, suit or proceeding by any private party or governmental body or agency, against or affecting the Company or any member of the Group relating to Hazardous Materials or Environmental Laws;

   

  20

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  (o)that (i) there are no claims by the Company or any member of the Group under any policy or instrument of insurance as to which any insurance company is denying liability or defending under a reservation of rights clause, and neither the Company nor any member of the Group has been refused any insurance coverage sought or applied for, in any such case, where the denial of liability in respect of such claim or refusal to provide insurance coverage, as the case may be, would reasonably be expected individually or in the aggregate to have a Material Adverse Effect and (ii) neither the Company nor any member of the Group has reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect;

  (p)that (i) neither the Company nor, to the best of the Company’s knowledge, any other member of the Group is overdue in the filing with the appropriate taxing authorities of any tax returns, reports and other information required to be filed by it, and the Company and, to the best of the Company’s knowledge, each other member of the Group has paid all taxes due thereon, except where any such failure to file such tax returns, reports and information or to pay such taxes could be reasonably expected to not have a Material Adverse Effect or where payment of such taxes is being contested in good faith, and each such tax return, report or other information was, when filed, accurate and complete in all material respects and there is no tax liability that has been asserted against the Company or any member of the Group which could be reasonably expected to have a Material Adverse Effect; (ii) neither the Company nor, to the best of the Company’s knowledge, any other member of the Group has incurred any liability (or has committed any actions, or events have occurred, which would, to the best of the Company’s knowledge, subject the Company or any other member of the Group to a liability) in respect of any tax which would reasonably be considered material in the context of the issue of the Bonds and the purchase thereof by the Initial Bondholder, other than any such liabilities arising in the ordinary course of the business of the Company and the Group and any such liabilities which have been publicly announced prior to the date hereof; and (iii) neither the Company nor, to the best of the Company’s knowledge, any member of the Group has paid nor is liable to pay nor has acted (directly or through an agent or other representative) in such manner as to incur a liability (or potential liability) to pay any interest or penalty in connection with any tax or otherwise paid any tax after its due date for payment or become liable to pay any tax, in each case, which would reasonably be expected to be material in the context of the issue of the Bonds and the purchase thereof by the Initial Bondholder;

  (q)that neither the Company nor any other member of the Group nor any director, officer, agent, employee or affiliate of the Company or any other member of the Group is currently the subject or the target of any Sanctions or conducting business with any person, entity or country which is the subject or target of any Sanctions in a manner which is prohibited by such Sanctions;

  (r)that neither the Company, any other member of the Group nor any director, officer, agent, employee or affiliate of the Company or any other member of the Group:

   

  21

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  (i)has engaged in any activity or conduct which would violate any applicable anti-bribery or anti-corruption laws or regulations (including. without limitation. to the extent applicable. the U.S. Foreign Corrupt Practices Act of 1977 or the rules and regulations promulgated thereunder or under the UK Bribery Act 2010) (“Anti-Bribery and Anti-Corruption Laws”);

  (ii)has offered, promised, paid, received, requested or agreed to receive a bribe or other unlawful payment nor offered, promised or given any financial or other advantage to a public official (or to a third party at the request or acquiescence of the public official) in an attempt to influence them in their capacity as a public official to obtain or retain business, or to obtain an advantage in the conduct of business, where such offer, promise or payment is not permitted under applicable laws (a “Prohibited Payment”);

  (iii)has, to the best of the Company’s knowledge, been subject to any investigation by any governmental entity, or any action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator, with regard to any actual or alleged Prohibited Payment or violation of Anti-Bribery and Anti-Corruption Laws; or

  (iv)is, to the best of the Company’s knowledge, subject to any investigation by any governmental entity, or any action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator with regard to any actual or alleged Prohibited Payment or violation of Anti-Bribery and Anti-Corruption Laws, and, to the best of the Company’s knowledge, no such actions, suits or proceedings are threatened or contemplated;

  (s)that the Company has instituted, maintains and enforces systems, controls, policies. procedures and legal processes for the purpose of preventing it and its directors and officers, employees and any other persons acting on its or their behalf from engaging in any action in breach of Anti-Bribery and Anti-Corruption Laws;

  (t)that the operations of the Company and each other member of the Group are and have been conducted at all times in compliance with applicable financial record keeping and reporting requirements and money laundering statutes in the United Kingdom and of all jurisdictions in which the Company and each other member of the Group conduct business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency and which is binding on the Company or a member of the Group (collectively, “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any other member of the Group with respect to Money Laundering Laws is pending and, to the best of the Company’s knowledge, no such actions, suits or proceedings are threatened or contemplated;

  (u)that, in respect of issuing any ADSs on conversion of the Bonds (or upon any ADS Settlement under the Bonds), if any, no stamp or other duty or similar tax is assessable or payable in the United Kingdom, the United States, or other sub-division of or authority therein or thereof having power to tax, in each case in connection with the execution or delivery of the Bond Documents, the issue or delivery of the Bonds, the issuance and delivery of the ADSs (and the Ordinary Shares represented thereby) to be issued upon conversion of the Bonds or upon any ADS Settlement under the Bonds;

   

  22

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  (v)that the Bonds will, upon issue, constitute direct, unconditional unsubordinated and (subject to Condition 2.1 (Negative Pledge)) unsecured obligations of the Company and will rank pari passu and rateably, without any preference among themselves, and at least equally with all other existing and future unsecured and unsubordinated obligations of the Company but, in the event of an insolvency of the Company, save for such obligations that may be preferred by provisions of law that are mandatory and of general application;

  (w)that the Bonds have not been and will not be registered under the Securities Act and have not been registered or qualified under any state securities or “Blue Sky” laws of the states of the United States and, accordingly, the Company acknowledges that the Bonds may not be offered or sold within the United States or to or for the account or benefit of U.S. persons except in accordance with Regulation S or pursuant to another exemption from the registration requirements of the Securities Act (terms used in this paragraph have the meaning given to them by Regulation S);

  (x)the Company and each member of the Group is in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002, as amended, and any and all applicable rules and regulations promulgated by the SEC thereunder;

  (y)the Company is not, and has never been, an issuer identified in, or subject to, Rule 144(i);

  (z)the Company is a “foreign issuer” and has implemented “offering restrictions” (as such terms are defined in Regulation S); and

  (aa)that none of the Company nor any of its respective affiliates, nor any persons acting on any of their behalf, has engaged or will engage in any directed selling efforts (as defined in Rule 902(c) under the Securities Act) with respect to the Bonds.

  9.Representations of the Initial Bondholder

  The Initial Bondholder represents, warrants and confirms to the Company as follows:

  (a)that it has been duly incorporated and is validly existing and registered in its jurisdiction of incorporation and is not in liquidation, receivership or bankruptcy and it has full power and authority to execute and perform its obligations under this Agreement;

  (b)that the execution and delivery of this Agreement and the performance of the terms of this Agreement (i) to the best of the Initial Bondholder’s knowledge, will not infringe any law, regulation, order, rule, decree or statute applicable to the Initial Bondholder or to which its property may be subject, (ii) are not contrary to the provisions of the constitutional documents of the Initial Bondholder and (iii) will not result in any breach of the terms of, or constitute a default under, any instrument, agreement or order to which the Initial Bondholder is a party or by which the Initial Bondholder or any of its property is bound;

  (c)that it understands that the Bonds have not been and will not be registered under the Securities Act or with any securities regulatory authority of any state or other jurisdiction of the United States, that any offer and sale of the Bonds to it is being made in reliance on an exemption from, or is a transaction not subject to, the registration requirements of the Securities Act in a transaction not involving any public offering in the United States;

   

  23

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  (d)that it represents and warrants that its purchase of the Bonds is lawful under the laws of the jurisdiction of its incorporation and the jurisdiction in which it operates (if different), and that such acquisition will not contravene any law, regulation or regulatory policy applicable to it;

  (e)that it is a professional client as defined in point (8) of Article 2(1) of Regulation (EU) No. 600/2014 as it forms part of United Kingdom domestic law by virtue of the EUWA;

  (f)that it is an investment professional within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005;

  (g)that it is a “qualified investor” as defined under Article 2 of Regulation (EU) 2017/1129 as it forms part of United Kingdom domestic law by virtue of the EUWA;

  (h)that it is acquiring the Bonds for its own account, or for one or more accounts (and as to each of which it has authority to acquire the Bonds and exercise sole investment discretion), for investment purposes, and not with a view to, or for resale in connection with, the distribution thereof, directly or indirectly, in whole or in part, in the United States in violation of the Securities Act and that neither it nor any account for which it is acting (if any) was formed for the specific purpose of acquiring the Bonds;

  (i)that it, and any account it is acquiring the Bonds for, is not a “U.S. Person” and is purchasing the Bonds in an “offshore transaction” (as such terms are defined under Regulation S) and that it understands that the Bonds will be subject to a distribution compliance period under Regulation S of the Securities Act;

  (j)that it understands that the Bonds may only be resold or otherwise transferred in a transaction exempt from, or not subject to, the registration requirements of the Securities Act, and in compliance with applicable state securities law, and that the Company is not required to register the Bonds under the Securities Act;

  (k)that it is not a Person whose business is or includes issuing depositary receipts for chargeable securities, or a Person whose business is or includes holding chargeable securities as nominee or agent for such a first-mentioned person, respectively within the meaning of subsections 93(2) and 93(3) Finance Act 1986, or a Person whose business is or includes the provision of clearance services for the purchase and sale of chargeable securities, or a Person whose business is or includes holding chargeable securities as nominee for such a first-mentioned person, respectively within the meaning of subsections 96(1)(a) and 96(1)(b) Finance Act 1986; and

   

  24

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  10.Undertakings by the Company

  The Company undertakes with the Initial Bondholder as follows:

  (a)it will forthwith notify the Initial Bondholder if at any time prior to payment of the net subscription monies for the Bonds on the Closing Date anything occurs which renders or which they are aware is likely to render untrue or incorrect in any respect any of the representations and warranties contained in Clause 8 (Representations of the Company);

  (b)during the period commencing on the date hereof and ending 30 days after the Closing Date (both dates inclusive) the Company will not, and will procure that none of its Subsidiaries will, without the prior written consent of the Initial Bondholder (i) directly or indirectly, issue, offer, pledge, sell, contract to issue or sell, issue or sell any option or contract to purchase, purchase any option or contract to issue or sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of, directly or indirectly, any Ordinary Shares or Relevant Securities or any securities convertible into or exercisable or exchangeable for Ordinary Shares or Relevant Securities or (ii) enter into any swap or any other agreement or any transaction that transfers, in whole or in part, directly or indirectly, any of the economic consequences of ownership of Ordinary Shares or Relevant Securities, whether any such swap or transaction described in limb (i) or (ii) above is to be settled by delivery of Ordinary Shares or Relevant Securities or such other securities, in cash or otherwise. The foregoing sentence shall not apply to (a) the issue of the Bonds, (b) any ADSs (and Ordinary Shares represented thereby) issued and/or transferred pursuant to the conversion of the Bonds, (c) the issue and sale of any Equity Raise Securities pursuant to the Equity Raise, (d) the issuance, offering, exercise, allotment, purchase, appropriation or grant of Ordinary Shares or other Securities (as defined in the Conditions (including, but not limited to, rights, warrants and options)) pursuant to any employee share schemes or benefits or incentive arrangements existing at the date hereof or entered into in the ordinary course of business, (e) the filing of any registration statement on Form S-8 relating to securities granted or to be granted pursuant to any employee share schemes or benefits or incentive arrangements existing at the date hereof or entered into in the ordinary course of business, (f) the filing of any “shelf” registration statement on Form F-3, (g) entry into an at-the-market sales agreement (but not including any issuances and sales of Relevant Securities pursuant to such agreement(s)) or (h) the issuance and sale of a number of Ordinary Shares (including Ordinary Shares represented by ADSs) equal to the remaining amount of Ordinary Shares authorised for issuance under the Company’s existing shareholder authority after giving effect to the Equity Raise and issuance of the Bonds. For the purposes of this paragraph “Relevant Securities” shall include any participation certificates and any depositary or other receipt, instrument, rights or entitlement representing Ordinary Shares;

   

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  (c)it shall make or cause to be made on its behalf an application for the ADSs and Ordinary Shares issued pursuant to the Equity Raise to be admitted to trading and listing on the relevant Stock Exchange on or by the Closing Date, if required;

  (d)it shall maintain the ADSs’ listing or authorisation for quotation (as the case may be) on the relevant Stock Exchange and it shall not, and will procure that other members of the Group shall not, take any action which could be reasonably expected to result in the delisting or suspension of the ADSs on the relevant Stock Exchange;

  (e)it will use the proceeds from the issue of the Bonds, as well as the proceeds of the Equity Raise for the general corporate purposes of the Company; and

  (f)it will not directly or indirectly use all or part of the proceeds of the Bonds or the Equity Raise, or lend, contribute or otherwise make available all or part of such proceeds to any subsidiary, joint venture partner or other Person, for the purpose of funding or financing the activities of or business with any Person, or in any country or territory, that is, or whose government is, the subject of any Sanctions at the time of such funding or financing.

  11.Transfers of Rights and Obligations

  11.1.Assignment

  Except as set out below in Clause 11.2 (Permitted Transfers), no Party may assign or transfer its rights, benefits and obligations under this Agreement or any Bond (including the Conditions).

  11.2.Permitted Transfers

  (a)Subject to Clauses 5.4 (Closed Periods), 5.5 (Regulations Concerning Transfers and Registration) and the other provisions of this Clause 11.2, a Bondholder (being an “Existing Holder”) may at any time transfer a Bond or Bonds to any Person (a “New Holder”), provided that:

  (i)the aggregate principal amount of such Bond or Bonds transferred is in a principal amount which at the Closing Date had an initial principal amount of not less than U.S.$200,000;

  (ii)the Bond or Bonds are being transferred in a transaction exempt from, or not subject to, the registration requirements of the Securities Act, and in each case in compliance with applicable state securities law; and

  (iii)prior to such transfer, such New Holder executes and delivers a duly completed and executed Transfer and Accession Deed by the Existing Holder and the New Holder, to the Company at its address for notice, together with such evidence as the Company may reasonably require to prove the title of the Existing Holder and the authority of the individuals who have executed the Transfer and Accession Deed.

  (b)A Bondholder may not transfer a Bond to a Person who (i) is a retail client as defined in point (6) of Article 4(1) of Regulation (EU) 1286/2014/EU as it forms part of 
English law by virtue of the EUWA, as amended; (ii) is a customer within the meaning 

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  of the FSMA and any rules or regulations made under FSMA to implement Directive (EU) 2016/97, where that customer would not qualify as a professional client as defined in point (8) of Article 2(1) of Regulation (EU) No. 600/2014 as it forms part of United Kingdom domestic law by virtue of the EUWA; or (iii) is not a qualified investor as defined in Regulation (EU) 2017/1129 of the European Parliament and of the Council as it forms part of United Kingdom domestic law by virtue of the EUWA.

  (c)A Bondholder may only transfer a Bond to a Person in circumstances that does not result in the Bondholder of the Company acting in breach of section 21 of FSMA or any equivalent legislation.

  (d)Every Transfer and Accession Deed in respect of the Bonds must be delivered to the Company at its address for notice (which may include electronic delivery) and must be accompanied by the surrender of the relevant Bond Certificate.

  (e)Following receipt of the Transfer and Accession Deed and the surrender of the relevant Bond Certificate (if applicable) in accordance with this Clause 11.2, the Company will (subject to and in accordance with the requirements of Schedule 7 (Regulations Concerning Transfers and Registration of the Bonds)) promptly register the transfer in the Register and issue a copy of the updated Register to the New Holder.

  (f)Such transfer of Bonds will be effected without charge, subject to the Person making such application for transfer paying or procuring the payment of any taxes, duties and other governmental charges in connection therewith.

  12.Undertaking of Bondholders

  12.1.Non-Trading Periods

  The Company shall, not later than ten Business Days following the occurrence of the Closing Date, give notice to the Initial Bondholder (and each subsequent Bondholder within five Business Days of such Bondholder’s accession to this Agreement in accordance with Clause 11 (Transfers of Rights and Obligations)) of a schedule detailing each of the following dates:

  (a)each period of 14 calendar days prior to an Interest Payment Date and Amortisation Payment Date (each as defined in the Conditions); and

  (b)except where in respect of the first Dealing Day immediately preceding the first day of such period the Volume Weighted Average Price (as defined in the Conditions) of an ADS is equal to or more than 105 per cent. of the Conversion Price (as defined in the Conditions) at such time, each period of 6 weeks prior to each Reset Date (as defined in the Conditions),

  each such period, a “Non-Trading Period”.

  12.2.Agreement Not to Short Sell Ordinary Shares or ADSs in Calculation Periods

  The Initial Bondholder and each subsequent Bondholder (by its accession to this Agreement 
by a Transfer and Accession Deed) agrees that, for so long as it is a holder of any Bonds, it shall not sell Ordinary Shares or ADSs nor engage in any short sale transactions in Ordinary Shares or ADSs nor offer to sell, pledge, enter into any option or contract to sell, or otherwise transfer or dispose of, directly or indirectly, any Ordinary Shares or ADSs or enter into any 
 

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  swap or any other agreement or any transaction that transfers, in whole or in part, directly or indirectly, any of the economic consequences of ownership of Ordinary Shares or ADSs, whether any such swap or transaction is to be settled by delivery of Ordinary Shares, ADSs or such other securities, in cash or otherwise, in each case during any Non-Trading Period. Nothing in this Clause 12.2 shall restrict a Bondholder from selling or transferring any Bonds.

  12.3.Maximum Trading Volume

  The Initial Bondholder and each subsequent Bondholder (by its accession to this Agreement by a Transfer and Accession Deed) agrees that, for so long as it is a holder of any Bonds, it shall not enter into any purchase or sale agreements for ADSs, nor engage in any short sale transactions in ADSs, in each case on any Dealing Day on which such number of ADSs subject to such transactions entered into by such Bondholder account for more than: (a) 40 per cent. of the daily volume of the ADSs calculated on the basis of the average daily traded volume during the previous 20 Dealing Days, or (b) 25 per cent. of the weekly (being all Dealing Days in any Monday to Sunday period) volume of the ADSs calculated on the basis of the average weekly (being all Dealing Days in any Monday to Sunday period) volume during the last four weeks, provided that nothing in this Clause 12.3 shall restrict the Initial Bondholder and each subsequent Bondholder from entering into any purchase or sale agreements for ADSs, or engaging in any short sale transactions in ADSs, in relation to up to 15,000 ADSs on any Dealing Day.

  12.4.No Liability for Other Bondholders

  Following a transfer of Bonds, the relevant transferor (including the Initial Bondholder, if applicable) shall have no liability for the actions of transferees or other Bondholders, nor shall it have any obligation to enforce the terms of Clause 12.2 (Agreement Not to Short Sell Ordinary Shares or ADSs in Calculation Periods) and Clause 12.3 (Maximum Trading Volume) or any other terms of this Agreement against any other Bondholders.

  12.5.Beneficial Ownership of Ordinary Shares

  Notwithstanding any other provision of this Agreement or the Conditions, each of the Initial Bondholder and any subsequent Bondholder (by its accession to this Agreement by a Transfer and Accession Deed) shall not at any time own or acquire the beneficial ownership (as such term is defined in Rule 13d-3 under the Exchange Act) of more than [***] of the issued and outstanding Ordinary Shares (which for this purpose shall include Ordinary Shares represented by outstanding ADSs or other depositary receipts or certificates representing Ordinary Shares) in the Company.

  13.Notices

  13.1.Communications in Writing

  Any communication to be made under or in connection with the Bond Documents shall be made in writing and, unless otherwise stated, may be made by email or letter.

  13.2.Addresses

  The address and email address (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Bond Documents and the Bonds is:

  (a)in the case of the Company:

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  Renalytix plc

  Address:	Finsgate

  5-7 Cranwood Street

  London EC1V 9EE

  United Kingdom

  Email:	[***]

  Attention:	James McCullough, Chief Executive Officer

  With copies (which shall not constitute notice) to:

  Cooley (UK) LLP

  Address:	22 Bishopsgate

  London, UK EC2N 4BQ

  Email:	ckeastbutler@cooley.com 

  Attention:	Claire Keast-Butler

  Cooley LLP

  Address:	500 Boylston Street, 14th Floor

  Boston, Massachusetts 02116-3736

  Email:	mrecht@cooley.com 

  Attention:	Marc A. Recht

  (b)In the case of the Initial Bondholder:

  CVI Investments, Inc.

  Address:	c/o Heights Capital Management, Inc.

  101 California Street, Suite 3250

  San Francisco, CA 94111

  Email:	[***]

  Attention:	[***]

  or any substitute address or email address or department or officer as the Party may notify to the other Parties by not less than five Business Days’ notice. Any such notice shall take effect, in the case of a letter, at the time of delivery, or in the case of email transmission, at the time of despatch (unless a delivery failure notification is received by the sender within 12 hours of sending such communication, in which case such notice shall be deemed not to have taken effect).

  If such delivery is made after 5:00 p.m. (London time) or on a day which is not a London business day (in respect of matters where only London business days are specified) or Business Day (in respect of all other matters), such delivery shall be deemed to have been made on the next following London business day or Business Day, as applicable.

   

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  14.Confidential Information

  14.1.Confidentiality

  Each Party agrees to keep all Bond Documents and their contents (the “Confidential Information”) strictly confidential and not to disclose it to anyone, save to the extent permitted by Clause 14.2 (Disclosure of Confidential Information).

  14.2.Disclosure of Confidential Information

  (a)Each Party may disclose Confidential Information on a confidential basis to the accountants, legal counsels and other professional advisors retained by the Company (or its advisors) and the Bondholders, respectively, or to any other agent, clearing system or other third party proposed by the Parties to be involved in the transaction contemplated hereby, or as required by applicable law, regulation, stock exchange rules, judicial or regulatory order, or any Governmental Authority (including, without limitation, the rules and regulations of the SEC), or to any tax authority in connection with the tax affairs or reporting obligations of the disclosing Party, or to the extent that one of the Parties needs to disclose the same for the exercise, protection of enforcement of its rights under this Agreement or the Bonds, and may not disclose Confidential Information to any other Person (other than, in the case of the Bondholders, any of their affiliates, agents, management entities or funds under common management or control) without the prior written consent of the other Party.

  (b)Any publications and/or or filings made by or on behalf of the Company and which include a reference to the name, identity or business of the Initial Bondholder will only be disclosed by the Company with the prior written consent of the Initial Bondholder, unless required to do so by law, regulation, stock exchange rules, judicial or regulatory order, any Governmental Authority, or any tax authority in connection with the tax affairs or reporting obligations of the Company, in which case the Company shall use all reasonable endeavours to consult with the Initial Bondholders on the content of such publication or filings insofar as it relates to the Initial Bondholder prior to such disclosure.

  (c)Each Bondholder may disclose Confidential Information to any Person in connection with the potential assignment or novation their rights, benefits and/or obligations under this Agreement and the Bonds (or discussions in relation thereto), or to any New Holder with whom it duly executes a Transfer and Accession Deed.

  (d)On or following the date hereof, the Company may publicly disclose this Agreement and the Conditions (and/or a summary thereof) through a regulatory information service of each of the Stock Exchanges, irrespective of whether it is required to make such disclosure under applicable law.

  14.3.Restricted Information

  The Company shall not (without first entering into a separate confidentiality agreement with each Bondholder) provide any Bondholder with any non-public price sensitive information regarding the Bonds, the Ordinary Shares, the ADSs, the Company or its Group.

  14.4.Announcements

  The Company will ensure that all announcements and documents published or statements
made by it or on its behalf, which refer to any Bondholder by name will only be made or  

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  published with the prior written consent of that Bondholder and will be true and accurate and 
not misleading in any material respect and, where appropriate, will contain all information necessary for legal or regulatory purposes and all opinions included will be honestly held and given after due and careful consideration. Nothing in this Clause 14.4 shall restrict the Company from at any time making any disclosure or announcement which is required by any applicable law, regulation, stock exchange rule, judicial or regulatory order, any Governmental Authority, or any tax authority in connection with the Company’s tax affairs and reporting obligations.

  15.Payments

  All payments in respect of the obligations of the Company under this Agreement shall be made free and clear of, and without withholding or deduction for or on account of, any taxes, duties, assessments or governmental charges of whatever nature imposed, levied, collected, withheld or assessed by or on behalf of any Tax Jurisdiction (as defined in the Conditions), unless such withholding or deduction is required by law. In that event, the Company shall pay such additional amounts as will result in the receipt by each Bondholder of such amounts as would have been received by it if no such withholding or deduction had been required.

  16.Severability

  If any provision in or obligation under this Agreement is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction, that will not affect or impair (i) the validity, legality or enforceability under the law of that jurisdiction of any other provision in or obligation under this Agreement, and (ii) the validity, legality or enforceability under the law of any other jurisdiction of that or any other provision in or obligation under this Agreement.

  17.Remedies and Waivers

  No failure or delay by either Party to exercise any right or remedy provided under this Agreement or by law shall constitute a waiver of that or any other right or remedy, nor shall it prevent or restrict the further exercise of that or any other right or remedy. No single or partial exercise of such right or remedy shall prevent or restrict the further exercise of that or any other right or remedy.

  18.Amendments and Waivers

  18.1.Prior to Closing

  Up to the completion of Closing, the Parties may, in their absolute discretion, agree to any modification, alteration or addition to this Agreement (including the Conditions).

   

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  18.2.From Closing

  From the completion of Closing, the provisions of this Agreement (including the Conditions) may not be modified, altered, abrogated or added to other than as provided in, and in accordance with, Condition 14 (Amendment and Waiver).

  19.Counterparts

  This Agreement may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

  20.Contracts (Rights of Third Parties) Act 1999

  A Person who is not a Party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Agreement, but this does not affect any right or remedy of a third Party which exists or is available apart from that Act.

  21.Governing Law and Jurisdiction

  21.1.Governing Law

  This Agreement, and any non-contractual obligations arising out of or in connection with it, are and shall be governed by, and construed in accordance with, English law.

  21.2.Jurisdiction

  The courts of England are to have exclusive jurisdiction to settle any disputes which may arise out of or in connection with this Agreement and any non-contractual obligations arising out of or in connection with it and accordingly any legal action or proceedings arising out of or in connection with this Agreement or any such obligations may be brought in such courts. Each of the Parties irrevocably waives any objection which it might now or hereafter have to the courts of England being nominated as the forum to hear and determine any such legal action or proceedings and agrees not to claim that any such court is not a convenient or appropriate forum.

   

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  Schedule 1

Subscription Allocation

  Name of Initial Bondholder	Aggregate principal amount of Bonds

  CVI Investments, Inc.	U.S.$21,200,000.

   

   

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  Schedule 2

Conditions Precedent

  [***]

  (a) 

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  Schedule 3

Form of Bond Certificate

  [***]

   

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  Schedule 4

Terms and Conditions of the Bonds

  The issue of the US$21,200,000 5.5 per cent. Amortizing Senior Convertible Bonds due 2027 in an aggregate principal amount as specified in the Initial Determinations Notice (the “Bonds”, which expression shall, unless otherwise indicated, include any Further Bonds (as defined below)) was (save in respect of any Further Bonds) authorised by a resolution of the board of directors of Renalytix plc (the “Issuer”) passed on 30 March 2022. The Bonds are convertible into ADSs representing Ordinary Shares (each as defined in these Conditions) of the Issuer.

  The Bonds are constituted by an Amended and Restated Bond Agreement dated 5 April 2022 (the “Bond Agreement”) between the Issuer and the Initial Bondholder. The statements set out in these Terms and Conditions (the “Conditions”) are subject to the provisions of the Bond Agreement.

  The existing ADSs are, and the ADSs to be issued upon conversion of the Bonds or upon exercise by the Issuer of an ADS Settlement Option (as defined below) will be, evidenced by American Depositary Receipts (“ADRs”) issued pursuant to a deposit agreement dated 21 July 2020, as amended, supplemented, modified, restated or superseded from time to time (the “Deposit Agreement”) among the Issuer, Citibank, N.A. as depositary (the “Depositary”, which term shall include any successor depositary), and the holders and beneficial owners from time to time of the ADRs.

  The Issuer shall also enter into a calculation agency agreement (the “Calculation Agency Agreement”) dated on or about the date of the Bond Agreement with Conv-Ex Advisors Limited (the “Calculation Agent”, which expression shall include any successor as calculation agent under the Calculation Agency Agreement) whereby the Calculation Agent has been appointed to make certain calculations in relation to the Bonds. The Bondholders are deemed to have notice of those provisions applicable to them which are contained in the Calculation Agency Agreement.

  Capitalised terms used but not defined in these Conditions shall have the meanings attributed to them in the Bond Agreement unless the context otherwise requires or unless otherwise stated.

  1.Form, Initial Denomination, Title and Status

  1.1Form and Initial Denomination

  The Bonds are in registered form in initial principal amounts of $200,000 each, as may be adjusted from time to time in accordance with Condition 7.1.

  1.2Title

  Title to the Bonds will pass by transfer and registration as described in Clause 5 (Register and Title) of the Bond Agreement and Condition 4. Each holder of Bonds will (except as otherwise required by law or as ordered by a court of competent jurisdiction) be treated as the absolute owner of such Bond for all purposes (whether or not it is overdue and regardless of any notice of ownership, trust or any interest in such Bond, any writing on the Bond Certificate relating to such Bonds (other than a duly executed transfer thereof) or any notice of any previous loss or theft of such Bond Certificate) and no person will be liable for so treating such holder.

   

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  1.3Status

  The Bonds constitute direct, unconditional, unsubordinated and (subject to Condition 2.1) unsecured obligations of the Issuer ranking pari passu and rateably, without any preference among themselves, and at least equally with all other existing and future unsecured and unsubordinated obligations of the Issuer but, in the event of an insolvency of the Issuer, save for such obligations that may be preferred by provisions of law that are mandatory and of general application.

  2.Covenants

  2.1Negative Pledge

  For so long as the principal amount outstanding under the Bonds is equal to or exceeds U.S.$3,000,000, the Issuer shall not, and will procure that none of its Subsidiaries will, create or permit to subsist any Security Interest (as defined below), other than a Permitted Security Interest, upon the whole or any part of its present or future undertaking, assets or revenues (including any uncalled capital) to secure any Financial Indebtedness or to secure any Financial Indebtedness Guarantee, without at the same time or prior thereto securing the obligations of the Issuer under the Bonds and the Bond Agreement (including these Conditions) equally and rateably therewith or providing such other security, guarantees and/or other arrangements for the benefit of Bondholders as may be approved by all of the Bondholders.

  For the purposes of this Condition:

  “Finance Lease” means any lease or hire purchase contract, a liability under which would, in accordance with IFRS, be treated as a balance sheet liability.

  “Financial Indebtedness” means any indebtedness of any Person for or in respect of:

  (a)moneys borrowed;

  (b)amounts raised by acceptance under any acceptance credit facility;

  (c)amounts raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or similar instruments;

  (d)the amount of any liability in respect of any Finance Leases;

  (e)the amount of any liability in respect of any purchase price for assets or services the payment of which is deferred primarily as a means of raising finance or financing the acquisition of the relevant asset or service;

  (f)amounts raised under any other transaction (including any forward sale or purchase agreement and the sale of receivables or other assets on a “with recourse” basis) having the commercial effect of a borrowing;

  (g)any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the mark-to-market value shall be taken into account);

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  (h)any counter-indemnity obligation in respect of any guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution; and

  (i)the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) to (h) above.

  “Financial Indebtedness Guarantee” means in relation to any Financial Indebtedness of any person, any obligation of another person to pay such indebtedness including (without limitation) (i) any obligation to purchase such indebtedness, (ii) any obligation to lend money, to purchase or subscribe shares or other securities or to purchase assets or services in order to provide funds for the payment of such indebtedness, (iii) any indemnity against the consequences of a default in the payment of such indebtedness and (iv) any other agreement to be responsible for repayment of such indebtedness.

  “Permitted Security Interest” means in relation to the Issuer and its Subsidiaries:

  (a)any Security Interest securing any Financial Indebtedness or any Financial Indebtedness Guarantee of a person existing at the time that such person is merged into, or consolidated with, the Issuer or any of its Subsidiaries or becomes a member of the Group, provided that such Security Interest was not created in contemplation of, and the principal amount secured has not increased in contemplation of or since, such merger or consolidation or acquisition of such person;

  (b)any Security Interest existing on any property or assets prior to the acquisition thereof by the Issuer or any Subsidiary, provided that such Security Interest was not created in contemplation of, and the amount secured has not increased in contemplation of or since, such acquisition;

  (c)any renewal of or substitution for any Security Interest permitted by any of paragraphs (a) to (c) (inclusive) of this definition, provided that with respect to any such Security Interest (i) the principal amount secured has not increased and (ii) the Security Interest has not been extended to any additional assets (other than the proceeds of such assets);

  (d)any Security Interest on property acquired (or deemed to be acquired) under a Finance Lease, or claims arising from the use or loss of or damage to such property, provided that any such encumbrance secures only rentals and other amounts payable under such lease;

  (e)any Security Interest arising under any retention of title, hire purchase, consignment or conditional sale arrangement (including any Finance Lease) or arrangements having similar effect in respect of goods supplied to the Issuer or any of its Subsidiaries in the ordinary course of business and on the supplier’s standard or usual terms and not arising as a result of any default or omission by the Issuer or any of its Subsidiaries;

  (f)any Security Interest in respect of any interest rate swap, option, cap, collar or floor agreement or any foreign currency swap agreement or other similar agreement or arrangement designed to protect the Issuer or any Subsidiary against fluctuations in interest or foreign currency rates or in respect of any commodity option, swap or other similar agreement or arrangement to protect the Issuer or any Subsidiary against fluctuations in the price of such commodity or in respect of hedging any similar risk to which any member of the Group is exposed in the ordinary course of its business;

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  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  (g)(i) a right of set-off, right to combine accounts or any analogous right which any bank or other financial institution may have relating to any credit balance of the Issuer or any of its Subsidiaries, provided that (x) such deposit account is not a dedicated secured cash account and is not subject to restrictions against access by the Issuer or any of its Subsidiaries, and (y) such account is not intended to provide security to the depository institution; and (ii) any Security Interest arising in the ordinary course of cash management, cash pooling or netting or setting off arrangements or other banking transactions, including customary credit card facilities and letters of credit;

  (h)any Security Interest on any assets securing Financial Indebtedness which arises pursuant to any order or attachment, distraint or similar legal process arising in connection with court proceedings so long as the execution or other enforcement thereof is effectively stayed and the claims secured thereby are being contested in good faith by appropriate proceedings;

  (i)any lien granted as part of a commercial bank’s general terms and conditions;

  (j)any Security Interest over rental deposits arising in the ordinary course of day-to-day business in respect of any property leased or licensed by a member of the Group; and

  (k)any Security Interest arising by operation of law and in the ordinary course of business.

  “Security Interest” means a mortgage, charge, pledge, lien or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect.

  2.2Incurrence of Indebtedness

  For so long as the principal amount outstanding under the Bonds is equal to or exceeds U.S.$5,000,000, the Issuer shall not, and shall procure that its Subsidiaries shall not, at any time permit to create, incur, assume or otherwise become liable in respect of any Financial Indebtedness, contingently or otherwise, other than:

  (a)any existing Financial Indebtedness of the Issuer or any of its Subsidiaries incurred on the date of the Bond Agreement and any modification, extension, exchange or refinancing thereof, provided that the principal amount thereunder shall not be increased;

  (b)the incurrence by the Issuer or any of its Subsidiaries of Financial Indebtedness represented by the Bonds;

  (c)the incurrence by the Issuer or any of its Subsidiaries of Financial Indebtedness in exchange for, or the proceeds of which are used to renew, refund, refinance, replace, exchange, discharge, redeem or refinance in whole or in part, any Financial Indebtedness of the by the Issuer and its Subsidiaries;

  (d)the incurrence by the Issuer or any of its Subsidiaries of any trade or receivables finance Financial Indebtedness in respect of receivables owing to the Issuer or any Subsidiary and payable or dischargeable in accordance with customary trade terms; provided, however, that such trade terms may include such concessionary trade terms as the Issuer or any such Subsidiary deems reasonable under the circumstances;

  (e)the incurrence by the Issuer or any of its Subsidiaries of Financial Indebtedness under Finance Leases of vehicles, plant, equipment or computers;

  40

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  (f)the incurrence by the Issuer or any of its Subsidiaries of hedging obligations not intended for speculative purposes (as determined in good faith by the Issuer);

  (g)the incurrence by the Issuer or any of its Subsidiaries of Financial Indebtedness in respect of letters of credit, bank guarantees, bid, performance, appeal, surety and similar bonds, completion guarantees, judgment, advance payment, customs, VAT 
or similar instruments issued for the account of the Issuer or any of its Subsidiaries in the ordinary course of business

  (h)the incurrence by the Issuer or any of its Subsidiaries of Financial Indebtedness in respect of any customary cash management, cash pooling or netting or setting off arrangements, including customary credit card facilities, entered into in the ordinary course of business;

  (i)the incurrence by the Issuer or any of its Subsidiaries of Financial Indebtedness arising from the honouring by a bank or other financial institution of a cheque, draft or similar instrument inadvertently drawn against insufficient funds, so long as such Indebtedness is covered within five New York business days; and

  (j)the incurrence by the Issuer or any of its Subsidiaries of Financial Indebtedness (other than and in addition to Financial Indebtedness permitted under the foregoing paragraphs) in an aggregate principal amount at any time outstanding not exceeding U.S.$1 million.

  3.Definitions

  In these Conditions, unless otherwise provided:

  “5-Day ADSSO Average Market Price” has the meaning provided in Condition 9.9.

  “10-Day ADSSO Average Market Price” has the meaning provided in Condition 9.9.

  “30-Day Reset Average Market Price” means, in respect of any Reset Date, the arithmetic average (rounded to the nearest integral multiple of $0.0001 (with $0.00005 being rounded upwards)) of the Volume Weighted Average Price of an ADS (translated if necessary into US Dollars at the Prevailing Rate) on each Dealing Day in the relevant Average Market Price Observation Period, provided that:

  (i)if any such Dealing Day falls on or after the Applicable Adjustment Reference Date in respect of any adjustment required to be made to the Conversion Price pursuant to these Conditions (other than an adjustment pursuant to Condition 6.4 or Condition 6.5) and such adjustment is not yet in effect on such Reset Date, the Volume Weighted Average Price on such Dealing Day shall be divided by the adjustment factor (as determined pursuant to these Conditions) applied to the Conversion Price in respect of such adjustment;

  (ii)if any such Dealing Day falls before the Applicable Adjustment Reference Date in respect of any adjustment required to be made to the Conversion Price pursuant to these Conditions (other than an adjustment pursuant to Condition 6.4 or Condition 6.5) and such adjustment is in effect on such Reset Date, the Volume Weighted Average Price on such Dealing Day shall be multiplied by the adjustment factor (as determined pursuant to these Conditions) applied to the Conversion Price in respect of such adjustment; and

  41

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  (iii)if any doubt shall arise as to the calculation of the 30-Day Reset Average Market Price or if the 30-Day Reset Average Market Price cannot be determined as provide d above, the 30-Day Reset Average Market Price shall be equal to such price as is determined in such other manner as an Independent Adviser shall consider to be appropriate to give the intended result.

  “Accelerated Amortisation Payment Date” has the meaning provided in Condition 7.1(c)(ii).

  “Additional ADSs” has the meaning provided in Condition 6.3.

  “Additional Cash Alternative Amount” has the meaning provided in Condition 6.11.

  “Adjustment Reference Date” means, in respect of any adjustment to the Conversion Price pursuant to Condition 6.2, (a) in the case of an adjustment pursuant to Conditions 6.2(a), 6.2(b), 6.2(c), 6.2(d), 6.2(e) or 6.2(i), the relevant record date or other due date for the establishment of entitlement of the relevant event gives to such adjustment and (b) in the case of an adjustment pursuant to Conditions 6.2(f), 6.2(g) or 6.2(h), the relevant date of the first public announcement as is mentioned in Conditions 6.2(f), 6.2(g) or 6.2(h), as the case may be.

  “ADSs” (or an “ADS”) means American Depositary Shares evidenced by ADRs issued pursuant to the Deposit Agreement, with each such ADS representing, as at the Closing Date, two Ordinary Shares.

  “ADS Settlement” has the meaning provided in Condition 9.9.

  “ADS Settlement Liquidity Event” has the meaning provided in Condition 9.9.

  “ADS Settlement Option” means, as the case may be, an Interest ADS Settlement Option or a Principal ADS Settlement Option, as further described in Condition 9.9.

  “ADS Settlement Retroactive Adjustment” has the meaning provided in Condition 9.9.

  “AIM “ means AIM, a market operated by London Stock Exchange plc.

  “Amortisation Payment Date” has the meaning provided in Condition 5.1(a).

  “Amortised Payment Advancement” has the meaning provided in Condition 5.1(a)(ii).

  “Amortised Payment Amount” has the meaning provided in Condition 5.1(a).

  “Amortised Payment Deferral” has the meaning provided in Condition 5.1(a)(i).

  “Applicable Adjustment Reference Date” means, in respect of any adjustment to the Conversion Price pursuant to Condition 6.2, (i) in the case of an adjustment pursuant to Conditions 6.2(a), 6.2(b), 6.2(c), 6.2(d), 6.2(e) or 6.2(i), the relevant Ex-Date of the relevant event in respect of which such adjustment is made and (ii) in the case of an adjustment pursuant to Conditions 6.2(f), 6.2(g) or 6.2(h), the relevant Adjustment Reference Date.

  “Articles of Association” means the articles of association of the Issuer, as amended, supplemented or replaced from time to time.

  42

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  “Average Market Price Observation Period” means:

  (b)in respect of a 5-Day ADSSO Average Market Price, the period of 5 consecutive Dealing Days ending on the Dealing Day immediately preceding the relevant ADSSO Reference Date;

  (c)in respect of a 10-Day ADSSO Average Market Price, the period of 10 consecutive Dealing Days ending on the Dealing Day immediately preceding the relevant ADSSO Reference Date; and

  (d)in respect of a 30-Day Reset Average Market Price, the period of 30 consecutive Dealing Days ending on the Dealing Day immediately preceding the relevant Reset Date.

  “Bondholder” and “holder” mean the person in whose name a Bond is registered in the Register (as defined in the Bond Agreement).

  “Bondholder Reserved Matter” means an amendment or waiver of any term of the Bonds or the Bond Documents which has the effect of changing or which relates to:

  (e)this definition of “Bondholder Reserved Matter” or the definition of “Majority Bondholders”;

  (f)a modification of the date of payment (including any optional redemption pursuant to these Conditions) of any principal, interest, Cash Alternative Amount or other amount payable to a Bondholder under the Bonds or the Bond Documents;

  (g)a variation in the amount or calculation of any payment of principal, interest, Cash Alternative Amount or other amount (including a number of ADSs or Ordinary Shares represented by ADSs) payable or deliverable to a Bondholder under the Bonds or the Bond Documents;

  (h)to modify or cancel the Conversion Rights or the rights of Bondholders to receive ADSs or Ordinary Shares represented by ADSs and/or the Cash Alternative Amount on the exercise of Conversion Rights pursuant to the Conditions, other than pursuant to or as a result of any amendments to the Bond Documents made in order to effect a Conversion Right Transfer or pursuant to a NewCo Scheme Modification and in accordance with these Conditions;

  (i)to increase the Conversion Price, other than in accordance with these Conditions or pursuant to a NewCo Scheme Modification;

  (j)to receive Deliverable ADSs following exercise of an ADS Settlement Option;

  (k)to change the governing law of the Bonds or the Bond Documents;

  (l)a change in currency of payment of any amount under the Bonds or any Bond Document;

  (m)a change to the Issuer other than in accordance with Condition 15;

  (n)a change to any provision which expressly requires the consent of Bondholders; or

  (o)any amendment to the rights of a Bondholder to assign or transfer its rights or obligations under the Bonds and/or the Bond Documents.

  43

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  “Bondholder Taxes” has the meaning provided in Condition 6.10.

  “business day” means, in relation to any place, a day (other than a Saturday or Sunday) on which commercial banks and foreign exchange markets are open for business in that place.

  “Calculation Amount” has the meaning provided in Condition 5.1.

  “Cash Alternative Amount” means, in respect of any exercise of Conversion Rights in respect of which the Issuer shall have made a Cash Alternative Election, an amount in US Dollars calculated by the Calculation Agent (and rounded to the nearest cent, with $0.005 
rounded upwards) in accordance with the following formula and which shall be payable by 
the Issuer to a Bondholder in respect of the relevant Cash Settled ADSs specified in the relevant Cash Alternative Exercise Notice:

  CAA=n=1N1N×S×Pn

  where:

  CAA	=	the Cash Alternative Amount;

  S	=	the Cash Settled ADSs;

  Pn	=	the Volume Weighted Average Price of an ADS (translated if necessary into US Dollars at the Prevailing Rate) on the nth Dealing Day of the Cash Alternative Calculation Period; and

  N	=	10, being the number of Dealing Days in the Cash Alternative Calculation Period,

  Provided that:

  (i)if any Dividend or other entitlement in respect of the Ordinary Shares is announced, (whether on or prior to or after the relevant Conversion Date) in circumstances where the record date or other due date for the establishment of entitlement in respect of such Dividend or other entitlement shall be on or after the relevant Conversion Date and if on any Dealing Day in the Cash Alternative Calculation Period the Volume Weighted Average Price is based on a price ex- such Dividend or ex- such other entitlement, then such price shall be increased by an amount equal to the Fair Market Value of any such Dividend or other entitlement per ADS as at the Ex-Date in respect of such Dividend or entitlement, determined by the Calculation Agent on a gross basis and disregarding any withholding or deduction required to be made for or on account of tax, and disregarding any associated tax credit, all as determined by the Calculation Agent, provided that where such Fair Market Value as aforesaid cannot be determined in accordance with these Conditions before the second Dealing Day before the date on which payment of the Cash Alternative Amount is to be made, the relevant Volume Weighted Average Price as aforesaid shall be adjusted in such manner as determined in good faith to be appropriate by an Independent Adviser no later than such second Dealing Day before such payment date as aforesaid;

   

  44

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  (ii)if any doubt shall arise as to the calculation of the Cash Alternative Amount or if such amount cannot be determined as provided above, the Cash Alternative Amount shall be equal to such amount as is determined in such other manner as an Independent Adviser shall consider in good faith to be appropriate to give the intended result.

  “Cash Alternative Calculation Period” means the period of 10 consecutive Dealing Days commencing on the third Dealing Day following the Cash Election Date.

  “Cash Alternative Election” has the meaning provided in Condition 6.11.

  “Cash Alternative Election Notice” has the meaning provided in Condition 6.11.

  “Cash Election Date” has the meaning provided in Condition 6.11.

  “Cash Settled ADSs” means, in respect of the exercise of Conversion Rights by a Bondholder, such number of ADSs (which shall be a whole number of ADSs and shall not exceed the number of Reference ADSs in respect of such exercise) as determined by the Issuer and notified to the relevant Bondholder in the relevant Cash Alternative Election Notice in accordance with Condition 6.11.

  “Cash Settlement Ratio” means, in respect of an exercise of Conversion Rights the subject of a Cash Alternative Election, such number as is equal to (x) the Cash Settled ADSs in respect of such exercise of Conversion Rights divided by (y) the Reference ADSs in respect of such exercise of Conversion Rights.

  a “Change of Control” shall occur if (i) any person or persons, acting in concert (as defined in the City Code on Takeovers and Mergers), acquire(s) or becomes entitled to control more than 50 per cent. of the votes that may ordinarily be cast on a poll at a general meeting of the Issuer (other than as a result of an Exempt Newco Scheme) or (ii) an offer is made to all (or as nearly as may be practicable all) Shareholders (or all (or as nearly as may be practicable all) such Shareholders other than the offeror and/or any associate (as defined in Section 988(1) of the Companies Act) of the offeror), to acquire all or a majority of the issued ordinary share capital of the Issuer or if any person proposes a Scheme of Arrangement with regard to such acquisition (other than an Exempt Newco Scheme) and (such offer or Scheme of Arrangement having become or been declared unconditional in all respects or having become effective) the right to cast more than 50 per cent. of the votes which may ordinarily be cast on a poll at a general meeting of the Issuer has or will become unconditionally vested in the offeror(s) or any such person and/or any associate (as defined in Section 988(1) of the Companies Act) of the offeror(s) or such person, as the case may be.

  “Change of Control Conversion Price” has the meaning provided in Condition 6.2(j).

  “Change of Control Conversion Right Amendment” has the meaning provided in Condition 11(b)(vii).

  “Closing Date” has the meaning provided in the Bond Agreement, and shall be specified in the Initial Determinations Notice.

  “Closing Price” means, in respect of an ADS or any other Security, Spin-Off Security, 
option, warrant or other right or asset, on any Dealing Day in respect thereof, the closing 
price on the Relevant Stock Exchange in respect thereof (where such Relevant Stock 
 

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  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  Exchange is a Qualifying US Market, in composite transactions) on such Dealing Day of an ADS or, as the case may be, such other Security, Spin-Off Security, option, warrant or other right or asset published by or derived from Bloomberg page HP (or any successor ticker page) (setting Last Price, or any other successor setting and using values not adjusted for any event occurring after such Dealing Day; and for the avoidance of doubt, all values will be determined with all adjustment settings on the DPDF Page, or any successor or similar setting, switched off) in respect of such ADS, such other Security, Spin-Off Security, option, warrant or other right or asset and such Relevant Stock Exchange (all as determined by the Calculation Agent) (and for the avoidance of doubt such Bloomberg code for the ADS in composite transactions as at the Closing Date is “RNLX US <equity>“), if available or, in any other case, such other source (if any) as shall be determined in good faith to be appropriate by an Independent Adviser on such Dealing Day, provided that:

  (p)if on any such Dealing Day (for the purpose of this definition, the “Original Date”) such price is not available or cannot otherwise be determined as provided above, the Closing Price of an ADS, such other Security, Spin-Off Security, option, warrant, or other right or asset, as the case may be, in respect of such Dealing Day shall be the Closing Price, determined by the Calculation Agent as provided above, on the immediately preceding Dealing Day in respect thereof on which the same can be so determined, provided however that if such immediately preceding Dealing Day falls prior to the fifth day before the Original Date, the Closing Price in respect of such Dealing Day shall be considered to be not capable of being determined pursuant to this proviso (a); and

  (q)if the Closing Price cannot be determined as aforesaid, the Closing Price of ADS, such other Security, Spin-Off Security, option, warrant, or other right or asset, as the case may be, shall be determined as at the Original Date by an Independent Adviser in such manner as it shall determine in good faith to be appropriate,

  and the Closing Price determined as aforesaid on or as at any Dealing Day shall, if not in the Relevant Currency, be translated into the Relevant Currency at the Prevailing Rate on such Dealing Day.

  “Companies Act” means the Companies Act 2006.

  “Conversion Date” has the meaning provided in Condition 6.10.

  “Conversion Notice” has the meaning provided in the Bond Agreement.

  “Conversion Period” has the meaning provided in Condition 6.1.

  “Conversion Premium” means 20.00 per cent.

  “Conversion Price” has the meaning provided in Condition 6.1.

  “Conversion Right” has the meaning provided in Condition 6.1.

  “Conversion Right Transfer” has the meaning provided in Condition 6.16.

  “Current Market Price “ means, in respect of an Ordinary Share or an ADS at a particular date, the arithmetic average of the daily Volume Weighted Average Price of an Ordinary Share or an ADS, as applicable, on each of the five consecutive Dealing Days ending on the Dealing Day immediately preceding such date (in respect of an Ordinary Share, divided by the number 

  46

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  of Ordinary Shares represented by an ADS on the relevant Dealing Day), as determined by the Calculation Agent, provided that:

  (r)for the purposes of determining the Current Market Price pursuant to Condition 6.2(d) or 6.2(f) in circumstances where the relevant event relates to an issue of Ordinary Shares, if at any time during the said five dealing-day period (which may be on each of such five Dealing Days) the Volume Weighted Average Price shall have been based on a price ex-Dividend (or ex- any other entitlement) and/or during some other part of that period (which may be on each of such five Dealing Days) the Volume Weighted Average Price shall have been based on a price cum-Dividend (or cum- any other entitlement), in any such case which has been declared or announced, then:

  (i)if the Ordinary Shares to be so issued do not rank for the Dividend (or entitlement) in question, the Volume Weighted Average Price on the dates on which the ADSs shall have been based on a price cum-Dividend (or cum-any other entitlement) shall for the purpose of this definition be deemed to be the amount thereof reduced by an amount equal to the Fair Market Value of any such Dividend or entitlement per ADS as at the Ex-Date in respect of such Dividend or entitlement (or, where on each of the said five Dealing Days the Volume Weighted Average Price shall have been based on a price cum-Dividend (or cum-any other entitlement), as at the date of first public announcement of such Dividend or entitlement), in any such case, determined by the Calculation Agent on a gross basis and disregarding any withholding or deduction required to be made for or on account of tax, and disregarding any associated tax credit; or

  (ii)if the Ordinary Shares to be so issued do rank for the Dividend or entitlement in question, the Volume Weighted Average Price on the dates on which the ADSs shall have been based on a price ex-Dividend (or ex- any other entitlement) shall for the purpose of this definition be deemed to be the amount thereof increased by an amount equal to the Fair Market Value of any such Dividend or entitlement per ADS as at the Ex-Date in respect of such Dividend or entitlement, in any such case, determined by the Calculation Agent on a gross basis and disregarding any withholding or deduction required to be made for or on account of tax, and disregarding any associated tax credit;

  (s)for the purpose of determining the Current Market Price of any Ordinary Shares (including Ordinary Shares represented by ADSs) which may be comprised in a Scrip Dividend, if on any of the said five Dealing Days the Volume Weighted Average Price of an ADS shall have been based on a price cum all or part of such Scrip Dividend, the Volume Weighted Average Price of an ADS on such Dealing Day or Dealing Days shall for the purposes of this definition be deemed to be the amount thereof reduced by an amount equal to the value (as determined in accordance with paragraph (a) of the definition of “Dividend”) of such Scrip Dividend or part thereof per ADS; and

  (t)for any other purpose, if any day during the said five-dealing-day period was the Ex-Date in relation to any Dividend (or any other entitlement) the Volume Weighted Average Prices of an ADS that shall have been based on a price cum- such Dividend (or cum- such entitlement) shall for the purpose of this definition be deemed to be the amount thereof reduced by an amount equal to the Fair Market Value of any such Dividend or entitlement per ADS as at the Ex-Date in respect of such Dividend or entitlement.

   

  47

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  “Dealing Day” means, in respect of the ADSs, other Securities, Spin-Off Securities options, warrants or other rights or assets, a day (other than a Saturday or a Sunday) on which the Relevant Stock Exchange in respect thereof is open for business and on which such ADSs, other Securities, Spin-Off Securities options, warrants or other rights or assets (as the case may be) may be dealt in (other than a day on which such Relevant Stock Exchange is scheduled to or does close prior to its regular weekday closing time), provided that, unless otherwise specified or the context otherwise requires, references to “Dealing Day” shall be a Dealing Day in respect of the ADSs.

  “De-Listing Event” shall occur if, for whatever reason: (i) the ADSs at any time are not admitted to listing and trading on a Qualifying US Market, or (ii) trading of the ADSs on the Relevant Stock Exchange in respect thereof at any time is suspended (provided that trading of the ADSs shall not be considered to be suspended on any day on which a general suspension of trading on such Relevant Stock Exchange has occurred) (x) for a period of 10 or more consecutive Stock Exchange Dealing Days or (y) in circumstances where such suspension is requested by the Issuer in connection with a corporate reorganisation, for a period of 60 or more consecutive Stock Exchange Dealing Days.

  “Deliverable ADSs” has the meaning provided in Condition 9.9.

  “Deposit Agreement” has the meaning given to it in the introductory paragraphs of these Conditions.

  “Depositary” has the meaning given to it in the introductory paragraphs of these Conditions.

  “Dividend” means any dividend or distribution to Shareholders (including a Spin-Off) whether of cash, assets or other property, and however described and whether payable out of a share premium account, profits, retained earnings or any other capital or revenue reserve or account, and including a distribution or payment to Shareholders upon or in connection with a reduction of capital (and for these purposes a distribution of assets includes without limitation an issue of Ordinary Shares (including Ordinary Shares represented by ADSs) or other Securities credited as fully or partly paid up by way of capitalisation of profits or reserves), provided that:

  (u)where a Scrip Dividend is announced, then the Scrip Dividend in question shall be treated as a cash Dividend of an amount equal to the sum of:

  (i)in respect of the portion (if any) of the Scrip Dividend (which may be the whole of the Scrip Dividend) for which a Shareholder or Shareholders may make an election, the value of the option with the highest value, with the value of each option being equal to the value of the relevant property comprising such option as at the Scrip Dividend Valuation Date provided that, in the case of an option comprising more than one type of property, the value of such option shall be equal to the sum of the values of each individual type of property comprising such option, determined as provided below; and

  (ii)in respect of the portion (if any) of the Scrip Dividend (which may be the whole of the Scrip Dividend) which is not subject to such election, the value of such portion as determined as provided below,

  and where the “value” of any property in or comprising of a Scrip Dividend shall be determined as follows:

   

  48

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  (x)	in the case of Ordinary Shares (including Ordinary Shares represented by ADSs) comprised in such Scrip Dividend, the Current Market Price of such Ordinary Shares as at the Scrip Dividend Valuation Date;

  (y)	in the case of cash comprising in such Scrip Dividend, the Fair Market Value of such cash as at the Scrip Dividend Valuation Date; and

  (z)	in the case of any other property or assets comprised in such Scrip Dividend, the Fair Market Value of such other property or assets as at the Scrip Dividend Valuation Date;

  (b)any issue of Ordinary Shares falling within Condition 6.2(a) or Condition 6.2(b) shall be disregarded;

  (c)a purchase or redemption or buy back of share capital of the Issuer (including while represented by ADSs) by or on behalf of the Issuer or any of its Subsidiaries shall not constitute a Dividend unless, in the case of a purchase or redemption or buy back of Ordinary Shares or ADSs by or on behalf of the Issuer or any of its Subsidiaries, the weighted average price per Ordinary Share or ADS (before expenses) on any day (a “Specified Share Day”) in respect of such purchases or redemptions or buy backs (translated, if not in the Relevant Currency, into the Relevant Currency at the Prevailing Rate on such day) exceeds by more than 5 per cent. the Current Market Price of an Ordinary Share or, as the case may be, ADS:

  (i)on the Specified Share Day; or

  (ii)where an announcement (excluding, for the avoidance of doubt for these purposes, any general authority for such purchases, redemptions or buy backs approved by a general meeting of Shareholders or any notice convening such a meeting of Shareholders) has been made of the intention to purchase, redeem or buy back Ordinary Shares and/or ADSs at some future date at a specified price or where a tender offer is made, on the date of such announcement or, as the case may be, on the date of first public announcement of such tender offer (and regardless of whether or not a price per Ordinary Share or ADS, a minimum price per Ordinary Share or ADS or a price range or a formula for the determination thereof is or is not announced at such time),

  in which case such purchase, redemption or buy back shall be deemed to constitute a Dividend in the Relevant Currency in an amount equal to the amount by which the aggregate price paid (before expenses) in respect of such Ordinary Shares or ADSs purchased, redeemed or bought back by or on behalf of the Issuer or, as the case may be, any of its Subsidiaries (translated where appropriate into the Relevant Currency as provided above) exceeds the product of (i) 105 per cent. of such Current Market Price and (ii) the number of Ordinary Shares or ADSs so purchased, redeemed or bought back;

  (d)if the Issuer or any of its Subsidiaries (or any person on its or their behalf) shall purchase, redeem or buy back any depositary or other receipts or certificates representing Ordinary Shares (other than ADSs), the provisions of paragraph (c) above shall be applied in respect thereof in such manner and with such modifications (if any) as shall be determined in good faith by an Independent Adviser;

   

  49

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  (e)where a Dividend in cash is declared which provides for payment by the Issuer in the Relevant Currency (or, in the case of a Scrip Dividend, an amount in cash is or may be paid in the Relevant Currency, whether at the option of Shareholders or otherwise), it shall be treated as a Dividend in cash (or, in the case of a Scrip Dividend, an amount in cash) in such Relevant Currency, and in any other case it shall be treated as a Dividend in cash (or, in the case of a Scrip Dividend an amount in cash) in the currency in which it is payable by the Issuer; and

  (f)a dividend or distribution that is a Spin-Off shall be deemed to be a Dividend paid or made by the Issuer,

  and any such determination shall be made in good faith by the Calculation Agent or, where specifically provided, an Independent Adviser and, in either such case, on a gross basis and disregarding any withholding or deduction required to be made for or on account of tax, and disregarding any associated tax credit.

  “Equity Raise” means the offering and sale by the Company pursuant to a private sale between the Company and prospective investors of certain ADSs representing newly issued Ordinary Shares at a purchase price of U.S.$7.25 per ADS and newly issued Ordinary Shares at a purchase price of U.S.$3.625 and with total gross proceeds of approximately U.S.$8.8 million as described in an announcement made by the Company on 31 March 2022.

  “equity share capital” means (other than for the purposes of Condition 6.2(c)), in relation to any entity, its issued share capital excluding any part of that capital which, neither as respects dividends nor as respects capital, carries any right to participate beyond a specific amount in a distribution.

  “Event of Default” has the meaning provided in Condition 10.

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

  “Ex-Date” means, in relation to any Dividend (including without limitation any Spin-Off), capitalisation, redesignation, reclassification, sub-division, consolidation, issue, grant, offer or other entitlement, unless otherwise defined herein, the first Dealing Day on which the ADSs are traded ex- the relevant Dividend, capitalisation, redesignation, reclassification, sub-division, consolidation, issue, grant, offer or other entitlement on the Relevant Stock Exchange (or, in the case of a Dividend which is a purchase, redemption or buy back of Ordinary Shares (or, as the case may be, any ADSs or other depositary or other receipts or certificates representing Ordinary Shares) pursuant to paragraph (c) (or, as the case may be, paragraph (d)) of the definition of “Dividend”, the date on which such purchase, redemption or buy back is made), and provided that, for the avoidance of doubt, the Ex-Date in respect of a Scrip Dividend shall be deemed to be the Ex-Date in respect of the relevant Dividend or capitalisation as referred to in the definition of “Scrip Dividend”.

  “Exempt Newco Scheme” means a Newco Scheme where, immediately after completion of the relevant Scheme of Arrangement, the ordinary shares or units or equivalent of Newco 
(or depositary or other receipts or certificates representing ordinary shares or units or 
equivalent of Newco) are admitted to trading on a Qualifying US Market or an internationally recognised, regularly operating and regulated stock exchange in the United Kingdom, European Economic Area or the United States.

  50

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  “Fair Market Value” means, on any date (the “FMV Date”):

  (a)in the case of a cash Dividend, the amount of such cash Dividend (determined by reference to the per-ADS amount of such cash Dividend where available), as determined in good faith by the Calculation Agent;

  (b)in the case of any other cash amount, the amount of such cash (determined by reference to the per-ADS amount of such cash Dividend where available), as determined in good faith by the Calculation Agent;

  (c)in the case of Securities (including Ordinary Shares and ADSs), Spin-Off Securities, options, warrants or other rights or assets that are publicly traded on a Relevant Stock Exchange of adequate liquidity (as determined in good faith by the Calculation Agent or an Independent Adviser), the arithmetic mean of:

  (i)in the case of Ordinary Shares or ADSs or (to the extent constituting equity share capital) other Securities or Spin-Off Securities, for which a daily Volume Weighted Average Price (disregarding for this purpose proviso (ii) to the definition thereof) can be determined, such daily Volume Weighted Average Price of the Ordinary Shares or ADSs or such other Securities or Spin-Off Securities; and

  (ii)in any other case, the Closing Price of such Securities, Spin-Off Securities, options, warrants or other rights or assets,

  in the case of both (a) and (b) during the period of five Dealing Days on the Relevant Stock Exchange for such Securities, Spin-Off Securities, options, warrants or other rights or assets commencing on such FMV Date (or, if later, the date (the “Adjusted FMV Date”) which falls on the first such Dealing Day on which such Securities, Spin-Off Securities, options, warrants or other rights or assets are publicly traded, provided that where such Adjusted FMV Date falls after the fifth day following the FMV Date, the Fair Market Value of such Securities, Spin-Off Securities, options, warrants or other rights or assets shall instead be determined pursuant to paragraph (iv) below, and no such Adjusted FMV Date shall be deemed to apply) or such shorter period as such Securities, Spin-Off Securities, options, warrants or other rights or assets are publicly traded, all as determined in good faith by the Calculation Agent,

  (d)in the case of Securities, Spin-Off Securities, options, warrants or other rights or assets that are not publicly traded on a Relevant Stock Exchange of adequate liquidity (as aforesaid) or where otherwise provided in paragraph (c) above to be determined pursuant to this paragraph (d), an amount equal to the fair market value of such Securities, Spin-Off Securities, options, warrants or other rights or assets as determined in good faith by an Independent Adviser, on the basis of a commonly accepted market valuation method and taking account of such factors as it considers appropriate, including the market price per Ordinary Share or ADS, the dividend yield of an Ordinary Share or ADS, the volatility of such market price, prevailing interest rates and the terms of such Securities, Spin-Off Securities, options, warrants or other rights or assets, and including as to the expiry date and exercise price or the like (if any) thereof.

   

  51

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  Such amounts shall (if not expressed in the Relevant Currency on the FMV Date (or, as the case may be, the Adjusted FMV Date)) be translated into the Relevant Currency at the Prevailing Rate on the FMV Date (or, as the case may be, the Adjusted FMV Date), all as determined in good faith by the Calculation Agent.

  In addition, in the case of (a) and (b) above, the Fair Market Value shall be determined on a gross basis and disregarding any withholding or deduction required to be made for or on account of tax, and disregarding any associated tax credit.

  “Final Maturity Date” means the fifth anniversary date of the Closing Date, as specified in the Initial Determinations Notice.

  “Floor Price” has the meaning provided in Condition 6.4.

  “Free Float” means the aggregate number of Ordinary Shares held by each person or “group” of persons within the meaning of Section 13(d) of the Exchange Act, other than the Issuer and its Subsidiaries and any directors or officers thereof, that owns Ordinary Shares representing less than 5 per cent, of the total number of issued and outstanding Ordinary Shares, as determined by an Independent Adviser acting reasonably and in good faith, in consultation with the Issuer and where for the purposes of this definition: (a) references to “Ordinary Shares” shall include Ordinary Shares represented by outstanding ADSs or other depositary receipts or certificates representing Ordinary Shares; (b) Ordinary Shares held by or on behalf of the Depositary from time to time shall be treated as being held by the holder of the relevant ADSs representing such Ordinary Shares, and not by the Depositary; (c) regulated investment funds, collective investment schemes, social security funds or pension funds that own Ordinary Shares representing less than 10 per cent. of the total number of issued and outstanding Ordinary Shares shall be treated as constituting part of the Free Float; (d) Ordinary Shares held by or on behalf of the Issuer or any of its Subsidiaries or any director or officer thereof shall not be treated as constituting part of the Free Float; and (e) regard shall be had to underlying beneficial holdings behind bare nominees (to the extent such information is available upon reasonable investigation).

  A “Free Float Event” shall occur if the number of Ordinary Shares comprising the Free Float on such London and New York business day (as determined by an Independent Adviser acting in good faith) is equal to or less than 20 per cent. of the aggregate number of issued and outstanding Ordinary Shares and where for the purposes of this definition: (a) references to “Ordinary Shares” shall include Ordinary Shares represented by outstanding ADSs or other depositary receipts or certificates representing Ordinary Shares; and (b) Ordinary Shares held by or on behalf of the Depositary from time to time shall be treated as being held by the holder of the relevant ADSs representing such Ordinary Shares, and not by the Depositary on such New York business day. In any such case the Free Float Event shall be deemed to have occurred on such London and New York business day.

  “Further Bonds” means further bonds either having the same terms and conditions in all respects as the outstanding Bonds or having the same terms and conditions in all respects as the outstanding Bonds in all respects except for the first payment of interest on them and the first date on which Conversion Rights may be exercised and so that such further issue shall be consolidated and form a single series with the outstanding Bonds, and in each case which shall be issued only in accordance with Condition 17.

  “Group” means the Issuer and its Subsidiaries taken as a whole.

  “IFRS” means International Financial Reporting Standards.

  52

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  “Independent Adviser” means an independent adviser with appropriate expertise, which may be the Calculation Agent appointed by the Issuer at its own expense and (other than where the initial Calculation Agent is appointed) approved in writing by the Bondholders or, if the Issuer fails to make such appointment and such failure continues for a reasonable period (as determined by the Bondholders, acting reasonably), as may be appointed by the Bondholders (at the expense of the Issuer, and without liability for so doing) following notification to the Issuer, which appointment shall be deemed to be made by the Issuer.

  “Initial Conversion Price” has the meaning provided in Condition 6.1.

  “Initial Determinations Notice” has the meaning provided in Condition 16.

  “Interest ADS Settlement Option” has the meaning provided in Condition 5.1(b).

  “Interest Cash Settlement Option Notice” has the meaning provided in Condition 5.1(b).

  “Interest Payment Date” has the meaning provided in Condition 5.1(a).

  “Interest Period” has the meaning provided in Condition 5.1(a).

  “Majority Bondholders” means, at any time, holders of more than 50 per cent. of the principal amount of the Bonds outstanding.

  “Market Price” means the Volume Weighted Average Price of an ADS on the relevant Reference Date (translated if necessary into US Dollars at the Prevailing Rate on the Reference Date), provided that if any Dividend or other entitlement in respect of the Ordinary Shares is announced, whether on or prior to or after the relevant Conversion Date, in circumstances where the record date or other due date for the establishment of entitlement of holders of ADSs in respect of such Dividend or other entitlement shall be on or after the Conversion Date and if, on the relevant Reference Date, the Volume Weighted Average Price of an ADS is based on a price ex-Dividend or ex- any other entitlement, then such Volume Weighted Average Price shall be increased by an amount equal to the Fair Market Value (translated into US Dollars at the Prevailing Rate on the Reference Date) of such Dividend or entitlement per ADS as at the date of first public announcement of such Dividend or entitlement (or if that is not a Dealing Day, the immediately preceding Dealing Day), as determined in good faith by the Calculation Agent on a gross basis and disregarding any withholding or deduction required to be made for or on account of tax, and disregarding any associated tax credit) and provided that, for the avoidance of doubt, there shall be no double-counting in respect of any Dividend or entitlement.

  “Material Subsidiary” means at any relevant time a Subsidiary of the Issuer:

  (e)whose total assets, revenues or profits before taxation (where the Subsidiary in question prepares consolidated accounts, whose total consolidated assets or gross consolidated revenues, as the case may be) attributable to the Issuer represent more than 10 per cent. of the total assets, revenues or profits before taxation of the Issuer, all as calculated by reference to the then latest audited accounts (or consolidated accounts, as the case may be) of such Subsidiary and the then latest audited consolidated accounts of the Issuer and its consolidated Subsidiaries; or

  (f)to which is transferred all or substantially all of the assets and undertaking of a Subsidiary which immediately prior to such transfer is a Material Subsidiary.

  “Newco Scheme” means a Scheme of Arrangement:

   

  53

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  (g)which effects the interposition of a limited liability company (“Newco”) between the Shareholders immediately prior to the Scheme of Arrangement (the “Existing Shareholders”) and the Issuer; or

  (h)pursuant to which Newco acquires all the outstanding Ordinary Shares and shares of one or more other entities in exchange for the issue of Exchange Securities to the Existing Shareholders and the issue of Exchange Securities (and, if applicable, such other consideration) to some or all of the holders of such shares (“Existing Shares”) of such other entity or entities (“Existing Holders”) immediately prior to the Scheme of Arrangement,

  provided that:

  (i)in the case of paragraphs (a) and (b) (except for a nominal holding by initial subscribers) Exchange Securities are only issued to Existing Shareholders and (in the case of paragraph (b) above) Existing Holders;

  (ii)immediately after completion of the Scheme of Arrangement, Newco is (or one or more wholly-owned Subsidiaries of Newco are) the only shareholder (or shareholders) of the Issuer;

  (iii)all Subsidiaries of the Issuer immediately prior to the Scheme of Arrangement (other than (A) Newco, if Newco is then a Subsidiary of the Issuer; or (B) any other Subsidiary of the Issuer or Subsidiaries of the Issuer being disposed of or demerged (or similar) in whole or in part for value on an arms’ length basis in connection with the Newco Scheme) are Subsidiaries of the Issuer (or of Newco) immediately after completion of the Scheme of Arrangement and at such time the Issuer (or Newco) holds, directly or indirectly, the same percentage of the ordinary share capital and equity share capital of those Subsidiaries as was held by the Issuer immediately prior to the Scheme of Arrangement; and

  (iv)no person or persons acting in concert (as defined in the City Code on Takeovers and Mergers) shall, as a result of the Newco Scheme (A) own, acquire or control (or have the right to own, acquire or control) the right to cast more than 50 per cent. of the votes which may ordinarily be cast on a poll at a general meeting of Newco; or (B) own, acquire or control (or have the right to own, acquire or control) more than 50 per cent. of the issued ordinary shares of Newco; or (C) obtain the power to appoint and/or remove all or a majority of the members of the board of directors of Newco,

  and for the purposes of this definition “Exchange Securities” means ordinary shares, units or equivalent of Newco or depositary receipts or certificates representing ordinary shares, units of equivalent of Newco.

  “Newco Scheme Modification” means amendments to these Conditions, the Bond Documents or the Bonds which are made pursuant to or in accordance with the provisions of Condition 6.16 in order to effect a Conversion Right Transfer or Condition 11(g) following or as part of a Newco Scheme (and subject to and in accordance with Condition 15).

  “Notice Business Day” means a day which is a business day in each of London and New York.

  “Offer Period” has the meaning provided in Condition 9.9(c).

  54

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  “Ordinary Shares” means fully paid ordinary shares in the capital of the Issuer with, on the Closing Date, a nominal amount of £0.0025 each.

  “outstanding” means, in relation to the Bonds, all Bonds issued except (a) those which have been redeemed in accordance with these Conditions, (b) those in respect of which Conversion Rights have been exercised and the Issuer’s obligations to issue and/or deliver Ordinary Shares (and/or, in the case of a Cash Alternative Election, the Issuer’s obligation to pay the Cash Alternative Amount (and Additional Cash Alternative Amount, if any)) have been duly performed, (c) those in respect of which the date for redemption has occurred and the redemption moneys (including all interest accrued on such Bonds to the date for such redemption and any interest payable under Condition 5 after such date) have been duly paid to the relevant Bondholder and for any obligations to issue or deliver Ordinary Shares or ADSs have been performed, and (d) those which have been purchased and cancelled as provided in Condition 7; provided that for the purposes of (1) ascertaining the right to vote on any voting matters pursuant to Condition 14, (2) the determination of how many and which Bonds are outstanding for the purposes of Conditions 10 and 14, and (3) the exercise of any discretion, power or authority which each Bondholder is required, expressly or impliedly, to exercise, those Bonds which are beneficially held by or on behalf of the Issuer or any member of the Group or any of their respective affiliates and not cancelled shall (unless no longer so held) be deemed not to remain outstanding.

  “Payment Details” means, with respect to each Bondholder, the instructions provided by it to the Issuer for the payment to the Bondholder of US Dollar cash payments and issue or delivery to the Bondholder of ADSs (and which shall, for so long as the ADSs are held through DTS, include DTS account details), and which may be updated by a Bondholder at any time by giving notice to the Issuer.

  “Permitted Cessation of Business” has the meaning provided in Condition 6.16.

  a “person” includes any individual, company, corporation, firm, partnership, joint venture, trust, undertaking, association, organisation, or state or agency of a state or any political subdivisions thereof (in each case whether or not being a separate legal entity).

  “Physically Settled ADSs” means, in respect of any exercise of Conversion Rights, (i) the Reference ADSs or (ii) where such exercise is the subject of a Cash Alternative Election, such number of ADSs (which may be equal to zero) as is equal to the Reference ADSs minus the Cash Settled ADSs.

  “Potential Event of Default” means an event or circumstance which could, with the giving of notice, lapse of time, issue of a certificate and/or fulfilment of any other requirement provided for in Condition 10, become an Event of Default.

  “Prevailing Rate” means, in respect of any pair of currencies on any day, the spot mid-rate of exchange between the relevant currencies prevailing as at 4.00p.m. (London time) on that date (for the purpose of this definition, the “Original Date”) as appearing on or derived from Bloomberg page BFIX (or any successor page) in respect of such pair of currencies, or, if such a rate cannot be so determined, the rate prevailing as at 4.00p.m. (London time) on the immediately preceding day on which such rate can be so determined, provided that if such immediately preceding day falls earlier than the fifth day prior to the Original Date or if such rate cannot be so determined (all as determined in good faith by the Calculation Agent), the Prevailing Rate in respect of the Original Date shall be the rate determined in such other manner as an Independent Adviser shall consider appropriate.

  “Principal ADS Settlement Option” has the meaning provided in Condition 7.1(b).

  55

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  “Principal Cash Settlement Option Notice” has the meaning provided in Condition 5.1(b).

  “Qualifying US Market” means each of the NASDAQ Capital Market, NASDAQ Global Market, NASDAQ Select Market, New York Stock Exchange or NYSE American (or any of their respective successors).

  “Record Date” has the meaning provided in Condition 9.3.

  “Reference Date” means, in relation to a Retroactive Adjustment or an ADS Settlement Retroactive Adjustment, the date as of which the relevant Retroactive Adjustment or, as the case may be, the relevant ADS Settlement Retroactive Adjustment takes effect or, in any such case, if that is not a Dealing Day, the next following Dealing Day.

  “Reference ADS Price “ means U.S.$7.25.

  “Reference ADSs” means, in respect of the exercise of Conversion Rights by a Bondholder, the number of ADSs (rounded down, if necessary, to the nearest whole number) determined in good faith by the Calculation Agent by dividing the principal amount of the Bonds which are the subject of the relevant exercise of Conversion Rights by the Conversion Price in effect on the relevant Conversion Date, except that where the Conversion Date falls on or after the date an adjustment to the Conversion Price takes effect pursuant to Conditions 6.2(a), 6.2(b), 6.2(c), 6.2(d), 6.2(e) or 6.2(i) but on or prior to the record date or other due date for establishment of entitlement in respect of the relevant event giving rise to such adjustment, then the Conversion Price in respect of such exercise shall be such Conversion Price as would have been applicable to such exercise had no such adjustment been made.

  “Relevant Currency” means, at any time, the currency in which the ADSs are quoted or dealt in at such time on the Relevant Stock Exchange in respect thereof.

  “Relevant Date” means, in respect of any Bond, whichever is the later of:

  (i)the date on which payment in respect of it first becomes due; and

  (j)if any amount payable is improperly withheld or refused, the date on which payment in full of the amount outstanding is made to Bondholders.

  A “Relevant Event” shall occur upon the occurrence of any of the following:

  (k)a Change of Control; or

  (l)a De-Listing Event; or

  (m)a Free Float Event.

  “Relevant Event Notice” has the meaning provided in Condition 6.9.

  “Relevant Event Period” means the period commencing on the date on which a Relevant Event occurs and ending 60 calendar days following such date or, if later, 60 calendar days following the date on which a Relevant Event Notice is given to Bondholders as required by Condition 6.9 or, in any such case, if that is not a Notice Business Day, the next following Notice Business Day.

  “Relevant Event Put Date” has the meaning provided in Condition 7.2.

  56

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  “Relevant Stock Exchange” means:

  (n)in respect of the ADSs, NASDAQ Global Market or, if at the relevant time the ADSs are not at that time listed and admitted to trading on NASDAQ Global Market, the principal stock exchange or securities market on which the ADSs are then listed and admitted to trading;

  (o)in respect of the Ordinary Shares, AIM or, if at the relevant time the Ordinary Shares are not at that time admitted to trading on AIM, the principal stock exchange or securities market on which the Ordinary Shares are then listed, admitted to trading or quoted or dealt in, if applicable; and

  (p)in respect of any Securities (other than ADSs), Spin-Off Securities, options, warrants or other rights or assets, the principal stock exchange or securities market on which such Securities, Spin-Off Securities, options, warrants or other rights or assets are then listed and admitted to trading,

  where “principal stock exchange or securities market” shall mean the stock exchange or securities market on which such ADSs, Ordinary Shares, such other Securities, Spin-Off Securities, options, warrants or other rights or assets are listed and admitted to trading, provided that if such ADSs, Ordinary Shares, such other Securities, Spin-Off Securities, options, warrants or other rights or assets are listed and admitted to trading (as the case may be) on more than one stock exchange or securities market at the relevant time, then “principal stock exchange or securities market” shall mean that stock exchange or securities market on which such ADSs, Ordinary Shares, such other Securities, Spin-Off Securities, options, warrants or other rights or assets are then traded as determined by the Calculation Agent (if the Calculation Agent determines that it is able to make such determination) or (in any other case) by an Independent Adviser by reference to the stock exchange or securities market with the highest average daily trading volume in respect of such ADSs, Ordinary Shares, such other Securities, Spin-Off Securities, options, warrants or other rights or assets.

  “Reset Conversion Price” has the meaning provided in Condition 6.4.

  “Reset Date” has the meaning provided in Condition 6.4.

  “Reset Price Floor” has the meaning provided in Condition 6.4.

  A “Retroactive Adjustment” shall occur if the Conversion Date in relation to the conversion of any Bond shall be (i) after the date which is the record date in respect of any consolidation, reclassification, redesignation or sub-division as is mentioned in Condition 6.2(a), or which is the record date or other due date for the establishment of entitlement for any such issue, distribution, grant or offer (as the case may be) as is mentioned in Condition 6.2(b), 6.2(c), 6.2(d), 6.2(e) or 6.2(i), or which is the date of the first public announcement of the terms of any such issue or grant as is mentioned in Condition 6.2(f) and 6.2(g) or of the terms of any such modification as is mentioned in Condition 6.2(h); and (ii) before the relevant adjustment to the Conversion Price becomes effective under Condition 6.2.

  “Scheduled Amortisation Payment Date” has the meaning provided in Condition 5.1(a).

  “Scheme of Arrangement” means a scheme of arrangement, share for share exchange or analogous procedure.

  57

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  “Scrip Dividend” means:

  (q)a Dividend in cash which is to be satisfied, or a Dividend in cash which may at the election of a Shareholder or Shareholders be satisfied, in whole or in part, by the 
issue or delivery of Ordinary Shares (including Ordinary Shares represented by ADSs) and/or other property or assets; or

  (r)an issue of Ordinary Shares (including Ordinary Shares represented by ADSs) or other property or assets by way of a capitalisation of profits or reserves (including any share premium account or capital redemption reserve, and whether described as a scrip or share dividend or distribution or otherwise) which is to be satisfied, or which may at the election of a Shareholder or Shareholders be satisfied, in whole or in part, by the payment of cash.

  “Scrip Dividend Valuation Date” means:

  (s)in respect of any portion of a Scrip Dividend for which a Shareholder or Shareholders may make an election, the later of (i) the Ex-Date in relation to the relevant dividend or capitalisation, (ii) the last day on which the relevant election can be made by such Shareholder or Shareholders, and (iii) the date on which the number of Ordinary Shares, amount of cash, or amount of other property or assets, as the case may be, which may be issued or delivered is publicly announced; or

  (t)in respect of any portion of a Scrip Dividend which is not subject to such election, the later of (i) the Ex-Date in relation to the relevant dividend or capitalisation and (ii) the date on which the number of Ordinary Shares (including Ordinary Shares represented by ADSs), amount of cash or amount of such other property or assets, as the case may be, to be issued and delivered is publicly announced.

  “Securities” means any equity securities including, without limitation, Ordinary Shares, ADSs and any other shares in the capital of the Issuer, and options, warrants or other rights to subscribe for or purchase or acquire Ordinary Shares or ADSs or any other shares in the capital of the Issuer.

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

  “Shareholders” means the holders of Ordinary Shares (including Ordinary Shares represented by ADSs).

  “Specified Date” has the meaning provided in Conditions 6.2(f), 6.2(g) and 6.2(h).

  “Specified Taxes” has the meaning provided in Condition 6.10.

  “Spin-Off” means:

  (u)a distribution of Spin-Off Securities by the Issuer to Shareholders as a class; or

  (v)any issue, transfer or delivery of any property or assets (including cash or shares or other securities of or in or issued or allotted) by any entity (other than the Issuer) to Shareholders as a class or, in the case of or in connection with a Scheme of Arrangement, Existing Shareholders as a class (but excluding the issue and allotment of ordinary shares (or depositary or other receipts or certificates representing such ordinary shares) by Newco to Existing Shareholders as a class), pursuant in each case to any arrangements with the Issuer or any of its Subsidiaries.

  58

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  “Spin-Off Securities” means equity share capital of an entity other than the Issuer or options, warrants or other rights to subscribe for or purchase equity share capital of an entity other than the Issuer.

  “Stock Exchange Dealing Day” means a day (other than a Saturday or a Sunday) on which the Relevant Stock Exchange in respect of the ADSs is open for business (whether or not such day is a Dealing Day) (other than a day on which such Relevant Stock Exchange is scheduled to or does close prior to its regular weekday closing time).

  “Subsidiary” means a subsidiary undertaking within the meaning of section 1162 of the Companies Act 2006 as if the words “is a member of the undertaking and” had been deleted from subsections 1162(2)(b) and (d).

  “Successor in Business” has the meaning provided in Condition 6.16.

  “Volume Weighted Average Price” means, in respect of an ADS, such other Security or, as the case may be, a Spin-Off Security, on any Dealing Day in respect thereof, the volume weighted average price on such Dealing Day on the Relevant Stock Exchange (where the Relevant Stock Exchange is a Qualifying US Market, in composite transactions) on such Dealing Day of an ADS, such other Security or, as the case may be, a Spin-Off Security, as published by or derived from Bloomberg page HP (or any successor page) (setting Weighted Average Line or any other successor setting and using values not adjusted for any event occurring after such Dealing Day; and for the avoidance of doubt, all values will be determined with all adjustment settings on the DPDF Page, or any successor or similar setting, switched off) in respect of such ADS, such other Security, or, as the case may be, Spin-Off Security and such Relevant Stock Exchange (and for the avoidance of doubt such Bloomberg code for the ADSs in composite transactions as at the Closing Date is “RNLX US <equity>“ and for the Ordinary Shares on their Relevant Stock Exchange as at the Closing Date is “RENX LN <equity>“) if available or, in any other case, such other source (if any) as shall be determined in good faith to be appropriate by an Independent Adviser on such Dealing Day provided that:

  (w)if on any such Dealing Day (for the purposes of this definition, the “Original Date”) such price is not available or cannot otherwise be determined as provided above, the Volume Weighted Average Price of an ADS, an Ordinary Share, such other Security or Spin-Off Security, as the case may be, in respect of such Dealing Day shall be the Volume Weighted Average Price, determined as provided above, on the immediately preceding Dealing Day in respect thereof on which the same can be so determined, provided however that if such immediately preceding Dealing Day falls prior to the fifth day before the Original Date, the Volume Weighted Average Price in respect of such Dealing Day shall be considered to be not capable of being determined pursuant to this proviso (a); and

  (x)if the Volume Weighted Average Price cannot be determined as aforesaid, the Volume Weighted Average Price of an ADS, an Ordinary Share, such other Security or Spin-Off Security, as the case may be, shall be determined as at the Original Date by an Independent Adviser in such manner as it shall determine in good faith to be appropriate,

  and the Volume Weighted Average Price determined as aforesaid on or as at any Dealing Day shall, if not in the Relevant Currency, be translated into the Relevant Currency at the Prevailing Rate on such Dealing Day.

  “Voting Rights” means in relation to any entity the right generally to vote at a general meeting of Shareholders of such entity (irrespective of whether or not, at the time, stock of any other 

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  class or classes shall have, or might have, voting power by reason of the happening of any contingency) or to elect the majority of the members of the board of directors or other governing body of such entity.

   

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  “£” means the lawful currency for the time being of the United Kingdom.

  “$”, “U.S.$”, “USD” and “US Dollar” means the lawful currency for the time being of the United States.

  References to any act or statute or any provision of any act or statute shall be deemed also to refer to any statutory modification or re-enactment thereof or any statutory instrument, order or regulation made thereunder or under such modification or re-enactment.

  References to any issue or offer or grant to Shareholders or Existing Shareholders “as a class” or “by way of rights” shall be taken to be references to an issue or offer or grant to all or substantially all Shareholders or Existing Shareholders, as the case may be, other than Shareholders or Existing Shareholders, as the case may be, to whom, by reason of the laws of any territory or requirements of any recognised regulatory body or any other stock exchange or securities market in any territory or in connection with fractional entitlements, it is determined not to make such issue or offer or grant.

  In making any calculation or determination of 5-Day ADSSO Average Market Price, 10-Day ADSSO Average Market Price, 30-Day Reset Average Market Price Closing Price, Current Market Price or Volume Weighted Average Price, such adjustments (if any) shall be made in good faith and as the Calculation Agent or an Independent Adviser considers appropriate to reflect any change in the number of Ordinary Shares represented by an ADS or any consolidation or sub-division of the Ordinary Shares or any issue of Ordinary Shares by way of capitalisation of profits or reserves, or any like or similar event.

  For the purposes of Conditions 6.1, 6.2, 6.3, 6.10 and 6.12 and Condition 11 only, (i) references to the “issue” of ADSs or Ordinary Shares or ADSs or Ordinary Shares being “issued” shall include the transfer and/or issue and delivery of ADSs or Ordinary Shares (including without limitation Ordinary Shares represented by ADSs), whether newly issued and allotted or previously existing or held by or on behalf of the Issuer or any of its Subsidiaries, and (ii) Ordinary Shares (including without limitation Ordinary Shares represented by ADSs) held by or on behalf of the Issuer or any of its Subsidiaries (and which, in the case of Condition 6.2(d), do not rank for the relevant right or other entitlement) shall not be considered as or treated as “in issue” or “issued”, or entitled to receive the relevant Dividend, right or other entitlement.

  4.Registration and Transfer of Bonds

  4.1Registration

  The Issuer will keep or will cause to be kept a Register as provided in Clause 5 (Register and Title) of the Bond Agreement.

  4.2Transfer

  Bonds may be transferred in accordance with the provisions of Clauses 5 (Register and Title) and 11 (Transfer of Rights and Obligations) of the Bond Agreement.

  5.Interest

  5.1Interest Rate

  (a)Interest Rate

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  The Bonds bear interest from (and including) the Closing Date at the rate of 5.5 per cent. per annum (the “Rate of Interest”) payable quarterly in arrear in equal instalments of $13.75 per each $1,000 (the “Calculation Amount”) in principal amount of the Bonds outstanding on the date falling three months after the Closing Date and on each three-month anniversary date thereof (each such date, an “Interest Payment Date”, as specified in the Initial Determinations Notice), with the final Interest Payment Date falling on the Final Maturity Date.

  The amount of interest payable per each Calculation Amount in principal amount of the Bonds outstanding in respect of any period which is shorter than an Interest Period shall be calculated by the Calculation Agent as the product (rounded to nearest integral multiple of $0.01 (with $0.005 being rounded upwards)) of: (i) the Calculation Amount; (ii) the Rate of Interest; and (iii) a fraction, the numerator of which is the number of days in the relevant period and the denominator of which is the product of (A) the number of days from (and including) the immediately preceding Interest Payment Date (or, if none, the Closing Date) to (but excluding) the next Interest Payment Date and (B) 4, being the number of Interest Periods normally ending in any year.

  “Interest Period” means the period beginning on (and including) the Closing Date and ending on (but excluding) the first Interest Payment Date and each successive period beginning on (and including) an Interest Payment Date and ending on (but excluding) the next succeeding Interest Payment Date.

  (b)Deemed Interest ADS Settlement Option Exercise

  In respect of the interest payment due on each Interest Payment Date, the Issuer shall be deemed to have exercised its option (the “Interest ADS Settlement Option”) to make payment of the relevant interest amount by the issue or transfer and delivery of Deliverable ADSs (and, if applicable, Additional Deliverable ADSs) to Bondholders with respect to all, and not some only, of the Bonds subject to and in accordance with the provisions of Condition 9.9, except if (i) the Issuer shall elect (in its sole discretion), by giving notice thereof (an “Interest Cash Settlement Option Notice”) (which notice shall be irrevocable) to Bondholders in accordance with Condition 16 at least two Notice Business Days prior to such Interest Payment Date, to satisfy its obligation to make payment on such Interest Payment Date pursuant to this Condition 5.1 by paying in cash, or (ii) an ADS Settlement Liquidity Event is occurring or occurs prior to the issue or transfer and delivery of the relevant Deliverable ADSs (in which case, in the case of (i) or (ii) the interest payment shall be paid by the Issuer in cash).

  5.2Accrual of Interest

  Each Bond will cease to bear interest (i) where the Conversion Right shall have been exercised by a Bondholder, from the Interest Payment Date immediately preceding the relevant Conversion Date or, if none, the Closing Date (subject in any such case as provided in Condition 6.13) or (ii) where such Bond is redeemed or repaid pursuant to Condition 7 or Condition 10 from the due date for redemption or repayment thereof unless payment of principal is improperly withheld or refused or, following any election by the Issuer to exercise the ADS Settlement Option, the Issuer fails duly to perform its obligations to issue and deliver the Deliverable ADSs in accordance with Condition 9.9, in which event interest will continue to accrue at the rate specified in Condition 5.1 (both before and after judgment) up to, but excluding, the Relevant Date or, as the case may be, until such issue and delivery of Deliverable ADSs is duly made in accordance with Condition 9.9.

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  6.Conversion of Bonds

  6.1Conversion Period and Conversion Price

  Subject to the right of the Issuer to make a Cash Alternative Election and as otherwise provided in these Conditions, each Bond shall entitle the holder to convert each principal amount of such Bond which is outstanding into new and/or existing ADSs representing Ordinary Shares (or representing rights to receive Ordinary Shares, such Ordinary Shares being issued to and held by the Depositary) as determined by the Issuer, credited as fully paid (a “Conversion Right”).

  The number of ADSs to be issued and/or transferred and delivered on exercise of a Conversion Right (subject to the right of the Issuer to make a Cash Alternative Election) shall be equal to the Reference ADSs in respect of such exercise, subject to Condition 6.3.

  The “Conversion Price” is initially U.S.$8.70 (the “Initial Conversion Price”). The Conversion Price is subject to adjustment in the circumstances described in Condition 6.2, Condition 6.4 and Condition 6.5.

  Subject to and as provided in these Conditions, the Conversion Right in respect of a Bond may be exercised, at the option of the holder thereof, at any time subject to any applicable fiscal or other laws or regulations and as hereinafter provided from (and including) the 41 st day after the Closing Date to (and including) the date falling five London and New York business days prior to the Final Maturity Date, unless there shall be a default in making payment in respect of such Bond on any such date fixed for redemption, in which event the Conversion Right shall extend up to (and including) the date on which the full amount of such payment becomes available for payment and notice of such availability has been given to Bondholders or, if earlier, the Final Maturity Date; provided that, in each case, if such final date for the exercise of Conversion Rights is not a London and New York business day, then the period for exercise of Conversion Rights by Bondholders shall end on (and including) the immediately preceding London and New York business day.

  The period during which Conversion Rights may (subject as provided below) be exercised by a Bondholder is referred to as the “Conversion Period”.

  Fractions of ADSs will not be issued or transferred and delivered on exercise of Conversion Rights or pursuant to Condition 6.3 and no cash payment or other adjustment will be made in lieu thereof. However, if the Conversion Right in respect of more than one Bond is exercised at any one time such that ADSs to be issued and/or transferred and delivered on conversion or pursuant to Condition 6.3 are to be registered in the same name, the number of such ADSs to be issued and/or transferred and delivered in respect thereof shall, in accordance with the definition of “Reference ADSs”, be calculated by the Calculation Agent on the basis of the aggregate principal amount of such Bonds being so converted and rounded down to the nearest whole number of ADSs.

  Conversion Rights may not be exercised (i) following the giving of notice by the holders of at least one-quarter in principal amount of the Bonds then outstanding pursuant to Condition 10; (ii) in respect of a Bond in respect of which the relevant holder has exercised its right to require the Issuer to redeem pursuant to Condition 7.2; or (iii) in the period from the Record Date immediately preceding an Interest Payment Date or Amortisation Payment Date until such Interest Payment Date or Amortisation Payment Date (both dates inclusive).

  Subject to the right of the Issuer to make a Cash Alternative Election, the Issuer will procure that ADSs to be issued and/or transferred and delivered on exercise of Conversion Rights 
 

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  will be issued and/or transferred and delivered to, or to the order of, the holder of the Bonds in accordance with the Payment Details in accordance with the provisions of Condition 6.10. Such ADSs will be deemed to be issued and/or transferred and delivered as of the relevant Conversion Date. Any Additional ADSs to be issued and/or transferred and delivered pursuant to Condition 6.3 will be deemed to be issued and/or transferred and delivered as of the relevant Reference Date.

  Where there is any change to the number of Ordinary Shares represented by each ADS, or where following a change in the Relevant Stock Exchange for the Shares or otherwise the Ordinary Shares are no longer represented by ADSs but are instead represented by depositary or other receipts or certificates which are not ADSs, such modification shall be made to the operation of these Conditions, including without limitation, the adjustment provisions as is appropriate to give the intended result, as determined by an Independent Adviser or (if the Calculation Agent determines in its sole discretion it is capable of making such determination in its capacity as Calculation Agent) the Calculation Agent.

  The Bondholder covenants that neither it nor any person acting on its behalf or pursuant to any understanding with it will deliver the ADSs received pursuant to conversion of the Bonds (including ADSs received pursuant to any ADS Settlement Option) to close out or repay the borrow associated with any Short Sale executed by it, except in compliance with applicable law. “Short Sales” include, without limitation, all “short sales” as defined in Rule 200 of Regulation SHO promulgated under the Exchange Act, and all types of direct and indirect stock pledges, forward sale contracts, options, puts, calls, short sales, swaps, derivatives and similar arrangements (including on a total return basis), and sales and other transactions through non-U.S. broker-dealers or foreign regulated brokers.

  Prior to the 41st day after the Closing Date, no offer or sale of Bonds may be made, and no transfer of the Bonds will be effected, except in compliance with Rule 903 or Rule 904 of Regulation S, pursuant to registration of the Bonds under the Securities Act or pursuant to an available exemption from the registration requirements of the Securities Act.

  6.2Adjustment of Conversion Price

  Subject to the provisions of this Condition 6, upon the occurrence of any of the events described below, the Conversion Price shall be adjusted by the Calculation Agent as follows:

  (a)Consolidation, reclassification, redesignation or subdivision

  If and whenever there shall be a consolidation, reclassification, redesignation or subdivision affecting the number of Ordinary Shares in issue, the Conversion Price shall be adjusted by multiplying the Conversion Price in force immediately prior to the Effective Date by the following fraction:

   

  where:

  A	is the aggregate number of Ordinary Shares in issue immediately before such consolidation, reclassification, redesignation or subdivision, as the case may be;

   

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  B	is the aggregate number of Ordinary Shares in issue immediately after, and as a result of, such consolidation, reclassification, redesignation or subdivision, as the case may be;

  C	is the number of Ordinary Shares represented by an ADS following or as a result or consequence of such consolidation, reclassification, redesignation or subdivision, as the case may be; and

  D	is the number of Ordinary Shares represented by an ADS immediately prior to such consolidation, reclassification, redesignation or subdivision, as the case may be.

  Such adjustment shall become effective on the Effective Date.

  “Effective Date” means, in respect of this paragraph (a), the date on which the consolidation, reclassification, redesignation or sub-division, as the case may be, takes effect.

  (b)Capitalisation of profits or reserves

  If and whenever the Issuer shall issue any Ordinary Shares credited as fully paid to Shareholders by way of capitalisation of profits or reserves, including any share premium account or capital redemption reserve (other than an issue of Ordinary Shares constituting a Scrip Dividend) the Conversion Price shall be adjusted by multiplying the Conversion Price in force immediately prior to the Effective Date by the following fraction:

   

  where:

  A	is the aggregate number of Ordinary Shares in issue immediately before such issue;

  B	is the aggregate number of Ordinary Shares in issue immediately after such issue;

  C	is the number of Ordinary Shares represented by an ADS following or as a result or consequence of such issue of Ordinary Shares; and

  D	is the number of Ordinary Shares represented by an ADS immediately prior to such issue of Ordinary Shares.

  Such adjustment shall become effective on the Effective Date.

  “Effective Date” means, in respect of this paragraph (b), the date of issue of such Ordinary Shares.

  (c)Dividends

   

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  where:

  A	is the Current Market Price of one Ordinary Share on the Ex-Date in respect of such Dividend; and

  B	is the portion of the Fair Market Value of the aggregate Dividend attributable to one Ordinary Share, with such portion being determined by dividing the Fair Market Value of the aggregate Dividend by the number of Ordinary Shares entitled to receive the relevant Dividend (or, in the case of a purchase, redemption or buy back of Ordinary Shares, ADSs or any depositary or other receipts or certificates representing Ordinary Shares by or on behalf of the Issuer or any Subsidiary of the Issuer, by the number of Ordinary Shares in issue immediately following such purchase, redemption or buy back, and treating as not being in issue any Ordinary Shares, or any Ordinary Shares represented by ADSs or other depositary or other receipts or certificates, purchased, redeemed or bought back).

  Such adjustment shall become effective on the Effective Date.

  “Effective Date” means, in respect of this paragraph (c)(i), the later of (A) the Ex-Date in respect of such `Dividend and (B) the first date upon which the Fair Market Value of the relevant Dividend is capable of being determined as provided herein.

  (i)For the purposes of the above, Fair Market Value shall (subject as provided in the definition of “Dividend” and in the definition of “Fair Market Value”) be determined as at the Ex-Date in respect of the relevant Dividend.

  (d)Rights issues

  If and whenever the Issuer or any Subsidiary of the Issuer or (at the direction or request or pursuant to any arrangements with the Issuer or any Subsidiary of the Issuer) any other company, person or entity shall issue any Ordinary Shares to Shareholders as a class by way of rights, or shall issue or grant to Shareholders as a class by way of rights, any options, warrants or other rights to subscribe for or purchase or otherwise acquire any Ordinary Shares, or any other Securities which by their terms of issue carry (directly or indirectly) rights of conversion into, or exchange or subscription for, or the right to otherwise acquire, any Ordinary Shares (or shall grant any such rights in respect of existing Securities so issued), in each case at a consideration receivable per Ordinary Share (based, where appropriate, on such number of Ordinary Shares as is determined pursuant to the definition of “C” and the proviso below) which is less than 95 per cent. of the Current Market Price per Ordinary Share on the Ex-Date in respect of the relevant issue or grant, the Conversion Price shall be adjusted by multiplying the Conversion Price in force immediately prior to the Effective Date by the following fraction:

   

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  where:

  A	is the number of Ordinary Shares in issue on such Ex-Date;

  B	is the number of Ordinary Shares which the aggregate consideration (if any) receivable for the Ordinary Shares issued by way of rights, or for the Securities issued by way of rights and upon exercise of rights of conversion into, or exchange or subscription for, or the right to otherwise acquire, Ordinary Shares, or for the options or warrants or other rights issued by way of rights and for the total number of Ordinary Shares deliverable on the exercise thereof, would purchase at such Current Market Price per Ordinary Share on the Ex-Date; and

  C	is the number of Ordinary Shares to be issued or, as the case may be, the maximum number of Ordinary Shares which may be issued upon exercise of such options, warrants or rights calculated as at the date of issue of such options, warrants or rights or upon conversion or exchange or exercise of rights of subscription or purchase or other rights of acquisition in respect thereof at the initial conversion, exchange, subscription, purchase or acquisition price or rate;

  provided that if on such Ex-Date such number of Ordinary Shares is to be determined by reference to the application of a formula or other variable feature or the occurrence of any event at some subsequent time, then for the purposes of this paragraph (d), “C” shall be determined by the application of such formula or variable feature or as if the relevant event occurs or had occurred as at such Ex-Date and as if such conversion, exchange, subscription, purchase or acquisition had taken place on such Ex-Date.

  Such adjustment shall become effective on the Effective Date.

  “Effective Date “ means, in respect of this paragraph (d), the later of (i) the Ex-Date in respect of the relevant issue or grant and (ii) the first date upon which the adjusted Conversion Price is capable of being determined in accordance with this paragraph (d).

  (e)Issue of Securities to Shareholders

  If and whenever the Issuer or any Subsidiary of the Issuer or (at the direction or request or pursuant to any arrangements with the Issuer or any Subsidiary of the Issuer) any other company, person or entity shall (other than in the circumstances the subject of paragraph (d) above and other than constituting a Scrip Dividend) issue any Securities to Shareholders as a class by way of rights or grant to Shareholders as a class by way of rights any options, warrants or other rights to subscribe for or purchase or otherwise acquire any Securities, the Conversion Price shall be adjusted by multiplying the Conversion Price in force immediately prior to the Effective Date by the following fraction:

   

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  where:

  A	is the Current Market Price of one Ordinary Share on the Ex-Date in respect of the relevant issue or grant; and

  B	is the Fair Market Value on such Ex-Date of the portion of the rights attributable to one Ordinary Share.

  Such adjustment shall become effective on the Effective Date.

  “Effective Date” means, in respect of this paragraph (e), the later of (i) the Ex-Date in respect of the relevant issue or grant and (ii) the first date upon which the adjusted Conversion Price is capable of being determined in accordance with this paragraph (e).

  (f)Issue of Ordinary Shares at below Current Market Price

  If and whenever the Issuer shall issue (otherwise than as mentioned in paragraph (d) above) wholly for cash or for no consideration any Ordinary Shares (other than Ordinary Shares represented by ADSs transferred or delivered on conversion of the Bonds (which term shall for this purpose include any Further Bonds) or on the exercise of any rights of conversion into, or exchange or subscription for or purchase of, or rights to otherwise acquire, Ordinary Shares and other than constituting a Scrip Dividend) or if and whenever the Issuer or any Subsidiary of the Issuer or (at the direction or request or pursuant to any arrangements with the Issuer or any Subsidiary of the Issuer) any other company, person or entity shall issue or grant (otherwise than as mentioned in paragraph (d) above) wholly for cash or for no consideration any options, warrants or other rights to subscribe for or purchase or otherwise acquire any Ordinary Shares (other than the Bonds, which term shall for this purpose include any Further Bonds), in each case at consideration receivable per Ordinary Share (based, where appropriate, on such number of Ordinary Shares as is determined pursuant to the definition of “C” and the proviso below) which is less than 95 per cent. of the Current Market Price per Ordinary Share on the date of first public announcement of the terms of such issue or grant, the Conversion Price shall be adjusted by multiplying the Conversion Price in force immediately prior to the Effective Date by the following fraction:

   

  where:

  A	is the number of Ordinary Shares in issue immediately before the date of first public announcement of the terms of such issue of Ordinary Shares or issue or grant of options, warrants or other rights as provided above;

  B	is the number of Ordinary Shares which the aggregate consideration (if any) receivable for the issue of such Ordinary Shares or, as the case may be, for the Ordinary Shares to be issued or otherwise made available upon the exercise of any such options, warrants or rights, would purchase at such Current Market Price per Ordinary Share on the date of first public announcement of the terms of such issue or grant; and

   

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  C	is the number of Ordinary Shares to be issued pursuant to such issue of such Ordinary Shares or, as the case may be, the maximum number of Ordinary Shares which may be issued upon exercise of such options, warrants or rights calculated as at the date of issue of such options, warrants or rights;

  provided that if on the date of first public announcement of the terms of such issue or grant (as used in this paragraph (f), the “Specified Date”) such number of Ordinary Shares is to be determined by reference to the application of a formula or other variable feature or the occurrence of any event at some subsequent time, then for the purposes of this paragraph (f), “C” shall be determined by the application of such formula or variable feature or as if the relevant event occurs or had occurred as at the Specified Date and as if such conversion, exchange, subscription, purchase, acquisition had taken place on the Specified Date.

  Such adjustment shall become effective on the Effective Date.

  “Effective Date” means, in respect of this paragraph (f), the later of (i) the date of issue of such Ordinary Shares or, as the case may be, the issue or grant of such options, warrants or rights and (ii) the first date upon which the adjusted Conversion Price is capable of being determined in accordance with this paragraph (f).

  (g)Other issues

  If and whenever the Issuer or any Subsidiary of the Issuer or (at the direction or request of or pursuant to any arrangements with the Issuer or any Subsidiary of the Issuer) any other company, person or entity shall (otherwise than as mentioned in paragraphs (d), (e) or (f) above) issue wholly for cash or for no consideration any Securities (other than the Bonds which term shall for this purpose exclude any Further Bonds and other than constituting a Scrip Dividend) which by their terms of issue carry (directly or indirectly) rights of conversion into, or exchange or subscription for, purchase of, or rights to otherwise acquire, Ordinary Shares (or shall grant any such rights in respect of existing Securities so issued) or Securities which by their terms might be reclassified or redesignated as Ordinary Shares, and the consideration per Ordinary Share (based, where appropriate, on such number of Ordinary Shares as is determined pursuant to the definition of “C” and the proviso below) receivable upon conversion, exchange, subscription, purchase, acquisition, reclassification or redesignation is less than 95 per cent. of the Current Market Price per Ordinary Share on the date of first public announcement of the terms of the issue of such Securities (or the terms of such grant), the Conversion Price shall be adjusted by multiplying the Conversion Price in force immediately prior to the Effective Date by the following fraction:

   

  where:

  A	is the number of Ordinary Shares in issue immediately before the date of first public announcement of the terms of the issue of such Securities (or the terms of such grant);

  B	is the number of Ordinary Shares which the aggregate consideration (if any) receivable for the Ordinary Shares to be issued or otherwise made available 

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  upon conversion or exchange or upon exercise of the right of subscription, 
 

   

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  purchase or acquisition attached to such Securities or, as the case may be, for the Ordinary Shares to be issued or to arise from any such reclassification or redesignation would purchase at such Current Market Price per Ordinary Share on the date of first public announcement of the terms of the issue of such Securities (or the terms of such grant); and

  C	is the maximum number of Ordinary Shares to be issued or otherwise made available upon conversion or exchange of such Securities or upon the exercise of such right of subscription, purchase or acquisition attached thereto at the initial conversion, exchange, subscription, purchase or acquisition price or rate or, as the case may be, the maximum number of Ordinary Shares which may be issued or arise from any such reclassification or redesignation;

  provided that if on the date of first public announcement of the terms of the issue of such Securities (or the terms of such grant) (as used in this paragraph, the “Specified Date”) such number of Ordinary Shares is to be determined by reference to the application of a formula or other variable feature or the occurrence of any event at some subsequent time (which may be when such Securities are converted or exchanged or rights of subscription, purchase or acquisition are exercised or, as the case may be, such Securities are reclassified or redesignated or at such other time as may be provided), then for the purposes of this paragraph (g), “C” shall be determined by the application of such formula or variable feature or as if the relevant event occurs or had occurred as at the Specified Date and as if such conversion, exchange, subscription, purchase or acquisition, reclassification or, as the case may be, redesignation had taken place on the Specified Date.

  Such adjustment shall become effective on the Effective Date.

  “Effective Date” means, in respect of this paragraph (g), the later of (i) the date of issue of such Securities or, as the case may be, the grant of such rights and (ii) the first date upon which the adjusted Conversion Price is capable of being determined in accordance with this paragraph (g).

  (h)Modification of rights

  If and whenever there shall be any modification of the rights of conversion, exchange, subscription, purchase or acquisition attaching to any Securities (other than the Bonds, which term shall for this purpose include any Further Bonds) which by their terms of issue carry (directly or indirectly) rights of conversion into, or exchange or subscription for, or the right to otherwise acquire, any Ordinary Shares (other than in accordance with the terms (including terms as to adjustment) applicable to such Securities upon issue) so that following such modification the consideration per Ordinary Share (based, where appropriate, on such number of Ordinary Shares as is determined pursuant to the definition of “C” and the proviso below) receivable upon conversion, exchange, subscription, purchase or acquisition has been reduced and is less than 95 per cent. of the Current Market Price per Ordinary Share on the date of first public announcement of the terms for such modification, the Conversion Price shall be adjusted by multiplying the Conversion Price in force immediately prior to the Effective Date by the following fraction:

   

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  where:

  A	is the number of Ordinary Shares in issue immediately before the date of first public announcement of the terms for such modification;

  B	is the number of Ordinary Shares which the aggregate consideration (if any) receivable for the Ordinary Shares to be issued or otherwise made available upon conversion or exchange or upon exercise of the right of subscription, purchase or acquisition attached to the Securities so modified would purchase at such Current Market Price per Ordinary Share on the date of first public announcement of the terms for such modification or, if lower, the existing conversion, exchange, subscription, purchase or acquisition price or rate of such Securities; and

  C	is the maximum number of Ordinary Shares which may be issued or otherwise made available upon conversion or exchange of such Securities or upon the exercise of such rights of subscription, purchase or acquisition attached thereto at the modified conversion, exchange, subscription, purchase or acquisition price or rate but giving credit in such manner as the Calculation Agent shall consider appropriate for any previous adjustment under this paragraph (h) or paragraph (g) above;

  provided that if on the date of first public announcement of the terms of such modification (as used in this paragraph (h), the “Specified Date”) such number of Ordinary Shares is to be determined by reference to the application of a formula or other variable feature or the occurrence of any event at some subsequent time (which may be when such Securities are converted or exchanged or rights of subscription, purchase or acquisition are exercised or at such other time as may be provided), then for the purposes of this paragraph (h), “C” shall be determined by the application of such formula or variable feature or as if the relevant event occurs or had occurred as at the Specified Date and as if such conversion, exchange, subscription, purchase or acquisition had taken place on the Specified Date.

  Such adjustment shall become effective on the Effective Date.

  “Effective Date” means, in respect of this paragraph (h), the later of (i) the date of modification of the rights of conversion, exchange, subscription, purchase or acquisition attaching to such Securities and (ii) the first date upon which the adjusted Conversion Price is capable of being determined in accordance with this paragraph (h).

  (i)Certain arrangements

  If and whenever the Issuer or any Subsidiary of the Issuer or (at the direction or request of or pursuant to any arrangements with the Issuer or any Subsidiary of the Issuer) any other company, person or entity shall offer any Ordinary Shares or such other Securities in connection with which Shareholders as a class are entitled to participate in arrangements whereby such Ordinary Shares or Securities may be acquired by them (except where the Conversion Price falls to be adjusted under paragraphs (b), (c), (d), (e), (f), (g), (j), or (g) above or (j) below (or, where applicable, would fall to be so adjusted if the relevant issue or grant was at less than 95 per cent. of the Current Market Price per Ordinary Share on the relevant day), the Conversion Price shall be adjusted by multiplying the Conversion Price in force immediately prior to the Effective Date by the following fraction:

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  where:

  A	is the Current Market Price of one Ordinary Share on the Ex-Date in respect of the relevant offer; and

  B	is the Fair Market` Value on such Ex-Date of the portion of the relevant offer attributable to one Ordinary Share.

  Such adjustment shall become effective on the Effective Date.

  “Effective Date “ means, in respect of this paragraph (i), the later of (A) the Ex-Date in respect of the relevant offer and (B) the first date upon which the adjusted Conversion Price is capable of being determined in accordance with this paragraph (i).

  (j)Change of Control

  If a Change of Control shall occur, then, upon any exercise of Conversion Rights where the Conversion Date falls during the Change of Control Period, the Conversion Price solely for the purpose of such exercise (the “Change of Control Conversion Price”) shall be determined as set out below:

   

  where:

  COCCP	=	means the Change of Control Conversion Price

  OCP	=	means the Conversion Price in effect on the relevant Conversion Date

  CP	=	means the Conversion Premium, being 20 per cent.

  c	=	means the number of days from and including the date the Change of Control occurs to but excluding the Final Maturity Date

  t	=	means the number of days from and including the Closing Date to but excluding the Final Maturity Date

  (k)Other adjustments

  Subject to Condition 6.7, if either the Issuer (following consultation with the Calculation Agent) or the Majority Bondholders (each acting reasonably) determines that an adjustment (for the purpose of compensating for dilution) should be made to the Conversion Price (or that a determination should be made as to whether an adjustment should be made) as a result of one or more circumstances not referred to above in this Condition 6.2) (except for events specifically excluded from the operation of paragraphs (a) to (j) above), the Issuer shall, at its own expense and acting
reasonably, request an Independent Adviser to determine, in consultation with the Calculation Agent, if different as soon as practicable what adjustment (if any) to the Conversion Price is fair and reasonable to take account thereof and the date on which  

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  such adjustment (if any) should take effect and upon such determination such adjustment (if any) shall be made and shall take effect in accordance with such determination, provided that an adjustment shall only be made pursuant to this paragraph (k) if such Independent Adviser is so requested to make such a determination not more than 21 days after the date on which the relevant circumstances arises (or, if later, 21 days after the date on which the relevant circumstances are made public or otherwise are made known to the Bondholders) and if the adjustment would result in a reduction to the Conversion Price.

  (l)Modifications

  Notwithstanding the foregoing provisions:

  (i)where the events or circumstances giving rise to any adjustment pursuant to this Condition 6.2 have already resulted or will result in an adjustment to the Conversion Price or where the events or circumstances giving rise to any adjustment arise by virtue of any other events or circumstances which have already given or will give rise to an adjustment to the Conversion Price or where more than one event which gives rise to an adjustment to the Conversion Price occurs within such a short period of time that, in the opinion of the Issuer, acting reasonably and following consultation with the Calculation Agent, a modification to the operation of the adjustment provisions is required to give the intended result, such modification shall be made to the operation of the adjustment provisions as may be determined in good faith by an Independent Adviser to be in its opinion appropriate to give the intended result;

  (ii)such modification shall be made to the operation of these Conditions as may be determined in good faith by an Independent Adviser, in consultation with the Calculation Agent (if different), to be in its opinion appropriate (A) to ensure that an adjustment to the Conversion Price or the economic effect thereof shall not be taken into account more than once and (B) to ensure that the economic effect of a Dividend is not taken into account more than once; and

  (iii)other than pursuant to Condition 6.2(a) or Condition 6.5 or pursuant to a NewCo Scheme Modification, no adjustment shall be made that would result in an increase to the Conversion Price.

  (m)Calculation of consideration

  For the purpose of any calculation of the consideration receivable or price pursuant to paragraphs (d), (f), (g) and (h) above, the following provisions shall apply:

  (i)the aggregate consideration receivable or price for Ordinary Shares issued for cash shall be the amount of such cash (determined by reference to the per-ADS amount of such cash where available);

   

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  (ii)if the consideration or price determined pursuant to (i) or (ii) above (or any component thereof) shall be expressed in a currency other than the Relevant Currency (other than in circumstances where such consideration is also expressed in the Relevant Currency, in which case such consideration shall be treated as expressed in the Relevant Currency in an amount equal to the amount of such consideration when so expressed in the Relevant Currency), it shall be converted by the Calculation Agent into the Relevant Currency at the Prevailing Rate on the relevant Ex-Date (for the purposes of paragraph (d) above) or the relevant date of first public announcement (for the purposes of paragraph (f), (g) and (h) above, as the case may be);

  (iii)in determining the consideration or price pursuant to the above, no deduction shall be made for any commissions or fees (howsoever described) or any expenses paid or incurred for any underwriting, placing or management of the issue of the relevant Ordinary Shares or such other Securities or options, warrants or rights, or otherwise in connection therewith;

  (iv)the consideration or price shall be determined as provided above on the basis of the consideration or price received, receivable, paid or payable, regardless of whether all or part thereof is received, receivable, paid or payable by or to the Issuer or another entity;

  (v)if as part of the same transaction, Ordinary Shares shall be issued or issuable for a consideration receivable in more than one or in different currencies then the consideration receivable per Ordinary Share shall be determined by dividing the aggregate consideration (determined as aforesaid and converted, if and to the extent not in the Relevant Currency, into the Relevant Currency as aforesaid) by the aggregate number of Ordinary Shares so issued; and

   

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  (vi)references in these Conditions to “cash” shall be construed as cash consideration within the meaning of Section 583(3) of the Companies Act.

  6.3Retroactive Adjustments

  If a Retroactive Adjustment occurs in relation to any exercise of Conversion Rights, the Issuer shall procure that there shall be issued and/or transferred and delivered to, or to the order of, the relevant Bondholder in accordance with the Payment Details, such additional number of ADSs (if any) (the “Additional ADSs”) as, together with the ADSs issued and/or transferred and delivered on the relevant exercise of Conversion Rights, is equal to the number of Physically Settled ADSs which would have been required to be issued and/or transferred and delivered on such exercise if the relevant adjustment to the Conversion Price had been made and become effective immediately prior to the relevant Conversion Date (such number of Physically Settled ADSs as aforesaid being for this purpose calculated as (i) where such exercise of Conversion Rights is not the subject of a Cash Alternative Election, the Reference ADSs in respect of such exercise of Conversion Rights determined for this purpose by reference to such deemed Conversion Price as aforesaid, and (ii) where such exercise of Conversion Rights is the subject of a Cash Alternative Election, the difference between (A) such number of Reference ADSs as is determined pursuant to (i) and (B) the product of (x) such number of Reference ADSs determined as aforesaid and (y) the Cash Settlement Ratio in respect of such exercise of Conversion Rights), all as determined in good faith by the Calculation Agent or an Independent Adviser, provided that if in the case of Conditions 6.2(b), 6.2(c), 6.2(d), 6.2(e) or 6.2(i) the relevant Bondholder shall be entitled to receive the relevant Ordinary Shares (including Ordinary Shares represented by ADSs), Dividends or such other Securities in respect of the Reference ADSs to be issued and/or transferred and delivered to it, then no such Retroactive Adjustment shall be made in relation to the relevant event and the relevant Bondholder shall not be entitled to receive Additional ADSs in relation thereto.

  6.4Conversion Price Reset

  Subject to the following sentence, on each Reset Date, the Conversion Price will be adjusted by the Calculation Agent to be equal to the Reset Conversion Price. An adjustment to the Conversion Price pursuant to this Condition 6.4 on any Reset Date (each such adjustment, a “Conversion Price Reset”) shall be made only if the Conversion Price so adjusted is lower than the Conversion Price that would, but for the operation of this Condition 6.4 in respect of such Reset Date, be in effect on such Reset Date.

  The “Reset Conversion Price” means, on each Reset Date, the US Dollar price per ADS which is the greater of:

  (a)the 30-Day Reset Average Market Price; and

  (b)the relevant Reset Price Floor on such Reset Date,

  as determined by the Calculation Agent.

  The “Reset Price Floor” on each “Reset Date” (being each of the dates set out in (i), (ii) and (iii) below, as specified in the Initial Determinations Notice) means the US Dollar price per ADS calculated (and rounded to the nearest integral multiple of $0.0001 (with $0.00005 being rounded upwards)) as follows:

  (i)for the date falling on the first anniversary date of the Closing Date: (RCP x 2 / 3) + (FP / 3)

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  (ii)for the date falling on the second anniversary date of the Closing Date: (RCP / 3) + (FP x 2 / 3)

  (iii)for the date falling on the third anniversary date of the Closing Date: FP

  where:

  RCP	=	means the Reference Conversion Price on the relevant Reset Date.

  FP	=	means the Floor Price on the relevant Reset Date.

  “Reference Conversion Price”, for the purposes of this Condition 6.4, on any date means, initially, U.S.$8.70, as shall from time to time be adjusted pro rata for any adjustment made to the Conversion Price (and with effect from the date on which such adjustment becomes effective) pursuant to Condition 6.2 (but, for the avoidance of doubt, not adjusted for any adjustment made to the Conversion Price pursuant to this Condition 6.4 or Condition 6.5 and ignoring for these purposes Condition 6.2(j)); and

  “Floor Price” on any date means, initially U.S.$7.25, as shall from time to time be adjusted pro rata for any adjustment made to the Conversion Price (and with effect from the date on which such adjustment becomes effective) pursuant to Condition 6.2 (but, for the avoidance of doubt, not adjusted for any adjustment made to the Conversion Price pursuant to this Condition 6.4 or Condition 6.5 and ignoring for these purposes Condition 6.2(j)).

  Any adjustment to the Conversion Price pursuant to this Condition 6.4 shall become effective as of the relevant Reset Date (or, if later, the first date on which such adjustment is capable of being determined in accordance with these Conditions) and notice of any such adjustment shall be given by the Issuer to Bondholders in accordance with Condition 16.

  On any adjustment to the Reference Conversion Price or Floor Price, the resultant Reference Conversion Price or Floor Price, as the case may be, if not an integral multiple of $0.0001, shall be rounded down to the nearest whole multiple of $0.0001. No adjustment shall be made to the Reference Conversion Price or Floor Price where such adjustment (rounded down if applicable) would be less than one per cent. of the Reference Conversion Price or Floor Price, as the case may be, then in effect. Any adjustment not required to be made and/or any amount by which the Reference Conversion Price or Floor Price, as the case may be, has been rounded down, shall be carried forward and taken into account in any subsequent adjustment, and such subsequent adjustment shall be made on the basis that the adjustment not required to be made had been made at the relevant time and/or, as the case may be, that the relevant rounding down had not been made.

  Notice of any adjustments to the Reference Conversion Price and Floor Price, as the case may be, and the resulting Reset Price Floor for each Reset Date falling on or after the date on which such adjustment becomes effective (determined, solely for the purpose of such notice, on the basis of the Reference Conversion Price and Floor Price so adjusted), shall be given by the Issuer to Bondholders in accordance with Condition 16 promptly after the determination thereof.

  6.5Conversion Price Reset Clawback at the Issuer’s Option

  Following the occurrence of a Conversion Price Reset (as defined in Condition 6.4) pursuant to Condition 6.4 on a Reset Date (the “Reference Reset Date”), if the Volume Weighted Average Price of an ADS (translated if necessary into US Dollars at the Prevailing Rate) on each of at least 20 Dealing Days in any period of 30 consecutive Dealing Days commencing 
 

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  on or after such Reference Reset Date shall have exceeded 150% of the Reference
Conversion Price (as defined in Condition 6.4) on such Dealing Day (or, if such Dealing Day falls on or after the Applicable Adjustment Reference Date in respect of any adjustment required to be made to the Conversion Price pursuant to these Conditions (other than an adjustment pursuant to Condition 6.4 or Condition 6.5) and such adjustment is not yet in effect on such Dealing Day, the Volume Weighted Average Price on such Dealing Day shall be divided by the adjustment factor (as determined pursuant to these Conditions) applied to the Conversion Price in respect of such adjustment), as verified by the Calculation Agent, then the Issuer will have the right (but not the obligation) to require the Calculation Agent to adjust the Conversion Price (the “Reset Clawback”) such that it shall be the Conversion Price which would otherwise have been in effect on the Clawback Effective Date (as defined below) had the most recent Conversion Price Reset not been made.

  For the avoidance of doubt, if there shall have been Conversion Price Resets pursuant to Condition 6.4 on more than one Reset Date, the Issuer’s exercise of the Reset Clawback (if the Issuer’s right should arise and be exercised under this Condition 6.5) shall apply solely in relation to the most recent Conversion Price Reset and shall have no effect on any Conversion Price Reset which occurred prior to the most recent Conversion Price Reset.

  Notice of any adjustment to the Conversion Price pursuant to this Condition 6.5 shall promptly be given by the Issuer to Bondholders in accordance with Condition 16, and any adjustment to the Conversion Price pursuant to this Condition 6.5 shall become effective as of the date on which such notice is given to Bondholders (any such date, a “Clawback Effective Date”). Any such notice shall specify the Conversion Price so adjusted.

  The Issuer may only exercise its right of the Reset Clawback under this Condition 6.5 on one occasion during the term of the Bonds.

  6.6Decision and Determination of the Calculation Agent or an Independent Adviser

  Adjustments to the Conversion Price shall be determined and calculated by the Calculation Agent upon request from the Issuer and/or, to the extent so specified in the Conditions and upon request from the Issuer, by an Independent Adviser.

  Adjustments to the Conversion Price calculated by the Calculation Agent or, where applicable, an Independent Adviser and any other determinations made by the Calculation Agent or, where applicable, an Independent Adviser, or an opinion of an Independent Adviser, pursuant to these Conditions shall in each case be made in good faith and shall be final and binding (in the absence of manifest error) on the Issuer, the Bondholders and the Calculation Agent (in the case of a determination by an Independent Adviser).

  The Calculation Agent may consult, at the expense of the Issuer, on any matter (including, but not limited to, any legal matter), any legal or other professional adviser and it shall be able to rely upon, and it shall not be liable and shall incur no liability as against the Bondholders in respect of anything done, or omitted to be done, relating to that matter in good faith in accordance with that adviser’s opinion.

  The Calculation Agent shall act solely upon the request from, and exclusively as agent of, the Issuer and in accordance with these Conditions. Neither the Calculation Agent (acting in such capacity) nor any Independent Adviser appointed in connection with the Bonds (acting in such capacity) will thereby assume any obligations towards or relationship of agency or trust and shall not be liable and shall incur no liability in respect of anything done, or omitted to be done in good faith, in their capacity as Calculation Agent, or as the case may be, Independent Adviser, as against the Bondholders.

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  If following consultation between the Issuer and the Calculation Agent any doubt shall arise as to whether an adjustment falls to be made to the Conversion Price or as to the appropriate adjustment to the Conversion Price, following consultation between the Issuer and an Independent Adviser, a written opinion of such Independent Adviser in respect thereof shall be conclusive and binding on the Issuer, the Bondholders and the Calculation Agent (if different), save in the case of manifest error.

  The Issuer shall promptly notify Bondholders in accordance with Condition 16 of each determination, calculation or adjustment performed by the Calculation Agent and/or Independent Adviser pursuant to these Conditions.

  6.7Share or Option Schemes, Dividend Reinvestment Plans, Equity Raise

  No adjustment will be made to the Conversion Price where ADSs, Ordinary Shares or other Securities (including, but not limited to, rights, warrants and options) are issued, offered, exercised, allotted, purchased, appropriated, modified or granted (i) to, or for the benefit of, employees or former employees (including directors holding or formerly holding executive office or non-executive office, consultants or former consultants, or the personal service company of any such person) or their spouses or relatives, in each case, of the Issuer or any of its Subsidiaries or any associated company or to a trustee or nominee to be held for the benefit of any such person, in any such case pursuant to any share or option or incentive scheme or (ii) pursuant to any dividend reinvestment plan or similar plan or scheme.

  No adjustment will be made to the Conversion Price in respect of any Ordinary Shares (including without limitation Ordinary Shares represented by ADSs) or any warrants to purchase Ordinary Shares (including without limitation Ordinary Shares represented by ADSs) in each case issued pursuant to the Equity Raise.

  6.8Rounding Down and Notice of Adjustment to the Conversion Price

  On any adjustment, the resultant Conversion Price, if not an integral multiple of $0.0001, shall be rounded down to the nearest whole multiple of $0.0001. No adjustment shall be made to the Conversion Price where such adjustment (rounded down if applicable) would be less than one per cent. of the Conversion Price then in effect. Any adjustment not required to be made and/or any amount by which the Conversion Price has been rounded down, shall be carried forward and taken into account in any subsequent adjustment, and such subsequent adjustment shall be made on the basis that the adjustment not required to be made had been made at the relevant time and/or, as the case may be, that the relevant rounding down had not been made.

  Notice of any adjustments to the Conversion Price shall be given by the Issuer to Bondholders promptly after the determination thereof.

  The Conversion Price shall not in any event be reduced so that on conversion of the Bonds, Ordinary Shares or ADSs would fall to be issued in circumstances not permitted by applicable laws or regulations. The Issuer undertakes that it shall not take any action, and shall procure that no action is taken, that would otherwise result in an adjustment to the Conversion Price to below any minimum level permitted by applicable laws or regulations or that would otherwise result in Ordinary Shares or ADSs being required to be issued or transferred and delivered in circumstances not permitted by applicable laws or regulations.

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  6.9Relevant Event

  Within 14 calendar days following the occurrence of a Relevant Event, the Issuer shall give notice thereof to Bondholders in accordance with Condition 16 (a “Relevant Event Notice”). 
 

   

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  The Relevant Event Notice shall contain a statement informing Bondholders of (i) their entitlement to exercise their Conversion Rights as provided in these Conditions and (ii) their entitlement to exercise their rights to require redemption of their Bonds pursuant to Condition 7.2.

  The Relevant Event Notice shall also specify:

  (a)all information material to Bondholders concerning the Relevant Event;

  (b)the Conversion Price immediately prior to the occurrence of the Relevant Event and, in the case of a Change of Control, the Change of Control Conversion Price applicable pursuant to Condition 6.2(j) on the basis of the Conversion Price in effect immediately prior to the occurrence of the Change of Control;

  (c)the Closing Price of an ADS as at the latest practicable date prior to the publication of the Relevant Event Notice;

  (d)the Relevant Event Period; and

  (e)the Relevant Event Put Date.

  6.10Procedure for exercise of Conversion Rights

  Conversion Rights may be exercised by a Bondholder (provided that the relevant Conversion Date falls during the Conversion Period) by delivering the relevant Bond Certificate to the Issuer accompanied by a Conversion Notice. The conversion date in respect of a Bond (the “Conversion Date”) shall be the business day in London and New York on the date of the delivery (or deemed delivery) of the relevant Conversion Notice and Bond Certificate as provided in this Condition 6.10 and shall be deemed to be the date on which the Conversion Right is exercised in respect of such Bond.

  If such delivery is made after 5.00p.m. London time or on a day which is not a London and New York business day, such delivery shall be deemed for all purposes of these Conditions to have been made on the next following London and New York business day.

  Conversion Rights may only be exercised in respect of the whole of a Bond.

  A Conversion Notice, once delivered, shall be irrevocable.

  The Issuer shall pay all capital, stamp, issue and registration and transfer taxes and duties assessable or payable in the United Kingdom or in the United States or in any other jurisdiction in which the Issuer may be domiciled or resident or to whose taxing jurisdiction it may be generally subject (“Specified Taxes”), in respect of the issue or transfer and delivery of any ADSs (including the allotment, issue and delivery of Ordinary Shares represented thereby) in respect of the exercise of such Conversion Right (including any Additional ADSs) and any ADS Settlement. If the Issuer fails to pay any Specified Taxes assessable or payable in respect of the issue or transfer and delivery of any ADSs (including the allotment, issue and delivery of Ordinary Shares represented thereby) in respect of the exercise of such Conversion Right (including any Additional ADSs) and any ADS Settlement, the relevant Bondholder shall be entitled to tender and pay the same and the Issuer, as a separate and independent stipulation, covenants to reimburse and indemnify each Bondholder in respect of any payment thereof and any interest and penalties payable and documented costs incurred in respect thereof.

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  A Bondholder exercising Conversion Rights must pay directly to the relevant authorities of 
a relevant jurisdiction any capital, stamp, issue, registration and transfer taxes and duties 
arising on the exercise of Conversion Rights excluding any Specified Taxes (which shall be payable by the Issuer). A Bondholder must also pay, or procure the payment of, all, if any, taxes imposed on it and arising by reference to any disposal or deemed disposal by it of a Bond or interest therein in connection with the exercise of Conversion Rights by it. Any such capital, stamp, issue, registration or transfer taxes or duties or other taxes payable by a Bondholder are referred to as “Bondholder Taxes”. If the Bondholder fails to pay any Bondholder Taxes, the Issuer shall be entitled to tender and pay the same and the Bondholder, as a separate and independent stipulation, covenants to reimburse and indemnify the Issuer in respect of any payment thereof and any interest and penalties payable and any documented costs incurred in respect thereof.

  For the avoidance of doubt, the Calculation Agent shall not be responsible for determining whether any Specified Taxes or Bondholder Taxes are payable or the amount thereof and shall not be responsible or liable for any failure by the Issuer to pay such Specified Taxes or by a Bondholder to pay such Bondholder Taxes.

  ADSs to be issued or transferred and delivered on exercise of Conversion Rights (including any Additional ADSs) will be issued or delivered in uncertificated form through DTC to its direct and indirect participants to the account specified by the relevant Bondholder in the Payment Details, unless at the relevant time the ADSs (including Additional ADSs) are not a participating security in DTC, in which case the Deliverable ADSs (including Additional Deliverable ADSs) will be issued or delivered in certificated form. Where Deliverable ADSs (including Additional Deliverable ADSs) are to be issued or transferred and delivered in certificated form, a certificate in respect thereof will be dispatched by mail free of charge to the relevant Bondholder in accordance with its Payment Details or as it may otherwise direct.

  Such ADSs will be issued or transferred and delivered to the relevant Bondholder no later than four London and New York business days following the relevant Conversion Date or, in the case of any Additional ADSs, not later than four London and New York business days following the relevant Reference Date.

  A Bondholder exercising a Conversion Right will be required to certify that it will become the beneficial owner of any relevant ADSs received pursuant to the exercise of its Conversion Right and is not an officer, director (or person performing similar functions) or other affiliate of the Issuer or a person acting on behalf of such an affiliate. ADSs issued or transferred and delivered to Bondholders (i) pursuant to an exercise of Conversion Rights (including any Additional ADSs), and (ii) pursuant to an exercise by the Issuer of an ADS Settlement Option (including any Additional Deliverable ADSs), will be immediately freely tradeable under the Securities Act by holders who are not affiliates of the Issuer, and have not been, affiliates of the Issuer within the preceding three months.

  Except as otherwise provided in these Conditions or in the Bond Agreement, the Issuer will pay all costs, fees and expenses, including, where relevant, those of the Depositary and any custodian acting on behalf of such Depositary, but excluding any Bondholder Taxes, in connection with the delivery of ADSs on each exercise of Conversion Rights and in relation to each ADS Settlement.

  Notwithstanding any other provisions of these Conditions, a Bondholder exercising Conversion Rights following a Change of Control Conversion Right Amendment as described in Condition 11(b)(vii) will be deemed, for the purposes of these Conditions, to have received the ADSs to be issued or transferred and delivered arising on conversion of its Bonds in the manner provided in these Conditions, and have exchanged such ADSs for the consideration that it would have 

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  received therefor if it had exercised its Conversion Right in respect of such Bonds at the time of the occurrence of the relevant Change of Control.

  6.11Cash Alternative Election

  (a)Upon exercise of a Conversion Right, the Issuer may make an election (a “Cash Alternative Election”) by giving notice (a “Cash Alternative Election Notice”) to the relevant Bondholder by not later than the date (the “Cash Election Date”) falling four Dealing Days after the relevant Conversion Date (with a copy to the Calculation Agent) to satisfy the exercise of the Conversion Right in respect of the relevant Bonds by (i) making payment, or procuring that payment is made, to the relevant Bondholder of the Cash Alternative Amount in respect of the Cash Settled ADSs in respect of such exercise as specified in the relevant Cash Alternative Election Notice, and (ii) where the Cash Settled ADSs are less than the Reference ADSs in respect of the relevant exercise of Conversion Rights, by issuing or transferring and delivering the Physically Settled ADSs, together in any such case with any other amount payable by the Issuer to such Bondholder pursuant to these Conditions in respect of or relating to the relevant exercise of Conversion Rights, including any interest payable pursuant to Condition 6.13.

  (b)The Cash Alternative Election Notice shall be irrevocable and shall specify:

  (i)the Conversion Price in effect on the relevant Conversion Date and the number of Reference ADSs in respect of such exercise of Conversion Rights;

  (ii)the number of Cash Settled ADSs in respect of the relevant exercise of Conversion Rights, by reference to which the Cash Alternative Amount is to be calculated; and

  (iii)if the number of Cash Settled ADSs (determined as aforesaid) is less than the number of Reference ADSs in respect of the relevant exercise of Conversion Rights, the number of Physically Settled ADSs to be transferred and delivered by the Issuer to the relevant Bondholder in respect of such exercise.

  (c)The Issuer will pay the Cash Alternative Amount not later than three New York business days following the last day of the Cash Alternative Calculation Period by transfer to a US Dollar bank account in accordance with the Payment Details.

  (d)If there is a Retroactive Adjustment to the Conversion Price following the exercise of Conversion Rights by a Bondholder in circumstances where (x) a Cash Alternative Election is made in respect of such exercise and (y) if any Dealing Day comprised in the Cash Alternative Calculation Period in respect of such exercise of Conversion Rights falls on or after the Applicable Adjustment Reference Date in respect of such Retroactive Adjustment, then the Issuer shall pay to the relevant Bondholder an additional amount (the “Additional Cash Alternative Amount”) calculated in good faith by the Calculation Agent and equal to the Market Price of such number of ADSs (rounded down if necessary to the nearest whole number of ADSs) (if any) as is equal to that by which the number of Cash Settled ADSs would have been increased if the relevant adjustment to the Conversion Price had been made and become effective immediately prior to the relevant Conversion Date (such number of Cash Settled ADSs as aforesaid being for this purpose calculated as the product of (x) the Reference ADSs determined for this purpose by reference to such deemed Conversion Price as aforesaid and (y) the Cash Settlement Ratio, in the case of (x) and (y) in respect of such exercise of Conversion Rights), all as determined in good faith by the Calculation Agent.

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  (e)The Issuer will pay the Additional Cash Alternative Amount not later than three London and New York business days following the relevant Reference Date by transfer to a US Dollar bank account in accordance with the Payment Details.

  6.12Ranking and entitlement in respect of ADSs (and Ordinary Shares represented thereby)

  ADSs (including any Additional ADSs) issued or transferred and delivered on exercise of Conversion Rights will be fully paid and will in all respects rank pari passu with the fully paid ADSs in issue on the relevant Conversion Date or, in the case of Additional ADSs, on the relevant Reference Date, and without prejudice to the provisions of the Deposit Agreement, the relevant holder shall be entitled to all rights, distribution or payments the record date or other due date for the establishment of entitlement for which falls on or after the relevant Conversion Date, or as the case may be, the relevant Reference Date, except in any such case for any right excluded by mandatory provisions of applicable law or as otherwise may be provided in these Conditions. Such ADSs or, as the case may be, Additional ADSs will not rank for (or, as the case may be, the relevant holder shall not be entitled to receive) any rights, distributions or payments the record date or other due date for the establishment of entitlement for which falls prior to the relevant Conversion Date or, as the case may be, the relevant Reference Date.

  Ordinary Shares represented by ADSs issued and/or transferred and delivered to the Bondholders on exercise of Conversion Rights will be fully paid and in all respects will rank pari passu with all other Ordinary Shares in issue on the relevant Conversion Date (or, in the case of Ordinary Shares represented by Additional ADSs, the relevant Reference Date) (except for any right excluded by mandatory provisions of applicable law) and such Ordinary Shares will be entitled to all rights to the same extent as all other fully-paid Ordinary Shares of the Issuer.

  6.13Interest on Conversion

  No payment or adjustment shall be made on exercise of Conversion Rights for any interest which otherwise would have accrued on the relevant Bonds since the last Interest Payment Date preceding the Conversion Date relating to such Bonds (or, if such Conversion Date falls before the first Interest Payment Date, since the Closing Date).

  6.14Purchase or Redemption of Ordinary Shares or ADSs

  The Issuer or any Subsidiary of the Issuer may exercise such rights as they may from time to time enjoy to purchase or redeem or buy back any shares of the Issuer (including Ordinary Shares) or ADSs or any depositary or other receipts or certificates representing the same without the consent of the Bondholders provided that it is in compliance with the terms of the Deposit Agreement and the Issuer or any Subsidiary of the Issuer will obtain U.S. legal advice and take all steps necessary to ensure that the application of the proposed transaction does not violate the provisions of the Securities Act, or any other applicable laws (including, without limitation, the Investment Company Act of 1940, as amended, the Exchange Act or the securities laws of the states of the United States).

  6.15No Duty to Monitor

  The Calculation Agent shall not be under any duty to monitor whether any event or circumstance has happened or exists or may happen or exist and which requires or may 
require an adjustment to be made to the Conversion Price or be responsible or liable to any person for any loss arising from any failure by any of them to do so. The Calculation Agent shall also not be responsible or liable to any person (other than in the case of the Calculation 
 

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  Agent, to the Issuer strictly in accordance with the relevant provisions of the Calculation Agency Agreement) for any determination as to whether or not an adjustment to the Conversion Price is required or should be made or for any determination or calculation of any such adjustment.

  6.16Consolidation, Amalgamation or Merger

  Without prejudice to Condition 6.2(j), in the case of any consolidation, amalgamation or merger of the Issuer with any other corporation (other than constituting a Change of Control or a consolidation, amalgamation or merger in which the Issuer is the continuing corporation) (a “Successor in Business”), the Issuer will forthwith give notice thereof to Bondholders in accordance with Condition 16 of such event and will take such steps as shall be required, subject to applicable law and as provided in Condition 15 (and including the execution of a deed supplemental to or amending the Bond Agreement):

  (a)to ensure that the Successor in Business is substituted in place of the Issuer as the principal debtor under the Bonds and the Bond Agreement;

  (b)to ensure that each Bond then outstanding will (during the period in which Conversion Rights may be exercised) be convertible into equity share capital (or similar (including without limitation depositary or other receipts or certificates representing equity share capital)) of the Successor in Business, on such basis and with a Conversion Price (subject to adjustment as provided in these Conditions) economically equivalent to the Conversion Price existing immediately prior to the implementation of such consolidation, amalgamation or merger, as determined in good faith by an Independent Adviser (each a “Conversion Right Transfer”); and

  (c)to ensure that the Bond Agreement (as so amended or supplemented if applicable) and the Conditions provide at least the same or equivalent powers, protections, rights and benefits to the Bondholders following the implementation of such consolidation, amalgamation or merger as they provided to the Bondholders prior to the implementation of such consolidation, amalgamation or merger, mutatis mutandis.

  The satisfaction of the requirements set out above in this Condition 6.16 by the Issuer is herein referred to as a “Permitted Cessation of Business”. Notwithstanding any other provision of these Conditions, a Permitted Cessation of Business shall not result in a breach of undertaking, constitute an Event of Default or otherwise result in any breach of any provision of these Conditions or the Bond Agreement. Following the occurrence of a Permitted Cessation of Business, references in these Conditions and the Bond Documents to the “Issuer” will be construed as references to the relevant Successor in Business (but without prejudice to the provisions of the Calculation Agency Agreement).

  At the request of the Issuer, but subject to the Issuer’s compliance with the provisions of this Condition 6.16, the Bondholders shall (at the expense of the Issuer, including payment by the Issuer of the reasonably incurred fees of Bondholders’ legal counsel in relation to such Conversion Right Transfer) concur with the Issuer in effecting any substitution under subparagraph (a) above and Conversion Right Transfer (including, inter alia, the execution of a deed supplemental to or amending the Bond Agreement), provided that the Bondholders shall not be obliged so to concur if in the opinion of the Bondholders doing so would impose more onerous obligations upon any of them or expose any of them to any additional duties, responsibilities or liabilities in any way.

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  If, following consultation with the Calculation Agent, any doubt shall arise (or upon the 
request to the Issuer of the Majority Bondholders) as to how determinations, calculations or 
 

   

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  adjustments which are specifically required to be performed by the Calculation Agent in these Conditions should be performed following any such consolidation, amalgamation or merger, a written opinion of an Independent Adviser in respect thereof shall be conclusive and binding on the Successor in Business, the Issuer, the Bondholders, the Calculation Agent and all other parties, save in the case of manifest error.

  The above provisions of this Condition 6.16 will apply, mutatis mutandis, to any subsequent consolidations, amalgamation or mergers.

  7.Redemption and Purchase

  7.1Mandatory Redemption by Amortisation

  (a)Scheduled Amortisation Payments

  Subject to Condition 7.1(c) below, on the date falling three months after the Closing Date and on each three month anniversary thereof ending on (and including) the Final Maturity Date (each such date, a “Scheduled Amortisation Payment Date”, as specified in the Initial Determinations Notice, and each such date as may become subject to deferral or advancement as provided in Condition 7.1(c), an “Amortisation Payment Date”), each Bond outstanding (except for any Bond in respect of which Conversion Rights have been exercised) will be redeemed in instalments of $10,000 per Bond (each an “Amortised Payment Amount”) together with interest accrued and unpaid to (but excluding) the relevant Amortisation Payment Date as provided in Condition 5.

  (b)Deemed Principal ADS Settlement Option Exercise

  In respect of the Amortisation Payment Amount due on each Amortisation Payment Date, the Issuer shall be deemed to have exercised its option (the “Principal ADS Settlement Option”) to make payment of the relevant Amortised Payment Amount by the issue or transfer and delivery of Deliverable ADSs (and, if applicable, Additional Deliverable ADSs) to Bondholders with respect to all, and not some only, of the Bonds subject to and in accordance with the provisions of Condition 9.9, except if (i) the Issuer shall elect (in its sole discretion), by giving notice thereof (a “Principal Cash Settlement Option Notice”) (which notice shall be irrevocable) to Bondholders in accordance with Condition 16 at least two Notice Business Days prior to such Amortisation Payment Date, to satisfy its obligation to make payment on such Amortisation Payment Date pursuant to this Condition 7.1 by paying the Amortised Payment Amount in cash, or (ii) an ADS Settlement Liquidity Event is occurring or occurs prior to the issue or transfer and delivery of the relevant Deliverable ADSs (in which case of (i) or (ii), the Amortised Payment Amount shall be paid by the Issuer in cash). Upon each redemption of an Amortised Payment Amount on an Amortisation Payment Date the principal amount of each Bond shall be reduced accordingly on such Amortisation Payment Date.

  (c)Deferral and Advancement of Amortisation Payments

  (i)The Majority Bondholders may, by giving notice thereof to the Issuer at least three Notice Business Days prior to a Scheduled Amortisation Payment Date, exercise the right of the Bondholders to defer the Amortised Payment Amount in respect of such Scheduled Amortisation Payment Date and each Bond outstanding at such time so that such payment shall not be payable on its 

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  Scheduled Amortisation Payment Date and instead shall become payable 
on such subsequent Scheduled Amortisation Payment Date as is specified in such notice (an “Amortised Payment Deferral”). The Majority Bondholders may exercise their right to defer Amortised Payment Amounts under this Condition 7.1(c)(i) in respect of a maximum of two Scheduled Amortisation Payment Dates during the term of the Bonds.

  (ii)Subject to paragraph (iii) below, the Majority Bondholders may, by giving not less than three Notice Business Days’ notice to the Issuer, exercise their right to bring forward the payment of some or all future Amortised Payment Amounts such that the relevant Amortised Payment Amount(s) in relation to the following Scheduled Amortisation Payment Date(s) shall become payable on the date specified in such notice (an “Accelerated Amortisation Payment Date”, which shall be not earlier than three Notice Business Days following the date of such notice) (an “Amortised Payment Advancement”). In relation to an Amortised Payment Advancement, except if (A) the Issuer shall elect (in its sole discretion in accordance with Condition 7.1(a)) to satisfy its obligation to make payment on such Amortisation Payment Date by paying the Amortised Payment Amount in cash (in accordance with Condition 7.1(a)) or (B) an ADS Settlement Liquidity Event is occurring or occurs prior to the issue or transfer and delivery of the relevant Deliverable ADSs (in which case, in the case of (A) or (B) the Amortised Payment Amount shall be paid by the Issuer in cash), then in respect of the Principal ADS Settlement Option the calculation of the relevant Deliverable ADSs which shall be issued or delivered to the Bondholders shall be determined as if such Accelerated Amortisation Payment Date was the immediately preceding Scheduled Amortisation Payment Date (and if there shall have occurred an event or circumstance requiring an adjustment to the Reference Conversion Price in accordance with Condition 6 after the Scheduled Amortisation Payment Date immediately preceding the relevant Accelerated Amortisation Payment Date, then such adjustment to the Relevant ADS Settlement Price as may be required shall be determined by the Calculation Agent (if the Calculation Agent determines that it is able to make such determination) or (in any other case) by an Independent Adviser in such other manner as it shall consider to be appropriate to give the intended result) and in accordance with Condition 9.9.

  (iii)The Majority Bondholders’ right to require Amortised Payment Advancements shall be subject to the following: (A) there shall be no Accelerated Amortisation Payment Date in the period from (and including) the Closing Date to (but excluding) the first anniversary of the Closing Date; (B) no more than two Accelerated Amortisation Payment Dates may occur in any 12-month period; and (C) no more than one Accelerated Amortisation Payment Date may occur in any 3-month period; provided that (B) and (C) shall not apply to any Amortised Payment Advancement in relation to an Amortised Payment Amount which was the subject of an Amortised Payment Deferral.

   

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  (d)No other redemption

  Unless previously purchased and cancelled, redeemed or converted as herein provided, the Bonds will be redeemed at their then outstanding principal amount on the Final Maturity Date. Other than as provided in this Condition 7.1, the Bonds may only be redeemed at the option of the Issuer prior to the Final Maturity Date in accordance with Condition 7.3 and may only be redeemed by Bondholders prior to the Final Maturity Date in accordance with Condition 7.2.

  7.2Redemption at the Option of Bondholders

  Following the occurrence of a Relevant Event, each Bondholder will have the right to require the Issuer to redeem all, but not some only, of its Bonds on the Relevant Event Put Date at their principal amount, together with accrued and unpaid interest up to (but excluding) the Relevant Event Put Date. To exercise such right, the holder of the relevant Bond must give notice thereof to the Issuer at any time during the Relevant Event Period.

  The “Relevant Event Put Date” shall be the fourteenth London and New York business day after the expiry of the Relevant Event Period.

  Payment in respect of any such Bond shall be made in accordance with Condition 8.

  Any notice given by a Bondholder to exercise its put right pursuant to this Condition 7.2, once delivered, shall be irrevocable and the Issuer shall redeem all Bonds the subject of such notices delivered as aforesaid on the Relevant Event Put Date.

  7.3Purchase

  Subject to the requirements (if any) of any stock exchange on which the Bonds may be admitted to listing and trading at the relevant time and subject to compliance with applicable laws and regulations, the Issuer or any Subsidiary of the Issuer may at any time purchase any Bonds in the open market or otherwise at any price. Bonds purchased by the Issuer or any of its Subsidiaries shall be cancelled and may not be reissued or re-sold.

  7.4Cancellation

  All Bonds which are redeemed or in respect of which Conversion Rights are exercised will be cancelled and may not be reissued or resold.

  8.Taxation

  All payments made by or on behalf of the Issuer in respect of the Bonds will be made free and clear of and be made without deduction or withholding for or on account of any present or future taxes, duties, assessments or governmental charges of whatever nature imposed or levied by or on behalf of any jurisdiction, unless deduction or withholding of such taxes, duties, assessments or governmental charges is required to be made by law (a “Tax Withholding”).

  If any such Tax Withholding is required to be made in respect of taxation arising in the United Kingdom or any political subdivision or any authority thereof or therein having power to tax (or any other jurisdiction in which the Issuer may be domiciled or resident or to whose taxing jurisdiction it may be generally subject) (“Tax Jurisdiction”), the Issuer will pay such additional amounts as will result in the receipt by the Bondholders of the amounts which would 

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  have been received by them had no such Tax Withholding been required, except that no such additional amounts shall be payable on any Bond:

  (a)to a Bondholder (or to a third party on behalf of a Bondholder) which is subject to such taxes, duties, assessments or governmental charges in respect of such Bond by reason of having some connection with the Tax Jurisdiction otherwise than merely by holding the Bond or by the receipt of amounts in respect of the Bond; or

  (b)where the Bondholder would have been able lawfully to avoid (but has not so avoided) such withholding or deduction by complying, or (if it is within the Bondholder’s control to do so) procuring that any person who is associated or connected with the Bondholder for the purposes of any taxes, duties, assessments or governmental charges complies, with any statutory requirement or by making, or (if it is within the Bondholder’s control to do so) procuring that any such person makes, a declaration of non-residence or any other claim for exemption to any tax authority.

  References in these Conditions to principal and/or interest and/or any other amounts payable in respect of the Bonds shall be deemed also to refer to any additional amounts which may be payable under this Condition.

  Where a Tax Withholding is imposed or levied by or on behalf of the United Kingdom or any political subdivision or any authority thereof or therein having power to tax, the exclusions in the second paragraph of this Condition 8 shall only apply if the Bonds have been (and remain) listed on any recognised stock exchange (within the meaning of Section 1005 of ITA 2007) or admitted to trading on a “multilateral trading facility” operated by a UK or EEA-regulated recognised stock exchange (within the meaning of Sections 987 and 1005 of the ITA 2007).

  9.Payments

  9.1Principal

  Payment of principal and interest in respect of the Bonds and delivery of any ADSs pursuant to these Conditions will be made to, or to the order of, and in accordance with the Payment Details provided by, the persons shown in the Register (as defined in the Bond Agreement) at the close of business on the Record Date.

  9.2Other amounts

  Payments of all amounts other than as provided in Condition 9.1 will be made as provided in these Conditions.

  9.3Record Date

  “Record Date” means the fifth London and New York business day before the due date for the relevant payment.

   

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  9.4Payments

  (a)Each payment in respect of Bonds pursuant to Conditions 9.1 and 9.2 will, with respect to each relevant Bondholder, be made by transfer to a US Dollar account in accordance with the relevant Payment Details.

  (b)All payments in respect of the Bonds are subject in all cases to any applicable fiscal or other laws and regulations in the place of payment.

  (c)The Issuer shall initiate, or shall procure the initiation of, payment instructions for value the due date, or, if the due date is not a New York business day, for value the next succeeding New York business day.

  9.5Delay in payment

  Bondholders will not be entitled to any interest or other payment for any delay after the due date in receiving the cash amount due to be paid or, as the case may be, the ADSs due to be delivered:

  (a)as a result of the due date not being a business day in New York or in the city in which the recipient account is based; or

  (b)as a result of the relevant Bondholder failing to provide fulsome and correct Payment Details.

  9.6Calculation Agent

  The Issuer reserves the right, subject to the prior approval of the Bondholders (not to be unreasonably withheld, and after being given not less than 10 Notice Business Days’ notice), under the Calculation Agency Agreement at any time to vary or terminate the appointment of the Calculation Agent and appoint another Calculation Agent, provided that it will maintain a Calculation Agent which shall be a financial institution of international repute or an independent financial adviser with appropriate expertise. The Issuer shall promptly notify the Bondholders of any such proposal of a variation, termination or appointment.

  9.7No charges

  Without prejudice to the provisions in the sixth paragraph of Condition 6.10 and Condition 9.9(e)(iii), neither the Issuer nor any person or agent acting on its behalf shall make or impose on a Bondholder any charge or commission in relation to any payment, transfer or conversion in respect of the Bonds including any issue or delivery of Ordinary Shares or ADSs pursuant to the exercise of any ADS Settlement Option by the Issuer.

  9.8Fractions

  When making payments to Bondholders, if the relevant payment is not of an amount which is a whole multiple of the smallest unit of the relevant currency in which such payment is to be made, such payment will be rounded down to the nearest unit.

  9.9ADS Settlement Option

  (a)Conditions to exercise

  The Issuer may elect to satisfy its obligation to pay cash interest on the Bonds on any Interest Payment Date pursuant to Condition 5.1(a) or to redeem in cash a principal amount of the Bonds in an Amortised Payment Amount on any Amortisation 
 

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  Payment Date pursuant to Condition 7.1(a) by the issue or transfer and delivery of 
 

   

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  Deliverable ADSs (and, if applicable, Additional Deliverable ADSs) to Bondholders, by exercising its Interest ADS Settlement Option or its Principal ADS Settlement Option, as applicable, (each of the Interest ADS Settlement Option and the Principal ADS Settlement Option, an “ADS Settlement Option” in respect of the relevant Interest Payment Date or Amortisation Payment Date, as applicable) with respect to all, but not some only, of the Bonds on the relevant Interest Payment Date or Amortisation Payment Date, as applicable, provided that if an ADS Settlement Liquidity Event shall have occurred on any date falling in the period from (and including) the Interest Payment Date or Amortisation Payment Date (as applicable) immediately preceding the relevant ADSSO Reference Date (or, if none, from (and including) the Closing Date) to (and including) the date immediately preceding the date on which the Deliverable ADSs are issued and/or transferred and delivered to Bondholders, then any such exercise of the ADS Settlement Option shall be null and void and such interest or principal amount shall be payable in cash.

  An “ADS Settlement Liquidity Event” shall have occurred on any date if one or more of the following conditions is met:

  (i)the ADSs are not listed and admitted to trading on a Qualifying US Market as at such date, or are suspended from trading on such market (provided that trading of the ADSs shall not be considered to be suspended on any day on which a general suspension of trading on such market has occurred) on such date;

  (ii)it would not be possible to issue and deliver to the Bondholders ADSs which are immediately freely tradeable under the Securities Act by holders who are not affiliates of the Issuer, and have not been affiliates of the Issuer within the preceding three months;

  (iii)an Event of Default or Potential Event of Default shall have occurred and be continuing as at such date;

  (iv)a Free Float Event shall have occurred and be continuing as at such date; or

  (v)an Offer Period (as defined below) shall be continuing as at such date.

  (b)ADS Settlement

  Where the ADS Settlement Option has been exercised, the Issuer shall, in lieu of paying cash in respect of interest on the relevant Interest Payment Date or in respect of Amortised Payment Amount on the relevant Amortisation Payment Date, as applicable, effect such payment or partial redemption in respect of each Bond by issuing and/or transferring and delivering the Deliverable ADSs to the Bondholders not later than four London and New York business days following such ADSSO Reference Date, and, if applicable, issuing and/or transferring and delivering the Additional Deliverable ADSs not later than four London and New York business days following the relevant Reference Date (each, a “ADS Settlement”).

  Fractions of ADSs will not be issued or transferred or delivered pursuant to this Condition 9.9 and no cash payment will be made in lieu thereof. However, to the extent that the ADSs to be issued and/or transferred and delivered pursuant to this Condition 9.9 are to be registered in the same name, the number of ADSs to be issued and/or transferred and delivered in respect thereof shall be calculated on the basis of the 

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  aggregate principal amount of such Bonds, as determined in good faith by the Calculation Agent.

  Promptly following the determination of the Relevant ADS Settlement Price and the number of Deliverable ADSs, the Issuer shall give notice thereof to the Bondholders in accordance with Condition 16.

  (c)Certain definitions

  For the purposes of these Conditions:

  “Offer Period” means (i) any period commencing on the date of first public announcement of an offer or tender (howsoever described) by any person or persons in respect of all or a majority of the issued and outstanding Ordinary Shares and ending on the date that offer or tender ceases to be open for acceptance or, if earlier, on which that offer or tender lapses or terminates or is withdrawn or (ii) any period commencing on the date of first public announcement of a Scheme of Arrangement relating to the acquisition of all or a majority of the issued and outstanding Ordinary Shares and ending on the date such Scheme of Arrangement is or becomes effective or, if earlier, the date such Scheme of Arrangement is cancelled or terminated or (iii) the period during which the Issuer is stated as being in an offer period on the Takeover Panel’s Disclosure Table on the Takeover Panel’s website.

  “Deliverable ADSs” means, in respect of any Bond and any Interest Payment Date or Amortisation Payment Date, such number of ADSs (unrounded) determined in good faith by the Calculation Agent by dividing the relevant interest amount in respect of such Bond (which would otherwise be payable in cash) on such Interest Payment Date or the relevant Amortised Payment Amount in respect of such Bond (which would otherwise be payable in cash) on such Amortisation Payment Date, as applicable, by the Relevant ADS Settlement Price in respect of such Interest Payment Date or Amortisation Payment Date (as applicable).

  “Relevant ADS Settlement Price” means, in respect of any ADSSO Reference Date, the product (rounded to the nearest whole multiple of $0.0001 (with $0.00005 being rounded upwards) of (i) 85 per cent. and (ii) the US Dollar price per ADS which is the lower of:

  (i)the 5-Day ADSSO Average Market Price in respect of such ADSSO Reference Date;

  (ii)the 10-Day ADSSO Average Market Price in respect of such ADSSO Reference Date;

  (iii)the Volume Weighted Average Price of an ADS (translated if necessary into US Dollars at the Prevailing Rate) on such ADSSO Reference Date; and

  (iv)the Conversion Price in effect on such ADSSO Reference Date, except that where such ADSSO Reference Date falls on or after the date an adjustment to the Conversion Price takes effect pursuant to Conditions 6.2(a), 6.2(b), 6.2(c), 6.2(d), 6.2(e) or 6.2(i) but on or prior to the record date or other due date for establishment of entitlement in respect of the relevant event giving rise to such adjustment, then provided the Issuer is able to confer the benefit of relevant consolidation, reclassification, redesignation or subdivision, Dividend, issue 
or grant (as the case may be) to the relevant Bondholder in respect of the 

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  relevant ADSs to be issued and/or transferred and delivered to such Bondholder pursuant to this Condition 9.9, the Conversion Price for the purpose of this definition shall be such Conversion Price as would have 
been applicable on such ADSSO Reference Date had no such adjustment been made,

  as determined by the Calculation Agent.

  “ADSSO Reference Date “ means, in respect of any ADS Settlement, the relevant Interest Payment Date or Amortisation Payment Date in respect of which the ADS Settlement Option is exercised; and in the case of ADS Settlement of any Amortisation Payment Amount which is subject to an Amortised Payment Deferral, shall be the relevant Amortisation Payment Date to which such payment has been deferred; and in the case of ADS Settlement of any Amortisation Payment Amount which is subject to an Amortised Payment Advancement (including any Amortisation Payment Amount which was previously subject to an Amortised Payment Deferral), shall be the Amortisation Payment Date immediately preceding the relevant Accelerated Amortisation Payment Date.

  “5-Day ADSSO Average Market Price” and “10-Day ADSSO Average Market Price” each means, in respect of any ADSSO Reference Date, the arithmetic average of the Volume Weighted Average Price of an ADS (translated if necessary into US Dollars at the Prevailing Rate) on each Dealing Day in the Average Market Price Observation Period in respect of such 5-Day ADSSO Average Market Price or 10-Day ADSSO Average Market Price, as the case may be, provided that:

  (i)if any such Dealing Day falls on or after (A) the Applicable Adjustment Reference Date in respect of any adjustment required to be made to the Conversion Price pursuant to these Conditions (other than an adjustment pursuant to Condition 6.4 or Condition 6.5) and such adjustment is an ADS Settlement Retroactive Adjustment or (B) the Ex-Date in respect of any Dividend (or other entitlement) which the ADSs to be issued and/or transferred and delivered pursuant to this Condition 9.9 are entitled to, then the Volume Weighted Average Price of an ADS on such Dealing Day shall (in the case of (A)) be divided by the adjustment factor (as determined pursuant to these Conditions) applied to the Conversion Price in respect of such adjustment or (in the case of (B)) increased by amount equal to the Fair Market Value of such Dividend (or other entitlement) as at such Ex-Date as aforesaid;

  (ii)if any such Dealing Day falls before the Applicable Adjustment Reference Date in respect of any adjustment required to be made to the Conversion Price pursuant to these Conditions (other than an adjustment pursuant to Condition 6.4 or Condition 6.5) and such adjustment is in effect on such ADSSO Reference Date, then the Volume Weighted Average Price on such Dealing Day shall be multiplied by the adjustment factor (as determined pursuant to these Conditions) applied to the Conversion Price in respect of such adjustment; and

  (iii)if any doubt shall arise as to the calculation of the 5-Day ADSSO Average Market Price or 10-Day ADSSO Average Market Price, as the case may be, or if the 5-Day ADSSO Average Market Price or 10-Day ADSSO Average Market Price, as the case may be, cannot be determined as provided above, the 5-Day ADSSO Average Market Price or 10-Day ADSSO Average Market Price, as the case may be, shall be equal to such price as is determined in such 

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  other manner as an Independent Adviser shall consider to be appropriate to give the intended result.

   

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  (d)ADS Settlement Option Annulment

  If either (a) the Issuer does not exercise its ADS Settlement Option (including electing to make the relevant payments in cash in accordance with Condition 5.1(b) or Condition 7.1(b)) or (b) the Issuer does exercise its ADS Settlement Option but an ADS Settlement Liquidity Event occurs thereafter but on or prior to the issue or transfer and delivery of the Deliverable ADSs (such circumstances being referred to as an “ADS Settlement Option Annulment”), the relevant interest amount or Amortised Payment Amount shall be paid in cash in accordance with the relevant provisions of Condition 5.1(a) or Condition 7.1(a), as applicable, and payment in respect thereof shall be made in accordance with this Condition 9.

  (e)Provisions relating to the ADS Settlement Option

  If the Issuer elects to exercise the ADS Settlement Option in respect of any ADSSO Reference Date, the following provisions shall apply:

  (i)Ordinary Shares represented by ADSs issued and/or transferred and delivered to the Bondholders pursuant to this Condition 9.9 will be fully paid and in all respects will rank pari passu with all other Ordinary Shares in issue on the relevant ADSSO Reference Date (or, in the case of Ordinary Shares represented by Additional Deliverable ADSs, the relevant Reference Date) (except for any right excluded by mandatory provisions of applicable law) and such Ordinary Shares will be entitled to all rights to the same extent as all other fully-paid Ordinary Shares of the Issuer. ADSs (including any Additional Deliverable ADSs) issued and/or transferred and delivered pursuant to this Condition 9.9 will be fully paid and will in all respects rank pari passu with the other ADSs in issue on the such ADSSO Reference Date (or, in the case of Additional Deliverable ADSs, on the relevant Reference Date) (except in any such case for any right excluded by mandatory provisions of applicable law) and without prejudice to the provisions of the Deposit Agreement, the relevant Bondholder shall be treated as the holder thereof with effect from, and be entitled to all rights, distribution, payments and entitlements relating to such ADSs in respect of which the record date or other due date for the establishment of entitlement in respect of the Ordinary Shares represented by such ADSs on or after the ADSSO Reference Date, or as the case may be, the relevant Reference Date. Such Deliverable ADSs or, as the case may be, Additional Deliverable ADSs will not rank for (or, as the case may be, the relevant holder shall not be entitled to receive) any rights, distributions or payments relating to such ADSs in respect of which the record date or other due date for the establishment of entitlement in respect of the Ordinary Shares represented by the ADSs for which falls prior to such ADSSO Reference Date or, as the case may be, the relevant Reference Date.

  (ii)Deliverable ADSs (including any Additional Deliverable ADSs) issued or transferred and delivered in connection with an ADS Settlement Option will be immediately freely tradeable under the Securities Act by holders who are not affiliates of the Issuer, and have not been, affiliates of the Issuer within the preceding three months.

   

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  (iii)A Bondholder must pay any capital, stamp, issue and registration and transfer taxes or duties arising on the issue or transfer and delivery of the relevant Deliverable ADSs or Additional Deliverable ADSs, excluding any Specified Taxes (which shall be payable by the Issuer). Such Bondholder must pay, or procure payment of, all, if any, taxes arising by reference to any disposal or deemed disposal of a Bond or interest therein by it in connection with the exercise of such ADS Settlement. If the Bondholder fails to pay any such taxes (other than any Specified Taxes, which shall be payable by the Issuer) referred to in the foregoing provisions of this Condition 9.9(e)(iii), the Issuer shall be entitled to tender and pay the same and the Bondholder, as a separate and independent stipulation, covenants to reimburse and indemnify the Issuer in respect of any payment thereof and any interest and penalties payable and any documented costs incurred in respect thereof.

  (iv)Delivery of Deliverable ADSs (including Additional Deliverable ADSs) will be made in uncertificated form through DTC to its direct and indirect participants to the account specified by the relevant Bondholder in the Payment Details, unless at the relevant time the Deliverable ADSs (including Additional Deliverable ADSs) are not a participating security in DTC, in which case the Deliverable ADSs will be issued or delivered in certificated form.

  (v)Where Deliverable ADSs are to be issued or transferred and delivered in certificated form, a certificate in respect thereof will be dispatched by mail free of charge to the relevant Bondholder in accordance with its Payment Details or as it may otherwise direct.

   

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  10.Events of Default

  If any of the following events (each an “Event of Default”) occurs and is continuing, the holders of at least one-quarter in principal amount of the Bonds then outstanding may give notice in writing to the Issuer that the Bonds are, and upon such notice the Bonds shall accordingly immediately become, without further action or formality, due and repayable at the Relevant Amount together with accrued interest (if any) to (but excluding) the date of payment:

  (a)default for 14 days in the payment when due of any interest or any other amounts (other than principal or any Cash Alternative Amount) with respect to the Bonds;

  (b)default for seven days in the payment when due of the principal of the Bonds or any Cash Alternative Amount (on an Amortisation Payment Date, at final maturity, upon redemption or otherwise);

  (c)the Issuer fails to deliver ADSs following any exercise of Conversion Rights or ADS Settlement Option and such failure continues for seven days;

  (d)the Issuer does not perform or comply with any one or more of its other obligations in the Bonds or the Bond Documents or if any event occurs or any action is taken or failed to be taken which is (or but for the provisions of any applicable law would be) a breach of any such obligation, and which default or breach is incapable of remedy or is not remedied within 30 days after notice of such default or breach shall have been received by the Issuer from any Bondholder requiring the same to be remedied and in such case such breach would reasonably likely to be materially prejudicial to the interests of the Bondholders;

  (e)it becomes unlawful for the Issuer to perform or comply with any one or more of its obligations under any of the Bonds or the Bond Documents and in such case such breach would be reasonably likely to be materially prejudicial to the interests of the Bondholders;

  (f)(i)	any other present or future Financial Indebtedness of the Issuer or any of its Material Subsidiaries becomes due and payable prior to its stated maturity by reason of any event of default or the like (howsoever described), or

  (ii)any such Financial Indebtedness is not paid when due or, as the case may be, within any originally applicable grace period, or

  (iii)the Issuer or any of its Material Subsidiaries fails to pay when due any amount payable by it under any present or future Financial Indebtedness Guarantee,

  provided that the aggregate amount of the relevant Financial Indebtedness and/or Financial Indebtedness Guarantee in respect of which one or more of the events mentioned above in this Condition 10(f) have occurred equals or exceeds 3 per cent. of the total gross consolidated assets of the Group (calculated by reference to the most recent audited consolidated financial statements of the Issuer);

  (g)a distress, attachment, execution or other legal process is levied, enforced or sued out on or against the property, assets or revenues of the Issuer or any of its Material 

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  Subsidiaries with a value, individually or in the aggregate, in excess of $5 million, or its equivalent and is not discharged within 30 days;

  (h)any mortgage, charge, pledge, lien or other encumbrance, present or future, created or assumed by the Issuer or any of its Material Subsidiaries, over assets with a value, individually or in the aggregate, in excess of $5 million, or its equivalent, becomes enforceable and any step is taken to enforce it (including the taking of possession or the appointment of a receiver, administrative receiver, administrator, manager or other similar person) and is not discharged within 30 days;

  (i)the Issuer or any of its Material Subsidiaries is (or is determined by law or a court to be) insolvent or bankrupt or unable to pay its debts, stops, suspends or threatens to stop or suspend payment of all or a material part of (or a material part of a particular type of) its debts, proposes or makes a general assignment or an arrangement or composition with or for the benefit of the relevant creditors in respect of any of such debts or a moratorium is agreed or declared or comes into effect in respect of or affecting all or any part of (or of a particular type of) the debts of the Issuer or any of its Material Subsidiaries, except for the purpose of and followed by a reconstruction, amalgamation, reorganisation, merger or consolidation (i) on terms approved by the Majority Bondholders, or (ii) in the case of a Material Subsidiary, whereby the undertaking and assets of the Material Subsidiary are transferred to or otherwise vested in the Issuer or another of its Subsidiaries; or

  (j)an administrator is appointed, an order is made or an effective resolution passed for the winding-up or dissolution or administration of the Issuer or any of its Material Subsidiaries (and such order is not discharged within 30 days), or the Issuer ceases or threatens to cease to carry on all or a substantial part of its business or operations, except (i) for the purpose of and followed by a reconstruction, amalgamation, reorganisation, merger or consolidation (A) on terms approved by the Majority Bondholders, or (B) in the case of a Material Subsidiary, whereby the undertaking and assets of the Material Subsidiary are transferred to or otherwise vested in the Issuer or another of its Subsidiaries or (ii) in relation to any solvent winding-up or dissolution as part of a NewCo Scheme permitted by the Conditions (and in accordance with Condition 11(g) and Condition 15).

  For the purposes of this Condition 10, “Relevant Amount” means, in respect of the principal amount of each Bond which is outstanding (as may be adjusted from time to time in accordance with Condition 7.1), an amount equal to such principal amount, save that if the relevant Event of Default occurs as a result of or in connection with a failure by the Issuer to comply with any of its obligations in relation to the exercise of Conversion Rights or ADS Settlement Option (except in de minimis respects), it means an amount in cash equal to the higher of:

   

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  (a)the Fair Market Value (determined as at the relevant Conversion Date, Interest Payment Date or Amortisation Payment Date referred to below, as applicable) of the ADSs per Bond and any other amounts which would have been payable and/or deliverable on conversion or in respect of such ADS Settlement, in respect of such Bond had the date of such declaration of the relevant Event of Default been the Conversion Date relating to such exercise of Conversion Rights or the relevant Interest Payment Date or Amortisation Payment Date in respect of which such ADS Settlement Option was exercised (as applicable); and

  (b)such principal amount.

  Following an Event of Default and the Bondholders having given notice to the Issuer that the Bonds are due and pay`able, references in these Conditions and the Bond Agreement to the principal amount of the Bonds shall, unless the context otherwise requires, include the Relevant Amount.

  11.Undertakings

  The Issuer will, save with the approval of the holders of at least 90 per cent. in principal amount of the Bonds outstanding:

  (a)not issue or pay up any Securities, in either case by way of capitalisation of profits or reserves, other than:

  (i)pursuant to a Scheme of Arrangement involving a reduction and cancellation of Ordinary Shares and the issue to Shareholders of an equal number of Ordinary Shares by way of capitalisation of profits or reserves; or

  (ii)pursuant to or in connection with a Newco Scheme; or

  (iii)by the issue of fully paid Ordinary Shares or other Securities to Shareholders and other holders of shares in the capital of the Issuer which by their terms entitle the holders thereof to receive Ordinary Shares or other Securities on a capitalisation of profits or reserves; or

  (iv)by the issue of fully paid Ordinary Shares, issued wholly, ignoring fractional entitlements, in lieu of the whole or part of a Dividend in cash; or

  (v)by the issue of Ordinary Shares or any equity share capital to, or for the benefit of, employees or former employees, director or executive holding or formerly holding executive office (including directors holding or formerly holding executive office or non-executive office, consultants or former consultants or the personal service company of any such person) or their spouses or relatives, in each case of the Issuer or any of its Subsidiaries or any associated company or to a trustee or nominee to be held for the benefit of any such person, in any such case pursuant to an employee, contractor, director or executive share or option or incentive scheme whether for all employees, contractors, directors or executives or any one or more of them 

  ((i) to (v) above each being a “Permitted Issue”), unless, in any such case, the same constitutes a Dividend or otherwise falls to be taken into account for a determination as to whether an adjustment is to be made to the Conversion Price pursuant to
Condition 6.2, regardless of whether in fact an adjustment falls to be made in respect  

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  of the relevant event (or would, but for the provisions of Condition 6.8 relating to roundings and minimum adjustments or the carry forward of adjustments, give rise to an adjustment to the Conversion Price);

  (b)not modify the rights attaching to the Ordinary Shares with respect to voting, dividends or liquidation nor issue any other class of equity share capital carrying any rights which are more favourable than the rights attaching to the Ordinary Shares but so that nothing in this Condition 11(b) shall prevent:

  (i)any consolidation, reclassification, redesignation or subdivision of the Ordinary Shares; or

  (ii)any modification of such rights which is not, in the opinion of an Independent Adviser acting in good faith, materially prejudicial to the interests of the holders of the Bonds; or

  (iii)any issue of equity share capital where the issue of such equity share capital results, or would, but for the provisions of Condition 6.8 relating to roundings and minimum adjustments or the carry forward of adjustments or Condition 6.2(l) or, where comprising Ordinary Shares, the fact that the consideration per Ordinary Share receivable therefor is at least 95 per cent. of the Current Market Price per Ordinary Share at the relevant time for determination thereof pursuant to the relevant provisions of Condition 6.2, otherwise result, in an adjustment to the Conversion Price; or

  (iv)without prejudice to any rule of law or legislation (including regulations made under Sections 783, 784(3), 785 and 788 of the Companies Act or any other provision of that or any other legislation), the conversion of Ordinary Shares into, or the issue of any Ordinary Shares in, uncertificated form (or the conversion of Ordinary Shares in uncertificated form to certificated form) or the amendment of the Articles of Association of the Issuer to enable title to securities (including Ordinary Shares) to be evidenced and transferred without a written instrument or any other alteration to the Articles of Association of the Issuer made in connection with the matters described in this Condition 11(b) or which is supplemental or incidental to any of the foregoing (including any amendment made to enable or facilitate procedures relating to such matters and any amendment dealing with the rights and obligations of holders of Securities, including Ordinary Shares, dealt with under such procedures); or

  (v)any issue of equity share capital or modification of rights attaching to the Ordinary Shares, where prior thereto the Issuer shall have instructed an Independent Adviser to determine what (if any) adjustments should be made to the Conversion Price as being fair and reasonable to take account thereof and such Independent Adviser shall have determined in good faith either that no adjustment is required or that an adjustment resulting in a decrease in the Conversion Price is required and, if so, the new Conversion Price as a result thereof and the basis upon which such adjustment is to be made and, in any such case, the date on which the adjustment shall take effect (and so that the adjustment shall be made and shall take effect accordingly); or

   

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  (vi)any amendment of the Articles of Association of the Issuer following or in connection with a Change of Control to ensure that any Bondholder exercising Conversion Rights where the Conversion Date falls on or after the occurrence of a Change of Control will receive, in whatever manner, the same consideration for the Ordinary Shares arising on such exercise as it would have received in respect of any Ordinary Shares had such Ordinary Shares been entitled to participate in the relevant Scheme of Arrangement or to have been submitted into, and accepted pursuant to, the relevant offer or tender (a “Change of Control Conversion Right Amendment”); or

  (vii)a Permitted Issue;

  (c)except as part of or in connection with or pursuant to any employee, contractor, director or executive share or option or incentive scheme (whether for all employees, contractors, directors or executives or any one or more of them), procure that no Securities which were originally issued (whether issued by the Issuer or any Subsidiary of the Issuer or procured by the Issuer or any Subsidiary of the Issuer to be issued or issued by any other person pursuant to any arrangement with the Issuer or any Subsidiary of the Issuer) without rights to convert into, or exchange or subscribe for, Ordinary Shares (or ADSs or other depositary or other receipts or certificates representing Ordinary Shares) shall subsequently be granted such rights exercisable at a consideration per Ordinary Share which is less than 95 per cent. of the Current Market Price per Ordinary Share at the relevant time for determination thereof pursuant to the relevant provisions of Condition 6.2 unless the same gives rise (or would, but for the provisions of Condition 6.8 relating to roundings and minimum adjustments or the carry forward of adjustments or Condition 6.2(l), give rise) to an adjustment to the Conversion Price and that at no time shall there be in issue Ordinary Shares of differing nominal values, save where such Ordinary Shares have the same economic rights;

  (d)not make any issue, grant or distribution or take or omit to take any other action if the effect thereof would be that, on the exercise of Conversion Rights, Ordinary Shares to be issued and represented by ADSs could not, under any applicable law then in effect, be legally issued as fully paid;

  (e)not reduce its issued share capital, share premium account, or any uncalled liabili ty in respect thereof, or any non-distributable reserves, except:

  (i)pursuant to the terms of issue of the relevant share capital; or

  (ii)by means of a purchase or redemption of share capital of the Issuer to the extent permitted by applicable law; or

  (iii)where the reduction does not involve any distribution of assets to Shareholders; or

  (iv)solely in relation to a change in the currency in which the nominal value of the Ordinary Shares is expressed; or

  (v)to create distributable reserves; or

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  (vi)pursuant to a Scheme of Arrangement involving a reduction and cancellation of Ordinary Shares and the issue to Shareholders of an equal number of Ordinary Shares by way of capitalisation of profits or reserves; or

  (vii)as provided in Condition 11(a)(i); or

  (viii)pursuant to a Newco Scheme; or

  (ix)by way of transfer to reserves as permitted under applicable law; or

  (x)where the reduction is permitted by applicable law and the Bondholders are advised by an Independent Adviser, acting as an expert and in good faith, that in its opinion the interests of the Bondholders will not be materially prejudiced by such reduction; or

  (xi)where the reduction is permitted by applicable law and results (or, in the case of a reduction in connection with a Change of Control, will result) in (or would, but for the provisions of Condition 6.8 relating to roundings or the carry forward of adjustments, result in) an adjustment to the Conversion Price or is (or, in the case of a reduction in connection with a Change of Control, will be) otherwise taken into account for the purposes of determining whether such an adjustment should be made; or

  (xii)as permitted by Section 610 (2) and (3) of the Companies Act; or

  (xiii)a reduction of its share premium account to facilitate the writing off of goodwill arising on consolidation which requires the confirmation of the High Court and which does not involve the return, either directly or indirectly, of an amount standing to the credit of the share premium account of the Issuer and in respect of which the Issuer shall have tendered to the High Court such undertaking as it may require prohibiting, so long as any of the Bonds remains outstanding, the distribution (except by way of capitalisation issue) of any reserve which may arise in the books of the Issuer as a result of such reduction;

  provided that, without prejudice to the other provisions of these Conditions, the Issuer may exercise such rights as it may from time to time be entitled pursuant to applicable law to purchase, redeem or buy back its Ordinary Shares and any depositary or other receipts or certificates representing Ordinary Shares without the consent of Bondholders;

   

   

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  (f)in the event of a Newco Scheme, take (or shall procure that there is taken) all necessary action to ensure that (to the satisfaction of the Bondholders) immediately after completion of the Scheme of Arrangement:

  (i)at the Issuer’s option, either (a) Newco is substituted under the Bonds and the Bond Documents as principal obligor in place of the Issuer (with the Issuer providing a guarantee) subject to and as provided in Condition 15; or (b) Newco becomes a guarantor under the Bonds and the Bond Documents, in each case on terms satisfactory to the Bondholders;

  (ii)such amendments are made to these Conditions and the Bond Documents as are necessary, in the opinion of the Bondholders, to ensure that the Bonds may be converted into or exchanged for cash and/or ordinary shares or units or the equivalent in Newco (or depositary or other receipts or certificates representing ordinary shares or units or the equivalent in Newco) mutatis mutandis in accordance with and subject to these Conditions with a Conversion Price (subject to adjustment as provided in these Conditions) economically equivalent to the Conversion Price immediately prior to the implementation of such amendments, as determined in good faith by an Independent Adviser;

  (iii)the ordinary shares or units or equivalent of Newco (or depositary or other receipts or certificates representing ordinary shares or units or equivalents of Newco) are admitted to trading on a regulated, regularly operating, recognised stock exchange or securities market as determined by Newco; and

  (iv)the Bond Documents and the Conditions provide at least the same or equivalent powers, protections, rights and benefits to the Bondholders following the implementation of such Newco Scheme as they provided to the Bondholders prior to the implementation of the Newco Scheme, mutatis mutandis,

  and the Bondholders shall (at the expense of the Issuer, including payment by the Issuer of the reasonably incurred fees of Bondholders’ legal counsel, and subject to the satisfaction of the conditions set out in (i) to (iv) above and provided that the interests of Bondholders are not materially adversely prejudiced thereby) be obliged to concur in effecting such substitution or grant of such guarantee and in either case making any such amendments, provided that the Bondholders shall not be obliged so to concur if, in the opinion of the Bondholders, doing so would impose more onerous obligations upon any of them or expose any of them to any additional duties, responsibilities or liabilities in any way.

   

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  (g)use all reasonable endeavours to ensure that the ADSs issued and/or transferred and delivered upon exercise of Conversion Rights or in relation to an ADS Settlement will, as soon as is practicable, be listed and admitted to trading on the Relevant Stock Exchange and will be listed, quoted or dealt in, as soon as is practicable, on any other stock exchange or securities market on which the ADSs may then be listed or quoted or dealt in (but so that this undertaking shall be considered as not being breached as a result of a Change of Control (whether or not recommended or approved by the board of directors of the Issuer) that causes or gives rise to, whether following the operation of any applicable compulsory acquisition provision or otherwise, (including at the request of the person or persons controlling the Issuer as a result of the Change of Control) a de-listing of the ADSs);

  (h)use all reasonable endeavours to maintain the ADS facility in accordance with the Deposit Agreement such that ADSs can be delivered as and when required to satisfy Conversion Rights;

  (i)use all reasonable endeavours to ensure that any limit imposed upon the ADS facility would not be exceeded, which includes increasing the number of ADSs registered, should ADSs deliverable upon conversion of all outstanding Bonds be delivered;

  (j)use all reasonable endeavours to ensure that there are no restrictions on conversion of Ordinary Shares into ADSs (save as provided in the Deposit Agreement) which would preclude the new ADSs issued upon conversion of all outstanding Bonds or delivered in connection with an ADS Settlement Option from being fungible with existing ADSs, including being immediately freely tradeable under the Securities Act by holders who are not affiliates of the Issuer, and have not been, affiliates of the Issuer within the preceding three months;

  (k)request its legal advisers to provide to the Depositary such legal opinions as to US law (and other laws) as required by the Depositary in connection with the issuance, transfer, conversion or cancellation of ADSs or as provided for under the terms of the Deposit Agreement;

  (l)use all reasonable endeavours to procure that it shall not become domiciled or resident for relevant tax purposes in any jurisdiction other than the United Kingdom or within the United Kingdom unless:

  (i)it would not thereafter be required pursuant to then current laws and regulations to make any greater withholding or deduction for or on account of any taxes, duties, assessments or governmental charges of whatever nature imposed or levied by or on behalf of such jurisdiction or any applicable sub-division thereof or therein having power to tax; and

  (ii)holders of the Bonds (whether upon transfer of Bonds or otherwise) would not thereafter be required to pay any additional stamp, issue, transfer, documentary or other similar taxes and duties,

  in each case in respect of any payment on or in respect of the Bonds or the Bond Documents, or the transfer of any Bonds, (as applicable) than would be the case were the Issuer to remain domiciled and resident solely within the United Kingdom;

  (m)at all times keep available for issue, free from pre-emptive or other preferential rights out of its authorised but unissued capital sufficient allotment authority in respect of Ordinary Shares to enable the exercise of Conversion Rights in respect of all the 
 

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  Bonds (including any Further Bonds) then outstanding and all other rights of subscription and exchange for Ordinary Shares, to be satisfied in full, provided that notwithstanding anything to the contrary herein the Issuer shall neither issue more than the number of Ordinary Shares (including Ordinary Shares represented by ADSs) permitted by the applicable Shareholders authorisation in effect from time to time, unless further Shareholders authorisation has been obtained;

  (n)by not later than the first Interest Payment Date, make an application for admission to listing and trading of the Bonds on a “recognised stock exchange” (within the meaning of Section 1005 of the Income Tax Act 2007 (the “ITA 2007”) or their admission to trading on a “multilateral trading facility” operated by a UK or EEA-regulated recognised stock exchange (within the meaning of Sections 987 and 1005 of ITA 2007) and thereafter use all reasonable endeavours to maintain such listing or admission to trading provided that if the Issuer determines in good faith that it can no longer comply with its requirements for such listing or admission to trading, having used reasonable endeavours, or if the maintenance of such listing or admission to trading is unduly onerous or if, owing to a change of law after the Closing Date, such listing or admission to trading no longer provides an exemption from the obligation to deduct or withhold United Kingdom withholding tax on interest from payments made under or in respect of the Bonds, the Issuer will no longer be required to maintain that listing or admission to trading but will immediately obtain and maintain a listing on such other “recognised stock exchange” (within the meaning of Section 1005 of ITA 2007) or an admission to trading of the Bonds on such “multilateral trading facility” operated by a UK or EEA-regulated recognised stock exchange (within the meaning of Sections 987 and 1005 of ITA 2007) as the Issuer may in good faith determine;

  (o)with respect to any calculation, determination or adjustment performed by the Calculation Agent or an Independent Adviser at the instruction of the Issuer, promptly notify the Bondholders of the relevant results thereof (and, upon request from any Bondholder, shall promptly provide such Bondholder with relevant details of such calculation or determination as such Bondholder may reasonably require) and, at any time upon request from any Bondholder, confirm to the Bondholders (and with notice to the Calculation Agent) the Conversion Price and the Floor Price then in effect and details of any relevant prior calculations, determinations or adjustments as such Bondholder may reasonably require;

  (p)promptly upon:

  (i)the Issuer becoming aware that a Free Float Event may have occurred (or would be likely to have occurred, if an Independent Adviser had been requested to make such determination), acting reasonably, based on publicly available information (including but not limited to reports filed with the SEC pursuant to Section 13(d) of the Exchange Act) and without any requirement to make any further enquires; or

  (ii)a request being made by the Majority Bondholders (acting reasonably, and such request not being made more than once in any six-month period),

  the Issuer shall instruct an Independent Adviser to make a determination as to the number of Ordinary Shares comprising the Free Float;

   

   

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  (q)so far as permitted by applicable law and any applicable contractual obligations of confidentiality, at any time upon request from a Bondholder, as soon as practicable furnish to each Bondholder such information or materials as may be relevant to the operation of any of the provisions in the Bond Documents, including but not limited to any potential Change of Control, Free Float Event, De-Listing Event or ADS Settlement Liquidity Event, whether at any time a Subsidiary constitutes a Material Subsidiary and the relevant supporting calculations, evidence of the Issuer’s due and punctual performance of its obligations under the Bonds and the Bond Documents, provided that the Issuer shall not (without first entering into a separate confidentiality agreement with the relevant Bondholders) furnish any such information to the relevant Bondholders in connection with the Bonds, the ADSs, the Ordinary Shares, the Issuer or the Group that is of a price sensitive nature or inside information.

  12.Prescription

  Claims against the Issuer for payment in respect of the Bonds shall be prescribed and become void unless made within 10 years (in the case of principal or any other amount (other than interest)) or five years (in the case of interest) from the appropriate Relevant Date in respect of such payment.

  Claims in respect of any other obligation in respect of the Bonds, including delivery of Ordinary Shares, shall be prescribed and become void unless made within 10 years following the due date for performance of the relevant obligations.

  13.Replacement of Bond Certificates

  If any Bond Certificate is lost, stolen, mutilated, defaced or destroyed, it may be replaced by the Issuer subject to and in accordance with Clause 5.6 (Replacement of Bond Certificates) of the Bond Agreement.

  14.Amendment and Waiver

  14.1Amendment

  Subject to Condition 14.2 and Condition 14.4, the Bonds and the Bond Documents may be amended, or waivers or consents given in respect thereof, with the agreement of the Issuer and the Majority Bondholders and (without prejudice to the terms of the Calculation Agency Agreement) any such amendment, waiver or consent will be binding on all Bondholders and shall be notified by the Issuer to Bondholders as soon as practicable.

  14.2Reserved Matters

  The Issuer shall not agree to make any amendment, and no waiver or consent shall be effective, in respect of any Bondholder Reserved Matter, without the consent of the holders of at least 90 per cent. in principal amount of the Bonds outstanding.

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  14.3Voting Evidence

  In relation to any consent to be provided by Bondholders in accordance with the Bonds or the relevant Bond Documents, the Issuer shall provide or procure the provision of evidence satisfactory to each Bondholder (in each case acting reasonably) that specifies:

  (a)the principal amount outstanding held by Bondholders that delivered an instruction to consent, abstain or dissent to any proposal; and

  (b)the principal amount outstanding of Bonds held by or on behalf of the Issuer or any member of the Group or any of their respective affiliates (as referred to in the definition of “outstanding” in Condition 3).

  14.4Exclusions

  The consent of the Bondholders shall not be required in the event the Issuer effects any amendment to the Bonds or the Bond Documents pursuant to a NewCo Scheme Modification or otherwise effects a substitution in accordance with Condition 15 (so long as the interests of Bondholders are not materially adversely prejudiced thereby, and the terms and conditions set out in these Conditions are complied with), provided that the Issuer provides not less than 20 Notice Business Days’ written notice of such amendments to the Bondholders.

  15.Substitution

  The Issuer may at any time, without the consent of the Bondholders, effect any substitution as provided in, and for the purposes of, Condition 11(g) in connection with a Newco Scheme and Condition 6.16 in connection with a Successor in Business (and any such substitute issuer being, the “Substitute Issuer”), provided that:

  (a)the Issuer provides not less than 60 calendar days’ written notice to each Bondholder of such substitution, including the proposed effective date of such substitution, the identity of the Substitute Issuer and the latest audited financial statements of the Substitute Issuer, and such other information as the Bondholders may reasonably request upon receipt of such written notice;

  (b)the Bonds continue to be convertible, mutatis mutandis as provided in the Conditions, into ordinary shares in the capital of the Substitute Issuer with like rights, mutatis mutandis, to the ADSs (and the Ordinary Shares represented by the ADSs);

  (c)a deed is executed by the Substitute Issuer in a form and manner satisfactory to the Bondholders (acting reasonably), agreeing to be bound by the Bonds and each of the Bond Documents as if the Substitute Issuer has been named in such Bond Documents and the Bonds as the principal debtor in place of the Issuer, and therefrom releasing the Issuer from any or all of its obligations under the Bond Documents and the Bonds;

  (d)legal opinions from reputable counsel acceptable to the Bondholders are addressed 
and delivered to (at the expense of the Substitute Issuer) the Bondholders on the 
entry into the amendment deed and all other relevant documentation and
performance of the Substitute Issuer’s obligations under the Bonds and the enforceability thereof, in a form satisfactory to the Bondholders (acting reasonably);

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  (e)arrangements are made to the satisfaction of the Bondholders (acting reasonably) to have or be able to have the same or equivalent rights against the Substitute Issuer as they have against the Issuer (or any such previous substitute under this paragraph);

  (f)that, from the date of the substitution:

  (i)no greater withholding or deduction for or on account of any taxes, duties, assessments or governmental charges of whatever nature is imposed or levied by or on behalf of the taxing jurisdiction of the Substitute Issuer or any applicable sub-division thereof or therein having power to tax is applicable in respect of any payment on or in respect of the Bonds or the Bond Documents; and

  (ii)holders of the Bonds (whether upon transfer of Bonds or otherwise) would not thereafter be required to pay any additional stamp, issue, transfer, documentary or other similar taxes and duties in the tax jurisdiction of the Substitute Issuer,

  or that an indemnity in respect of any such additional amounts is provided by the Substitute Issuer to the satisfaction of the Bondholders (acting reasonably); and

  (g)any two directors of the Substitute Issuer certify that it will be solvent immediately after such substitution.

  Upon the satisfaction of such conditions, the Substitute Issuer will be deemed to be named in the Bond Documents (but without prejudice to the terms of the Calculation Agency Agreement) and the Bonds as the principal debtor in place of the Issuer (or of any previous substitute) and each Bond Document and the Bonds will be deemed to be modified in such manner as shall be necessary to give effect to the substitution.

  With effect from (and including) the date of such substitution, all payments of principal and interest payable in respect of the Bonds by the Substitute Issuer shall be made free and clear of, and without withholding or deduction for, any taxes, duties, assessments or governmental charges (including any penalties, interest and additions to tax related thereto) of whatsoever nature imposed, levied, collected, withheld or assessed by or on behalf of its taxing jurisdiction, unless such withholding or deduction is required by law. If, following the date of the substitution of the Substitute Issuer, there is any increase from the amounts or rates initially determined in Condition 15(f)(i) in respect of such withholding or deduction for or on account of any taxes, duties, assessments or governmental charges of whatever nature payable in respect of any payment on or in respect of the Bonds or the Bond Documents, the Substitute Issuer shall pay such additional amounts as will result in the receipt by the Bondholders of such amounts as would have been received by them if such withholding or deduction had not been increased (including any deduction or withholding attributable to the additional amounts).

  16.Notices

  All notices required to be given to Bondholders pursuant to the Conditions will (unless otherwise provided in these Conditions) be given in accordance with, Clause 13 (Notices) of the Bond Agreement, or such other contact details as any Bondholder may subsequently 
 

   

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  provide in writing to the Issuer from time to time or pursuant to a duly completed and executed Transfer and Accession Deed.

  The Issuer shall send a copy of all notices given by it to Bondholders (or a Bondholder) pursuant to these Conditions promptly to the Calculation Agent.

  As soon as reasonably practicable following the Closing Date, the Issuer shall by notice to the Bondholders in accordance with this Condition 16 (the “Initial Determinations Notice”), confirm the following details in relation to these Conditions: (a) the Reset Price Floor for each Reset Date (determined, solely for the purpose of such notice, on the basis of such initial Floor Price and Reference Conversion Price); (b) the Closing Date; (c) the Interest Payment Dates; (d) the Amortisation Payment Dates; (e) the Reset Dates; (f) the Final Maturity Date; and (g) each period of 14 calendar days prior to an Interest Payment Date and Amortisation Payment Date that constitutes a “Non-Trading Period” and each period of 6 weeks prior to each Reset Date that may constitute a “Non-Trading Period”, in each case as referred to and subject as provided in Clause 12.1 of the Bond Agreement.

  17.Further Issues

  The Issuer may not create and issue Further Bonds except with the prior written approval of all of the Bondholders. Any Further Bonds shall be constituted by a deed supplemental to the Bond Agreement.

  18.Contracts (Rights of Third Parties) Act 1999

  No person shall have any right to enforce any term or condition of the Bonds under the Contracts (Rights of Third Parties) Act 1999.

  19.Governing Law

  These Conditions, the Bond Agreement, the Calculation Agency Agreement and the Bonds and any non-contractual obligations arising out of or in connection with them are governed by, and shall be construed in accordance with, English law.

   

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  Schedule 5

  Form of Transfer and Accession Deed

  From: [New Holder] (the “New Holder”) and [Existing Holder] (the “Existing Holder”)

  To: Renalytix plc (the “Issuer”)

  [Date]

  To whom it may concern,

  U.S.$21,200,000 Amortising Senior Convertible Bonds due 2027 issued by the Issuer pursuant to the Bond Agreement dated 31 March 2022 (as amended or supplemented from time to time) (the “Agreement”)

  (A)	We refer to the Agreement. This is a Transfer and Accession Deed. Terms defined in the Agreement have the same meaning herein unless given a different meaning in this Deed.

  (B)	The Existing Holder confirms that the principal amount outstanding of Bonds which it holds is U.S.$[●].

  (C)	We refer to Clause 11 (Transfers of Rights and Obligations) of the Agreement:

  (a)the Existing Holder transfers to the New Holder the Existing Holder’s rights and obligations under the Bonds and the Agreement in the amount referred to in the schedule below.

  (b)the proposed transfer date is [●] 20[●] (the “Transfer Date”).

  (c)With immediate effect from the Transfer Date:

  (i)the Existing Holder shall be released from all the obligations of the Existing Holder under the Bonds and the Agreement which correspond to [the principal amount of Bonds held and owned by the Existing Holder and specified in paragraph 2 above]/[U.S.$[●] in principal amount of Bonds held and owned by the Existing Holder]; and

  (ii)the New Holder agrees to accede to the Agreement and agrees to be bound by, and undertakes to perform, the obligations binding a Bondholder under the Bonds and the Agreement.

  (D)	The administrative details for the New Holder for the purposes of the Bonds and the Agreement are as follows:

  [Insert postal address, email address and attention details for notices and account details for payments]

  (E)	This Deed may be entered into in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of the Deed.

  (F)	The provisions of Clause 8 (Governing Law and Jurisdiction) of the Agreement shall apply mutatis mutandis to this Deed as if set out fully herein.

  In Witness Whereof this Deed has been executed as a deed and delivered on the date stated at the beginning.

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  RENALYTIX PLC

  			
	as Issuer acting by [Name of first director], a director in the presence of:
	 
	 

	 
	By: 

	 
	Director

	 
	 

   

  Witness’s Signature 	

  Name: 	

  Address: 	

  Occupation: 	

  			
	[●]
as Existing Holder acting by [●]
	 
	 

	 
	By: 

	 
	 

	 
	 

	 
	 
	 

	 
	By: 

	 
	 

	 
	 

   

   

  			
	[●]
as New Holder acting by [●]
	 
	 

	 
	By: 

	 
	 

	 
	 

	 
	 
	 

	 
	By: 

	 
	 

	 
	 

   

   

  116

  

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  Schedule 6

  Form of Register

  [***]

   

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  Schedule 7

  Regulations Concerning Transfers and Registration of the Bonds

  1.The Company shall maintain a Register in respect of the Bonds and enter in it:

  (a)the initial principal amount of the Bonds, all amortising payments of principal, and the remaining principal amount of the Bonds at any time;

  (b)the date of issue of the Bonds;

  (c)all subsequent transfers and changes of ownership of Bonds;

  (d)the names and contact details of the holders of the Bonds;

  (e)the Conversion Price, Reference Conversion Price and Reset Price Floor (each as defined in the Conditions) in effect at any time;

  (f)details of all conversions of Bonds; and

  (g)details of all redemptions and cancellations of Bonds or replacements of Bond Certificates (whether because of their purchase by the Company, its Subsidiaries, their affiliates or otherwise).

  2.The Company shall maintain the Register and update it on a regular basis to reflect any changes to the information specified in paragraph 1 above and any changes in holdings or ownership.

  3.Without prejudice to Clause 5.2 (Title), a Bondholder may inspect the Register from 9.00 a.m. to 5.00 p.m. on any Business Day.

  4.Subject to Clause 5.4 (Closed Periods) and 11.2 (Permitted Transfers), Bonds may be transferred by execution of the relevant Transfer and Accession Deed under the hand of the transferor and the transferee or, where the transferor or transferee is a corporation, under its common seal or under the hand of two of its officers duly authorised in writing. Where and to the extent that any duty or tax is required to be paid before the effect of a transfer may lawfully be registered in the Register, the Company shall not be required to take any action in respect of such transfer (whether under this Schedule or under Clause 11.2 or otherwise) unless and until it has received evidence to its satisfaction that such tax or duty has been paid.

  5.The Bond Certificate issued in respect of the Bonds to be transferred must be surrendered for registration, together with the Transfer and Accession Deed (including any certification as to compliance with any restrictions on transfer), duly completed and executed, at the registered office of the Company, and together with such evidence as the Company may reasonably require to prove the title of the transferor and the authority of the persons who have executed the Transfer and Accession Deed.

  6.The executors or administrators of a deceased Bondholder of a Bond shall be the only persons recognised by the Company as having any title to such Bond.

   

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  7.Where there is more than one transferee (to hold other than as joint Bondholders), separate Transfer and Accession Deeds must be completed in respect of each new holding.

  8.Joint holdings of Bonds shall not be permitted and the entries in the Register shall identify a single person as the Bondholder of each Bond.

   

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