Document:

Exhibit 4.1.3

 

 

FIFTH AMENDED AND RESTATED CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM

 

$750,000,000

 

CLASS B LIMITED PARTNERSHIP UNITS

 

GPB AUTOMOTIVE PORTFOLIO, LP

 

July 2018

     

     

    

	
THE OFFER AND SALE OF UNITS HEREBY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR RESOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

 

CERTAIN NOTICES

 

This Fifth Amended and Restated Confidential Private Placement Memorandum (this “Memorandum”), which entirely replaces any prior offering memorandum of the Class B Units (defined below) of the Company (defined below), is being furnished on a confidential basis and is intended solely for the use of the recipient in connection with this offering. Each recipient, by accepting delivery of this Memorandum agrees not to copy or divulge the contents hereof to any person other than a legal, business, investment or tax advisor under the same duty of confidentiality and only in connection with obtaining the advice of any such persons with respect to this offering and not to reproduce or redistribute this Memorandum in whole or in part.

 

The Memorandum
relates to the offering (the “Offering”) of Class B Limited Partnership Units (the “Class B Units”)
by GPB Automotive Portfolio, LP, a Delaware limited partnership (the “Company,” “we” or
 “us”). We are separately (and not part of this Memorandum) offering Class A Limited Partnership Units (“Class
A Units,” together with the Class B Units, the “Units”). We are offering $750,000,000 in Units, which
amount may be increased at the sole discretion of GPB Capital Holdings, LLC, our general partner (the “General Partner,”
 “GPB” or the “GP”).

 

Class B Units are suitable only for sophisticated investors (i) who do not require immediate liquidity for their investments, (ii) for whom an investment in the Class B Units does not constitute a complete investment program and (iii) who fully understand and are willing to assume the risks involved in our acquisition program. An investment in the Class B Units involves significant risks. Prospective investors should carefully consider the information under “Risk Factors.”

 

The Class B Units
have not been approved or disapproved by the Securities and Exchange Commission (the “SEC”) or the securities
regulatory authority of any state, nor has the SEC or any such authority passed upon the accuracy or adequacy of this Memorandum.
Any representation to the contrary is unlawful. The Class B Units are being offered as a private placement to a limited number
of investors, will not be registered under the 1933 Act, or the securities laws of any state or foreign jurisdiction, may not
be sold or transferred without compliance with applicable federal, state, or foreign securities laws and may only be transferred
in compliance with (as applicable) our Fifth Amended and Restated Agreement of Limited Partnership (as the same may be amended
from time to time, the “LPA”). There is no public market for the Class B Units, and none is expected to develop.
The Company will not list Class B Units on any exchange.

 

The information in this Memorandum is given as of the date on the cover page, unless another time is specified, and investors may not infer from either the subsequent delivery of this Memorandum or any sale of Class B Units that there has been no change in the facts described since that date.

 

No representations or warranties of any kind are intended or should be inferred with respect to the economic return that may accrue to investors. Prospective investors must consider this investment to be highly illiquid. This Memorandum does not constitute an offer to sell or the solicitation of an offer to buy the Class B Units by any person in any state or jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. No offering literature or advertising in any form other than this Memorandum and the agreements and documents referred to herein may be considered to constitute an offering of the Class B Units.

 

In order to invest
in the Company, investors will be required to execute a subscription agreement and related investor questionnaire (the “Subscription
Documents”), attached in Exhibit C, which, among other things, requires that the investor certify as to its status
as an “Accredited Investor” (as defined in the 1933 Act). We reserve the right, notwithstanding any such offer, to
withdraw or modify the Offering and to reject any subscriptions for the Class B Units in whole or in part for any or no reason.

 

We intend to conduct
our operations so that we will not meet the definition of an “investment company” and thus will not register under
the Investment Company Act of 1940, as amended (the “1940 Act”). GPB is registered as an investment adviser
under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), though such registration does not
imply any type of qualification. GPB’s Disclosure Brochure (“Brochure”),
which provides additional information about GPB, its business and management, is attached to this Memorandum as Exhibit B.

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To assist us in monitoring our status under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) so that our assets are not deemed to be “plan assets,” we will require each prospective investor to make certain representations regarding its status under ERISA and the Internal Revenue Code of 1986, as amended (the “Code”). Also, each investor will be required to obtain from any potential transferee of Class B Units, for our benefit, representations as to the potential transferee’s status under ERISA and the Code, among other matters. See “Certain Tax, ERISA & Regulatory Matters.”

 

Nothing set forth in this Memorandum constitutes a recommendation that any person take or refrain from taking any course of action within the meaning of U.S. Department of Labor Regulation §2510.3-21(b)(1).

 

THIS MEMORANDUM DOES NOT PURPORT TO CONTAIN ALL OF THE INFORMATION THAT A PROSPECTIVE INVESTOR MAY DESIRE IN INVESTIGATING US AND THE SUITABILITY OF PURCHASE OF THE CLASS B UNITS. EACH INVESTOR MUST CONDUCT AND RELY UPON HIS / HER OR ITS OWN EVALUATION OF THE COMPANY AND OF THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED, IN MAKING AN INVESTMENT DECISION. THIS MEMORANDUM IS CURRENT AS OF THE DATE SHOWN ON THE COVER. CHANGES IN OUR STATUS AND AFFAIRS MAY OCCUR AFTER THE DATE ON THE COVER OF THIS MEMORANDUM.

 

No person other than the GP has been authorized to give any information other than that contained in this Memorandum, or to make any representations in connection with the Offering. This Memorandum contains summaries of certain agreements and other documents. While we believe these summaries are accurate, reference is made to the actual agreements and documents for more complete information about the rights, obligations and other matters in the agreements and documents. Consequently, each offeree must carefully read the documents included and described in this Memorandum before making a decision to invest in the Class B Units. All summaries are qualified in their entirety by this reference. Copies of these agreements and other documents will be made available upon request.

 

The contents of this Memorandum and any other communications from us or any of our officers, Limited Partners, employees, agents or affiliates should not be construed as legal, tax, investment or other advice. Each offeree should consult his or her own legal, tax and financial advisors to ascertain the merits and risks of the transactions described herein prior to subscribing for the Class B Units. Each prospective investor is invited to meet with our representatives and to discuss with, ask questions of and receive answers from such representatives concerning the terms and conditions of this Offering and to obtain any additional information, to the extent that such representatives possess such information or can acquire it without unreasonable effort or expense, necessary to verify the information contained herein.

 

Investors are asked to pay particular attention to “Certain Tax, ERISA & Regulatory Matters” which is a summary of certain U.S. federal income tax rules and considerations affecting investors, us and our operations and does not purport to be a complete analysis of all relevant tax rules and considerations or a complete listing of all potential tax risks inherent in purchasing, holding or disposing of Class B Units. Each prospective investor is urged to consult its tax advisor in order to understand fully the United States federal, state, local and any non-U.S. tax consequences of such an investment in its particular situation.

 

Certain of the factual statements made in this Memorandum are based upon information from various sources believed by GPB to be reliable. Neither we nor GPB has independently verified any of such information and will have no liability associated with the inaccuracy or inadequacy thereof.

 

FOR FLORIDA INVESTORS

 

THE CLASS B UNITS ARE BEING SOLD TO, AND ACQUIRED BY, THE INVESTOR IN A TRANSACTION EXEMPT UNDER §517.061(11) OF THE FLORIDA SECURITIES AND INVESTOR PROTECTION ACT. THE CLASS B UNITS HAVE NOT BEEN REGISTERED UNDER THAT ACT IN THE STATE OF FLORIDA. IN ADDITION, THE FLORIDA SECURITIES ACT PROVIDES THAT WHERE SALES ARE MADE TO 5 OR MORE FLORIDA INVESTORS, ALL FLORIDA INVESTORS SHALL HAVE THE PRIVILEGE OF VOIDING THE PURCHASE WITHIN 3 DAYS AFTER THE FIRST TENDER OF CONSIDERATION IS MADE BY SUCH PURCHASER TO A COMPANY, AN AGENT OF A COMPANY OR AN ESCROW AGENT, OR WITHIN 3 DAYS AFTER THE AVAILABILITY OF THAT PRIVILEGE IS COMMUNICATED TO SUCH PURCHASER, WHICHEVER OCCURS LATER.

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FORWARD-LOOKING STATEMENTS

 

Certain statements contained in this Memorandum, including statements containing the words “believes,” “anticipates,” “intends,” “plans,” “expects,” or words of similar import, constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Certain of these factors are discussed in more detail elsewhere in this Memorandum, including under “Summary of Key Terms,” “Risk Factors,” and “Related Parties & Conflicts of Interest.” Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to update any such factors or to announce the result of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

 

In addition, all materials or documents supplied by us, including any pro forma budgets or cash flows, should be considered speculative and are qualified in their entirety by the assumptions, information and risks disclosed in this Memorandum. The projections are based on assumptions made by GPB regarding future events. There is no assurance that actual events will correspond with these assumptions. Actual results for any period may or may not approximate projections and may differ significantly. Investors should consult with their tax and business advisors about the validity and reasonableness of any factual, accounting and tax assumptions. Due to the significant uncertainties inherent in any prediction of future events, the inclusion of such forward-looking statements should be regarded as illustrations only and should not be treated as a representation made by us as to the certainty of future results and not relied upon in making an investment decision concerning this Memorandum.

 

Neither we nor any other person or entity makes any representation or warranty as to the future profitability of an investment in Class B Units.

 

This Memorandum is part of a continuous offering process. Periodically, as we acquire subsidiaries or we have other material developments, we may, but are under no obligation to provide a supplement, or amend the Memorandum, which may add, update or change information contained in this Memorandum. Any statements that we make in this Memorandum, as supplemented, will be modified or superseded by any inconsistent or updated statement made by us in a subsequent supplement or amendment to the Memorandum.

 

This Memorandum is confidential and proprietary to us. It is provided to the recipient in confidence with the understanding that the recipient will observe and comply with the terms and conditions set forth in this paragraph and the paragraphs below. The recipient’s acceptance and retention of this Memorandum constitutes an agreement to be bound by such terms and conditions. If any of such terms are not acceptable, this Memorandum should be promptly returned to:

 

GPB Automotive Portfolio, LP

 

c/o: GPB Capital Holdings, LLC 

1581 Franklin Avenue 

Garden City, NY 11501

Telephone: (877) 489-8484

Facsimile: (516) 487-0166

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TABLE OF CONTENTS

 

	
SUMMARY OF KEY TERMS

	
1

	
SUMMARY OF GPB ACQUISITION PROGRAM

	
9

	
MANAGEMENT

	
18

	
RISK FACTORS

	
21

	
COMPANY FEES & EXPENSES

	
40

	
ALLOCATION OF PROFITS & LOSSES

	
43

	
RELATED PARTIES & CONFLICTS OF INTEREST

	
43

	
SUMMARY OF THE LPA

	
50

	
SERVICE PROVIDERS

	
54

	
CERTAIN TAX, ERISA & REGULATORY MATTERS

	
55

	
INVESTOR QUALIFICATION

	
64

	
PLAN OF PRIVATE PLACEMENT

	
65

	
RESTRICTIONS ON TRANSFER OF UNITS

	
66

	
USA PATRIOT ACT COMPLIANCE

	
67

	
ADDITIONAL INFORMATION

	
69

	
PRIVACY NOTICE

	
70

	
AVAILABILITY OF PRINCIPAL DOCUMENTS

	
70

 

EXHIBIT A: GPB AUTOMOTIVE PORTFOLIO, LP AGREEMENT OF LIMITED PARTNERSHIP 

EXHIBIT B: DISCLOSURE BROCHURE OF GPB CAPITAL HOLDINGS, LLC

EXHIBIT C: SUBSCRIPTION DOCUMENTS

EXHIBIT D: DISCLOSURE UNDER RULE 506(E) OF REGULATION D 

EXHIBIT E: PERFORMANCE METRICS

     

     

    

SUMMARY OF KEY TERMS

 

	
The following is
a summary of the terms of the Offering and a description of the Company. It is qualified in its entirety by the more detailed
information contained elsewhere in this Memorandum and by the terms and conditions of the LPA and the Subscription Agreement and
other subscription documents (as the same may be amended from time to time, the “Subscription Documents”) related
to the Offering, each of which should be read carefully by any prospective investor before investing. Prospective investors are
urged to read the entire Memorandum and to seek the advice of their own counsel, tax consultants and business advisers with respect
to investing in the Class B Units. Capitalized terms used below and not otherwise defined will have the same meaning as provided
in the LPA. If any disclosure made herein is inconsistent with any provision of the LPA or Subscription Documents, the provision
of the LPA or Subscription Documents, as the case may be, will control. References below to other sections of this Memorandum
are for convenience only and are not the only sections that should be considered with respect to the term summarized.
	 

 

	The Company 

 

	
The Company was organized as a Delaware limited partnership on July 8, 2013 to acquire and operate automotive dealerships as a private holding company.

 

	Units 

	
Under this Memorandum, we are offering Class B Units at a price of $50,000 per Unit (the “Offering Price Per Unit”).

 

	Objective 

	
We were formed primarily to (i) acquire controlling majority (and in many cases, wholly- owned) interests, whether equity, debt or otherwise, in, and to operate, income producing automobile dealerships in North America (the “Dealerships”), (ii) provide hands-on managerial and operational services to such Dealerships, and (iii) further develop such companies’ operations and increase cash flow and current income from operations. We will continue to focus on acquisitions of Dealerships with strong management, earnings and market position. We have and will continue to acquire assets of Dealerships directly, or acquire majority voting interests (which, consistent with the 1940 Act, we define as holding 50% or more of the voting interests) and / or primary control (which means control that is greater than any other interest holder, hereinafter referred to as “primary control”) interests in partnerships, limited liabilities or other entities that hold such Dealership assets. To a lesser extent, we may acquire interests in Dealerships that do not constitute either majority voting or primary control interests.

 

	 

	
We have and expect to continue to hold the interests in our Dealerships, either directly or through an affiliated holding company and that we, through GPB, will play an active role in managing and operating them. We intend to maintain a controlling position on the board of directors or as managers or by providing for other control mechanisms, such as maintaining at least equal control of the board of directors or managers, appointing one or more of the executive officers and / or having the right to approve major decisions. Our focus is on owning and operating Dealerships on a long-term basis with a goal of maximizing returns for our investors by increasing the cash flows from these operations, which we expect to increase over time. To a lesser extent, we also have and may continue to acquire debt positions in Dealerships through the issuance of loans to the entities that hold the Dealerships.

 

	 

	
While acquisitions will be made for the purpose of generating income from operations and will be held for the long-term, we may consider strategic transactions on an opportunistic basis, such as an initial public offering, a spin-off of businesses, or sale of a Dealership or a business line.

 

	 

	
There can be no assurance that we will achieve our objective or avoid substantial losses, including the loss of the investor’s entire investment. An investor should not make an investment in the Class B Units unless they can hold such Class B Units for the long- term or with the expectation of sheltering income. Investors are urged to consult with their financial advisors before investing in the Class B Units. See “Summary of GPB Acquisition Program” and “Risk Factors.”

 

	The General Partner 

	
GPB serves as our General Partner. Under the LPA, the GP, to the exclusion of our limited partners (“Limited Partners,” “LPs” or “Investors”), conducts and manages our business.

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The GP controls all major decisions concerning the Company and is responsible for reporting and monitoring distributions to Limited Partners. See ““Management.”

 

	The Special LP 

	
GPB’s principals and certain other individuals and entities (including but not limited to certain employees, officers and directors of Ascendant Capital, LLC) that have assisted and may in the future assist in our operations are and / or will be members in GPB Auto SLP, LLC, a Delaware limited liability company (the “Special LP”). As described in more detail below, the Special LP will receive a profit allocation from the Company. The identity of the members of the Special LP and their relative ownership interests in that entity may change over time to reflect additions to and withdrawals from the Special LP, as determined by the Special LP and its governance documents.

 

	 

	
As noted above, certain employees, officers and directors of Ascendant Capital, LLC (“Ascendant”), which is a branch office of and offers securities through Ascendant Alternative Strategies, LLC (“AAS”), an affiliate of GPB, are or may become members of the Special LP and, as such, may become entitled indirectly to receive profit allocations from the Company. AAS also acts as a placement agent for this Offering and is a member of the Selling Group (as defined below). Other placement agents for this offering may also be eligible to receive ownership interests in the Special LP in the discretion of the Special LP. For further discussion of the Company’s affiliation with Ascendant, please see “Related Parties & Conflicts of Interest – Ascendant.”

 

	Acquisition Committee 

	
We have an Acquisition Committee composed of up to six members who are nominated, appointed and removed by GPB. All Dealership acquisition or disposal decisions require the approval of at least 75% of the Acquisition Committee members. See “Management.”

 

	Advisory Committee 

	
We have an Advisory Committee that is composed of three members who are appointed and may be removed by the GP, but must be Independent Persons, as set forth in “Management – Advisory Committee” below. In addition, see §3.15 of the LPA.

 

	Auditor 

	
Our books of account and records, prepared on the basis of generally accepted accounting principles in the U.S. (“GAAP”), will be audited annually. Crowe Horwath LLP, a firm registered with the Public Company Accounting Oversight Board (“PCAOB”), has been engaged as our auditor. The GP retains the authority to engage and dismiss any such auditors.

 

	Administrator 

	
The GP has engaged a financial services provider selected by it in its discretion— Phoenix American Financial Services, Inc. (the “Administrator”)—to perform various administrative services for us. See “Management.”

 

	Risks 

	
In general, investment in the Class B Units involves various and substantial risks, including the risks associated with our acquisitions and operation of the Dealerships, risks for certain tax-exempt investors, risks related to the limited transferability of Class B Units, our lack of operating history, our dependence upon key personnel, conflicts of interest and certain tax risks. See “Risk Factors” and “Certain Tax, ERISA & Regulatory Matters.”

 

	Related Parties &

Conflicts of Interest 

	
GPB’s Chief
Executive Officer, Chief Financial Officer, Chief Operating Officer and Chief Compliance Officer (“C-Level Personnel”)
will never be compensated by Dealerships for serving as directors or officers of the Dealerships, except to the extent certain
C-Level Personnel (i) provide personal guarantees backstopping certain Dealership obligations, in which case these C-level Personnel
may receive compensation for such guarantees in amounts that the GP believes are fair and reasonable and / or (ii) receive compensation
or other remuneration in connection with the provision of Operations Support Services, as described in greater detail in “Company
Fees & Expenses – Partnership Expenses”. In addition, GPB, the Special LP and / or their respective affiliates,
officers, directors, employees, agents and equity-holders (each, a “Related Party”) may have potential or actual
conflicts of interest in connection with our activities and acquisitions. Related Parties may serve as officers, directors, accountants,
advisors to or managers of Dealerships or other companies (and receive fees or other compensation from such Dealerships in connection
therewith, as discussed in further detail below with respect to Operations Support Providers). Such other companies may have objectives
or may implement strategies similar to ours.

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We will not enter into any transaction in which we would acquire an asset from or sell an asset to a Person in which a Related Party has a financial interest (“Related Party Transaction”) without the approval of all of the members of the Advisory Committee, except to the extent such transaction is part of a consolidation or “roll up” of Portfolio Companies for the eventual purpose of a potential disposition of some or all such assets.

 

	
 

	
The strategies of other accounts, Holding Companies or entities sponsored or managed by GPB (“Other GPB Entities”) may overlap with one or more of our acquisition strategies. If a potential Dealership acquisition fits the acquisition objective of one or more GPB sponsored entities, the GPB Acquisition Committee will allocate opportunities in good faith and on a basis believed to be fair and equitable, and no GPB sponsored entity shall receive preferential treatment over another. In order to ensure all Dealership acquisitions are allocated fairly, the GPB Acquisition Committee will consider the GPB sponsored entity’s specific circumstances and adhere to the Allocation Policy. See “Allocation of Opportunities” below.

 

	
 

	
We will not enter
into any loan agreements with Other GPB Entities (“Inter-Company Loans”) on a going-forward basis. See “Related
Parties & Conflicts of Interest - Principal Transactions; Borrowing.”

 

	
 

	
When a Dealership (or group of Dealerships) is acquired by the Company and Other GPB Entities in connection with a joint venture, financing arrangements may carry joint and / or several obligations among the assets of such Dealerships (or among such Dealerships). In such situations, these joint and / or several obligations are generally limited to the specific assets of the Dealerships for which the financing is being utilized.

 

	
 

	
As described in
greater detail in “Company Fees & Expenses – Partnership Expenses”, from time to time, GPB may identify
companies and individuals, which include affiliates and employees of GPB, and third-party consultants and advisors, who have relevant
industry experience and employ their assistance in the operation of a particular Dealership or group of Dealerships in the same
sector. We refer to these persons as “Operations Support Providers.” Fees and expenses associated with the retention
of Operations Support Providers are generally paid and/or reimbursed by the Company but may be paid or reimbursed by the relevant
Dealership. Operations Support Providers (including those employed by or affiliated with GPB, or those who may subsequently become
associated with GPB directly) may be compensated by the Company or at the Dealership level using cash or equity or at the subsidiary
level to such person using cash or equity in such subsidiary entities we use to hold our Dealership acquisitions (“Holding
Companies”). We believe incentive compensation arrangements with the Operations Support Providers are necessary for
the success of our business and ultimately in the best interest of investors. The receipt of such compensation by an Operations
Support Provider that is an affiliate or employee of GPB will not reduce any fees otherwise payable to GPB by the Company.

 

	
 

	
In addition, an entity has been established by GPB to make unsecured loans to the Company for the benefit of third party investors. Ascendant may receive certain fees in respect of such loans, which could create a conflict of interest in that this entity would have priority in repayment of proceeds otherwise distributable to Limited Partners.

 

	
 

	
For further discussion on Related Parties and Conflicts of Interest, see “Risk Factors” and “Related Parties & Conflicts of Interest.”

 

	
Allocation of Opportunities 

 

	
GPB or its affiliates may organize Other GPB Entities that may wish to acquire interests in companies in the same target sectors we are pursuing, and the Other GPB Entities may wish to joint venture with us. If a potential Dealership acquisition fits our objective and the objective of one or more Other GPB Entities, and each have capital available to acquire interests in the Dealership, GPB will allocate the opportunity among us and Other GPB Entities consistent with its allocation policies and procedures, which take into account various factors, including but not limited to:

 

	
 

	
•  The amount of
capital each participant has available, as compared to the total amount of capital each participant anticipates raising;

 

•  The extent to
which the potential Dealership acquisition deviates from the participants’ acquisition objectives; and

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•      The
extent to which the potential acquisition would promote the participants’ sector, geographic, brand or other
diversification goals.

 

	 

	
See “Risk Factors” and “Related Parties & Conflicts of Interest.”

 

	Tax
Consequences 

	
The tax consequences to Limited Partners of an investment in the Class B Units are complex. Accordingly, each potential Limited Partner is advised to consult its own tax counsel as to the specific consequences of an investment in the Class B Units. See “Certain Tax, ERISA & Regulatory Matters.”

 

	Leverage 

	
We expect to utilize debt, or leverage, on a limited basis to help finance our acquisitions of some Dealerships. Under the LPA, we may not incur debt exceeding the lesser of (i) 50% of the aggregate amount the General Partner expects us to raise in our offering of Class B Units and other unit classes, and (ii) 50% of our gross asset value (for such purpose, excluding the borrowings of any Dealership) determined by the General Partner as of the date such indebtedness is incurred. See “Risk Factors—General Investment Risks—Leverage.”

 

	Investor Qualification 

	
Class B Units are offered in the United States to persons that are “Accredited Investors,” as defined in Regulation D (“Regulation D”) under the 1933 Act (“Accredited Investor”), purchasing for their own account or one or more accounts with respect to which they exercise sole investment discretion.

 

	 

	
An investment in the Class B Units is suitable only for persons who have adequate means of providing for their current needs and personal contingencies and have no need for liquidity in their investment. An investment in the Class B Units should not be made by any person who (i) cannot afford a complete loss of investment and (ii) has not carefully read or does not understand this Memorandum, including the portions concerning the risks and the income tax consequences of an investment in the Class B Units. The General Partner, in its sole discretion, may decline to admit any subscriber to the Class B Units for any reason. See “Investor Qualification.”

 

	The
Offering 

	
We are offering $750,000,000 of Units, which amount may be increased at the sole discretion of the General Partner.

 

	 

	
Offers and
sales of the Class B Units are made on a “best efforts” basis by broker- dealers who are members of the Financial
Industry Regulatory Authority, Inc. (“FINRA”) or their local equivalent, or recommended by investment
advisers (collectively, the “Selling Group”). AAS is a member of the Selling Group. For further discussion
of the Company’s affiliation with Ascendant, please see “Related Parties & Conflicts of Interest –
Ascendant.” Members of the Selling Group may also include investors in the Units. We may agree to indemnify certain
members of the Selling Group against certain liabilities, including liabilities under federal and state securities laws, or
to potentially contribute to payments that they may be required to make in respect of those liabilities.

 

	Fees
 & Expenses 

	
The Company will bear the following fees and expenses:

 

	 

	
Servicing Fee: The Company will pay broker-dealers, certain employees, officers and directors of Ascendant, or other affiliates of the Company an annual servicing fee equal to 0.4% of all Capital Contributions attributable to Class B Units (the “Servicing Fee”), initially payable upon an investor’s subscription for Class B Units and payable annually for so long as such investor holds an interest in such Class B Units. GPB reserves the right to pay Servicing Fees that are less than or more than the foregoing amount.

 

	 

	
Upon acceptance of a Limited Partner’s subscription, a portion of such Limited Partner’s subscription will be used to pay the Servicing Fee. The Servicing Fees are in addition to and not in lieu of the Managerial Assistance Fees, Acquisition Fees, Organizational Expenses and Partnership Expenses payable by the Company. See “Company Fees & Expenses.” The Servicing Fees are different from the fees and commissions paid by investors in the Class A Units being separately offered by the Company through different distribution channels.

 

	 

	
Managerial
Assistance Fee: GPB receives an annualized fee (the “Managerial Assistance Fee”), payable by the Company,
quarterly in advance of 2.0% per annum on the Capital Contributions (as defined below) made to the Company for providing managerial
assistance and other services to us and our Dealerships. Those services include conducting our day to day operations as described
below, along with providing reports to LPs and other duties assumed under the LPA. The Managerial Assistance Fee does not
include expenses related to In-House Services and Operations Support Services (defined below) provided to the Company or its Portfolio
Companies. Such expenses are in addition to, and not in lieu of, the Managerial Assistance Fee.

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GPB, in its sole discretion, may defer, reduce or waive all or a portion of the Managerial Assistance Fee with respect to one or more Limited Partners for any period of time (and intends to waive the Managerial Assistance Fee with respect to the Special LP and its affiliates who invest in the Company).

 

	
 

	
GPB has the right to assign all or a portion of the Managerial Assistance Fee to properly licensed third parties (where licensing is required) for services rendered by persons in connection with the offering of Units, including placement agents that are members of the Selling Group, such as AAS. Neither the Company nor GPB will be required to notify any other Limited Partner if and when GPB determines to defer, reduce or waive any Managerial Assistance Fee for a Limited Partner, nor will the Company or GPB be required to offer the same deferral, reduction or waiver to any other Limited Partner.

 

	
 

	
Acquisition
Fee. Upon the consummation of any acquisition of a Dealership, the Company pays and / or will pay qualified third parties,
including members of the Selling Group (other than persons holding an interest in the Dealership) an acquisition fee of 1.75%
of the total acquisition cost of the Dealership, not to exceed 2.75% of the purchase price of the Dealership assets acquired in
the transaction (the “Acquisition Fee”). For these purposes, “total acquisition cost” is the sum
of the debt used to acquire the Dealership (or assumed by us in making the acquisition) plus the purchase price of the Dealership
acquired in the transaction plus any working capital contributions made by us at the time of acquisition. The Acquisition Fee
will be paid in consideration of services provided in our Offering, including but not limited to identifying, structuring and
providing us with advice on our acquisitions or capital raising efforts. GPB presently anticipates the Company paying Acquisition
Fees to Ascendant Alternative Strategies, LLC, of which Ascendant is a branch office, and we may identify other third parties
for which we determine such compensation would be appropriate. GPB, in its sole discretion, may defer, reduce or waive the Acquisition
Fee with respect to one or more Limited Partners (and intends to waive the Acquisition Fee with respect to the Special LP and
its affiliates who invest in the Company).

 

	
 

	
Organizational Expenses: All costs and expenses, up to 1.25% of the gross proceeds received by (or expected to be received by) the Company from the Offering, actually incurred by the Company, the GP, its affiliates or a third party in connection with the Offering and organization of the Company, including legal, accounting, consulting and other professional fees and expenses, and all other costs and expenses (including travel and entertainment expenses relating to capital raising efforts) actually incurred by the Company, the GP or affiliates thereof (“Organizational Expenses”), will be paid or reimbursed by the Company. Any Organizational Expenses in excess of such amount will be paid by the General Partner or its affiliates.

 

	
 

	
While the GP is entitled to full reimbursement of Organizational Expenses up to the cap (which is in part based on our expected Offering size), it may defer reimbursements of a portion of Organizational Expenses in its discretion. Additionally, while the GP is entitled to reimbursements based on the expected offering size, if the Company does not raise the full amount of the expected Offering size, the GP will return any such reimbursement amount exceeding 1.25% of the gross proceeds received by the Company in the Offering.

 

	
 

	
Partnership
Expenses. The Company pays its own operating expenses as further detailed in “Company Fees & Expenses –
Partnership Expenses” and Section 3.3 and 3.5 of Article 3 of the LPA, attached hereto as Exhibit A. The General Partner
is responsible for its or its affiliates’ general and administrative costs and expenses and its day-to-day overhead expenses
of managing the Company and is not entitled to be reimbursed by the Company for such expenses other than for the portion of the
total compensation of the General Partner’s or its affiliates’ (including Holding Companies) officers and employees
relating to the time such officers or employees provide In-House Services or Operations Support Services (as defined in “Company
Fees & Expenses”) to the Company or its Dealerships. Such expenses are in addition to, and not in lieu of, the Managerial
Assistance Fee. “In-House Services” include but are not limited to accounting, legal, compliance, information
technology, HR, and operational, administrative and management services to the Company or the Dealerships. For additional information
on In-House Services and Operations Support Services, see “Related Parties & Conflicts of Interest” above
and “Company Fees & Expenses – Partnership Expenses” below.

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Plan of Distribution 

	
The GP intends for us to make periodic distributions of cash, if any, to each LP beginning on the fifteenth day of the third month following such LP’s applicable subscription for Units. Periodic distributions are currently and may in the future be paid out of available working capital, which include investor contributions.

 

	
 

	
We will apportion and make distributions of cash as it’s available (after payment of any tax distributions, see below, and payment and reservation of all amounts deemed necessary by the GP). Distributions of available cash (including periodic distributions) will be paid in the following amounts and order of priority:

 

	
 

	
(i)   first, 100% to the LPs, in proportion to their respective Net Capital Contributions (defined below), until each LP has received cumulative distributions pursuant to this clause (i) equal to such LP’s Net Capital Contribution plus the aggregate amount (if any) of any waivers of or reductions in fees that would otherwise be attributable to such LP;

 

	
 

	
(ii)  second, 100% to the LPs, in proportion to their respective Unreturned Capital Contributions, until each LP has received cumulative distributions pursuant to this clause (ii) and clause (i) equal to such LP’s aggregate Capital Contributions (an LP’s “Unreturned Capital Contribution” being the excess of (i) such LP’s aggregate Capital Contributions over (ii) all distributions to such LP pursuant to clauses (i) and (ii));

 

	
 

	
(iii) third, 100% to the LPs, in proportion to their respective Accrued Preferred Returns, until each LP has received cumulative distributions in an amount equal to the sum of such LP’s aggregate Capital Contributions and the Preferred Return (the “Preferred Return” being, for each LP, an amount equal to the cumulative sum of 8% per year multiplied by, for each such year, the average of the 12 monthly excesses for such year of such LP’s Capital Contribution(s) over distributions through each such month, and the “Accrued Preferred Return” being, for each LP, the excess of (i) the sum of such LP’s aggregate Capital Contributions plus such LP’s Preferred Return, over (ii) all distributions received by such LP);

 

	
 

	
(iv) fourth,100% to the Special LP until the cumulative distributions made to the Special LP pursuant to this clause (iv) equal 20% of the sum of all amounts distributed (i) to each LP pursuant to clauses (i), (ii) and (iii) in excess of such LP’s Net Capital Contribution (plus the aggregate amount (if any) of any waivers of or reductions in fees that would otherwise be attributable to such LP) and (i) to the Special LP pursuant to this clause (iv) (the “Catchup”); and

 

	
 

	
(v)  fifth, 80% to the LPs, in proportion to their respective aggregate Capital Contributions, and 20% to the Special LP (together with the Catchup, distributions to the Special LP being the “Performance Allocation”).

 

	
 

	
Additionally, the GP may cause the Company to advance amounts to the Special LP sufficient to cover tax liabilities of the Special LP or its members attributable to allocations of amounts under clauses (iv) and (v) above (“tax distributions”). Any such tax distributions will be treated as an advance against any future distributions that the Special LP is entitled to under clauses (iv) and (v) above.

 

	
 

	
Because of differences in the amount of Selling Fees (as defined below) attributable to LPs holding different Unit classes, there will be variances in the amounts individual LPs receive from the Company. “Selling Fees” include any sourcing, commitment, financing, transaction, investment banking, brokers’, finders’, and other similar fees payable to a selling agent for any offering or sale of Units, including the Commissions, Wholesaling Fees and the Placement and Marketing Support Fees (as defined in the LPA) respecting Class A Units and the Servicing Fee respecting Class B Units. See “Summary of the LPA.”

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All distributions to the LPs pursuant to clauses (i), (ii), (iii) or (v) above, as applicable, will reduce the Company’s amount of available capital for investment. See “Risk Factors—General Investment Risks—No Assurance of Distributions.”

 

	 

	
The LPA authorizes the General Partner to withhold and pay taxes. Each LP (and former LP) will indemnify and hold harmless the General Partner with respect to any such amounts.

 

	Capital Contributions 

	
Investors must purchase a minimum of $50,000 of Class B Units, subject to reduction or waiver at the GP’s sole discretion. The GP may, in its discretion, reject any subscription request, in whole or in part for any or no reason. All subscriptions for Class B Units are irrevocable.

 

	 

	
The Administrator
will establish and maintain on our books a capital account (“Capital Account”) for each LP into which such
Limited Partner’s capital contribution (“Capital Contribution”), net of Servicing Fees (such net amount
being referred to as the “Net Capital Contribution”) will be credited.

 

	Subscription Procedures 

 

	
To subscribe for Class B Units, a new subscriber must (i) complete, execute and deliver to the Administrator the Subscription Documents and (ii) arrange for payment of the amount of the subscription in accordance with the instructions in the Subscription Documents. Generally, existing LPs subscribing for additional Class B Units need only fill out an “Additional Contribution” form and update information in the Subscription Documents that may have changed.

 

	 

	
The GP generally requires receipt of Subscription Documents at least three business days prior to the requested Monthly Closing Date. We will hold subscription proceeds paid in connection with the Offering until the subscription is accepted or rejected by us. Subscriptions will only be accepted on the first day of the month following receipt and acceptance of the Subscription Documents and Subscription funds by the Administrator (the “Subscription Effective Date”). Subscriptions that are not accepted will be returned as promptly as practicable after the relevant requested Monthly Closing Date. Subscription funds must be credited to us at least three business days prior to the requested Monthly Closing Date in order for a subscription to be accepted (except as otherwise determined by the GP in its discretion).

 

	 

	
A subscriber admitted to the Company receives, in exchange for its initial Capital Contribution and any subsequent Capital Contribution, Class B Units representing a proportionate share of the Company at that time, based upon the Units of all LPs.

 

	Limitation of Liability; Indemnification 

  

	
The LPA limits the GP’s liability and provides for indemnification of the GP and its affiliates, as well as members of the Advisory and Acquisition Committees. We are authorized to enter into agreements, including the administration and custodian services agreements that provide for indemnification of third parties in connection with transactions with or services provided to us. See “Summary of the LPA” and the LPA.

 

	Acquisition Strategy 

	
Acquisitions will be made for the purpose of generating income from operations and will be held for the long-term. Dispositions may, however, be made on an opportunistic basis.

 

	Redemption
 & Liquidity 

	
Limited Partners do not have the right to redeem their Class B Units except in limited circumstances described below under “Summary of the LPA.” See the LPA.

 

	General Partner
                                Removal 

 

	
The GP may be removed as General Partner upon the affirmative vote of at least 20% of the LPs (who are not affiliates of the GP) if any of the following events occur: (i) a final, non-appealable judicial determination that the GP has committed fraud, gross negligence or willful misconduct which has a material impact on the Company, or (ii) (A) an action or proceeding under the United States Bankruptcy Code is filed against the GP and (I) such action or proceeding is not dismissed within 90 days after the date of its filing or (II) the GP files an answer acquiescing in or approving of such action or proceeding, (B) an action or proceeding under the United States Bankruptcy Code is filed by the GP or (C) a receiver or conservator is appointed to take control of the GP or all or a substantial portion of its property.

 

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	Compulsory Transfer or Acquisition
of Class B Units 

 

	
The LPA grants the GP the authority to require an LP to transfer his / her Units or, if the LP does not transfer its Units within 21 days, to have the Company reacquire them for the price paid by such LP without interest. The GP may exercise this power if, in its sole determination, any continued holding of Units by any direct or beneficial Limited Partner might cause or be likely to cause (i) us to be classified as a “publicly traded partnership” under the Code (a “PTP”), (ii) our assets to be considered “plan assets” within the meaning of ERISA or Code §4975 or applicable regulations, (iii) the Units to be required to be registered under the Securities Exchange Act of 1934 (the “1934 Act”), (iv) the Company to be required to be registered under the 1940 Act, or (v) some other legal, regulatory, pecuniary, tax or material administrative disadvantage to us, the GP, the Special LP or the LPs.

 

	Restrictions on Transfers; Withdrawals 

 

	
LPs may not transfer Units without the GP’s consent and unless certain other conditions are satisfied or waived. Any transfers permitted by the GP will be made only on a monthly basis. The transferability of the Units is also restricted by federal and state securities laws. See “Risk Factors.” The LPA contains customary provisions allowing for the transfer and re-registration of Units upon the death of a Limited Partner, subject to certain conditions. See “Summary of the LPA” and the LPA.

 

	Periodic Reports 

	
The GP will deliver to each LP, as soon as practicable (generally within 120 days) following the end of each Fiscal Year (i) financial statements for such Fiscal Year prepared on a GAAP basis and audited by a PCAOB-registered firm, and (ii) all necessary tax reporting information to satisfy reporting obligations under the Code with respect to any acquisitions we make in any entities organized or formed in jurisdictions outside the United States.

 

	 

	
Within 45 days after the end of each fiscal quarter, the GP will use its best efforts to deliver to each LP an unaudited summary investment report for such quarter. Once our Units are registered under the 1934 Act and we begin filing quarterly reports with the SEC, the GP may elect to substitute the 10-Qs we file with the SEC for the summary investment report. See “Summary of the LPA” and the LPA; also see “1934 Act Reporting Requirements” below.

 

	 

	
The production of the Company’s audited financial statements for fiscal year 2017 has been delayed. GPB will provide the completed audited financial statements as soon as they become available.

 

	Fiscal Periods 

	
Our fiscal year ends December 31 (“Fiscal Year”), and our fiscal quarter ends are March 31, June 30, September 30 and December 31. The GP may change such fiscal period end-dates in its reasonable discretion.

 

	Employee Benefit Plan Considerations 

 

	
We may accept contributions from tax-exempt investors, including entities subject to ERISA and / or Code §4975. We intend to continue to qualify as a “venture capital operating company,” or we may qualify for another exception under ERISA or Department of Labor (“DOL”) regulations, so that our assets will not be treated as the “plan assets” of such investors. Prospective investors and subsequent transferees of Units will be required to make certain representations regarding their status under ERISA, and to assist us in monitoring our status under ERISA. If we fail to qualify for a “plan assets” exception, our assets may be considered “plan assets” under ERISA, which could result in adverse consequences to us, GPB and the fiduciaries of benefit plan investors. See “Certain Tax, ERISA & Regulatory Matters.”

 

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SUMMARY OF GPB ACQUISITION PROGRAM

 

Introduction

 

We were formed primarily to (i) acquire controlling majority (and in many cases, wholly-owned) interests, whether equity, debt or otherwise, in, and to operate, the Dealerships, (ii) provide hands-on managerial and operational services to such Dealerships, and (iii) further develop the Dealerships’ operations and increase cash flow and current income from operations. We will continue to focus on acquisitions of Dealerships with strong management, earnings and market position. We have and will continue to acquire assets of Dealerships directly, or acquire majority voting interests (which, consistent with the 1940 Act, we define as holding 50% or more of the voting interests) and / or primary control (which means control that is greater than any other interest holder, hereinafter referred to as “primary control”) interests in partnerships, limited liabilities or other entities that hold such Dealership assets. To a lesser extent, we may acquire interests in Dealerships that do not constitute either majority voting or primary control interests.

 

Where a Dealership is held through an entity and we acquire the interests in such entity, we primarily acquire majority voting interests (which, consistent with the 1940 Act, we define as holding 50% of the voting interests) and / or primary control (which means control that is greater than any other interest holder, hereinafter referred to as “primary control”) interests in such entity (assets of a Dealership and entities that hold Dealerships are hereinafter collectively referred to as “Dealerships”). To a lesser extent, we also may acquire debt positions in Dealerships through the issuance of loans to the entities that hold the Dealerships.

 

Our objective includes providing hands-on managerial and operational services to our Dealerships, as well as, further developing the Dealerships’ operations and increasing cash flow and current income from operations. A key component of our strategy is to concentrate our acquisitions on Dealerships that will allow us to distribute the highest level of income to LPs from cash flows from operations, which we expect to increase over time. Our performance will substantially depend on our operation of our Dealerships. We intend to continue conducting our operations so that we will not meet the definition of an “investment company” and thus will not register under the 1940 Act.

 

GPB believes the current environment may provide a significant opportunity to acquire Dealerships with positive cash flow and significant profit potential at favorable valuations in the automotive retail sector. GPB expects us to use leverage sparingly. We expect to utilize debt, or leverage, on a limited basis to help finance our acquisitions of some Dealerships. Under the LPA, we may not incur debt exceeding the lesser of (i) 50% of the aggregate amount the General Partner expects us to raise in our offering of Class B Units and other unit classes and (ii) 50% of our gross asset value (for such purpose, excluding the borrowings of any Dealership) determined by GPB as of the date such indebtedness is incurred.

 

We either acquire all of the assets of a Dealership, or a controlling equity position in entities holding established Dealerships. GPB screens candidates using the following criteria:

 

	
 

	
•

	
High, Sustainable Current Cash Flow—the Dealership must have demonstrated the ability to operate profitably and pay regular monthly distributions;

	
 

	
•

	
Barriers to Entry—the Dealership should operate in an area with defined barriers to entry or have a clear, sustainable competitive advantage that makes it difficult for new entrants; and

	
 

	
•

	
Recession Resilient—the Dealership’s business plan and strategies must be viable and nimble in changing market conditions, and the Dealership must appear to have the ability to thrive in economic downturns;

	
 

	
•

	
Proven Management Teams—the Dealership’s management must have a verifiable track record of success and have highly motivated and skilled operators; and

 

GPB Acquisition Parameters

 

In addition to identifying potential acquisitions in the automotive retail sector, an industry where we believe GPB’s experience, relationships, and operational expertise create a significant advantage, a GPB acquisition will also typically meet the following parameters:

 

	
 

	
☐

	
Income producing Dealership in North America;

	
 

	
☐

	
Existing dealership, target operating history of at least five years;

	
 

	
☐

	
Target acquisition size between $5M and $75M;

	
 

	
☐

	
Target enterprise values between $10M and $150M;

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☐

	
Transaction types:

	
 

	
○

	
Growth equity / expansion capital

	
 

	
○

	
Strategic follow-on acquisitions for Dealerships

	
 

	
○

	
Restructurings, reorganizations, and refinancing

	
 

	
○

	
High growth, secured financing

 

Operations Support Providers

 

From time to time,
GPB may identify companies and individuals, which include affiliates and employees of GPB, and third-party consultants and advisors,
who have relevant automotive retail industry experience and employ their assistance in the operation of a particular Dealership
or group of Dealerships. We refer to these persons as “Operations Support Providers.” Operations Support Providers
are industry specialists who have proven track records of success in owning and operating Dealerships. Our goal is to keep existing,
proven management teams in place upon acquisition and incentivize them to keep all interests aligned with the Company.

 

Operations Support
Providers may be compensated at the Dealership level using cash or equity (“Equity Compensation”) or at the
subsidiary level to such person using cash or equity in such subsidiary entities we use to hold our Dealership acquisitions (“Holding
Companies”) and may become associated with GPB directly. For additional information on Operations Support Providers,
see “Company Fees & Expenses – Partnership Expenses” below.

 

Operations

 

After finalizing an acquisition of a Dealership, GPB typically takes on the operational oversight of the Dealership. GPB is responsible for a systematic process of operating, maintaining and upgrading assets, and ensuring that Dealerships meet projected operating milestones and maximize overall cash flow from operations. This requires regular and effective communication with the day-to-day operating personnel and management team with which GPB partners. If milestones are not being met, GPB works with the day-to-day operating personnel and management team to make course corrections as necessary.

 

Market Opportunity

 

With over 16,500
franchised new car dealers and over $1 trillion in sales, the franchised auto dealer industry is the largest retail business segment
in the U.S.1,2 Despite its size, the industry is highly fragmented with more than 90% of the dealers privately owned,
creating a large number of potential acquisition targets.3 In many cases, existing dealers will have owned an individual
or group of dealerships for many years, even decades, and have no succession plan. Thus, we may offer a viable exit strategy for
those dealers seeking a buyer.

 

The franchised auto dealer industry provides opportunities for strong and increasing cash flows from operations. From 1983-2016, dealers averaged a pretax return on equity of 25.4%, and during the economic downturn of 2008 and 2009, the average dealership return on equity was 12.3% and 18.0%, respectively.4

 

 

1 BAML Auto Dealer Manual 2017, September 26, 2017

2 NADA Data 2017: Midyear Report

3 BAML Auto Dealer Manual 2017, September 26, 2017

4
NADA Average Dealership Profile December 2016, February 2017 

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In 2017, approximately
17.1 million new vehicles were sold in the United States versus 2016’s 17.6 million, and 2015’s 17.5 million, both
record breaking years.5 As shown in the chart on the following page, the Automotive Retail sector has proven its resilience
through challenging economic times.6 We believe the industry will remain attractive for acquisition through 2018 and
beyond.

 

 

 

We believe this growth trajectory is supported by the following factors:

 

	
 

	
•

	
Pent up demand – the average age
of a vehicle is currently over 11 years old. Prior to the recession, the average vehicle age rarely surpassed 8 years. This, coupled
with a historically high number of miles driven, point to the need for replacement vehicles.7

 

	
 

	
•

	
New Models – manufacturers are bringing to market near historical highs in new product launches. This drives buyers into showrooms leading to increased sales.

 

	
 

	
☐

	
Auto loan interest rates are near all-time
lows, with the average new 48-month loan rate remaining below 5.0% since May 2012.8

 

	
 

	
•

	
Gas prices have dropped significantly—
the average annual price per gallon of regular fuel has dropped from $3.62 in 2012 to $2.42 in 2017.9

 

	
 

	
•

	
Consumer confidence is strong –
The Conference Board Consumer Confidence Index, a barometer of the health of the U.S. economy from the perspective of the consumer,
rose to a level of 121.1 in July 2017, a level not seen since July 2001.10

 

Acquisition Strategy

 

The Automotive Retail business fits precisely within GPB’s acquisition strategy of acquiring income-producing, middle-market private companies with high barriers to entry, high sustainable current cash flow, recession resilient, and proven management teams.

 

GPB’s acquisition strategy is to focus on manufacturers with a strong commitment to the U.S. market. Manufacturers will include both domestic and foreign brands while also considering geographic diversification, though we may not have access to all manufacturers with which we otherwise may wish to acquire dealerships. We will seek to target acquisitions throughout the U.S. The automotive retail portfolio of GPB-sponsored entities is located mainly in the Northeast, with a solid pipeline of dealerships in additional markets currently under screening or due diligence.

 

Market multiples and manufacturer acceptance are major considerations when making acquisitions. With this in mind, GPB will concentrate mainly on mid-line brands which we believe can generate higher returns for investors and which we believe we will have the most success in obtaining manufacturer approval.

 

 

5 CNN Money: http://money.cnn.com/2017/01/04/news/companies/car-sales-2016/

6 NADA Average Dealership Profile December 2016, February 2017; and BAML Auto Dealer Manual 2015, September 30, 2015

7 BAML Auto Dealer Manual 2016, September 29, 2016

8 Federal Reserve Bank of St. Louis: https://fred.stlouisfed.org/series/termcbauto48ns

9 U.S.
Energy Information Administration:
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMM_EPMR_PTE_NUS_DPG&f=A

10
USA Today: https://www.usatoday.com/story/money/2017/07/25/u-s-consumer-confidence-16-yearhigh/508178001/

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In addition to single dealership acquisitions, we may also acquire interests in dealership groups, either partially or through complete group acquisition. Consolidated group acquisitions allow for existing back-office consolidation and other operational efficiencies to be leveraged, saving time and resources. Acquiring a group of dealerships can also allow for a more efficient due diligence process and capital deployment, allowing more rapid scaling. There is also a regional advantage as dealership groups may be located along a single location or concentrated in an auto mall, which allows for greater visibly and recognition. This has been a historically effective way of doing business in this sector.

 

High, Sustainable Current Cash Flow

 

Automotive dealerships that are targets for acquisition into our portfolio will typically have a projected cash-on-cash yield of 15% at the Dealership level. Our strategy is to acquire only those automotive assets that GPB strongly believes can support such a yield, with potential acquisitions sourced through GPB’s Automotive Managing Partner and our Automotive Management Team, both of whom have deep and long-standing ties within the industry. Consistently bringing high-yielding automotive assets into our portfolio by leveraging relationships will be critical to meeting our acquisition and profitability goals.

 

According to the following charts from the National Automobile Dealers Association (excerpted from NADA Data 2017), average New and Used Vehicle gross profits remained strong in 2017 for U.S. auto dealerships and Service and Parts sales have steadily increased since 2010. The below charts also highlight the fact that a single auto dealership comprises multiple sources of income, including New and Used vehicle sales, Service and Parts sales, and Finance and Insurance product sales. Manufacturers also compensate the dealership with bonus incentive money for achieving certain sales volume levels, which can be a significant source of profit for a dealership.

 

 

 

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Barriers to Entry

 

Dealerships operate in an area with defined barriers to entry or have a clear, sustainable competitive advantage that makes it difficult for new entrants, including:

 

	
 

	
▪

	
state franchise laws

	
 

	
▪

	
manufacturer approval requirements

	
 

	
▪

	
high capital requirements

 

Each dealership must enter into a franchise agreement with the manufacturer which specifies the location within a designated market area at which the dealership may sell vehicles and related products and perform approved services. The designation of such areas and the allocation of new vehicles among dealerships are at the discretion of the manufacturer, and therefore serve as a key barrier to entry into a particular market.

 

State franchise laws also prohibit a manufacturer’s ability to engage in direct sales to customers and provide protection to dealers under their franchise agreements. Certain state franchise laws also restrict other dealers from relocating their dealerships, or establishing new dealerships of a particular brand, within any area that is served by another dealer with the same brand.

 

In addition to high capital requirements, another key barrier to entry in the Automotive Retail industry is the franchisee approval process. All franchisees need to possess a certain level of industry experience in order to garner manufacturer’s approval to own and operate new car dealerships. Our Automotive Management Team has significant operational experience in the industry as well as hands-on experience working in the retail environment. This vast knowledge of the business (day to day expertise) coupled with valuable relationships at both the manufacturer and dealership level, can improve our ability to gain manufacturer approval—though certainly does not assure it. Their expertise is necessary for operational success and has allowed our Automotive Management Team to build a pipeline of acquisitions and open-points (the opening of a new dealership for a given manufacturer in a location where none previously existed) from manufacturers. While we believe our Automotive Management Team’s industry experience can help us obtain manufacturer approval for acquisitions we seek, we may not necessarily be able to make all acquisitions we otherwise would want to make. See “Risk Factors—Automotive Retail Risks—Failure to Acquire Dealerships & Successfully Integrate Them Into our Business.”

 

Moreover, the automobile dealership industry remains highly fragmented, providing significant opportunity for consolidation. Currently, six public dealership groups control less than 10% of industry.

 

Recession Resilient

 

Automobile dealerships have historically proven to be consistently profitable, even during challenging economic environments. Typical dealerships are multi-faceted businesses with new and used vehicle sales, finance and insurance revenues, parts, service and collision repair sales. This level of diversification helps to support a long- term dividend paying strategy.

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Given the size of the franchised auto dealer industry, manufacturers need to maintain production at consistent and predictable levels. As a result, they must implement strategic incentives to encourage and enable dealers to maintain sales levels regardless of market conditions. These incentives allow dealers to lower the cost of sale to the consumer and thereby drive more business while maintaining a profit on the sale. These incentives may come in several forms, from overall volume bonuses, special incentives to sell particular low volume vehicles, and incentives for customer satisfaction and retention rates. While most manufacturers offer incentive programs as part of their normal business operation, incentives can become even more aggressive during an economic downturn in order to support and stabilize sales volume. The dealership franchise model is the single outlet for auto manufacturers and the best dealers can take advantage of these enhanced incentive opportunities during challenging economic conditions.

 

In addition, a single automotive dealership consists of multiple streams of income that provide insulation during an economic downturn. These income streams include new and used vehicle sales, service and parts sales (“fixed operations”), and finance and insurance product sales. Fixed operations have consistently higher profit margins that can be leveraged as consumers hold onto vehicles longer. By maintaining and increasing revenues in fixed operations, as well as increasing used vehicle sales and continuing the high profit margin finance and insurance product sales, a dealership can continue to be profitable during challenging times.

 

The chart below summarizes these diverse income sources (on an unaudited basis) derived from dealerships in which GPB’s sponsored entities have interests.

 

Proven Management Teams

 

GPB has teamed up with automotive industry specialists who have proven track records of success in owning and operating automotive dealerships. They bring their vast network of long-standing relationships to the strategy, giving GPB a distinct advantage. Through this network, we may have the ability to acquire potentially high performing dealerships with top management teams. Our goal is to keep these existing, proven management teams in place upon acquisition and incentivize them to keep all interests aligned with GPB and the Company. In addition to these strong management teams, GPB’s operational experts will serve as officers and / or directors of the Dealership, taking a hands-on approach to the management and operation of the Dealership.

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Asset Acquisition Process

 

GPB brings its unique perspective to each phase of the asset acquisition process. When GPB identifies an acquisition opportunity, GPB will evaluate it based on its individual merit and the potential to add strategic value to the Company. If GPB decides it is right for our portfolio, GPB will coordinate the acquisition, conduct due diligence, undertake financial and strategic analysis, and monitor and report on the Dealership on an ongoing basis. GPB will also provide hands-on management at the Dealership’s executive officer level. While acquisitions will be made for the purpose of generating income from operations and will be held for the long-term, we may consider strategic transactions on an opportunistic basis, such as an initial public offering, a spin-off of businesses, or sale of a Dealership.

 

GPB Private Deal Sourcing

 

Through GPB’s extensive industry advisory relationships, it has built channels for proprietary deal flow within the automotive retail industry. GPB believes that it enjoys a competitive advantage as a result of these proprietary deal flow channels. Collectively, GPB’s principals have amassed almost a century of experience. Working in the Accounting and Corporate Advisory practice of Gentile, Pismeny & Brengel LLP (“GP&B”) – which is not participating in this Offering in any manner – they have provided a variety of services to a sizable range of companies in a number of diverse industries. On average, they have maintained their relationships with these clients and their companies for over 15 years. In addition to these corporate relationships, GPB’s management team will leverage a sizable network of professionals – including lawyers, accountants, consultants, and physicians – who advise small- and medium-sized businesses.

 

During their decades of advising, consulting, and supporting their clients through personal and business successes and failures, GPB’s principals have earned the status of trusted advisor. This is important because most private company opportunities become available through a process of competitive bidding. GPB’s principals believe that by leveraging this extensive network of longstanding relationships and the principals’ unique trusted advisor status, they are able to discover opportunities not otherwise found in the marketplace. This includes direct access to seasoned executives in the automotive industry who may act as Operations Support Providers. They, in turn, have extensive relationships through which private, off-market transactions may be sourced.

 

Deal Screening

 

Once GPB has sourced a potential Dealership acquisition, the deal will move into the next phase of the GPB due diligence process: Deal Screening, in which GPB’s principals decide whether or not they will move forward with a more complete evaluation. This phase provides an assessment against GPB’s main investment criteria and generally includes:

 

	
 

	
☐

	
An initial market analysis primarily focused on market demographics, competition, and potential opportunity;

	
 

	
☐

	
An interview and validation of the Dealership management;

	
 

	
·

	
An assessment of the Dealership’s income and financial position; and

	
 

	
☐

	
A review of brand, region, and outlook to verify a fit within our strategy.

 

Initial Due Diligence: Financial Modeling

 

Once GPB identifies a potential Dealership and confirms through initial underwriting that its acquisition criteria can be met, GPB will begin an extensive due diligence process on the targeted Dealership. GPB’s due diligence process is designed to get up-close and personal with the principals of each Dealership so GPB can gather all available and relevant information about the targeted Dealership. This in-depth due diligence process allows GPB’s principals to make decisions that may have a higher probability of success.

 

Analysis of Management Team

 

GPB leverages the knowledge its principals have gained through their accounting and advisory practice to conduct due diligence during the sourcing phase. In some cases, GPB’s principals have worked with the Dealership we may seek to acquire, thus GPB’s principals have had a rare opportunity to understand the entire history of some potential Dealerships. GPB’s principals’ unique ability to track a client’s personal growth, as well as the growth of their businesses, through numerous years of preparing personal and business financial statements and income tax returns, allows GPB to perform a more thorough due diligence process than typically seen in the private company acquisition space. This process of looking beyond a Dealership’s financial statements to evaluate the integrity and growth potential of the underlying management team works best when filtered through knowledge developed via personal advisory relationships over time. GPB believes this leads to a higher quality of due diligence. Through decades of experience in the industry, GPB will endeavor to obtain from Operations Support Providers similar, up- close and personal levels of due diligence on the targeted Dealerships and work side-by-side with GPB’s executives.

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GPB will examine the quality of the management team based on certain of the following criteria:

 

	
 

	
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Track record, industry experience and the ability to take the Dealership forward;

	
 

	
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Clear and compelling vision, goals, and strategies;

	
 

	
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Past success in building and growing the Dealership;

	
 

	
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Strong leadership, problem solving, and decision-making abilities;

	
 

	
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Trustworthy management who appear to work in an open and transparent manner;

	
 

	
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Solid financial management and a capable CFO;

	
 

	
•

	
Ability to identify challenges and deal with adversity; and

	
 

	
•

	
Quality directors and advisors.

 

Deal Structure & Transaction Process

 

When setting the stage for an acquisition of a targeted Dealership, GPB will review the Dealership’s management track record and create the initial financial model, which may include:

 

	
 

	
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An add-back analysis and validation of profitability;

	
 

	
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A stress test analysis;

	
 

	
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The creation of cash-flow models for varying economic scenarios: declining, no growth, medium to high growth; and

	
 

	
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An analysis of equity vs. debt internal financing strategies.

 

Upon review of the model by the Acquisition Committee, and if the model is approved, we would then present a letter of intent to obtain the seller’s commitment to sell us the Dealership.

 

Phase I

 

Upon approval to proceed, GPB executives will conduct an intensive phase of due diligence that encompasses each aspect of the Dealership. The Dealership’s management will be interviewed to gain a complete insight on their knowledge and experience with the business. At this stage, GPB principals and executives will begin formulation of a post-acquisition improvement plan, which is done side-by-side with management and the Operating Partner. Because a key part of the GPB strategy is to keep management in place where possible, such close interaction at this phase allows GPB to assess the cultural fit for the ultimate integration within the Company.

 

Phase II

 

While the initial underwriting model includes a thorough financial analysis with multiple scenarios, GPB will further validate and analyze the Dealership’s financials. This will include review of income statements and balance sheets where GPB will conduct a current and recent cash-flow analysis, profitability and margin analysis, review expense analysis, bill payment history and an examination of credit, accounts receivable analysis, handling of long-term and short-term debt, and an internal financing debt-equity analysis. Further, an assessment of current and recent sales will be performed, along with how the Dealership manages its inventory. But beyond financial analysis, a complete operational assessment is conducted and will normally include:

 

	
 

	
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A review of the Dealership’s policies, personnel and accounting practices;

	
 

	
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Background checks on key personnel, the Dealership, and its property;

	
 

	
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Sales and customer analysis;

	
 

	
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A comparison of the Dealership’s performance against industry benchmarks;

	
 

	
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Formulation of budgets and forecasts for the Dealership;

	
 

	
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An on-site inspection; and

	
 

	
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Understanding of key performance drivers towards formulation of post-acquisition value-add plan.

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During this phase, GPB will also utilize its extensive network of outside professionals, industry experts, and consultants to be sure insight is gained and that all important aspects of the target Dealership have been considered while performing the assessment. If the due diligence proves satisfactory, GPB – and its outside legal, tax, and accounting consultants – will begin to analyze the deal terms, entity structure, and tax implications of the acquisition and develop parameters for the transaction.

 

The final aspect of Phase II Due Diligence is the development of a 100-Day Plan. This will include both operational and strategic improvements within the Dealership as well as an integration plan to smoothly become part of our structure and gain access to GPB resources and systems. Upon conclusion of Phase II Due Diligence, a final report is compiled for review by the Acquisition Committee who will vote on whether to proceed with the acquisition.

 

Deal Structuring

 

The principals of GPB average approximately two decades of asset management experience and are focused on developing institutional quality, income-generating solutions for investors. Our competitive advantage stems from a creative approach to deal structuring combined with significant access to proprietary deal flow with a focus on Automotive Retail. GPB’s access to proprietary deal flow and long-standing personal relationships with proven operating partners / management teams can be combined to create distinctive transactions.

 

In addition, GPB has a dedicated Automotive Retail team with more than 100 years combined experience in the Automotive Retail industry.

 

Capital preservation and income generation are foremost in GPB’s principals’ minds when structuring an acquisition. They are always mindful of the importance of preserving investor capital and returning it in a timely fashion, with the preferred return. That means that when GPB considers any Dealership acquisition, and when it creates a term sheet proposing the structure of a potential acquisition, it will look to identify and manage risks and endeavor to attain satisfactory income levels for us.

 

GPB places paramount importance on structuring acquisitions so that they properly align the interests of each Dealership management team with our interests, as well as its own. Aligning these interests and correctly incentivizing the Dealership’s management can go a long way toward mitigating operational risk. GPB seeks to do this in two primary ways when the Company is not going to acquire all of a Dealership’s Assets:

 

	
 

	
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The typical acquisition structure will place a priority on our ability to generate a preferred return on capital invested by our LPs. Once a Dealership’s management team achieves that objective, deal terms will typically allow them to receive meaningful upside.

	
 

	
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GPB will often require each Dealership’s management team to invest alongside GPB, either in the form of first-risk capital or by providing personal guarantees. This is done to provide downside protection.

 

When we are not acquiring all of a Dealership’s Assets or acquiring an interest in an Entity, GPB prefers structures with specific covenants so that GPB can hold the Dealership’s management accountable for achieving milestones and pro -forma projections. Typical covenants include:

 

	
 

	
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Personal guarantees from the Operating Partner;

	
 

	
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Requiring an Entity to pledge assets, collateral, or other security for the capital provided;

	
 

	
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Taking a first lien on the assets as additional collateral;

	
 

	
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Placing limitations on asset sales, which prevents the Dealership from selling assets without using net proceeds to reinvest in the business or return capital to us;

	
 

	
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Placing limitations on incurring new debt; and

	
 

	
·

	
Preventing the management of the Dealership from making loans, acquisitions, and other investments, without GPB’s approval.

 

When we are not acquiring all of a Dealership’s Assets or acquiring an interest in an Entity and where appropriate for the transaction, GPB intends to commit our capital at periodic and predetermined intervals. As those Dealerships achieve certain milestones, they may receive additional capital. If they do not achieve the required milestones, GPB will reserve the right to cease future funding, withdraw capital already invested, or take other actions to preserve our capital.

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After we make an acquisition of less than all of a Dealership’s Assets or an acquisition of an interest in an entity, we will normally have the rights to appoint a majority of the seats on the entity’s or Dealership’s Board of Directors or similar governing body. In addition, GPB will put some of its personnel or appointees in place as Executive Officers of the Dealership. Requiring one of the following provisions will provide us an additional level of control:

 

	
 

	
•

	
We will maintain financial control of the Dealership / Entity – monitoring or directly controlling all check- writing capabilities; or

	
 

	
•

	
We will have exclusive veto power on all major decisions that may affect the Dealership or Entity’s capital.

 

Create Value

 

After an acquisition is concluded, GPB executives will provide ongoing due diligence and monitoring and will endeavor to work closely with the Dealership management to:

 

	
 

	
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Solidify the relationship and see that a clear understanding of ongoing reporting requirements is established;

	
 

	
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Communicate the exact reports it will need from the Dealership, as well as the timelines for such reports; and

	
 

	
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Conduct a monthly meeting with GPB executives, operating partners, and Dealership management to review performance against budgets and forecasts and discuss progress on any existing plans or operational improvements currently underway (including the 100 Day Plan).

 

We believe this framework can isolate underperformance immediately and create an open dialogue on the matter to be sure all involved clearly understand what must be done under such circumstances. GPB will also provide in- depth analysis of the Dealership that goes beyond a financial assessment. This allows for prediction of future trends and provides an additional layer of risk mitigation.

 

Markets can move quickly, and sometimes operational and organizational improvements must be made just as swiftly. Strong lines of communication between GPB and management of the Dealership will better enable GPB to monitor operational performance and to see when Dealerships hit (or miss) milestones. GPB’s principals have traditionally maintained high levels of communication with the management of underlying investments and will continue this tradition of consistent, ongoing communication going forward.

 

In addition, the Operations Support Providers who will be overseeing each of our acquisitions have extensive expertise in automotive retail. These professionals, serving as external advisors to Dealerships, will be indispensable resources to the Dealerships, their management teams and us. Monitoring automotive retail industry, these professionals will alert GPB and the Dealership management to changes in specific legislation or general policies, procedures and/or market conditions within the automotive retail sector.

 

MANAGEMENT

 

Overview

 

We are managed by GPB Capital Holdings, LLC (the “General Partner,” “GPB” or the “GP”), a New York-based, alternative asset management firm focusing on acquiring income-producing private companies whose principals are experienced financial, management middle-market acquisition and operations firm whose principals are experienced financial, management and accounting professionals with several decades of combined private investment and acquisitions experience. GPB looks to achieve increased cash flow and profitability by acquiring and operating companies possessing strong management teams. GPB provides strategic planning and managerial insight, along with capital, enabling the businesses we own and operate to attain the next stage of development and profitability. Investing in people has served GPB’s principals well.

 

GPB

 

David Gentile, Founder and Chief Executive Officer, is responsible for the management of GPB, including the formulation of strategy, oversight of acquisition policy and leadership of the Acquisition Committee. Prior to founding GPB, Mr. Gentile spent 25 years at the Corporate Advisory and Accounting practice of Gentile, Pismeny & Brengel, LLP (“GP&B”) in New York. During his tenure there, he developed and maintained executive level relationships with many of the Firm’s 3,000+ entrepreneurial, corporate executive and high-net-worth clients. During his career at GP&B, Mr. Gentile advised, oversaw, structured or financed over $1B worth of transactions in the private and public markets. Mr. Gentile is acting Chairman and serves on the Board of Directors of AlphaServe Technologies, Qello Holdings, LLC and QT Ultrasound, LLC.

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Craig Goos, Managing Partner and Chief Operating Officer, joined GPB in April 2017 and brings over 20 years of wealth management / financial services experience to his role at GPB. Prior to joining GPB, Mr. Goos spent five years as the President & Managing Director of North Capital companies, which includes North Capital Private Securities Corp, a registered broker-dealer, North Capital Inc., a registered investment advisor, and North Capital Investment Technology. At North Capital, he was involved in the management and all functional aspects including sales, operations, regulatory and administrative activities. Prior to North Capital, Mr. Goos spent two years at UBS Wealth Management as the Managing Director of Alternative Investments where his group was responsible for approximately $13B in assets. As manager of the Alternative Investment Group, he oversaw the group’s day-to-day activities, including the development of the group’s overall strategy, the implementation of business, financial and operational controls, portfolio oversight of proprietary funds, marketing, client services, portfolio administration and the open architecture platform of third-party products utilized by financial advisors in U.S. wealth management. Prior to UBS, Mr. Goos had various roles within sales, product management and product development at Bear Stearns, Oppenheimer and Morgan Stanley Dean Witter. Mr. Goos received a Bachelor of Arts degree in General Studies from the University of Northern Iowa and served as First Lieutenant in the Army National Guard.

 

Kyle Brengel,
Interim Chief Financial Officer, is responsible for GPB’s finance, treasury management, accounting, administration,
financial statement preparation, and overall finance infrastructure. Mr. Brengel brings over 30 years of financial and public
accounting expertise to his position, most notably as a managing partner of Gentile Pismeny & Brengel LLP, a medium sized
CPA firm. Mr. Brengel has advised companies of all sizes on business problem solving, profit enhancement, organizational growth,
cash management, treasury, compliance, mergers and acquisitions, and other financial matters. Mr. Brengel received his Bachelor
of Business Administration degree from Adelphi University. Additionally, he holds a Certificate of Public Accounting from the
State of New York as well as the designation of a Chartered Global Management Accountant. He is also a member of the American
Institute of Certified Public Accountants, the New York State Society of Certified Public Accountants, and the American Institute
of Certified Forensic Examiners.11

 

Acquisition Committee

 

The Acquisition Committee is currently composed of six members appointed by GPB. GPB may increase or decrease the size of the Acquisition Committee, and nominate and remove Acquisition Committee members at its sole discretion. Acquisition Committee members serve as such under letter agreements with us under which they agree to serve on the Acquisition Committee for automatically renewing one year terms and providing that either party may terminate the relationship at any time, that they will use their best judgment when making recommendations to us, and that they will regularly attend committee meetings.

 

Authority & Responsibilities

 

The authority and responsibilities of the Acquisition Committee include:

 

	
 

	
•

	
Understanding our mission and organizational goals and how they underscore and support the objectives of the underlying Dealerships.

	
 

	
•

	
Reviewing and advising on proposed Dealership acquisitions based on the consistency, viability and fit of those proposed Dealership acquisitions with our acquisition and operational criteria.

	
 

	
•

	
Reviewing and voting on Dealership acquisitions and divestitures, which require the approval of at least 75% of the Acquisition Committee members.

 

Advisory Committee

 

We have our own Advisory Committee, which is composed of three members, who may be appointed and removed by the GP. Under the LPA, Advisory Committee members must be a person with whom the General Partner has determined has no material relationship with the Company (either directly or as a partner, shareholder or officer of an affiliate (an “Independent Person”). Moreover, a person will not be considered an Independent Person if:

 

	
 

	
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Such person is, or has been within the last three years, an employee of the Company or an immediate family member is, or has been within the last three years, an executive officer, of the Company;

	
 

	
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Such person has received, or has an immediate family member who has received, during any 12-month period within the last three years, more than $120,000 in direct compensation from the Company;

 

 

11 As of May 1, 2018, Kyle Brengel has been appointed as Interim Chief Financial Officer. Macrina Kgil, the former Chief Financial Officer, is serving as a temporary consultant and advisor to help facilitate an orderly transition of duties.

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☐

	
Such person is a current partner or employee of a firm that is the internal or external auditor of the Company, the person has an immediate family member who is a current partner of such a firm, the person has an immediate family member who is a current employee of such a firm and personally works on the audit of the Company, or the person or an immediate family member was within the last three years a partner or employee of such a firm and personally worked on the audit of the Company within that time;

	
 

	
•

	
Such person or an immediate family member of such person is, or has been within the last three years, employed as an executive officer of another company where any of the present executive officers of the Company or the GP at the same time serves or served on that company’s compensation committee; or

	
 

	
•

	
Such person is a current employee, or an immediate family member of such person is a current executive officer, of a company that has made payments to, or received payments from, the Company for property or services in an amount which, in any of the last three Fiscal Years, exceeds the greater of $1M, or 2% of such other company’s consolidated gross revenues.

The Company is in the process of identifying new candidates to serve on the Advisory Committee. As of the date hereof, there are two open Advisory Committee seats. One member resigned in the fall of 2017 and another in the spring of 2018. Neither of the resigning members had any disagreements with the Company, and no Related Party Transactions had been proposed to the Advisory Committee immediately prior to or after such resignations. 

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RISK FACTORS

 

An investment in Class B Units involves risks and uncertainties. Potential investors should carefully consider the following risk factors in conjunction with the other information contained in this Memorandum before purchasing Class B Units. The risks discussed in this Memorandum can adversely affect our operations, operating results, financial condition and prospects. This could cause the value of the Class B Units to decline and could cause you to lose part or all of your investment. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties not presently known to us or that we currently believe are immaterial may also harm our operations.

 

In addition to the risk factors listed below, prospective investors should also consider the risks described under “Certain Tax, ERISA & Regulatory Matters” and elsewhere in this Memorandum. Potential investors should review the risks of this investment with their legal and financial advisors. In addition, there will be occasions when GPB, the Special LP and their affiliates may encounter potential conflicts of interest in connection with us. As a result of these factors, as well as the risks inherent in any investment, there can be no assurance that we will meet our objectives or otherwise be able to successfully carry out our business plan.

 

General Risks

 

No Assurance of Distributions. The process of identifying, screening and successfully acquiring and operating private companies is difficult and risky. We can provide no assurances that we will be able to continue to generate operating cash flow sufficient to make distributions to LPs. Thus, there is no guarantee that we will pay any particular amount of distributions, if at all. Distributions can be paid out of any available working capital, which includes LPs invested capital in the Company. Amounts that we distribute to LPs have been and may in the future include LPs’ invested capital, and have been and may in the future not be entirely comprised of income generated by the Dealerships. Additionally, distributions to LPs will generally be treated as returns of capital, which reduce the amount of capital available to acquire and operate Dealerships and make other permitted investments. Such a reduction of available capital will also negatively impact the value of LPs’ investments in the Company, especially if a substantial portion of our distributions are paid from our LPs’ invested capital.

 

There can be no assurance that we will be able to generate sufficient returns to pay our operating expenses and make satisfactory distributions to our LPs from income generated by the Dealerships, or any distributions at all. Our results of operations and our ability to make or sustain distributions to our LPs depend on several factors, including the availability of opportunities to acquire attractive assets, the level and volatility of interest rates, the availability of adequate short- and long-term financing, the financial markets and economic conditions. Therefore, you may not receive satisfactory distributions on your Units, and may not receive any distributions at all.

 

Limited Operating History. We have limited operating results, and correspondingly limited financial statements, so investors have a limited basis upon which to evaluate our ability to achieve our business objectives or judge our prospects for success. Furthermore, our operating history and historical financial statements may not be a reliable basis for evaluating our business prospects or the value of our Units.

 

We are subject to risks and uncertainties associated with a recently formed business, including the risk that we will not achieve our business objectives. If our assumptions regarding these risks and uncertainties (which inform our business decisions) are incorrect or change, or if we do not address these risks and uncertainties successfully, our business, financial condition and results of operations could be materially and adversely affected.

 

No Assurance that Past Performance Will Be Replicated. We cannot provide any assurance that we will replicate the historical results of the Acquisition Committee, GPB, or GPB’s affiliates. Any experience was obtained under different market conditions and under a different organizational structure. Notwithstanding any prior operating experience or experience that members of the Acquisition Committee or GPB affiliates may have in acquiring and operating our Dealerships, any such prior experience was obtained under different market conditions and under a different organizational structure. We cannot provide any assurance that we will replicate the historical results of the Acquisition Committee, GPB, or GPB’s affiliates.

 

No Participation in Management. Investors will not have the opportunity to evaluate the specific merits or risks of any Dealership. Moreover, LPs will not participate in management and are dependent on GPB for management of the Company. An investor in the Class B Units must rely upon GPB’s ability to identify, structure and make acquisitions of companies consistent with our objectives and policies.

 

Expenses will be Significant. We will be obligated to pay fees, and substantial administrative, travel, accounting, tax and legal expenses and certain salaries of employees of GPB regardless of whether we realize revenues or profits. Any use of leverage will increase these fees and charges.

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Further, certain entities and persons referenced herein, including GPB, are entitled to receive the various fees described herein regardless of whether we or any of our dealerships operate at a profit. To the extent that our Dealerships are not generating sufficient revenue to pay the fees, we may have to pay these fees out of other available cash, thus further reducing the amount of cash available for distribution to us or to pay other expenses. Similarly, our dealerships may be required to pay certain fees to GPB or Related Parties and/or their respective affiliates, officers, directors, employees, agents and equity-holders for services whether or not the dealerships are operating at a profit.

 

Financial Projections Could Prove Inaccurate. In addition to analyzing the past operating results of potential investments, we generally evaluate the Dealerships we acquire and invest in on the basis of financial projections prepared by the management of such Dealerships. These projected operating results will normally be based primarily on judgments of the management of the businesses. In all cases, projections are only estimates of future results that are based upon assumptions made at the time that the projections are developed. General economic conditions, which are not predictable with accuracy, along with other factors may cause actual performance to fall short of the financial projections that were used to establish our Dealerships’ capital structure.

 

Illiquidity of Class B Units. The Class B Units are highly illiquid, have no public market and are generally not transferable except with the GP’s prior consent. Voluntary withdrawals of LPs or redemptions of Class B Units are not permitted without the GP’s consent and are otherwise subject to the terms of the LPA. Each investor will be required to represent that he/ she is acquiring the Class B Units for investment and not with a view to distribution or resale, that such investor understands the Class B Units are not freely transferable and, in any event, that such investor must bear the economic risk of investment for an indefinite period of time. The Class B Units have not been registered under the 1933 Act or applicable state “Blue Sky” securities laws, and the Class B Units cannot be sold unless they are subsequently registered or an exemption from such registration is available. Investors cannot expect to be able to liquidate their investment in case of an emergency. We may never list the Units for trading on a national securities exchange or include the Units for quotation on a national market system. The absence of an active public market for our Units could impair your ability to sell our Units at a profit or at all. Therefore, you cannot expect to be able to liquidate your investment in case of an emergency, you may not be able to sell our Units on favorable terms or at all, and our Units should be purchased as a long-term investment only.

 

Competition. We have encountered and expect to continue to encounter intense competition from other entities making similar acquisitions of businesses in the automotive retail sector, including Other GPB Entities, venture capital funds, leveraged buyout funds and operating businesses competing for acquisitions. Many of these entities are well established and have extensive experience in identifying and effecting business combinations directly or through affiliates. Many of these competitors possess greater technical, human and other resources than we do, and our financial resources could be relatively limited when contrasted with those of many of these competitors. While we believe that there are numerous potential Dealerships that we could acquire, our ability to compete in acquiring sizable target businesses will be limited by our available financial resources. This inherent competitive limitation gives others an advantage in pursuing the acquisition of certain target businesses. Thus, on occasion, we may not be able to take advantage of attractive acquisition opportunities and we cannot assure that we will identify and make acquisitions consistent with our acquisition objectives.

 

Dealership Competition Risks. We expect that our Dealerships will continue to compete with other dealerships in their respective geographic sectors. While we believe acquisitions in these areas offer the opportunity for current yield through strong cash flows that may increase over time, such acquisitions also involve a high degree of risk. Demand and market acceptance for new products and services in our industry are subject to a high degree of uncertainty. In addition, while many companies in these sectors have grown or have the potential to grow, there is no guarantee of the same in the future. Dealerships may have histories of net losses and may continue to have net losses for years after our acquisition. There can be no assurance that we will be able to make acquisitions on attractive terms or operate Dealerships profitably. To the extent we consummate acquisitions, we may be affected by numerous risks inherent in the businesses we acquire. For example, if we purchase a financially unstable business or an entity lacking an established record of sales or earnings, we will be affected by the risks inherent in the business and operations of a financially unstable or a development stage entity. Although GPB endeavors to evaluate the risks inherent in a particular target business, we cannot assure investors that GPB will properly ascertain or assess all of the significant risk factors or that we will have adequate time to complete due diligence. Furthermore, some of these risks may be outside of our control and leave us with no ability to control or reduce the chances that those risks will adversely impact a Dealership.

 

No Assurance of Confidentiality. In the normal course of business, we, along with GPB, receive and maintain highly sensitive information about our investors. Under the terms of the LPA and applicable laws, such information may be made available to other LPs, third parties that have dealings with us and/or governmental authorities (including by means of securities law-required information statements open to public inspection). There is no guarantee that we or GPB will be able to maintain confidentiality of highly sensitive information in accordance with applicable law.

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There is a risk that such information could be improperly disclosed to a third party. Although we and GPB will endeavor to take all reasonable steps under the law and within our and its obligations described herein to maintain confidentiality and disclose highly sensitive information in accordance with the law, there is no guarantee that we or GPB will be able to do so. Investors that are highly sensitive to such issues should consider taking steps to mitigate the impact upon them of such disclosures (such as by investing in us through an intermediary entity).

 

Litigation Risks. We and our Dealerships are involved, and will continue to be involved, in legal proceedings arising out of the conduct of our business, including litigation with customers, wage, hour and other employment-related lawsuits, and actions brought by governmental authorities. Some of these lawsuits purport or may be determined to be class or collective actions and seek substantial damages or injunctive relief, or both, and some may remain unresolved for several years. The results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on our business, financial condition, or results of operations.

 

Under most circumstances, we will indemnify the GP and its principals and representatives for any costs they may incur in connection with such disputes. The officers, directors and representatives of our Dealerships (including our personnel or persons affiliated with GPB) may be similarly indemnified by such Dealerships. Beyond direct costs, such disputes may distract GPB and / or the officers, directors and representatives of our Dealerships. Such disputes could also harm relationships between such Dealerships as well as active or potential investors, other potential sources of capital, and other entities important to the success of the Dealerships. In connection with the disposition of a Dealership, we may be required to make representations about the business and financial affairs of the Dealership typical of those made in connection with the sale of any business, and may be responsible for the content of disclosure documents under applicable securities laws. These arrangements may result in contingent liabilities, for which we may establish reserves and escrows. In that regard, distributions may be delayed or withheld until such reserve is no longer needed or the escrow period expires. Such liabilities might ultimately have to be funded by Limited Partners to the extent that the investors have received prior cash distributions from us. GPB and certain related parties are currently involved in an action with a former operating partner for claims and counterclaims arising out of such person’s former employment with GPB and such related parties. See “Additional Information.”

 

Limited Access to Information. Although GPB generally provides access to material and substantive information concerning us, the rights of LPs to information regarding us and our Dealerships will be limited—even if the Units are registered under the 1934 Act and we publicly report thereunder. In particular, GPB will likely obtain certain types of material information that will not be disclosed to LPs. For example, GPB may obtain information regarding the Dealerships that is material to determining the value of such assets. Such information may be withheld from LPs in order to comply with duties or otherwise to protect the interests of other parties or us.

 

Decisions by GPB to withhold information may have adverse consequences for LPs in a variety of circumstances. For example, a Limited Partner that seeks to sell his / her Class B Units may have difficulty in determining an appropriate price for such Class B Units. Even though the Company has been structured to align the interests of GPB and LPs, decisions to withhold information may also make it difficult for LPs to subject GPB to rigorous oversight.

 

Exculpation & Indemnification. The LPA contains provisions that relieve the GP and its affiliates and employees and other related persons, members of the Acquisition Committee and Advisory Committee (collectively, the “Indemnified Persons”) of liability for certain improper acts or omissions. For example, the Indemnified Persons will not be liable to the Limited Partners or us for acts or omissions that constitute ordinary negligence. Under certain circumstances, we may indemnify the Indemnified Persons against liability to third parties resulting from such improper acts or omissions.

 

Furthermore, the GP is structured as a limited liability company, and the owners of the GP generally will not be personally liable for such entity’s debts and obligations. As a result, LPs will have no recourse to the personal assets of the owners of the GP even if such entity breaches a duty to the Limited Partners or us.

 

Legal Counsel. Our legal counsel represents our interests and will not represent the interests of any LP. Documents relating to the Company, including the Subscription Documents to be completed by each investor, as well as the LPA, are detailed and often technical in nature. Accordingly, each Investor is urged to consult with its own legal counsel before investing in the Company. Our legal counsel also represents GPB and various affiliates. The interests of GPB and its affiliates may become adverse to ours in the future. Under legal ethics rules, our legal counsel may be precluded from representing us due to any conflict of interest between us and GPB and its affiliates.

 

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Valuation Risk. Under the Offering, LPs will be joining the Company up until June 30, 2018. The Units will be sold at the same Offering Price Per Unit (i.e. $50,000) throughout the Offering, regardless of any changes in the net asset value of the Company or the Redemption Price Per Unit. The amounts to be paid by LPs admitted to the Company after the initial date upon which LPs were admitted to the Company (the “Initial Closing”) will be the Offering Price Per Unit and may not be equivalent to the returns of the Company over the period from the Initial Closing to their admission. There will be no separate net or other asset valuation of the Company’s assets at the time of any such admission of LPs for the purposes of evaluating the amount to be paid by any such LP at such admission. Therefore, the Offering Price Per Unit may be higher or lower than the price per Unit would be if such price were derived from the net asset value of the Company at the time an LP is admitted to the Company. Because the Offering Price Per Unit will remain constant throughout the Offering, Units may be diluted as additional Units are issued at the Offering Price Per Unit if the Company’s net asset value increases after the date an LP is admitted to the Company. Furthermore, early LPs may experience greater dilution than LPs admitted later in the Offering should the Company’s net asset value appreciate after the LP’s admission and during the Offering Period. Any such adjustment to the Redemption Price Per Unit (as defined in “Summary of the LPA – Limited Redemption Rights”) will not modify the Offering Price Per Unit. There can be no assurance that the amount of proceeds received by an LP in connection with a transfer, redemption or sale will equal the Offering Price Per Unit, and an investment in the Company entails a risk of complete loss.

 

Side Letters. Subject to the terms of the LPA, the Company may enter into agreements (“side letters”) with certain prospective or existing LPs whereby such LPs may be subject to terms and conditions (whether economic, procedural or otherwise) that are more advantageous or otherwise different than those set forth in this Memorandum. For example (and without limitation), such agreements may provide for waiver of minimum Capital Commitments (if any), special rights to additional information about the Company (including portfolio information), redemption rights, modification of the Managerial Assistance Fee, Selling Fee, Acquisition Fee, Organizational Expenses, or other expenses borne by such LPs, priority co-investment participation rights, consent rights with respect to certain amendments to documents that govern such LPs’ rights and obligations and those of the Company, the right to transfer Units, the ability to invest in different classes or sub-classes of Units, the right to disclose certain information to underlying investors or to the public, structuring rights with respect to certain types of investments, indemnification and other obligations under the LPA, and reduced or rebated Partnership Expenses. Such modifications are made solely at our discretion of the GP and may, among other things, be based on a LP’s actual or anticipated level of involvement in the GP’s investment and other activities, the size of a LP’s commitment in the Company. Such arrangements will generally not be disclosed to some or all other LP unless otherwise determined by the GP. The other LPs will have no recourse against the Company, the GP or their respective affiliates in the event that certain LPs receive additional or different rights or terms pursuant to such side letters. In addition, the Company may issue an unlimited number of Units and classes of Units without notice to any Limited Partner, as the General Partner may from time-to-time create and issue, with such rights, designations and obligations as the General Partner may specify.

 

General Investment Risks

 

General Acquisition Risks. Our success depends on GPB’s ability to implement its acquisition and operational management strategy for us. We cannot be certain GPB will effectively implement its strategies. Any factor that would make it more difficult to execute timely acquisitions, such as a significant reduction of liquidity in a particular market, or any factor that negatively affects the operational profitability of our Dealerships, may also be detrimental to profitability. No assurance can be given that our strategies will be successful under all or any market conditions. The LPs must rely upon GPB’s ability to identify, structure and make acquisitions of dealerships consistent with our objectives and policies. LPs will not have the opportunity to evaluate the specific merits or risks of any dealerships, and we cannot assure that GPB’s strategies will be successful under all or any market conditions. Moreover, LPs will not participate in management and are dependent on GPB for our management. LPs must also rely on GPB’s ability to identify, structure and make acquisitions of dealerships consistent with our objectives and policies. If GPB is unable to uncover all material information about the businesses in which we acquire, it may not make a fully informed acquisition decision, and we may lose some or all of our capital on such acquisitions. Except as provided in the LPA, GPB will have the exclusive right and power to manage our business and affairs. GPB has broad discretion to expand, revise or contract our business strategy without the consent of our LPs. Our acquisition strategies may be altered, without prior approval by, or notice to, our LPs if GPB determines that such change is in our best interest.

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Risks Associated with Dealerships. There is no assurance that the Company or any Dealerships will be profitable and there is a substantial risk that our losses and expenses will exceed our income and gains. Any return on investment to the LPs will depend upon successful acquisitions we make and our ability to generate cash flows from the operations of the Dealerships we acquire. There generally will be little or no publicly available information regarding the status and prospects of the Dealerships. Many acquisition decisions by GPB will be dependent upon its ability to obtain relevant information, and GPB often will be required to make decisions without complete information or in reliance upon information provided by third parties that is impossible or impracticable to verify. The value of each acquisition will depend upon many factors beyond our control. Dealerships may have substantial variations in results from period to period; face intense competition, and experience failures or substantial declines in value at any stage. Dealerships may need substantial additional equity or debt capital to support growth or to achieve or maintain a competitive position. Such capital may not be available on attractive terms, or may not be available at all. Our capital is limited and may not be adequate to protect us from dilution in multiple rounds of financing in connection with our acquisitions and operation of Dealerships.

 

Failure of a Dealership. Dealerships may fail, which would negatively affect our investment return. We will continue to focus our acquisitions in the automotive retail industry, specifically assets of and interests in income producing automobile dealerships in North America, and it is possible that the automotive retail sector could suffer more so in the states in which our Dealerships operate. There are no legal requirements as to concentration or diversification imposed on us with respect to the allocation of assets among different sectors, such as are imposed on registered investment companies. No assurance can be given that the failure of one or more Dealership will not have a material adverse effect on us.

 

Lack of Publicly Available Information Regarding Acquisitions. The interests in the Dealerships will not be offered under registration statements under the 1933 Act. In addition, Dealerships will not be subject to the periodic information and reporting provisions of the 1934 Act. Accordingly, publicly-available information about Dealerships may be limited. We will be required to rely on the ability of GPB to obtain adequate information to evaluate the potential operational returns from acquiring these companies. If GPB is unable to uncover all material information about Dealerships, it may not make a fully informed acquisition decision, and we may lose some or all of our capital on such acquisitions.

 

Risks Related to Acquiring and Operating Portfolio Companies. We have and expect to continue to acquire and operate companies with smaller market capitalizations. Acquisitions of small- and medium-capitalization companies involve significantly greater risks than acquisitions of larger, better-known companies. There is ordinarily a more limited marketplace for the purchase of interests in smaller, private companies, which may make it difficult to source acquisitions. In addition, the relative illiquidity of interests in privately-held companies generally, and the somewhat greater illiquidity of interests in small- and medium-sized privately-held companies, could make it difficult for us to react to negative economic or political developments. Any sale of one of our Dealerships or our interests therein could take a significant period of time to sell due to market conditions, availability of financing, lack of demand, and other conditions. Because there will be no readily available market for our Dealerships, those acquisitions cannot be sold quickly and will be difficult to value. Determination of fair values for such companies involves judgments that are not susceptible to substantiation by auditing procedures. Values assigned to our Dealerships may not accurately reflect values that may be actually realized if we seek to dispose of them. Accordingly, Investors should expect to hold their investments in us for the long-term and realize their returns from cash flows from our operations.

 

Illiquid Holdings & Difficulty of Valuation. We acquire private companies for which no (or only a limited) liquid market exists or that are subject to legal or other restrictions on transfer. While the majority of our Dealerships are acquired and operated for the purpose of generating income from operations and will be held indefinitely, we may consider strategic transactions on an opportunistic basis, such as an initial public offering, spin-off of businesses, or sale of one of our Dealerships or group of Dealerships. Even if we were required to sell one of our Dealerships or group of Dealerships, we could be unable to sell assets or to realize what we perceive to be their fair value in the event of a sale. Because there will be no readily available market for our Dealerships, such Dealerships cannot be sold quickly and will be difficult to value. Our determinations of fair value may differ materially from the values that would have been used if a ready market for these Dealerships existed. Our net asset value would be adversely affected if our determinations regarding the fair value of our Dealerships were materially higher than the values that we ultimately realize upon the disposal of such Dealerships.

 

Risk Inherent In Dealership Acquisitions. Acquisitions of private companies involve a high degree of risk, including that private companies:

 

	
 

	
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may have limited financial resources and may require substantial amounts of financing that may not be available;

 

	
 

	
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typically have smaller market shares than larger businesses, which tend to render them more vulnerable to competitors’ actions and market conditions, as well as general economic downturns;

 

	
 

	
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are more likely to depend on the management talents and efforts of a small group of persons; therefore, the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on a Dealership and, in turn, on us;

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generally have less predictable operating results, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position;

 

	
 

	
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may be particularly susceptible to economic slowdowns or recessions and may be unable to repay their loans or meet other obligations during these periods; and

 

	
 

	
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often experience unexpected problems in the areas of marketing, financing, and general management, which, in some cases, cannot be adequately solved.

 

There can be no assurance of the success of such enterprises.

 

Follow-on Funding Requirements. Following our initial acquisition of a Dealership, we may be required to make additional capital contributions to the Dealership. Such additional contributions may be necessary to protect our interest in Dealerships that require additional financing to carry out their business plans. There is no assurance that we will make such additional contributions or that we will have the ability to do so. The failure to make additional contributions may impact our ability to realize a meaningful return and may impact the recovery of our contribution.

 

Financing for Acquisitions. We cannot ascertain the capital requirements for all of our potential acquisitions. To the extent that financing proves to be unavailable or unavailable on favorable terms when needed to consummate a particular acquisition, we would be compelled to either restructure the transaction or abandon that particular acquisition and seek an alternative target business candidate. In addition, if we consummate an acquisition, we may require additional financing to fund the operations or growth of the target business. Such financing may not be available on acceptable terms, if at all. The failure to secure financing could have a material adverse effect on the continued development or growth of the Dealerships. GPB and its affiliates, other than us, are not required to provide any financing in connection with or after an acquisition. If a Dealership is unable to generate sufficient cash flow to meet its obligations, including any debt service obligations for financing, the Dealership may default under its loan obligations, be required to sell assets, obtain additional financing, or alternatively, liquidate, which could have a material adverse effect on our business, financial condition, results of operations and ability to pay distributions. If we guarantee any such indebtedness, we could be required to sell assets or obtain additional financing to repay any guaranteed amounts, which could have a material adverse effect on our business, financial condition, results of operations, and ability to pay distributions.

 

1934 Act Reporting Requirements. A class of Units was beneficially owned by 2,000 or more persons for purposes of the 1934 Act as of December 31, 2017, and thus the Units are required to be registered under the 1934 Act and will be subject to the information and reporting requirements of the 1934 Act. Once the Units are registered, the reporting obligations under the 1934 Act will entail significant administrative burdens, including legal and accounting costs that could negatively impact our operations and returns to Limited Partners. While Limited Partners will be provided more comprehensive publicly reported financial and other information about us once we are registered under the 1934 Act, such registration may divert cash and managerial resources from our operations and may therefore reduce our returns to Limited Partners.

 

The delay in production of audited financial statements for the Company has delayed GPB’s registration of the Units under the 1934 Act. We intend to register under the 1934 Act as soon as possible.

 

Regulation Under the 1940 Act. In general, a company that is or holds itself out as being engaged primarily in the business of investing, reinvesting or trading in securities may be deemed to be an investment company under the 1940 Act. The 1940 Act contains substantive legal requirements that regulate the manner in which investment companies are permitted to conduct their business activities. We have not been, do not intend to be, and do not expect to be required to be registered as an investment company under the 1940 Act, and therefore we will not be subject to the provisions of the 1940 Act designed to protect investment company shareholders. As such, our unitholders will not receive the protections afforded by the 1940 Act to unitholders in a registered investment company.

 

Our intention to not operate as an investment company limits our operations in certain ways. For example, since we are not an investment company, we may determine to not acquire or dispose of an asset that we would acquire or dispose of if we were an investment company, or we may make an acquisition or disposition at a different time, under different circumstances, or in a different manner than would an investment company. If a court, the SEC, or its staff provides additional precedent or guidance bearing upon our activities such that we could be required to register as an investment company, we may be required to adjust our business strategy accordingly so as to avoid any such requirement. Any such adjustments could limit our ability to pursue our business strategy, and could therefore materially and adversely affect our business, financial condition and results of operations. Any additional legal precedent, including guidance from the SEC or its staff, could inhibit our ability to pursue the business strategies we have chosen.

 

New regulatory or other developments could subject us to regulation as an investment company and could require us to restructure our business operations, sell certain of our assets or abstain from the purchase of certain assets.

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Registration under the 1940 Act would require us to comply with a variety of substantive requirements that impose, among other things, burdensome compliance obligations, limitations on capital structure, restrictions on specified investments, restrictions on borrowings and other leverage and prohibitions on transactions with affiliates.

 

If the SEC or a court of competent jurisdiction were to conclude that we are required to register as an investment company, possible consequences include, but are not limited to the following: (i) we could be found in violation of the requirement to register as an investment company under the 1940 Act; (ii) the SEC could apply to a U.S. district court to enjoin the violation; (iii) we could be subject to lawsuits to recover any damages caused by the violation; and (iv) any contract to which we are a party that is made in violation of the 1940 Act could be unenforceable by any party to the contract. Should we be subjected to any or all of the foregoing, our business, financial condition and results of operations would be materially and adversely affected.

 

If we were deemed to be an investment company in the future, we would, among other things, effectively be precluded from making public offerings of our securities in the United States. This could impede our ability to raise additional capital or to implement our business plan.

 

Regulation Under the Patriot Act. The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (“Patriot Act”) provides, among other things, safeguards against laundering money in the United States. Title III of the Patriot Act, referred to as the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001 (“IMLA”), imposes obligations on financial service entities, including companies like us under anti-money laundering (“AML”) provisions. The Treasury Department adopted rules under the Patriot Act implementing the AML provisions. Many entities are required, under the Treasury rules, to implement procedures designed to detect and report suspicious activities that identify potential illegal activity. If we are required to comply with the AML provisions, we would be required to implement procedures and make reports when necessary. Penalties for not implementing and maintaining effective AML compliance programs could result in prosecution, regulatory enforcement action and adverse publicity for both us and GPB.

 

Other Regulatory Burdens. We and our Dealerships are subject to laws and regulations enacted by national, regional and local governments. Compliance with, and monitoring of, applicable laws and regulations may be difficult, time consuming and costly. Those laws and regulations and their interpretation and application may also change from time to time and those changes could have a material adverse effect on our business, acquisitions and results of operations. In addition, a failure to comply with applicable laws or regulations, as interpreted and applied, could have a material adverse effect on our business and results of operations. In addition, we expect that the Patient Protection and Affordable Care Act (the “Affordable Care Act”) will increase any annual employee health care costs that we or our Dealerships fund, and significantly increase the cost of compliance and compliance risk related to offering health care benefits.

 

In addition, if certain aspects of the Affordable Care Act are amended, repealed or successfully challenged, employee health care costs, for us and the entities in which we acquire, as applicable, will be impacted and potentially increase the compliance cost related to offering health care benefits and any risk associated with lack of compliance.

 

Systems Risks. We depend on GPB to develop and implement appropriate systems for our activities. The ability of our systems to accommodate increasing volume could also constrain our ability to manage our portfolio. In addition, certain of GPB’s operations may interface with or depend on systems operated by third parties, and there may be inadequate means to verify the risks or reliability of such third-party systems. These programs or systems may be subject to certain defects, failures or interruptions, including those caused by worms, viruses and power failures. Any such defect or failure could have a material adverse effect on us. Although GPB endeavors to provide sufficient redundancy and back-up for material information related to us, GPB is not liable to us for losses caused by systems failures.

 

Inadequate Capital. We need substantial capital in order to acquire dealerships. We currently finance acquisitions by using proceeds from sales of our Units and borrowings for real property purchases, blue sky financing and working capital. The cost of obtaining money from the credit markets and debt capital markets is subject to change, including through tightening standards or higher interest rates. Accordingly, our ability to make acquisitions could be adversely affected if our access to capital is limited.

 

We intend to continue to acquire Dealerships that we will operate and hold for the long-term. Operating cash flow, if any, generated from our acquisitions may not be sufficient to cover operating expenses. If for any reason our available cash from operations are insufficient to fund our expenses and the expenses of our Dealerships, we or such Dealerships may seek, and in some cases have previously obtained, additional debt financing, which would or do, as applicable, accrue interest and would be payable prior to any distributions to equity holders. Such sources or other sources of funding may not be available or may not be available under terms that are acceptable. Any additional financing by us could ultimately dilute your interest in us.

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Adverse capital and credit market conditions could affect our ability to meet liquidity needs, as well as our access to capital and cost of capital. The capital and credit markets have experienced extreme volatility and disruption from time to time. Instability or disruptions of the capital and credit markets and deterioration of our financial condition, alone or in combination, could prohibit or restrict us from accessing external sources of short- and long-term debt financing and/or significantly increase the associated costs. In addition, an increase in interest rates would make it more expensive to use debt for our financing needs, if any. If we are unable to obtain financing favorable to us, our acquisition strategy, business, financial condition and results of operations could be materially and adversely affected.

 

Changes in Environment. Our acquisition program is intended to extend over an indefinite period of time during which the business, economic, political, regulatory, and technology environment within which we will operate Dealerships may undergo substantial changes, some of which may be adverse to us. GPB, on our behalf, will have the exclusive right and authority to determine the manner in which we respond to such changes, and LPs generally will have no right to withdraw from the Company or to demand specific modifications to our operations in consequence thereof.

 

Leverage. Our acquisitions, directly or indirectly, may be leveraged acquisitions. Utilization of leverage is a speculative technique and involves risks to Investors. While leverage may enhance total returns to Investors, if operating cash flows fail to cover borrowing costs, then returns to the LPs will be lower than if there had been no borrowings. To the extent we utilize leverage in an acquisition, the acquisition will be subject to increased exposure to adverse economic factors such as a significant rise in interest rates, a severe downturn in the economy or deterioration in the conditions of such acquisition. In the event of our dissolution, our lenders and holders of our debt securities would receive a distribution of our available assets before distributions to Unit holders. Any new units of limited partnership interest may have a preference over the Units with respect to distributions and upon dissolution, which could further limit our ability to make distributions to Investors. Because our decision to incur debt and issue securities, including Units, in any future offerings will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings or our future debt and equity financings. Further, market conditions could require us to accept less favorable terms for the issuance of our units in the future, including issuing limited partnership interests at a discount to market value. Accordingly, Investors will bear the risk of future offerings reducing the value of their Units, diluting their interest in us.

 

Certain of our debt agreements contain covenants that limit the discretion of our management with respect to various business matters. These covenants place restrictions on, among other things, our ability to incur additional indebtedness, to create liens or other encumbrances, and to sell or otherwise dispose of assets and to merge or consolidate with other entities. A failure by us to comply with the obligations contained in any of our debt agreements could result in an event of default, which could permit acceleration of the related debt as well as acceleration of debt under other debt agreements that contain cross-acceleration or cross-default provisions. If any of our debt is accelerated, our liquid assets may not be sufficient to repay in full such indebtedness and our other indebtedness. Additionally, we have granted certain manufacturers the right to acquire our Dealerships franchised by those manufacturers in specified circumstances. Under some of our debt agreements, we are required to remain in compliance with a covenants like a maximum leverage ratio and/or may be subject to cash flow recapture in the event we do not meet the required threshold on the leverage ratio.

 

If our earnings decline, we may be unable to comply with the financial ratios required by certain of our credit agreements. In such case, we would seek an amendment or waiver of our credit agreements or consider other options. There can be no assurance that our lenders would agree to an amendment or waiver of our credit agreement. In the event we obtain an amendment or waiver of our credit agreement, we would likely incur additional fees and higher interest expense.

 

Our substantial indebtedness could have important consequences. For example:

 

	
 

	
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We may have difficulty satisfying our debt service obligations and, if we fail to comply with these requirements, an event of default could result;

 

	
 

	
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We may be required to dedicate a substantial portion of our cash flow from operations to make required payments on indebtedness, thereby reducing the availability of cash flow for working capital, capital expenditures, acquisitions, and other general corporate activities;

 

	
 

	
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Covenants relating to our indebtedness may limit our ability to obtain financing for working capital, capital expenditures, acquisitions, and other general corporate activities;

 

	
 

	
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Covenants relating to our indebtedness may limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;

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We may be more vulnerable to the impact of economic downturns and adverse developments in our business;

 

	
 

	
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We may be placed at a competitive disadvantage against any less leveraged competitors; and

 

	
 

	
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Our variable interest rate debt will fluctuate with changing market conditions and, accordingly, our interest expense will increase if interest rates rise.

 

The occurrence of any one of these events could have a material adverse effect on our business, financial condition, results of operations, prospects, and ability to satisfy our debt service obligations.

 

Undisclosed Strategy. Our acquisition and operational strategies and techniques employed to attempt to reach our goals are proprietary and may not be fully disclosed to potential Investors (or to LPs). As a result, a potential Investor’s decision to invest in us must be made without the benefit of reviewing and analyzing our strategies and techniques in their entirety.

 

Preference of Certain Fees Regardless of Profitability. Certain entities and persons referenced herein, including GPB, are entitled to receive the various fees described herein regardless of whether we or any of our Dealerships, operate at a profit. To the extent that our Dealerships are not generating sufficient revenue to pay the fees, we may have to pay these fees out of other available cash, thus further reducing the amount of cash available for distribution to the LPs or to pay other expenses. Similarly, Dealerships may be required to pay certain fees to GPB or Related Parties for services outlined in this Memorandum whether or not the Dealerships are operating at a profit.

 

Risks of Senior Debt. We make senior secured loans to private North American companies, including middle- market companies. There is a risk that any collateral pledged by Dealerships in which we have taken a security interest may decrease in value over time or lose its entire value, may be difficult to sell in a timely manner, may be difficult to appraise and may fluctuate in value based upon the success of the business and market conditions, including as a result of the inability of the Dealership to raise additional capital. To the extent our debt is collateralized by the securities of a Dealership’s subsidiaries, such securities may lose some or all of their value in the event of a bankruptcy or insolvency. Also, in some circumstances, our security interest may be contractually or structurally subordinated to claims of other creditors. In addition, deterioration in a Dealership’s financial condition and prospects, including its inability to raise additional capital, may be accompanied by deterioration in the value of the collateral for the debt. Under-collateralized secured debt involves a greater risk of loss. The security backing the debt does not guarantee that we will receive principal and interest payments according to the debt’s terms, or at all, or that we will collect on the debt should we be forced to enforce our remedies.

 

Other Senior Debt of Dealerships. Our Dealerships may have, or may be permitted to incur, other debt that ranks equally with, or senior to, the debt in which we invest. By their terms, such debt instruments may entitle the holders to receive payment of interest or principal on or before the dates on which we are entitled to receive payments with respect to the debt instruments in which we invest. Also, in the event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a Dealership, holders of debt instruments ranking senior to our debt positions in that Dealership would typically be entitled to receive payment in full before we receive any proceeds. After repaying such senior creditors, such Dealership may not have any remaining assets to use for repaying its obligation to us. In the case of debt ranking equally with debt instruments in which we invest, we would have to share on an equal basis any distributions with other creditors holding such debt in the event of an insolvency, liquidation, dissolution, reorganization or bankruptcy of the relevant Dealership.

 

Debt Assets Subordinated to Claims of Other Creditors or Lender Liability Claims. If one of our Dealerships were to go bankrupt, depending on the facts and circumstances, including the extent to which we provided managerial assistance to that Dealership, a bankruptcy court might recharacterize our debt assets and subordinate all or a portion of our claim to that of other creditors. In situations where a bankruptcy carries a high degree of political significance, our legal rights may be subordinated to other creditors. We may also be subject to lender liability claims for actions taken by us with respect to a borrower’s business or in instances where we exercise control over the borrower or render significant managerial assistance.

 

Control of Dealerships. While we have acquired, and intend to continue to acquire assets of or majority in and / or primary control interests in Dealerships, we may not have control to act on all matters without the consent of other investors in these companies. We also may not control our Dealerships for which we act as lender, even though we may have board representation or board observation rights, and our debt agreements with such Dealerships may contain certain restrictive covenants. As a result, we are subject to the risk that the management of a Dealership we acquire may make business decisions with which we disagree and the management of such company, as representatives of the holders of their common equity, may take risks or otherwise act in ways that do not serve our interests as investors. Due to the lack of liquidity, we may not be able to dispose of our interests in our Dealerships as readily as we would like or at an appropriate valuation. As a result, management of a Dealership may make decisions that could decrease the value of our portfolio holdings, which could materially and adversely affect our business, financial condition, and results of operations.

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Risks Associated with Changes in Interest Rates. In connection with our debt investments, we will be subject to financial market risks, including changes in interest rates. General interest rate fluctuations may have a substantial negative impact on our debt investments and lending opportunities and, accordingly, have a material adverse effect on our objectives and the return realized by our LPs. In addition, an increase in interest rates would make it more expensive to use debt for our financing needs, if any.

 

Interest rates have recently been at or near historic lows. In the event of a rising interest rate environment, payments under floating rate debt instruments generally would rise and there may be a significant number of issuers of such floating rate debt instruments that would be unable or unwilling to pay such increased interest costs and may otherwise be unable to repay their loans. Debt investments with a floating rate may also decline in value in response to rising interest rates if the interest rates of such debt investments do not rise as much, or as quickly, as market interest rates in general. Similarly, during periods of rising interest rates, fixed rate debt investments may decline in value because the fixed rates of interest paid thereunder may be below market interest rates.

 

Future Economic Recessions or Downturns. Many of our Dealerships may be susceptible to economic slowdowns or recessions (such as the economic downturn that occurred from 2008 through 2009) and therefore we or the Dealerships may be unable to repay our debt during these periods. As a result, our non-performing assets would be likely to increase, and the value of our portfolio is likely to decrease, during these periods. Adverse economic conditions may also decrease the value of any collateral securing our debt investments. A prolonged recession may further decrease the value of such collateral and result in losses of value in our portfolio and a decrease in our revenues, net income and asset value. Unfavorable economic conditions also could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us on terms we deem acceptable. These events could prevent us from increasing the number of acquisitions we can make and could materially and adversely affect our business, financial condition, and results of operations.

 

Economic downturns or recessions may also result in a Dealership’s failure to satisfy financial or operating covenants imposed by us or other lenders, which could lead to defaults and, potentially, acceleration of the time when the loans are due and foreclosure on its assets representing collateral for its obligations. Defaults or acceleration could trigger cross defaults under other agreements and jeopardize our ability to achieve our expected return on our investments in such Dealerships. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting Dealership. Additionally, if we or any of the dealerships we acquire or invest in are unable to pay their debts as they become due, we could suffer losses in our acquisitions and investments, which could materially and adversely affect our business, financial condition, and results of operations.

 

Covenant Breaches. A Dealership’s failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and, potentially, termination of its loans and foreclosure on its secured assets, which could trigger cross-defaults under other agreements and jeopardize a Dealership’s ability to meet its obligations under the debt or equity securities that we anticipate holding. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms, which may include the waiver of certain financial covenants, with a defaulting Dealership.

 

Leverage of Dealerships. Some of our potential Dealerships may be highly leveraged, which may have adverse consequences to these companies and to us as an investor. These companies may be subject to restrictive financial and operating covenants and the leverage may impair these companies’ ability to finance their future operations and capital needs. As a result, these companies’ flexibility to respond to changing business and economic conditions and to take advantage of business opportunities may be limited. Further, a leveraged company’s income and net assets will tend to increase or decrease at a greater rate than if borrowed money were not used.

 

Automotive Retail Risks

 

As discussed elsewhere in this Memorandum, we intend to devote 30-50% of our capital to acquiring and operating retail automotive dealerships (“Dealerships”), which face their own unique set of risks and uncertainties, such as the following.

 

Adverse
Economic Conditions. The Automotive Retail industry, and especially new vehicle unit sales, is influenced by
general economic conditions, particularly consumer confidence, the level of personal discretionary spending, interest rates,
fuel prices, unemployment rates, credit availability, auto emission and fuel economy standards, the rate of inflation,
currency exchange rates, the level of manufacturers’ production capacity, manufacturer incentives and consumers’
reaction to such incentives, intense industry competition, the prospects of war, other international conflicts or terrorist
attacks, weather conditions, product quality, affordability and innovation, the number of consumers whose vehicle leases are
expiring and the length of consumer loans on existing vehicles. During economic downturns, retail new vehicle sales typically
experience periods of decline characterized by oversupply and weak demand. Our business environment can become more difficult
if there is an economic slowdown, tightening of the credit markets and credit standards, volatility in consumer preference
around fuel- efficient vehicles in response to volatile fuel prices and concern about domestic manufacturer viability. As a
result, the Automotive Retail industry has periodically experienced, and could experience in the future, a decline in vehicle
sales and margins.

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Changes in interest rates can significantly impact new vehicle sales and vehicle affordability due to the direct relationship between rates and monthly loan payments, a critical factor for many vehicle buyers because of the impact interest rates have on customers’ borrowing capacity and disposable income.

 

Fuel prices have remained volatile and may continue to affect consumer preferences in connection with the purchase of vehicles. Rising fuel prices may make consumers less likely to purchase larger, more expensive vehicles, such as sports utility vehicles or luxury automobiles and more likely to purchase smaller, less expensive and more fuel-efficient vehicles. Further increases or sharp declines in fuel prices could have a material adverse effect on our business, financial condition and results of operations.

 

In addition, local economic, competitive and other conditions affect the performance of our Dealerships. The general economic conditions of the regions in which our dealerships are located and the spending habits of individuals in those regions will heavily affect our business, financial condition and results of operations.

 

Our Dealerships May Be Located in a Small Number of Geographic Regions. Our Dealerships are located in a small number of states, including New York, New Jersey, Connecticut, Pennsylvania, Texas, Massachusetts, New Hampshire, Vermont and Maine. As such, our Dealership operations may be adversely affected by economic conditions in a relatively small number of regions in the country.

 

Consumer Demand for New Vehicles. The success of our Dealerships depends in large part on the overall success of the vehicle lines they carry. New vehicle sales generate the majority of our total revenue and lead to sales of higher-margin products and services such as finance, insurance, vehicle protection products and other aftermarket products, and parts and service operations. Our new vehicle sales operations expose us to manufacturer concentration risks. Although our parts and service operations and used vehicle sales may serve to offset some of this risk, changes in automobile manufacturers’ vehicle models and customer demand for particular vehicles may have a material adverse effect on our business.

 

Manufacturers typically allocate their vehicles among dealerships based on the sales history of each dealership. Supplies of popular new vehicles may be limited by the applicable manufacturer’s production capabilities. Popular new vehicles that are in limited supply typically produce the highest profit margins. We depend on manufacturers to provide us with a desirable mix of popular new vehicles. Our business, financial conditions and results of operations may be materially adversely affected if we do not obtain a sufficient supply of these vehicles on a timely basis.

 

Natural Disasters & Adverse Weather Events. Actual or threatened natural disasters and severe weather events (such as hurricanes, earthquakes, fires, landslides, and hail storms) could affect the regions in which our Dealerships operate and disrupt Dealership operations, which may adversely impact our business, results of operations, financial condition, and cash flows. In addition to business interruption, the Automotive Retail business is subject to substantial risk of property loss due to the significant concentration of property values at Dealership locations. We may be exposed to uninsured or underinsured losses that could have a material adverse effect on our business, financial condition, and results of operations.

 

In addition, natural disasters in certain regions may adversely impact new vehicle production and the global automotive supply chain. A natural disaster in one region could disrupt the supply chain in another region. For example, in 2011, the earthquake and tsunami that struck Japan and the flooding in Thailand caused significant production and supply chain disruptions that resulted in significantly reduced new vehicle production and lower new vehicle shipments by Japanese manufacturers. These disruptions also impacted non-Japanese manufacturers that rely on components produced in Japan and / or Thailand.

 

Property Loss, Business Interruption or Other Liabilities. Our
Dealership business will be subject to substantial risk of loss due to the significant concentration of property values,
including vehicle and parts inventories; claims by employees, customers and third parties for personal injury or property
damage; and fines and penalties in connection with alleged violations of regulatory requirements. Some of these risks are not
covered by our insurance, and certain insurers have limited available property coverage in response to the natural
catastrophes experienced in recent years. If we experience significant losses that are not covered by our insurance, whether
due to adverse weather conditions or otherwise, or we are required to retain a significant portion of a loss, it could have a
materially adverse effect on us, our business, financial condition and results of operations.

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Conditions in the Credit Markets in the U.S. If the credit market tightens, there will be a decrease in the availability of automotive loans and leases in the automotive finance market. As a result, new and used vehicle sales and margins could decrease. A significant portion of vehicle buyers, particularly in the used car market, finance their vehicle purchases. Sub-prime finance companies have historically provided financing for consumers who, for a variety of reasons, including poor credit histories and lack of a down payment, do not have access to more traditional finance sources. Economic conditions could cause sub-prime finance companies to tighten their credit standards, which would reduce available credit and adversely affect used vehicle sales and margins. If sub-prime finance companies apply higher standards, if there is any tightening of credit standards used by sub-prime finance companies, or if there is any decline in the overall availability of credit in the sub-prime lending market, the ability of these consumers to purchase vehicles could be limited, which could have a material adverse effect on the used car business.

 

Unfavorable Economic Conditions in the U.S. and / or Europe. The unfavorable economic conditions that have affected the United States for the past few years, including low economic growth, high unemployment, and the decline in wealth resulting from depressed housing and equity markets, have adversely impacted the Automotive Retail market. Concerns over sovereign debt levels in the United States and / or the failure by Congress and the President of the United States to address federal deficits and rising debt levels or to raise the debt ceiling, and the possible negative implications to banks and the global economy arising out of the European debt crisis, could adversely impact the U.S. economy, credit availability, consumer confidence, and demand for new and used vehicles. Continuing or worsened unfavorable economic conditions in the United States or elsewhere could adversely impact our business and results of operations.

 

Goodwill and Intangible Assets. Goodwill and indefinite-lived intangible assets are subject to impairment assessments at least annually (or more frequently when events or changes in circumstances indicate that an impairment may have occurred) by applying a fair-value based test. Our principal intangible assets are goodwill and our rights under our framework, franchise and related agreements with vehicle manufacturers. A decrease in our profitability increases the risk of goodwill impairment. Negative or declining cash flows or a decline in actual or planned revenues or operating income of our Dealerships increases the risk of franchise rights impairment. An impairment loss could have a material adverse impact on our business, financial condition and results of operations.

 

Continued Viability & Overall Success of a Limited Number of Manufacturers. We will continue to be subject to a concentration of risks related with automobile manufacturers’ operations, including their financial distress, merger, sale or bankruptcy, including potential liquidation. The success of our Dealerships will be dependent on vehicle manufacturers in several key respects. First, we continue to rely exclusively on the various vehicle manufacturers for new vehicle inventory. Our ability to sell new vehicles will be dependent on a vehicle manufacturer’s ability to produce and allocate to our Dealerships an attractive, high quality, and desirable product mix at the right time in order to satisfy customer demand. Second, manufacturers generally support their franchisees by providing direct financial assistance in various areas, including, among others, floorplan assistance and advertising assistance. Third, manufacturers provide product warranties and, in some cases, service contracts to customers. To the extent our Dealerships perform warranty and service contract work for vehicles under manufacturer product warranties and service contracts, the Dealerships will direct bill the manufacturer as opposed to invoicing the customer. At any particular time, Dealerships will have significant receivables from manufacturers for warranty and service work performed for customers, as well as for vehicle incentives. In addition, our Dealerships often rely on manufacturers for original equipment manufactured replacement parts, training, product brochures, point of sale materials, and other items.

 

Vehicle manufacturers may be adversely impacted by economic downturns or recessions, significant declines in the sales of their new vehicles, increases in interest rates, adverse fluctuations in currency exchange rates, declines in their credit ratings, reductions in access to capital or credit labor strikes or similar disruptions (including within their major suppliers), supply shortages or rising raw material costs, rising employee benefit costs, adverse publicity that may reduce consumer demand for their products (including due to bankruptcy), product defects, vehicle recall campaigns, litigation, poor product mix or unappealing vehicle design, governmental laws and regulations, or other adverse events. During the recent economic downturn, vehicle manufacturers and in particular domestic manufacturers, were adversely impacted by the unfavorable economic conditions in the United States. In the event of another significant economic downturn, our business, financial condition and results of operations could be materially and adversely affected.

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Vehicle manufacturers are subject to federal fuel economy requirements, which increased substantially as a result of a new national program being implemented by the U.S. government to regulate greenhouse gases and fuel economy standards. These new requirements could adversely affect the ability of manufacturers to produce, and our ability to sell, vehicles in demand by consumers at affordable prices, which could materially and adversely impact the profitability of our Dealerships.

 

Our Dealerships could also be materially and adversely impacted by another bankruptcy of a major vehicle manufacturer or related lender. For example,

 

	
 

	
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a manufacturer in bankruptcy could attempt to terminate all or certain of our Dealership franchises, with that manufacturer in which case we may not receive adequate compensation for our franchises;

 

	
 

	
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consumer demand for such manufacturer’s products could be materially and adversely affected;

 

	
 

	
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a lender in bankruptcy could attempt to terminate our floorplan financing and demand repayment of any amounts outstanding;

 

	
 

	
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we may be unable to arrange financing for our customers for their vehicle purchases and leases through such lender, in which case we would be required to seek financing with alternate financing sources, which may be difficult to obtain on similar terms, if at all;

 

	
 

	
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we may be unable to collect some or all of our significant receivables that are due from such manufacturer or lender, and we may be subject to preference claims relating to payments made by such manufacturer or lender prior to bankruptcy; and

 

	
 

	
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such manufacturer may be relieved of its indemnification obligations with respect to product liability claims.

 

Additionally, any such bankruptcy may result in us being required to incur impairment charges with respect to the inventory, fixed assets, and intangible assets related to certain franchises, which could adversely impact our results of operations, financial condition, and our ability to remain in compliance with the financial ratios contained in our debt agreements. Tens of billions of dollars of U.S. government support were provided to Chrysler, General Motors, and Ally Financial (formerly known as GMAC). There can be no assurance that U.S. government support will be provided to the same extent or at all in the event of another bankruptcy of a major vehicle manufacturer or related lender. As a result, the potential adverse impact on our financial condition and results of operations could be relatively worse in a manufacturer or related lender bankruptcy which is not financially supported by the U.S. government.

 

Franchise Agreement Renewals. Our Dealerships operate under framework, franchise, and other related agreements with one of our manufacturers (or authorized distributors). Without such agreements, our Dealerships cannot obtain new vehicles from a manufacturer, receive floorplan and advertising assistance, perform warranty- related services or purchase parts at manufacturer pricing. As a result, our Dealerships are significantly dependent on relationships with these manufacturers, which exercise a great degree of influence over their operations through the framework, franchise, and other related agreements. For instance, manufacturers have to approve all purchases and sales of dealerships. In addition, we have granted certain manufacturers the right to acquire our dealerships franchised by that manufacturer in specified circumstances, which may lead to negotiations with the manufacturers on valuation of our assets.

 

Framework, franchise, and other related agreements may be terminated or not renewed by the manufacturer for a variety of reasons, including any unapproved changes of ownership or management and other material breaches of such agreements. We cannot guarantee all of the framework, franchise, and other related agreements that our Dealerships are or will be party to will be renewed at all or renewed on equally favorable terms. Further, the failure by us to maintain framework, franchise, and other related agreements with one manufacturer may prohibit us from obtaining such agreements with the same manufacturer or impede our ability to obtain or maintain such agreements with other manufacturers. In addition, actions taken by manufacturers to exploit their bargaining position in negotiating the terms of renewals of framework, franchise, and other related agreements could also have a material adverse effect on revenues and profitability. Our future results of operations may be materially and adversely affected to the extent that franchise rights that our Dealerships enjoy become compromised or operations restricted due to the terms of framework, franchise, and other related agreements. Furthermore, our dealerships rely on the protection of state franchise laws in the states in which our dealerships operate and if those laws are repealed or weakened, our dealerships’ framework, franchise, and related agreements may become more susceptible to termination, non-renewal, or renegotiation.

 

Framework, franchise,
and other related agreements often do not give a Dealership the exclusive right to sell a manufacturer’s product within
a given geographic area. Subject to state laws that are generally designed to protect dealers, a manufacturer may grant
another dealer a franchise to start a new dealership near the location of one of our Dealerships, or an existing dealership,
with the manufacturer’s approval, may move its dealership to a location that would more directly compete against one of
our Dealerships. The location of new dealerships near our dealerships could materially and adversely affect operations and
reduce the profitability of our Dealerships.

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Additionally, our dealerships’ framework and franchise agreements contain restrictions regarding a change in control, which may be outside of our control.

 

Failure to Secure, Renew, or Maintain Franchise Agreements. Our framework, franchise and dealer agreements prohibit transfers of any ownership interests of a dealership and, in some cases, its parent, without prior approval of the applicable manufacturer. Our existing framework, franchise and dealer agreements could be terminated if a person or entity acquires a substantial ownership interest in us or acquires voting power above certain levels without the applicable manufacturer’s approval. In addition, if we cannot obtain any requisite approvals on a timely basis, we may not be able to issue additional equity or otherwise raise capital on terms acceptable to us. These restrictions may also prevent or deter a prospective acquirer from acquiring control of us.

 

Failure to Meet Manufacturers’ Consumer Satisfaction Requirements. A manufacturer may condition its allotment of vehicles, participation in bonus programs, or acquisition of additional franchises upon our compliance with its brand and facility standards. These standards may require investments in technology and facilities that we otherwise would not make. This may put us in a competitive disadvantage with other competing dealerships and may ultimately result in our decision to sell a franchise when we believe it may be difficult to recover the cost of the required investment to reach the manufacturer’s brand and facility standards.

 

In addition, many manufacturers measure customers’ satisfaction with their sales and warranty service experiences through systems that are generally known as customer satisfaction indices, or CSI. Manufacturers sometimes use a dealership’s CSI scores as a factor in evaluating applications for additional dealership acquisitions. A manufacturer may refuse to consent to a franchise acquisition by us if our dealerships do not meet their CSI standards. This could materially and adversely affect our acquisition strategy. In addition, because we receive incentive payments from the manufacturers based in part on CSI scores, future payments could be materially reduced or eliminated if our CSI scores decline.

 

Manufacturers can also set performance standards with respect to sales volume and sales effectiveness, and can influence the naming and marketing of our Dealerships’ stores, our Dealerships’ digital channels, our Dealerships’ selection of management, product stocking and advertising spending levels, and the level at which our Dealerships are capitalized. Manufacturers also impose minimum facility requirements that can require significant capital expenditures. We cannot assure you that our stores will be able to comply with manufacturers’ sales, customer satisfaction, performance, facility, and other requirements in the future, which may adversely affect our business, financial condition and results of operations.

 

Manufacturers may also have certain rights to restrict our dealerships’ ability to provide guaranties, pledges of our interest in our dealerships, and liens on our dealerships’ assets, which could adversely impact our ability to obtain financing for our business and operations on favorable terms or at desired levels.

 

Failure to Acquire Dealerships & Successfully Integrate Them Into our Business. Growth in our revenues and earnings will depend on our ability to acquire Dealerships and successfully integrate those Dealerships into our operations, which we may be unable to do. We cannot guarantee that we will identify and acquire Dealerships— some manufacturers may not approve acquirers with our structure, and our ability to acquire Dealerships would be impaired if we were denied manufacturer approval. Similarly, if we acquired a Dealership and the manufacturer later terminated the ownership, such termination could materially impair our ability to acquire other Dealerships of that manufacturer or potentially other manufacturers. In addition, we cannot guarantee that any acquisitions will be successful. Restrictions by our manufacturers, as well as covenants contained in our debt instruments, may directly or indirectly limit our ability to acquire Dealerships. In addition, increased competition for acquisitions may develop, which could result in fewer acquisition opportunities available to us and / or higher acquisition prices. Some of our competitors may have greater financial resources than us.

 

We will need substantial capital in order to acquire Dealerships. We currently intend to finance acquisitions by using Offering proceeds and borrowings for real property purchases and working capital. While it has improved recently, access to funding through the debt capital markets could become challenging again in the future. Also, in the recent past, the cost of obtaining money from the credit markets increased as many lenders and institutional investors increased interest rates, enacted tighter lending standards, refused to refinance existing debt as maturity at all or on terms similar to current debt, and reduced and, in some cases, ceased to provide funding to borrowers. Accordingly, our ability to make acquisitions could be adversely affected if our access to capital is limited.

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Our future growth also depends on our ability to successfully integrate acquired dealerships in to our existing business. The process of integrating operations could cause an interruption of, or loss of momentum in, the activities of our dealerships. The integration of new dealerships may be difficult, time consuming and costly. Our integration efforts may not be completed as planned, may take longer to complete or may be costlier than anticipated.

 

If we are unable to acquire dealerships, our access to acquisition opportunities is limited, or our integration efforts are not successful, our business, financial condition and results of operations could be materially and adversely affected.

 

Consumer Incentive & Marketing Programs of Manufacturers. Most vehicle manufacturers from time to time establish various incentive and marketing programs designed to spur consumer demand for their vehicles. These programs will impact our operations, particularly sales of new vehicles. Since these programs are often not announced in advance, they can be difficult to plan for when ordering inventory. Additionally, manufacturers may modify and discontinue these incentive and marketing programs from time to time, which could have a material adverse effect on our results of operations and cash flows.

 

Risk of Reputational Harm. We believe that our Dealerships have built excellent reputations as automotive retailers in the regions in which we operate. We believe that our continued success will depend on our ability to maintain and enhance the value of our retail brands across all of our sales channels, including in the communities in which we operate.

 

Consumers are increasingly shopping for new and used vehicles, automotive repair and maintenance services, and other automotive products and services online and through mobile applications, including through third-party online and mobile sales platforms, with which our Dealerships compete, that are designed to generate consumer sales leads that are sold to automotive dealers. If we and our Dealerships fail to preserve the value of the dealerships’ retail brands or to maintain our reputation, our business could be adversely impacted.

 

An isolated business incident at a single store could materially and adversely affect our other stores, retail brands, reputation, and sales channels, particularly if such incident results in adverse publicity, governmental investigations, or litigation. In addition, the growing use of social media by consumers increases the speed and extent that information and opinions can be shared, and negative posts or comments on social media about any of our Dealerships could materially damage our retail brands, reputation, and sales channels.

 

We have invested and will continue to invest substantial resources in marketing activities. There can be no assurance that our marketing strategies will be successful or that the amount we invest in marketing activities will result in improved financial results. If our marketing initiatives are not successful, we will have incurred significant expenses without the benefit of improved financial results.

 

Substantial Competition in Automotive Sales & Services. The Automotive Retail industry is highly competitive. We have and expect to continue to focus on dealerships with strong management, earnings and market share. While we believe acquisitions in these areas offer the opportunity for current yield through strong cash flows that may increase over time, such acquisitions also involve a high degree of risk. Depending on the geographic market, our Dealerships will compete with:

 

	
 

	
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franchised automotive dealerships in markets that sell the same or similar makes of new and used vehicles that our Dealerships offer, occasionally at lower prices than our Dealerships;

 

	
 

	
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other national or regional affiliated groups of franchised dealerships and / or of used vehicle dealerships;

 

	
 

	
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rental car companies that sell their used rental vehicles;

 

	
 

	
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private market buyers and sellers of used vehicles;

 

	
 

	
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Internet-based vehicle brokers that sell vehicles obtained from franchised dealers directly to consumers;

 

	
 

	
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service center chain stores; and

 

	
 

	
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independent service and repair shops.

 

In the future, automobile manufacturers may directly enter the retail market, which could have a material adverse effect on our Dealerships. Some automobile manufacturers have acquired in the past, and may attempt to acquire in the future, automotive dealerships in certain states. Our revenues and profitability could be materially and adversely affected by the efforts of manufacturers to enter the retail arena.

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In addition to competition for vehicle sales, Dealerships will compete with franchised dealerships to perform warranty repairs and with other automotive dealers, franchised and independent service center chains and independent garages for non-warranty repair and routine maintenance business. Dealerships’ parts operations will compete with other automotive dealers, service stores and auto parts retailers. A number of regional or national chains offer selected parts and services at prices that may be lower than our Dealerships’ prices. Dealerships will also compete with a broad range of financial institutions in arranging financing for customers’ vehicle purchases. Further, our Dealerships’ competitors may have greater financial marketing and personnel resources and lower overhead and sales costs than our Dealerships have. If our Dealerships fail to compete effectively, our business, financial condition and results of operations could be materially and adversely affected.

 

In addition, the Internet has become a significant part of the advertising and sales process in the automotive industry. Customers are using the Internet as part of the sales process to compare pricing for cars and related finance and insurance services. Such price comparisons by our dealerships’ customers may reduce gross profit margins for new and used cars and profits for related finance and insurance services. Some web sites offer vehicles for sale over the Internet without the benefit of having a dealership franchise. If Internet new vehicle sales are allowed to be conducted without the involvement of franchised dealers, or if competing dealerships are able to effectively use the Internet to sell outside of their markets, our business could be materially and adversely affected. Our business, financial condition and results of operations could also be materially and adversely affected to the extent that Internet companies acquire dealerships or align themselves with our competitors’ dealerships.

 

Substantial Regulation. A number of state and federal laws and regulations affect our Dealership business, such as those relating to motor vehicle sales, retail installment sales, leasing, sales of finance, insurance, and vehicle protection products, licensing, consumer protection, consumer privacy, escheatment, anti-money laundering, environmental, vehicle emissions and fuel economy, health and safety, wage-hour, anti-discrimination, and other employment practices. Any failure to comply with these laws and regulations may result in the assessment of administrative, civil, or criminal penalties, the imposition of remedial obligations, such as extensive and expensive product recalls, or the issuance of injunctions limiting or prohibiting operations. In the states in which our Dealerships operate, the Dealerships are required to obtain various licenses in order to operate their businesses, including dealer, sales, finance and insurance-related licenses issued by state authorities. These laws also regulate the conduct of business, including advertising, operating, financing, employment and sales practices. Other laws and regulations include state franchise laws and regulations and other extensive laws and regulations applicable to new and used motor vehicle dealers, as well as various employment practices laws.

 

Dealerships’ financing activities with customers are subject to federal truth-in-lending, consumer leasing and equal credit opportunity laws and regulations, as well as state and local motor vehicle finance laws, installment finance laws, insurance laws, usury laws and other installment sales laws and regulations. In recent years, there has been an increase in activity related to oversight of consumer lending by the Consumer Financial Protection Bureau (“CFPB”), which has broad regulatory powers. The CFPB does not have direct authority over automotive dealers; however, its regulation of larger automotive finance companies and other financial institutions could affect our financing activities. Claims arising out of actual or alleged violations of law may be asserted against our Dealerships by individuals or governmental entities and may expose our Dealerships to significant damages or other penalties, including revocation or suspension of licenses to conduct our Dealership operations and fines.

 

The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) established a new consumer financial protection agency with broad regulatory powers. Although automotive dealers are generally excluded, the Dodd-Frank Act could lead to additional, indirect regulation of automotive dealers through its regulation of automotive finance companies and other financial institutions.

 

The enactment of new laws and regulations or the interpretation of existing laws and regulations in an unfavorable way may affect the operation of our business, directly or indirectly, which could result in substantial regulatory compliance costs, civil or criminal penalties, including fines, adverse publicity, decreased revenues and increased expenses.

 

Possible penalties for violation of any of these laws or regulations include revocation or suspension of licenses to operate and civil or criminal fines and penalties. In addition, many laws may give customers a private cause of action. Violation of these laws, the cost of compliance with these laws, or changes in these laws could result in adverse financial consequences to our dealerships.

 

Stringent Federal, State & Local Environmental Laws & Regulations. Dealerships are subject to a wide range of federal, state and local environmental laws and regulations. As with automotive dealerships generally, and service, parts and body shop operations in particular, the automotive dealership business involves the use, storage, handling and contracting for recycling or disposal of hazardous substances or wastes and other environmentally- sensitive materials. These environmental laws and regulations may impose numerous obligations that  are applicable to our Dealerships’ operations including the acquisition of permits to conduct regulated activities, the incurrence of capital expenditures to limit or prevent releases of materials from storage tanks and other equipment that they operate, and the imposition of substantial liabilities for pollution resulting from their operations. Numerous governmental authorities, such as the Environmental Protection Agency, and analogous state agencies, have the power to enforce compliance with these laws and regulations and the permits issued under them, oftentimes requiring difficult and costly actions. Failure to comply with these laws, regulations, and permits may result in the assessment of administrative, civil, and criminal penalties, the imposition of remedial obligations, and the issuance of injunctions limiting or preventing some or all of a Dealership’s operations.

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Our dealerships’ operations involve the use, handling, storage and contracting for recycling and/or disposal of materials, such as motor oil and filters, transmission fluids, antifreeze, refrigerants, paints, thinners, batteries, cleaning products, lubricants, degreasing agents, tires and fuel. Consequently, our business is subject to a complex variety of federal, state and local requirements that regulate the environment and public health and safety.

 

Most of our dealerships use above ground storage tanks, and, to a lesser extent, underground storage tanks, primarily for petroleum-based products. Storage tanks are subject to periodic testing, containment, upgrading and removal under the Resource Conservation and Recovery Act and its state law counterparts. Clean-up or other remedial action may be necessary in the event of leaks or other discharges from storage tanks or other sources. In addition, water quality protection programs under the federal Water Pollution Control Act (commonly known as the “Clean Water Act”), the Safe Drinking Water Act and comparable state and local programs govern certain discharges from our operations. Similarly, certain air emissions from operations, such as auto body painting, may be subject to the federal Clean Air Act and related state and local laws. Health and safety standards promulgated by the Occupational Safety and Health Administration of the United States Department of Labor and related state agencies also apply.

 

Certain dealerships may become a party to proceedings under CERCLA, typically in connection with materials that were sent to former recycling, treatment and/or disposal facilities owned and operated by independent businesses. The remediation or clean-up of facilities where the release of a regulated hazardous substance occurred is required under CERCLA and other laws.

 

We incur certain costs to comply with environmental, health and safety laws and regulations in the ordinary course of our business. We do not anticipate, however, that the costs of such compliance will have a material adverse effect on our business, results of operations, cash flows or financial condition, although such outcome is possible given the nature of our operations and the extensive environmental, public health and safety regulatory framework. We may become aware of minor contamination at certain of our facilities, and we conduct investigations and remediation at properties as needed. In certain cases, the current or prior property owner may conduct the investigation and/or remediation or we have been indemnified by either the current or prior property owner for such contamination. We do not currently expect to incur significant costs for remediation. However, no assurances can be given that material environmental commitments or contingencies will not arise in the future, or that they do not already exist but are unknown to us.

 

If we are found to be in purported violation of or subject to liabilities under any of these laws or regulations, or if new laws or regulations are enacted that impact our Dealerships, our business, financial condition and results of operations could be materially and adversely affected.

 

The U.S. Environmental Protection Agency has adopted rules under existing provisions of the federal Clean Air Act that require a reduction in emissions of greenhouse gases from motor vehicles, require certain construction and operating permit reviews for greenhouse gas emissions from certain large stationary sources, and require monitoring and reporting of greenhouse gas emissions from specified sources on an annual basis. The adoption of any laws or regulations requiring significant increases in fuel economy requirements or new federal or state restrictions on emissions of greenhouse gases from our operations or on vehicles in the United States could materially adversely affect, particularly during periods when fuel prices are low, the ability of manufacturers to produce, and our ability to sell, vehicles in demand by consumers at affordable prices, which could materially and adversely impact our business, financial condition and results of operations.

 

Vehicle manufacturers are subject to government-mandated fuel economy and greenhouse gas (“GHG) emission standards, which continue to change and become more stringent over time. In May 2010, the U.S. Environmental Protection Agency and the National Highway Transportation Safety Administration issued a joint final rule implementing harmonized federal standards for fuel economy and GHG emissions standards, which will substantially increase fuel economy requirements. These and other laws and regulations could materially adversely affect, particularly during periods when fuel prices are low, the ability of manufacturers to produce, and our dealerships’ ability to sell, vehicles in demand by consumers at affordable prices, which could materially adversely impact our business, financial condition and result of operations.

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State Dealer Laws. Certain state dealer laws generally provide that a manufacturer may not terminate or refuse to renew a franchise or dealer agreement unless it has first provided the dealer with written notice setting forth good cause and stating the grounds for termination or non-renewal. Some state dealer laws allow dealers to file protests or petitions or attempt to comply with the manufacturer’s criteria within the notice period to avoid the termination or non-renewal. Manufacturers’ lobbying efforts may lead to the repeal or revision of state dealer laws. If dealer laws are repealed or weakened in the states in which we operate, manufacturers may be able to terminate our franchises without providing advance notice, an opportunity to cure or a showing of good cause. Without the protection of state dealer laws, it may also be more difficult for our dealerships to renew their franchise or dealer agreements upon expiration.

 

The ability of a manufacturer to grant additional franchises is based on several factors which are not within our control. If manufacturers grant new franchises in areas near or within our existing markets, this could significantly impact our revenues and/or profitability. In addition, current state dealer laws generally restrict the ability of automobile manufacturers to enter the retail market and sell directly to consumers. However, if manufacturers obtain the ability to directly retail vehicles and do so in our markets, such competition could have a material adverse effect on us.

 

Interest Rate Risk in Connection With Vehicle Floor Plan Payables & any Debt Facility. Most of our Dealership debt, including the vehicle floorplan payable, will be subject to variable interest rates. Any variable interest rate debt will fluctuate with changing market conditions and, accordingly, the interest expense on any such debt will increase if interest rates rise. In addition, our net inventory carrying cost (new vehicle floorplan interest expense net of floorplan assistance that we receive from automotive manufacturers) may increase due to changes in interest rates, inventory levels, and manufacturer assistance. We cannot assure you that a significant increase in interest rates would not have a material adverse effect on our business, financial condition, results of operations or cash flows.

 

Failure of Our Information Systems or Any Security Breach. We rely on information systems to effectively manage our pricing strategy and tools, sales, inventory, and service efforts, the preparation of our consolidated financial and operating data, consumer financing, and customer information. The failure of information systems to perform as designed or the failure to maintain and enhance or protect the integrity of these systems could disrupt our business operations, impact sales and results of operations, expose us to customer or third-party claims, or result in adverse publicity. Additionally, we will collect, process, and retain sensitive and confidential customer information in the normal course of our business. Despite the security measures we plan to have in place and any additional measures we may implement, our facilities and systems, and those of any third-party service providers, could be vulnerable to security breaches, computer viruses, lost or misplaced data, programming errors, human errors, acts of vandalism, or other events. Any security breach or event resulting in the misappropriation, loss, or other unauthorized disclosure of confidential information, whether by us directly or any third-party service providers, could damage our reputation, expose us to the risks of litigation and liability, disrupt our business, or otherwise adversely affect our financial condition and results of operations.

 

Loss of Key Personnel or Failure to Attract Additional Qualified Personnel. We believe our success will depend to a significant extent upon the efforts and abilities of GPB’s, our Dealerships’, and our senior management. The unexpected or unanticipated loss of the services of one or more members of GPB’s, our Dealerships’ or our management teams could have an adverse effect on us and impair the efficiency and productivity of our operations. As a general matter, although we reserve the right to acquire insurance policies, we do not maintain key man insurance for any one or more members of GPB’s, our Dealership’s or our management teams.

 

The market for qualified employees in the industries and in the regions in which our dealerships operate, particularly for general managers and sales and service personnel, is highly competitive and may subject us to increased labor costs during periods of low unemployment. Accordingly, the loss of any key employees or the failure to attract qualified managers could have a material and adverse effect on our dealerships and may impact the ability of the dealerships we acquire to conduct their operations in accordance with our national standards.

 

Management Risks

 

Reliance on Individual Members of GPB & its Affiliates. We are particularly dependent upon the efforts, experience, contacts and skills of the individual members of GPB, the Acquisition Committee and certain of their affiliates and principals. There can be no assurance that the individual employees and advisors to GPB will continue to be employed by GPB or that such employees and advisors will continue to function on our behalf. The loss of any such individual could have a material, adverse effect on us, and such loss could occur at any time due to death, disability, resignation or other reasons. In some cases we may insure the lives of principals we deem important to our success. If the services of certain key employees of GPB become unavailable, GPB would need to recruit qualified personnel, which may prove difficult.

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Evaluation of Acquisitions. Limited Partners will not be permitted to evaluate Dealership opportunities or relevant business, economic, financial or other information that will be used by GPB in making acquisition decisions.

 

Changes in Acquisition Strategies. GPB has broad discretion to expand, revise or contract our business without the consent of the Limited Partners. Our acquisition strategies may be altered, without prior approval by, or notice to, the LPs, if GPB determines that such change is in our best interest.

 

Cost and Expenses Reimbursements and Fees. We are required to reimburse GPB and its affiliates for certain costs and expenses that they incur on our behalf for managing and controlling our business and operations. GPB and its affiliates also may provide us other services for which we will be charged fees as determined by GPB. Payments to GPB and its affiliates may be substantial and will reduce the amount of cash we have available to distribute to LPs.

 

Limited Voting Rights. GPB cannot be removed as our general partner solely because LPs believe that it is poorly managing our business. Unlike the holders of common stock in a corporation, LPs have only limited voting and consent rights on matters affecting our business and, therefore, limited ability to influence management’s decisions regarding our business. For example, unlike holders of stock in a public corporation, LPs will not have “say-on-pay” advisory voting rights. LPs did not elect GPB and will have no right to elect GPB on an annual or other continuing basis. Furthermore, if the LPs are dissatisfied with the performance of GPB, they will have little ability to remove GPB. As a result of these limitations, the price at which our Units may trade could be diminished because of the absence or reduction of a takeover premium in the trading price.

 

The LPs’ right to remove GPB is only available upon the occurrence of certain events, such as in the event of a final, non-appealable judicial determination that GPB has committed fraud, gross negligence or willful misconduct which has a material impact on the Company. Furthermore, even if such an event occurs, the vote of the holders of at least 20% of LPs who are not affiliates of GPB is required to remove GPB. There is also limited ability of LPs to call meetings or to acquire information about our operations, as well as other provisions limiting the LPs’ ability to influence the manner or direction of management.

 

Due Diligence. Even if GPB conducts extensive due diligence on a target business, we cannot assure Investors that this diligence will surface all material issues that may be present inside a particular target business, that it would be possible to uncover all material issues through a customary amount of due diligence, or that factors outside of the target business and outside of our control will not later arise. We may be forced to later write down or write off assets, restructure our operations, or incur impairment or other charges that could result in losses. Even if GPB’s due diligence successfully identifies certain risks, unexpected risks may arise and previously known risks may materialize in a manner not consistent with preliminary risk analyses. We expect that the investigation of each specific target business and the negotiation, drafting, and execution of relevant agreements, disclosure documents, and other instruments will require substantial management time and attention and substantial costs for accountants, attorneys and others. If we decide not to complete a specific acquisition, the costs incurred up to that point for the proposed transaction likely would not be recoverable. Furthermore, if we reach an agreement relating to a specific target business, we may fail to consummate the transaction for any number of reasons including those beyond our control. Any such event will result in a loss to us of the related costs incurred, which could materially and adversely affect subsequent attempts to locate and acquire another business.

 

Conflicts of Interest. GPB’s C-Level Personnel will never be compensated by Dealerships for serving as executive officers of the Dealerships, except to the extent certain C-Level Personnel (i) provide personal guarantees backstopping certain Dealership obligations, in which case these C-level Personnel may receive compensation for such guarantees in amounts that the GP believes are fair and reasonable and / or (ii) receive compensation or other remuneration in connection with the provision of Operations Support Services, as described in greater detail in “Company Fees & Expenses – Partnership Expenses”. In addition, Related Parties may have potential or actual conflicts of interest in connection with our activities and acquisitions. Related Parties may serve as officers, directors, accountants, advisors to or managers of Dealerships or other companies (and receive fees or other compensation at market rates from such Dealerships in connection therewith for services which would have otherwise been outsourced). Such other companies may have objectives or may implement strategies similar to ours. For additional information, see “Company Fees & Expenses – Partnership Expenses.”

 

The acquisition strategies of Other GPB Entities may overlap with one or more of our acquisition strategies. If a potential Dealership acquisition fits the acquisition objective of one or more GPB sponsored entity, the GPB Acquisition Committee will allocate opportunities in good faith and on a basis believed to be fair and equitable, and no GPB sponsored entity shall receive preferential treatment over another. In order to ensure all Dealership acquisitions are allocated fairly, the GPB Acquisition Committee will consider the company’s specific circumstances and adhere to the Allocation Policy. For further discussion on the Allocation Policy, see “Allocation of Opportunities” below.

 

We will not enter into any Inter-Company Loans on a going-forward basis.

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When a Dealership (or group of Dealerships) is acquired by the Company and Other GPB Entities in connection with a joint venture, financing arrangements may carry joint and / or several obligations among the assets of such Dealerships (or among such Dealerships). In such situations, these joint and / or several obligations are generally limited to the specific assets of the Dealerships for which the financing is being utilized.

 

For further discussion on Related Parties and Conflicts of Interest, see “Related Parties & Conflicts of Interest.”

 

U.S. Tax Risks

 

General. The Company expects to be treated as a partnership for U.S. federal income tax purposes. Each Limited Partner, in determining its U.S. federal income tax liability, will take into account its allocable share of our income, gain, loss, deduction and credits, without regard to whether it has received distributions from us. We may take positions with respect to certain tax issues that depend on legal and other interpretive conclusions. Potential Limited Partners are urged to review the discussion under the section titled “Certain Tax, ERISA, and Other Regulatory Matters.” The tax consequences to Limited Partners of an investment in the Class B Units are complex. Accordingly, each prospective Limited Partner is advised to consult its own tax counsel as to the specific tax consequences of an investment in the Class B Units.

 

Unrelated
Business Taxable Income. We may incur income that would be treated as unrelated business taxable income. Our
anticipated activities are expected to produce income that is subject to taxation as unrelated business taxable income under
Code §512 and §514 (UBTI). Certain other special tax considerations may be applicable to U.S. tax-exempt
investors investing in us. Accordingly, prospective Investors that are tax exempt entities, including qualified retirement
plans (stock, bonus, pension, or profit sharing plans described in Code §401(a)) and individual retirement accounts
(IRAs), are urged to consult their tax advisors concerning the U.S. federal, state and local income and other tax
consequences that may result from an investment in the Company.

 

The foregoing list of risk factors does not purport to be a complete enumeration or explanation of the risks involved in an investment in the Company. Prospective Investors should read the entire Memorandum, the LPA, the Subscription Documents, and consult with their own advisers before deciding whether to invest in the Company. In addition, as our investment program develops and changes over time, an investment in the Company may be subject to additional and different risk factors.

 

COMPANY FEES & EXPENSES

 

The following table sets forth our best estimate of how we intend to use the gross and net proceeds from the Offering assuming that we sell the maximum offering amount of $750,000,000. However, the number of Units to be offered may vary from these assumptions. Class B Units in the offering are being offered on a best efforts basis at $50,000 per Class B Unit.

 

The table assumes that all of the offering gross proceeds come from sales of Class B Units. The table also assumes that the Servicing Fee is paid in-full on all Units offered. The Servicing Fee may be reduced or eliminated at the discretion of the General Partner and with the consent of any third-party, as applicable. Any reduction in such fees will lead to a corresponding increase in the amount of proceeds available for acquisition and will not reduce the Offering Price Per Unit paid by the LP. Because amounts in the following table are estimates, they may not accurately reflect the actual receipt or use of the offering proceeds. In particular, the following table assumes that 100% of the offering will be raised by selling Class B Units, which will not be the case. Other share classes of the Company, and individual LPs, may be subject to different fees and expenses. In addition, the amounts below do not reflect Partnership Expenses, the Managerial Assistance Fee, and expenses in respect of In-House Services and Operations Support Services, which, in the aggregate, may be substantial and will reduce the amount of proceeds available for acquisition.

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The following table sets forth information about how we intend to use the proceeds raised in this offering, assuming that we sell the maximum offering amount of $750,000,000. The figures set forth below cannot be precisely calculated at this time and are presented for illustrative purposes only:

 

		 

	Maximum Offering Size (in millions)

	 

	 	 

	Amount

	 

	 

	%
                                         of Proceeds

	 

	Gross
                                         Offering Proceeds

	 

	$

	750.000

	 

	 

	 

	100.00

	%

	Less
                                Company Fees & Expenses:

	 

	 

	 

	 

	 

	 

	 

	 

	Servicing
                                Fee

	 

	$

	3.000

	 

	 

	 

	0.40

	%

	Organizational
                                Expenses

	 

	$

	9.375

	 

	 

	 

	1.25

	%

	Acquisition
                                Fee

	 

	$

	13.125

	 

	 

	 

	1.75

	%

	Proceeds
                                Available for Acquisition*

	 

	$

	724.500

	 

	 

	 

	96.60

	%

 

The Company will continue to bear the following fees and expenses:

 

Servicing Fee: Investors in Class B Units will indirectly pay broker-dealers, certain employees, officers and directors of Ascendant, or other affiliates of the Company an annual servicing fee equal to 0.4% of all Capital Contributions attributable to Class B Units, initially payable upon an investor’s subscription for Class B Units and payable annually for so long as such investor holds an interest in the Company. GPB reserves the right to pay Servicing Fees that are less than or more than the foregoing amount.

 

Upon acceptance of a Limited Partner’s subscription and continuing annually thereafter, a portion of such LP’s subscription price will be used to pay the Servicing Fee. The Servicing Fees are in addition to the Partnership Expenses, Managerial Assistance Fees, Acquisition Fees and Organizational Expenses payable by the Company.

 

The Servicing Fees are different from the fees and commissions paid by investors in the Class A Units being separately offered by the Company through different distribution channels. Information regarding the fees, commissions and expenses payable by investors in the Class A Units is available from the Company upon request.

 

Organizational Expenses: All costs and expenses, up to 1.25% of the gross proceeds received by (or expected to be received by) the Company from the Offering, actually incurred by the Company, the GP, its affiliates or a third party in connection with the Offering and organization of the Company, including legal, accounting, consulting and other professional fees and expenses, and all other costs and expenses (including travel and entertainment expenses relating to capital raising efforts), actually incurred by the Company, the GP or affiliates thereof (“Organizational Expenses”) will be paid or reimbursed by the Company. Any Organizational Expenses in excess of such amount will be paid by the GP or its affiliates. While the GP is entitled to full reimbursement of our Organizational Expenses up to the cap (which is in part based on our expected Offering size), it may defer reimbursements of a portion of Organizational Expenses in its discretion. Additionally, while the GP is entitled to reimbursements based on the expected offering size, if the Company does not raise the full amount of the expected Offering size, the GP will return any such reimbursement amount exceeding 1.25% of the gross proceeds received by the Company in the Offering.

 

Managerial Assistance Fee: GPB will receive an annualized Managerial Assistance Fee, payable by the Company quarterly in advance equal to 2.0% of the Capital Contributions made to us for providing managerial assistance and other services to us and the Dealerships. Those services will include conducting our day to day operations as described above, along with providing reports to LPs and other duties assumed under the LPA. The Managerial Assistance Fee does not include expenses related to In-House Services and Operations Support Services (defined below) provided to the Company or its Portfolio Companies. Such expenses are in addition to, and not in lieu of, the Managerial Assistance Fee.

 

The Managerial Assistance Fee will be paid over time and based on the initial value of LPs’ Capital Contributions. It will not decrease if the value of our acquisitions decreases, nor will it increase if the value of our acquisitions increases.

 

GPB has the right to
assign all or a portion of the Managerial Assistance Fee otherwise payable to GPB, and we will pay such Managerial Assistance
Fee, to designated placement agents for services rendered by such placement agents in connection with the Offering, including
placement agents that are members of the Selling Group, such as AAS. GPB also has the right to defer, waive or reduce all or
a portion of the Managerial Assistance Fee for certain Limited Partners as GPB may determine in its sole discretion (and
intends to waive the Managerial Assistance Fee with respect to the Special LP and its affiliates who invest in the Company).
Neither the Company nor GPB will be required to notify any other Limited Partner if and when GPB determines to defer, reduce
or waive any Managerial Assistance Fee for a Limited Partner, nor will the Company or GPB be required to offer the same
deferral, reduction or waiver to any other Limited Partner.

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Acquisition Fee. Upon the consummation of any acquisition of a Dealership, the Company pays and / or will pay qualified third-parties, including members of the Selling Group (other than persons holding an interest in the Dealership) an Acquisition Fee of 1.75% of the total acquisition cost of the Dealership, not to exceed 2.75% of the purchase price of the Dealership assets acquired in the transaction (the “Acquisition Fee”). For these purposes, “total acquisition cost” is the sum of the debt used to acquire the Dealership (or assumed by us in making the acquisition) plus the purchase price of the Dealership acquired in the transaction plus any working capital contributions made by us at the time of acquisition. The Acquisition Fee will be paid in consideration of services provided in our Offering, including but not limited to identifying, structuring and providing us with advice on our acquisitions or capital raising efforts. GPB presently anticipates the Company paying Acquisition Fees to Ascendant Alternative Strategies, LLC, of which Ascendant is a branch office, and we may identify other third parties for which we determine such compensation would be appropriate. GPB, in its sole discretion, may defer, reduce or waive the Acquisition Fee with respect to one or more Limited Partners (and intends to waive the Acquisition Fee with respect to the Special LP and its affiliates who invest in the Company).

 

Partnership
Expenses. The Company is responsible for and will pay all costs, expenses and charges incurred with respect to the
ownership, operation and maintenance of the Company and its assets, as determined by GPB, which includes the following
expenses (but does not include the Organizational Expenses): (A) (i) all fees and expenses incurred (including but not
limited to any such fees or expenses of or payable to Ascendant) in connection with: (a) the origination, evaluation
(including industry analyses and evaluations), investigation, structuring, acquisition, or disposition of Company assets,
including appraisals fees, taxes, brokerage fees (including but not limited to the Acquisition Fee and finder’s fees),
underwriting commissions and discounts, legal, accounting, investment banking, consulting, information services, professional
fees and financing fees (including the repayment of those financings and the costs related to establishing and maintaining a
credit facility for the Company) and investment-related travel; (b) the carrying or management of the Company’s assets;
(c) communications with partners; (d) any restructuring or amendments to the constituent documents of the Company and any
subsidiary or other entity owned by the Company; (e) distributions to partners; (f) In-House Services (as defined below); and
(g) Operations Expenses (as defined below); (ii) attorneys’ and accountants’ fees and expenses; (iii) taxes
(including margin taxes) and other governmental charges levied against the Company (except to the extent that such taxes or
other governmental charges have been deemed distributed to a partner pursuant to Section 8.5 of the LPA); and (iv)
indemnifiable insurance, regulatory or litigation expenses (and damages) of the General Partner and other persons or
entities indemnified under the LPA; (B) Managerial Assistance Fees; (C) all fees and expenses incurred in connection with any
meetings of the Limited Partners; (D) all fees and expenses incurred in connection with the registration, qualification or
exemption of the Company under any applicable federal, state, or local law and all other fees and expenses imposed by any
governmental authority with respect to the Company’s operations or assets; (E) all fees and expenses relating to
the preparation of financial statements of the Company, the local, state and federal income, franchise, margin and other tax
returns of the Company, other regulatory reports and filings of the Company, and all other documents, opinions, appraisals
and reports delivered to the Partners; (F) all fees and expenses incurred in connection with any litigation, mediation,
arbitration or other legal or tax proceeding involving the Company (including the cost of any investigation and preparation)
and the amount of any judgment or settlement paid in connection therewith; (G) all fees and expenses incurred in connection
with the collection of amounts due to the Company; (H) all fees and expenses incurred in connection with the winding-up,
dissolution and liquidation of the Company; (I) all fees and expenses incurred in connection with transactions that are
allocated to the Company but not consummated; and (J) all insurance costs and expenses, and all costs and expenses incurred
in connection with any obligations to provide indemnification or contribution to any persons or entities indemnified pursuant
to Section 9.3 of the LPA, pursuant to any approval of the partners or as a matter of law (collectively,
 “Partnership Expenses”).

 

The Company pays its
own operating expenses as further detailed in Section 3.3 and 3.5 of Article 3 of the LPA, attached hereto as Exhibit A. The
General Partner is responsible for its or its affiliates’ general and administrative costs and expenses and its
day-to-day overhead expenses of managing the Company and is not entitled to be reimbursed by the Company for such expenses
other than for the portion of the total compensation of the General Partner’s, its affiliates’ (including Holding
Companies), or Ascendant’s officers and employees relating to the time such officers or employees provide In-House
Services or Operations Support Services, both as described below, to the Company or its Dealerships. Such expenses are in
addition to, and not in lieu of, the Managerial Assistance Fee. “In-House Services” include but are not
limited to finance, tax, accounting, legal, compliance, IT, HR, investor relations, administrative, risk management,
operational, administrative and management services to the Company or the Dealerships. For the avoidance of doubt, any
Partnership Expenses paid to Ascendant will not reduce any fees otherwise payable to GPB. For additional information on
Ascendant, see “The Special LP” above.

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In addition, GPB, the Company or its Dealerships will from time-to-time retain and compensate companies and individuals (“Operations Support Providers”), which include affiliates and employees of GPB, and third-party consultants and advisors. The Operations Support Providers provide operational support and consulting services and similar services to, or in connection with, the identification, acquisition, holding and improvement of such Dealerships (“Operations Support Services”). These services may be high level insight or extensive day-to-day roles, and may include support to GPB or Dealerships regarding, among other things, the company’s management and operations (including serving in management positions or participating in determining corporate strategy), the company’s sales/marketing strategy and retail strategy, data intelligence, finance (including generating metrics and reporting and business restructuring), human capital management (including recruiting personnel and determining executive/incentive compensation), information technology, corporate communications, customer service, sustainability, real estate matters and similar operational matters. The nature of the relationship with each such Operations Support Provider and the time devotion requirements of each such Operations Support Provider may vary significantly.

 

Fees and expenses associated with Operations Support Services (“Operations Expenses”) are generally paid and/or reimbursed by the Company but may be paid or reimbursed by the relevant Dealership. Operations Expenses (including Operations Expenses incurred in connection with an affiliated Operations Support Provider, including GPB employees) will be determined at the discretion of GPB taking into account the particular Operations Support Services, may include an annual fee or retainer, a discretionary bonus, a profits or equity interest in a Dealership or Holding Company or other incentive-based compensation to the Operations Support Provider as well as any expenses incurred with respect to recruiting and hiring Operations Support Providers. Operations Expenses will include the compensation of certain GPB employees relating to the time such employees provide Operations Support Services. The determination of whether a service is an Operations Support Service will be made by GPB, in its sole discretion. Operations Expenses will, from time to time also be incurred in respect of Dealerships prior to the closing of the investment. In the event one or more Operations Support Providers (directly or indirectly) is providing services with respect to both the Company and other GPB sponsored entities, such Operations Expenses will be allocated among the Company and other GPB sponsored entities as determined by GPB, as applicable in a fair and equitable manner. To the extent any such Operations Expenses are payable to any Operations Support Provider that is affiliated with or employed by GPB, such Operations Expenses will not reduce any fees otherwise payable to GPB. These payments or reimbursements are in addition to, and not in lieu of, the Managerial Assistance Fee. GPB’s determination as to whether a service is an Operations Support Service, the categorization of any fees and expenses (e.g., as Operations Expenses) and the allocation of such fees and expenses shall be binding on the Company and its investors.

 

As distinguished from certain of our competitors who may allocate Operations Expenses at the Portfolio Company level, but may have less direct oversight, GPB believes that it is able to maintain a higher degree of operating control over its Portfolio Companies’ operations and finances by employing many of these individuals itself (in lieu of having these individuals employed by the Portfolio Companies or by having independent third parties serve in these roles). It is GPB’s view that the benefits of this structure far outweigh the costs borne by the Company and, indirectly, the Company’s Limited Partners. Given the income-oriented nature of our Portfolio Companies, and our desire to pay a monthly distribution to our limited partners, GPB believes that this type of oversight of our Portfolio Companies is critical to our long-term success.

 

ALLOCATION OF PROFITS & LOSSES

 

For each Fiscal Period (fiscal quarters or Fiscal Years), Net Profits and Net Losses generally will be allocated to the Limited Partners, including the Special LP and the GP, according to their Capital Accounts in a manner sufficient to cause each Limited Partner’s Capital Account to equal the amounts such Limited Partners would receive upon the liquidation of the Company. Net Profits and Net Losses are determined on an accrual basis of accounting in accordance with GAAP. “Net Profits” or “Net Losses” are our taxable income or loss determined in accordance with the Code, with adjustments provided in the LPA.

 

RELATED PARTIES & CONFLICTS OF INTEREST

 

Prospective investors
should be aware that there may be occasions when GPB and its Related Parties will encounter potential conflicts of interest
in connection with our activities. The following discussion enumerates certain potential conflicts of interest that should be
carefully evaluated before making an investment in us. The following list is not intended to be an exhaustive list of the
potential conflicts. There can be no assurance that GPB will resolve all conflicts of interest in a manner that is favorable
to us. By acquiring a Class B Unit, each Limited Partner will be deemed to have acknowledged the existence of any such actual
or potential conflicts of interest and to have waived any claim with respect to any liability arising from the existence of
any such conflicts of interest.

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Related-Party Transactions

 

We will not enter into any Related Party Transaction without the approval of all of the members of the Advisory Committee, except to the extent such transaction is part of a consolidation or “roll up” of Portfolio Companies for the eventual purpose of a potential disposition of some or all such assets.

 

Other GPB Activities

 

Although the senior acquisition professionals intend to devote such time as shall be necessary to conduct the business and affairs of the Company, they are also involved in other activities of GPB, including activities of other accounts and entities sponsored and managed by GPB, including Holding Companies (“Other GPB Entities”). Further, GPB and the senior acquisition professionals may in the future organize and manage one or more companies with objectives and acquisition strategies similar to or different than ours. Some of these entities may have interests that conflict with ours.

 

Conflicts of interest may arise in allocating time, services, or resources among our activities and those of Other GPB Entities, GPB and its Related Parties. GPB will devote such time as shall be necessary to conduct our business affairs in an appropriate manner. However, GPB will continue to devote the resources necessary to manage Other GPB Entities and other affiliates, and to manage the activities of GPB.

 

All of the Company’s operational capabilities and personnel are provided by GPB and/or Ascendant, which provide similar resources for its Other GPB Entities. GPB personnel also provide services to Dealerships. Because GPB and/or Ascendant provide all of the Company’s operational capabilities and personnel to multiple GPB sponsored entities, including the Company, GPB attempts to allocate such expenses, including the compensation of its finance, tax, accounting, legal, compliance, HR, IT, investor relations, administrative, operational and management, risk management and other personnel, among its clients fairly and equitably. The personnel expenses of GPB-employed persons who provide services specifically to the Company or Other GPB Entities are not part of the Managerial Assistance Fee and are paid by the Company and other GPB sponsored entities and accounts as allocated by GPB in its reasonable discretion. When allocating expenses, GPB generally fairly and equitably allocates such expenses among the Company and the Other GPB Entities depending on the portion of time its personnel devote to a particular GPB sponsored entity provided, however, that GPB may allocate expenses in a different manner if it believes it is in the best interest of us and the Other GPB Entities.

 

GPB and its Related Parties are also not precluded from conducting activities unrelated to Other GPB Entities. GPB and its affiliates may, and expect to, receive fees or other compensation from third parties in connection with these acquisition activities and such fees and compensation shall be for the benefit of their own account and not for us. GPB believes that these other activities will not materially interfere with their responsibilities to us. GPB’s C-Level Personnel will not be compensated by the Dealership for serving as executive officers of the Dealerships, except to the extent certain C-Level Personnel (i) provide personal guarantees backstopping certain Dealership obligations, in which case these C-level Personnel may receive compensation for such guarantees in amounts that the GP believes are fair and reasonable and / or (ii) receive compensation or other remuneration in connection with the provision of Operations Support Services, as described in greater detail in “Company Fees & Expenses – Partnership Expenses”.

 

On May 1, 2018, Kyle
Brengel, CPA, CGMA was appointed as the Interim Chief Financial Officer of GPB. Mr. Brengel is serving as Interim Chief
Financial Officer, while Macrina Kgil, GPB’s departing Chief Financial Officer, stays on as a strategic advisor. In the
role of Interim Chief Financial Officer, Mr. Brengel, alongside GPB’s accounting and finance department, will be
responsible for GPB’s finance, treasury management, accounting, administration, financial statement preparation, and
overall finance infrastructure, and will be compensated by GPB and/or its affiliates. Note, however, that as the
Company’s organizational documents permit, to the extent Mr. Brengel provides services to the Company, a portion of his
compensation may be paid by the Company. Mr. Brengel brings over 30 years of financial and public accounting expertise to his
position, most notably as a Managing Partner of Gentile Pismeny & Brengel LLP (“GP&B”). GP&B
has and will continue to provide tax preparation and miscellaneous accounting services to GPB, the Company and other entities
related to GPB. As noted in the Company’s Confidential Private Placement Memorandum, prior to founding GPB, David
Gentile spent 25 years at GP&B. In addition to serving as the Interim Chief Financial Officer, Mr. Brengel will also
remain on as a Managing Partner at GP&B. GPB has not imposed any time devotion requirement on Mr. Brengel, though we
anticipate that Mr. Brengel will spend a significant portion of his time providing Interim Chief Financial Officer services
to GPB. While GP&B is a longstanding and trusted service provider to GPB, Mr. Brengel’s dual role as both Interim
Chief Financial Officer of GPB and as a Managing Partner at GP&B, a service provider to GPB, the Company and other
affiliates of GPB and the Company, gives rise to potential conflicts of interest, including the possibility that Mr. Brengel
may not be able to devote sufficient time to the position of Interim Chief Financial Officer and/or that Mr. Brengel may be
incentivized to direct additional business to GP&B from the Company, GPB, and their affiliates.

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The Company, either directly or indirectly through one of our Holding Companies or other affiliates, may also enter into incentive compensation arrangements with Operations Support Providers, which we believe are necessary for the success of our investments and ultimately in the best interest of our investors. Such compensation arrangements will reduce the amount of capital available to acquire and operate Dealerships and to make other permitted acquisitions, which may impact the return realized by the LPs on their investment. For additional information, see “Company Fees & Expenses – Partnership Expenses.”

 

Allocation of Acquisition Opportunities

 

The acquisition strategies of Other GPB Entities may overlap with one or more of our acquisition strategies.

 

If a potential Dealership acquisition fits the acquisition objective of one or more GPB sponsored entities, the GPB Acquisition Committee will allocate opportunities in good faith and on a basis believed to be fair and equitable, and no company shall receive preferential treatment over another. In order to ensure all Dealership acquisitions are allocated fairly, the GPB Acquisition Committee will, consistent with GPB’s allocation policies and procedures, consider the company’s specific circumstances, including, but not limited to:

 

	
 

	
•

	
The amount of capital a GPB sponsored entity currently has available, as compared to the total amount of capital each GPB sponsored entity anticipates raising;

 

	
 

	
•

	
The amount of time that has elapsed since the GPB sponsored entity made its last acquisition;

 

	
 

	
•

	
The extent to which a particular opportunity achieves the stated objectives of the company; and

 

	
 

	
•

	
The extent to which a particular opportunity would complement the GPB sponsored entity’s sector diversification goals, and, for Automotive Retail assets in particular, the GPB sponsored entity’s geographic and brand diversification goals.

 

Furthermore, should an acquisition opportunity be suitable for more than one of the Other GPB Entities, the GPB Acquisition Committee may deem it appropriate at times for companies to joint venture. Such joint ventures may also include the Company and / or Other GPB Entities investing in a GPB-sponsored holding company or other entity; however, in such situations, the Company will not be subject to a “double layer” of Managerial Assistance Fees nor Performance Allocation, but the Company may bear its pro-rata share of the expenses of such GPB- sponsored holding company or other entity. Should the GPB Acquisition Committee recommend a transaction in which more than one GPB sponsored entities joint venture, GPB will not:

 

	
 

	
•

	
Disadvantage one GPB sponsored entity over another GPB sponsored entity;

 

	
 

	
•

	
Pursue the transaction unless each company has the right to participates on the same terms, including the ability of a company to acquire additional interests;

 

	
 

	
•

	
Recommend one company participate in the joint venture as a method to increase our fees from that or another GPB sponsored entity;

 

	
 

	
•

	
Pursue such transactions as a method to transfer risk from one GPB sponsored entity to another GPB sponsored entity; and

 

	
 

	
•

	
Bring an additional GPB sponsored entity into the transaction for the purpose of reducing another GPB sponsored entity’s transactional costs.

 

As noted above, all decisions related to this policy must be approved and documented by the GPB Acquisition Committee pursuant to its governing Charter. In addition, to mitigate any potential conflicts of interests, GPB will not sponsor entities with economic structures that are significantly different. A copy of GPB’s Acquisition Allocation Policy is available upon request.

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As indicated above, to
the extent we identify a prospective desirable acquisition requiring a capital commitment in excess of an amount to which we
can commit, we may participate with Other GPB Entities in a joint venture. Subject to the terms of the LPA, GPB may also
joint venture with investors (including unrelated parties, Limited Partners and other affiliates or employees of GPB)
(collectively, “Joint Venture Partners”). Such Joint Venture Partners may invest on terms other than those
applicable to us as our preference will generally be to participate with a priority of earning cash flow and may have
interests or requirements that conflict with and adversely impact us (for example, with respect to their liquidity
preference, the timing of acquisitions and disposals, or control rights). GPB will generally seek to ensure that we, any
Other GPB Entity, GPB, and Joint Venture Partners participate in any joint venture and any related transactions on comparable
terms to the extent practicable. Investors should note, however, that this may not be practicable or appropriate in all
circumstances and that we may participate in such opportunities on other terms than such parties if GPB deems such
participation as being otherwise in our best interests. This may have an adverse impact on us.

 

The acquisition strategies
of GPB Holdings, LP (“Holdings I”) and the Company, each a GPB sponsored entity, overlap with our strategy
of acquiring and operating businesses, including acquisitions of assets of and interests in income-producing automobile dealerships
in North America. Holdings I (closed to new money) has raised approximately $192M and the Company has raised $587M as of March
31, 2018 and is seeking to raise up to $750M through its offering.

 

Dealership Interests

 

GPB may acquire an ownership stake on behalf of Other GPB Entities or for its own account in a dealership that is a competitor of another one of our Dealerships or that is a service provider, supplier, customer, or other counterparty with respect to one of our Dealerships. In providing advice and recommendations to, or with respect to, such Dealerships, and in dealing in their securities on behalf of Other GPB Entities or GPB, to the extent permitted by law, GPB will not have regard to our interests and Dealerships. Accordingly, such advice, recommendations, and dealings may result in adverse consequences to us or our Dealerships. As noted above, conflicts of interest may also arise with respect to the allocation of GPB’s time and resources between such Dealerships. To the extent not restricted by confidentiality requirements or applicable law, GPB may apply experience and information gained in providing services to our Dealerships to provide services to competing Dealerships invested in by GPB or Other GPB Entities.

 

GPB’s personnel may serve as directors or officers of Dealerships and will, as a result, be subject to fiduciary obligations to make decisions that they believe to be in the best interests of the Dealership. Although in most cases our interests and its Dealerships will be aligned, this may not always be the case, particularly if a Dealership is in financial difficulty. This may result in a conflict between the relevant director’s obligations to the Dealership and our interests. In some circumstances, having GPB personnel serve as directors or officers of a Dealership (including, for these purposes, the Dealership of any Other GPB Entities) may restrict our ability to acquire direct interests in an acquisition opportunity that also constitutes an acquisition opportunity for such Dealership.

 

Service Providers

 

GPB will generally select service providers by collecting multiple bids for services and using reasonable diligence by taking into account factors such as expertise, availability and quality of service and the competitiveness of compensation rates in comparison with other service providers satisfying GPB’s service provider selection criteria. GPB will generally determine the compensation of such providers without review by or consent of the Limited Partners, the Advisory Committee or other independent parties. We, regardless of the relationship to GPB of the person performing the services, will bear the fees, costs and expenses related to such services. This could create conflict of interest for us. In certain circumstances, advisors and service providers, or their affiliates, may charge different rates or have different arrangements for services provided to GPB or its affiliates as compared to services provided to us and its Dealerships, which may result in more favorable rates or arrangements than those payable by us or such Dealership. Mr. Gentile is a member of the board of directors of Alphaserve Technologies, an IT services company. To the extent Alphaserve Technologies perform services to us and GPB, such services shall be rendered to us on terms that are equal to or better than those that apply for GPB.

 

Operations Support Providers

 

GPB has relationships
with experienced executives, managers, consultants and other advisors with relevant insight, access, sector-specific
expertise, operating or other experience. These individuals, who we consider to be “Operations Support
Providers,” provide several benefits to the acquisition process and to the management of Dealerships, including serving
as a source of proprietary deal flow and contacts, identifying operational opportunities and pitfalls during the due
diligence process, providing sector-specific operational and competitive insight, providing direction and oversight
post-acquisition, serving in an executive or board capacity, and helping to build and mentor management teams. If an
Operations Support Provider is engaged as a consultant or advisor to the Company, a GPB affiliate, such as a Related Party,
or a Dealership, or as an officer or member of the board of directors of a Dealership, the Company or the applicable
Dealership will pay for and bear the costs of services at rates determined in good faith by GPB or the Dealership, as
applicable. Equity compensation paid to former owners of our Dealerships is an additional transaction related fee that will
increase the cost of an acquisition. We believe these incentive compensation arrangements with the Operations Support
Providers are necessary for the success of our acquisitions and ultimately in the best interest of our LPs. For additional
information on the compensation of Operations Support Providers, see “Company Fees & Expenses –
Partnership Expenses.”

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Principal Transactions; Borrowing

 

Operations Support Providers, including executive and non-executive employees of GPB, may provide us or our Dealerships with services, including serving as members of the board of directors of one or more of our Dealerships. For serving as a member on any such board of directors, certain employees of GPB will be entitled to receive compensation in the form of director fees and director incentive compensation. Any such fees and compensation paid to the directors will be commensurate with standard arms-length rates. However, C-Level Personnel of GPB who serve on the board of directors of any of our Dealerships will not be entitled to receive any compensation for such services, except to the extent certain C-Level Personnel (i) provide personal guarantees backstopping certain Dealership obligations, in which case these C-level Personnel may receive compensation for such guarantees in amounts that the GP believes are fair and reasonable and / or (ii) receive compensation or other remuneration in connection with the provision of Operations Support Services, as described in greater detail in “Company Fees & Expenses – Partnership Expenses”.

 

We will not enter into any Inter-Company Loans on a going-forward basis.

 

When a Dealership (or group of Dealerships) is acquired by the Company and Other GPB Entities in connection with a joint venture, financing arrangements may carry joint and / or several obligations among the assets of such Dealerships (or among such Dealerships). In such situations, these joint and / or several obligations are generally limited to the specific assets of the Dealerships for which the financing is being utilized. Any such joint and / or several obligations could result in Dealerships (or an asset of a Dealership) bearing more than its share of a particular obligation if such other Dealerships (or other assets of such Dealership) are unable to repay their pro-rata share.

 

Third Party Fees

 

GPB has the right to assign all or a portion of the Managerial Assistance Fee otherwise payable to GPB, and we may pay such Managerial Assistance Fee, to designated placement agents for services rendered by such placement agents in connection with the Offering, including placement agents that are members of the Selling Group. The placement agents are not acting as investment advisers to potential investors. Potential investors must make their own investment decisions. GPB also has the right to defer, waive or reduce all or a portion of the Managerial Assistance Fee for certain Limited Partners as GPB may determine in its sole and absolute discretion (and intends to waive the Managerial Assistance Fee with respect to the Special LP and its affiliates who invest in the Company). Neither the Company nor GPB will be required to notify any other Limited Partner if and when GPB determines to defer, reduce or waive any Managerial Assistance Fee for a Limited Partner, nor will the Company or GPB be required to offer the same deferral, reduction or waiver to any other Limited Partner.

 

Upon the consummation of acquisitions of certain Dealerships, the Company pays and / or will pay qualified third parties, including members of the Selling Group (other than persons holding an interest in the Dealership) an Acquisition Fee, which is equal to 1.75% of the total acquisition cost of the Dealership, not to exceed 2.75% of the purchase price of the Dealership assets acquired in the transaction (the “Acquisition Fee”). For these purposes, “total acquisition cost” is the sum of the debt used to acquire the Dealership (or assumed by us in making the acquisition) plus the purchase price of the Dealership acquired in the transaction plus any working capital contributions made by us at the time of acquisition. The Acquisition Fee will be paid in consideration of services provided in our Offering, including but not limited to identifying, structuring and providing us with advice on our acquisitions or capital raising efforts. GPB presently anticipates the Company paying Acquisition Fees to Ascendant Alternative Strategies, LLC, of which Ascendant is a branch office, and we may identify other third parties for which we determine such compensation would be appropriate. GPB, in its sole discretion, may defer, reduce or waive the Acquisition Fee with respect to one or more Limited Partners (and intends to waive the Acquisition Fee with respect to the Special LP and its affiliates who invest in the Company).

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Managerial Assistance Fee; Performance Allocation

 

The Managerial Assistance Fee payable by us to GPB and the Performance Allocation that the Special LP will receive have been determined solely by GPB and the Special LP, respectively. GPB’s principals and certain employees are members of the Special LP. As noted above, certain officers, employees and directors of Ascendant may become members of the Special LP and, as such, may become entitled indirectly to receive a profit allocation from the Company. Certain officers and employees of Ascendant also act as placement agents for this Offering and are part of the Selling Group. Other placement agents for this offering may also be eligible to receive ownership interests in the Special LP in the discretion of the Special LP.

 

The Company will pay substantial Managerial Assistance Fees to GPB and may make substantial Performance Allocations to the Special LP, which in turn will distribute portions of the Performance Allocations to GPB’s principals and certain employees. These fees and distributions result in conflicts of interest. Among other things, because the amount of the carried interest distributions depends upon the Company’s performance, the General Partner may have an incentive to cause the Company to make investments that are more speculative than would otherwise be the case. In addition, recently enacted tax legislation provides that, if certain holding period requirements are not met with respect to investments made by the Company, carried interest distributions in respect of such investments will be subject to higher rates of U.S. federal income tax than was the case under prior law. This new holding period limitation could give the General Partner an incentive to cause the Company to hold investments for a longer period than would otherwise be the case.

 

Diverse Investors

 

The Limited Partners are expected to include natural persons or entities, including tax-exempt organizations, which are subject to different tax and regulatory regimes. The Limited Partners may thus have conflicting investment, tax and other interests with respect to their investments in us. The conflicting interests of individual Limited Partners may relate to or arise from, among other things, the nature of our acquisitions, the structuring of our acquisitions and the timing of disposition of our Dealerships. As a consequence, conflicts of interests may arise in connection with decisions made by GPB, including with respect to the nature or structuring of acquisitions that may be more beneficial for one investor than for another investor. The results of our activities may affect individual Partners differently, depending upon their individual financial and tax situations because, for instance, of the timing of a cash distribution or of an event of realization of gain or loss and its characterization as long-term or short-term gain or loss. In addition, we may make acquisitions that may have a negative impact on related investments made by the Limited Partners in separate transactions. In selecting and structuring acquisitions appropriate for us, GPB will consider our acquisition and tax objectives and our Partners as a whole, and not the acquisition, tax or other objectives of any Limited Partner individually. However, there can be no assurance that a result will not be more advantageous to some Limited Partners than to others or to GPB and / or its affiliates than to a particular Limited Partner.

 

Related Activities

 

The Related Parties, including GPB executives, and certain broker-dealers involved in the Offering also may make investments alongside us. The Related Parties may have investments in certain of the entities managed by a Related Party, and / or serve as officers and / or directors (and receive fees or other compensation in connection therewith) of entities in which we invest.

 

Advisory Committee

 

Our Advisory Committee is composed of three members, who are appointed and may be removed by the GP. Under the LPA, Advisory Committee members must be Independent Persons, as defined in “Management – Advisory Committee” above. We will not enter into any Related Party Transaction without the approval of all of the members of the Advisory Committee, except to the extent such transaction is part of a consolidation or “roll up” of Portfolio Companies for the eventual purpose of a potential disposition of some or all such assets.

 

The Company is in the process of identifying new candidates to serve on the Advisory Committee. As of the date hereof, there are two open Advisory Committee seats. One member resigned in the fall of 2017 and another in the spring of 2018. Neither of the resigning members had any disagreements with the Company, and no Related Party Transactions had been proposed to the Advisory Committee immediately prior to or after such resignations.

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Affiliation with Ascendant Alternative Strategies, LLC

 

Offers and sales of the Class B Units will be sourced primarily through Ascendant Alternative Strategies, LLC (“AAS”), an affiliate of GPB. Ascendant Capital, LLC (“Ascendant Capital”) is a branch office of AAS. The Company has entered into a Dealer Manager Agreement with AAS, as summarized below. David Gentile, GPB’s Founder and Chief Executive Officer, is an indirect minority owner of AAS (but not Ascendant Capital). Mr. Gentile is not actively involved in the day-to-day operations of AAS. AAS is registered with the SEC as a broker-dealer and is a member of FINRA/SIPC and is authorized to engage in the following activities: (i) offering private placements; (ii) selling limited partnerships in primary distributions; and (iii) acting as a wholesaling broker-dealer, selling interests in various types of direct investment products. Ascendant may, in the future, seek the approval of the SEC and / or FINRA to engage in additional securities and investment banking activities, and engage in such activities as permitted by the SEC and / or FINRA.

 

The relationship between GPB and AAS gives rise to conflicts of interest between GPB and the Company, as AAS’s interests and / or the interests of its clients may conflict with the interests of the Company and its Limited Partners. GPB presently anticipates the Company paying Acquisition Fees, Performance Allocations, Selling Fees, Servicing Fees and Operations Expenses to AAS and / or its owners, officers, directors, or employees. Such fees and expenses may be substantial and are in addition to the Managerial Assistance Fees or any other fees payable by the Company to GPB. As AAS is an affiliate of GPB, such compensation may not in each case be negotiated at arm’s length and from time to time may be in excess of fees, commissions or other compensation that may be charged by an unaffiliated third party.

 

Nothing in this Memorandum or in the Company’s LPA precludes or in any way limits the activities of AAS, including its ability to buy or sell interests in, or arrange financing to, portfolio companies of the Company or competitors of portfolio companies. For example, Ascendant may from time to time perform services for clients who may have interests that conflict with those of portfolio companies or the Company. Ascendant’s activities are carried out generally without reference to assets held directly or indirectly by the Company, even though such activities may have an effect on the value of the assets so held.

 

AAS may from time to time also act as placement agent in respect of unaffiliated investment funds or portfolio companies that may compete with the Company. In providing such services to, or with respect to, a competitor fund or company, AAS may not take into consideration all of the interests of the Company.

 

In addition, AAS may from time to time collect fees from a company in which the Company has an interest, and such fees will not benefit Limited Partners in the Company. GPB has an incentive to seek to influence the decision by a portfolio company’s management to retain AAS, or to otherwise transact with AAS, instead of other unaffiliated broker-dealers or other service providers or counterparties that may be more appropriate or offer better terms.

 

By acquiring Units in the Company, each Limited Partner will be deemed to have acknowledged the existence of any actual and potential conflicts of interest set forth herein in connection with the Company’s affiliation with AAS, and to have waived any claim with respect to any liability arising from the existence of any such conflicts of interest.

 

Summary of the Dealer Manager Agreement with AAS

 

On March 28, 2017, the Company entered into a dealer manager agreement (the “Dealer Manager Agreement”) with AAS whereby the Company appointed AAS to act as the exclusive dealer manager (the “Dealer Manager”) of the Company. As Dealer Manager, AAS will solicit and retain soliciting dealers (“Soliciting Dealers”) to solicit subscriptions for the Class A Units. In no event shall the Dealer Manager be entitled to payment of any compensation in connection with a sale pursuant to the Offering that is not completed according to the Dealer Manager Agreement; provided, however, that the Dealer Manager may be reimbursed for reasonable out-of-pocket expenses incurred in connection with the Offering. No Commissions, Wholesaling Fees or Placement and Marketing Support Fees (as defined in the LPA) will be paid with respect to sales of Class B Units. For sales of Class B Units, an annual Servicing Fee equal to 0.4% of capital contributions will be initially payable upon an investor’s subscription for Class B Units and payable annually thereafter for so long as such investor holds an interest in such Units.

 

The Company shall reimburse the Dealer Manager for reasonable bona fide due diligence expenses incurred by the Dealer Manager.

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SUMMARY OF THE LPA

 

The following description of certain provisions of the LPA, which governs substantially all aspects of our business, including the rights and obligations of the GP and the other LPs, is not intended to be complete, and reference is made to the detailed provisions of the LPA. All prospective Limited Partners should read the LPA in their entirety and may wish to consult with their own counsel with respect thereto. A representation that the prospective Investor has done so is contained in the Subscription Documents. A copy of the LPA is attached as Exhibit A. Capitalized terms used below and not otherwise defined have the same meaning as provided in the LPA.

 

Nature of Company & Limitation of Liability

 

The Company is a limited partnership formed under the Delaware Revised Uniform Limited Partnership Act (the “Act”). The LPA limits LPs’ liability for our losses or debts up to their Capital Contributions, any gains or income allocated to their respective Capital Accounts, and the obligation, if any, to return distributions to the Company to the extent required under the Act.

 

Under the Act, a limited partnership may not make a distribution to a partner to the extent that, at the time of the distribution, after giving effect to the distribution, all liabilities of the limited partnership, other than liabilities to partners on account of their limited partnership interests and liabilities for which the recourse of creditors is limited to specified property of the limited partnership, exceed the fair value of the limited partnership’s assets. A Limited Partner who receives a distribution in violation of this provision, and who knew at the time of the distribution that the distribution violated this provision, is liable to the limited partnership for the amount of the distribution.

 

Control of Operations

 

The GP is vested with the exclusive management and control of our business. LPs have no power to take part in the management of or bind us. No person should become a Limited Partner unless such person is willing to entrust all aspects of the management of the Company to the GP. The GP may contract with any person to carry out any of its duties and may delegate to such person any of its power or authority under the LPA, but no such contract or delegation will relieve the GP of any of its duties or obligations thereunder. In addition, any lender may restrict the ability of the GP to take certain actions without such lender’s consent.

 

Removal of the General Partner

 

The GP may be removed
as General Partner upon the affirmative vote of at least 20% of the LPs (who are not affiliates of the GP) if any of the
following events occur: (i) a final, non-appealable judicial determination that the GP has committed fraud, gross negligence
or willful misconduct which has a material impact on the Company, or (ii) (A) an action or proceeding under the United States
Bankruptcy Code is filed against the GP and (I) such action or proceeding is not dismissed within 90 days after the date of
its filing or (II) the GP files an answer acquiescing in or approving of such action or proceeding, (B) an action or
proceeding under the United States Bankruptcy Code is filed by the GP or (C) a receiver or conservator is appointed to take
control of the GP or all or a substantial portion of its property. If the GP were to be so removed, a majority of the
LPs will elect a successor general partner, any Units held by the GP would not be affected, and the Special LP’s
Performance Allocation would be exchanged for Units.

 

Voting Rights of LPs

 

The Limited Partners do not have voting rights except in certain situations specified in the LPA.

 

Liability of General Partner; Indemnification

 

To the fullest extent provided by law, our debts, liabilities and obligations belong solely to us, and the GP will not be liable or obligated personally for any such debt, liability or obligation solely by reason of its status as General Partner. The GP and its affiliates will not be liable to us or any Limited Partner for losses sustained, liabilities incurred, or benefits not derived by the LPs in connection with (i) any decisions made by, or actions taken or not taken by, the GP or its affiliates, so long as the GP or its affiliates acted in good faith and in a manner it reasonably believed to be in, or not opposed to, the best interests of the Company and their conduct did not constitute gross negligence, fraud or willful or wanton misconduct; or (ii) any Partner’s experience of identity theft or other similar criminal activity.

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The LPA provides that we will, to the fullest extent permitted by law, indemnify the GP and its officers, directors, members, employees and other related parties and their respective affiliates (collectively, “Indemnified Persons”), and advance expenses to Indemnified Persons as described in the LPA. The Company will indemnify Indemnified Persons for losses, liabilities and damages sustained by them if they acted in good faith and in a manner that they reasonably believed to be in or not opposed to the best interest of the Company, and, with respect to any criminal action, had no reasonable cause to believe that their actions were unlawful. No indemnification will be made for any claim for which an Indemnified Person is found to be liable for gross negligence, willful misconduct, fraud or a material breach of the LPA. To the extent that an Indemnified Person is successful in defending a suit, they will be indemnified against expenses, including attorney’s fees, actually incurred in connection therewith.

 

Expenses incurred by the Indemnified Person in defending any suit or action will be paid by the Company in advance of final disposition of the action or suit, provided that the Indemnified Person will undertake to repay the amount if they are found not to be entitled to indemnification. The indemnification and advancement of expenses provided to the Indemnified Persons are not exclusive of any other rights to which the Indemnified Person may be entitled. The Company reserves the power to buy and maintain insurance on behalf of the GP and its affiliates in addition to these indemnification provisions.

 

Conflicts of Interest

 

The LPA restricts us from entering into any Related Party Transaction without the approval of all of the members of the Advisory Committee, except to the extent such transaction is part of a consolidation or “roll up” of Portfolio Companies for the eventual purpose of a potential disposition of some or all such assets. See “Related Parties & Conflicts of Interest.”

 

Capital Contributions & Capital Accounts

 

Each LP will have a Capital Account established on the books of the Company which will be credited with such LP’s Capital Contribution, net of Servicing Fees (the Net Capital Contribution). Each such Limited Partner’s Capital Account will be increased to reflect (i) any additional Capital Contributions by and (ii) any Net Profits allocable to such Limited Partner, and will be decreased to reflect (y) any distributions to and (z) any Net Losses allocable to such Limited Partner.

 

Additional Capital Contributions

 

Additional Capital
Contributions may be made by LPs at any time while the Offering is open in amounts of at least $10,000, subject to the
GP’s discretion to accept lesser amounts. Such additional contributions will not be “credited” to us (i.e.,
deemed to be part of our assets for purposes of calculating Allocation Percentages or Net Profits and Net Losses) until the
later of acceptance by us and the first day of the calendar month following such Additional Contributions. The GP may, in its
sole discretion, reject any additional subscription request.

 

Allocation of Net Profits & Net Losses

 

For each Fiscal Period (fiscal quarters or Fiscal Years), Net Profits and Net Losses generally will be allocated to the LPs, including the Special LP and the GP, according to their Capital Accounts in a manner sufficient to cause each LP’s Capital Account to equal the amounts such LPs would receive upon the liquidation of the Company. Net Profits and Net Losses are determined on an accrual basis of accounting in accordance with GAAP. “Net Profits” or “Net Losses” are our taxable income or loss determined in accordance with the Code, with adjustments provided in the LPA.

 

Distributions to LPs

 

The GP intends for us to make periodic distributions of cash, if any, to each LP beginning on the fifteenth day of the third month following such LP’s applicable subscription for Units. Periodic distributions are currently and may in the future be paid out of available working capital, which include investor contributions.

 

We will apportion and make distributions of cash as it’s available (after payment of any tax distributions, see below, and payment and reservation of all amounts deemed necessary by the GP). Distributions of available cash (including periodic distributions) will be paid in the following amounts and order of priority:

 

	
 

	
(i)

	
first, 100% to the LPs, in proportion to their respective Net Capital Contributions, until each LP has received cumulative distributions pursuant to this clause (i) equal to such LP’s Net Capital Contribution plus the aggregate amount (if any) of any waivers of or reductions in fees that would otherwise be attributable to such LP;

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(ii)

	
second, 100% to the LPs , in proportion to their respective Unreturned Capital Contributions, until each LP has received cumulative distributions pursuant to this clause (ii) and clause (i) equal to such LP’s aggregate Capital Contributions;

 

	
 

	
(iii)

	
third, 100% to the LPs, in proportion to their respective Accrued Preferred Returns, until each LP has received cumulative distributions in an amount equal to the sum of such LP’s aggregate Capital Contributions and the Preferred Return;

 

	
 

	
(iv)

	
fourth, 100% to the Special LP until the cumulative distributions made to the Special LP pursuant to this clause (iv) equal 20% of the sum of (i) all amounts distributed to each LP pursuant to clauses (i), (ii) and (iii) in excess of such LP’s Net Capital Contribution (plus the aggregate amount (if any) of any waivers of or reductions in fees that would otherwise be attributable to such LP) and (ii) the Catchup; and

  

	
 

	
(v)

	
fifth, 80% to the LPs, in proportion to their respective aggregate Capital Contributions, and 20% to the Special LP.

 

Additionally, the GP may cause the Company to advance amounts to the Special LP sufficient to cover tax liabilities of the Special LP or its members attributable to allocations of amounts under clauses (iv) and (v) above (“tax distributions”). Any such tax distributions will be treated as an advance against any future distributions that the Special LP is entitled to under clauses (iv) and (v) above.

 

After the winding up of the Company, the Special LP will be required to restore funds to the Company to the extent that it has received cumulative distributions under clauses (iv) and (v) above in excess of amounts distributable to the Special LP pursuant to the distribution provisions set forth above; provided, however, that the Special LP’s will not be required to restore funds in excess of the cumulative distributions under clauses (iv) and (v) above that the Special LP has received from the Company, net of (i) the Special LP’s tax liabilities with respect to those distributions, as determined in accordance with the LPA, less (ii) the tax benefit of losses allocated to the Special LP to reverse prior allocations of taxable income to the extent that such tax benefits are actually realized in the form of a reduction in tax liability otherwise owed as determined by the Special LP in its sole discretion. The amount so contributed will be for the sole benefit of the Limited Partners and not creditors of the Company and may be paid directly to the Limited Partners by the Special LP.

 

By way of example of the waterfall provided above, if (i) we have only one LP with Class B Units and the Limited Partner’s gross Capital Contribution is $100,000, and we make monthly distributions of $725 and an additional distribution of $200,000 on the first anniversary of the Limited Partner’s subscription, then the waterfall would be calculated as follows:

 

	
 

	
•

	
First, $96,800 ($100,000 multiplied by 0.968) to the LP under clause (i) above as a return of the Limited Partner’s Net Capital Contribution;

 

	
 

	
•

	
Second, $3,200 to the LP under clause (ii) above as a return of the Limited Partner’s Capital Contribution;

 

	
 

	
•

	
Third, $7,623 to the LP as the Preferred Return;

 

	
 

	
•

	
Fourth, $2,706 to the Special LP as the Catchup;

 

	
 

	
•

	
Fifth, $98,371 as follows: (i) $78,697 (or 80%) to the LP and (ii) $19,674 (or 20%) to the Special LP (the Performance Allocation).

 

In the example above, distributions
to the Class B Limited Partner would total $186,320 (constituting the return of the LP’s $100,000 Capital Contribution plus
$86,320) and distributions to the Special LP would total $22,380. All subsequent distributions would be shared 80/20 between the
LP and the Special LP under clause (v) above, since all of the LP’s Capital Contributions would have been returned, plus
payment of the Preferred Return.12

 

Because of differences in the amount of Selling Fees attributable to LPs holding different Unit classes, there will be variances in the amounts individual LPs receive from the Company.

 

We are restricted in the distribution of profits by the Act, which prohibits a limited partnership from making a distribution of profits to its partners if, after giving effect to the distribution, the limited partnership would be unable to pay its debts as they become due in the usual course of business, or if the limited partnership’s total assets would be less than the sum of its total liabilities. Even if we may legally declare distributions, the amount and timing of such distributions will depend on our earnings, if any, our financial condition, and other factors considered relevant by the GP. While LPs will receive current distributions out of cash, we are not required to return any capital to the Limited Partners until the Company is liquidated.

 

 

12 This waterfall example is for illustrative purposes only and the distributions set forth in this example will likely exceed the distributions made to Limited Partners during such time period. There can be no assurance that such returns will be achieved, and an investment in the Company entails a risk of full loss.

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Winding Up of the Company

 

Upon the winding up or termination of the Company, the Company will be wound up in accordance with the LPA. The GP is empowered to distribute our assets in-kind when liquidating the Company, and such in-kind assets may be difficult for individual LPs to monetize.

 

Amendment of LPA & Other Action

 

The GP has the power, without the consent of the Limited Partners, to amend the LPA and take such other action as it deems necessary to (i) reflect the admission, substitution, termination, or withdrawal of LPs or of additional classes of Units in accordance with the LPA; (ii) cure any ambiguity, correct or supplement any provision in the LPA not inconsistent with the law or with other provisions of the LPA, or make other changes with respect to matters arising under the LPA that will not be inconsistent with the law or with the provisions of the LPA, provided that no such amendment will materially adversely affect the LPs without appropriate Limited Partner consent; (iii) add, amend or delete provisions of the LPA which addition, amendment or deletion is, in the opinion of counsel to the Company, for the protection of or otherwise to the benefit of the Limited Partners; (iv) take such actions (if any) as may be necessary to ensure that the Company will be treated as a partnership for federal income tax purposes and not be required to register as an investment company under the 1940 Act; (v) reflect the proposal or adoption of regulations under Code §704(b) or §704(c) otherwise to preserve or achieve uniformity of the Units, provided that such amendment would not have a material adverse effect on the Limited Partners or the Company and is consistent with the principles of Code §704; and (vi) make such amendments or deletions to take into account the effect of any change in, amendment of or repeal of any applicable legislation, which amendments, in the opinion of counsel to the Company, do not and will not materially adversely affect the interests of the LPs without appropriate Limited Partner consent. Investors should note that LPs have no voting rights except in very limited and specific situations.

 

Assignment & Transfer of Units

 

There are significant restrictions on the transferability of Units. See “Restrictions on Transfer of Interests.”

 

Compulsory Transfer or Acquisition of Units

 

The LPA grants the GP the authority to require a Limited Partner to transfer its Units or, if the Limited Partner does not transfer its Units within 21 days, to have the Company reacquire such Units for the price paid by such Limited Partner without interest. The GP may exercise this power if, in its sole determination, any continued holding of Units by any direct or beneficial LP might cause or be likely to cause an Adverse Effect.

 

Limited Redemption Rights

 

LPs who have held their Units for at least one year may request that we repurchase all, but not less than all, of their Units; though LPs do not have a right to demand a return of their capital. An LP wishing to have Units redeemed must mail or deliver in writing a request to us indicating that desire. The price for a redeemed Unit will be the Redemption Price Per Unit (as defined below) as of the close of business on the applicable redemption date, minus any fees incurred by the Company in connection with the redemption, including legal and administrative costs for redemption, with such fees to not exceed 2% of such Limited Partner’s Capital Contributions. “Redemption Price Per Unit” means 97% of (A) (i) cash, the gross asset value of the Portfolio Companies, the value of which shall be calculated as follows: (a) for the first six months after the acquisition of a Portfolio Company, the acquisition cost of such Portfolio Company and (b) thereafter, the fair value of such Portfolio Company, determined in accordance with ASC 946, and other assets less (ii) Partnership Expenses, Organization and Offering Expenses, and any other liabilities, divided by (B) the aggregate number of Units of the Company.

 

We intend to redeem
Units on a quarterly basis on the last business day of each calendar quarter and will not redeem in excess of 10% of the
Units during any 12-month period, provided that the Company will not redeem any Units held by an LP prior to the time that is
60 calendar days after the Company receives the required written notice from the LP. The GP reserves the right in its sole
discretion at any time and from time to time to (i) reject any request for redemption, (ii) change the Redemption Price Per
Unit or prior notice period for redemptions, or (iii) terminate, suspend and / or reestablish our redemption program. The GP
will determine from time to time whether the Company has sufficient excess cash from operations to repurchase Units.
Generally, the cash available for redemptions will be limited to 10% of our operating cash flow from the previous Fiscal
Year. If funds set aside for the redemption program are not sufficient to accommodate all requests as of any calendar quarter
end, then at such future time, if any, when sufficient funds become available, in the GP’s sole discretion, pending
requests will be honored among all requesting LPs in accordance with their order of receipt.

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Power of Attorney

 

Under the LPA and the Subscription Agreement, you appoint the GP as your attorney-in-fact for signing certain documents, including the LPA. You cannot revoke this special power of attorney, which will survive your death and any transfer of your Units.

 

Meetings & Reports

 

We have adopted a taxable year ending on December 31. Books of account will be kept by the Company in accordance with GAAP. GPB will perform an annual valuation of the Company in conformance with GAAP, and our financial statements will be annually audited by a PCAOB-registered firm and provided to the LPs.

 

Our books and records, including certain information regarding the GP, copies of the LPA and certain other organizational documents, and federal, state and local income tax or information returns and reports will be maintained at the office of the Company. Any LP will, at its expense and upon providing the GP with no less than 10 business days’ prior written request, have access to the books and records of the Company (excluding the list of Partners, but including the Register) during normal business hours or as designated by the GP for such purposes as required by the Act; provided, however, that the LP exercising such right may not unreasonably interfere with or disrupt our business.

 

As soon as practicable (generally within 120 days) after the end of each Fiscal Year, the GP will deliver to each LP on our behalf (i) an audited financial report of the Company for such Fiscal Year containing a balance sheet as of the beginning and the end of such Fiscal Year, a statement of changes in the Limited Partners’ equity as of such dates; and a statement of operations for such period, and (ii) all necessary tax reporting information, which information will include all necessary information in order for all LPs to satisfy reporting obligations under the Code with respect to any acquisitions we make in any entities organized or formed in jurisdictions outside the United States.

 

Within 45 days after the end of each Fiscal Quarter, the GP will use its best efforts to deliver to each LP an unaudited summary investment report of the Company for such Fiscal Quarter; provided that once our Units are registered under the 1934 Act, the GP may elect to provide such information with reference to our 1934 Act quarterly reports filed with the SEC. See “1934 Act Reporting Requirements” above.

 

The production of the Company’s audited financial statements for fiscal year 2017 has been delayed. GPB will provide the completed audited financial statements as soon as they become available.

 

The GP may call meetings of the LPs from time to time to consider the advisability of taking certain action in conducting our business if in its opinion such a meeting would be useful in explaining the proposal, but the GP has no obligation to call such meetings.

 

SERVICE PROVIDERS

 

Auditor

 

The books of account and records for the Company, GPB and each Dealership, prepared on the basis of GAAP, will be audited annually. Crowe Horwath LLP, a firm registered with the Public Company Accounting Oversight Board (“PCAOB”), has been engaged as our auditor. The GP retains the authority to engage and dismiss any such auditors.

 

Administrator

 

The GP has engaged the Administrator to perform various administrative services for us. The GP has initially so engaged Phoenix American Services and retains the authority to engage and dismiss any such service provider. Phoenix American Services has been contracted to perform the following functions:

 

	Full
Service Investor Administration – including

	Investor
Relations

	•

	New
Business Processing

	•

	Distributions

	•

	Bank
Account Management

	•

	Redemptions

	•

	Electronic
Document Management

	•

	Account
Summary

	•

	Database
 & File Management

	•

	Commission
Calculation

	•

	Electronic
 & Physical Data Storage

	•

	Tax
Reporting

	•

	Confirmation
Letters

	•

	OFAC
Compliance

	•

	Investor
/ Rep Record Access Through Customized Web Portal

	 

	 

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CERTAIN TAX, ERISA & REGULATORY MATTERS

 

CERTAIN TAX CONSIDERATIONS

 

U.S. Federal Income Tax Matters

 

The following is a summary of certain material United States federal income tax considerations that may be applicable to an investment in the Company. This summary is based on existing provisions of the Code, existing and proposed Treasury regulations promulgated under the Code (“Treasury Regulations”), and current administrative rulings and court decisions, all of which are subject to changes that could be applied retroactively.

 

This summary does not
contain a comprehensive discussion of all U.S. federal income tax consequences that may be relevant to a prospective Investor
in view of that prospective Investor’s particular circumstances or (unless otherwise indicated) to certain prospective
Investors subject to special treatment under U.S. federal income tax laws – such as regulated investment companies,
real estate investment trusts, partnerships or entities treated as partnerships for U.S. federal income tax purposes and
investors therein, S corporations or other pass-through entities, personal holding companies, brokers or dealers in
securities, banks and certain other financial institutions, tax-exempt organizations, persons holding Units as part of a
hedging transaction, straddle, conversion transaction, or other integrated transaction, foreign governments (or certain
entities controlled by foreign governments), Non-U.S. Investors (as defined below), trusts and insurance companies –
nor does it address any state, estate, local, foreign or other tax consequences of an investment in the Company, except as
otherwise provided herein.

 

No ruling has been requested from the IRS or any other U.S. federal, state or local agency with respect to the matters discussed below and the GP has not asked its counsel to render any legal opinions regarding any of the matters discussed below. This summary does not in any way either bind the IRS or the courts or constitute an assurance that the IRS would not assert, or that it would not sustain, a position contrary to any of the U.S. federal income tax consequences discussed herein.

 

On December 22, 2017, President Trump signed into a law a broad-based reform of the Code (such reform, the “Tax Act”). There are significant uncertainties regarding the interpretation and application of the Tax Act. Additional guidance on the Tax Act is expected; however, the timing, form, scope and content of such guidance are not known. The Tax Act is generally effective as of January 1, 2018, but each provision’s effective date may vary, including because certain provisions apply based on a taxpayer’s taxable year which may not be the same as the calendar year. Other than as expressly noted below, this summary does not address the effective dates of the provisions of the Tax Act. Investors, including those whose taxable year differs from the calendar year, should consult their tax advisors regarding the applicability of the Tax Act based on their particular situations.

 

As used herein, the
term “U.S. Investor” means a beneficial owner of Class B Units who or that is, for U.S. federal income tax
purposes, (i) a citizen or resident (within the meaning of Code §7701(b)) of the United States, (ii) a corporation or
other entity treated as such for U.S. federal income tax purposes created or organized in or under the laws of the United
States or of any political subdivision thereof, (iii) an estate the income of which is subject to U.S. federal income
taxation regardless of its source, or (iv) a trust if a U.S. court is able to exercise primary supervision over its
administration, and one or more U.S. trustees or fiduciaries have the authority to control all of its substantial decisions.
A “Non-U.S. Investor” means a beneficial owner of Class B Units who or that is not a U.S. Investor. If a
partnership or entity treated as a partnership for U.S. federal income tax purposes owns Class B Units, the U.S. federal
income tax treatment of a partner or other owner of such entity generally will depend on the status of the partner or other
owner and the activities of the partnership.

 

This summary is based on the assumptions that (i) each Limited Partner (and each of its beneficial owners, as prescribed under U.S. federal income tax withholding and backup withholding rules) will provide all appropriate certifications to the Company in a timely fashion to minimize withholding (or backup withholding) on each Limited Partner’s distributive share of the Company’s gross income and (ii) the Limited Partners will hold their Units as capital assets for U.S. federal income tax purposes.

 

The following summary of certain U.S. federal tax considerations is not intended as a substitute for tax or legal advice. Except where otherwise indicated, this discussion is addressed solely to prospective Investors who are or would be U.S. Investors. Accordingly, prospective Investors should consult with their own tax advisors with regard to the application of the United States federal income tax laws to their particular situations as well as any tax consequences arising under the laws of any state, local or foreign jurisdiction.

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Classification as a Partnership

 

The Company was formed as a Delaware limited partnership, accordingly, pursuant to applicable U.S. Treasury Regulations, the Company will be treated as a partnership, rather than a corporation, for U.S. federal income tax purposes unless the Company affirmatively elects to be treated as a corporation for such purposes. The General Partner has no intention of making such an election on behalf of the Company, and does not anticipate any circumstances under which such an election would be made on behalf of the Company. In certain cases under Code §7704, a partnership that is classified as a PTP, the interests of which are either publicly traded on an established securities market or readily tradable on a secondary market (or the substantial equivalent thereof), may be taxed as a corporation for U.S. federal income tax purposes. Under Treasury Regulation §1.7704-1(d), interests in a partnership are not considered traded on an established securities market or readily tradable on a secondary market unless the partnership participates in the establishment of the market or the inclusion of its interests in a market, or the partnership recognizes any transfers made on the market by redeeming the transferor partner, admitting the transferee as a partner, or otherwise recognizing any rights of the transferee.

 

We will not list any Units on any stock exchange. The Treasury Regulations provide certain safe harbors that, if satisfied, will allow transfers to occur that will not result in the Units being treated as publicly-traded or treated as readily tradable on a secondary market or the substantial equivalent. The safe harbors include transfers:

 

	
 

	
•

	
In “private” transfers;

	
 

	
•

	
Pursuant to a qualified matching service (“QMS”); or

	
 

	
•

	
In limited amounts that satisfy a 2% test.

 

“Private” transfers include, among others:

 

	
 

	
•

	
Transfers in which the basis of the partnership interest in the transferee is determined, in whole or in part, by reference to its basis in the hands of the transferor or is determined under Code §732, related to distributions from a partnership;

	
 

	
•

	
Transfers at death, including transfers from an estate or testamentary trust;

	
 

	
•

	
Transfers between members of a family as defined in Code §267(c)(4);

	
 

	
•

	
Transfers from retirement plans qualified under Code §401(a) or an IRA; and

	
 

	
•

	
“Block transfers.” A block transfer is a transfer by a Limited Partner and any related persons as defined in the Code in one or more transactions during any 30 calendar day period of Units that in the aggregate represents more than 2% of the total interests in partnership capital or profits.

 

Transfers through a QMS are also disregarded in determining whether Units are readily tradable. A matching service is qualified only if it meets extensive conditions and limitations. We do not have any plan to utilize a QMS at this time.

 

In addition, interests are not treated as readily tradable if the sum of the percentage of the interests transferred during the entity’s tax year, excluding private transfers, does not exceed 2% of the total interests in partnership capital or profits. The LPA provides that Limited Partners must receive the consent of the GP prior to any transfer of Units, and one of the conditions to approval is that the transfer will not cause it to be treated as a PTP. Thus, we should not be treated as a PTP.

 

If we are classified as an association taxable as a corporation instead of as a partnership, for any year, we would be subject to U.S. federal income tax on our taxable income at rates applicable to corporations and any applicable state and local taxes; distributions to Limited Partners would be taxable as dividends to the Limited Partners to the extent of our current and accumulated earnings and profits and would not be deductible by us; and our deductions, if any, would be allowed only by the Company, rather than being passed through to Limited Partners.

 

The remainder of this discussion of “Certain Tax, ERISA & Regulatory Matters” assumes that we will be classified as a partnership, and not as a corporation, for U.S. federal income tax purposes. Thus, the following rules applicable to partnerships and their partners will apply to us and our Limited Partners unless otherwise indicated.

 

Taxable U.S. Investors

 

Allocations of Income, Gains, Losses, Deductions & Credits. For U.S. federal income tax purposes, a partnership is not a taxable entity but rather a conduit through which items of income, gain, loss, deduction and credit are passed and its partners must report. Thus, each U.S. Investor will be required to report on its federal income tax return its allocable share of items of income, gain, loss, deduction or credit realized by us. Because portions of our available cash will be used to fund certain expenses and may be used to repay borrowings for which we are liable, such funds may not be available for distribution to U.S. Investors. Consequently, a U.S. Investor may be allocated income from us in a particular year, yet may not receive a cash distribution in respect of such income, and would have to find an alternate source of funds to pay its taxes on such amount. Taxable income or loss allocated to Limited Partners from us will retain the same character, as capital gain or loss, or ordinary income or loss, for the Limited Partners as determined at the Company level. Such income will be capital gain or loss to the extent that it arises from the sale of capital assets.

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Code §704(b) and the Treasury Regulations thereunder provide that a partner’s distributive share of income, gain, loss, deduction or credit will be controlled by the partnership agreement if the allocation provided for in the partnership agreement has “substantial economic effect.” If the allocation provided for in the partnership agreement does not have substantial economic effect, then a partner’s distributive share must be allocated in accordance with each partner’s interest in the partnership, which will be determined by taking into account all the facts and circumstances, such as a partner’s interest in profits and losses, relative share of capital contributed, interest in cash flow and right to distributions upon liquidation.

 

Treasury Regulations promulgated under Code §704(b) provide certain guidelines which, if satisfied by the Company, will result in the allocation of profits and losses being deemed to have substantial economic effect. If the IRS were to contend successfully that the allocation of profits and losses under the terms of the LPA was not in accordance with such guidelines, then each Limited Partner’s share of the income, gain, losses, deductions or credits from us would be determined in accordance with his, her or its interest in the Company, taking into account all the facts and circumstances, including those discussed above.

 

Qualified Business Income. Under current law, and subject to certain restrictions, individuals (or entities treated as individuals), trusts and estates will generally be entitled to deduct 20% of their “qualified business income” for a taxable year. Qualified business income includes, for these purposes, income and gain from certain qualified trades or businesses, but does not include investment-related income such as net capital gain, dividend or interest income. For taxpayers whose income exceeds certain threshold amounts: (i) the deduction is subject to various limitations, including limitations based on the wages paid with respect to, and the adjusted tax basis of property held by, a qualified trade or business, and (ii) the deduction is not available with respect to income from certain service businesses. A portion of a Limited Partner’s allocable share of income or gain from the Company may constitute qualified business income, in which case it generally will be eligible for the deduction described above. There can be no assurance that any portion of a Limited Partner’s allocable share of income or gain from the Company will constitute qualified business income. Prospective investors that are individuals, trusts or estates should consult their tax advisors as to whether they are eligible to deduct a portion of any income allocated to them for U.S. federal income tax purposes by the Company.

 

Tax Basis in a Class B Unit. A U.S. Investor’s tax basis in a Class B Unit initially will equal the amount paid to acquire such Class B Unit. It will be increased by (i) any subsequent cash contributions the U.S. Investor makes to the Company, (ii) the U.S. Investor’s distributive share of our taxable income, (iii) the U.S. Investor’s distributive share of our tax-exempt income, and (iv) any increase in the U.S. Investor’s share of our liabilities. It will be decreased (but not below zero) by (i) actual distributions we make to the U.S. Investor, (ii) the U.S. Investor’s distributive share of our losses (even if such losses are deferred as described below), (iii) the U.S. Investor’s distributive share of our non-deductible expenses that are not properly chargeable to a capital account and (iv) a decrease in the U.S. Investor’s share of our liabilities.

 

Basis & At Risk Limitations on Deductions. U.S. Investors’ ability to deduct their share of deductions and losses will be limited to their adjusted tax basis in their Class B Units, or in the case of a U.S. Investor that is an individual or a corporation (if more than 50% of the value of such corporation’s stock is owned directly or indirectly by five or fewer individuals or certain tax-exempt organizations), to the amount that the U.S. Investor is considered to be “at risk” with respect to our activities, if that is less than the U.S. Investor’s adjusted tax basis. A U.S. Investor must recapture losses deducted in previous years to the extent that our distributions cause the U.S. Investor’s at risk amount to be less than zero at the end of any taxable year. Losses disallowed to a U.S. Investor or recaptured as a result of these limitations will carry forward and will be allowable to the extent that the U.S. Investor’s tax basis or at risk amount (whichever is the limiting factor) is increased above zero.

 

In general, each U.S. Investor will be at risk to the extent of the purchase price of its Class B Units, but this will be less than the U.S. Investor’s tax basis in its Class B Units to the extent of the U.S. Investor’s share of any of our nonrecourse liabilities (other than certain “qualified nonrecourse financing”). A U.S. Investor’s at risk amount will increase or decrease as the adjusted tax basis of the U.S. Investor’s Class B Units increase or decrease except that changes in our nonrecourse liabilities (other than with respect to certain “qualified nonrecourse financing”) will not increase or decrease the U.S. Investor’s at risk amount.

 

Miscellaneous Itemized Deductions. The Company is expected to deemed to be an investor (as opposed to a trader) in securities and other assets. Assuming the Company is deemed to be an investor, the management fee payable by the Company, together with certain other Company expenses, will be treated as miscellaneous itemized deductions of the Company for U.S. federal income tax purposes. Under current law, individual taxpayers and certain trusts or estates are not permitted to deduct expenses that would be treated as miscellaneous itemized deductions. If the Company is deemed to be a trader in securities and other assets, the above limitations generally will not apply.

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Investment Interest Expense Deductions. To the extent that we have interest expense, a non-corporate U.S. Investor may be subject to the “investment interest” limitations of Code §163(d). Investment interest includes interest paid or accrued on indebtedness incurred or continued to purchase or carry property held for investment, and short sale expenses. Investment interest is not deductible in the current taxable year to the extent it exceeds a taxpayer’s “net investment income,” consisting of net gain and ordinary income from investments in the current year. For the purposes of this limitation, net long-term capital gains are generally excluded from the computation of investment income, unless the taxpayer elects to pay tax on such gains at ordinary income tax rates.

 

If or to the extent that the limitation on investment interest applies, a non-corporate U.S. Investor could be denied a deduction for all or part of its distributive share of our interest expenses unless such U.S. Investor had sufficient investment income from all sources, including the Company. In such case, a U.S. Investor that could not deduct such interest expenses currently as a result of the application of this limitation would be entitled to carry such amounts forward to future years, when the same limitation would again apply. The limitations on the deductibility of investment interest would also apply to interest paid by a U.S. Investor on debt incurred to finance its investment in the Company.

 

Passive Activity Losses. The passive activity limitations of Code §469 apply to individuals, trusts, estates, personal service corporations, and certain closely-held C corporations. In general, these rules limit the deductibility of losses from passive activities (which generally include losses attributable to a trade or business carried on as a limited partner) as well as any rental activity or other business activity in which the taxpayer does not materially participate, to the income generated from the taxpayer’s other passive activities. In general, a U.S. Investor may realize passive income or loss from our operations. If a U.S. Investor is subject to these rules, such Investor’s share of passive losses, if any, from our operations may be used to offset such Investor’s net income (and associated tax liability) from other passive activities. Conversely, such Investor may utilize losses, if any, from its other passive activities to offset his or her passive income, if any, from our operations. However, any “excess” passive loss from our operations cannot be utilized to offset the U.S. Investor’s income from other sources, such as “active income” (i.e., wages and active trade or business income) or “portfolio income” (i.e., dividend, interest, royalty and annuity income and gains derived from assets producing portfolio income).

 

If a U.S. Investor’s passive losses exceed its passive income, such excess may not be used to offset such Investor’s other taxable income and must be carried forward to future years to offset passive income recognized in those years under the same rules or upon the disposition in full of such passive interest. Therefore, a U.S. Investor will receive no current tax benefit from our losses to the extent that such Investor has no passive activity income from other sources during that tax year.

 

Portfolio income earned by a taxpayer is treated as non-passive income of the taxpayer and cannot be offset by such taxpayer’s passive losses, if any. Consequently, to the extent that we generate portfolio income, each U.S. Investor will have an increased tax liability regardless of the amount of passive losses, if any, realized by the Company from its operations. Please note that certain income (including dividend and royalty income) generated by the Company may constitute portfolio income to U.S. Investors.

 

The passive activity loss rules are applied after other applicable limitations on deductions such as the tax basis limitation and the at risk rules described above.

 

Limitation on Deductibility of Excess Business Losses. Under current law, individuals (or entities treated as individuals), trusts and estates are not permitted to deduct “excess business losses,” very generally defined to be aggregate deductions with respect to a taxable year attributable to trades or business of the taxpayer that exceed certain threshold amounts. In the case of partnerships, the limitation is applied at the partner level and each partner must take into account its allocable share of partnership income, gain, deductions and losses from trades or businesses of the partnership for purposes of calculating its excess business loss, if any. The limitation on deductibility of excess business losses is applied after the limitation on passive losses described above. The limitations on deductions of “excess business losses” may limit the deductibility of certain of the Company’s losses. Any losses disallowed as a result of this limitation may be carried forward to future years, subject to certain limitations.

 

Treatment of Distributions. In the event cash distributions made to a U.S. Investor by us exceed such Investor’s adjusted tax basis in his, her or its Class B Units, such Investor must recognize gain equal to such excess. Cash distributions in excess of a U.S. Investor’s adjusted tax basis generally will be considered gain from the sale or exchange of an interest in the Company, which gain may be treated, at least in part, as capital gain. See the discussion below under the heading “Disposition of a Class B Unit.” Please note that any reduction in a U.S. Investor’s share of our liabilities will be treated as a cash distribution for federal income tax purposes.

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Exclusion from Income of Certain Qualified Small Business Investments. In general, if we sell or exchange “qualified small business stock” that it has held for more than five years, a non-corporate Limited Partner may be entitled to exclude from taxable income 100% of the gain (or 50% of the gain for “qualified small business stock” acquired after December 31, 2013) from such sale or exchange that we allocate to such Limited Partner. This exclusion will apply to gain allocated to the non-corporate Limited Partner in respect of an interest in the Company that he or she held on the date we acquired the “qualified small business stock” and continuously thereafter through the date of our sale or exchange of the “qualified small business stock.” Any non-excluded gain would be subject to a 28% tax rate. For each non-corporate Limited Partner, the amount of gain eligible for the 100% or 50% exclusion generally is limited to the greater of (i) 10 times the Limited Partner’s proportionate share of our basis in the stock or (ii) a total of $10M with regard to stock in the issuing corporations. For “qualified small business stock,” 28% of the 50% exclusion is treated as a preference item for federal alternative minimum tax purposes. Subject to the limitations described above, qualified gain recognized by an individual Limited Partner who is not subject to the alternative minimum tax would be subject to federal income tax at an effective maximum rate of 14% for “qualified small business stock.”

 

To be treated as small business stock eligible for the above exclusions, stock must have been acquired at original issue from a “qualified small business corporation.” In general, a “qualified small business corporation” is a domestic C corporation that, immediately after issuing the stock in question, has $50M or less in gross assets and satisfies certain other requirements. Because several of these requirements must continue to be satisfied after the issuance of qualified small business stock, it is possible that such stock may cease to so qualify due to events occurring after the issue date. If we should sell qualified small business corporation stock at a gain, a Limited Partner that is not a corporation may be eligible for a tax-free rollover of that gain if we or that Limited Partner makes a new investment in another qualified small business corporation within 60 days of that sale.

 

Disposition of a Class B Unit. Upon the sale of Class B Units, a U.S. Investor will recognize gain or loss equal to the difference between such Investor’s “amount realized” and such Investor’s adjusted tax basis in their Class B Units. A U.S. Investor’s “amount realized” will equal the sum of the cash and fair market value of other property received plus the portion of our nonrecourse liabilities allocated to the Class B Units sold and any Limited Partner recourse liabilities of which the Limited Partner is relieved. If the amount of cash and fair market value of other property received plus the allocable share of our nonrecourse liabilities and Limited Partner recourse liabilities of which the U.S. Investor is relieved exceeds the U.S. Investor’s adjusted basis with respect to the Class B Units disposed of, such U.S. Investor will recognize gain equal to such excess. The tax liability resulting from such gain could exceed the amount of cash received upon the disposition of such Class B Units. To the extent that a portion of the gain upon the sale of Class B Units is attributable to a U.S. Investor’s share of our “inventory items” and “unrealized receivables,” as those terms are defined in Code §751, such portion will be treated as ordinary income. Unrealized receivables include (i) to the extent not previously includable in our income, any rights to pay for services rendered or to be rendered and (ii) amounts that would be subject to recapture as ordinary income if we had sold our assets at their fair market value at the time of the transfer of such Units.

 

Capital gain or loss recognized by an individual U.S. Investor on the sale or exchange of a Unit held for more than 12 months will be long-term capital gain or loss for United States federal income tax purposes. All other gains will be taxed at ordinary income rates. A U.S. Investor’s ability to deduct capital losses may be severely limited.

 

If a U.S. Investor sells or otherwise disposes of a Class B Unit prior to the end of a taxable year in which we have net income, such Investor will be liable for the income taxes due on its proportionate share of the net income attributable to such Unit for that period ending on the date of disposition, even though the Limited Partner may not have received any cash distributions.

 

Pursuant to the Tax
Act, if any portion of the gain realized by a Limited Partner on a sale or disposition (or deemed sale or disposition,
including any deemed disposition resulting from a subsequent closing of the Company) of its interest (or any portion thereof)
in the Company would be treated as effectively connected with the conduct of a U.S. trade or business, the Company may be
required to withhold taxes from future distributions to a transferee Limited Partner in an amount up to ten percent (10%) of
the amount realized by the transferor Limited Partner unless (x) the transferor Limited Partner provides an affidavit of
non-foreign status within the meaning of Section 1446 of the Code in connection with such transfer or (y) the transferee
withholds and remits a sufficient amount from the purchase price. The IRS has not yet provided any additional guidance
regarding the form and content of the affidavit described in clause (x) of the preceding sentence. A U.S. Investor is
expected to be required to provide and certify its correct taxpayer identification number, and to provide other relevant
certifications regarding its identity and U.S. federal income tax characteristics in order to avoid ten percent (10%)
withholding upon the sale, transfer, or other disposition of its interest (or any portion thereof) in the Company, and each
Limited Partner will be required to indemnify the Company for any liabilities arising from any tax liability described
above.

 

Timing of Admission.
Under the Offering, LPs will be joining the Company up until June 30, 2018, unless otherwise dictated by the GP. The Code
provides that if, during a year, there is a change in a partner’s interest in a partnership, each partner’s
distributive share of any item of income, gain, loss, deduction or credit must be determined using any method prescribed by
Treasury Regulations which takes into account the varying interests of the partners during the taxable year.

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In general, the Treasury Regulations under Code §706 permit the interim closing of our books or the use of a proration method. The proration method may be based on either (i) the portion of our taxable year that elapses prior to the change in interest; or (ii) any other reasonable method. An allocation method that would allow a Limited Partner to be allocated losses attributable to the time prior to its admission would likely be considered unreasonable. The LPA allows the GP to use any permissible method under Code §706 and the Treasury Regulations thereunder in allocating tax items for any period, including periods before and after the admission of a new Limited Partner.

 

Each potential Limited Partner should consult its own tax advisor regarding the application of the varying interest rule to the timing of his, her or its potential investment.

 

Additional Reporting Obligations. The Company may engage in transactions or make investments that would subject the Company, its Investors and/or its advisors to special rules requiring such transactions or investments by the Company or investments in the Company to be reported and/or otherwise disclosed to the IRS. A transaction may be subject to reporting or disclosure if it is described in any of several categories of transactions, which include, among others, transactions that result in the incurrence of a loss or losses exceeding certain thresholds. In addition, a Limited Partner may have disclosure obligations with respect to its interest in the Company if the Limited Partner (or the Company in certain cases) participates in a reportable transaction. Significant penalties may apply for failure to comply with these rules. Investors should consult their own tax advisors about their obligation to report or disclose to the IRS information about their investment in the Company and participation in the Company’s income, gain, loss or deduction with respect to transactions or investments subject to these rules. The Company may provide to its advisors identifying information about the Company’s investors and their participation in the Company and the Company’s income, gain, loss or deduction from those transactions or investments, and the Company or its advisors may be required to disclose this information to the IRS.

 

Tax Returns, Elections & Audits. The GP will have the authority to decide how to report our partnership items on our tax returns and all Limited Partners are required under Code §6222 to treat the items consistently on their own returns, unless they file a statement with the IRS disclosing the inconsistency. It is possible that the IRS may not agree with the manner in which our partnership items have been reported. The United States federal information tax returns we file will be subject to audit by the IRS, and an audit of our returns could result in an audit of a U.S. Investor’s own United States federal income tax return. Under new rules for U.S. federal income tax audits of partnerships such as the Company that will apply to taxable years of a partnership beginning on or after January 1, 2018, adjustments to partnership items will generally be determined at the entity-level, and a partnership may be required to pay taxes (and associated interest and penalties and other charges) imposed as a result of such adjustments. In certain cases, a partnership may be able to elect to have the tax and associated amounts collected at the partner level. In the event of an audit, these new rules, and any elections thereunder, may significantly affect the amount and timing of tax (and associated interest and penalties and other charges) that is required to be borne by the Company and the Limited Partners as well as the manner in which such amounts are allocated among the Limited Partners (including former Limited Partners). A Limited Partner may bear more tax under the new rules than he, she or it would have under the former regime. There is substantial uncertainty regarding the interpretation and implementation of these new rules, including in the tiered partnership context, and the Treasury Department is expected to promulgate Treasury regulations or other guidance that will affect their application. Limited Partners should consult their own tax advisers regarding possible implications of these new rules.

 

The Code provides for optional adjustments to the basis of our property upon distributions of our property to a U.S. Investor and transfers of Units (including by reason of death), provided that an election has been made pursuant to Code §754. Under the LPA, the GP, in its discretion, may cause us to make such an election. Any such election, once made, cannot be revoked without the IRS’s consent. Adjustments may be mandatory under certain circumstances and could affect the amount of a U.S. Investor’s distributive share of gain or loss recognized by us on a disposition of our assets. The GP can request from any Limited Partner such information as the GP deems necessary to enable the GP to make such mandatory adjustments for the Company.

 

The GP, in its capacity as the tax matters partner or partnership representative of the Company, has considerable authority to make decisions affecting the tax treatment and procedure rights of all U.S. Investors, including coordination of any tax proceedings and providing any required notices to U.S. Investors. It also has the authority to bind certain U.S. Investors to settlement agreements and to extend the statute of limitations relating to all U.S. Investors’ tax liabilities with respect to our partnership items.

 

We will report our operations on an accrual basis for each calendar year and will file a partnership information income tax return, although we will not be subject to any federal income taxes. See “Classification as a Partnership” above. Subject to the receipt of tax information with respect to entities in which we have invested, we generally will provide to its Limited Partners United States tax information on Schedule K-1 within a reasonable time following the close of our taxable year. If we do not receive on a timely basis all of the underlying tax information from our acquisitions, we will be unable to provide timely final tax information to Limited Partners. Each Limited Partner will be responsible for the preparation and filing of such Limited Partner’s own income tax returns, and such Limited Partners should expect that they may have to file for extensions for the completion of their United States federal, state and / or other income tax returns.

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Surtax on Unearned Income. Code §1411 imposes a 3.8% surtax on the “net investment income” of certain U.S. persons who are citizens and resident aliens, and on the undistributed “net investment income” of certain U.S. estates and trusts. Among other items, “net investment income” generally would include a U.S. Investor’s allocable share of the Company’s net gains and certain other income such as interest and dividends, less deductions allocable to such income. In addition, “net investment income” may include gain from the sale, exchange or other taxable disposition of an interest in the Company, less certain deductions. Prospective investors should consult their own advisors concerning its potential applicability to their individual circumstances.

 

Tax-Exempt U.S. Investors

 

Organizations that are otherwise exempt from United States federal income tax under Code §501 (including ERISA Plans) are subject to tax on their UBTI. UBTI generally is defined as gross income from any unrelated trade or business regularly carried on by a tax-exempt entity less any deductions attributable thereto. An unrelated trade or business consists of any trade or business the conduct of which is not substantially related to the organization’s exempt purpose or function. UBTI generally does not include dividends, interest, royalties or capital gains. UBTI also includes unrelated debt-financed income (“UDFI”). UDFI includes income derived from debt-financed property during the taxable year and may include income derived from a sale or other disposition of debt-financed property if there was acquisition indebtedness outstanding with respect to such property during the twelve-month period ending with the date of sale or other disposition. Acquisition indebtedness generally includes any debt incurred directly or indirectly to purchase such property.

 

If we earn UBTI, a tax-exempt Limited Partner’s allocable share of such income generally would be subject to United States federal income tax. We may generate UBTI if certain of our income is deemed to be derived from a trade or business. In addition, because we expect to use acquisition indebtedness to acquire Dealerships, we may generate UBTI from such activities under the UDFI rules. Finally, if a tax-exempt investor borrows to fund its purchase of Units, some or its entire distributive share of income from the Company could be UBTI under the UDFI rules, which would be taxable to such tax-exempt investor. For taxable years beginning after December 31, 2017, a tax-exempt Limited Partner generally may not use losses or deductions from one unrelated trade or business against income or gains from another unrelated trade or business. Accordingly, in the event that a tax-exempt Limited Partner receives unrelated business taxable losses as a result of its investment in the Company, there can be no assurance that its share of unrelated business taxable losses from one Company investment can be used by it to offset UBTI (if any) from another investment, including another investment made by the Company.

 

The potential for having income characterized as UBTI may have a significant effect on any investment by a tax- exempt entity in the Company. Prospective Investors that are tax-exempt entities should consult their own tax advisors regarding all aspects of UBTI.

 

Non-U.S. Investors

 

This Memorandum does not address the federal, state, local or foreign tax consequences to Non-U.S. Investors. Non-U.S. Investors should consult their own tax advisors.

 

Other Matters

 

Possible Changes in Federal Tax Laws. The statutes and regulations with respect to all of the foregoing tax matters are subject to continual change by Congress or the Treasury Department. Similarly, interpretations of these statutes and regulations may be modified or affected by judicial decision, the IRS or the Treasury Department. Any such change may have an effect on the discussion above.

 

State & Local Taxes. In addition to the federal income tax consequences described above, prospective Limited Partners should consider potential state and local tax consequences of an investment in the Company. State and local laws often differ from U.S. federal income tax laws with respect to the treatment of specific items of income, gain, loss, deduction and credit. We may be subject to state and / or local tax, depending on the location and scope of our activities. In addition, a state in which a Limited Partner is not a resident but in which we may be deemed to be engaged in business may impose a tax and a tax return filing obligation on that Limited Partner with respect to his, her or its share of our income derived from that state. Under some circumstances, a Limited Partner with tax liabilities to more than one state may be entitled to a deduction or credit for taxes paid to one state against the tax liability to another. Prospective Investors should consult their own tax advisors for further information about state and local taxes that may be incurred in connection with an investment in the Company.

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Consultation with Advisors. The summary of federal income tax consequences in this Memorandum is not intended to be a complete summary of the tax consequences of this investment and is not intended as a substitute for careful tax planning. The applicability of the tax laws to Investors will vary from one Investor to another, depending upon each Investor’s tax situation. Accordingly, each prospective Investor is advised to consult with his or her own attorneys, accountants and other personal tax advisors as to the effect on his or her own tax situation of a purchase and ownership of Class B Units and as to the effect of recent, pending and potential changes in the applicable law.

 

CERTAIN ERISA CONSIDERATIONS

 

In considering an investment in the Company of a portion of the assets of a qualified employee benefit plan that is subject to ERISA (an “ERISA Plan”), a fiduciary for such plan, taking into account the facts and circumstances of such qualified plan, should consider, among other things:

 

	
 

	
(1)

	
whether the investment is in accordance with the documents and instruments governing such ERISA Plan;

	
 

	
(2)

	
the definition of plan assets under ERISA;

	
 

	
(3)

	
whether the investment satisfies the diversification requirements of ERISA §404(a)(1)(C);

	
 

	
(4)

	
whether, under ERISA §404(a)(1)(B), the investment is prudent, considering the nature of an investment in and the compensation structure of the Company and the fact that there is not expected to be a trading market created in which the fiduciary can sell or otherwise dispose of the Units;

	
 

	
(5)

	
that the Company has had no history of operations;

	
 

	
(6)

	
whether the Company or any Affiliate is a fiduciary or a party in interest or a disqualified person to the ERISA Plan; and

	
 

	
(7)

	
that an investment in the Company may cause the ERISA Plan to recognize UBTI.

 

The prudence of a particular investment must be determined by the responsible fiduciary (usually the trustee, plan administrator, or investment manager) with respect to each qualified plan, taking into account all of the facts and circumstances of the investment.

 

ERISA provides that Units may not be purchased by an ERISA Plan subject to ERISA if the Company is a “fiduciary” or “party in interest” (as defined in ERISA §§3(21) and 3(14)) to the plan unless such purchase is exempt from the prohibited transaction provisions of ERISA §406. Under ERISA, it is the responsibility of the fiduciary responsible for purchasing the Units not to engage in a non-exempt prohibited transaction.

 

Code §4975 has similar prohibited transaction restrictions applicable to transactions between disqualified persons and ERISA Plan or IRAs. If a prohibited transaction occurs, the fiduciary who caused the transaction to occur and the party in interest (or disqualified person) involved in the transaction could be liable for excise taxes, damages and other penalties. In the case of an individual retirement account that engages in a prohibited transaction involving the IRA owner or a related party, the IRA could be disqualified and the entire value of the IRA could be taxable to the IRA owner.

 

The DOL has promulgated regulations (“DOL Regulations”), 29 C.F.R. Section 2510.3-101 (as modified or deemed to be modified by ERISA §3(42)), that define what constitutes “Plan Assets” in a situation in which a qualified plan invests in a limited partnership or other entity. If assets of the Company are classified as Plan Assets, the significant penalties discussed above could be imposed under certain circumstances.

 

Under the DOL Regulations, if an ERISA Plan invests in an equity interest of an entity that is neither a publicly offered security nor a security issued by an “investment company” registered under the 1940 Act, its assets include both the equity interest and an undivided interest in each of the underlying assets of the entity (i.e., the entity will be deemed to hold Plan Assets), unless it is established that either (i) the entity is an “operating company” or (ii) the entity satisfies the “less-than-25% exception” described below.

 

Since the Units will not qualify as publicly-offered securities and will not be issued by an “investment company” registered under the 1940 Act, our assets will avoid being classified as Plan Assets only if either (i) we are an “operating company” or (ii) we qualify for the less-than-25% exception.

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The term “operating company” is defined in the DOL Regulations as an entity that is primarily engaged, either directly or through one or more majority-owned subsidiaries, in the production or sale of a product or service other than the investment of capital. The term “operating company” also includes an entity that is a “venture capital operating company” (a “VCOC”) as defined in the DOL Regulations. Under the DOL Regulations, an entity is a VCOC if at least 50% of its assets, valued at cost, are invested in “venture capital investments.” A “venture capital investment” is an investment in an operating company (other than a VCOC) as to which the investor has or obtains management rights. In addition, to qualify as a VCOC the entity must exercise certain management rights with respect to at least one of its venture capital investments at least annually in the ordinary course of business. For purposes of meeting the requirements, the term “management rights” means contractual rights directly between the investor and an operating company to substantially participate in, or substantially influence the conduct of, the management of the operating company. Determining what management rights will work to satisfy the regulation is a factual question and will depend on the specific circumstances of each investment. The DOL has provided some clarity as to what will qualify as sufficient management rights. Specifically, the DOL has described management rights by example, indicating that the right to appoint a director would qualify as management rights sufficient to satisfy the definition in the regulation. Other management rights, such as the right to consult with and advise the management of the operating company, the right to inspect the operating company’s properties and the right to receive financial information, may, together with other rights, constitute “management rights” for this purpose.

 

The GP intends to operate the Company so that it will satisfy the definition of a VCOC. However, because this determination involves questions of fact regarding future activities, complete assurance on this issue cannot be provided. If we are classified as a VCOC, we should not be treated as holding the Plan Assets.

 

If we do not qualify
as a VCOC under DOL Regulations, we will nevertheless avoid being treated as holding Plan Assets if we qualify for the
less-than-25% exception. An entity will qualify for that exception if, immediately after the most recent acquisition of any
equity interest in the entity, “benefit plan investors” hold less than 25% of the total value of each class of
interest in the entity. Under the DOL Regulations, “benefit plan investors” are defined as (i) qualified
employee benefit plans subject to ERISA, (ii) IRAs and similar plans and accounts that are subject to Code §4975, and
(iii) entities or accounts that are deemed to hold the Plan Assets of such plans or accounts. For purposes of the 25%
calculation, interests in the Company held by the GP or any of its affiliates (other than benefit plans) will be disregarded.
We have and intend to continue to sell Units to benefit plan investors, including IRAs, and cannot provide any assurance that
equity participation in the Company by benefit plan investors will not equal or exceed 25%.

 

If we are deemed to hold Plan Assets, additional issues relating to the Plan Assets and “prohibited transaction” concepts of ERISA and the Code may arise. Anyone with discretionary authority with respect to our assets could become a “fiduciary” of the ERISA Plan investors within the meaning of ERISA. As a fiduciary, such person would be required to meet the terms of the qualified plan regarding asset investment and would be subject to prudent investment and diversification standards. In addition, if we are deemed to hold Plan Assets, investment in the Company by an ERISA Plan might constitute an improper delegation of fiduciary responsibility to the GP and expose the fiduciary of a qualified plan investor to co-fiduciary liability under ERISA for any breach by the GP of its ERISA fiduciary duties. Finally, we could be found to have engaged in a non-exempt “prohibited transaction,” with the consequences described above.

 

Fiduciaries of plans subject to ERISA are required to determine annually the fair market value of the assets of such plans as of the close of the plan’s fiscal year. Also, IRA custodians are required to report the value of the assets in an IRA annually. Although the GP will provide annually an estimate of the value of the Units based upon, among other things, the book value of the Company, it may not be possible to precisely value the Units from year to year, because there will be no market for them. Accordingly, there can be no assurance that the valuation information provided will satisfy the annual valuation requirements applicable to ERISA Plans and to IRAs.

 

Benefit plan investors may be required to report certain compensation paid by the Company to the Company’s service providers as “reportable indirect compensation” on schedule C to the Form 5500 Annual Return (the “Form 5500”). To the extent any compensation arrangements described herein constitute reportable indirect compensation, any such descriptions are intended to satisfy the disclosure requirements for the alternative reporting option for “eligible indirect compensation,” as defined for purposes of Schedule C to Form 5500.

 

The DOL has promulgated
a final regulation (the “ERISA Investment Advice Regulation”), which re-defines the circumstances under
which a person will be considered a fiduciary for purposes of ERISA and Section 4975 of the Code by virtue of providing
investment advice to a benefit plan subject to ERISA or a plan subject to Section 4975 of the Code (a “Covered
Plan”). Under the ERISA Investment Advice Regulation, a person who makes a “recommendation” regarding
the acquisition, holding or disposition of any securities or investment property or the management of securities or
investment property and receives direct or indirect fees or other compensation as a result of dealing with a Covered Plan,
plan participant or beneficiary, plan fiduciary or IRA owner, is generally considered a fiduciary unless an exemption
applies. One such exemption is for advice rendered to certain independent fiduciaries with financial expertise, including
certain banks, insurance carriers, investment advisers, broker-dealers and independent fiduciaries (excluding IRA owners)
that hold, or have under management or control, total assets of at least $50M. The General Partner and its respective
affiliates (the “GP Parties”) do not intend to act as fiduciaries under the ERISA Investment Advice
Regulation with respect to any Covered Plan’s decision to invest in the Company and no information or communication
from any Management Party (either alone or in conjunction with any other information of communication) should be construed as
a recommendation within the meaning of the ERISA Investment Advice Regulation. Notwithstanding this intention, any and all
information provided herein (or provided by any GP Party prior to or subsequent to the delivery of this Memorandum, including
following the closing of any investment in the Company by a Covered Plan) to any Covered Plan or any Covered Plan fiduciary
that is determined to constitute “investment advice,” or a “recommendation,” within the meaning of
the ERISA Investment Advice Regulation is provided solely on the basis that the recipient is, or is represented by, an
independent fiduciary that satisfies the criteria set forth in 29 C.F.R. § 2510.3-21(c)(1). The information provided
herein is intended to be used solely by the recipient in considering the investment opportunity described herein and may not
be used for any other reason, personal or otherwise. The scope and applicability of the ERISA Investment Advice Regulation
and related exemptions may change further; Covered Plan fiduciaries are advised to keep themselves informed.

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Plans sponsored by state and local governments, foreign plans and certain church plans generally are not subject to ERISA. However, such plans may be subject to other laws or regulations that are similar to ERISA (“Similar Laws”). Advisors to such plans should take into account the requirements of such Similar Laws.

 

ERISA and its accompanying regulations are complex and, to a great extent, have not been interpreted by the Courts or the administrative agencies. This discussion does not purport to constitute a thorough analysis of ERISA.

 

Prospective Investors that are subject to the provisions of ERISA, Code §4975 or Similar Laws are urged to consult their own advisors with specific reference to their own situations and the application of ERISA, the Code, or Similar Laws to an investment in the Company.

 

INVESTOR QUALIFICATION

 

AN INVESTMENT IN THE CLASS B UNITS IS SUITABLE ONLY FOR INVESTORS OF SUBSTANTIAL FINANCIAL MEANS WHO HAVE NO NEED FOR LIQUIDITY IN THIS INVESTMENT.

 

The Units have not been and will not be registered under the 1933 Act (irrespective of whether the Units are ever registered under the 1934 Act), or any state or other securities laws, and will be offered and sold for investment only to qualifying recipients of this Memorandum under the exemption from the registration requirements of the 1933 Act provided by Regulation D promulgated thereunder and in compliance with any applicable state or other securities laws.

 

In order to be eligible to invest in the Company (an “Eligible Investor”), Investors must certify in the Subscription Agreement that they qualify as an Accredited Investor and are purchasing for their own account or one or more accounts with respect to which they exercise sole investment discretion.

 

Accordingly, offers and sales of Units will be made only to prospective Investors who satisfy, among other things, the following eligibility requirements:

 

	
 

	
1.

	
On the basis of its financial situation and needs, the Investor must confirm and represent that it has the ability to bear the economic risks of the investment in the Company, including the risk of loss of the Investor’s entire investment;

	
 

	
2.

	
The Investor must confirm and represent that the Investor, either alone or with its personal representative(s), is sophisticated and has sufficient knowledge and experience in financial, business and investment matters so that it is or they are capable of evaluating the merits and risks of the prospective investment;

	
 

	
3.

	
The Investor must confirm and represent that the Units are being acquired for investment purposes and not with a view to distribution or resale;

	
 

	
4.

	
The Investor must confirm and represent that the Investor is an Accredited Investor;

	
 

	
5.

	
The Investor must confirm its identity and the identity of its beneficial owners (if applicable) in a manner sufficient to ensure compliance by the Company and the GP with the Patriot Act; and

	
 

	
6.

	
The Investor must make certain other representations to us including representations as to the information described in items 1 - 5 above, as well as to the Investor’s access to information concerning the Company and the Investor’s ability to bear the economic risk of the investment and net worth.

 

The GP reserves the right to reject subscriptions, in whole or in part, in its discretion. Each purchaser will be required to represent that such purchaser’s overall commitment to investments which are not readily marketable is not disproportionate to such purchaser’s net worth, and that such purchaser’s acquisition of Units will not cause such overall commitment to become excessive; that such purchaser can sustain a complete loss of such purchaser’s investment in the Units and has no need for liquidity in such purchaser’s investment in the Units; and that such purchaser has evaluated the risks of investing in the Units.

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LPs may not be able to liquidate their investment in the event of an emergency or for any other reason because there is not now any public market for the Units and none is expected to develop. We will establish and maintain on our books a Capital Account for each LP, into which its Capital Contribution(s) will be credited and in which certain other transactions will be reflected.

 

The GP will maintain a list of the LPs, which is available for an inspection by a requesting LP who is not a FINRA- registered representative. Such inspection by a Limited Partner will be available so long as it comports with state and federal disclosure and confidentiality rules. The GP may, without the consent of the existing LPs, admit new LPs. The GP may reject a subscription for a Unit for any reason in its sole and absolute discretion. If a subscription is rejected, the payment remitted by the Investor will be returned without interest.

 

EACH PROSPECTIVE INVESTOR SHOULD CONSIDER WHETHER THE PURCHASE OF THE UNITS IS SUITABLE FOR HIM OR HER IN LIGHT OF HIS OR HER INDIVIDUAL INVESTMENT OBJECTIVES.

 

Accredited Investor

 

To be eligible to subscribe for Units, each Investor who is in the United States or who is a U.S. Person must meet one of the definitions of Accredited Investor provided in Rule 501(a) of Regulation D and as described in the Subscription Documents.

 

The definition of “Accredited Investor” provided in Rule 501(a) includes, among others:

 

	
 

	
(a)

	
a natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000 (provided that for this purpose, (i) “net worth” means the excess of total assets at fair market value, including home furnishings and automobiles, over total liabilities; (ii) the Investor may not count the value of his / her primary residence in net worth, and if the amount of debt on the Investor’s primary residence exceeds its value, the Investor must count the excess against net worth; and (iii) the Investor does not need to count as a liability debt secured by the Investor’s primary residence up to the value of the residence, unless the amount of such debt exceeds the amount that was outstanding 60 days prior, other than debt resulting from the acquisition of the primary residence);

	
 

	
(b)

	
a natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;

	
 

	
(c)

	
any corporation, partnership, limited liability company or business trust not formed for the specific purpose of acquiring the Units with total assets exceeding $5,000,000;

	
 

	
(d)

	
any trust, with total assets in excess of $5,000,000 not formed for the specific purpose of acquiring the Units, whose purchase is directed by a sophisticated person;

	
 

	
(e)

	
an entity in which all of the equity owners are Accredited Investors;

	
 

	
(f)

	
any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees with total assets in excess of $5,000,000;

	
 

	
(g)

	
any employee benefit plan within the meaning of ERISA, if the investment decision is made by a plan fiduciary, as defined in ERISA §3(21), which is either a bank, savings and loan association, insurance company or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are Accredited Investors; and

	
 

	
(h)

	
an IRA as defined in Code §408(a) owned by and for the benefit of an Accredited Investor.

 

PLAN OF PRIVATE PLACEMENT

 

Description of the Offering

 

We intend to offer $750,000,000 of Units. We presently intend to conduct the Offering and receive subscriptions for Units on an ongoing basis until the earlier of (i) the date the GP determines, in its discretion, to discontinue the Offering, or (ii) the date we have received subscriptions for $750,000,000 of Units. In any event, the Offering will terminate no later than the close of business on June 30, 2018.

 

The minimum initial Capital Contribution is $50,000, subject to reduction or waiver at the GP’s sole discretion. Units must be purchased for cash at time of subscription, though the GP may accept subscriptions under which a portion of the offering price is not paid in full upon execution and delivery of the Subscription Agreement. The GP, or  one or more of its affiliates, may invest as LPs in the Company. All subscriptions tendered by investors are subject to acceptance by the GP, and we reserve the right to reject or reduce any subscription for any reason prior to acceptance. Subscriptions rejected by us will be returned to the subscriber without interest. Except as otherwise permitted by the GP, in its sole discretion, Units may be purchased as of the first business day of any calendar month.

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Conduct of the Offering

 

The Units are being offered on a “best efforts” basis, which means generally that broker-dealers will be required to use only their best efforts to sell the Units and have no commitment or obligation to purchase any of the Units.

 

We may agree to indemnify members of the Selling Group against certain liabilities, including liabilities under federal and state securities laws, or to contribute to payments that they may be required to make in respect of those liabilities.

 

The Offering is made only by means of this Memorandum. No certificates will be issued for Units. Investors will, however, receive written confirmation of their investment in the Company.

 

How to Subscribe

 

To purchase Units, a new subscriber must (i) review this Memorandum and the LPA (ii) complete, execute and deliver to us the Subscription Documents and (iii) arrange for payment of the amount of the subscription in accordance with the instructions in the Subscription Documents. We may subsequently also request IRS Form W- 9 and / or the Investor’s Taxpayer Identification Number. Prospective Investors whose subscriptions have been accepted by the GP will be notified of their acceptance into the Company. Generally, existing Limited Partners subscribing for additional Units need only update information in the Subscription Documents that may have changed. The GP reserves the right to accept or reject, in its sole discretion, subscriptions in whole or in part, and to close the subscription books at any time without notice.

 

By subscribing for Units, you confirm that you meet the suitability standards for purchasers of Units and agree to be bound by all of the terms of the Subscription Agreement attached as a part of the Subscription Documents and the LPA. The Subscription Agreement contains, among other things, representations and warranties of the subscribing LPs.

 

We generally must receive Subscription Documents and cleared funds in payment therefore prior to the applicable Monthly Closing Date. Subscription funds must generally be credited to our account at least three business days prior to the requested Monthly Closing Date in order for a subscription to be accepted (except as otherwise determined by the GP in its discretion).

 

All subscriptions that are accepted by the GP will be credited to us only on the first business day of each calendar month (except as otherwise provided by the GP in its discretion). Subscriptions for cash that are received but not credited to us will be deposited in an interest-bearing account selected by the GP.

 

RESTRICTIONS ON TRANSFER OF UNITS

 

An Investor’s rights to sell or transfer Units are limited—both under the LPA and under the Code. There is no public market in which you may sell your Units and we do not expect a public market to develop in the future. You may sell or transfer your Units only using a form approved by us and must obey all relevant laws if you are permitted to transfer Units. Any person who buys Units from a Limited Partner must meet the investor suitability requirements imposed by us and applicable law.

 

No transfer of a Unit made under the foregoing will relieve the LP of any obligation that has accrued or was incurred before the transfer. A transferee of a Unit or a person who has become entitled to a Unit by operation of law but has not complied with the transfer provisions referred to above has no right to access or to be provided with any information with respect to our affairs and has only the rights accorded to such transferees under applicable Delaware law. A transfer of a Unit will be deemed to take effect on the date that the GP records such transfer, which will typically be recorded on a monthly basis.

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The GP (or any affiliate thereof) may buy Units for their account or facilitate transfers of Units between LPs and others. Any transfer facilitated by the GP (or any affiliate thereof) will be subject to the foregoing restrictions on transfer to the same extent as if the GP (or any affiliate thereof) had not been involved.

 

LPA Transfer Restrictions

 

All transfers of Units must receive the GP’s written consent, which may be granted or withheld at the GP’s sole discretion, and must comply with the LPA. In no event may Units be transferred unless all of the following conditions are satisfied or waived by the GP:

 

	
 

	
(i)

	
the transferor or transferee has delivered to the GP an opinion of counsel reasonably acceptable to the GP that the transfer would not (a) require registration under the 1933 Act or any state securities laws, or (b) adversely affect the status of the Company as a partnership for federal income tax purposes or cause us to become a PTP;

	
 

	
(ii)

	
any required third-party consent or approval to the transfer has been obtained or waived, including the consent of any lender providing financing to us to the extent required;

	
 

	
(iii)

	
the GP is satisfied that the transfer, when considered in the aggregate with all other transfers of Class B Units within the preceding 12-month period, would not result in the Company being considered to have terminated within the meaning of Code §708;

	
 

	
(iv)

	
the GP has received an agreement in form and substance satisfactory to it that the transferee agrees to be bound by the terms and conditions of the LPA and making such representations and warranties as the GP determines to be advisable and in our best interest;

	
 

	
(v)

	
the transferor or transferee bears all costs and expenses of the transfer and the transferor’s admission to the Company, including our actual and reasonable legal fees; and

	
 

	
(vi)

	
the transferor and the transferee execute, acknowledge and deliver to us such other certificates, instruments and documents as the GP deems reasonably necessary, appropriate or desirable to effect the transfer or the transferee’s admission to the Company.

 

Code Transfer Restrictions

 

As discussed above under “Certain Tax, ERISA & Regulatory Matters—Certain Tax Considerations—Classification as a Partnership,” the Company is organized as a Delaware limited partnership and as such, the Code limits the number of Units which may be transferred in any Fiscal Year generally to 2.0% of our outstanding Units. If more than 2.0% of our Units are transferred in a Fiscal Year, we could be treated as a PTP under the Code and would be accordingly taxed as a corporation. The Code does provide that certain transfers are not included in the 2% limitation, such as:

 

	
 

	
•

	
Transfers in which the basis of the Units in the transferee is determined, in whole or in part, by reference to its basis in the hands of the transferor or is determined under Code §732;

	
 

	
•

	
Transfers at death, including transfers from an estate or testamentary trust;

	
 

	
•

	
Transfers between members of a family as defined in Code §267(c)(4);

	
 

	
•

	
Transfers from retirement plans qualified under Code §401(a) or an IRA; and

	
 

	
•

	
“Block transfers.” A block transfer is a transfer by a Limited Partner and any related persons as defined in the Code in one or more transactions during any 30 calendar day period of Units that in the aggregate represents more than 2% of the Units.

 

Transfers through a QMS are also disregarded in determining whether Units are readily tradable. A matching service is qualified only if it meets extensive conditions and limitations, and we do not have any plan to utilize a QMS at this time.

 

The foregoing list does not provide all of the exceptions to the PTP limitations. See “Certain Tax, ERISA & Regulatory Matters—Certain Tax Considerations—Classification as a Partnership” above.

 

USA PATRIOT ACT COMPLIANCE

 

The Patriot Act requires that some financial institutions implement policies and procedures (“AML Programs”) designed to guard against and identify money laundering activities. Under our own AML Program, we confirm the identity of each Investor to the extent reasonable and practicable, including the principal beneficial owners of an Investor, if applicable. New Investors, and additional capital from existing Investors, can be accepted only after the GP has confirmed the identity of the Investor and the principal beneficial owners of the Investor, if applicable, unless the GP concludes that it can rely on the diligence of a third party with respect to such Investor.

    67 | P a g e

     

    

Depending on the circumstances of each proposed subscription, a detailed verification may not be required if (i) the Investor is a recognized financial institution; or (ii) the Investor makes the payment from an account held in the Investor’s name at a recognized financial institution. These exceptions will only apply if the financial institution referred to above is within a country recognized as having sufficient anti-money laundering regulations, such as a member state of the European Union that is subject to the EC Money Laundering Directive or one of the countries that make up the Financial Action Task Force (“FATF”) and that is subject to the FATF recommendations.

 

If required to verify its identity, an individual may be required to produce a copy of a passport or identification card certified by a notary public. Corporate entities may be required to produce a certified copy of the certificate of incorporation (and change of name), memorandum and articles of association (or equivalent), and the names, occupations, dates of birth, and residential and business addresses of all directors and / or beneficial holders of the applicant’s securities.

 

The GP reserves the right to request such additional information as is necessary to verify the identity of any person attempting to subscribe to the Company. Pending the provision of evidence satisfactory to the GP as to identity, the closing of a sale of Units to such person may be delayed at the absolute discretion of the GP. If within a reasonable period of time following a request for verification of identity, the GP has not received evidence satisfactory to in its sole discretion, it may refuse to accept the proposed subscription, in which event all subscription monies will be returned without interest to the account from which such monies were originally deposited. Subscription monies also may be rejected by the GP if the remitting bank or financial institution is unknown to the GP.

 

We may undertake enhanced due diligence procedures prior to accepting Investors the GP believes present high risk factors with respect to money laundering activities. Examples of persons posing high risk factors are persons resident in or organized under the laws of a “non-cooperative jurisdiction” or other jurisdictions designated by the Department of the Treasury as warranting special measures due to money laundering concerns, and any person whose Capital Contributions originate from or are routed through certain banking entities organized or chartered in a non-cooperative jurisdiction.

 

In addition, we will not accept subscriptions from or on behalf of:

 

	
 

	
•

	
persons on the List of Specially Designated Nationals and Blocked Persons maintained by the U.S. Office of Foreign Asset Control;

	
 

	
•

	
the Annex to Executive Order 13224;

	
 

	
•

	
such other lists as may be promulgated by law or regulation; and

	
 

	
•

	
foreign banks unregulated in the jurisdiction they are domiciled in or which have no physical presence.

 

We may be required to undertake additional actions to guard against and identify money laundering activities, when final regulations under the Patriot Act are adopted by the Department of the Treasury. The requirements for the GP to guard against and identify money laundering activities in deciding whether to accept subscriptions are in addition to the discretion that the GP has in deciding whether to accept subscriptions.

 

1940 Act Regulation

 

The Company is not registered and does not intend to register as an investment company under the 1940 Act, and, accordingly, investors in the Company are not accorded the protections of the 1940 Act (which, among other matters, requires most registered investment companies to have a majority of disinterested directors, requires securities held in custody at all times to be segregated and marked to clearly identify the owner of such securities, and regulates the relationship between the investment adviser and the investment company).

 

Our intention to not operate as an investment company will limit our operations in certain ways. For example, since we are not an investment company we may determine to not acquire or dispose of an asset that we would acquire or dispose if we were an investment company, or we may make an acquisition or disposition at a different time, under different circumstances, or in a different manner than would an investment company. If a court or the SEC or its staff provides additional precedent or guidance bearing upon our activities and intention to not operate as an investment company, we may be required to adjust our business strategy accordingly. Any additional legal precedent, including guidance from the SEC or its staff, could provide additional flexibility to us, or it could further inhibit our ability to pursue the business strategies we have chosen.

 

Any regulatory or other developments that could subject us to regulation as an investment company could require us to restructure our business operations, sell certain of our assets or abstain from the purchase of certain assets, which could have an adverse effect on our financial condition and results of operations. Registration under the 1940 Act would require us to comply with a variety of substantive requirements that impose, among other things, limitations on capital structure, restrictions on specified investments; restrictions on borrowings and other leverage and prohibitions on transactions with affiliates.

    68 | P a g e

     

    

If the SEC or a court of competent jurisdiction were to find that the we are required to have, but in violation of the 1940 Act had failed to, register as an investment company, possible consequences include, but are not limited to, the following: (i) the SEC could apply to a U.S. district court to enjoin the violation; (ii) we could be subject to lawsuits to recover any damages caused by the violation; and (iii) any contract to which we are a party that is made in, or whose performance involves, a violation of the 1940 Act would be unenforceable by any party to the contract unless a court were to find that under the circumstances enforcement would produce a more equitable result than non- enforcement and would not be inconsistent with the purposes of the 1940 Act. Should we be subjected to any or all of the foregoing, our business would be materially and adversely affected.

 

Advisers Act Regulation

 

GPB is registered as an investment adviser under the Advisers Act. You are encouraged to review GPB’s Brochure, which is attached to this Memorandum as Exhibit B, to familiarize yourself with GPB’s business and its practices.

 

Federal Securities Law Regulation

 

We are offering Units to prospective investors in reliance upon an exemption from the registration requirements of the 1933 Act provided in Section 4(a)(2) and Rule 506 promulgated thereunder. As a result, in order to be able to rely on such exemption, we will be obtaining from each prospective Investor certain representations in connection with a subscription for the Units, including that such prospective Investor is acquiring such Units for investment and not with a view to resale or distribution and that it is an Accredited Investor. Further, each Investor must be prepared to bear the economic risk of the investment for an indefinite period, because the Units can be resold only pursuant to an offering registered under the 1933 Act or an exemption from such registration requirement. It is unlikely that the Units will ever be registered under the 1933 Act (irrespective of whether the Units are registered under the 1934 Act).

 

ADDITIONAL INFORMATION

 

This Memorandum contains references to or summaries of certain provisions of the LPA, the Subscription Documents and certain other documents. All such summaries are qualified in their entirety by reference to said documents, copies of which are included or will be made available (subject to certain limitations and requirements) by GPB upon request, and reference is made to such documents for complete information concerning the rights and obligations of the parties thereto. Those agreements and the various other documents referred to in this Memorandum or included in the appendices are subject to further negotiation or changes. Such negotiations and changes will not, however, result in changes that, in the aggregate, are materially adverse to the Limited Partners.

 

GPB has sponsored several other funds since its inception to date. Certain of these other funds have and may in the future experience adverse developments, which may cause certain investments to perform below expectations. In November 2015, GPB Holdings, LP (“Holdings I”), a GPB sponsored entity with a similar strategy as the Company, purchased a $5,000,000 senior-secured note issued by Insightra Medical Inc. (“Insightra”). In June 2016, Insightra defaulted on its debt, and as a result, Holdings I negotiated a pre-packaged Chapter 11 reorganization process with Insightra emerging from bankruptcy in April 2017, and Holdings I as the sole equity owner and sole senior secured lender. At September 30, 2017 Holdings I’s total investment in Insightra was valued at $3.3M compared to an aggregate cost basis of $6.0M.

 

On July 3, 2017, GPB, the Company, Holdings I and certain other related parties (together, the “GPB Plaintiffs”) filed suit in New York State Supreme Court (Nassau County) against Patrick Dibre (the “Defendant”), one of their former operating partners, for breach of contract and additional claims arising out of the Defendant’s sale of certain automobile dealerships to the GPB Plaintiffs. Following the Court’s decision on Defendant’s motion to dismiss, the GPB Plaintiffs filed an amended complaint on February 12, 2018. The GPB Plaintiffs seek to compel the Defendant to comply with the terms of an agreement executed between the parties in November 2016 (the “Master Agreement”), and other related agreements. The GPB Plaintiffs contend that the Defendant breached his fiduciary duties and breached the Master Agreement by, among other things, (1) failing to use his reasonable best efforts to complete four agreed-upon dealership buy-sell transactions, (2) failing to comply with the terms of the Master Agreement, which, among other things, require the Defendant to make dealership earnings payments to the Company and Holdings I, and (3) committing other wrongful conduct which caused the GPB Plaintiffs to suffer damages. The GPB Plaintiffs seek compensatory damages, as well as specific performance and other relief.

    69 | P a g e

     

    

In March 2018, the Defendant answered the GPB Plaintiffs’ amended complaint, denying the GPB Plaintiffs’ allegations, and raising certain counterclaims that the GPB Plaintiffs breached the Master Agreement by failing to make payments due to him under the terms of the Master Agreement. The Defendant’s answer makes additional assertions, alleging (1) inaccuracies in the GPB Plaintiffs’ financial reporting on certain dealerships in which Holdings I and the Company held an interest and certain financial statements for Holdings I and the Company and (2) that certain compensation was improperly paid by dealerships to GPB affiliates and the GPB Plaintiffs failed to make adequate disclosures surrounding such compensation. The GPB Plaintiffs filed a response to the Defendant’s answer denying all counterclaims. The GPB Plaintiffs are currently in the process of reviewing certain assertions made by the Defendant and GPB is confident in the GPB Plaintiffs’ position and intends to vigorously prosecute the GPB Plaintiffs’ claims.

 

GPB believes that the compensation paid to GPB affiliates for services provided was properly disclosed in the offering memoranda. Regardless, in 2016, GPB decided to cease payments of such compensation to its C-Level Personnel in all of its funds. In order to bring historical practice in line with present practice, a current assessment of such compensation received by certain GPB affiliates in Holdings I and the Company has been reimbursed to Holdings I and the Company through a combination of waivers of uncollected management fees and cash. GPB is in the process of evaluating the precise amount and allocation of such reimbursement.

 

We do not anticipate distributing revised drafts of documents to subscribers for Units prior to the time such subscribers are admitted to a Company as LPs. However, prospective LPs and their authorized representatives are invited to review any such materials from time to time at our offices or to make inquiry of GPB with respect thereto. Information contained herein has been obtained from sources deemed reliable. Such information necessarily incorporates significant assumptions as well as factual matters.

 

During the course of the Offering, each prospective Investor is invited to examine documents relating to this investment and to ask questions of and obtain additional information from GPB concerning the terms and conditions of the Offering or any other relevant matters (including additional information necessary to verify the accuracy of the information herein) to the extent GPB possesses such information or can acquire it without unreasonable effort or expense.

 

PRIVACY NOTICE

 

We do not disclose nonpublic personal information about you or former Investors to third parties other than as follows. We collect information about you (such as name, address, social security number, assets and income) from our discussions with you, from documents that you may deliver to us (such as Subscription Documents) and in the course of providing services to you. In order to service your account and effect your transactions, we may provide your personal information to our affiliates and to firms that assist us in servicing your account and have a need for such information, such as GPB, other advisors, financial services provider, accountants or auditors. We do not otherwise provide information about you to outside firms, organizations or individuals except as required or permitted by law. Any party that receives this information will use it only for the services required and as allowed by applicable law or regulation, and is not permitted to share or use this information for any other purpose.

 

AVAILABILITY OF PRINCIPAL DOCUMENTS

 

We will provide to each prospective Investor and such Investor’s representatives and advisors, if any, copies of the LPA, Subscription Documents and the opportunity to ask questions and receive answers concerning the terms and conditions of this Offering and obtain any additional information which we may possess or obtain without unreasonable effort or expense that is necessary to verify that accuracy of the information furnished to such prospective Investor. Any such questions should be addressed to us at the address indicated below. No other persons have been authorized to give information or to make any representations concerning this Offering, and if given or made, such other information or representations must not be relied upon as having been authorized by us. For additional information regarding the Company, interested investors should contact:

 

GPB Automotive Portfolio, LP

 

c/o: GPB Capital Holdings, LLC 
1581 Franklin Avenue 
Garden City, NY 11501

Telephone: (877) 489-8484

Facsimile: (516) 487-0166

    70 | P a g eExhibit 10.1

 

Execution Version

	 

 

Published CUSIP Number(s):                           

 

AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of October 4, 2017 

 

among

 

GPB PRIME HOLDINGS, LLC,

as GPB Prime,

 

AUTOMILE PARENT HOLDINGS, LLC,

as Parent Holdings Guarantor,

 

AUTOMILE TY HOLDINGS, LLC,

as [*****] Holdings,

 

AUTOMILE HOLDINGS, LLC,

as a Borrower

 

AMR REAL ESTATE HOLDINGS, LLC,

as a Borrower

 

CERTAIN OF THEIR SUBSIDIARIES PARTIES HERETO,

as Borrowers, 

 

and

 

MANUFACTURERS AND TRADERS TRUST COMPANY,

as Administrative Agent, 

 

and

 

MANUFACTURERS AND TRADERS TRUST COMPANY,

 

AND THE OTHER LENDERS PARTY HERETO,

as Lenders

 

 

 

MANUFACTURERS AND TRADERS TRUST COMPANY,

as Lead Arranger and Sole Bookrunner, 

 

and

 

SUNTRUST ROBINSON HUMPHREY, INC.,

as Co- Lead Arranger

	 

 

 

 

	TABLE OF CONTENTS

 

	ARTICLE
I AMENDMENT AND RESTATEMENT; CERTAIN DEFINITIONS; RULES OF CONSTRUCTION	1
	 

	Section 1.01.

	Acknowledgement of Existing
Obligations; Amendment and Restatement; Joinder of GPB Prime; No Novation

	1

	 

	Section 1.02.

	Certain Definitions

	3

	 

	Section 1.03.

	Other Interpretive Provisions

	54

	 

	Section 1.04.

	Accounting Terms and Principles

	54

	 

	Section 1.05.

	Times of Day

	55

	 

	Section 1.06.

	LIBOR Rate

	55

	 

	Section 1.07.

	Pro Forma and Other Calculations

	55

	 

	Section 1.08.

	Borrowers

	57

	 	 	 	 
	ARTICLE II THE COMMITMENTS
AND CREDIT EXTENSIONS

	57

	 

	Section 2.01.

	Floor Plan Committed Loans

	57

	 

	Section 2.02.

	M&T Advances   
       

	66

	 

	Section 2.03.

	Mortgage Loans and Term Loans

	67

	 

	Section 2.04.

	Delayed Draw Facility

	72

	 

	Section 2.05.

	Interest Terms Applicable To
The Loans        

	75

	 

	Section 2.06.

	Fees

	77

	 

	Section 2.07.

	Computations of Interest; Retroactive
Adjustments of Applicable Rate

	78

	 

	Section 2.08.

	Evidence of Debt

	79

	 

	Section 2.09.

	Pro Rata Treatment and Payments;
Administrative Agent’s Clawback

	79

	 

	Section 2.10.

	[Reserved]

	81

	 

	Section 2.11.

	Increase in Commitments

	81

	 

	Section 2.12.

	Increased Costs   
        

	84

	 

	Section 2.13.

	Taxes

	85

	 

	Section 2.14.

	Mitigation Obligations; Replacement
of Lenders

	89

	 

	Section 2.15.

	Cash Collateral

	89

	 

	Section 2.16.

	Payments

	90

	 

	Section 2.17.

	Advancements

	90

	 

	Section 2.18.

	Defaulting Lenders

	91

	 

	Section 2.19.

	Co-Borrower Provisions 
        

	93

	 

	Section 2.20.

	Swap Obligations; Keepwell

	96

	 

	Section 2.21.

	Acknowledgment and Consent
to Bail-In of EEA Financial Institutions

	96

-i-

 

	ARTICLE III REPRESENTATIONS
AND WARRANTIES

	97

	 

	Section 3.01.

	Existence, Qualification and
Power

	97

	 

	Section 3.02.

	Subsidiaries; Addresses; Equity
Interests        

	97

	 

	Section 3.03.

	Authorization; No Contravention

	97

	 

	Section 3.04.

	Governmental Authorization;
Other Consents

	98

	 

	Section 3.05.

	Binding Effect

	98

	 

	Section 3.06.

	Litigation

	98

	 

	Section 3.07.

	No Material Adverse Effect;
Books and Records; Financial Projections

	98

	 

	Section 3.08.

	Margin Regulations; Investment
Company Act

	99

	 

	Section 3.09.

	Full Disclosure

	99

	 

	Section 3.10.

	Taxes

	99

	 

	Section 3.11.

	Consents and Approvals 
        

	99

	 

	Section 3.12.

	[Reserved]

	99

	 

	Section 3.13.

	Compliance with Laws

	99

	 

	Section 3.14.

	ERISA Compliance

	99

	 

	Section 3.15.

	Ownership of Real Property;
Liens

	100

	 

	Section 3.16.

	Location of Vehicles and Books
and Records

	101

	 

	Section 3.17.

	Insurance

	101

	 

	Section 3.18.

	Labor and Employment Matters

	101

	 

	Section 3.19.

	Taxpayer Identification Numbers

	101

	 

	Section 3.20.

	Solvency

	101

	 

	Section 3.21.

	Material Contracts

	101

	 

	Section 3.22.

	Patents, Trademarks, Copyrights,
Licenses, Etc.

	101

	 

	Section 3.23.

	Liens

	102

	 

	Section 3.24.

	Franchise Agreements and Framework
Agreements

	102

	 

	Section 3.25.

	Environmental Compliance

	102

	 

	Section 3.26.

	[Reserved]

	102

	 

	Section 3.27.

	Floor Plan Borrower Engaged
in Business of Selling Motor Vehicles

	102

	 

	Section 3.28.

	Anti-Corruption; Anti-Terrorism

	102

	 

	Section 3.29.

	EEA Financial Institutions.
No Loan Party is an EEA Financial Institution

	103

	 	 	 	 
	ARTICLE IV CONDITIONS PRECEDENT

	103

	 

	Section 4.01.

	Original Closing Date Conditions
and Conditions to Initial Borrowing

	103

	 

	Section 4.02.

	Conditions to Borrowings except
Floor Plan Borrowings under Drafts

	107

	 

	Section 4.03.

	Conditions to Floor Plan Borrowings
under Drafts

	108

	 

	Section 4.04.

	Conditions to Closing under
this Agreement

	108

 

-ii-

 

	ARTICLE V AFFIRMATIVE COVENANTS

	111

	 

	Section 5.01.

	Payment of Obligations 
         

	111

	 

	Section 5.02.

	Insurance

	111

	 

	Section 5.03.

	[Reserved]

	112

	 

	Section 5.04.

	Notice of Litigation and Proceedings

	112

	 

	Section 5.05.

	Notice of Change of Business
Location or of Jurisdiction of Organization; Notice of Name Change

	112

	 

	Section 5.06.

	Landlord Waivers

	112

	 

	Section 5.07.

	Notice of Events Affecting
Collateral

	113

	 

	Section 5.08.

	Reporting Requirements 
        

	113

	 

	Section 5.09.

	Preservation of Existence,
Etc.

	116

	 

	Section 5.10.

	Maintenance of Assets and Properties

	116

	 

	Section 5.11.

	Compliance with Laws; Anti-Terrorism;
Anti-Corruption

	116

	 

	Section 5.12.

	Books and Records

	117

	 

	Section 5.13.

	Inspection Rights

	117

	 

	Section 5.14.

	Environmental Matters and Indemnification

	117

	 

	Section 5.15.

	Additional Subsidiaries

	118

	 

	Section 5.16.

	Further Assurances

	120

	 

	Section 5.17.

	Joinder of Additional Borrowers

	120

	 

	Section 5.18.

	Interest Rate Protection

	120

	 

	Section 5.19.

	Post-Closing Deliverables

	120

	 

	Section 5.20.

	Dispositions of Restricted
Equity Interests

	120

	 	 	 	 
	ARTICLE VI NEGATIVE COVENANTS

	121

	 

	Section 6.01.

	Liens

	121

	 

	Section 6.02.

	Investments and Loans

	121

	 

	Section 6.03.

	Indebtedness

	122

	 

	Section 6.04.

	Fundamental Changes; Amendments
to Organization Documents

	124

	 

	Section 6.05.

	Dispositions

	125

	 

	Section 6.06.

	[Reserved]

	126

	 

	Section 6.07.

	Restricted Payments

	126

	 

	Section 6.08.

	Change in Nature of Business

	127

	 

	Section 6.09.

	Transactions with Affiliates

	127

	 

	Section 6.10.

	Burdensome Agreements; Negative
Pledges

	128

	 

	Section 6.11.

	Use of Proceeds

	130

	 

	Section 6.12.

	Acquisitions

	130

-iii-

 

	 

	Section 6.13.

	Equal Collateral; Perfection
of Deposit Accounts       

	131

	 

	Section 6.14.

	Tax Consolidation

	131

	 

	Section 6.15.

	Financial Covenants

	131

	 

	Section 6.16.

	Payment of Management Fees

	132

	 	 	 	 
	ARTICLE VII EVENTS OF DEFAULT

	132

	 

	Section 7.01.

	Events of Default

	132

	 

	Section 7.02.

	Equity Cure

	135

	 	 	 	 
	ARTICLE VIII RIGHTS AND REMEDIES
OF CREDIT PARTIES ON THE OCCURRENCE OF AN  EVENT OF DEFAULT

	135

	 

	Section 8.01.

	Credit Parties’ Specific
Rights And Remedies

	135

	 

	Section 8.02.

	Automatic Acceleration 
         

	136

	 

	Section 8.03.

	Consent to Appointment of Receiver

	136

	 

	Section 8.04.

	Remedies Cumulative

	136

	 

	Section 8.05.

	Application of Funds

	136

	 	 	 	 
	ARTICLE IX THE ADMINISTRATIVE
AGENT

	137

	 

	Section 9.01.

	Appointment

	137

	 

	Section 9.02.

	Exculpatory Provisions

	138

	 

	Section 9.03.

	Reliance by Administrative
Agent

	138

	 

	Section 9.04.

	Delegation of Duties

	139

	 

	Section 9.05.

	Resignation of Administrative
Agent

	139

	 

	Section 9.06.

	Non-Reliance on Administrative
Agent and Other Lenders

	140

	 

	Section 9.07.

	Administrative Agent May Hold
Collateral For Lenders and Others

	140

	 

	Section 9.08.

	The Administrative Agent In
Its Individual Capacity

	140

	 

	Section 9.09.

	Administrative Agent May File
Proofs of Claim

	140

	 

	Section 9.10.

	Collateral and Guaranty Matters

	141

	 

	Section 9.11.

	No Reliance on Administrative
Agent’s Customer Identification Program

	142

	 

	Section 9.12.

	No Other Duties, Etc.

	142

	 	 	 	 
	ARTICLE X MISCELLANEOUS

	142

	 

	Section 10.01.

	Waivers and Amendments

	142

	 

	Section 10.02.

	Successors and Assigns

	143

	 

	Section 10.03.

	Participations

	146

	 

	Section 10.04.

	Pledges

	146

	 

	Section 10.05.

	Resignation of M&T Bank
with Respect to M&T Advances

	146

	 

	Section 10.06.

	No Advisory or Fiduciary Responsibility

	147

	 

	Section 10.07.

	Right of Setoff

	147

-iv-

 

	 

	Section 10.08.

	Expenses; Indemnity; Damage
Waiver

	148

	 

	Section 10.09.

	Course of Conduct

	149

	 

	Section 10.10.

	Notices; Effectiveness; Electronic
Communication

	150

	 

	Section 10.11.

	Treatment of Certain Information;
Confidentiality

	151

	 

	Section 10.12.

	Replacement of Lenders

	152

	 

	Section 10.13.

	Counterparts And Integration

	153

	 

	Section 10.14.

	Electronic Execution

	154

	 

	Section 10.15.

	Severability

	154

	 

	Section 10.16.

	Survival

	154

	 

	Section 10.17.

	Time

	154

	 

	Section 10.18.

	Advertisement   
        

	154

	 

	Section 10.19.

	Acknowledgments

	154

	 

	Section 10.20.

	Governing Law   
        

	155

	 

	Section 10.21.

	Jurisdiction

	155

	 

	Section 10.22.

	Venue

	155

	 

	Section 10.23.

	Service of Process

	155

	 

	Section 10.24.

	Waiver of Jury Trial

	156

	 

	Section 10.25.

	USA Patriot Act Notice

	156

-v-

 

	SCHEDULES

	 

	 

	Schedule 1.01(b)

	Floor Plan Borrowers

	Schedule 1.01(c)

	Restricted Companies, Restricted
Equity Interests and Certificates

	Schedule 1.02

	Existing Liens

	Schedule 1.03

	Unrestricted Subsidiaries

	Schedule 2.01

	Lenders and Commitments

	Schedule 2.01.4(a)

	Floor Plan Committed Loans
(Original Closing Date)

	Schedule 2.01.4(b)

	Floor Plan Committed Loans
(Closing Date)

	Schedule 2.03 (a)

	Closing Date Mortgage Loans

	Schedule 2.03 (b)(1)

	Closing Date Term Loans (Original
Closing Date)

	Schedule 2.03(b)(2)

	Term Loans (Closing Date)

	Schedule 3.02

	Capital Stock and Subsidiaries;
Addresses

	Schedule 3.06

	Litigation

	Schedule 3.14

	ERISA

	Schedule 3.16

	Location of Vehicles and Books
and Records

	Schedule 3.19

	Tax ID Numbers

	Schedule 3.24

	Franchise Agreements and Framework
Agreements

	Schedule 4.01.1(d)

	Loan Party Jurisdictions

	Schedule 4.01.1(x)

	Closing Date Mortgaged Properties

	Schedule 5.19

	Post Closing Deliverables

	Schedule 6.02

	Investments (outstanding on
the Closing Date)

	Schedule 6.03(b)

	Indebtedness

	Schedule 6.03(c)

	Service Loaner Vehicle and
Demonstrator Program Indebtedness

	Schedule 6.05

	Dispositions

	Schedule 10.02

	Administrative Agent’s
Offices

	 

	 

	EXHIBITS

	 

	 

	Form of

	 

	 

	Exhibit A

	Assignment And Assumption

	Exhibit B-1

	Term/Mortgage Committed Loan
Notice

	Exhibit B-2

	Floor Plan Committed Loan Notice

	Exhibit C

	Compliance Certificate

	Exhibit D

	Delayed Draw Disbursement Procedures

	Exhibit E-1

	Delayed Draw Note (senior secured
mortgage loan)

	Exhibit E-2

	Delayed Draw Note (senior secured
term loan)

	Exhibit F

	Floor Plan Note

	Exhibit G

	Joinder Agreement and Counterpart

	Exhibit H

	Mortgage Loan Note

	Exhibit I

	Term Loan Note

	Exhibit J-1

	Certificate pursuant to §881(c)

	Exhibit J-2

	U.S. Tax Compliance Certificate

	Exhibit J-3

	U.S. Tax Compliance Certificate

	Exhibit J-4

	U.S. Tax Compliance Certificate

	Exhibit K

	Intercompany Note

-vi-

 

AMENDED
AND RESTATED CREDIT AGREEMENT

 

THIS AMENDED
AND RESTATED CREDIT AGREEMENT (“Agreement”) is dated as of the 4th day of October, 2017, by and among GPB
PRIME HOLDINGS, LLC, a Delaware limited liability company (“GPB Prime”), as a “Guarantor,” AUTOMILE PARENT
HOLDINGS, LLC, a Delaware limited liability company (“Parent Holdings Guarantor”), as a “Guarantor,” AUTOMILE
TY HOLDINGS, LLC, a Delaware limited liability company (“Toyota Holdings”), as a “Borrower,” AUTOMILE
HOLDINGS, LLC, a Delaware limited liability company (“Automile Holdings”), as a “Borrower,” AMR REAL ESTATE
HOLDINGS, LLC, a Delaware limited liability company (“AMR RE Holdings”), as a “Borrower,” the other parties
identified on the signature pages hereto as a “Borrower” and certain subsidiaries which from time to time become parties
hereto as borrowers pursuant to a Joinder Agreement (each of the foregoing, a “Borrower” and collectively, the “Borrowers”),
each lender from time to time that is a party hereto (each a “Lender,” and collectively, the “Lenders”)
and MANUFACTURERS AND TRADERS TRUST COMPANY, a New York banking corporation, as Administrative Agent.

 

RECITALS:

 

Parent
Holdings Guarantor, the Borrowers, the Lenders, and the Administrative Agent entered into that certain Credit Agreement dated as of February
24, 2017 (the “Existing Credit Agreement”), pursuant to which the Lenders agreed to make the credit facilities described
therein available to the Borrowers in accordance with the terms thereof.

 

GPB
Prime, Parent Holdings Guarantor, and the Borrowers have requested that, in connection with the transactions contemplated by the Purchase
Agreement (as defined below), the Administrative Agent and the Lenders agree to amend and restate the Existing Credit Agreement, without
novation or refinance, and that the Lenders continue to provide such credit facilities following consummation of the Purchase Agreement.
The Administrative Agent and the Lenders are willing to do so on the terms and conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, and other valuable consideration, and intending
to be legally bound hereby, the parties hereby covenant and agree as follows:

 

ARTICLE I

 

AMENDMENT AND RESTATEMENT; CERTAIN DEFINITIONS;
RULES OF CONSTRUCTION

 

Section
1.01.        Acknowledgment of Existing Obligations; Amendment and Restatement; Joinder of
GPB Prime; No Novation.

 

1.1.1               Acknowledgment
of Existing Obligations. Parent Holdings Guarantor and each of the Borrowers acknowledges and affirms that: (a) the Existing Credit
Agreement and each of the “Credit Documents” as defined in the Existing Credit Agreement (collectively, “Existing
Credit Documents”) is the valid and binding obligation of Parent Holdings Guarantor and each of the Borrowers that is a signatory
thereto, subject, as to the enforcement of remedies, to applicable bankruptcy, reorganization, insolvency, moratorium and similar Laws
affecting creditors’ rights generally and general principles of equity; (b) the Existing Credit Agreement and the Existing Credit
Documents are enforceable in accordance with all stated terms, subject, as to the enforcement of remedies, to applicable bankruptcy,
reorganization, insolvency, moratorium and similar Laws affecting creditors’ rights generally and general principles of equity;
(c) neither Parent Holdings Guarantor nor any of the Borrowers has any defense, claim of offset, or counterclaim against the enforcement
of the Existing Credit Agreement and the Existing Credit Documents in accordance with all stated terms; and (d) the Recitals set forth
above are true and correct.

 

 

1.1.2               Amendment
and Restatement. GPB Prime, Parent Holdings Guarantor, the Borrowers,
the Administrative Agent, and the Lenders hereby agree that
upon the effectiveness of this Agreement, this Agreement shall, and does hereby, amend and restate
the Existing Credit Agreement in its entirety, including, but not limited to, the terms and provisions thereof that in any manner govern
or evidence the Obligations, the rights and interests of the Administrative Agent and the Lenders, in any of their respective capacities,
and any terms, conditions or matters related to any thereof.

 

1.1.3               Joinder
of GPB Prime. GPB Prime hereby joins into this Agreement, in its various capacities and on the terms, provisions, and conditions
applicable to it, as set forth in this Agreement. GPB Prime, upon its execution and delivery of this Agreement, shall have all
of the rights and benefits, and hereby assumes all duties and obligations, including but not limited to all of the Obligations, as set
forth herein, applicable to it in its various capacities, as a party to this Agreement, bound by all of the terms hereof.
GPB Prime also hereby joins into the Guaranty Agreement, the Security Agreement, and the Pledge Agreement, by execution and delivery
of a counterpart thereto. Anything to the contrary set forth in any of the foregoing Credit Documents notwithstanding, upon delivery
by GPB Prime to the Administrative Agent of a counterpart to each of the foregoing, (a) GPB Prime shall be a Guarantor under the Guaranty
Agreement, (b) an Obligor under the Security Agreement, and (c) a Pledgor under the Pledge Agreement, in each case as fully a party hereto
as if GPB Prime were an original signatory thereto. Each other Loan Party expressly agrees that its obligations arising under any of
the foregoing Credit Documents shall not be affected or diminished by the addition of GPB Prime as a party thereto. Giving effect to
the Purchase Agreement, GPB Prime, and each of the Loan Parties which are parties to the Pledge Agreement, and the Administrative Agent
hereby agree that Schedule 2.01(a) attached to the Counterpart to the Pledge Agreement dated as of the Closing Date is given to amend
and restate in its entirety Schedule 2.01(a) attached to the Pledge Agreement dated as of the Original Closing Date.

 

1.1.4               No
Novation. Giving effect to this Agreement: (a) the joinder of GPB Prime, and all the terms and conditions
set forth herein, all of the Obligations owing by Parent Holdings Guarantor and by the Borrowers (as [*****] Borrowers or Non-[*****] Borrowers,
as the case may be), jointly and/or severally, and directly or indirectly (including in each such Borrower’s capacity as a Guarantor
under a Guaranty Agreement or a [*****] Guaranty Agreement, as the case may be), under the Existing Credit Agreement and other Existing
Credit Documents shall continue as Obligations of GPB Prime, Parent Holdings Guarantor and by the Borrowers (as [*****] Borrowers or Non-[*****]
Borrowers, as the case may be), jointly and/or severally, and directly or indirectly, hereunder, (including in each such Borrower’s
capacity as a Guarantor under a Guaranty Agreement or a [*****] Guaranty Agreement, as the case may be);

 

(b)  the
Notes, the Guaranty Agreement, the [*****] Guaranty Agreement, the Mortgages, the Pledge Agreement, the Escrow Agreement, the Security
Agreement, the other Security Documents, and the other Existing Credit Documents (other than this Agreement) (i) shall remain in full
force and effect; provided, however, each reference to a “Credit Agreement” or words of like import in the Notes,
the Guaranty Agreement, the [*****] Guaranty Agreement, the Mortgages, the Pledge Agreement, the Escrow Agreement, the Security Agreement,
the other Security Documents, or any other Existing Credit Document that remains in full force and effect is hereby amended to refer
to this Agreement (as amended, restated, amended and restated, refinanced, replaced, extended, supplemented or otherwise modified
from time to time) upon the effectiveness hereof, (ii) as so amended, all are hereby ratified and confirmed,
and (iv) together with this Agreement, shall be deemed Credit Documents, as defined below;

    -2-

     

    

(c) for
the avoidance of doubt, all Loans (respectively, as defined in the Existing Credit Agreement) owing by the respective Borrowers and outstanding
under the Existing Credit Agreement shall continue as Loans, respectively, hereunder evidenced by the respective Notes and subject to
the terms hereof and thereof, and shall continue to accrue interest
at the respective rate of interest (including the respective Applicable Rate) hereunder; and

 

(d) no
novation of the Existing Credit Agreement or the Existing Credit Documents and no repayment or refinance of any of the “Obligations”
or the subject credit facilities under and as defined in the Existing Credit Agreement and the Existing Credit Documents is intended
by the parties. After giving effect to this Agreement, all of the Liens granted pursuant to the Security Documents are intended to be
unimpaired and remain in full force and effect and are hereby ratified and confirmed by the Loan Parties.

 

Section
1.02.        Certain Definitions. In addition to the terms defined elsewhere in this Agreement,
the following terms shall have the following meanings, respectively, unless the context hereof clearly requires otherwise:

 

“Abrams
Capital” means Abrams Capital, L.L.C.

 

“Account”
means any “account” within the meaning of that term under the Uniform Commercial Code, including any rights to payment
for the sale, lease or license of goods or for services rendered or to be rendered, whether or not they have been earned by performance.

 

“Accordion
Provision” has the meaning provided for such term in Section 2.11.1.

 

“Account
Debtor” means any “account debtor” within the meaning of that term under the Uniform Commercial Code, including
any Person who is obligated in any way on or in connection with an Account, Chattel Paper, or a General Intangible (including a Payment
Intangible).

 

“Acquired
Dealer” means each of Staretz, LLC, Sawdran, LLC and LUPO LLC.

 

“Acquisition”
means the acquisition of (i) a controlling equity interest or other controlling ownership interest in another Person (including the
purchase of an option, warrant or convertible or similar type security to acquire such a controlling interest at the time it becomes
exercisable by the holder thereof), whether by purchase of such equity or other ownership interest or upon the exercise of an option
or warrant for, or conversion of securities into, such equity interest or other ownership interest or (ii) assets of another Person which
constitute a business unit or a line or lines of business conducted by such Person, or a Franchise owned by another Person, or assets
constituting a vehicle dealership of another Person. Notwithstanding anything to the contrary provided in this Agreement, the acquisition
(including, without limitation, by way of any acquisition of a controlling equity interest or other controlling ownership interest of
any Person) of real property by GPB Prime or its Subsidiaries and used in the business conducted by Parent Holdings Guarantor or its
Subsidiaries shall not be considered an “Acquisition” for any purposes under this Agreement (provided that if any
Acquisition is not limited to the acquisition of such real property, the exception under this sentence shall be limited to the portion
of such Acquisition corresponding to the purchase price attributable to such real property acquired in connection with such Acquisition).

 

“Additional
Commitments” has the meaning provided for such term in Section 2.11.1.

 

“Additional
Lender” means, at any time, any bank, other financial institution (including, without limitation, any financial services Affiliate
of a Manufacturer) or institutional lender or investor that, in any case, is not an existing Lender but, in any event, satisfies all
criteria set forth in the definition of “Eligible Assignee” and agrees to provide any portion of any Facility Increase, Additional
Loan or Additional Commitment in accordance with Section 2.11.

    -3-

     

    

“Additional
Loans” has the meaning provided to such term in Section 2.11.1.

 

“Additional
Mortgage Commitments” has the meaning provided to such term in Section 2.11.1.

 

“Additional
Mortgage Loans” has the meaning provided to such term in Section 2.11.1.

 

“Additional
Term Loan Commitments” has the meaning provided to such term in Section 2.11.1.

 

“Additional
Term Loans” has the meaning provided to such term in Section 2.11.1.

 

“Administrative
Agent” means M&T Bank, in its capacity as administrative agent and collateral agent for the Lenders in accordance with
this Agreement and any of the other Credit Documents, and its successors and assigns in such capacity as authorized by the terms of this
Agreement.

 

“Administrative
Agent’s Office” means the Administrative Agent’s address and, as appropriate, account as set forth on Schedule
10.02, or such other address or account as the Administrative Agent may from time to time notify the Borrowers and the Lenders.

 

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

 

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

 

“Agent
Parties” has the meaning provided to such term in Section 10.10.4 of this

 

Agreement.

 

“Agreement”
means this Amended and Restated Credit Agreement, together with all schedules and exhibits hereto.

 

“Anti-Terrorism
Laws” means any Laws of the United States relating to terrorism, Sanctions, import/export licensing or money laundering (including
the U.S. Foreign Corrupt Practices Act of 1977) and any regulation, order (including executive orders), or directive promulgated, issued
or enforced pursuant to such Laws.

 

“Applicable
Credit Facility” means the Floor Plan Facility, the Mortgage Loans under the Mortgage Facility, the Term Loans under the Term
Loan Facility, the Delayed Draw Mortgage Loans, the Delayed Draw Term Loans, any Class of Additional Mortgage Loans and any Class of
Additional Term Loans, as the context may require.

 

“Applicable
Percentage” means, with respect to any Lender at any time, the percentage (carried out to the ninth decimal place) of (a) aggregate
Commitments of an Applicable Credit Facility represented by such Lender’s Commitment under such Applicable Credit Facility at such
time, and (b) Commitments represented by such Lender’s Commitment at such time, in each case subject to adjustment as provided
in Section 2.18. If the Commitment of any Lender under an Applicable Credit Facility to make Loans under such Applicable Credit Facility
has been terminated pursuant to Section 8.01, or if the Commitments of such Applicable Credit Facility have expired, then the Applicable
Percentage of each Lender under such Applicable Credit Facility shall be determined based on the Applicable Percentage of such Lender
under such Applicable Credit Facility most recently in effect, giving effect to any subsequent assignments made pursuant to the terms
hereof. The initial Applicable Percentage of each Lender under each Applicable Credit Facility is set forth opposite the name of such
Lender on Schedule 2.01 or in the Assignment And Assumption or Incremental Amendment pursuant to which such Lender becomes a party
hereto, as applicable.

    -4-

     

    

“Applicable
Rate” has the following meanings, depending on the Applicable Credit Facility:

 

(a)           With
respect to the Mortgage Facility, Term Loan Facility, and Delayed Draw Facility, and the fees described below, Applicable Rate means,
from time to time, the following percentages per annum based upon the Total Leverage Ratio as set forth in the most recent Compliance
Certificate received by the Administrative Agent pursuant to Section 5.08.4:

 

	Pricing
 Level
	 	 	Total
                                            Leverage
 Ratio
	 	Applicable
                                            

                                            Rate For 

                                            LIBOR
 Borrowings
	 	 	Applicable
                                            Rate
 For
                                            Base Rate 
 Borrowings
	 	 	Applicable
                                            Rate For
 Delayed
                                            Draw
 Facility
                                            Unused
 Commitment
                                            Fees
	 
	1	 	 	> 2.25	 	 	2.75	%	 	 	1.00	%	 	 	0.375	%
	2	 	 	> 1.75 < 2.25	 	 	2.50	%	 	 	0.75	%	 	 	0.250	%
	3	 	 	> 1.25 < 1.75	 	 	2.25	%	 	 	0.50	%	 	 	0.250	%
	4	 	 	> 0.75 < 1.25	 	 	2.00	%	 	 	0.25	%	 	 	0.200	%
	5	 	 	< 0.75	 	 	1.75	%	 	 	0.00	%	 	 	0.200	%

 

Any increase or decrease in
the Applicable Rate resulting from a change in the Total Leverage Ratio shall become effective within one (1) Business Day immediately
following the date a Compliance Certificate is delivered pursuant to Section 5.08.4; provided, however, that (i) if a Compliance
Certificate is not delivered when due in accordance with such Section 5.08.4, then Pricing Level 1 shall apply as of the first (1st)
Business Day after the date on which such Compliance Certificate was required to have been delivered (but was not delivered) and shall
remain in effect until the date on which such Compliance Certificate is delivered and (ii) the Applicable Rate in effect from the Original
Closing Date through the date occurring one (1) Business Day immediately following the date the Compliance Certificate with respect to
the Fiscal Quarter ended March 31, 2017 is delivered (or, if not timely delivered, the date such Compliance Certificate is required to
be delivered) pursuant to Section 5.08.4 shall be Pricing Level 2.

 

Notwithstanding anything to
the contrary contained in this definition, the determination of the Applicable Rate for any period shall be subject to the provisions
of Section 2.07(b).

 

    -5-

     

    

(b)         With
respect to the Floor Plan Facility and the fees described below, the Applicable Rate means the following percentages per annum:

 

	Applicable
                                            Rate
 For
                                            LIBOR
 Borrowings
	 	 	Applicable
                                            Rate
 For
                                            Base Rate
 Borrowings
	 	 	Applicable
                                            Rate
 For
                                            Floor Plan
 Commitment
                                            Fees
	 
	 	1.65	%	 	 	0.00	%	 	 	0.15	%

 

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

 

“Arranger”
means, individually and collectively, M&T Bank, in its capacity as lead arranger, and SunTrust Robinson Humphrey, Inc., in its
capacity as co-lead arranger.

 

“Assignment
And Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any
party whose consent is required by Section 10.2.1   and the definition of “Eligible
Assignee”), and accepted by the Administrative Agent, in substantially the form of Exhibit A or any other form (including
electronic documentation generated by use of an electronic platform) approved by the Administrative Agent in its reasonable discretion.

 

“Auction
Vehicle” means a Motor Vehicle (i) purchased by a Floor Plan Borrower from an auto auction or from another Franchise (to the
extent such Franchise originally purchased such Motor Vehicle from an auto auction) and (ii) which Motor Vehicle is not older than six
model years.

 

“Auction
Vehicles Allocation” means up to $22,000,000 of the Floor Plan Commitments which may be borrowed to finance the purchase of
Auction Vehicles, as such amount may be increased from time to time as set forth in Section 2.11.3(b).

 

“Automile
Holdings” has the meaning provided to such term in the introductory statement hereto.

 

“Availability
Period” means:

 

 (a)         in
the case of the Floor Plan Facility, the period from and including the Original Closing Date to the earliest of (i) the Original Maturity
Date, (ii) the date of termination of the Floor Plan Commitments pursuant to Section 2.01.12(a), and (iii) the date of termination of
the Floor Plan Commitments pursuant to Section 8.01; and

 

 (b)         in
the case of the Delayed Draw Facility, the period from and including the Original Closing Date to the earliest of (i) the Original Maturity
Date, (ii) the date on which an aggregate principal amount equal to the Delayed Draw Dollar Cap has been advanced, (iii) the date of
termination of the Delayed Draw Facility Commitments pursuant to Section 2.04.4, and (iv) the date of termination of the Delayed Draw
Facility Commitments pursuant to Section 8.01.

 

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

 

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

    -6-

     

    

“Bank
Secrecy Act” means The Currency and Foreign Transactions Reporting Act, also known as the “Bank Secrecy Act,” 31
U.S.C. §§5311-5330 and 12 U.S.C. §§1818(s), 1820(b) and 1951- 1959.

 

“Bankruptcy
Code” means the bankruptcy code of the United States of America codified in Title 11 of the United States Code.

 

“Base
Rate” means, for any day, the fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate in effect on such
day plus fifty (50) Basis Points, (b) the Prime Rate for such day and (c) the LIBOR Rate on such day for an Interest Period of
one month plus (x) with respect to the Mortgage Facility, Term Loan Facility and Delayed Draw Facility, one hundred seventy-five
(175) Basis Points or (y) with respect to the Floor Plan Facility, one hundred sixty-five (165) Basis Points. Any change in the Base
Rate shall be effective on the opening of business on the day of such change.

 

“Base
Rate Borrowing” means each amount of the unpaid principal balance of a Loan which accrues interest at the Base Rate plus the
Applicable Rate.

 

“Base
Rate Loan” means a Loan that bears interest based on the Base Rate.

 

“Basis
Point” means one one-hundredth (.01) of one percent.

 

“Borrower”
has the meaning provided in the introductory statements hereto.

 

“Borrower
Pro Rata Share” means the amount of the Floor Plan Committed Loans advanced to a Borrower.

 

“Borrower
Representative” means Automile Holdings and any successor thereto as appointed by all of the Borrowers.

 

“Borrowing”
means, as the context requires, a (a) Floor Plan Committed Borrowing, (b) M&T Advance, (c) Mortgage Loan Borrowing of a particular
Class, (d) Term Loan Borrowing of a particular Class or (e) Delayed Draw Borrowing of a particular Class.

 

“Borrowing
Date” means with respect to each Borrowing, the Business Day upon which the proceeds of such Borrowing are made available to
such Borrower.

 

“Business
Day” means any day other than a Saturday or Sunday or other day on which commercial banks are authorized to close under the
Laws of, or are in fact closed in, the State where the Administrative Agent’s office is located and, if such day relates to any
LIBOR Rate Loan, means any such day that is also a London Banking Day.

 

“Capital
Stock” of any Person means any and all shares, interests, participations, rights in or other equivalents (however designated)
of such Person’s capital stock or other equity interests whether now outstanding or issued after the date of this Agreement, including
limited liability company interests and/or membership interests, partnership interests (whether general or limited), any other interest
or participation, however designated, that confers on a Person the right to receive a share of the profits and losses of, or distributions
of assets of (other than a distribution in respect of Indebtedness), the issuing Person, including any Preferred Stock and any rights
(other than debt securities convertible into Capital Stock), warrants or options exchangeable for or convertible into such Capital Stock.

 

“Capitalized
Lease Obligation” means, at the time any determination thereof is to be made, the amount of the liability in respect of a capital
lease that would at such time be required to be capitalized and reflected as a liability on a balance sheet (excluding the footnotes
thereto) prepared in accordance with GAAP; provided that all obligations of any Person that are or would be characterized as operating
lease obligations in accordance with GAAP on the Original Closing Date (whether or not such operating lease obligations were in effect
on such date) shall continue to be accounted for as operating lease obligations (and not as Capitalized Lease Obligations) for purposes
of this Agreement regardless of any change in GAAP following the Original Closing Date that would otherwise require such obligations
to be recharacterized (on a prospective or retroactive basis or otherwise) as Capitalized Lease Obligations.

    -7-

     

    

“Captive
Insurance Subsidiary” means any Subsidiary that is subject to regulation as an insurance company (or any Subsidiary thereof).

 

“Cash
Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for the benefit of the Administrative
Agent, M&T Bank as lender of the M&T Advances, and/or the Lenders, as Collateral for Obligations in respect of M&T Advances,
or obligations of Lenders to fund participations in respect thereof (as the context may require), or as otherwise required under this
Agreement with respect to other Obligations, cash or deposit account balances or, if the Lender benefitting from such Collateral shall
agree in its sole discretion, other credit support, in each case pursuant to documentation in form and substance reasonably satisfactory
to (a) the Administrative Agent and (b) M&T Bank as lender of the M&T Advances (if applicable). “Cash Collateral”
shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.

 

“Cash
Equivalents” means (a) securities issued or directly and fully guaranteed or insured by the United States Government or any
agency or instrumentality thereof having maturities of not more than one year from the date of acquisition, (b) time deposits, certificates
of deposit and Eurodollar time deposits with maturities of not more than one year from the date of acquisition, bankers’ acceptances
with maturities not exceeding one year from the date of acquisition and overnight bank deposits, in each case with the Administrative
Agent or any Lender or with any domestic commercial bank having capital and surplus in excess of Five Hundred Million Dollars ($500,000,000),
(c) repurchase obligations for underlying securities of any of the types described in clause (a) or (b) and entered into with any bank
meeting the qualifications specified in clause (b) above, (d) commercial paper maturing in one year or less rated not lower than A-1
or A-2 by S&P or P-1 or P-2 by Moody’s on the date of acquisition, (e) interests in pooled investment funds (including mutual
funds and money market funds) substantially all the assets of which are invested in investments referred to in items (a) through (d)
above, and (f) solely with respect to any Captive Insurance Subsidiary, any investment that the Captive Insurance Subsidiary is not prohibited
to make in accordance with applicable Law.

 

“Cash
Management Agreement” means any agreement to provide Cash Management Products.

 

“Cash
Management Bank” means any Person that, (a) at the time it enters into a Cash Management Agreement, is a Credit Party or an
Affiliate of a Credit Party, or (b) at the time it (or its Affiliate) becomes a Credit Party, is a party to a Cash Management Agreement,
in each case, in its capacity as a party to such Cash Management Agreement.

 

“Cash
Management Products” means any one or more of the following types of services or facilities extended to any of the Loan Parties
by any Credit Party or Affiliate of a Credit Party: (a) Automated Clearing House (ACH) transactions, electronic funds transfer, and other
similar money transfer services; (b) cash management, treasury, overdraft, lockbox arrangements, and other similar services; (c) the
establishment and maintenance of depository accounts and other depository services; (d) credit cards, debit cards, or stored value cards;
and (e) other similar or related bank products and services.

    -8-

     

    

“Cash
Taxes” means, with respect to any referenced Person, for any applicable period, the taxes paid in cash by such Person during
such period to the extent deducted in the determination of Consolidated Net Income.

 

“Casualty
Event” means any loss of or damage to, or any condemnation or other taking of, any fixed assets that constitute Collateral
(for the avoidance of doubt, excluding any Motor Vehicles) for which any Loan Party receives insurance proceeds or proceeds of a condemnation
award.

 

“CEA”
means the Commodity Exchange Act (7 U.S.C.§1 et seq.).

 

“Certificate
Holders” means the holders of the Restricted Equity Interests and the Certificates as scheduled on Schedule 1.01(c)
(as such Schedule may be supplemented from time to time by Parent Holdings Guarantor).

 

“Certificates”
means the Certificates evidencing the Restricted Equity Interests as scheduled on Schedule 1.01(c) (as such Schedule may be
supplemented from time to time by Parent Holdings Guarantor).

 

“CFC”
means a “controlled foreign corporation” within the meaning of Section 957(a) of the Code.

 

“CFC
Holdco” means a Domestic Subsidiary that is treated as a disregarded entity for U.S.  federal income tax purposes
substantially all of whose assets consists (directly or indirectly through disregarded entities) of the Equity Interests or Indebtedness
of one or more Subsidiaries that are CFCs.

 

“CFTC”
means the Commodity Futures Trading Commission.

 

“Change
of Control” means the occurrence of any of the following events or series of events by which:

 

(a)        at any
time prior to an Initial Public Offering:

 

(i)        the
Sponsor shall cease to own legally or beneficially, directly or indirectly, 100% of the voting Capital Stock of GPB Prime;

 

(ii)       GPB
Prime shall cease to own legally and beneficially, directly or indirectly, 100% of the voting Capital Stock of AMR RE Holdings;

 

(iii)      GPB
Prime shall cease to own legally or beneficially, directly or indirectly, at least 75% of the voting Capital Stock of Parent Holdings
Guarantor, free and clear of all Liens (other than any Liens arising pursuant to any stock or equity holder agreement);

 

(iv)      GPB
Prime and the Rosenberg Group shall, collectively, cease to own legally or beneficially, directly or indirectly, 100% of the voting Capital
Stock of Parent Holdings Guarantor, free and clear of all Liens (other than any Liens arising pursuant to any stock or equity holder
agreement);

 

(v)       Parent
Holdings Guarantor shall cease to own legally and beneficially, directly or indirectly, 100% of the voting Capital Stock of each of Automile
Holdings and [*****] Holdings; or

    -9-

     

    

(vi)      at
least 75% of the voting Capital Stock of any Loan Party (excluding GPB Prime) shall cease to be owned legally and beneficially, directly
or indirectly, by another Loan Party; or

 

(b)       at
any time after an Initial Public Offering:

 

(i)        any
 “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934,
but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee,
agent or other fiduciary or administrator of any such plan), excluding any member or members of the Sponsor Group, becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed
to have “beneficial ownership” of all securities that such person or group has the right to acquire, whether such right is
exercisable immediately or only after the passage of time (such right, an “option right”)), directly or indirectly,
of thirty-five percent (35%) or more of the Capital Stock of GPB Prime entitled to vote for members of the board of Directors or equivalent
governing body of GPB Prime on a fully-diluted basis;

 

(ii)       all
of the shares or other applicable interests of voting Capital Stock of GPB Prime (or the relevant direct or indirect parent company thereof,
as applicable) cease to be publicly traded;

 

(iii)      GPB
Prime and the Rosenberg Group shall, collectively, cease to own legally and beneficially, directly or indirectly, 100% of the voting
Capital Stock of Parent Holdings Guarantor, free and clear of all Liens (other than any Liens arising pursuant to any stock or equity
holder agreement);

 

(iv)      Parent
Holdings Guarantor shall cease to own legally and beneficially, directly or indirectly, 100% of the voting Capital Stock of each of Automile
Holdings and [*****] Holdings;

 

(v)       GPB
Prime shall cease to own legally and beneficially, directly or indirectly, 100% of the voting Capital Stock of AMR RE Holdings; or

 

(vi)      at
least 75% of the voting Capital Stock of any Loan Party (excluding GPB Prime) shall cease to be owned legally and beneficially, directly
or indirectly, by another Loan Party.

 

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

    -10-

     

    

“Class”
means, (a) when used with respect to Lenders, refers to whether such Lenders have Loans or Commitments with respect to a particular
Class of Loans or Commitments, (b) when used with respect to Commitments, refers to whether such Commitments are Floor Plan Commitments,
Term Loan Facility Commitments, Additional Term Loan Commitments effected on any Increase Effective Date, Mortgage Facility Commitments,
Additional Mortgage Commitments effected on any Increase Effective Date or Delayed Draw Facility Commitments, in each case not designated
part of another existing Class, and (c) when used with respect to Loans or a Borrowing, refers to whether such Loans, or the Loans comprising
such Borrowing, are Floor Plan Committed Loans, Closing Date Term Loans, Delayed Draw Term Loans, Additional Term Loans made on any Increase
Effective Date, Closing Date Mortgage Loans, Delayed Draw Mortgage Loans or Additional Mortgage Loans made on any Increase Effective
Date, in each case not designated part of another existing Class. Commitments (and, in each case, the Loans made pursuant to such Commitments)
that have different terms and conditions shall be construed to be in different Classes. Commitments (and, in each case, the Loans made
pursuant to such Commitments) that have identical terms and conditions shall be construed to be in the same Class.

 

“Closing”
means the execution and delivery of this Agreement by the parties hereto.

 

“Closing
Date” means October 4, 2017.

 

“Closing
Date Mortgage Loans” has the meaning provided to such term in Section 2.03(a).

 

“Closing
Date Term Loans” has the meaning provided to such term in Section 2.03(b).

 

“Closing
Date Transactions” means, collectively, (a) the execution of this Agreement and the other applicable Credit Documents, (b)
the consummation of the Purchase Transaction, (c) the consummation of any other transactions in connection with the foregoing, (d) subject
to the submission of a duly completed Compliance Certificate signed by the President of the Borrower Representative, including calculations
of the Fixed Charge Coverage Ratio and Fixed Charge Coverage Ratio (All Cash Dividends) as set forth in Sections 6.15.2 and 6.15.3 (respectively)
of this Agreement, calculated for the purposes of the Compliance Certificate submitted for purposes of the Specified Closing Distribution
based upon the actual results for the year-to-date period ending on the last day of the most recently ended fiscal month prior to the
Closing Date, and after giving pro forma effect to the Closing Date Transactions, and any related adjustments permitted under
this Agreement and evidencing the ability of the Borrowers to do so in compliance with terms and conditions of this Agreement applicable
to such payments, the payment of one or more dividends or distributions to the direct or indirect equity holders of GPB Prime and/or
Parent Holdings Guarantor on or around the Closing Date (the “Specified Closing Distribution”), and (e) the payment
of fees and expenses incurred in connection with any of the foregoing not to exceed an aggregate amount of Nine Million Dollars ($9,000,000.00).

 

“Code”
means the Internal Revenue Code of 1986.

 

“Collateral”
means all of the assets, rights, and interests in property, including tangible and intangible assets and Real Estate Collateral and
personal property, of any Loan Party in which the Administrative Agent on behalf of the Secured Parties is from time to time granted
a Lien under any Security Document as security for all or any portion of the Obligations; provided, however, that Collateral
shall not include any Excluded Property.

 

“Collateral
Information Certificate” means the Collateral Information Certificate prepared, executed and delivered to the Administrative
Agent by a Responsible Officer of each of the Loan Parties.

    -11-

     

    

“Commercial
Account” means the commercial checking account to be established and maintained with the Administrative Agent by the Borrowers
and which may be utilized as the means of advancing funds under the Loans.

 

“Commitment”
means, as to each Lender, its Floor Plan Commitment, including its obligations hereunder to purchase participations in M&T Advances,
its Mortgage Facility Commitment, its Term Loan Facility Commitment, its Delayed Draw Facility Commitment, its Additional Mortgage Commitments
of any Class and its Additional Term Loan Commitments of any Class, as the context requires, and “Commitments” means,
collectively, the Commitments of all of the Lenders.

 

“Communications”
has the meaning provided to such term in Section 10.10.4 of this Agreement.

 

“Compliance
Certificate” means a certificate provided by the Borrower Representative in accordance with the requirements of Section 5.08.4
of this Agreement substantially in form and substance as Exhibit C attached hereto.

 

“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.

 

“Consolidated
EBITDA” means, for any period, for GPB Prime and its Subsidiaries on a consolidated basis, an amount equal to Consolidated
Net Income for such period, plus

 

(a)          the
following, in each case to the extent deducted in calculating Consolidated Net Income for such period:

 

(i)        total
interest expense and, to the extent not reflected in such total interest expense, any losses on Swap Obligations or other derivative
instruments entered into for the purpose of hedging interest rate risk, net of interest income and gains on such Swap Obligations or
such derivative instruments, and bank and letter of credit fees and costs of surety bonds in connection with financing activities;

 

(ii)       provision
for taxes based on income, profits, revenue or capital, including federal, foreign and state income, franchise, excise, value added and
similar taxes and foreign withholding taxes paid or accrued during such period (including any future taxes or other levies that replace
or are intended to be in lieu of taxes, and any penalties and interest related to taxes or arising from tax examinations) and the net
tax expense associated with any adjustments made pursuant to the definition of “Consolidated Net Income”;

 

(iii)      depreciation
and amortization (including amortization of intangible assets) for such period;

 

(iv)      all
non-cash charges, expenses and losses, including any write-offs or write-downs reducing Consolidated Net Income for such period;

 

(v)       fees,
charges and expenses in respect of integration, severance, relocation, opening (or re-opening in the case of the acquisition of an existing
Franchise) or closing of facilities, business optimization expenses and restructuring charges;

 

(vi)      fees,
costs and expenses incurred in connection with issuances of Equity Interests (whether or not consummated);

    -12-

     

    

(vii)     fees,
costs and expenses incurred within six months of the Original Closing Date in connection with the Original Closing Date Transactions;

 

(viii)    fees, costs
and expenses incurred within six months of the Closing Date in connection with the Closing Date Transactions in an aggregate amount not
to exceed Nine Million Dollars ($9,000,000.00);

 

(ix)      fees,
costs and expenses incurred in connection with Permitted Acquisitions and other Permitted Investments (in each case, whether or not consummated);

 

(x)       fees,
costs and expenses incurred in connection with incurrences of Indebtedness (whether or not consummated);

 

(xi)      fees,
costs and expenses incurred in connection with (A) the prepayment of Indebtedness and (B) the waiver or amendment of, or refinancing
of, the Credit Facilities (in each case, whether or not consummated);

 

(xii)     any
loss from discontinued operations (but if such operations are classified as discontinued due to the fact that they are subject to an
agreement to dispose of such operations, only when and to the extent such operations are actually disposed of);

 

(xiii)    all (A)
reasonable director or board advisory fees paid to members of the board of directors or managers which, in each case are not the subject
of either of the Management Services Agreements, (B) indemnities and out-of-pocket expenses paid or reimbursed to members of the board
of directors or managers, and (C) reasonable out-of-pocket expenses paid or reimbursed to GPB Prime or applicable Affiliates under and
in accordance with the Management Services Agreements, in an aggregate amount for all of the foregoing items described in this clause
 “(xiii)” not to exceed $500,000 during such period;

 

(xiv)    minority
interest expense, the amount of any non-controlling interest consisting of income attributable to non-controlling interests of third
parties in any non-wholly- owned Subsidiary, excluding cash distributions to minority holders in respect thereof, and the amount of any
reductions in arriving at Consolidated Net Income resulting from the application of Accounting Standards Codification Topic No. 810,
Consolidation;

 

(xv)     management
fees paid to GPB Prime or one or more designated Affiliates of GPB Prime in accordance with the terms of the Management Services Agreements
during such period to the extent permitted by this Agreement and the Management Services Subordination Agreements and in an amount not
to exceed an aggregate amount of two percent (2%) of Consolidated EBITDA in any Test Period; minus

 

(b)        
  to the extent added to the calculation of such Consolidated Net Income:

 

(i)        all
non-cash gains for such period; and

 

(ii)       any
net income from discontinued operations (but if such operations are classified as discontinued due to the fact that they are subject
to an agreement to dispose of such operations, only when and to the extent such operations are actually disposed of).

    -13-

     

    

“Consolidated Interest Expense” means
for any period, for GPB Prime and its Subsidiaries on a consolidated basis, the sum of:

 

(a)         consolidated
cash interest expense, to the extent such expense was deducted (and not added back) in computing Consolidated Net Income (including (w)
all commissions, discounts, and other fees and charges owed with respect to letters of credit or bankers acceptances, (x) capitalized
interest to the extent paid in cash, (y) net payments (over payments received), if any, made pursuant to interest rate Swap Obligations
with respect to Indebtedness and (z) all cash dividends or cash distributions paid or payable during such period in respect of any class
or series of Disqualified Stock of GPB Prime, Parent Holdings Guarantor, or any Subsidiary thereof); plus

 

(b)         commitment
fees payable pursuant to Section 2.06.2 and 2.06.3 of this Agreement during such period, minus, in each case:

 

(i)        amortization
of deferred financing costs, debt issuance costs, commissions, fees and expenses and any other amounts of non-cash interest;

 

(ii)       interest
expense attributable to the movement of the mark-to-market valuation of obligations under Swap Obligations or other derivative instruments,
including pursuant to FASB Accounting Standards Codification Topic 815, Derivatives and Hedging;

 

(iii)      costs
associated with terminating Swap Obligations and cash costs associated with breakage in respect of hedging agreements for interest rates;
and

 

(iv)      any
payments with respect to make-whole premiums, call premiums or breakage costs of any Indebtedness, including any Loans.

 

“Consolidated
Net Income” means, for any period, for GPB Prime and its Subsidiaries on a consolidated basis, the net income of GPB Prime
and its Subsidiaries for such period, determined in accordance with GAAP, excluding (and excluding the effect of), without duplication:

 

(a)       any
extraordinary, unusual or non-recurring gains, losses (less all fees and expenses relating thereto), expenses or other charges; provided
that the aggregate amount excluded under this clause (a) during any Test Period for unusual or non-recurring losses, expenses or
other charges shall not exceed ten percent (10%) of Consolidated EBITDA for such Test Period;

 

(b)       any
gain or loss on non-ordinary course Dispositions, including Permitted Real Estate Sales and other asset sales, disposals, and abandonments;

 

(c)       effects
of adjustments (including the effects of such adjustments pushed down to such Person and its Subsidiaries) related to the application
of recapitalization accounting or purchase accounting (including in the inventory, property and equipment, software, goodwill, intangible
assets, in process research and development, deferred revenue and debt line items), as the case may be, in relation to any consummated
acquisition or the amortization or write-off of any amounts thereof;

 

(d)       any
non-cash gain (loss) attributable to the mark to market movement in the valuation of Swap Obligations or other derivative instruments
pursuant to FASB Accounting Standards Codification Topic No. 815—Derivatives and Hedging or mark to market movement of other
financial instruments pursuant to FASB Accounting Standards Codification Topic No. 825—Financial Instruments;

    -14-

     

    

(e)         any
non-cash impairment charge or asset write-off or write-down in each case, pursuant to GAAP, and the amortization of intangibles arising
pursuant to GAAP;

 

(f)          any
income (loss) attributable to the early extinguishment of (x) Indebtedness or (y)  Swap Obligations
or other derivative instruments;

 

(g)         (i)
any equity based or non-cash compensation charge or expense, including any such charge or expense arising from grants of stock appreciation,
equity incentive programs or similar rights, stock options, restricted stock or other rights to, and any cash charges associated with
the rollover, acceleration or payout of, Equity Interests by management of such Person or of a Subsidiary of GPB Prime, (ii) noncash
compensation expense resulting from the application of Accounting Standards Codification Topic No. 718, Compensation—Stock Compensation
or Accounting Standards Codification Topic 505-50—Equity-Based Payments to Non-Employees, and (iii) any income (loss)
attributable to deferred compensation plans or trusts; and

 

(h)         earn-out
and contingent consideration obligations (including to the extent accounted for as bonuses or otherwise) and adjustments thereof and
purchase price adjustments.

 

“Consolidated
Total Funded Indebtedness” means, as of any date of determination, for GPB Prime and its Subsidiaries on a consolidated basis,
the sum of:

 

(a)         the
outstanding principal amount of all Indebtedness, whether current or long- term, for borrowed money and all Indebtedness evidenced by
bonds, debentures, notes, loan agreements or other similar instruments;

 

(b)         reimbursement
obligations under drawn but unreimbursed standby letters of credit (provided that unreimbursed amounts shall not count as Indebtedness
prior to three (3) Business Days after such amount is drawn);

 

(c)         purchase
money Indebtedness and Capitalized Lease Obligations; and

 

(d)         without
duplication, all guarantees with respect to outstanding Indebtedness of the types specified in clauses (a) through (c) above of Persons
other than GPB Prime or any of its Subsidiaries.

 

“Contamination”
means the presence of any Hazardous Material at any Real Property which may require investigation, clean-up or remediation under
any Environmental Law.

 

“Contingent
Obligations” means, with respect to any Person, any obligation of such Person guaranteeing any leases, dividends or other monetary
obligations that do not constitute Indebtedness (“primary obligations”) of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, including any obligation of such Person, whether or not contingent:

 

(a)         to
purchase any such primary obligation or any property constituting direct or indirect security therefor;

 

(b)         to
advance or supply funds:

       
                  

(i)        for
the purchase or payment of any such primary obligation;

 

(ii)       to
maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor;
or

    -15-

     

    

(c)        
  to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of
the ability of the primary obligor to make payment of such primary obligation against loss in respect thereof.

 

“Contract
Consideration” has the meaning provided in the definition of “Excess Cash Flow.”

 

“Contractual
Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or
other undertaking to which such Person is a party or by which it or any of its property is bound.

 

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

 

“Control
Agreement” means, with respect to any deposit account, securities account, commodity account, securities entitlement or commodity
contract, an agreement, in form and substance reasonably satisfactory to the Administrative Agent, among the Administrative Agent, the
financial institution or other Person at which such account is maintained or with which such entitlement or contract is carried and the
Loan Party maintaining such account or owning such entitlement or contract, effective to grant “control” (within the meaning
of Articles 8 and 9 under the applicable UCC) over such account to the Administrative Agent.

 

“Controlled
Investment Affiliate” means, as to any Person, any other Person which directly or indirectly is in control of, is controlled
by, or is under common control with such Person and is organized by such Person (or any Person controlling such Person) primarily for
making direct or indirect equity or debt investments in Parent Holdings Guarantor, its Subsidiaries or other companies.

 

“Cost
of Acquisition” means, with respect to any Acquisition, as of the date of the consummation of such Acquisition, the sum of
the following (without duplication): (i) the value of the Equity Interests of any Subsidiary to be transferred in connection with such
Acquisition, (ii) the amount of any cash and Fair Market Value of other property (excluding property of the type described in clause
(i), the unpaid principal amount of any debt instrument and Equity Interests of GPB Prime (or any direct or indirect parent company thereof)
given as consideration in connection with such Acquisition as reasonably determined by the Borrower Representative in good faith, (iii)
the amount (determined by using the face amount or the amount payable at maturity, whichever is greater) of any Indebtedness for borrowed
money (including any Capitalized Lease Obligations) assumed by any Loan Party or any Subsidiary in connection with such Acquisition,
(iv) all additional purchase price amounts in the form of earnouts and other contingent obligations that should be recorded on the financial
statements of the Borrowers and their Subsidiaries in accordance with GAAP in connection with such Acquisition, (v) all amounts paid
in respect of covenants not to compete, consulting agreements that should be recorded on the financial statements of the Borrowers and
their Subsidiaries in accordance with GAAP, and other affiliated contracts in connection with such Acquisition, and (vi) the aggregate
Fair Market Value of all other consideration (other than Equity Interests of GPB Prime or any direct or indirect parent company thereof)
given by any Loan Party or any Subsidiary in connection with such Acquisition as determined by the Borrower Representative in good faith;
provided that Cost of Acquisition shall not include (a) the purchase price of floored Motor Vehicles acquired in connection with
such Acquisition and (b) the purchase price of real property acquired in connection with such Acquisition.

    -16-

     

    

“Credit
Documents” means collectively, this Agreement, the Notes, the Guaranty Agreement, the [*****] Guaranty Agreement, the Security
Documents, any Incremental Amendments, the Management Services Subordination Agreements, and all agreements, instruments and documents
evidencing or securing the Obligations and all amendments, modifications and supplements (including Joinder Agreements) thereto; provided,
however, that the definition of “Credit Documents” is not intended to include Swap Agreements or Cash Management Agreements.

 

“Credit
Facilities” means, collectively, the Floor Plan Facility, the Mortgage Facility, the Term Loan Facility, the Delayed Draw Facility,
any given Class of Additional Mortgage Loans and any given Class of Additional Term Loans.

 

“Credit
Parties” means the Administrative Agent, the Lenders, including M&T Bank in its capacity as the lender of the M&T Advances,
and their respective successors and assigns as permitted by the terms of this Agreement.

 

“Credit
Party Expenses” means, without duplication (a) all reasonable and documented out-of-pocket costs and expenses incurred by the
Administrative Agent and its Affiliates, and by the Arranger (with respect to counsel fees, limited to the reasonable and documented
fees, charges, and disbursements of one law firm acting as outside counsel for the Administrative Agent and the Arranger, and one law
firm acting as local counsel for the Administrative Agent and the Arranger in each local jurisdiction where necessary), in connection
with the syndication of the Credit Facilities, the preparation, negotiation, execution, delivery and administration of this Agreement
and the other Credit Documents (including, without limitation, any out-of-pocket fees and expenses subject to reimbursement pursuant
to Section 5.13), or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated
thereby shall be consummated), (b) all reasonable and documented out-of-pocket costs and expenses incurred by the Administrative Agent
relating to the Platform or to Intralinks, SyndTrak or to any other dedicated agency web page on the internet to distribute to the Lenders
and to potential investors any required documentation and financial information regarding the Credit Documents and the Loans, (c) reasonable
and documented taxes and insurance premiums advanced or otherwise paid by the Administrative Agent in connection with the Collateral
or on behalf of any of the Loan Parties, in each case, solely to the extent the Loan Parties are expressly responsible for such advancement
or payment under the terms of the Credit Documents, (d) reasonable and documented out- of-pocket filing and recording costs incurred
by the Administrative Agent in connection with the Collateral, (e) reasonable and documented out-of-pocket costs and expenses for title
insurance premiums, environmental and consulting fees, audit fees, flood certificates, search fees and appraisal fees, in each case under
this clause (e), in connection with the Real Estate Collateral and solely to the extent that the Credit Documents expressly provide that
the Loan Parties are responsible for such costs and expenses in the relevant circumstance incurred by the Administrative Agent and (f)
all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent or any Lender (including the reasonable and
documented fees, disbursements and charges of any counsel to the Administrative Agent and the Lenders) in connection with the enforcement
or protection of its rights in connection with this Agreement and the other Credit Documents, including all such reasonable and documented
out-of-pocket expenses incurred during any workout, restructuring or related negotiations in respect of the Loans.

 

“Cure
Amount” has the meaning provided to such term in Section 7.02 of this Agreement.

 

“Cure
Right” has the meaning provided to such term in Section 7.02 of this Agreement.

 

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

    -17-

     

    

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

 

“Defaulting
Lender” means, subject to Section 2.18.2, any Lender that (a) has failed to (i) fund all
or any portion of its Loans within two (2) Business Days of the date such Loans were required to be funded hereunder, or (ii) pay to
the Administrative Agent, M&T Bank as the provider of the M&T Advances or any other Lender any other amount required to be paid
by it hereunder (including in respect of its participation in M&T Advances) within two (2) Business Days of the date when due, (b)
has notified the Borrowers, the Administrative Agent or M&T Bank as provider of the M&T Advances in writing that it does not
intend to comply with its funding obligations hereunder, or has made a public statement to that effect, (c) has failed, within three
(3) Business Days after written request by the Administrative Agent or the Borrowers, to confirm in writing to the Administrative Agent
and the Borrowers that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease
to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrowers),
or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law,
(ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar
Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any
other state or federal regulatory authority acting in such a capacity, or (iii) become the subject of a Bail-In Action; provided
that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender
or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or
provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs
of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts
or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one
or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be
a Defaulting Lender (subject to Section 2.18.2) upon delivery of written notice of such determination to the Borrowers and each Lender.

 

“Default
Rate” means an interest rate equal to (a) with respect to Base Rate Loans, the Base Rate plus the Applicable Rate, plus
two percent (2%) per annum; and (b) with respect to a LIBOR Rate Loans, the LIBOR Rate plus the Applicable Rate plus
two percent (2%) per annum. For the avoidance of doubt, the Default Rate imposition and calculation of the Default Rate shall be subject
to the terms and conditions set forth in Section 2.05.1 and Section 2.05.2(d) hereof.

 

“Delayed
Draw Borrowing” means a borrowing under the Delayed Draw Facility consisting of simultaneous Delayed Draw Loans of the same
Class and Type made by each of the Lenders pursuant to Section 2.04.

 

“Delayed
Draw Disbursement Procedures” means the procedures set forth on Exhibit D attached hereto.

 

“Delayed
Draw Dollar Cap” means Seventy Million Dollars ($70,000,000), as such amount may be decreased in accordance with Section 2.04.4
or increased pursuant to Section 2.11 of this Agreement.

 

“Delayed
Draw Facility” means the delayed draw loan facility described in Section 2.04 providing for senior secured loans (which may
be either senior secured mortgage loans or senior secured term loans) by the Lenders, as such facility may be increased pursuant to a
Facility Increase.

    -18-

     

    

“Delayed
Draw Facility Commitment” means, as to any Lender, its obligation to make Delayed Draw Loans to the Borrowers hereunder, as
such commitment may be (a) adjusted from time to time pursuant to this Agreement and (b) reduced or increased from time to time pursuant
to (i) assignments by or to such Lender pursuant to an Assignment And Assumption or (ii) an Incremental Amendment. The initial amount
of each Lender’s Delayed Draw Facility Commitment as of the Original Closing Date is the amount specified on Schedule 2.01
under the caption “Delayed Draw Facility Commitment” or, otherwise, in the Assignment And Assumption or Incremental Amendment
pursuant to which such Lender shall have assumed its Delayed Draw Facility Commitment, as the case may be; and “Delayed Draw Facility
Commitments” means the aggregate Delayed Draw Facility Commitments of all of the Lenders.

 

“Delayed
Draw Facility Commitment Percentage” means, as to any Lender, such Lender’s Applicable Percentage under the Delayed Draw
Facility. As to any Lender, its initial Applicable Percentage as of the Original Closing Date shall be the percentage set forth as such
on Schedule 2.01 hereto under the heading or caption “Delayed Draw Facility”.

 

“Delayed
Draw Facility Unused Commitment Fee” has the meaning provided to such term in Section 2.06.3 of this Agreement.

 

“Delayed
Draw Loans” has the meaning provided for such term in Section 2.04 of this Agreement.

 

“Delayed
Draw Mortgage Loans” has the meaning provided for such term in Section 2.04 of this Agreement.

 

“Delayed
Draw Notes” means, collectively, the promissory notes of the applicable Borrowers evidencing (a) the Delayed Draw Mortgage
Loans substantially in the form of Exhibit E-1 attached hereto or (b) the Delayed Draw Term Loans substantially in the form of
Exhibit E-2 attached hereto, in each case, together with all amendments and replacements thereof.

 

“Delayed
Draw Term Loans” has the meaning provided for such term in Section 2.04 of this Agreement.

 

“Demonstrator”
means (a) an otherwise New Vehicle that (i) is either the then-current model year or the prior model year and (ii) has an odometer
reading of less than 7500 miles (provided that such mileage shall result solely from customer test drives and/or the use of such
Motor Vehicle by dealership personnel, its agents and other Persons selected by dealership personnel in their sole discretion from time
to time) and (b) is designated by the applicable Floor Plan Borrower as a “demonstrator” vehicle.

 

“Directors”
means, for any Person, the directors, managers or other members of the governing body of such Person or, if such Person does not
have such a board of directors or other governing body and is owned or managed by a single entity, the Directors of such other entity.

 

“Disposition”
or “Dispose” means the sale, transfer, license, lease or other disposition (including any sale and leaseback transaction)
of any real or personal property by any Person, including any sale, assignment, transfer or other disposition, with or without recourse,
of any notes or accounts receivable or any rights and claims associated therewith; provided that any sale, assignment, transfer
or other disposition of cash and Cash Equivalents shall not constitute a Disposition.

    -19-

     

    

“Disqualified
Stock” means any Equity Interest that, by its terms (or by the terms of any security or other Equity Interest into which it
is convertible or for which it is exchangeable), or upon the happening of any event or condition, (a) matures or is mandatorily redeemable,
pursuant to a sinking fund obligation or otherwise, (b) is redeemable at the option of the holder thereof, in whole or in part, (c) provides
for the scheduled payments of dividends or distributions in cash, or (d) is or becomes convertible into or exchangeable for Indebtedness
or any other Equity Interests that would constitute Disqualified Stock, in each case, prior to the date that is ninety-one (91) days
after the earlier of the then Latest Maturity Date or the date the Loans are no longer outstanding and the Commitments have been terminated.

 

“Dollar,”
 “Dollars,” “U.S. Dollars” and the symbol “$” means lawful money of the United States of
America.

 

“Domestic
Subsidiary” means any direct or indirect Subsidiary that is organized and existing under the Laws of the United States or any
state thereof or under the Laws of the District of Columbia.

 

“Draft”
means a draft by a Manufacturer in accordance with the terms of a Drafting Agreement presented upon a Commercial Account and drawn
against the Floor Plan Facility.

 

“Drafting
Agreement” means an agreement by and between the Administrative Agent and a Manufacturer, entered into for the account of a
Floor Plan Borrower, under which a Manufacturer is entitled to submit Drafts to the Administrative Agent (via ACH electronic transfer
or otherwise) upon the Commercial Account of such Floor Plan Borrower for payment of invoices identifying New Vehicles delivered or shipped
to such Floor Plan Borrower, such agreement to be consistent with the usual customs and practices in effect from time to time for the
floor plan industry.

 

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

 

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

 

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

 

“Eligibility
Date” means, with respect to each Loan Party and each Swap, the date on which this Agreement or any other Credit Document becomes
effective with respect to such Swap. For the avoidance of doubt, the Eligibility Date shall be the date such Swap becomes effective if
this Agreement or any other Credit Document is then in effect with respect to such Loan Party; otherwise, it shall be the Original Closing
Date of this Agreement with respect to a Borrower or with respect to any other Loan Party the date of execution and delivery of the applicable
Credit Documents by such Loan Party unless such Credit Documents specify a subsequent effective date.

    -20-

     

    

“Eligible
Assignee” means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund, and (d) any other Person (other than those
Persons expressly excluded below) approved (each such approval not to be unreasonably withheld or delayed) by (i) the Administrative
Agent, (ii) in the case of any assignment of a Floor Plan Commitment, M&T Bank, and (iii) unless an Event of Default has occurred
and is continuing, the Borrower Representative; provided that the Borrower Representative shall be deemed to have consented to
an assignment unless an objection is delivered to the Administrative Agent within five (5) Business Days after both (I) the Borrower
Representative has received a written request for consent to such assignment and (II) GPB Capital has received a copy of such written
request for consent delivered to the Borrower Representative; provided, further, that notwithstanding the foregoing, the
definition of “Eligible Assignee” shall not include (A) any Defaulting Lender or a Subsidiary thereof, (B) any natural Person
(or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person), or (C) any
Loan Party or any Affiliate or Subsidiary of a Loan Party. For the avoidance of doubt, it shall not be unreasonable for the Borrower
Representative to withhold or delay consent to (x) any assignment that does not assign or participate a pro rata interest in all of the
Credit Facilities held by the assigning Lender (except in the case of a Lender that acquires a Loan or Commitment on a non-pro rata basis
with the other Loans and Commitments, if any, held by such Lender under this Agreement (but solely with respect to the Loans and Commitments
held on a non-pro rata basis)) or (y) any assignment of a Floor Plan Commitment to a Person that is not acceptable to a Manufacturer
(to the extent the applicable Franchise Agreement, Framework Agreement or similar agreement with the applicable Manufacturer provides
such Manufacturer with a right of approval or consent with respect to the Lenders under the Floor Plan Facility).

 

“Eligible
Contract Participant” means an “eligible contract participant” as defined in the CEA and regulations thereunder.

 

“Environmental
Laws” means any and all federal, state, local, and foreign statutes, Laws, regulations, ordinances, rules, judgments, orders,
decrees, permits, licenses, agreements or governmental restrictions relating to the protection of the environment or the release of any
Hazardous Materials into the environment, including those related to wastes, air emissions and discharges to waste systems.

 

“Environmental
Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation,
fines, penalties or indemnities), of any Borrower, any other Loan Party or any of their respective Subsidiaries directly or indirectly
resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment
or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous
Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed
or imposed with respect to any of the foregoing.

 

“Equity
Interests” means, with respect to any Person, the shares of Capital Stock of (or other ownership or profit interests in) such
Person, warrants, options or other rights for the purchase or acquisition from such Person of shares of Capital Stock of (or other ownership
or profit interests in) such Person, securities convertible into or exchangeable for shares of Capital Stock of (or other ownership or
profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such
other interests), and all other ownership or profit interests in such Person, whether voting or nonvoting, and whether or not such shares,
warrants, options, rights or other interests are outstanding on any date of determination.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974.

 

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

    -21-

     

    

“ERISA
Event” means (a) a Reportable Event with respect to a Pension Plan, (b) a withdrawal by any Loan Party or any ERISA Affiliate
from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section
4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c)  a
complete or partial withdrawal by any Loan Party or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer
Plan is in reorganization, (d) the filing of a notice of intent to terminate, the treatment of a Plan amendment as a termination under
Section 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan, (e)
an event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to
administer, any Pension Plan or Multiemployer Plan, or (f) the imposition of any liability under Title IV of ERISA, other than for PBGC
premiums due but not delinquent under Section 4007 of ERISA, upon any Loan Party or any ERISA Affiliate.

 

“Escrow
Agent” means Wilmington Trust Company, a Delaware trust company and any successor escrow agent appointed in accordance with
the terms of the Escrow Agreement.

 

“Escrow
Agreement” means (a) the Escrow Agreement dated as of the Original Closing Date by and between the Administrative Agent, the
Escrow Agent and the Certificate Holders that are parties thereto, and (b) each supplement, amendment, and/or joinder agreement thereto
delivered from time to time.

 

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

 

“Event
of Default” has the meaning given to such term in Article 7 of this Agreement.

 

“Excess
Cash Flow” means, for any period:

 

(i)          Consolidated
EBITDA, minus

 

(ii)         the
sum, without duplication of:

 

(a)         total
interest expense to the extent paid in cash;

 

(b)         consolidated
Cash Taxes of GPB Prime and its Subsidiaries;

 

(c)         without
duplication of clause “(b),” Tax Distributions paid in cash;

 

(d)         the
aggregate amount of payments of principal made during such period on account of Indebtedness (excluding (A) any voluntary prepayments
of the Mortgage Loans, Term Loans, or the Delayed Draw Loans deducted under Section 2.03.4(a) and (B) any mandatory prepayments of the
Mortgage Loans or the Term Loans)) made during such period, in each case from internally-generated cash flow and not otherwise deducted
in determining the amount of prepayment pursuant to Section 2.03.4(a) for any prior period;

 

(e)         the
aggregate amount paid in cash by GPB Prime and its Subsidiaries relating to Permitted Acquisitions, Permitted Investments made pursuant
to Section 6.02(n), capital expenditures, acquisitions of real property by GPB Prime or any of its Subsidiaries, and Tax Distributions
in each case, to the extent that the same was permitted by the terms of this Agreement to be paid or made and, in each case, (A) paid
from internally-generated cash flow and (B) not otherwise deducted in determining the amount of prepayment pursuant to Section 2.03.4(a)
for any prior period;

 

(f)         an
amount equal to the amount of all non-cash credits or income (including, to the extent constituting non-cash credits, amortization of
deferred revenue acquired as a result of any Permitted Acquisition or other Investment permitted hereunder) and cash losses, charges,
expenses, costs and fees that are either added back to Consolidated EBITDA or that were excluded from Consolidated Net Income;

    -22-

     

    

(g)         the
aggregate amount of any premium, make-whole or penalty payments actually paid in cash by GPB Prime or any of its Subsidiaries during
such period that are required to be made in connection with any prepayment of Indebtedness;

 

(h)         cash
expenditures in respect of Swap Agreements during such period to the extent not reflected in the computation of Consolidated EBITDA;

 

(i)          at
the option of the Borrower Representative but without duplication of amounts deducted from Excess Cash Flow in prior periods, (1) the
aggregate consideration required to be paid in cash by GPB Prime or any of its Subsidiaries pursuant to binding contracts (the “Contract
Consideration”) entered into prior to or during such period and (2) any planned cash expenditures by GPB Prime or any of its
Subsidiaries (the “Planned Expenditures”), in the case of each of the preceding clauses (1) and (2), relating to Permitted
Acquisitions or other Investments, acquisitions of real property by GPB Prime or any of its Subsidiaries, capital expenditures, any scheduled
payment of Indebtedness that was permitted by the terms of this Agreement to be incurred and paid or Tax Distributions, in each case,
to be consummated or made, as applicable, during the period of two consecutive Fiscal Quarters following the end of such period (to the
extent expected to be financed with internally-generated cash flow); provided that, to the extent that the aggregate amount of
internally-generated cash flow actually utilized to finance such Permitted Acquisitions or other Investments, acquisitions of real property
by GPB Prime or any of its Subsidiaries, capital expenditures, permitted scheduled payments of Indebtedness that were permitted by the
terms of this Agreement to be incurred and paid or Tax Distributions during such following period of two consecutive Fiscal Quarters
is less than the Contract Consideration and Planned Expenditures, as applicable, the amount of such shortfall shall be added to the calculation
of Excess Cash Flow at the end of such period of two consecutive Fiscal Quarters;

 

(j)          management
fees paid in cash to GPB Prime or one or more designated Affiliates of GPB Prime in accordance with the terms of the Management Services
Agreements during such period to the extent permitted by this Agreement and the Management Services Subordination Agreements and in an
amount not to exceed an aggregate amount of two percent (2%) of Consolidated EBITDA in any Test Period to the extent added back to Consolidated
EBITDA;

 

(k)         any
amounts added back to Consolidated EBITDA or excluded from Consolidated Net Income for such period to the extent paid in cash by any
Borrower or any Subsidiary during such period; and

 

(l)          the
aggregate amount of non-cash adjustments to Consolidated EBITDA for periods prior to the beginning of the applicable Fiscal Year to the
extent paid in cash by any Borrower or any Subsidiary during the applicable Fiscal Year.

 

“Excluded
Property” means collectively:

 

(a)         any
of the following property, solely to the extent (but only to the extent) that an applicable Franchise Agreement, Framework Agreement
or related agreement with a Manufacturer entered into in connection with any Franchise Agreement or Framework Agreement (including, in
each case, any policies and procedures established by the applicable Manufacturer from time to time to the extent enforceable in connection
with such Franchise Agreement, Framework Agreement or other agreement) or consent given by a Manufacturer in connection with such Franchise
Agreement, Framework Agreement or related agreement (or related Manufacturer policies and procedures) prohibits the granting of a security
interest in such property or a violation thereof would occur upon the granting of a Lien in such property: (i) the applicable Franchise
Agreement, Framework Agreement or related agreement, (ii) any contract rights or other privileges (including, without limitation, any
licenses) arising pursuant to such applicable Framework Agreement, Franchise Agreement or other such agreement (or related Manufacturer
policies and procedures) and/or (iii) any proceeds from the sale or transfer of Equity Interests of any Person that directly or indirectly
owns or operates the applicable Franchise;

    -23-

     

    

(b)         any
Equity Interests issued by any Person that, directly or indirectly, owns or operates a Franchise;

 

(c)         any
assets (in each case, other than any agreement that is Excluded Property pursuant to clauses (a) or (b) above) to the extent the pledge
thereof or grant of security interests therein (i) is prohibited or restricted by any applicable Law, rule or regulation or (ii) solely
with respect to any intellectual property, would cause the destruction, invalidation or abandonment of such intellectual property under
applicable Law;

 

(d)         any
(1) contract, license, lease or agreement (in each case, other than any agreement that is Excluded Property pursuant to clauses (a),
(b) or (c) above) or (2) any property the subject of either (x) a purchase money security interest or similar arrangement or (y) a Manufacturer
Security Agreement (provided that, for the avoidance of doubt, this sub-clause (y) shall not apply to such property after the
applicable Lien under such Manufacturer Security Agreement is released and/or such property is no longer subject to the restrictions
under such Manufacturer Security Agreement contemplated under sub-clauses (i) and (ii) below), in each case under the foregoing clauses
(1) and (2), to the extent not prohibited by this Agreement and a grant of a security interest therein (i) would violate or invalidate
such lease, license or agreement or purchase money security interest, similar arrangement or Manufacturer Security Agreement or create
a right of termination in favor of any other party thereto (other than the Loan Parties or any of their Subsidiaries) or (ii) would require
governmental, regulatory or third-party approval, consent or authorization not obtained (without any requirement to obtain such approval,
consent or authorization);

 

(e)        
those assets if and for so long as the burden or cost (including any adverse tax consequences) of obtaining a security interest therein
or perfection thereof exceeds the practical benefit to the Lenders afforded thereby as reasonably determined between the Borrower Representative
and the Administrative Agent;

 

(f)          any
governmental or regulatory licenses, authorizations, certificates, charters, franchises, approvals and consents to the extent a security
interest therein is prohibited or restricted thereby or requires any consent or authorization from a Governmental Authority not obtained
(without any requirement to obtain such consent or authorization);

 

(g)         margin
stock;

 

(h)         letter
of credit rights, except to the extent the security interest therein is accomplished by the filing of a UCC financing statement;

 

(i)          any
 “intent-to-use” trademark applications filed in the United States Patent and Trademark Office for which a statement of use
has not been filed (but only until such statement is filed); provided, however, that “Excluded Property” shall
not include any common law rights with respect to any Trademark described in or subject to such “intent to use” application;

    -24-

     

    

(j)           Equity
Interests in any Foreign Subsidiary or CFC Holdco in excess of (i) 65% of the total issued and outstanding voting Equity Interests of
such Foreign Subsidiary or CFC Holdco and (ii) 100% of the total issued and outstanding non-voting Equity Interests of such Foreign Subsidiary
or CFC Holdco;

 

(k)          Equity
Interests in any Captive Insurance Subsidiary or not-for-profit Subsidiary; and

 

(l)           Service
Loaner Vehicles and Demonstrators subject to Liens incurred under clause (n) of the definition of “Permitted Encumbrances”
(and any proceeds thereof) and not financed under the Floor Plan Facility.

 

provided, however,
that any of the foregoing exclusions in clause (a), (b), (c) and (d) shall not apply if such prohibition has been expressly waived in
writing or such other Person has otherwise expressly consented in writing to the creation hereunder of a security interest in such agreement,
or such prohibition would be rendered ineffective pursuant to Sections 9-406, 9-407 or 9-408 of Article 9 of the UCC, or any other applicable
provision of the UCC, as applicable and as then in effect in any relevant jurisdiction, or any other applicable Law (including the Bankruptcy
Code) or principles of equity; and provided further, that (x) immediately upon the ineffectiveness, lapse or termination of any
such prohibition, such Loan Party shall be deemed to have granted a security interest in all of its rights, title and interests in and
to such contract or agreement as if such prohibition had never been in effect and (y) the foregoing exclusion shall in no way be construed
so as to limit, impair or otherwise affect the Administrative Agent’s unconditional continuing security interest in and liens upon
any rights or interests of a Loan Party in or to the proceeds of, or any monies due or to become due under, any such license, contract
or agreement, or other property referenced in clauses (a), (b) or (c) above, directly or indirectly, including but not limited to the
rights of the Administrative Agent to assert for the benefit of the Secured Parties a security interest in any proceeds of sale thereof
realized by any Loan Party from a sales transaction (whether of assets or Capital Stock) approved by the Manufacturer or other contracting
party asserting a prohibition under clauses (a), (b), (c) or (d) above, except to the extent any such right or interest in or to such
proceeds or monies otherwise constitutes Excluded Property (without giving effect to this proviso).

 

“Excluded
Subsidiary” means (a) any Unrestricted Subsidiary; (b) any Subsidiary to the extent a guarantee by such Subsidiary is prohibited
or restricted by contract (including any requirement to obtain third party consent to the extent not obtained) (so long as either (x)
such contract is in existence on the Original Closing Date or (y) such contract is in existence at the time of acquisition of such Subsidiary
and the prohibition or restriction in such contract is not entered into in contemplation thereof) or applicable Law, rule or regulation
(including any requirement to obtain Governmental Authority consent to the extent not obtained); (c) any not-for-profit Subsidiary; (e)
any Foreign Subsidiary; (f) any CFC Holdco; (g) any Domestic Subsidiary that is a Subsidiary of any Foreign Subsidiary or CFC Holdco;
(h) any Captive Insurance Subsidiary or any Subsidiary the primary assets of which consist of the Equity Interests of a Captive Insurance
Subsidiary and (i) any Subsidiary to the extent the Administrative Agent and the Borrower Representative mutually determine the cost
and/or burden of obtaining a guarantee by such Subsidiary outweigh the practical benefit to the Lenders.

 

“Excluded
Swap Liabilities” means, with respect to any Loan Party, each of its Swap Obligations if, and only to the extent that, all
or any portion of this Agreement or any other Credit Document that relates to such Swap Obligation is or becomes illegal under the CEA,
or any rule, regulation or order of the CFTC, solely by virtue of such Loan Party’s failure to qualify as an Eligible Contract
Participant on the Eligibility Date for such Swap. Notwithstanding anything to the contrary contained in the foregoing or in any other
provision of this Agreement or any other Credit Document, the foregoing is subject to the following provisos: (a) if a Swap Obligation
arises under a master agreement governing more than one Swap, this definition shall apply only to the portion of such Swap Obligation
that is attributable to Swaps for which a guarantee of payment or the granting of a security interest is or becomes illegal under the
CEA, or any rule, regulations or order of the CFTC, solely as a result of the failure by such Loan Party for any reason to qualify as
an Eligible Contract Participant on the Eligibility Date for such Swap, (b) if a co-borrower agreement or a guarantee of a Swap Obligation
would cause such obligation to be an Excluded Swap Liability but the grant of a security interest would not cause such obligation to
be an Excluded Swap Liability, such Swap Obligation shall constitute an Excluded Swap Liability for purposes of the co-borrower agreement
or the guarantee (as applicable) but not for purposes of the grant of the security interest, and (c) if a Swap Obligation would be an
Excluded Swap Liability with respect to one or more of the Loan Parties, but not all of them, the definition of Excluded Swap Liabilities
with respect to each such Loan Party shall only be deemed applicable to (i) the particular Swap Obligations that constitute Excluded
Swap Liabilities with respect to such Loan Party, and (ii) the particular Loan Party with respect to which such Swap Obligations constitute
Excluded Swap Liabilities.

    -25-

     

    

“Excluded Taxes” means
any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient,
(a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed
as a result of such Recipient being organized under the Laws of, or having its principal office or, in the case of any Lender, its applicable
lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection
Taxes, (b) U.S. federal withholding Taxes that are (or would be required to be) imposed on amounts payable with respect to an applicable
interest in a Loan or Commitment pursuant to a Law in effect on the date on which (i) such Recipient acquires such interest in the Loan
or Commitment (other than pursuant to an assignment request by the Borrowers under Section 2.14.2 or Section 10.12) or (ii) such Lender
changes its lending office, except in each case to the extent that, pursuant to Section 2.13, amounts with respect to such Taxes were
payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before
it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.13.7 or 2.13.8, (d)
any U.S. federal withholding Taxes imposed under FATCA, (e) U.S. backup withholding Taxes, (f) Taxes resulting from the gross negligence
or willful misconduct of the Recipient, and (g) Taxes excluded from the definition of Other Taxes.

 

“Existing Credit Facilities”
means certain credit facilities of the Borrowers outstanding as of the Original Closing Date and identified in writing for payoff
on such date. The Existing Credit Facilities were listed on Schedule 1.01(a) to the Existing Credit Agreement.

 

“Existing Sponsor Bridge Loans”
means, collectively, that certain (a) Amended and Restated Subordinated Promissory Note, dated as of November 16, 2016, among Abrams
Capital Partners I, L.P. and the Issuers (as defined therein) party thereto, in an aggregate principal amount of $798,036.25, (b) Amended
and Restated Subordinated Promissory Note, dated as of November 16, 2016, among Abrams Capital Partners II, L.P. and the Issuers (as
defined therein) party thereto, in an aggregate principal amount of $12,209,456.52 and (c) Amended and Restated Subordinated Promissory
Note, dated as of November 16, 2016, among Whitecrest Partners, LP and the Issuers (as defined therein) party thereto, in an aggregate
principal amount of $1,371,818.05.

 

“Extraordinary Receipts”
means any Net Available Proceeds received by GPB Prime or its Subsidiaries (a) in respect of a Casualty Event in excess of Five Million
Dollars ($5,000,000) realized in a single transaction or series of related transactions arising from such Casualty Event which are not
reinvested (or committed to be reinvested) by such Loan Party or such Subsidiary for the repair or replacement of the asset that is the
subject of such Casualty Event or in other assets useful in their business within twelve (12) months after receipt of such proceeds,
(b) without duplication of clause (a) above and with the exception of Permitted Real Estate Sales, in respect of a Disposition in excess
of Two Million Dollars ($2,000,000) in each Fiscal Year arising from any such Disposition or series of related Dispositions of the Loan
Parties (excluding Dispositions permitted pursuant to Section 6.05(a), (b), (c), (d), (g), (j), (k), (l), (m), (n), (o), (p) (q),
(r) or (s)), except to the extent that such proceeds have been reinvested (or committed to be reinvested) by such Loan Party for the
replacement of the assets that are the subject of such Disposition or in other assets useful in their business within twelve (12) months
after receipt of such proceeds and (c) in respect of Indebtedness not permitted under this Agreement to the extent received by any Loan
Party or its Subsidiaries.

    -26-

     

    

“Facility
Increase” has the meaning provided to such term in Section 2.11.1.

 

“Fair
Market Value” shall mean with respect to any asset or group of assets on any date of determination, the value of the consideration
obtainable in a sale of such asset at such date of determination assuming a sale by a willing seller to a willing purchaser dealing at
arm’s length and arranged in an orderly manner over a reasonable period of time having regard to the nature and characteristics
of such asset, as determined in good faith by the Borrower Representative.

 

“FASB
ASC” means the Accounting Standards Codification of the Financial Accounting Standards Board.

 

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

 

“Federal
Funds Rate” means, for any day, the rate per annum, (rounded, if necessary, to the next greater 1/100 of 1%) determined (which
determination shall be conclusive and binding, absent manifest error) by the Administrative Agent to be equal to the weighted average
of the rates on overnight Federal funds transactions with member banks of the Federal Reserve System arranged by Federal funds brokers
on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that
(a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding
Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business
Day, the Federal Funds Rate for such day shall be the average rate charged to the Administrative Agent (in its individual capacity) on
such day on such transactions as determined by the Administrative Agent (which determination shall be conclusive and binding, absent
manifest error).

 

“Federal
Reserve Board” means the Board of Governors of the United States Federal Reserve System as constituted from time to time.

 

“Fee
Letter” means the letter agreement dated October 4, 2017 among the Borrower Representative, GPB Prime, Parent Holdings Guarantor,
M&T Bank, and SunTrust Robinson Humphrey, Inc.

 

“Fiscal
Quarter” means each three (3) month fiscal period of the Borrowers beginning on the first (1st) day of each January, April,
July, and October.

 

“Fiscal
Year” means each 12-month fiscal period of the Borrowers beginning each January 1 and ending on the immediately succeeding
December 31.

 

“Fixed
Charges” means, for any period of determination, for GPB Prime and its Subsidiaries determined on a consolidated basis, the
sum of (without duplication) (a) Consolidated Interest Expense, excluding any interest expense attributable to Vehicle Financing
Indebtedness, and (b) scheduled amortization of the principal of all Indebtedness for borrowed money (other than any balloon or bullet
installment and, for the avoidance of doubt, any scheduled amortization of Vehicle Financing Indebtedness).

    -27-

     

    

“Fixed
Charge Coverage Ratio” means the ratio, for the most recently ended Test Period on or prior to any date of determination, of
(a) Consolidated EBITDA for such period minus (without duplication) (i) Consolidated Interest Expense attributable to Vehicle
Financing Indebtedness, (ii) Non- Financed Maintenance Capital Expenditures, (iii) Cash Taxes, and (iv) Tax Distributions paid in cash
during such period to (b) all Fixed Charges for such period.

 

“Fixed
Charge Coverage Ratio (All Cash Dividends)” means the ratio, for the most recently ended Test Period on or prior to any date
of determination, of (a) Consolidated EBITDA for such period minus (without duplication) (i) management fees in the aggregate
amount of two percent (2%) of Consolidated EBITDA, (ii) Consolidated Interest Expense attributable to Vehicle Financing Indebtedness,
(iii) Non-Financed Maintenance Capital Expenditures, (iv) Cash Taxes, and (v) all Restricted Payments (including Tax Distributions) paid
in cash during such period except to the extent of any Restricted Payment made during such period pursuant to Section 6.07(a)
(other than a Restricted Payment made pursuant to such section (x) by a Loan Party to a Person that does not constitute a Loan
Party or (y) by a Subsidiary to a Person other than GPB Prime or any of its Restricted Subsidiaries) to (b) all Fixed Charges
for such period.

 

“Fleet
Motor Vehicle” means one of a group of New Vehicles sold to a Person (e.g., a rental car agency) which purchases in excess
of ten (10) Motor Vehicles per month for commercial use.

 

“Flood
Laws” means, collectively, (i) the National Flood Insurance Act of 1968, (ii) the Flood Disaster Protection Act of 1973, (iii)
the National Flood Insurance Reform Act of 1994, (iv) the Flood Insurance Reform Act of 2004, and (iv) the Biggert –Waters Flood
Insurance Reform Act of 2012, in each case as now or hereafter in effect or any successor statute thereto, together with all statutory
and regulatory provisions consolidating, amending, replacing, supplementing, implementing or interpreting any of the foregoing, as amended
or modified from time to time.

 

“Floor
Plan Adjustment Date” means each of: (a) the last Business Day of each calendar month; and (b) the first Business Day after
three (3) Business Days’ prior written notice from either the Administrative Agent or M&T Bank to the other Lenders requesting
thereon the scheduling of settlement on account of Floor Plan Committed Loans among the Lenders and M&T Bank.

 

“Floor
Plan Automated System” has the meaning provided to such term in Section 2.01.20 of this
Agreement.

 

“Floor
Plan Borrowers” means (a) the Borrowers listed on Schedule 1.01(b) as of the Closing Date and (b) any other Subsidiaries
that from time to time hold a Franchise and become a Borrower under the Floor Plan Facility pursuant to a Joinder Agreement.

 

“Floor
Plan Commitment” means, as to any Lender, its obligation to (a) make Floor Plan Committed Loans to the Floor Plan Borrowers
hereunder, including M&T Advances and Floor Plan Committed Loans made pursuant to Draft Agreements, and (b) purchase participations
in M&T Advances or funded Drafts, as such commitment may be (x) adjusted from time to time pursuant to this Agreement and (y) reduced
or increased from time to time pursuant to (i) assignments by or to such Lender pursuant to an Assignment And Assumption or (ii) an Incremental
Amendment. The initial amount of each Lender’s Floor Plan Commitment is specified on Schedule 2.01 under the caption “Closing
Date Floor Plan Commitment” or, otherwise, in the Assignment And Assumption or Incremental Amendment pursuant to which such Lender
shall have assumed its Floor Plan Commitment, as the case may be; and “Floor Plan Commitments” means the aggregate Floor
Plan Commitments of all of the Lenders.

    -28-

     

    

“Floor
Plan Commitment Fee” has the meaning provided to such term in Section 2.06.2 of this Agreement.

 

“Floor
Plan Commitment Percentage” means as to any Lender, such Lender’s Applicable Percentage under the Floor Plan Facility.

 

“Floor
Plan Committed Borrowing” means a borrowing consisting of simultaneous Floor Plan Committed Loans of the same Type, a borrowing
advanced by M&T Bank as an M&T Advance subject to pro-rata participations by the Lenders, or the funding of an Overadvance,
all as set forth in Sections 2.01 through 2.02 of this Agreement.

 

“Floor
Plan Committed Loan” has the meaning provided in Section 2.01 and includes an M&T Advance pursuant to Section 2.02 or a
funding under a Draft Agreement pursuant to Sections 2.1.15 through 2.01.18 hereof.

 

“Floor
Plan Committed Loan Notice” means an irrevocable written notice of (a) a Floor Plan Committed Borrowing, (b) a conversion of
Floor Plan Committed Loans from one Type to the other or (c) a continuation of Floor Plan Committed Loans as LIBOR Rate Loans, in each
case, pursuant to Section 2.01, which shall be substantially in the form of Exhibit B-2 or such other form as may be approved
by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the
Administrative Agent), appropriately completed and signed by a Responsible Officer of the Borrower Representative. For the avoidance
of doubt, Floor Plan Committed Loan Notices shall not be applicable to (i) a Floor Plan Committed Loan made in response to submission
of a Draft pursuant to Sections 2.01.15 through 2.01.19 hereof or (ii) a request for the Borrowing of a Floor Plan Committed Loan made
pursuant to a Floor Plan Automated System.

 

“Floor
Plan Dollar Cap” means Three Hundred Sixty Million Dollars ($360,000,000), as such amount may be decreased in accordance with
Section 2.01.12(a), temporarily increased pursuant to Section 2.01.5 or Section 2.01.6, or increased pursuant to Section 2.11 of this
Agreement.

 

“Floor
Plan Facility” means the Floor Plan Facility described in Sections 2.01 and 2.02 providing for Floor Plan Committed Loans to
the Floor Plan Borrowers by the Lenders, as such facility may be increased pursuant to a Floor Plan Increase.

 

“Floor
Plan Increase” has the meaning provided to such term in Section 2.11.1.

 

“Floor
Plan Note” means a promissory note made by the Floor Plan Borrowers to a Floor Plan Lender substantially in the form of Exhibit
F attached hereto.

 

“Foreign
Lender” means a Lender that is not a U.S. Person.

 

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

 

“Fronting
Exposure” means, at any time there is a Defaulting Lender, with respect to M&T Bank as the lender of M&T Advances,
such Defaulting Lender’s Floor Plan Commitment Percentage of outstanding M&T Advances made by M&T Bank other than M&T
Advances as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders in accordance with
the terms hereof.

 

“Framework
Agreement” means a framework agreement, in each case between a Loan Party and a Manufacturer of Motor Vehicles.

    -29-

     

    

“Franchise”
means any dealership that is authorized by or, as the context may require, has the right pursuant to, a Franchise Agreement to sell
or service Motor Vehicles manufactured or distributed by a given manufacturer or distributor, whether or not such dealership is expressly
referred to as a franchise in an applicable Franchise Agreement. For the avoidance of doubt, a Floor Plan Borrower may own and operate
one or more than one Franchise.

 

“Franchise
Agreement” means any dealer franchise agreement, dealer sales and service agreement or similar agreement entered into with
a Manufacturer.

 

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

 

“GAAP”
means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board or such other principles as may be approved by a significant segment of the accounting profession in the United States,
that are applicable to the circumstances as of the date of determination, consistently applied.

 

“Governing
State” means the State of New York.

 

“Governmental
Authority” means the government of the United States of America or any other nation, or of any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national
bodies such as the European Union or the European Central Bank).

 

“GPB
Capital” means GPB Capital Holdings, LLC, a Delaware corporation.

 

“GPB
Prime” has the meaning provided to such term in the introductory statement hereto.

 

“Guarantors”
means, collectively: (a) GPB Prime, in its capacity as guarantor of the Obligations pursuant to, and subject to the terms and conditions
of, the Guaranty Agreement; (b) Parent Holdings Guarantor, in its capacity as guarantor of the Obligations pursuant to, and subject to
the terms and conditions of, the Guaranty Agreement; (c) [*****] Holdings, in its capacity as a guarantor solely of the [*****] Obligations
pursuant to, and subject to the terms and conditions of, the [*****] Guaranty Agreement; (d) each [*****] Borrower, in its capacity as
a guarantor solely of the [*****] Obligations pursuant to, and subject to the terms and conditions of, the [*****] Guaranty Agreement;
(e) each Non- [*****] Borrower, in its capacity as guarantor of the Obligations pursuant to, and subject to the terms and conditions of,
the Guaranty Agreement and (f) each direct or indirect Restricted Subsidiary of GPB Prime that (i) executes a joinder agreement to the
[*****] Guaranty Agreement in its capacity as a guarantor solely of the [*****] Obligations pursuant to, and subject to the terms and conditions
of, the [*****] Guaranty Agreement or (ii) executes a joinder agreement to the Guaranty Agreement in its capacity as a guarantor of the
Obligations pursuant to, and subject to the terms and conditions of, the Guaranty Agreement, in each case under this clause (f), as determined
by such Restricted Subsidiary in the applicable joinder agreement.

 

“Guaranty
Agreement” means (a) the Guaranty Agreement, dated as of the Original Closing Date, made by the Non-[*****] Borrowers, Parent
Holdings Guarantor, and, by Counterpart for Additional Guarantors, GPB Prime, in favor of the Administrative Agent for the benefit of
the Secured Parties and (b) each joinder agreement thereto delivered from time to time.

    -30-

     

    

“Guaranty”
or “Guarantee” means any obligation, direct or indirect, by which a Person undertakes to guarantee, assume or
remain liable for the payment of another Person’s obligations, including but not limited to (a) endorsements of negotiable instruments,
(b) discounts with recourse, (c) agreements to pay upon a second Person’s failure to pay, (d) agreements to maintain the capital,
working capital solvency or general financial condition of a second Person, and (e) agreements for the purchase or other acquisition
of products, materials, supplies or services, if in any case payment therefor is to be made regardless of the non-delivery of such products,
materials or supplies or the non-furnishing of such services.

 

“Hazardous
Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious
or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law.

 

“IEEPA”
means the International Emergency Economic Power Act, 50 U.S.C. §1701 et seq.

 

“Immediate
Family Members” means with respect to any individual, such individual’s child, stepchild, grandchild or more remote descendant,
parent, stepparent, grandparent, spouse, former spouse, qualified domestic partner, sibling, mother-in-law, father-in-law, son-in-law
and daughter-in-law (including, in each case, adoptive relationships) and any trust, partnership or other bona fide estate- planning
vehicle the beneficiaries of which are any of the foregoing individuals or any private foundation or fund that is controlled by any of
the foregoing individuals or any donor-advised fund of which any such individual is the donor.

 

“Increase
Effective Date” has the meaning provided to such term in Section 2.11 of this Agreement.

 

“Incremental
Amendment” has the meaning provided to such term in Section 2.11 of this Agreement.

 

“Incremental
Lender” has the meaning provided to such term in Section 2.11 of this Agreement.

 

“Indebtedness”
means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness
or liabilities in accordance with GAAP:

 

(a)         all
obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements
or other similar instruments;

 

(b)         all
direct or contingent obligations of such Person arising under letters of credit (including standby and commercial), bankers’ acceptances,
bank guaranties, surety bonds and similar instruments;

 

(c)         net
obligations of such Person under any Swap Agreement;

 

(d)         all
obligations of such Person to pay the deferred purchase price of property or services (other than (i) trade payables and accrued expenses
in the ordinary course of business and, in each case, not past due for more than one hundred eighty (180) days after the date on which
such trade payable or accrued expense was created and (ii) any earn-out obligation until such obligation becomes a liability on the balance
sheet of such Person in accordance with GAAP and is not paid after becoming due and payable);

    -31-

     

    

(e)          indebtedness
(excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person (including indebtedness arising
under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person
or is limited in recourse; provided that the amount of such Indebtedness will be the lesser of (i) the Fair Market Value of such
asset at such date of determination and (ii) the amount of such Indebtedness;

 

(f)           any
Capitalized Lease Obligations;

 

(g)          all
obligations of such Person to purchase, redeem, retire or defease any Disqualified Stock in such Person or any other Person, valued,
in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued
and unpaid dividends; and

 

(h)          to
the extent not otherwise included, all Guarantees of such Person in respect of obligations of the type referred to in clauses (a) through
(g) of this definition of a third Person, other than by endorsement of negotiable instruments for collection in the ordinary course of
business or consistent with industry practice;

 

provided that notwithstanding
the foregoing, Indebtedness will be deemed not to include:

 

(i)           Contingent
Obligations incurred in the ordinary course of business;

 

(ii)          reimbursement
obligations under commercial letters of credit; and

 

(iii)         deferred
or prepaid revenues.

 

For purposes of this definition,
the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture that is
itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness
is expressly made non-recourse to such Person. The amount of any net obligation under any Swap Agreement on any date shall be deemed
to be the Swap Termination Value thereof as of such date.

 

“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 Credit Document and (b) to the extent not otherwise described in clause (a), Other Taxes.

 

“Indemnitee”
has the meaning provided to such term in Section 10.08.2 of this Agreement.

 

“Information”
has the meaning provided to such term in Section 10.11.

 

“Initial
Public Offering” means an underwritten primary public offering of the Capital Stock of GPB Prime or a newly-formed direct or
indirect parent company thereof pursuant to an effective registration statement filed with the SEC in accordance with the Securities
Act of 1933 (whether alone or in conjunction with a secondary public offering).

    -32-

     

    

“Insolvency
Proceeding” means, with respect to any referenced Person, any case or proceeding commenced by or against such Person, under
any provision of the Bankruptcy Code or under any other Debtor Relief Laws.

 

“Interest
Payment Date” means (a) with respect to any Class of Mortgage Loans or Term Loans, (i) with respect to any Base Rate Borrowing
thereunder, the last Business Day of each calendar quarter, and (ii) with respect to any LIBOR Borrowing thereunder for a selected Interest
Period, the last day of the Interest Period applicable to such Loan and, in the case of a LIBOR Borrowing with an Interest Period of
more than three (3) months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three
(3) months’ duration after the first day of such Interest Period, and (b) with respect to the Floor Plan Facility, whether a Base
Rate Borrowing or a LIBOR Borrowing, the first Business Day of each calendar month.

 

“Interest
Period” means: (a) with respect to any LIBOR Borrowing of any Class of Mortgage Loans or Term Loans, the period commencing
on the date of such LIBOR Borrowing, or continuation or conversion of such Class of Loans as LIBOR Loans, and ending on the numerically
corresponding day in the calendar month that is one (1), two (2), three (3), or six (6) months thereafter, as the Borrower Representative
may elect (provided that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be
extended to the next succeeding Business Day, unless such next succeeding Business Day would fall in the next calendar month, in which
case such Interest Period shall end on the next preceding Business Day, (ii) any Interest Period that commences on the last Business
Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such Interest Period, and (iii) the Borrowers may not select
any Interest Period which would end after the Maturity Date for the applicable Class of Loans) and (b) with respect to any LIBOR Borrowing
of any Floor Plan Committed Loans, a period of one (1) month (provided that the initial Interest Period under the Floor Plan Facility
shall commence on the first Business Day of the calendar month in which the initial Borrowing of the Floor Plan Committed Loans occurs
and end on the last day of the calendar month in which such initial Borrowing occurs and, thereafter, the Interest Period shall re-set
automatically on the first Business Day of each such consecutive calendar month) without any requirement for notice or election of Interest
Period by or on behalf of the Borrowers. For purposes of clause (a) hereof, the date of a LIBOR Borrowing initially shall be the date
on which such LIBOR Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such
LIBOR Borrowing.

 

“Inventory”
means any “inventory” within the meaning of that term under the Uniform Commercial Code.

 

“Investment”
means, as to any referenced Person, any direct or indirect acquisition or investment by such Person consisting of (a) the purchase
or other acquisition of Capital Stock or other Equity Interests in or securities of another Person, (b) a loan, advance or capital contribution
to, guarantee or assumption of debt of, or purchase or other acquisition of any other debt or equity participation or interest in, another
Person, including any partnership or joint venture interest in such other Person, (c) an Acquisition or (d) any other investment in securities,
deposits, or the obligations of other Persons. For purposes of covenant compliance, the amount of any Investment shall be the amount
actually invested, without adjustment for subsequent increases or decreases in the value of such Investment, less all cash returns,
cash dividends and cash distributions received by such Person in connection with such Investment. Notwithstanding anything else provided
herein, any direct or indirect acquisition or investment consisting of real property by GPB Prime or its Subsidiaries shall not be considered
an “Investment” for any purposes under this Agreement (provided that if such acquisition or investment is not limited
to the acquisition of, or investment in, real property, the exception under this sentence shall be limited to the portion of such acquisition
or investment corresponding to the investment amount attributable to real property acquired in connection therewith).

    -33-

     

    

“Investment
Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s or BBB- (or the equivalent)
by S&P, or an equivalent rating by any other Rating Agency selected by the Borrower Representative.

 

“Investment
Grade Securities” means:

 

(a)         securities
issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality thereof (other than
Cash Equivalents);

 

(b)         debt
securities or debt instruments with an Investment Grade Rating, but excluding any debt securities or debt instruments constituting loans
or advances among GPB Prime and its Subsidiaries;

 

(c)         investments
in any fund that invests substantially all of its assets in investments of the type described in clauses (a) and (b) of this definition
which fund may also hold immaterial amounts of cash pending investment or distribution; and

 

(d)         corresponding
instruments in countries other than the United States customarily utilized for high quality investments.

 

“IRS”
means the United States Internal Revenue Service.

 

“Joinder
Agreement” means each Joinder Agreement and Counterpart, substantially in the form of Exhibit G, executed and delivered
by a Subsidiary or any other Person to the Administrative Agent, for the benefit of the Secured Parties.

 

“Latest
Maturity Date” means, at any date of determination, the latest maturity or expiration date applicable to any Loan or Commitment
hereunder at such time, including the latest maturity or expiration date of any Additional Loan.

 

“Laws”
means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances,
codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental
Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed
duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not
having the force of law.

 

“LC
Agreement” means, with respect to any Letter of Credit, such Letter of Credit, any amendments thereto, any documents delivered
in connection therewith, any application therefor, and any agreements, instruments, guarantees or other documents (whether general in
application or applicable only to such Letter of Credit) governing or providing for (a) the rights and obligations of the parties concerned,
including reimbursement and indemnity obligations and obligations to pay fees and charges, or (b) any collateral security for such obligations.

 

“LC
Bank” means any Lender or Affiliate of a Lender that has issued or subsequently issues a Letter of Credit from time to time
for the account of a Borrower, regardless of whether such LC Bank ceases to be a Lender or Affiliate of a Lender after such Letter of
Credit is issued, but excluding for the avoidance of doubt any Letter of Credit issued, amended, renewed, or extended by a Lender or
its Affiliates after its Commitments have been fully cancelled in accordance with the terms of this Agreement or after it has assigned
all of its rights under the Credit Facilities established by this Agreement.

    -34-

     

    
“Lenders”
has the meaning specified in the introductory paragraph hereto and, as the context requires, includes M&T Bank in its capacity
as lender of the M&T Advances.

 

“Lending Office”
means, as to any Lender, the office or offices of such Lender described as such in such Lender’s Administrative Questionnaire,
or such other office or offices as a Lender may from time to time notify the Borrowers and the Administrative Agent. Unless the context
otherwise requires each reference to a Lender shall include its applicable Lending Office.

 

“Letters of Credit”
means, collectively (a) any letter of credit issued by an LC Bank for the account of any of the Borrowers, and (b) the standby letter
of credit no. SB1614620001 issued by M&T Bank as LC Bank for the account of Automile Holdings for the benefit of Federated Mutual
Insurance Company having a stated face amount of $700,000.00; provided that the aggregate face amounts of all Letters of Credit
(including Letters of Credit issued for the account of [*****] Borrowers and Non-[*****] Borrowers) issued and at any time outstanding
shall not exceed Two Million Dollars ($2,000,000.00).

 

“LIBOR” means
the rate per annum (rounded upwards, if necessary, to the nearest 1/16th of 1%) obtained by dividing (a) the rate per annum reported
on Reuters Screen LIBOR 01 Page (or any successor thereto, or any other service selected by the Administrative Agent which has been nominated
by ICE Benchmark Administration (or any successor administrator of LIBOR rates) as an authorized information vendor for the purpose of
displaying such rates on the basis of the offered rates for deposits in Dollars, for a period of time equal to the relevant interest
period (see LIBOR Rate definition below), at approximately 11:00 a.m. London, England time (or as soon thereafter as practicable) two
(2) Business Days prior to the first day of an Interest Period, by (b) a percentage equal to one hundred percent (100%) minus the stated
maximum rate of all reserves required to be maintained against “Eurocurrency Liabilities” as specified in Regulation D (or
against any other category of liabilities which includes deposits by reference to which the interest rate on LIBOR Rate loans is determined
or any category of extensions of credit or other assets which includes loans by a non-United States office of a bank to United States
residents) on such date to any member bank of the Federal Reserve System. Notwithstanding any provision above: (a) in the event at any
time or from time to time the applicable LIBOR utilized for determining the interest rate for any Credit Facility shall, at any time,
be less than zero (0.00), such LIBOR shall be deemed to be zero (0.00) for all purposes of this Agreement, (b) the practice of rounding
to determine LIBOR may be discontinued at any time in the sole discretion of the Administrative Agent and (c) if the rate described above
is not available on any applicable interest determination date, then LIBOR shall be determined by the Administrative Agent in accordance
with such other method as Administrative Agent may use to determine LIBOR for other credit facilities.

 

“LIBOR Borrowing”
means each unpaid principal balance of a Loan which accrues interest at the LIBOR Rate plus the Applicable Rate.

 

“LIBOR Rate”
means (a) with respect to the Mortgage Facility, the Term Loan Facility, and the Delayed Draw Facility, for any LIBOR Borrowing for
an Interest Period, LIBOR determined for such Interest Period, (b) with respect to the Floor Plan Facility, LIBOR determined for each
one-month Interest Period (provided that the LIBOR Rate for the initial Interest Period under the Floor Plan Facility shall be
based on the LIBOR Rate in effect two (2) London Banking Days before the first Business Day of the calendar month the initial Borrowing
under the Floor Plan Facility occurs and, thereafter, the applicable LIBOR Rate for the Floor Plan Facility shall be adjusted monthly
on the first Business Day of each consecutive calendar month commencing thereafter (without any requirement for notice or election by
or on behalf of the applicable Borrowers) based on the LIBOR Rate in effect two (2) London Banking Days before the first Business Day
of the applicable calendar month) and (c) for any interest calculation with respect to a Base Rate Loan on any date, LIBOR determined
for a one-month Interest Period commencing that day.

    -35-

     

    

 “LIBOR
Rate Loan” means a Loan that bears interest based on the LIBOR Rate.

 

“Lien” means
any mortgage, deed of trust, pledge, lien, security interest, charge or other encumbrance or security arrangement of any nature whatsoever,
whether voluntarily or involuntarily given, including but not limited to any conditional sale or title retention arrangement, and any
assignment, deposit arrangement or lease intended as, or having the effect of, security.

 

“Loan” means
a Floor Plan Committed Loan, including an M&T Advance, a Closing Date Mortgage Loan, a Closing Date Term Loan, a Delayed Draw Mortgage
Loan, a Delayed Draw Term Loan, an Additional Mortgage Loan or an Additional Term Loan, as the context may require. “Loans”
means, collectively, all of such Loans.

 

“Loan Parties”
means, collectively, the Borrowers and the Guarantors (including Persons that become Borrowers or Guarantors after the Original Closing
Date).

 

“Loan Year”
means a period of twelve consecutive calendar months beginning with the first full calendar month following the Original Closing Date.

 

“London Banking
Day” means any day on which dealings in Dollar deposits are carried on by banking institutions in the London interbank eurodollar
market.

 

“M&T Advances”
has the meaning provided to such term in Section 2.02.1.

 

“M&T Bank”
means Manufacturers and Traders Trust Company, a New York banking corporation, and its successors and permitted assigns.

 

“Management
Services Agreement” means, collectively, the Management Services Agreement dated on or about even date herewith by and between
GPB Prime and AMR RE Holdings and the Management Services Agreement dated on or about even date herewith by and between GPB Prime and
Parent Holdings Guarantor.

 

“Management Services
Subordination Agreements” means, collectively, the respective subordination agreements in form and substance satisfactory to
the Administrative Agent and the Lenders, between GPB Prime (and/or one or more Affiliates of GPB Prime which has been designated by
GPB prime to receive management fees under the Management Services Agreement) and the Administrative Agent pursuant to which the payments
by AMR RE Holdings and Parent Holdings Guarantor, respectively, to GPB Prime or one or more designated Affiliates of GPB Prime under
the Management Services Agreements are subordinated to final cash payment in full of the existing and future Obligations on terms and
conditions satisfactory to the Administrative and the Required Lenders.

 

“Manufacturer”
means a Motor Vehicle manufacturer with which a Floor Plan Borrower has an agreement to market vehicles, or a manufacturer-appointed
wholesale distributor of such vehicles.

 

“Manufacturer Security
Agreement” means any agreement pursuant to which a Floor Plan Borrower grants any Liens and/or rights of set-off in favor of
a Manufacturer on amounts owing in connection with Motor Vehicles and Motor Vehicle parts purchased from such Manufacturer in the ordinary
course of business.

 

“Manufacturer’s
Certificates” means all Manufacturer’s certificates of origin, Manufacturer’s statements of origin, certificates
of title, certificates of ownership and any other documents evidencing ownership of a Motor Vehicle or the transfer of ownership of a
Motor Vehicle from a Manufacturer or another Franchise.

    -36-

     

    

“Material Adverse
Effect” means (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties or
financial condition of the Loan Parties and their Subsidiaries taken as a whole, (b) a material adverse effect on the ability of the
Loan Parties (taken as a whole) to perform their payment obligations under the Credit Documents or (c) a material adverse effect upon
the rights and remedies of the Lenders or the Administrative Agent under the Credit Documents.

 

“Material Contract”
means any contract of GPB Prime or its Subsidiaries the termination of which could reasonably be expected to have a Material Adverse
Effect.

 

“Maturity Date”
means, (i) with respect to the Floor Plan Committed Loans, Closing Date Mortgage Loans, Delayed Draw Mortgage Loans, Closing Date
Term Loans and Delayed Draw Term Loans, February 24, 2022 (the “Original Maturity Date”), and (ii) with respect to
any Additional Loans, the final maturity date as specified in the applicable Incremental Amendment, provided, however,
that if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day.

 

“Maximum Rate”
has the meaning provided to such term in Section 2.05.3.

 

“Moody’s”
means Moody’s Investors Service, Inc. and any successor to its rating agency business.

 

“Mortgage Facility”
means the senior secured mortgage term loan facility described in Section 2.03(a) providing for Mortgage Loans to the applicable
Borrowers by the Lenders, as such facility may be increased pursuant to a Facility Increase.

 

“Mortgage Facility
Commitment” means, as to any Lender, its obligation to make Mortgage Loans under the Mortgage Facility to the Borrowers hereunder,
as such commitment may be (a)  adjusted from time to time pursuant to this Agreement and (b) reduced or increased from time
to time pursuant to (i) assignments by or to such Lender pursuant to an Assignment And Assumption or (ii) an Incremental Amendment. The
initial amount of each Lender’s Mortgage Facility Commitment is specified on Schedule 2.01 under the heading or caption
 “Mortgage Facility Commitment” or, otherwise, in the Assignment And Assumption or Incremental Amendment pursuant to which
such Lender shall have assumed its Mortgage Facility Commitment, as the case may be; and “Mortgage Facility Commitments”
means the aggregate Mortgage Facility Commitments of all of the Lenders.

 

“Mortgage Loan Borrowing”
means a borrowing consisting of simultaneous Mortgage Loans of the same Class and Type.

 

“Mortgage Loan Notes”
means, collectively, the promissory notes of the applicable Borrowers evidencing the Mortgage Loans under the Mortgage Facility substantially
in the form of Exhibit H attached hereto, together with all amendments and replacements thereof.

 

“Mortgage
Loans” means, collectively, the Closing Date Mortgage Loans, the Delayed Draw Mortgage Loans and the Additional Mortgage Loans,
in each case, as increased by any applicable Facility Increase.

 

“Mortgages”
means, collectively, the deeds of trust, trust deeds and mortgages made by the Loan Parties in favor or for the benefit of the Administrative
Agent. Notwithstanding any provision in this Agreement to the contrary, it is understood and agreed that if pursuant to the applicable
state law a mortgage Tax, intangibles or similar Tax will be owed on the full amount of the Indebtedness evidenced hereby, then the amount
secured by the applicable mortgage or deed of trust shall be limited to an amount not greater than 110.0% of the appraised value of the
Real Property to be secured by such mortgage or deed of trust.

    -37-

     

    

“Motor Vehicle”
means any automobile, truck, van or recreational vehicle trailer (including any such recreational vehicle trailer marketed or manufactured
by Airstream, Inc.) approved for highway use by any State of the United States.

 

“Motor Vehicle
Casualty Event” means any loss of or damage to any Motor Vehicle financed under the Floor Plan Facility for which any Loan
Party receives casualty insurance proceeds.

 

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

 

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

 

“NADA” means
the National Automobile Dealers Association.

 

“Net Available Proceeds”
means,

 

(1)         with
respect to any Disposition, any Casualty Event or any Motor Vehicle Casualty Event, as applicable, the aggregate cash and Cash Equivalents
received by GPB Prime or any of its Subsidiaries in respect of any Disposition, Casualty Event or Motor Vehicle Casualty Event, as applicable,
including any cash and Cash Equivalents received upon the sale or other disposition of any non-cash consideration received in any Disposition,
net of the reasonable and documented out-of-pocket costs relating to such Disposition, Casualty Event or Motor Vehicle Casualty Event,
as applicable, and the sale or disposition of such non-cash consideration, including legal, accounting and investment banking fees, payments
made in order to obtain a necessary consent or required by applicable Law, brokerage and sales commissions, , the amount of any purchase
price or similar adjustment claimed by any Person to be owed by GPB Prime or any of its Subsidiaries, until such time as such claim will
have been settled or otherwise finally resolved, or paid or payable by GPB Prime or any of its Subsidiaries, in either case in respect
of such Disposition, Casualty Event or Motor Vehicle Casualty Event, as applicable, and other reasonable and documented out-of-pocket
fees and expenses, including title and recordation expenses, Taxes paid or payable as a result thereof or any transactions occurring
or deemed to occur to effectuate a payment under this Agreement, amounts required to be applied to the repayment of principal, premium,
if any, and interest on Indebtedness secured by a Lien on such assets and required to be paid as a result of such transaction and any
deduction of appropriate amounts to be provided by GPB Prime or any of its Subsidiaries as a reserve in accordance with GAAP against
any liabilities associated with the asset disposed of in such transaction and retained by GPB Prime or any of its Subsidiaries after
such Disposition thereof, including liabilities related to environmental matters or against any indemnification obligations associated
with such transaction; and

 

(2)         with
respect to the incurrence or issuance of any Indebtedness by GPB Prime or any of its Subsidiaries, the excess, if any, of (i) the sum
of the cash and Cash Equivalents received in connection with such incurrence or issuance over (ii) all Taxes paid or reasonably estimated
to be payable, and all reasonable and documented out-of-pocket fees (including investment banking fees, attorneys’ fees, accountants’
fees, underwriting fees and discounts), commissions, costs and other reasonable and documented out-of-pocket expenses incurred, in each
case by GPB Prime or any of its Subsidiaries in connection with such incurrence or issuance.

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“New Vehicle”
means a Motor Vehicle, other than a Service Loaner Vehicle, which (a) has never been owned except by a Manufacturer, distributor
or dealer, (b) has been either (i) purchased by a Floor Plan Borrower directly from the Manufacturer or (ii) swapped or purchased from
another Franchise and, in each case under this clause (ii), accompanied by a Manufacturer’s statement of origin, (c) has never
been registered (except, to the extent approved as set forth in Section 2.01.1(e), as a Demonstrator).

 

“New Vehicles Allocation”
means up to $298,000,000 of the Floor Plan Commitments which may be borrowed to finance the purchase of New Vehicles and, to the
extent permitted under Section 2.01.1(e) hereof, Demonstrators, as such amount may be increased from time to time as set forth in Section
2.11.3(b).

 

“Non-Consenting
Lender” means any Lender that does not approve any consent, waiver or amendment that (a) requires the approval of all Lenders
or all affected Lenders (or all Lenders or all affected Lenders with respect to a certain Class of Loans or Commitments) in accordance
with the terms of Section 10.01 and (b) has been approved by the Required Lenders.

 

“Non-Financed Maintenance
Capital Expenditures” means, with respect to any Person for any applicable period, the maintenance capital expenditures of
such Person made during such period paid from cash funds, but excluding any capital expenditures paid from proceeds of Indebtedness,
a sale of Equity Interests (including a contribution to the capital of GPB Prime), a Disposition of assets permitted by this Agreement
or a Casualty Event.

 

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

 

“Non-[*****]
Borrowers” means, collectively, all Borrowers except the [*****] Borrowers.

 

“Non-[*****]
Floor Plan Borrowers” means, collectively, all Floor Plan Borrowers except the [*****] Borrowers.

 

“Non-[*****]
Obligations” means, collectively, (a) all of the obligations of the Non- [*****] Borrowers to (i) the Credit Parties, M&T
Bank or any of their Affiliates, whenever arising, under this Agreement or any other Credit Documents, including without limitation all
unpaid principal, accrued interest, fees, Credit Party Expenses, payments owed to M&T Bank in accordance with the Fee Letter, (ii)
to the Credit Parties, M&T Bank, or any of their Related Parties on account of indemnification and reimbursement duties and obligations;
(iii) any Swap Provider under or in connection with any Swap Obligations; (iv) any LC Bank under any LC Agreement in connection with
any Letters of Credit (subject to the maximum aggregate face amount of such Letters of Credit referenced in the definition thereof),
including reimbursement and indemnification obligations and obligations to pay fees and charges; and (v) any Cash Management Bank arising
out of or related to Cash Management Products, including any reimbursement, repayment or indemnity obligations, and (b) all of the obligations
of the Borrower Representative to the Credit Parties, M&T Bank or any of their Related Parties on account of any fees, Credit Party
Expenses, reimbursement, repayment or indemnity obligations under the Credit Documents, including but not limited to the obligations
described in Section 2.19 hereof; including, in each case, interest and fees that accrue during any Insolvency Proceedings, regardless
of whether such interest or fees are allowed claims in such proceedings; provided, however, that the Non-[*****] Obligations
of a Loan Party shall exclude any Excluded Swap Liabilities with respect to such Loan Party.

 

“Note” means
a Floor Plan Note, a Mortgage Loan Note, a Term Loan Note, or a Delayed Draw Note, as the context requires. The “Notes” means,
collectively, all of the Notes.

    -39-

     

    

“Obligations”
means, collectively, the [*****] Obligations and the Non-[*****] Obligations.

 

“OFAC” mean
the Office of Foreign Assets Control of the United States Department of the Treasury.

 

“Organization Documents”
means (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable
constitutive documents with respect to any jurisdiction), (b) with respect to any limited liability company, the certificate or articles
of formation or organization and operating agreement, and (c) with respect to any partnership, joint venture, trust or other form of
business entity, the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument,
filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority
in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of
such entity.

 

“Original Closing
Date” means February 24, 2017.

 

“Original Closing
Date Transactions” means, collectively, (a) the execution of the Existing Credit Agreement and the other Existing Credit Documents,
(b) the funding of the initial Floor Plan Committed Loans, the Closing Date Term Loans and the Closing Date Mortgage Loans, (c) the refinancing
of the Existing Credit Facilities, the Existing Sponsor Bridge Loans and certain other Indebtedness of the Borrowers and their Subsidiaries
outstanding at such date, (d) the payment of one or more distributions to the equity holders of Parent Holdings Guarantor on or around
the Original Closing Date (the “Specified Original Closing Distribution”), (e) the consummation of any other transactions
in connection with the foregoing (including, without limitation, the acquisition of the Acquired Dealers and any related Real Property),
and (f) the payment of fees and expenses incurred in connection with any of the foregoing.

 

“Original Maturity
Date” has the meaning provided to such term in the definition of “Maturity Date.”

 

“Other Connection
Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient
and the jurisdiction imposing such Tax (other than connections arising solely from (and that would not have existed but for) 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 Credit Document).

 

“Other Taxes”
means all present or future stamp, court, documentary, intangible, recording, filing or similar Taxes that arise from any payment
made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest
under, or otherwise with respect to, any Credit Document, except any such Taxes that are Other Connection Taxes imposed with respect
to an assignment, grant of a participation, designation of a new office for receiving payments by or on account of a Borrower or other
transfer (other than an assignment made pursuant to Section 2.14.2 or Section 10.12).

 

“Out of Balance”
means, with respect to a Floor Plan Committed Loan, the outstanding balance thereof has not been paid in accordance with Section
2.01.11.

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“Outstanding Amount”
means, (a) with respect to Floor Plan Committed Loans, including M&T Advances, on any date, the aggregate outstanding principal
amount thereof after giving effect to any borrowings and prepayments or repayments of Floor Plan Committed Loans and M&T Advances,
as the case may be, occurring on such date; (b) with respect to Mortgage Loans and Term Loans of any Class, the aggregate outstanding
principal amount thereof after giving effect to the borrowing thereof and any prepayments or repayments of Mortgage Loans or Term Loans
of such Class, as the case may be, on such date; and (c) with respect to Delayed Draw Loans of any Class on any date, the aggregate outstanding
principal amount thereof after giving effect to any borrowings or prepayments or repayments of Delayed Draw Loans of such Class on such
date.

 

“Parent Holdings
Guarantor” has the meaning provided to such term in the introductory statement hereto.

 

“Participant”
has the meaning provided to such term in Section 10.03 of this Agreement.

 

“Participant Register”
has the meaning provided to such term in Section 10.03 of this Agreement.

 

“Participation”
means an undivided participation interest sold by a Lender, in accordance with the provisions of Section 10.03, in such Lender’s
Commitments, Loans and rights and obligations under this Agreement and the other Credit Documents.

 

“PBGC” means
the Pension Benefit Guaranty Corporation.

 

“Pension Act”
means the Pension Protection Act of 2006.

 

“Pension Funding
Rules” means the rules of the Code and ERISA regarding minimum required contributions (including any installment payment thereof)
to Pension Plans and set forth in, with respect to plan years ending prior to the effective date of the Pension Act, Section 412 of the
Code and Section 302 of ERISA, each as in effect prior to the Pension Act and, after the effective date of the Pension Act, Sections
412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.

 

“Pension Plan”
means any employee pension benefit plan (including a Multiple Employer Plan or a Multiemployer Plan) that is maintained or is contributed
to by any Loan Party and any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the minimum funding standards
under Section 412 of the Code.

 

“Permitted Acquisition”
means any Acquisition permitted by Section 6.12.

 

“Permitted Cure
Securities” means any equity security of GPB Prime or Parent Holdings Guarantor, in each case other than Disqualified Stock.

 

“Permitted Encumbrances” means, collectively:

 

(a)         Liens
for Taxes and any other assessments, governmental levies or similar charges incurred in the ordinary course of business and which are
not yet due and payable, or if due and payable, (i) are being contested in good faith and by appropriate and lawful actions diligently
taken (but only so long as such actions could not subject any Secured Party to any civil or criminal penalties or liabilities) and for
which reserves or other appropriate provisions, if any, as shall be required by GAAP, shall have been made and (ii) which shall be paid
in accordance with the terms of any final non-appealable judgments or orders relating thereto within thirty (30) days after the entry
of such judgments or orders;

    -41-

     

    

(b)            pledges
or deposits made in the ordinary course of business to secure payment of worker’s compensation, or to participate in any fund in
connection with worker’s compensation, unemployment insurance, old-age pensions, other social security programs or similar program
or to secure liability to insurance carriers under insurance or self-insurance agreements or arrangements;

 

(c)             Liens
of mechanics, materialmen, warehousemen, carriers, or other like Liens, securing obligations incurred in the ordinary course of business
that are not yet due and payable and Liens of landlords securing obligations to pay lease payments that are not yet due and payable or
in default, or if such Liens are due and payable, (i) are being contested in good faith and by appropriate and lawful proceedings diligently
conducted and (ii) for which such reserves or other appropriate provisions, if any, as required by GAAP shall have been made and (iii)
which shall be paid in accordance with the terms of any final non-appealable judgments or orders relating thereto within thirty (30)
days after the entry of such judgments or orders;

 

(d)            pledges
or deposits made in the ordinary course of business to secure performance of bids, tenders, contracts (other than for the repayment of
borrowed money) or leases, not in excess of the aggregate amounts due thereunder, or to secure statutory obligations, or surety, appeal,
indemnity, performance or other similar bonds required in the ordinary course of business;

 

(e)             (i)
encumbrances consisting of zoning restrictions, easements, rights-of-way, building code laws, covenants, other agreements of record,
encroachments, protrusions or other restrictions on the use of real property, (ii) with respect to real property not subject to a Mortgage,
(1) defects in title to such real property and (2) Liens and encumbrances affecting such real property that are not known by GPB Prime
or its Subsidiaries, as applicable, and not discoverable by a search of the public records, in each case of the foregoing clauses (i)
and (ii), none of which materially impairs the use of such real property and (iii) with respect to Real Estate Collateral, (1) any exceptions
listed on title insurance policies accepted by the Administrative Agent with respect to such Real Estate Collateral and (2) matters that
are disclosed by surveys received by and reasonably acceptable to the Administrative Agent;

 

(f)             (i)
Liens on assets of a Person which is merged into or acquired by a Loan Party on or after the date of this Agreement and (ii) Liens on
assets acquired after the date of this Agreement; provided, in each case, that (w) such merger or acquisition is made in compliance
with this Agreement, (x) such Liens existed at the time of such merger or acquisition and were not created in anticipation thereof, (y)
no such Lien covers any other property or assets of any Loan Party (other than proceeds of such acquired assets) and (z) the principal
amount of any Indebtedness secured thereby is not increased from the amount outstanding immediately before such merger or acquisition;

 

(g)             Liens
created by or resulting from any litigation or legal proceedings which are currently being contested in good faith by appropriate and
lawful proceedings diligently conducted and for which such reserves or other appropriate provisions, if any, as shall be required by
GAAP shall have been made and Liens arising out of judgments or orders for the payment of money which do not constitute an Event of Default
hereunder;

 

(h)            Liens
placed upon personal property constituting fixed assets or equipment to secure all or a portion of the purchase price thereof (including,
without limitation, Capitalized Lease Obligations), provided that any such Lien shall not encumber any other property of any Loan Party
(other than (i) accessions to such property (except accessions of real property to personal property) and (ii) proceeds and products
of the foregoing) and the Indebtedness secured by any such Lien shall not be otherwise prohibited by the terms of this Agreement; provided,
however, that individual financings of assets provided by one lender may be cross collateralized to other financings of assets
provided by such lender (or its affiliates), excluding any assets securing the Obligations;

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(i)         other
Liens incidental to the conduct of the Loan Parties’ businesses or the ownership of their respective properties and assets which
were not incurred in connection with the borrowing of money or the obtaining of advances or credit, and which do not in the aggregate
materially detract from the value of the Loan Parties’ properties or assets and or which do not materially impair the use thereof
in the operation of the Loan Parties’ business;

 

(j)         Liens
securing the Obligations;

 

(k)        precautionary
financing statements filed in connection with leases of equipment which pertain solely to such leased equipment;

 

(l)         Liens
in existence on the date hereof and listed on Schedule 1.02;

 

(m)       purchase
options, rights of first refusal and other Liens (including, without limitation, certain rights of set-off and title retention), as applicable,
in favor of a Manufacturer arising under a Framework Agreement, Franchise Agreement or a Manufacturer Security Agreement or the documents
executed and delivered in connection with any of the foregoing; provided that any Lien under a Manufacturer Security Agreement
arising in connection with the sale of a Motor Vehicle to the applicable Floor Plan Borrower that is financed under the Floor Plan Facility
shall be released concurrently with the receipt by the Manufacturer of payment in full for such Motor Vehicle;

 

(n)        Liens
consisting of security interests in Service Loaner Vehicles and Demonstrators securing Indebtedness of the applicable Floor Plan Borrower
incurred under a Service Loaner Vehicle or Demonstrator financing program, as applicable, with the applicable Manufacturer or any financial
affiliate of such Manufacturer with respect to such Service Loaner Vehicles or Demonstrators, as applicable; provided that any
such Lien shall not extend to any property of any Loan Party other than the applicable Service Loaner Vehicles or Demonstrators financed
under such program, all keys, bills of lading, certificates of origin, manufacturer statements of origin and other title documentation
related to the applicable Service Loaner Vehicles or Demonstrators financed under such program, all accessions, parts, accessories and
equipment attached to the applicable Service Loaner Vehicles or Demonstrators financed under such program and, in each case, any proceeds
of the same, or shall be the subject of an intercreditor agreement reasonably satisfactory to the Administrative Agent between the provider
of such Service Loaner Vehicle or Demonstrator financing program and the Administrative Agent;

 

(o)        the
modification, replacement, renewal or extension of any Lien permitted by clauses (f), (h), (j) and (l) above; provided that (i)
the Lien does not extend to any additional property, other than (A) after-acquired property that is affixed or incorporated into the
property covered by such Lien and (B) proceeds and products thereof, and (ii) the renewal, extension or refinancing of the obligations
secured or benefited by such Liens is permitted by Section 6.02 (to the extent constituting Indebtedness);

 

(p)        any
interest or title (and all encumbrances and other matters affecting such interest or title) of a lessor or sublessor under any lease
permitted hereunder;

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(q)         licenses,
sublicenses, leases or subleases granted to third parties in the ordinary course of business or not materially interfering with the business
of the Loan Parties; and

 

(r)         other
Liens securing obligations in an aggregate outstanding principal amount (as of the date any such Lien is incurred) not to exceed $5,000,000
(of which no more than $2,000,000 may consist of Liens on the Collateral that are not junior to the Liens securing the Credit Facilities)
and any Permitted Refinancing thereof.

 

“Permitted Investment”
means any Investment permitted by Section 6.02.

 

“Permitted Real
Estate Sales” means a Disposition by any Borrower of any Real Property mortgaged to secure any of the Credit Facilities; provided
that either (i) the Borrowers substitute one or more unencumbered Real Properties (subject, however, to environmental due diligence
reasonably satisfactory to the Required Lenders and to the other requirements set forth in Section 5.15.3 hereof, and provided that the
substitute Real Property shall be fee-owned Real Property if it is to replace fee-owned Real Property) for use as Collateral of equal
or greater value in the aggregate than the Real Property Disposed of, or (ii) the Borrowers prepay the applicable Mortgage Loan in an
amount not less than the greater of (x) 85% of the Net Available Proceeds received from such Disposition and (y) 85% of the latest appraised
value of the subject Real Property. The full amount of the remaining Net Available Proceeds of Permitted Real Estate Sales in excess
of the applicable amounts referenced in clauses “(x)” and “(y)” of this definition shall be either applied to
repayment of the Obligations pursuant to Section 2.03.4(b) hereof or, within 12 months after receipt, reinvested in the business operations
of the Borrowers (including dealership operations or assets or acquisition or improvement of real property related to dealership operations),
and pending such reinvestment held as on the Borrower’s books as goodwill. For the avoidance of doubt, such Net Available Proceeds
of Permitted Real Estate Sales shall not be invested in any business outside of the ordinary course of business of the Borrowers as presently
conducted, or distributed to Equity Holders, or otherwise disbursed as a Restricted Payment.

 

“Permitted Refinancing”
means Indebtedness constituting a modification, refinancing, refunding, renewal, replacement or extension of any Indebtedness of
such Person; provided that such new Indebtedness (a) has an aggregate outstanding principal amount not greater than the aggregate
principal amount (including an amount equal to any existing commitments unutilized thereunder) of the Indebtedness being modified, refinanced,
refunded, renewed or replaced except by an amount equal to unpaid accrued interest and premium thereon plus premiums, fees and
expenses reasonably incurred, in connection with such modification, refinancing, refunding, renewal, replacement or extension, (b) other
than with respect to a Permitted Refinancing in respect of Indebtedness permitted pursuant to Section 6.03(f), has a Weighted Average
Life to Maturity (measured as of the date of such refinancing or extension) and maturity no shorter than that of the Indebtedness being
modified, refinanced, refunded, renewed, replaced or extended, (c) is not secured by a Lien on any Collateral other than (i) the collateral
securing the Indebtedness being modified, refinanced, refunded, renewed or replaced or (ii) Liens otherwise permitted under Section 6.01,
(d) the primary obligors of which are the same (or fewer) as the primary obligors of the Indebtedness being modified, refinanced, refunded,
renewed or replaced and the same (or fewer) guarantors as the guarantors under the Indebtedness being modified, refinanced, refunded,
renewed or replaced and (e) is subordinated to the Obligations on the same terms (or such other terms to the extent not adverse to the
Administrative Agent and the Lenders) as the Indebtedness being modified, refinanced, refunded, renewed or replaced is subordinated to
the Obligations, if applicable. Any reference to a Permitted Refinancing in this Agreement or any other Credit Document shall be interpreted
to mean (i) a Permitted Refinancing of the subject Indebtedness and (ii) any further refinancings constituting a Permitted Refinancing
of the Indebtedness resulting from a prior Permitted Refinancing.

    -44-

     

    

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

 

“Plan” means
any employee benefit plan within the meaning of Section 3(3) of ERISA (including a Pension Plan), maintained for employees of any Loan
Party or any ERISA Affiliate or any such Plan to which any Loan Party or any ERISA Affiliate is required to contribute on behalf of any
of its employees.

 

“Planned Expenditures”
has the meaning provided to such term in the definition of “Excess Cash Flow.”

 

“Platform”
means Debt Domain, Intralinks, SyndTrak or a substantially similar electronic transmission system.

 

“Pledge Agreement”
means (a) the Pledge Agreement, dated as of February 24, 2017, by and between Parent Holdings Guarantor, Automile Holdings, by execution
of a counterpart thereto, GPB Prime, and the Administrative Agent for the benefit of the Secured Parties and (b) each pledge agreement
supplement, amendment, and/or joinder agreement thereto delivered from time to time.

 

“Preferred Stock”
means, with respect to any Person, any Capital Stock of any class or classes (however designated) which is preferred as to the payment
of dividends or distributions, or as to the distributions of assets upon any voluntary or involuntary liquidation or dissolution of such
Person, over the Capital Stock of any other class in such Person.

 

“Prime
Rate” means the rate of interest per annum publicly announced from time to time by the Administrative Agent, in its sole discretion,
as its prime lending rate of interest. Such announced rate bears no inference, implication, representation or warranty that such announced
rate is charged to any particular customer or customers of Administrative Agent. The Administrative Agent’s prime lending rate
of interest is but one of several interest rate bases used by the Administrative Agent. Changes in the applicable interest rate shall
be made as of, and immediately upon the occurrence of, changes in the Administrative Agent’s prime rate.

 

“Principal
Payment Date” means (a) the first Business Day of each month and (b) with respect to any Class of Loans, the earlier of the
Maturity Date or such date upon which the repayment of such Class of Loans has been accelerated for payment. The first Principal Payment
Date is April 1, 2017. For the avoidance of doubt, principal balances outstanding under the Floor Plan Facility shall be due and payable
as set forth in Sections 2.01.8, 2.01.9, 2.01.10, and 2.01.11 hereof and on the Maturity Date.

 

“Prohibited
Transaction” means any prohibited transaction as defined in Section 4975 of the Code or Section 406 of ERISA that is not exempt
under Section 408 of ERISA and for which neither an individual nor a class exemption has been issued by the United States Department
of Labor.

 

“Purchase
Agreement” means the Purchase and Sale Agreement, dated as of May 12, 2017, as amended pursuant to the Amendment to Purchase
and Sale Agreement dated as of June 15, 2017, in each case by and among GPB Prime, GPB Capital, David Rosenberg, Rosenberg Family Nominee
Trust, Rosenberg Family Nomimee Trust/Sawdran, Abrams Auto Holding LLC and Abrams Capital Management, L.P.

 

“Purchase
Transaction” transactions pursuant to which GBP Prime will acquire (a) 100% of the Equity Interests in AMR RE Holdings and
(b) Equity Interests consisting of 90% of the economic interests and 76.25% of voting interests in Parent Holdings Guarantor, in each
case pursuant to the Purchase Agreement.

    -45-

     

    

“Qualified ECP Guarantor”
means, in respect of any Swap Obligation, each Loan Party that constitutes an Eligible Contract Participant and can cause another
person to qualify as an Eligible Contract Participant at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the
CEA.

 

“Rating Agencies”
means Moody’s and S&P, or if Moody’s or S&P (or both) does not make a rating on the relevant obligations publicly
available, a nationally recognized statistical rating agency or agencies, as the case may be, selected by the Borrower Representative
that will be substituted for Moody’s or S&P (or both), as the case may be.

 

“Real Estate Acquisition Costs”
has the meaning provided to such term in Section 2.04.1.

 

“Real Estate Appraisal”
means a FIRREA-conforming appraisal prepared by an independent third party appraiser reasonably acceptable to the Administrative
Agent.

 

“Real Estate Collateral”
has the meaning provided to such term in Section 5.15.3.

 

“Real Estate Costs”
has the meaning provided to such term in Section 2.04.1.

 

“Real Property”
means, any parcel of real property, whether owned in fee or leased, of any of the Loan Parties.

 

“Recipient”
means (a) the Administrative Agent, or (b) any Lender, as applicable.

 

“Register”
has the meaning provided to such term in Section 10.02.4 of this Agreement.

 

“Regulation D”
means certain regulations issued by the Federal Reserve Board generally known as Regulation D and entitled “Reserve Requirements
of Depository Institutions,” codified at 12 CFR § 204, et seq.

 

“Related Parties”
means, with respect to any Person, such Person’s Affiliates and the officers, directors, employees, attorneys and agents of
such Person and of such Person’s Affiliates.

 

“Release Instructions”
means written joint instructions from the Administrative Agent and the applicable Certificate Holders directing the Escrow Agent
to release from escrow the Certificates for the Restricted Equity Interests identified in such instructions to the Persons at the addresses
and at such times as required by the Release Instructions.

 

“Reportable Anti-Terrorism
Compliance Event” means that any Loan Party becomes a Sanctioned Person, or is charged by indictment, criminal complaint or
similar charging instrument in connection with any Anti-Terrorism Law.

 

“Reportable Event”
means any of the events set forth in Section 4043(c) of ERISA, other than events for which the thirty (30) day notice period has
been waived.

 

“Required Lenders”
means the Non-Defaulting Lenders who have in the aggregate more than 50% of either (a) the total Commitments of all Non-Defaulting
Lenders, or (b) in the event the Commitments have been terminated, the aggregate outstanding Loans of all Non-Defaulting Lenders.

 

“Requirement of
Law” means, with respect to any Person, any Law and the interpretation, implementation, application, or administration thereof
by, and other rulings, determinations, directives, guidelines, requirements or requests of, any Governmental Authority, in each case
whether or not having the force of law and that are applicable to or binding upon such Person or any of its assets or property or to
which such Person or any of its assets or property is subject.

    -46-

     

    

“Responsible Officer”
means the chief executive officer, president, chief financial officer, treasurer, assistant treasurer or controller of a Loan Party
and, solely for purposes of the delivery of incumbency certificates pursuant to Section 4.04.1, the secretary or any assistant secretary
of a Loan Party and, solely for purposes of notices given pursuant to Article 2, any other officer or employee of the applicable Loan
Party so designated by any of the foregoing officers in a notice to the Administrative Agent or any other officer or employee of the
applicable Loan Party designated in or pursuant to an agreement between the applicable Loan Party and the Administrative Agent. Any document
delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by
all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively
presumed to have acted on behalf of such Loan Party. To the extent requested by the Administrative Agent, each Responsible Officer will
provide an incumbency certificate and to the extent requested by the Administrative Agent, appropriate authorization documentation, in
form and substance reasonably satisfactory to the Administrative Agent.

 

“Restricted Companies”
means the Loan Parties scheduled on Schedule 1.01(c) (as such Schedule may be supplemented from time to time by GPB Prime)
together with any Persons that become Loan Parties after the Closing Date which are subject to restrictions imposed by any applicable
Franchise Agreement, Framework Agreement or related or similar agreement with a Manufacturer (including, in each case, any policies and
procedures established by the applicable Manufacturer from time to time to the extent enforceable in connection with such Franchise Agreement,
Framework Agreement or other agreement) or consent given by a Manufacturer in connection with such Franchise Agreement, Framework Agreement
or related agreement (or related Manufacturer policies and procedures) that prohibits the granting of a security interest in the Capital
Stock of such Person without the consent of the Manufacturer and such consent has not been obtained by the applicable Loan Party from
the applicable Manufacturer.

 

“Restricted Equity
Interests” means the Capital Stock of the Restricted Companies scheduled on Schedule 1.01(c) (as such Schedule may be supplemented
from time to time by GPB Prime).

 

“Restricted Payment”
means collectively (a) any dividend or other distribution (whether in cash, securities or other property) with respect to any Capital
Stock or other Equity Interests of GPB Prime or its Subsidiaries, or any payment (whether in cash, securities or other property), including
any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of
any such Capital Stock or other Equity Interests, or on account of any return of capital to a Loan Party’s stockholders, partners
or members (or the equivalent Person thereof), (b) any forgiveness or release without adequate consideration by a Loan Party of any Indebtedness
or other payment obligation owing to a Loan Party by a shareholder or other equity holder of a Loan Party, or (c) any payment by any
Loan Party of any management, consulting or similar fees, other than payments of management fees pursuant to a Management Services Agreement,
permitted by this Agreement, and subject to the terms of a Management Services Subordination Agreement.

 

“Restricted Subsidiary”
means each direct or indirect Subsidiary other than an Unrestricted Subsidiary.

 

“Rosenberg Group”
means David Rosenberg and his Controlled Investment Affiliates and their Immediate Family Members (including, without limitation,
The Rosenberg Family Nominee Trust, The Rosenberg Family Nominee Trust/Sawdran and The Rosenberg Family Irrevocable Trust – 2015)
(and any permitted transferees of any of the foregoing under the terms of the respective trust documents).

    -47-

     

    

“S&P”
means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and any successor to its rating agency business.

 

“Sanctioned Country”
means a country or region the target of a comprehensive Sanctions program, which includes as of the date of this Agreement, Cuba,
Iran, North Korea, Sudan, Syria, and the Crimea region of Ukraine.

 

“Sanctioned Person”
means (a) a Person named on the list of Specially Designated Nationals or Blocked Persons maintained by OFAC and, as of the date
hereof, available at http://www.treas.gov/offices/enforcement/ofac/sdn/t11sdn.pdf, or as otherwise published from time to time or otherwise
recognized as a specially designated, prohibited, or sanctioned Person under any Anti- Terrorism Laws, or (b) (i) an agency of the government
of a Sanctioned Country, (ii) an organization controlled by a Sanctioned Country, or (iii) a Person resident in a Sanctioned Country,
to the extent the same would violate Sanctions.

 

“Sanction(s)”
means applicable economic sanction administered or enforced by the United States Government (including without limitation, OFAC).

 

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

 

“Secured Parties”
means, collectively, the Administrative Agent, the Lenders (including M&T Bank in its capacity as the provider of the M&T
Advances), the Swap Providers, the Cash Management Bank(s), and each co-agent or sub-agent appointed by the Administrative Agent from
time to time pursuant to Section 9.04.

 

“Security Agreement”
means (a) the Security Agreement, dated as of the Original Closing Date, by and among the Loan Parties party thereto and the Administrative
Agent and (b) each security agreement supplement, amendment, and/or joinder agreement thereto delivered from time to time.

 

“Security Documents”
means, collectively, the Security Agreement, the Pledge Agreement, the Escrow Agreement, the Mortgages, all other security agreements,
pledges, escrow and security agreements, mortgages, deeds of trust, control agreements, or other agreements, instruments, documents or
filings, pursuant to which any of the Loan Parties, from time to time, pledges or grants to the Administrative Agent for the benefit
of the Secured Parties a Lien in any of the Collateral, as supplemented or amended from time to time by the execution of applicable supplements,
amendments, and joinder agreements.

 

“Service Loaner
Vehicle” means a Motor Vehicle which (a) has never been owned except by a Manufacturer, distributor or dealer, (b) has been
either (i) purchased by a Floor Plan Borrower directly from the Manufacturer or (ii) swapped or purchased from another Franchise and,
in each case under this clause (ii), accompanied by a Manufacturer’s statement of origin and (c) is used as a service loaner vehicle
or is periodically subject to a rental contract with customers of a Floor Plan Borrower for loaner or rental periods of up to thirty
(30) consecutive days. Service Loaner Vehicles may be registered by the applicable Floor Plan Borrower with applicable Governmental Authorities
in the ordinary course of business.

    -48-

     

    

“Service Loaner
Vehicles Allocation” means up to Eighteen Million Dollars ($18,000,000) of the Floor Plan Commitments which may be borrowed
to finance the purchase of Service Loaner Vehicles, as such amount may be increased from time to time as set forth in Section 2.11.3(b).

 

“Solvent”
means, with respect to any Person on a particular date, that on such date (a) the fair value of the property of such Person is greater
than the total amount of liabilities, including, without limitation, contingent liabilities, of such Person, (b) the present fair salable
value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on
its debts as they become absolute and matured, (c) such Person is able to pay its debts and other liabilities as they mature in the normal
course of business, (d) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s
ability to pay as such debts and liabilities mature, and (e) such Person is not engaged in business or a transaction, and is not about
to engage in business or a transaction, for which such Person’s property would constitute unreasonably small capital after giving
due consideration to the prevailing practice in the industry in which such Person is engaged or about to be engaged, as the case may
be. In computing the amount of contingent liabilities at any time, it is intended that such liabilities will be computed at the amount
which, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become
an actual or matured liability.

 

“Special Flood Hazard
Area” means an area that the U.S. Federal Emergency Management Agency then-current flood maps indicate has at least a one percent
(1.0%) chance of a flood equal to or exceeding the base flood elevation (a 100-year flood) in any given year.

 

“Specified Closing
Distribution” has the meaning provided in the definition of “Closing Date Transactions.”

 

“Specified Original
Closing Distribution” has the meaning provided in the definition of “Original Closing Date Transactions.”

 

“Specified Transaction”
means (i) any Investment that results in a Person becoming a Subsidiary; (ii) any Permitted Acquisition; (iii) any Disposition that
results in a Subsidiary ceasing to be a Subsidiary or in a Restricted Subsidiary becoming an Unrestricted Subsidiary; (iv) any Disposition
of a controlling equity interest or other ownership interest in another Person or of a business unit or a line or lines of business conducted
by another Person, or a Franchise owned by another Person, or assets constituting a Motor Vehicle dealership of another Person, in each
case, whether by merger, consolidation, amalgamation or otherwise; (v) any Restricted Payment; (vi) any designation of operations or
assets of GPB Prime or any of its Subsidiaries as discontinued operations (as defined under GAAP) or (vii) any other transaction that
by the terms of this Agreement requires pro forma compliance with a test or covenant hereunder or requires such test or covenant
to be calculated on a pro forma basis or giving pro forma effect to any such transaction.

 

“Sponsor”
means GPB Capital and any of its Affiliates and funds or partnerships managed or advised by it or any of its Affiliates, but not
including, however, any of its portfolio companies.

 

“Sponsor Group”
means (a) any of: (i) Sponsor, (ii) Rosenberg Group, and (iii) solely for purposes of clause (b)(i) of the definition of “Change
of Control”, any “group” (within the meaning of Section 13d-3 or Section 14d-2 of the Exchange Act) of which any of
the foregoing are members; provided that in the case of such group and without giving effect to the existence of such group or
any other group, the Persons under clauses (i) and (ii) above, collectively, have, directly or indirectly, legal and beneficial ownership
of more than 50% of the voting Capital Stock of GPB Prime and (b) any Person acting in the capacity of an underwriter (solely to the
extent that and for so long as such Person is acting in such capacity) in connection with a public or private offering of the Capital
Stock of GPB Prime, Parent Holdings Guarantor or a direct or indirect parent company thereof, as the case may be.

    -49-

     

    

“Subsidiary”
of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority
of the shares of securities or other interests having ordinary voting power for the election of Directors or other governing body (other
than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned,
or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person.
Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary
or Subsidiaries of GPB Prime and shall include the Restricted Subsidiaries and the Unrestricted Subsidiaries.

 

“Subsidiary Guarantors”
means, collectively, all Subsidiaries of GPB Prime that are Guarantors and are not Borrowers under this Agreement. For the avoidance
of doubt, as of the Closing Date, there are no Subsidiary Guarantors, except Parent Holdings Guarantor.

 

“Swap” means
any “swap” as defined in Section 1a(47) of the CEA and regulations thereunder, other than (a) a swap entered into, or subject
to the rules of, a board of trade designated as a contract market under Section 5 of the CEA, or (b) a commodity option entered into
pursuant to CFTC Regulation 32.3(a).

 

“Swap Agreement”
means any “Swap Agreement” as defined in §101(53B) of the Bankruptcy Code.

 

“Swap Obligations”
means all obligations to pay or perform, under or in connection with any Swap or Swap Agreement, including but not limited to payment
of any sums due thereunder to a Swap Provider.

 

“Swap Provider”
means any Credit Party or Affiliate of a Credit Party (regardless of whether such Swap Provider ceases to be a Credit Party or Affiliate
of a Credit Party after such Swap Agreement is entered into) that has entered into, or subsequently enters into a Swap Agreement from
time to time with a Loan Party for Swaps with respect to the Loans or any of the other Obligations, but excluding, for the avoidance
of doubt, any Swap Agreement entered into by a Credit Party or its Affiliates after its Commitments have been fully cancelled in accordance
with the terms of this Agreement or after it has assigned all of its rights under the Credit Facilities established by this Agreement.

 

“Swap Termination
Value” means, in respect of any one or more Swap Agreements, after taking into account the effect of any legally enforceable
netting agreement relating to such Swap Agreements: (a) for any date on or after the date such Swap Agreements have been closed out and
termination value(s) determined in accordance therewith, such termination value(s); and (b) for any date prior to the date referenced
in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Agreements, as determined based upon one or more
mid-market or other readily available quotations provided by any recognized dealer in such Swap Agreements (which may include a Lender
or any Affiliate of a Lender).

 

“Tax Distributions”
means quarterly cash distributions by the Loan Parties to their holders of Capital Stock in such amounts as are reasonably calculated
to ensure that each holder of Capital Stock shall be able to pay estimated installments of the federal, state and local Tax on the income
derived by such holders of Capital Stock for such quarter from the holder’s ownership of Capital Stock in such Loan Party. For
the purposes of computing Tax Distributions, it shall be assumed that all income allocated to the holders of Capital Stock of a Loan
Party is taxable for estimated tax purposes by the appropriate federal, state and local taxing authorities at the highest individual
marginal tax rates, and that all such Taxes shall be paid in cash. The amount of the Tax Distributions shall be reduced by any amounts
paid or required to be paid by a Loan Party on behalf of any of its holders of Capital Stock to any taxing authorities.

    -50-

     

    

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

 

“Term
Loan Borrowing” means a borrowing consisting of simultaneous Term Loans of the same Class and Type.

 

“Term
Loan Facility” means the senior secured term loan facility described in Section 2.03(b) providing for Term Loans to the Borrowers
by the Lenders, as such facility may be increased pursuant to a Facility Increase.

 

“Term
Loan Facility Commitment” means, as to any Lender, its obligation to make Term Loans under the Term Loan Facility to the Borrowers
hereunder, as such commitment may be (a) reduced from time to time pursuant to this Agreement and (b) adjusted from time to time pursuant
to (i) assignments by or to such Lender pursuant to an Assignment And Assumption or (ii) an Incremental Amendment. The initial amount
of each Lender’s Term Loan Facility Commitment is specified on Schedule 2.01 under the heading or caption “Term Loan
Facility Commitment” or, otherwise, in the Assignment And Assumption or Incremental Amendment pursuant to which such Lender shall
have assumed its Term Loan Facility Commitment, as the case may be; and “Term Loan Facility Commitments” means the aggregate
Term Loan Facility Commitments of all of the Lenders.

 

“Term
Loan Notes” means, collectively, the promissory notes of the applicable Borrowers evidencing the Term Loans under the Term
Loan Facility substantially in the form of Exhibit I attached hereto, together with all amendments and replacements thereof.

 

“Term
Loans” means, collectively, the Closing Date Term Loans, the Delayed Draw Term Loans and the Additional Term Loans, in each
case, as increased by any applicable Facility Increase.

 

“Term/Mortgage Committed
Loan Notice” means an irrevocable written notice of (a) a Mortgage Loan Borrowing of a particular Class, a Term Loan Borrowing
of a particular Class or a Delayed Draw Borrowing of a particular Class or (b) a conversion of Mortgage Loans or Term Loans of a particular
Class from one Type to the other, pursuant to Sections 2.03.2 or 2.04.2, which shall be substantially in the form of Exhibit B-1
or such other form as may be approved by the Administrative Agent in its reasonable discretion (including any form on an electronic platform
or electronic transmission system as shall be approved by the Administrative Agent), appropriately completed and signed by a Responsible
Officer of the Borrower Representative.

 

“Test Period”
in effect at any time means the most recent period of four (4) consecutive Fiscal Quarters of GPB Prime and its Subsidiaries ended
on or prior to such time (taken as one accounting period) in respect of which, subject to Section 1.07, (i) a Compliance Certificate
for such four (4) consecutive Fiscal Quarter period has been or is required to have been delivered pursuant to Section 5.08.4 and (ii)
financial statements for each fiscal month or Fiscal Year, as applicable, in such period have been or are required to be delivered pursuant
to Sections 5.08.1 or 5.08.2, as applicable.

 

“Threshold Amount” means Five
Million Dollars ($5,000,000).

    -51-

     

    

“Total
Credit Exposure” means, as to any Lender at any time, the unused Commitments, the Outstanding Amount of the Floor Plan Credit
Exposure (including participation interests in outstanding M&T Advances), and Outstanding Amounts of the Mortgage Loans, Term Loans,
and (without duplication) Delayed Draw Loans of such Lender at such time.

 

“Total Leverage
Ratio” means, as of any date of determination, the most recently ended Test Period, the ratio of (a) Consolidated Total Funded
Indebtedness, excluding (i) any Vehicle Financing Indebtedness and the aggregate principal amount of the Mortgage Loans, as of
the last day of such Test Period, minus (ii) the unrestricted cash or Cash Equivalents then held by GPB Prime and its Subsidiaries
not to exceed Ten Million Dollars ($10,000,000) in aggregate amount as of such date of determination to (b) Consolidated EBITDA,
less Consolidated Interest Expense attributable to Vehicle Financing Indebtedness and the Mortgage Loans.

 

“[*****]”
means [*****] U.S.A., Inc., including Lexus, a division of [*****]  and any successors thereof.

 

“[*****] Borrowers”
means (a) the [*****] Floor Plan Borrowers and (b) any other Subsidiaries that become a Borrower under any Credit Facility pursuant
to a Joinder Agreement in which such Subsidiary is designated as a “[*****] Borrower.”

 

“[*****] Floor
Plan Borrowers” means (a) [*****] Holdings, (b) AMR Auto Holdings - TY, LLC, AMR Auto Holdings - TH, LLC, AMR Auto Holdings
- TO, LLC, AMR Auto Holdings - LN, LLC and LUPO LLC, each a Delaware limited liability company, and (c) any other Subsidiaries that from
time to time hold a [*****] Franchise and become a Borrower under the Floor Plan Facility pursuant to a Joinder Agreement.

 

“[*****] Guaranty
Agreement” means (a) the [*****] Guaranty Agreement, dated as of the Original Closing Date, made by the [*****] Borrowers and
[*****] Holdings in favor of the Administrative Agent and (b) each joinder agreement thereto delivered from time to time for the benefit
of the Secured Parties.

 

“[*****] Holdings”
has the meaning set forth in the introductory statement hereto.

 

“[*****] Obligations”
means, collectively, all of the obligations of the [*****] Borrowers to (a) the Credit Parties, M&T Bank or any of their Affiliates,
whenever arising, under this Agreement or any other Credit Documents, including without limitation, all unpaid principal and accrued
interest, (b) any Cash Management Bank arising out of or related to Cash Management Products provided to the [*****] Borrowers (for the
avoidance of doubt, excluding Cash Management Products provided to any other Person), including any reimbursement, repayment or indemnity
obligations (solely to the extent such reimbursement, repayment or indemnity obligations are owed in connection with Cash Management
Obligations provided to the [*****] Borrowers (and not, for the avoidance of doubt, any other Persons)), (c) any LC Bank under any LC
Agreement with a [*****] Borrower in connection with any Letters of Credit as to which one or more [*****] Borrowers (and not, for the
avoidance of doubt, any other Persons) is the account party (subject to the maximum aggregate face amount of such Letters of Credit referenced
in the definition thereof), including reimbursement and indemnification obligations and obligations to pay fees and charges with respect
thereto; including, in each case, interest that accrues during any Insolvency Proceeding, regardless of whether such interest are allowed
claims in such Insolvency Proceeding.

 

“Type” means,
(i) with respect to any Loan, its character as a Base Rate Loan or a LIBOR Rate Loan, and (ii) with respect to any Motor Vehicle, its
character as a New Vehicle, Used Vehicle, Service Loaner Vehicle or Auction Vehicle.

    -52-

     

    

“Unrestricted Subsidiary”
means each direct or indirect Subsidiary that has total assets (including Equity Interests in other Persons) of less than $100,000
(calculated as of the most recently ended Test Period); provided, however, that no Subsidiary shall be an Unrestricted
Subsidiary if such Subsidiary (i) owns or operates a Franchise or dealership, (ii) owns any Real Estate Collateral or other real property
used by a Borrower in the operation of a Franchise or dealership, or (iii) is the direct or indirect parent of a Subsidiary referenced
in clauses (i) or (ii) of this definition. For the avoidance of doubt, Schedule 1.03 sets forth the Unrestricted Subsidiaries
as of the Closing Date.

 

“USA 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.

 

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

 

“U.S. Tax Compliance
Certificate” has the meaning provided to such term in Section 2.13.7(b)(ii)(C) of this Agreement.

 

“Used Vehicle”
means a Motor Vehicle, other than a New Vehicle, Auction Vehicle or Service Loaner Vehicle, which has been previously titled and
is not older than six (6) model years.

 

“Used Vehicles Allocation”
means up to $22,000,000 of the Floor Plan Commitments which may be borrowed to finance the purchase of Used Vehicles, as such amount
may be increased from time to time as set forth in Section 2.11.3(b).

 

“Uniform Commercial
Code” or “UCC” means the Uniform Commercial Code as adopted and in effect from time to time in the Governing
State; provided that, if perfection or the effect of perfection or non-perfection or the priority of any security interest in
any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the Governing State, “UCC”
means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating
to such perfection, effect of perfection or non-perfection or priority.

 

“Vehicle Allocations”
means, collectively, the New Vehicles Allocation, the Used Vehicles Allocation, the Service Loaner Vehicles Allocation, and the Auction
Vehicles Allocation (and shall mean each of the foregoing, as the context may require).

 

“Vehicle Financing
Indebtedness” means (a) Indebtedness incurred under the Floor Plan Facility or any other floor plan facility permitted under
this Agreement and (b) Indebtedness permitted to be incurred under this Agreement to finance consumer receivables, leases, loans or retail
installment contracts in connection with the sale or lease of Motor Vehicles.

 

“Vehicle Title Documentation”
has the meaning provided to such term in Section 5.09 of this Agreement.

 

“Weighted Average
Life to Maturity” means, when applied to any Indebtedness at any date, the number of years obtained by dividing: (a) the sum
of the products obtained by multiplying (i) the amount of each then remaining scheduled installment or other required scheduled payments
of principal, including payment at final scheduled maturity, in respect thereof, by (ii) the number of years (calculated to the nearest
one-twelfth) that will elapse between such date and the making of such payment by (b) the then outstanding principal amount of such Indebtedness;
provided that the effects of any prepayments made on such Indebtedness shall be disregarded in making such calculation.

    -53-

     

    

“Withholding Agent”
shall mean any Credit Party, the Administrative Agent and, in the case of any U.S. federal withholding Tax, any other applicable
withholding agent.

 

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

 

Section 1.03.          Other
Interpretive Provisions.

 

(a)   Terms.
The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require,
any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,” “includes”
and “including” shall be deemed to be followed by the phrase “without limitation.” The word “will”
shall be construed to have the same meaning and effect as the word “shall.” Unless the context requires otherwise, (a) any
definition of or reference to any agreement, instrument or document herein shall be construed as referring to such agreement, instrument
or other document as from time to time amended, supplemented or otherwise modified, including by virtue of the execution and delivery
of joinder agreements (subject, in each case, to any restrictions on such amendments, supplements or modifications set forth herein),
(b) any reference herein to any Person shall be construed to include such Person’s successors and permitted assigns, (c) the words
 “herein,” “hereof” and “hereunder,” and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules
shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any law
shall include all statutory and regulatory provisions consolidating, amending, replacing or interpreting such law and any reference to
any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time
to time, and (f) the words “asset” and “property” shall be construed to have the same meaning and effect and
to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

 

(b)    Capitalized
Terms. Any capitalized terms used herein but not defined herein that are defined in the UCC shall have the respective meanings assigned
to such terms in the UCC.

 

(c)    Computation
of Time. In the computation of periods of time from a specified date to a later specified date, the word “from” means
 “from and including;” the words “to” and “until” each mean “to but excluding;” and the
word “through” means “to and including.”

 

(d)    Headings
and References. Article and Section headings and the Table of Contents herein and in the other Credit Documents are included for
convenience of reference only, are not part of this Agreement or the other Credit Documents, and shall not affect the interpretation
of, or be taken into consideration in interpreting, this Agreement or any other Credit Document.

 

Section 1.04.         Accounting
Terms and Principles.

 

(a)                Generally.
Except as otherwise specifically provided in this Agreement, all accounting or financial terms not specifically or completely defined
herein shall be construed in conformity with, and all computations and determinations as to accounting or financial matters and all financial
statements and other financial data (including financial ratios and other financial calculations, and principles of consolidation, where
appropriate) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP, as in effect from time to
time, except as otherwise specifically prescribed herein. Notwithstanding the foregoing, for purposes of determining compliance with
any covenant (including the computation of any financial covenant) contained herein, Indebtedness of the Borrowers and their Subsidiaries
shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20
on financial liabilities shall be disregarded.

    -54-

     

    

(b)                Changes
in GAAP. If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Credit
Document, and either the Borrower Representative or the Required Lenders shall so request, the Administrative Agent, the Lenders and
the Loan Parties shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of
such change in GAAP (subject to the approval of the Required Lenders and the Loan Parties); provided that, until so amended, (i)
such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) the Borrower Representative
shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as
reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after
giving effect to such change in GAAP. All obligations of any Person that are or would be characterized as operating lease obligations
in accordance with GAAP on the Original Closing Date (whether or not such operating lease obligations were in effect on such date) shall
continue to be accounted for as operating lease obligations (and not as Capitalized Lease Obligations) for all purposes under this Agreement
and the other Credit Documents, regardless of any change in GAAP following the Closing Date that would otherwise require such obligations
to be recharacterized (on a prospective or retroactive basis or otherwise) as Capitalized Lease Obligations.

 

(c)                 Consolidation
of Variable Interest Entities. All references herein to consolidated financial statements of GPB Prime and its Subsidiaries or to
the determination of any amount for GPB Prime and its Subsidiaries on a consolidated basis or any similar reference shall, in each case,
be deemed to include each variable interest entity that GPB Prime or any of its Subsidiaries is required to consolidate pursuant to FASB
ASC 810 as if such variable interest entity were a Subsidiary as defined herein.

 

(d)                Rounding.
Any financial ratios required to be maintained by the Borrowers pursuant to this Agreement shall be calculated by dividing the appropriate
component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein
and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).

 

Section 1.05.         Times
of Day. Unless otherwise specified, all references herein to times of day shall be references to Eastern time (daylight or standard,
as applicable).

 

Section 1.06.         LIBOR
Rate. The Administrative Agent and the Lenders do not warrant, nor accept responsibility, nor shall the Administrative Agent or any
of the Lenders have any liability with respect to the administration, submission or any other matter related to the rates in the definition
of “LIBOR Rate” or with respect to any comparable or successor rate thereto.

 

Section 1.07.         Pro
Forma and Other Calculations.

 

(a)             Notwithstanding
anything to the contrary herein, financial ratios and tests, including the Total Leverage Ratio, the Fixed Charge Coverage Ratio and
the Fixed Charge Coverage Ratio (All Cash Dividends) shall be calculated in the manner prescribed by this Section 1.07; provided
that notwithstanding anything to the contrary in clauses (b), (c), (d) or (f) of this Section 1.07, when calculating the (x) Total Leverage
Ratio for purposes of (a) the definition of “Applicable Rate,” (b) Section 2.03.4(a) and (c) the financial covenants in Section
6.15 (other than for the purpose of determining pro forma compliance with Section 6.15), the events described in this Section
1.07 that occurred subsequent to the end of the applicable Test Period shall not be given pro forma effect; provided however
that voluntary prepayments made pursuant to Section 2.03.5 during any Fiscal Quarter (without duplication of any prepayments in such
Fiscal Quarter that reduced the amount of Excess Cash Flow required to be repaid pursuant to Section 2.03.4 for any prior Fiscal Quarter)
shall be given pro forma effect after such Fiscal Quarter-end and prior to the time any mandatory prepayment pursuant to Section
2.03.4 is due for purposes of calculating the Total Leverage Ratio for purposes of determining the recapture percentage for such mandatory
prepayment, if any. In addition, whenever a financial ratio or test is to be calculated on a pro forma basis, the reference to
 “Test Period” for purposes of calculating such financial ratio or test shall be deemed to be a reference to, and shall be
based on, (i) the most recently ended Test Period for which internal financial statements of GPB Prime and its Subsidiaries are available
or (ii) if a full Test Period has not been completed following the Closing Date, the most recently ended Test Period for which internal
financial statements of Parent Holdings Guarantor and its Subsidiaries are available (in each case, as determined in good faith by the
Borrower Representative) (it being understood that for purposes of determining actual compliance (and not pro forma compliance)
with Section 6.15, the reference to “Test Period” shall be deemed to be a reference to, and shall be based on, the most recently
ended Test Period for which financial statements have been or are required to be delivered pursuant to Section 5.08.1 or 5.08.2).

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(b)         For
purposes of calculating any financial ratio or test (or compliance with any covenant determined by reference to Consolidated EBITDA),
Specified Transactions (and, subject to clause (c) below, the incurrence or repayment of any Indebtedness in connection therewith) that
have been made (a) during the applicable Test Period or (b) other than as described in the first proviso to clause (a) above, subsequent
to such Test Period and prior to or simultaneously with the event for which the calculation of any such ratio or test, or any such calculation
of Consolidated EBITDA, is made shall be calculated on a pro forma basis assuming that all such Specified Transactions (and any
increase or decrease in Consolidated EBITDA and the component financial definitions used therein attributable to any Specified Transaction)
had occurred on the first day of the applicable Test Period. If since the beginning of any applicable Test Period any Person that subsequently
became a Subsidiary or was merged, amalgamated or consolidated with or into GPB Prime or any of its Subsidiaries since the beginning
of such Test Period shall have made any Specified Transaction that would have required adjustment pursuant to this Section 1.07, then
such financial ratio or test (or Consolidated EBITDA) shall be calculated to give pro forma effect thereto in accordance with
this Section 1.07.

 

(c)         In
the event that (a) GPB Prime or any of its Subsidiaries incurs (including by assumption or guarantees), issues or repays (including by
redemption, repurchase, repayment, prepayment, retirement, discharge, defeasance or extinguishment) any Indebtedness (other than Vehicle
Financing Indebtedness or any Indebtedness incurred or repaid under any revolving credit facility or line of credit unless such Indebtedness
has been permanently repaid and not replaced), (b) GPB Prime or any of its Subsidiaries issues, repurchases or redeems Disqualified Stock
or (c) any Subsidiary issues, repurchases or redeems Preferred Stock, (i) during the applicable Test Period or (ii) subsequent to the
end of the applicable Test Period and prior to or simultaneously with the event for which the calculation of any such ratio is made,
then such financial ratio or test shall be calculated giving pro forma effect to such incurrence, issuance, repayment or redemption
of Indebtedness, issuance, repurchase or redemption of Disqualified Stock or Preferred Stock, in each case to the extent required, as
if the same had occurred on the last day of the applicable Test Period (except in the case of the Fixed Charge Coverage Ratio or the
Fixed Charge Coverage Ratio (All Cash Dividends) (or similar ratio), in which case such incurrence, issuance, repayment or redemption
of Indebtedness, issuance, repurchase or redemption of Disqualified Stock or Preferred Stock, in each case will be given effect, as if
the same had occurred on the first day of the applicable Test Period).

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(d)             If
any Indebtedness bears a floating rate of interest and is being given pro forma effect, the interest on such Indebtedness shall
be calculated as if the rate in effect on the date of the event for which the calculation of the Fixed Charge Coverage Ratio is made
had been the applicable rate for the entire period (taking into account any interest hedging arrangements applicable to such Indebtedness).
Interest on a Capitalized Lease Obligation shall be deemed to accrue at an interest rate reasonably determined by a Responsible Officer
of the Borrower Representative to be the rate of interest implicit in such Capitalized Lease Obligation in accordance with GAAP. Interest
on Indebtedness that may optionally be determined at an interest rate based upon a factor of a prime or similar rate, a eurocurrency
interbank offered rate, or other rate shall be determined to have been based upon the rate actually chosen, or if none, then based upon
such optional rate chosen in accordance with this Agreement.

 

(e)             Notwithstanding
anything to the contrary in this Section 1.07 or in any classification under GAAP of any Person, business, assets or operations in respect
of which a definitive agreement for the disposition thereof has been entered into, no pro forma effect shall be given to any discontinued
operations (and the Consolidated EBITDA attributable to any such Person, business, assets or operations shall not be excluded for any
purposes hereunder) until such disposition shall have been consummated.

 

(f)              Whenever
pro forma effect is to be given to a Specified Transaction, the pro forma calculations shall be made in good faith by a
Responsible Officer of the Borrower Representative and may include the amount of “run rate” cost savings, operating expense
reductions and synergies projected by the Borrower Representative in good faith to result from or relating to any Specified Transaction
(including the Original Closing Date Transactions and, for the avoidance of doubt, acquisitions occurring prior to the Original Closing
Date) which is being given pro forma effect that have been realized or are expected to be realized and for which the actions necessary
to realize such cost savings, operating expense reductions and synergies are taken, committed to be taken or with respect to which substantial
steps have been taken or are expected to be taken (in the good faith determination of the Borrower Representative) (calculated on a pro
forma basis as though such cost savings, operating expense reductions and synergies had been realized on the first day of such period
and as if such cost savings, operating expense reductions and synergies were realized during the entirety of such period and “run
rate” means the full recurring benefit for a period that is associated with any action taken, committed to be taken or with respect
to which substantial steps have been taken or are expected to be taken (including any savings expected to result from the elimination
of a public target’s compliance costs with public company requirements) net of the amount of actual benefits realized during such
period from such actions, and any such adjustments shall be included in the initial pro forma calculations of such financial ratios
or tests and during any subsequent Test Period in which the effects thereof are expected to be realized) relating to such Specified Transaction;
provided that (a) such amounts of cost savings, operating expense reductions and synergies shall be reasonably acceptable to the
Administrative Agent, (b) such amounts of cost savings, operating expense reductions and synergies shall be reasonably identifiable and
factually supportable in the good faith judgment of the Borrower Representative and (c) such actions shall be taken no later than twelve
(12) months after the date of such Specified Transaction (or actions undertaken or implemented prior to the consummation of such Specified
Transaction).

 

Section 1.08.             Borrowers.
References herein and in the other Credit Documents to “Borrower” or “Borrowers” are to each Borrower signing
this Agreement and each Person that may, from time to time join into this Agreement as a Borrower by a written Joinder Agreement.

 

ARTICLE II

 

THE COMMITMENTS AND CREDIT
EXTENSIONS

 

Section 2.01.             Floor
Plan Committed Loans. Subject to the terms and conditions set forth in this Agreement and the other Credit Documents, each of the
Lenders severally agrees to make loans (the “Floor Plan Committed Loans”) to the applicable Floor Plan Borrowers from
time to time on any Borrowing Date during the Availability Period in an aggregate amount outstanding not to exceed at any time the amount
of such Lender’s Floor Plan Commitment; provided, however, that after giving effect to any Floor Plan Committed Borrowing,
(a) the total Outstanding Amount under the Floor Plan Facility shall not exceed the Floor Plan Commitments or the Floor Plan Dollar Cap,
and (b) subject to Section 2.02, the aggregate Outstanding Amount of the Floor Plan Committed Loans of any Lender, together with such
Lender’s applicable Floor Plan Commitment Percentage of its participation interest in the Outstanding Amount of all M&T Advances,
shall not exceed such Lender’s Floor Plan Commitment. The Outstanding Amount of Floor Plan Committed Loans shall not exceed the
aggregate amount of the Vehicle Allocations, subject to Section 2.02. Each Floor Plan Committed Loan extended by a Lender shall be in
a principal amount equal to the Lender’s Floor Plan Commitment Percentage of the aggregate principal amount of the Floor Plan Committed
Loans requested on such occasion. Within the limits of each Floor Plan Lender’s Floor Plan Commitment, and subject to the other
terms and conditions hereof, during the Availability Period, the Floor Plan Borrowers may borrow, prepay, and reborrow under this Section
2.01.

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2.1.1       Floor
Plan Advance Limits. Availability of Floor Plan Committed Loans under the Floor Plan Facility on any date is subject to the
following additional conditions and limits (collectively, “Floor Plan Advance Limits”):

 

(a)           the
Outstanding Amount of Floor Plan Committed Loans for the purchase of New Vehicle Inventory on such date shall not exceed the lesser of
(i) the New Vehicles Allocation, and (ii) the aggregate sum equal to 100% of the Manufacturer’s invoice price for each item of
New Vehicle Inventory financed with Floor Plan Committed Loans as of such date, plus holdbacks, plus related freight and
manufacturer advertising costs in connection with the foregoing;

 

(b)           the
Outstanding Amount of Floor Plan Committed Loans for the purchase of Used Vehicle Inventory on such date shall not exceed the lesser
of (i) the Used Vehicle Allocation and (ii) the aggregate sum equal to the purchase price for all Used Vehicles financed with Floor Plan
Committed Loans as of such date, calculated as 80% of the lesser of (A) the NADA trade-in (wholesale) value of each item of Used Vehicle
Inventory and (B) the actual cost of each item of Used Vehicle Inventory;

 

(c)           the
Outstanding Amount of Floor Plan Committed Loans for the purchase of Auction Vehicle Inventory on such date shall not exceed the lesser
of (i) the Auction Vehicle Allocation and (ii) the aggregate sum equal to 100% of the purchase price as shown on a bill of sale, including
fees for all Auction Vehicles financed with the Floor Plan Committed Loans as of such date;

 

(d)           the
Outstanding Amount of Floor Plan Committed Loans for the purchase of Service Loaner Vehicle Inventory on such date shall not exceed the
lesser of (i) the Service Loaner Vehicles Allocation and (ii) the aggregate sum equal to 100% of the applicable invoice price, including
holdbacks, related freight and manufacturer advertising costs in connection with the foregoing, for all Service Loaner Vehicles financed
with Floor Plan Committed Loans as of such date; and

 

(e)           with
respect to Demonstrators, the Floor Plan Borrowers may in the ordinary course of business allow a reasonable number of items of Collateral
consisting of Motor Vehicles financed under the Floor Plan Facility to be used as Demonstrators. The use of a Motor Vehicle as a Demonstrator
shall not impair the Secured Parties’ rights in and to such Motor Vehicle, which shall continue to constitute Inventory of the
applicable Floor Plan Borrower.

 

Notwithstanding the foregoing, the Vehicle Allocations
may be adjusted from time to time in the mutual determination of the Administrative Agent and the Borrower Representative.

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2.1.2            Permitted
Purposes of Floor Plan Committed Loans. The proceeds of the Floor Plan Committed Loans shall be used by the Floor Plan Borrowers
solely (a) to finance the purchase and holding by the Floor Plan Borrowers of New Vehicles, Used Vehicles and Auction Vehicles to be
held by the Floor Plan Borrowers for sale to customers of the Floor Plan Borrowers and/or for use as Demonstrators (in the case of New
Vehicles) and of Service Loaner Vehicles, in each case, including dealer trades, in the ordinary course of business of the Floor Plan
Borrowers, (b) the reimbursement of the M&T Advances, (c) at Closing, the refinance of the Borrowers’ pre-existing floor plan
debt, or (d) upon closing of a Permitted Acquisition that includes the purchase by a Floor Plan Borrower of Motor Vehicles from a Franchise,
the refinancing of floor plan debt, if any, in respect of such acquired Motor Vehicles. For the avoidance of doubt, each advance
of Floor Plan Committed Loans shall be used for the purchase of specifically-identified Motor Vehicles.

 

2.1.3            [Reserved].

 

2.1.4            Borrowings,
Conversions and Continuations of Floor Plan Committed Loans.

 

(a)                Each
Floor Plan Committed Borrowing shall be made upon the irrevocable written notice given by a Responsible Officer of the applicable Floor
Plan Borrower to the Administrative Agent, which shall be given by a Floor Plan Committed Loan Notice, by funding of Drafts pursuant
to Sections 2.01.15 through 2.01.19 hereof or pursuant to a Floor Plan Automated System pursuant to Section 2.01.20 hereof. Floor Plan
Committed Loan Notices may be delivered to the Administrative Agent via facsimile or by other electronic transmission acceptable to the
Administrative Agent, it being agreed that the Administrative Agent may rely on the authority of the Person making any such request without
receipt of any other confirmation. Each such Floor Plan Committed Loan Notice from a Floor Plan Borrower must be received by the Administrative
Agent prior to 2:00 p.m. one (1) Business Day prior to the requested date of any Borrowing of Floor Plan Committed Loans or any conversion
of Floor Plan Committed Loans from one Type to another. Each Floor Plan Committed Loan Notice (but not a Draft or request pursuant to
a Floor Plan Automated System) delivered to the Administrative Agent by or on behalf of the Floor Plan Borrowers shall specify: (i) the
Floor Plan Borrower requesting a Floor Plan Committed Borrowing, (ii) whether the applicable Floor Plan Borrower is requesting a Floor
Plan Committed Borrowing, (iii) the principal amount of Floor Plan Committed Loans to be borrowed, (iv) the requested Borrowing Date
(which shall be a Business Day) and (v) the required information and calculations evidencing compliance with the limitations set forth
above in this Section 2.01, including, but not limited to, the Floor Plan Advance Limits. Notwithstanding anything else provided herein,
a single Type shall apply to all Floor Plan Committed Loans outstanding at any time (to the extent additional Floor Plan Committed Loans
are borrowed during any period that existing Floor Plan Committed Loans are outstanding, such additional Floor Plan Committed Loans shall
automatically be deemed to be the same Type as the then-existing Floor Plan Committed Loans at such time). Notwithstanding anything else
provided herein, a single Interest Period shall apply to all Floor Plan Committed Loans outstanding as LIBOR Rate Loans at any time.

 

(b)                The
Floor Plan Committed Loan Notice delivered at Closing by the Borrower Representative, on behalf of all Floor Plan Borrowers, shall designate
the Type of Floor Plan Committed Loans to be borrowed. Thereafter, the Borrower Representative may change the Type of interest rate applicable
to the Committed Floor Plan Loans from one Type to the other by delivering to the Administrative Agent prior to 2:00 p.m. one (1) Business
Day prior to the applicable date that the Type selected in such notice is intended to take effect (which effective date shall be the
first Business Day of a given month), an irrevocable Floor Plan Committed Loan Notice or by making a selection (if available) on the
Floor Plan Automated System, in each case designating the interest rate Type and the date on which the Borrower Representative desires
the interest change to occur. Upon such election, the selected interest rate Type shall continue to apply to all Floor Plan Committed
Borrowings and then outstanding Floor Plan Committed Loans unless and until the Borrower Representative shall make an effective election
to convert from the Type then in effect to the other available interest rate Type in the manner set forth above in this section (b).

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(c)           Unless
M&T Bank elects to fund a submitted Floor Plan Committed Loan Notice or request pursuant to a Floor Plan Automated System, as applicable,
as an M&T Advance in accordance with Section 2.02 of this Agreement, the Administrative Agent shall promptly notify each Lender of
the Administrative Agent’s receipt of each such notice and the contents thereof. Each Lender shall make the amount of its pro
rata share (calculated in accordance with its respective Floor Plan Commitment Percentage) of each requested Floor Plan Borrowing
available to the Administrative Agent for the account of the applicable Floor Plan Borrower at the offices of the Administrative Agent
specified in this Agreement prior to 2:00 p.m. on the Borrowing Date requested by such Floor Plan Borrower in U.S. Dollars and in funds
immediately available to the Administrative Agent. Such borrowing will be made available thereafter by the Administrative Agent crediting
the Commercial Account with the aggregate of the amounts made available to the Administrative Agent by the Lenders and in like funds
as received by the Administrative Agent.

 

(d)           Notwithstanding
anything to the contrary in Section 2.01.4, the Lenders have made Floor Plan Committed Loans on the Original Closing Date to refinance
the then-outstanding floor plan Indebtedness of the Floor Plan Borrowers in accordance with this Section 2.01.4(d). Schedule 2.01.4
(a) sets forth, as agreed by the parties hereto as of the Original Closing Date, each of the Floor Plan Borrowers and the principal
amount of each Floor Plan Committed Loan made on the Original Closing Date, further evidenced by a Floor Plan Committed Loan Notice for
a Floor Plan Committed Borrowing submitted by each such Floor Plan Borrower. The aggregate principal balance outstanding under the Floor
Plan Committed Loans, as of the date set forth on Schedule 2.01.4(b) attached hereto, is as set forth on Schedule 2.01.4(b)
attached hereto.

 

2.1.5       Overadvances.
If any Floor Plan Committed Loan Notice or request pursuant to a Floor Plan Automated System is presented for a Floor Plan Committed
Borrowing that would cause (a) the aggregate principal amount of all Floor Plan Committed Loans (including any M&T Advances) then
outstanding, plus (b) the aggregate principal amount of such Floor Plan Committed Loan Notice or request pursuant to a Floor Plan
Automated System, as applicable, together with all other pending unfunded Floor Plan Committed Loan Notices, requests pursuant to a Floor
Plan Automated System and Drafts as of such day to exceed the Floor Plan Commitments or any Vehicle Allocation or other sublimits thereunder
with respect to New Vehicles, Used Vehicles, Service Loaner Vehicles, or Auction Vehicles, as set forth in Section 2.01.1 hereof, then,
in such event: (i) the Floor Plan Borrowers shall either immediately reduce the amount of any pending Floor Plan Committed Loan Notices
or requests pursuant to a Floor Plan Automated System, in each case, which are not Drafts or make a payment of principal on the unpaid
principal balances of the Floor Plan Committed Loans in an amount which would prevent the aggregate amounts described in (a) and (b)
above from exceeding the Floor Plan Commitments or such Vehicle Allocations or other sublimits; or (2) the Floor Plan Borrowers may request
a temporary increase by the Lenders in the amount of the Floor Plan Commitments (or the relevant Vehicle Allocation or sublimit) and
such pending Floor Plan Committed Loan Notice or request pursuant to a Floor Plan Automated System, as applicable, shall be funded to
the extent that any such increase in the Floor Plan Commitments or Vehicle Allocation or sublimit is approved by all of the Lenders and
is sufficient to fund such pending Floor Plan Committed Loan Notice or request pursuant to a Floor Plan Automated System, as applicable.

 

2.1.6       Request
for Temporary Increases in Floor Plan Dollar Cap. The Floor Plan Borrowers may request from time to time a temporary increase in
the Floor Plan Dollar Cap or any Vehicle Allocation, and corresponding pro rata increases in the respective Floor Plan Commitments
of the Lenders in order to fund a Draft in accordance with Sections 2.01.15 through 2.01.18. No such increase in the Floor Plan Dollar
Cap (and/or Vehicle Allocation) and the Floor Plan Commitments shall be effective unless approved in writing by all Lenders in their
sole and absolute discretion and any such increases shall be only for such limited periods of time as expressly set forth in the approval
of all of the Lenders.

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2.1.7       Settlement
of Floor Plan Committed Loans Among Lenders. Subject to Section 2.02, it is agreed that each Lender’s funded portion of the
aggregate Outstanding Amount of Floor Plan Committed Loans is intended by the Lenders to be equal at all times to such Lender’s
respective Floor Plan Commitment Percentage of the aggregate outstanding principal balances of the Floor Plan Committed Loans. Notwithstanding
such agreement, the several and not joint obligation of each Lender to extend Floor Plan Committed Loans in accordance with the terms
of this Agreement ratably in accordance with such Lender’s Floor Plan Commitment Percentage and each Lender’s right to receive
its ratable share of principal payments upon the Floor Plan Committed Loans in accordance with its Floor Plan Commitment Percentage,
the Lenders agree that in order to facilitate the administration of this Agreement and the Credit Documents, settlement among the Lenders
may take place periodically on Floor Plan Adjustment Dates. On each Floor Plan Adjustment Date, payments shall be made by or to M&T
Bank on account of the M&T Advances and by or to the other Lenders so that as of each Floor Plan Adjustment Date, and after giving
effect to the transactions to take place on such Floor Plan Adjustment Date, each Lender’s funded portion of the aggregate outstanding
principal balance of the Floor Plan Committed Loans shall equal such Lender’s Floor Plan Commitment Percentage of such Outstanding
Amount.

 

2.1.8       Repayment
of Floor Plan Committed Loans. All sums due to the Lenders in connection with the Floor Plan Committed Loans shall be paid in full
on or before the Maturity Date. All payments required to be made by the Floor Plan Borrowers pursuant to this Section 2.1.8    shall
be delivered to the Administrative Agent or authorized to be debited from a deposit account of the applicable Floor Plan Borrowers with
the Administrative Agent, in payment of the Outstanding Amount of the Floor Plan Committed Loans.

 

2.1.9       Vehicle
Curtailments. The applicable Floor Plan Borrowers shall also pay to the Administrative Agent for the accounts of the Lenders monthly
curtailments as follows:

 

(a)           with
respect to each New Vehicle in respect of which a Floor Plan Committed Loan has remained outstanding for a period of more than one year
(including a Floor Plan Committed Loan incurred in connection with a Permitted Acquisition), a curtailment of ten percent (10%) of the
outstanding principal amount of such Floor Plan Committed Loan, payable monthly until such Floor Plan Committed Loan is paid in full;

 

(b)           with
respect to each Used Vehicle or Auction Vehicle that is one (1) year old or later, and in respect of which a Floor Plan Committed Loan
has remained outstanding for a period of more than 120 days (including a Floor Plan Committed Loan incurred in connection with a Permitted
Acquisition), a curtailment of ten percent (10%) of the outstanding principal amount of such Floor Plan Committed Loan, payable monthly
until such Floor Plan Committed Loan is paid in full; provided, that any such Floor Plan Committed Loan shall be paid in full within
180 days of the date of making of such Floor Plan Committed Loan; and

 

(c)           with
respect to each Service Loaner Vehicle in respect of which a Floor Plan Committed Loan has remained outstanding for a period of more
than 60 days (including a Floor Plan Committed Loan incurred in connection with a Permitted Acquisition), a curtailment of two percent
(2%) of the outstanding principal amount of such Floor Plan Committed Loan, payable monthly until such Floor Plan Committed Loan is paid
in full.

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Each such curtailment amount shall be payable
as set forth in this Section on each Interest Payment Date, commencing with the first Interest Payment Date nearest to and after the
date of the first curtailment payment and continuing thereafter as set forth above with respect thereto. All payments required to be
made by the Floor Plan Borrowers pursuant to this Section 2.01.9 shall be promptly delivered to the Administrative Agent, or authorized
to be debited from a deposit account of the applicable Floor Plan Borrowers with the Administrative Agent, and shall be applied to the
Outstanding Amount of the Floor Plan Committed Loans made in respect of such Motor Vehicles.

 

2.1.10           Payments
Due Upon Sale or Casualty Event of Motor Vehicles. Upon the sale by a Floor Plan Borrower of any Motor Vehicle in respect of which
a Floor Plan Committed Loan remains outstanding, the applicable Floor Plan Borrower shall deliver to the Administrative Agent, or authorize
the Administrative Agent to debit from a deposit account of such Floor Plan Borrower with the Administrative Agent, sufficient funds
to pay in full the Floor Plan Committed Loan made (a) with respect to such Motor Vehicle (except any Fleet Motor Vehicle), within ten
(10) Business Days of the date of sale of such Motor Vehicle or (b) with respect to such Fleet Motor Vehicle, within thirty (30) calendar
days of the date of sale of such Fleet Motor Vehicle; provided that, notwithstanding the foregoing, such Floor Plan Borrower shall
deliver to the Administrative Agent, or authorize the Administrative Agent to debit from a deposit account of the applicable Floor Plan
Borrower with the Administrative Agent, any cash proceeds that have been received in connection with the sale of such Motor Vehicle within
three (3) Business Days of the receipt of such cash payment (provided further, that any cash deposit provided in advance of the
consummation of the sale of such Motor Vehicle shall not be due until three (3) Business Days after the consummation of the applicable
sale). Within three (3) Business Days after the receipt by a Floor Plan Borrower of any Net Available Proceeds in respect of a Motor
Vehicle Casualty Event, such Floor Plan Borrower shall deliver to the Administrative Agent, or authorize the Administrative Agent to
debit from a deposit account of such Floor Plan Borrower with the Administrative Agent, the amount of such Net Available Proceeds received
by such Floor Plan Borrower (for the avoidance of doubt, any remaining principal amount of the Floor Plan Committed Loan with respect
to the applicable Motor Vehicle shall be paid in accordance with Section 2.01.9).

 

2.1.11           Out
of Balance Floor Plan Committed Loans. To the extent that the aggregate outstanding Floor Plan Committed Loans in respect of (i)
New Vehicles, exceeds the New Vehicles Allocation, (ii) Used Vehicles, exceeds the Used Vehicles Allocation, (iii) Service Loaner Vehicles,
exceeds the Service Loaner Vehicles Allocation or (iv) Auction Vehicles, exceeds the Auction Vehicles Allocation, in each case, as applicable,
the applicable Floor Plan Borrower shall prepay in full within three (3) Business Days the Floor Plan Committed Loans with respect to
a sufficient number of Motor Vehicles within the applicable Vehicle Allocation to eliminate such excess. Each mandatory prepayment set
forth in this Section 2.01.11 shall be applied (x) solely to the remaining curtailment payments of the Floor Plan Committed Loans under
Section 2.01.9 for the applicable Type(s) of Motor Vehicles as to which the excess of Floor Plan Committed Loans over Vehicle Allocation
exists and (y) in the direct order of application as to such remaining curtailment payments. To the extent a mandatory prepayment under
this Section 2.01.11 is comprised of multiple Vehicle Allocation overages, the mandatory prepayments shall be applied in the manner set
forth in the immediately preceding sentence on a pro rata basis corresponding to the Vehicle Allocation overages comprising such mandatory
prepayment.

 

2.1.12           Voluntary
Reduction or Termination of Commitments; Voluntary Prepayments.

 

(a)                 Voluntary
Reduction or Termination of Commitments. The Floor Plan Borrowers may, at any time and from time to time, upon five (5) Business
Days’ prior written notice to the Administrative Agent by the Borrower Representative, voluntarily terminate and reduce unfunded
Floor Plan Commitments, without fees, prepayment premiums or penalties; provided that any such termination (x) shall be in minimum
amounts of Five Million Dollars ($5,000,000) (or such lesser amount to the extent the remaining Floor Plan Commitments are less than
such amount), (y) the Vehicle Allocations shall be reduced to account for the reduction in Floor Plan Commitments in such manner and
amounts as shall be agreed between the Borrower Representative and the Administrative Agent and (z) shall be allocated ratably among
the Lenders in proportion to their Applicable Percentages with respect to the Floor Plan Facility. No reduction shall be permitted if,
after giving effect thereto and to any repayments of the Floor Plan Committed Loans made on the effective date thereof, the sum of the
Outstanding Amount of Floor Plan Committed Loans, the Outstanding Amount of M&T Advances and the amount of Drafts reasonably estimated
by the Administrative Agent that may be presented after the requested termination date that the Administrative Agent and M&T Bank
may be required to pay pursuant to Drafting Agreements would exceed the Floor Plan Commitments then in effect. Notwithstanding anything
to the contrary contained in this Agreement, the Borrower Representative or any applicable Floor Plan Borrower may rescind (or delay
the date of prepayment identified in) any notice of termination under this Section 2.01.12(a) if such termination would have resulted
from a refinancing of all or a portion of the Floor Plan Facility or other conditional event, which refinancing or other conditional
event shall not be consummated or shall otherwise be delayed.

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(b)           Voluntary
Prepayments. The applicable Floor Plan Borrowers may, upon notice to the Administrative Agent by the Borrower Representative, at
any time or from time to time voluntarily prepay the Floor Plan Committed Loan with respect to any Motor Vehicle, as selected by the
Borrower Representative, in whole; provided that (i) each such notice must be received by the Administrative Agent not later than
3:00 p.m. three (3) Business Days prior to any date of prepayment and (ii) each such notice shall specify the date and amount of such
prepayment, the applicable Floor Plan Committed Loan to be prepaid in full and the corresponding Motor Vehicle and the Type of Borrowings
to be prepaid. The Administrative Agent will promptly notify each Lender of its receipt of each such notice, and of the amount of such
Lender’s pro rata share (calculated as such Lender’s Floor Plan Commitment Percentage) of such prepayment. If such notice
is given by the Borrower Representative, the applicable Floor Plan Borrowers shall make such prepayment and the payment amount specified
in such notice shall be due and payable on the date specified therein. Any prepayment of a LIBOR Borrowing shall be accompanied by all
accrued interest on the amount prepaid. Each such prepayment shall be applied (x) in accordance with the Floor Plan Commitment Percentage
of each Lender and (y) to reduce the remaining scheduled principal amounts in full with respect to each applicable Floor Plan Committed
Loan in a manner consistent with clause (ii) above. Notwithstanding anything to the contrary contained in this Agreement, the Borrower
Representative may rescind (or delay the date of prepayment identified in) any notice of prepayment under this Section 2.01.12(b) if
such prepayment would have resulted from a refinancing of all or a portion of the Floor Plan Facility or other conditional event, which
financing or other conditional event shall not be consummated or shall otherwise be delayed.

 

2.1.13      Title
Documents. All original Manufacturer’s invoices and Manufacturer’s Certificates evidencing the ownership by a Floor Plan
Borrower of Motor Vehicles financed by Floor Plan Committed Loans shall be maintained in safekeeping by such Floor Plan Borrower in a
manner and location reasonably acceptable to the Administrative Agent. After the occurrence and during the continuance of an Event of
Default, the Administrative Agent may reasonably request, and the Floor Plan Borrowers shall deliver, or cause to be delivered, within
two (2) Business Days of such request, all such original Manufacturer’s Certificates and Manufacturer’s invoices corresponding
to Motor Vehicles financed under the Floor Plan Facility and maintained by the Floor Plan Borrowers at the time of such request, to the
Administrative Agent, and the Administrative Agent shall retain or hold all such original Manufacturer’s Certificates and Manufacturer’s
invoices and title documents so received. Thereafter, for so long as such Event of Default shall be continuing, all such original Manufacturer’s
Certificates and Manufacturer’s invoices shall remain in the Administrative Agent’s possession until the Floor Plan Committed
Loans in connection therewith or such ratable portion thereof in respect of a Motor Vehicle sold by a Floor Plan Borrower have been paid
in full; provided that, notwithstanding the foregoing, the Administrative Agent shall return any applicable Manufacturer’s
Certificates and Manufacturer’s invoice to the applicable Floor Plan Borrower within two (2) Business Days of the Administrative
Agent’s receipt of notice that a corresponding Motor Vehicle is subject to a contract of sale or lease in the ordinary course of
business. Notwithstanding the foregoing, upon the occurrence and during the continuance of an Event of Default, the Administrative Agent
may transfer Manufacturer’s Certificates to facilitate the disposition of Motor Vehicles constituting Collateral under (and in
accordance with) the Security Agreement.

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2.1.14          Power
of Attorney. For the purpose of expediting the financing of Motor Vehicles in accordance with the terms of this Agreement and for
other purposes relating to such financing transactions, each Floor Plan Borrower irrevocably constitutes and appoints the Administrative
Agent and any of its officers, and each of them, severally, as its true and lawful attorneys-in-fact or attorney-in-fact with full authority
to act on behalf of it, and in the name of, place, and stead of it, regardless of whether or not an Event of Default shall have occurred
hereunder, to prepare, execute, and deliver any and all instruments, documents, and agreements required to be executed and delivered
by such Floor Plan Borrowers necessary to evidence Floor Plan Committed Borrowings and/or after the occurrence and during the continuance
of an Event of Default, to evidence, perfect, or realize upon the Liens granted by this Agreement and/or any of the Credit Documents.
The foregoing powers of attorney shall be deemed to be coupled with an interest, and shall be irrevocable so long as this Agreement remains
in effect, any Drafting Agreement remains in effect or any Obligations remain outstanding. Each of said attorneys-in-fact shall have
the power to act hereunder with or without the other. The Administrative Agent may, but shall not be obligated to, notify the Floor Plan
Borrowers of any such instruments or documents the Administrative Agent has executed on behalf of any of the Floor Plan Borrowers prior
to such execution.

 

2.1.15          Issuance
of Drafting Agreements. Subject to the terms and conditions of this Agreement, the Administrative Agent shall, at any time and from
time to time from after the Original Closing Date, upon the written request of any Floor Plan Borrower and the presentment of such other
documentation related thereto as the Administrative Agent may reasonably require, issue Drafting Agreements for the account of any Floor
Plan Borrower.

 

2.1.16         Conditions
Precedent to Issuance of Drafting Agreements. The Administrative Agent shall not be obligated to enter into or issue a Drafting Agreement
unless, as of the date of issuance of such Drafting Agreement: (a) the applicable Floor Plan Borrower shall have delivered to the Administrative
Agent not less than ten (10) Business Days prior to the requested date for issuance (or such shorter time as the Administrative Agent
in its sole discretion may permit), the proposed Drafting Agreement, which shall be reasonably satisfactory to the Administrative Agent
and consistent with the terms of such drafting agreements as are generally used in the automobile dealer floor plan finance industry;
(b) all conditions precedent set forth in Section 4.02 have been satisfied; (c) no order, judgment or decree of any Governmental Authority
shall by its terms purport to enjoin or restrain the Administrative Agent from entering into or issuing such Drafting Agreement; (d)
no Law applicable to the Administrative Agent or to the Lenders and no request or directive (whether or not having the force of Law)
from any Governmental Authority with jurisdiction over the Administrative Agent or the Lenders shall prohibit the Administrative Agent,
or request that the Administrative Agent refrain, from issuing or entering into Drafting Agreements generally or such Drafting Agreement
in particular or shall impose upon the Administrative Agent with respect to such Drafting Agreement any restriction, reserve or capital
requirement (for which the Administrative Agent is not otherwise compensated hereunder) not in effect on the Original Closing Date, or
shall impose upon the Administrative Agent any unreimbursed loss, cost or expense which was not applicable on the Original Closing Date
and which the Administrative Agent in good faith deems material to it (relating to Drafts and Drafting Agreements); and (e) the Administrative
Agent does not receive written notice from any Lender or from any Borrower, on or prior to the Business Day prior to the requested date
of issuance or entry into such Drafting Agreement, that a Event of Default has occurred and is continuing. Each application for a Drafting
Agreement issued by a Floor Plan Borrower hereunder shall constitute certification by such Floor Plan Borrower of the satisfaction of
all of the above-stated conditions, and the Administrative Agent shall be entitled to rely on such certification without any duty of
inquiry. Immediately upon the issuance or entering into by the Administrative Agent of each Drafting Agreement, each Lender hereby irrevocably
and unconditionally agrees to, and does hereby, purchase from the Administrative Agent a participation in such Drafting Agreement and
each Draft issued thereunder in an amount equal to the product of (x) its Floor Plan Commitment Percentage and (y) the amount of each
Draft presented to the Administrative Agent by a Manufacturer. Notwithstanding the foregoing, the Administrative Agent shall be authorized
to take such action as reasonably necessary to terminate and suspend all Drafting Agreements upon the demand by the Required Lenders
for the repayment in full of the Floor Plan Committed Loans, and the Floor Plan Borrowers shall not be entitled to have Drafts presented
pursuant to any Drafting Agreements after such demand for payment. For the avoidance of doubt, the immediately foregoing sentence is
intended only as a limitation to the ability of the Floor Plan Borrowers to obtain Floor Plan Committed Loans pursuant to the Drafting
Agreements and not as an enlargement of the Administrative Agent’s obligations hereunder.

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2.1.17      Notice
of Issuance of or Entering Into Manufacturers Drafting Agreement. The Administrative Agent shall promptly give notice to the Floor
Plan Borrowers and each of the Lenders of the issuance of or entering into of each Drafting Agreement, attaching to such notice a copy
of such Drafting Agreement.

 

2.1.18      Drafts
Under Drafting Agreements.

 

(a)           Funding
of Drafts. Each Draft submitted by a Manufacturer pursuant to a Drafting Agreement shall be deemed automatically to constitute a
Floor Plan Committed Loan Notice for a Floor Plan Borrowing. Upon its submission to the Administrative Agent, the Administrative Agent
shall pay such Draft to the extent required by the applicable Drafting Agreement within the time period required by the applicable Drafting
Agreement or as otherwise required by applicable Laws, unless the underlying Drafting Agreement has been terminated or suspended. The
Administrative Agent may take all actions reasonably necessary to suspend and/or terminate Drafts and Drafting Agreements following the
occurrence of any Default or Event of Default, or as otherwise authorized by the terms of this Agreement.

 

(b)           Funding
of Draft Does Not Constitute Waiver. The funding of any Draft by the Administrative Agent shall not be deemed to constitute a waiver
of any condition precedent, Default, Event of Default or requirement of this Agreement (or the failure to comply with any condition or
request), or otherwise in any manner whatsoever affect, waive, limit, or postpone the duties, liabilities and obligations of the Floor
Plan Borrowers and the rights and remedies available to the Administrative Agent or to any of the Lenders hereunder. The Floor Plan Borrowers
shall remain obligated to pay the amount of any Draft forthwith as set forth herein and shall have all other duties and obligations applicable
to the Floor Plan Borrowers under this Agreement, notwithstanding any failure of the funding of the Draft to be in compliance with the
terms of this Agreement or the applicable Drafting Agreement. The Floor Plan Borrowers shall bear all risks of loss resulting from the
payment of any Draft, or any resulting disbursements of the Floor Plan Committed Loans, as the case may be, whether or not due to the
gross negligence, willful misconduct or fraud of any Manufacturer.

 

(c)           Obligations
of Lenders to Fund. Each Lender shall be obligated to fund Floor Plan Committed Loans resulting from the presentation of Drafts (even
if the conditions precedent set forth in Section 4.02 have not been satisfied), by making available its respective pro rata share
of Floor Plan Commitments of the amounts so advanced.

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2.1.19           Reimbursement
Obligations Absolute. The obligations of the Floor Plan Borrowers under this Agreement and any of the other Credit Documents to reimburse
the Administrative Agent and the Lenders for Drafts presented by a Manufacturer under a Drafting Agreement and to repay any Floor Plan
Committed Loans (including M&T Advances) funded to pay a Draft shall be unconditional and irrevocable. Such obligations shall be
paid strictly in accordance with the terms of this Agreement and each such other Credit Document under all circumstances without regard
to any condition, event, or occurrence, including the following: (a) any lack of validity or enforceability of this Agreement or any
of the other Credit Documents; (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the
obligations of any of the Floor Plan Borrowers in respect of any Draft or any Drafting Agreement or any other amendment or waiver of
or any consent to departure from all or any of the applicable/related Credit Documents or the Drafting Agreement; (c) the existence of
any claim, set-off, defense or other right that any of the Floor Plan Borrowers may have at any time against any Manufacturer or any
other beneficiary or transferee of any Drafting Agreement (or any Person for whom any such beneficiary or such transferee may be acting),
the Administrative Agent, the Lenders, or any other Person, whether in connection with this Agreement, the transactions contemplated
hereby or by the related Credit Documents or any unrelated transaction other than the defense of payment or claims arising out of the
gross negligence, bad faith or willful misconduct of the Administrative Agent; (d) any Draft, demand, certificate or other document presented
under a Drafting Agreement proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being
untrue or inaccurate in any respect; (e) any loss or delay in the transmission or otherwise of any document required in order to make
a Draft under any Drafting Agreement; (f) any payment by the Administrative Agent or the Lenders under any Drafting Agreement against
presentation of a draft or certificate that does not strictly comply with the terms of any Drafting Agreement; (g) any payment made by
the Administrative Agent under any Drafting Agreement to any trustee in bankruptcy, debtor in possession, assignee for the benefit of
creditors, liquidator, receiver or other representative of a successor to any beneficiary or any transferee of any Drafting Agreement,
including any arising in connection with any Insolvency Proceeding; (h) any exchange, release or non-perfection of any Collateral, or
any release or amendment or waiver of or consent to departure from all or any of the duties and obligations of any of the Floor Plan
Borrowers in respect of any Drafting Agreement; or (i) any other circumstance, condition, action or omission that might otherwise constitute
a defense available to, or discharge of, the Floor Plan Borrowers other than the defense of payment or claims arising out of the gross
negligence, bad faith or willful misconduct of the Administrative Agent.

 

2.1.20           Floor
Plan Automated System. Notwithstanding anything to the contrary provided in this Agreement, the Floor Plan Borrowers may request
Floor Plan Committed Loans electronically by access to Administrative Agent’s web based floorplan on-line system (“Floor
Plan Automated System”) in accordance with and subject to the applicable conditions set forth in Section 4.02.

 

Section 2.02.             M&T
Advances.

 

2.2.1             Advances.
Between Floor Plan Adjustment Dates, M&T Bank may (but shall not be obligated to) fund to the Floor Plan Borrowers solely out
of M&T Bank’s own funds the entire principal amount of any Floor Plan Committed Loan requested pursuant to a Floor Plan Committed
Loan Notice, the Floor Plan Automated System or a Draft (any such funding being referred to as an “M&T Advance”). Each
Lender shall be deemed to have purchased an irrevocable and unconditional participation in each M&T Advance, in an amount equal to
each Lender’s respective Floor Plan Commitment Percentage of the principal amount of such M&T Advance, effective immediately
upon the funding of each M&T Advance. Each Lender shall have the unconditional and irrevocable obligation to pay, and does hereby
agree to pay, to M&T Bank, on each Floor Plan Adjustment Date, an amount equal to such Lender’s Floor Plan Commitment Percentage
of each M&T Advance, and settlement shall occur between M&T Bank and all other Lenders on each Floor Plan Adjustment Date such
that after each such settlement, the Lenders shall each hold that percentage of the then aggregate outstanding principal balances of
the Floor Plan Committed Loans equal to each Lender’s respective Floor Plan Commitment Percentage. Each Lender acknowledges and
agrees that its respective obligation to acquire participations in M&T Advances and make payments to M&T Bank on account of such
participations pursuant to this Section is absolute and unconditional and shall not be affected by any circumstance whatsoever, including
the occurrence and continuance of a Default or Event of Default (including, without limitation, the commencement of a proceeding under
the Bankruptcy Code or other Debtor Relief Laws with respect to any of Borrowers) or the reduction or termination of the Floor Plan Commitments,
and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever. All payments of principal,
interest and any other amount with respect to each outstanding M&T Advance shall be payable to and received by the Administrative
Agent for the account of M&T Bank. Any payments received by the Administrative Agent between Floor Plan Adjustment Dates that in
accordance with the terms of this Agreement are to be applied to the reduction of the outstanding aggregate principal balances of the
Floor Plan Committed Loans, shall be paid over to and retained by M&T Bank for such application to the outstanding M&T Advances
and credited against the Lenders’ respective purchases of participation interests in the respective M&T Advances, subject to
the provisions of Section 2.18.

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2.2.2       Automated
Sweep Program. M&T Bank may elect to process M&T Advances under any automated sweep program in effect at M&T Bank from
time to time to facilitate automatic M&T Advances to cover submitted Floor Plan Committed Loan Notices, requests pursuant to a Floor
Plan Automated System or Drafts.

 

2.2.3       Repayment
Obligations of Borrowers. For the avoidance of doubt, the applicable Floor Plan Borrowers hereby unconditionally promise to pay to
the Administrative Agent for the account of M&T Bank all amounts outstanding on account of the M&T Advances, together with accrued
interest thereon, on the terms and subject to the conditions applicable to the Floor Plan Committed Loans and the Floor Plan Notes. Nothing
in this Section 2.02, including but not limited to the purchase of participations in an M&T Advance pursuant to this Section 2.02
shall relieve the Floor Plan Borrowers of any obligation for payments under the Floor Plan Committed Loans and Floor Plan Notes, or under
the M&T Advances, or for any default by the Floor Plan Borrowers in the payment thereof.

 

Section 2.03.         Mortgage
Loans and Term Loans.

 

(a)           Mortgage
Loans. Subject to the terms and conditions set forth herein, each Lender severally has made a mortgage loan to AMR RE Holdings on
the Original Closing Date (the “Closing Date Mortgage Loans”) in an amount not to exceed such Lender’s Mortgage
Facility Commitment on the Original Closing Date. AMR RE Holdings has submitted a Term/Mortgage Committed Loan Notice for a Mortgage
Loan Borrowing of Base Rate Loans on the Original Closing Date in the aggregate principal amount of One Hundred Seventy-Nine Million
Dollars ($179,000,000). The Mortgage Facility, as committed as of the Original Closing Date, was advanced in a single Mortgage Loan Borrowing
in the aggregate principal amount of One Hundred Seventy-Nine Million Dollars ($179,000,000) upon the Original Closing Date which consisted
of Mortgage Loans made simultaneously by the Lenders pro-rata in accordance with their respective Mortgage Facility Commitments.
The aggregate principal balance outstanding under the Closing Date Mortgage Loans, as of the date set forth on Schedule 2.03(a), is as
set forth on Schedule 2.03(a) attached hereto. For the avoidance of doubt additional Mortgage Loans may also be advanced from time to
time under the Delayed Draw Facility and the Accordion Provision, subject to the terms and conditions set forth in this Agreement with
respect thereto.

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(b)                Term
Loans. Subject to the terms and conditions set forth herein, each Lender severally has made a term loan to the applicable Borrowers
on the Original Closing Date (the “Closing Date Term Loans”) in an amount not to exceed such Lender’s Term Loan
Facility Commitment on the Original Closing Date. Schedule 2.03(b)(1) sets forth, as agreed by the parties as of the Original
Closing Date, the Borrowers borrowing Closing Date Term Loans and the principal amount of the Closing Date Term Loans made on the Original
Closing Date to each such Borrower. The Closing Date Term Loans are further evidenced by the Term/Mortgage Committed Loan Notice for
a Term Loan Borrowing of Base Rate Loans on the Original Closing Date in the principal amount set forth on Schedule 2.03(b)(1).
The Term Loan Facility, as committed as of the Original Closing Date, was advanced in a single Term Loan Borrowing in the aggregate principal
amount of Seventy-Eight Million Dollars ($78,000,000) upon the Original Closing Date, consisting of Term Loans made simultaneously by
the Lenders pro-rata in accordance with their respective Term Loan Facility Commitments. The aggregate principal balance outstanding
under the Closing Date Term Loans, plus the Delayed Draw Term Loans made on the Original Closing Date, plus the Delayed
Draw Term Loans made after the Original Closing Date but prior to the Closing Date is, as of the date set forth on Schedule 2.03(b)(2),
as set forth on Schedule 2.03(b)(2) attached hereto. For the avoidance of doubt, additional Term Loans may also be advanced from time
to time under the Delayed Draw Facility and the Accordion Provision, subject to the terms and conditions set forth in this Agreement
with respect thereto.

 

(c)                No
Reborrowing; Types of Loans. Amounts borrowed under this Section 2.03 and repaid or prepaid may not be reborrowed. The Mortgage Loans
and the Term Loans may be either Base Rate Borrowings, or LIBOR Borrowings, or a combination thereof.

 

2.3.1            [Reserved].

 

2.3.2            Borrowings,
Conversions and Continuations of Loans.

 

(a)                General
Terms. Each Mortgage Loan Borrowing and Term Loan Borrowing (other than Mortgage Loan Borrowings and Term Loan Borrowings under the
Delayed Draw Facility, which shall be made pursuant to Section 2.04.2), each conversion of Mortgage Loans and Term Loans from one Type
to the other, and each continuation of Mortgage Loans and/or Term Loans as LIBOR Rate Loans shall be made upon the irrevocable written
notice given by the Borrower Representative on behalf of the applicable Borrowers to the Administrative Agent by delivery to the Administrative
Agent of a written Term/Mortgage Committed Loan Notice, completed and signed by a Responsible Officer of the Borrower Representative.
Each such notice must be received by the Administrative Agent not later than 2:00 p.m. (i) three (3) Business Days prior to the requested
date of any Borrowing of, conversion to or continuation of LIBOR Rate Loans or of any conversion of LIBOR Rate Loans to Base Rate Loans,
and (ii) on the requested date of any Borrowing of Base Rate Loans. Each Borrowing of, conversion to or continuation of LIBOR Rate Loans
shall be in a principal amount of at least One Million Dollars ($1,000,000). Each Term/Mortgage Committed Loan Notice delivered pursuant
to this Section 2.03.2 shall specify (i) the Borrower or Borrowers requesting such Borrowing, conversion or continuation, (ii) whether
such Borrower or Borrowers are requesting a Mortgage Loan Borrowing or a Term Loan Borrowing, a conversion of Mortgage Loans or Term
Loans from one Type to the other, or a continuation of Mortgage Loans and/or Term Loans as LIBOR Rate Loans, (iii) the requested Borrowing
Date, or the date of the conversion or continuation, as the case may be (which shall be a Business Day), (iv) the principal amount of
Mortgage Loans and/or Term Loans to be borrowed, converted or continued, (v) the Type of Loans to be borrowed or to which existing Mortgage
Loans and/or Term Loans are to be converted, and (vi) the duration of the Interest Period with respect thereto, if applicable. If the
Borrowers fail to specify a Type of Loan in a Term/Mortgage Committed Loan Notice or if the Borrowers fail to give a timely notice requesting
a conversion or continuation, then the applicable Mortgage Loans or Term Loans shall be made as, or converted to, LIBOR Rate Loans with
an Interest Period of one month. Any such automatic conversion to Base Rate Loans shall be effective as of the last day of the Interest
Period then in effect with respect to the applicable LIBOR Rate Loans. If the Borrowers request a Borrowing of, conversion to, or continuation
of LIBOR Rate Loans in any such Term/Mortgage Committed Loan Notice but fail to specify an Interest Period, they will be deemed to have
specified an Interest Period of one month.

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(b)           Funding.
Following receipt of a Term/Mortgage Committed Loan Notice, the Administrative Agent shall promptly notify each Lender of the amount
of its Applicable Percentage of the applicable Class of Loans, as the case may be, and if no timely notice of a conversion or continuation
is provided by the Borrower Representative, the Administrative Agent shall notify each Lender of the details of any automatic conversion
to LIBOR Rate Loans described in Section 2.03.2(a). In the case of a Mortgage Loan Borrowing or a Term Loan Borrowing, each Lender shall
make the amount of its Loan available to the Administrative Agent in immediately available funds at the Administrative Agent’s
Office not later than 1:00 p.m. on the Business Day specified in the applicable Term/Mortgage Committed Loan Notice. Upon satisfaction
of the applicable conditions precedent set forth in Section 4.02, the Administrative Agent shall make all funds so received available
to the applicable Borrower in like funds as received by the Administrative Agent either by (i) crediting the Commercial Account of the
Borrowers with the amount of such funds or (ii) wire transfer of such funds, in each case, in accordance with instructions provided to
(and reasonably acceptable to) the Administrative Agent by the Borrowers.

 

(c)           Election
of LIBOR Rate. Except as otherwise provided herein, a LIBOR Rate Loan may be continued or converted only on the last day of an Interest
Period for such LIBOR Rate Loan. During the existence of a continuing Default or Event of Default, no Loans may be requested as, converted
to or continued as LIBOR Rate Loans without the consent of the Required Lenders.

 

(d)           Notice
of Rates. The Administrative Agent shall promptly notify the Borrowers and the Lenders of the interest rate applicable to any Interest
Period for LIBOR Rate Loans upon determination of such interest rate. At any time that Base Rate Loans are outstanding, the Administrative
Agent shall notify the Borrowers and the Lenders of any change in the Prime Rate or any other index used in determining the Base Rate
promptly following the public announcement of such change.

 

(e)           Initial
Borrowing. Anything in this Section 2.03 to the contrary notwithstanding, the Borrowers may not select the LIBOR Rate for the initial
Borrowing of Closing Date Mortgage Loans or Closing Date Term Loans.

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2.3.3             Payment.
(a) Mortgage Loans. Without duplication of Section 2.04.4 and except as provided with respect to any Class of Additional Mortgage
Loans in an applicable Incremental Amendment, the applicable Borrowers shall repay the aggregate principal amount of all Mortgage Loans
in monthly payments equal to one-twelfth (1/12th) of the sum of (i) the original principal amount of the Closing Date Mortgage
Loans, plus (ii) the original principal amount of any Facility Increase to the Mortgage Facility and any Additional Mortgage Loans,
multiplied by the corresponding percentage applicable during each Loan Year as set forth below. Monthly principal payments shall
be due and payable on each Principal Payment Date, beginning with the Principal Payment Date in the first full month following the Original
Closing Date and continuing until the Original Maturity Date. Accrued interest on all principal balances from time to time outstanding
under the Mortgage Loans shall be payable in arrears at the rates per annum set forth in Sections 2.03.2 and 2.05 of this Agreement and
shall be due and payable on each applicable Interest Payment Date. All remaining unpaid balances of each Class of Mortgage Loans (including
any Facility Increase to the Mortgage Facility and any Additional Mortgage Loans, but excluding any Delayed Draw Mortgage Loans (for
the avoidance of doubt, repayment of Delayed Draw Mortgage Loans is provided for in Section 2.04.4)), including all unpaid principal,
accrued and unpaid interest, fees and Credit Party Expenses which are due and owing in connection therewith, shall be paid in full on
the Maturity Date for such Class. Payments due under this Section 2.03.3(a) shall give effect to any applicable prepayments applied under
Sections 2.03.4 or 2.03.5 with respect to each applicable Principal Payment Date.

 

	Loan Year	 	 	Annual Principal
    Amortization Percentage	 
	1	 	 	 	2.25%	 
	2	 	 	 	2.50%	 
	3	 	 	 	2.50%	 
	4	 	 	 	2.75%	 
	5	 	 	 	3.00%	 
	Maturity
                                   Date
	 	 	 	Remaining
                                            Balance
	 

 

(b) Term Loans. Without duplication of Section
2.04.4 and except as provided with respect to any Class of Additional Term Loans in an applicable Incremental Amendment, the applicable
Borrowers shall repay the aggregate principal amount of all Term Loans in monthly payments equal to one-twelfth (1/12th) of
the sum of (i) the original principal amount of the Closing Date Term Loans, plus (ii) the original principal amount of any Facility
Increase to the Term Loan Facility and any Additional Term Loans, multiplied by the corresponding percentage applicable during
each Loan Year as set forth below. Monthly payments of principal shall be due and payable on each Principal Payment Date, beginning with
the Principal Payment Date in the first full month following the Original Closing Date and continuing until the Original Maturity Date.
Accrued interest on all principal balances from time to time outstanding under the Term Loans shall be payable in arrears at the rates
per annum set forth in Sections 2.03.2 and 2.05 of this Agreement and shall be due and payable on each applicable Interest Payment Date.
All remaining unpaid balances of each Class of Term Loans (including any Facility Increase to the Term Loan Facility and any Additional
Term Loans from time to time, but excluding any Delayed Draw Term Loans (for the avoidance of doubt, repayment of Delayed Draw Term Loans
is provided for in Section 2.04.4)), including all unpaid principal, accrued and unpaid interest, fees and Credit Party Expenses which
are due and owing in connection therewith, shall be paid in full on the Maturity Date for such Class. Payments due under this Section
2.03.3(b) shall give effect to any applicable prepayments applied under Sections 2.03.4 or 2.03.5 with respect to each applicable Principal
Payment Date.

 

	Loan Year	 	 	Annual Principal
    Amortization Percentage	 
	1	 	 	 	7.50%	 
	2	 	 	 	10.00%	 
	3	 	 	 	10.00%	 
	4	 	 	 	10.00%	 
	5	 	 	 	10.00%	 
	Maturity
                                   Date
	 	 	 	Remaining
                                            Balance
	 

 

2.3.4             Mandatory
Prepayments.

 

(a)             Excess
Cash Flow Recapture. Commencing with the Fiscal Quarter ending December 31, 2017, the Borrower Representative shall, within fifteen
(15) calendar days after the due date for delivery of the respective Compliance Certificate in accordance with Section 5.08.4 hereof,
pay, or cause to be paid, to the Administrative Agent for the account of the Lenders for each successive Fiscal Quarter if at the end
of such Fiscal Quarter the Total Leverage Ratio is greater than 2.50:1.00, an amount equal to fifty percent (50%) of the Excess Cash
Flow of GPB Prime and its Subsidiaries for such Fiscal Quarter most recently ended. Beginning with the 2018 Fiscal Year, the sum of the
Excess Cash Flow payments calculated for each of the four Fiscal Quarters of each Fiscal Year shall be adjusted annually with the delivery
of the audited financial statements provided pursuant to Section 5.08.2 for such Fiscal Year, based on a comparison of the amount of
the Excess Cash Flow determined by the audited results for such Fiscal Year with the sum of the four Excess Cash Flow calculations determined
for each of the respective Fiscal Quarters in such Fiscal Year and, (x) if, for any Fiscal Year, the Excess Cash Flow calculation for
the 12-month period derived from the respective audit is greater than the sum of the Fiscal Quarter calculations (“Excess Cash
Flow deficiency”), then, for the Fourth Quarter of such Fiscal Year, the Borrower shall pay to the Administrative Agent the Excess
Cash Flow payment determined for the applicable fourth Fiscal Quarter, plus 50% of the Excess Cash Flow deficiency, or (y) if,
for any Fiscal Year, the Excess Cash Flow calculation for the 12-month period derived from the respective audit is less than the sum
of the Fiscal Quarter calculations (“Excess Cash Flow overage”), then, for the Fourth Quarter of such Fiscal Year, the Borrower
shall pay to the Administrative Agent the Excess Cash Flow payment determined for the applicable fourth Fiscal Quarter, minus 50%
of the Excess Cash Flow overage; provided, however, if, no Excess Cash Flow calculation is required for one or more of the Fiscal
Quarters in any Fiscal Year as a result of giving effect to the Total Leverage Ratio threshold described in this section, no reconciliation
to the audited results will be required for such Fiscal Year. The amount of any mandatory prepayments due from the Excess Cash Flow for
any Fiscal Quarter shall be reduced by the amount of any voluntary prepayments made by any Loan Party in accordance with Section 2.03.5
during such Fiscal Quarter. For the avoidance of doubt, (i) if any Excess Cash Flow payments are required to be paid under this Section
2.03.4 (a), such payments shall be paid in conjunction with, and prior to the payment of, any Restricted Payments under Section 6.07,
(ii) any Compliance Certificate which demonstrates a Total Leverage Ratio calculation of greater than 2.50:1.00 shall include a calculation
of Excess Cash Flow, and (iii) any Compliance Certificate which demonstrates a Total Leverage Ratio calculation of 2.50:1.00 or less
shall not include a calculation of Excess Cash Flow.

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(b)         Extraordinary
Receipts. The Borrower Representative shall pay, or cause to be paid, to the Administrative Agent for the accounts of the applicable
Lenders the amount of any Extraordinary Receipts within three (3) Business Days of the receipt thereof by any Loan Party or any Subsidiary
of any Loan Party. The provisions of this Section 2.03.4(b) shall not be deemed a waiver of or constitute the implied consent of the
Credit Parties to any transactions which are either prohibited by the terms of the Credit Documents or which by the terms of any of the
Credit Documents require the prior consent of any or all of the Credit Parties.

 

The mandatory prepayments set forth in this Section
2.03.4 shall be applied (a) to the first twelve (12) remaining amortization installments of (in the following order of application) (i)
Term Loans incurred under the Term Loan Facility, including pursuant to the Accordion Provision, (ii) Delayed Draw Term Loans, including
pursuant to the Accordion Provision, (iii) Mortgage Loans incurred under the Mortgage Facility, including pursuant to the Accordion Provision,
and (iv) Delayed Draw Mortgage Loans, including pursuant to the Accordion Provision, in each case, in the direct order of scheduled maturities,
and (b) thereafter, pro rata to all remaining amortization installments of (in the following order of application) (i) Term Loans
incurred under the Term Loan Facility, including pursuant to the Accordion Provision, (ii) Delayed Draw Term Loans, including pursuant
to the Accordion Provision, (iii) Mortgage Loans incurred under the Mortgage Facility, including pursuant to the Accordion Provision
and (iv) Delayed Draw Mortgage Loans, including pursuant to the Accordion Provision.

 

2.3.5       Voluntary
Prepayments. The Borrowers may, upon notice to the Administrative Agent from the Borrower Representative, at any time or from time
to time voluntarily prepay any Class of Mortgage Loans and Term Loans, selected by the Borrower Representative, in whole or in part without
fees or penalties; provided that (a) such notice must be received by the Administrative Agent not later than 3:00 p.m. three (3)
Business Days prior to any date of prepayment and (b) any voluntary prepayment of Mortgage Loans and Term Loans shall be in a principal
amount of not less than One Million Dollars ($1,000,000) (or such lesser amount then outstanding). Each such notice shall specify the
date and amount of such prepayment, the Class of Loans to be prepaid and, if LIBOR Borrowings are to be prepaid, the Interest Period(s)
of such LIBOR Borrowings. The Administrative Agent will promptly notify each Lender of its receipt of each such notice, and of the amount
of such Lender’s pro rata share (calculated as such Lender’s Applicable Percentage) of such prepayment. If such notice is
given by the Borrower Representative, the applicable Borrowers shall make such prepayment and the payment amount specified in such notice
shall be due and payable on the date specified therein. Any prepayment of a LIBOR Borrowing shall be accompanied by all accrued interest
on the amount prepaid, together with any additional amounts required pursuant to Section 2.05.2(a). Each such prepayment shall be applied
(x) to the Class of Loan(s) referenced in the applicable notice of prepayment submitted to the Administrative Agent (and if not specified
in the applicable notice of prepayment, pro rata to the outstanding Mortgage Loans and Term Loans), (y) in accordance with the Applicable
Percentage of each Lender and (z) to reduce the remaining scheduled installments of principal within the applicable Class of Loans as
directed by the Borrower Representative on or prior to such voluntary prepayment (and in the absence of such direction, in the direct
order of maturity). Notwithstanding anything to the contrary contained in this Agreement, the Borrower Representative may rescind (or
delay the date of prepayment identified in) any notice of prepayment under this Section 2.03.5 if such prepayment would have resulted
from a refinancing of all or a portion of the applicable Credit Facility or other conditional event, which refinancing or other conditional
event shall not be consummated or shall otherwise be delayed.

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2.3.6       Purpose.
The proceeds of the Loans under the Mortgage Facility and the Term Loan Facility shall be used to finance working capital, finance
capital expenditures, finance the Specified Original Closing Distribution, refinance the Existing Credit Facilities, pay closing costs
and fees and for general corporate purposes, including, without limitation, Permitted Acquisitions and other Investments and any other
transaction not prohibited by this Agreement.

 

Section 2.04.     Delayed
Draw Facility. During the Availability Period, and subject to the terms and conditions set forth herein, each of the Lenders severally
agrees to make senior secured mortgage loans (each such loan, a “Delayed Draw Mortgage Loan” and, collectively, the
 “Delayed Draw Mortgage Loans”) or term loans (each such loan, a “Delayed Draw Term Loan” and, collectively,
the “Delayed Draw Term Loans”; the Delayed Draw Mortgage Loans and the Delayed Draw Term Loans, collectively, the
 “Delayed Draw Loans”) to the applicable Borrowers; provided that: (a) with respect to each Lender, the maximum
amount of principal advanced as Delayed Draw Loans under the Delayed Draw Facility shall not exceed the amount of such Lender’s
respective Delayed Draw Facility Commitment, (b) the maximum aggregate principal amount of Delayed Draw Borrowings advanced by all Lenders
and from time to time shall not exceed the Delayed Draw Dollar Cap, (c) any Delayed Draw Borrowing requested by a Borrower shall be in
a principal amount of at least One Million Dollars ($1,000,000) (provided that, with respect to a Delayed Draw Borrowing of Delayed
Draw Mortgage Loans subject to a Project Budget (as defined in the Delayed Draw Disbursement Procedures), the foregoing minimum Delayed
Draw Borrowing amount shall be measured solely with respect to the total amount reserved for Delayed Draw Loans in the Project Budget
submitted to the Administrative Agent in accordance with the Delayed Draw Disbursement Procedures (and, for the avoidance of doubt, shall
not be measured with respect to each component disbursement of Delayed Draw Mortgage Loans in connection with such Project under the
Delayed Draw Disbursement Procedures)) and (d) repayments of Delayed Draw Loans may not be readvanced. The Delayed Draw Loans shall be
designated by the applicable Borrowers as either Delayed Draw Mortgage Loans or Delayed Draw Term Loans. The Delayed Draw Loans may be
either Base Rate Borrowings, or LIBOR Borrowings, or a combination of each Type. The Borrowers under each Delayed Draw Loan shall consist
of (and be limited to) the applicable Borrowers requesting such Delayed Draw Loan (for the avoidance of doubt, requests for Delayed Draw
Borrowings under Section 2.04.2 may be made by any [*****] Borrower and/or any Non-[*****] Borrower).

 

2.4.1       Purpose.
(a) The proceeds of Delayed Draw Mortgage Loans shall be available to fund project costs for real estate development, acquisition and
build-out projects and real estate capital improvement projects (collectively, the “Real Estate Costs”), in each case,
in an aggregate amount of up to eighty-five percent (85%) of the total Real Estate Costs for each real estate project; provided
that, solely with respect to any Real Estate Costs directly attributable to the acquisition of real estate (excluding, for the avoidance
of doubt, costs attributable to development, build-out and capital improvements) (the “Real Estate Acquisition Costs”),
the portion of the applicable Delayed Draw Mortgage Loan that may be used to fund such Real Estate Acquisition Costs for such project
shall not exceed eighty-five percent (85%) of the appraised value of such acquired real estate reflected in the applicable Real Estate
Appraisal provided under Section 5.15.3. For the avoidance of doubt, proceeds of Delayed Draw Mortgage Loans shall be used only for real
estate projects in connection with the business operations of a Loan Party which is a direct or indirect Subsidiary of GPB Prime.

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(b) The proceeds of Delayed
Draw Term Loans shall be available to fund (a) an initial Original Closing Date draw in an amount of approximately Two Million Three
Hundred Thirty Thousand Dollars ($2,330,000.00) to refinance certain outstanding equipment loans made for the acquisition of furniture,
fixtures and equipment related to the furnishing of new Audi, Porsche, Acura and Hyundai dealership facilities, and (b) after the Original
Closing Date from time to time, up to 50% of blue sky project costs related to acquisitions, start-up, development and other capital
expenditures in respect of new dealerships and improvements and other capital expenditures in respect of existing dealerships (in each
case, other than with respect to Real Estate Costs).

 

2.4.2       Borrowings
of Delayed Draw Loans.

 

(a)           Borrowing
Request. Each Delayed Draw Borrowing shall be made upon the irrevocable written notice given by the Borrower Representative on behalf
of the applicable Borrowers to the Administrative Agent by delivery to the Administrative Agent of a written Term/Mortgage Committed
Loan Notice, completed and signed by a Responsible Officer of the Borrower Representative. Each such notice of a Delayed Draw Borrowing
must be received by the Administrative Agent not later than 2:00 p.m. ten (10) Business Days prior to the requested date of any Delayed
Draw Borrowing (or, with respect to the Delayed Draw Term Loans requested to be funded on the Original Closing Date, the notice of a
Delayed Draw Borrowing was delivered with the Credit Agreement on the Original Closing Date). Each Term/Mortgage Committed Loan Notice
shall specify (i) the Borrower or Borrowers requesting such Borrowing, (ii) the purpose for which the advance is being requested (accompanied
by reasonable supporting documentation), (iii) the Class of Loans the applicable Borrowers are requesting (and if the notice fails to
make an election as to such form, it will be declined), (iv) the requested Borrowing Date (which shall be a Business Day), (v) the principal
amount of Delayed Draw Loans to be borrowed, (vi) the Type of Loans to be borrowed, and (vii) the duration of the Interest Period with
respect thereto, if applicable. Notwithstanding anything else provided herein, a single Interest Period shall apply to all Delayed Draw
Mortgage Loans outstanding at any time in respect of all Delayed Draw Mortgage Loans set forth in an applicable Project Budget submitted
to the Administrative Agent under the Delayed Draw Disbursement Procedures (to the extent additional Delayed Draw Mortgage Loans in connection
with such Project are borrowed during any Interest Period, such additional Delayed Draw Mortgage Loans shall automatically be deemed
to have an Interest Period equal to the remaining Interest Period for the then-existing Delayed Draw Mortgage Loans in respect of such
Project). Each Term/Mortgage Committed Loan Notice requesting a Delayed Draw Mortgage Loan in respect of a Project shall also be accompanied
by all applicable information and documents required under the Delayed Draw Disbursement Procedures with respect to such Project. With
respect to a Delayed Draw Mortgage Loan to be made in respect of any Major Project, Administrative Agent may elect to retain an inspector
at the applicable Borrower’s expense to verify the status and condition of any work being funded with such Delayed Draw Borrowing.
As a condition to the making of any Delayed Draw Mortgage Loan, the Administrative Agent may elect to obtain a title insurance endorsement
to the extent available under the title insurance regulations in the applicable jurisdiction with respect to the title insurance policy
covering the Real Property on which such work is being performed or Real Property which is being acquired using the proceeds of any Delayed
Draw Mortgage Loans, including but not limited to uses of proceeds for acquisition of Real Property, building, remodeling, capital improvements,
removal, demolition, restoration, alteration, repairs, installation, renovation, or construction of improvements, restoration or alteration
of land, or any other construction or development of any nature with respect to the Real Property.

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(b)           Additional
Conditions and Funding. Following receipt of a Term/Mortgage Committed Loan Notice, the Administrative Agent shall promptly notify
each Lender of the amount of its Applicable Percentage of Delayed Draw Loans, the Class of Loans requested and the details of the use
of funds. Each Lender shall make the amount of its Loan available to the Administrative Agent in immediately available funds at the Administrative
Agent’s Office not later than 1:00 p.m. on the Business Day specified in the applicable Term/Mortgage Committed Loan Notice. Upon
satisfaction of the applicable conditions precedent set forth in Sections 2.04.1 and 4.02 and this Section, the Administrative Agent
shall make all funds so received available to the Borrowers by crediting the Commercial Account with the aggregate of the amounts made
available to the Administrative Agent by the Lenders and in like funds as received by the Administrative Agent; provided, however
that the Administrative Agent shall have the right to make disbursements through a title insurance company.

 

(c)           Conversion
and Continuation of Delayed Draw Loans. Each request for conversion of Delayed Draw Loans from one Type to the other or continuation
of Delayed Draw Mortgage Loans and/or Delayed Draw Term Loans as LIBOR Rate Loans shall be made in accordance with Section 2.03.2.

 

(d)           Election
of LIBOR Rate. Except as otherwise provided herein, a LIBOR Rate Loan may be continued or converted only on the last day of an Interest
Period for such LIBOR Rate Loan. During the existence of a continuing Default or Event of Default, no Loans may be requested as, converted
to or continued as LIBOR Rate Loans without the consent of the Required Lenders.

 

(e)           Notice
of Rates. The Administrative Agent shall promptly notify the Borrowers and the Lenders of the interest rate applicable to any Interest
Period for LIBOR Rate Loans upon determination of such interest rate. At any time that Base Rate Loans are outstanding, the Administrative
Agent shall notify the Borrowers and the Lenders of any change in the Prime Rate or any other index used in determining the Base Rate
promptly following the public announcement of such change.

 

2.4.3       Repayment
of Delayed Draw Loans. Each Delayed Draw Loan shall amortize in equal monthly installments in aggregate annual amounts consistent
with the amortization grids applicable to Mortgage Loans under the Mortgage Facility in Section 2.03.3(a) and Term Loans under the Term
Loan Facility in Section 2.03.3(b), as applicable, based upon the designation of a given Delayed Draw Loan as a Delayed Draw Mortgage
Loan or a Delayed Draw Term Loan. The applicable Borrower shall repay the aggregate principal amount of each Class of Delayed Draw Loans
(including any Facility Increase to such Class of Delayed Draw Loans) advanced and outstanding from time to time, in monthly payments
equal to one-twelfth (1/12th) of the applicable aggregate annual amortization amount, calculated based on the cumulative total of the
original principal amounts of each Class of Delayed Draw Mortgage Loans and Delayed Draw Term Loans advanced from time to time multiplied
by the corresponding percentage applicable during each Loan Year as set forth in Section 2.03.3(a) or 2.03.3(b), respectively. Accrued
interest on all principal balances from time to time outstanding under each Class of Delayed Draw Loans shall be payable in arrears at
the rates per annum set forth in Sections 2.4.2  and 2.05 of this Agreement and shall be due and payable on each applicable
Interest Payment Date. All remaining unpaid balances of each Class of Delayed Draw Loans (including any Facility Increase to such Class
of Delayed Draw Loans), including all unpaid principal, accrued and unpaid interest, fees, Credit Party Expenses, and other sums and
charges which are due and owing in connection therewith, shall be paid in full on the Maturity Date for such Class.

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2.04.4   Commitment Termination
of Delayed Draw Facility Commitments. The Borrowers may, at any time and from time to time, upon written notice to the Administrative
Agent by the Borrower Representative, voluntarily terminate and reduce unfunded Delayed Draw Facility Commitments in whole or in part
without fees, prepayment premiums or penalties; provided that any such termination and reduction (x) shall be in minimum amounts
of One Million Dollars ($1,000,000) (or such lesser amount to the extent the remaining Delayed Draw Facility Commitments are less than
such amount) and (y) shall be allocated ratably among the Lenders in proportion to their Applicable Percentages with respect to all Delayed
Draw Facility Commitments. Notwithstanding anything to the contrary contained in this Agreement, the Borrower Representative may rescind
(or delay the date of termination and reduction identified in) any notice of termination and reduction under this Section 2.04.4 if such
termination and reduction would have resulted from a refinancing of all or a portion of the Delayed Draw Facility or other conditional
event, which refinancing or other conditional event shall not be consummated or shall otherwise be delayed.

 

Section 2.05.   Interest Terms Applicable
To The Loans. Subject to the provisions of Section 2.05.1, 2.05.2, and 2.05.3 below, (a) each LIBOR Borrowing of a Mortgage Loan,
Term Loan, and Delayed Draw Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per
annum equal to the LIBOR Rate for such period Interest Period plus the Applicable Rate; (b) each Base Rate Borrowing of a Mortgage
Loan, Term Loan, and Delayed Draw Loan shall bear interest on the outstanding principal amount thereof from the applicable Borrowing
Date at a rate per annum equal to the Base Rate plus the Applicable Rate; (c) each LIBOR Borrowing of a Floor Plan Committed Loan
shall bear interest on the outstanding principal amount thereof from the applicable Borrowing Date at a rate per annum equal to the LIBOR
Rate plus the Applicable Rate; and (d) each Base Rate Borrowing of a Floor Plan Committed Loan shall bear interest on the outstanding
principal amount thereof from the applicable Borrowing Date at a rate per annum equal to the Base Rate plus the Applicable Rate.
Interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as
may be specified herein. Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and
before and after the commencement of any proceeding under any Debtor Relief Law.

 

2.5.1     Default
Rate.

 

(a)              If
any amount of principal of any Loan is not paid when due (without regard to any applicable grace periods), whether at stated maturity,
by acceleration or otherwise, then upon the request of the Required Lenders, such amount shall thereafter bear interest at a fluctuating
interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws.

 

(b)              If
any amount (other than principal of any Loan) payable by any Borrower under any Credit Document is not paid when due (after giving effect
to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, then upon the request of the Required Lenders,
such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest
extent permitted by applicable Laws.

 

(c)              Upon
the request of the Required Lenders, while any Event of Default exists (other than as set forth in Sections 2.05.1(a) and 2.05.1(b) above),
the applicable Borrowers shall pay interest on the principal amount of all outstanding Loans hereunder at a fluctuating interest rate
per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws.

 

(d)              Imposition
of the Default Rate may, at the election of the Required Lenders, be applied retroactively to the date of the occurrence of the Event
of Default (but not in excess of one hundred eighty (180) days prior to the date of imposition).

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(e)              Without
limiting any other rights and remedies available to the Credit Parties by this Agreement or applicable Laws, accrued and unpaid interest
on past due amounts (including interest on past due interest) shall be due and payable upon demand.

 

	 

	2.5.2

	LIBOR Borrowing Option.

 

(a)              Breakage
Costs. The applicable Borrowers promise to compensate the Lenders from time to time, upon demand from any Lender through the Administrative
Agent, for all losses (excluding lost profits and Applicable Rate), expenses, costs and liabilities (including all interest paid to lenders
of funds borrowed by the Lenders to carry LIBOR Borrowings other than a Floor Plan Committed Borrowing) which any of the Lenders sustains
if: (A) any repayment or prepayment of any LIBOR Borrowings other than a Floor Plan Committed Borrowing (including any payment resulting
from the acceleration of the Loans in accordance with the terms of this Agreement or from an assignment required by Sections 2.14.2 or
10.12 of this Agreement) or any conversion of a LIBOR Borrowing other than a Floor Plan Committed Borrowing for any reason occurs on
a date which is not the last day of the applicable Interest Period; or (B) any failure by the applicable Borrowers to borrow a LIBOR
Borrowing other than a Floor Plan Committed Borrowing or convert a Base Rate Borrowing to a LIBOR Borrowing other than a Floor Plan Committed
Borrowing on the date for such borrowing or conversion specified in the relevant notice of election given by the applicable Borrowers
to the Administrative Agent in accordance with the terms of this Agreement.

 

(b)              Availability
of Interest Rates Based Upon LIBOR. If prior to the commencement of any Interest Period for a LIBOR Borrowing: (i) the Administrative
Agent is advised that the Required Lenders have determined that a Change In Law or a change in market conditions has made it impractical
for the Lenders to offer pricing based on the LIBOR Rate; or (ii) the Administrative Agent determines (which determination shall be conclusive
absent manifest error) that adequate and reasonable means do not exist for ascertaining the LIBOR Rate for such Interest Period; or (iii)
the Administrative Agent is advised by the Required Lenders that the LIBOR Rate applicable to such Interest Period will not adequately
and fairly reflect the cost to the Lenders of making or maintaining the proposed LIBOR Borrowing for such Interest Period; then the Administrative
Agent shall give notice thereof to the Borrowers and the Lenders as promptly as practicable thereafter and, until the Administrative
Agent notifies the Borrowers and the Lenders that the circumstances giving rise to such notice no longer exist, any request to convert
any borrowing to, or continue any borrowing as, a LIBOR Borrowing shall be ineffective and any requested LIBOR Borrowing shall bear interest
at the Base Rate plus the Applicable Rate.

 

(c)              Illegality.
If any Lender reasonably determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful,
for any Lender or its applicable Lending Office to perform any of its obligations hereunder or make, determine, maintain, fund or charge
any interest based upon LIBOR with respect to any Borrowing, or any Governmental Authority has imposed material restrictions on the authority
of such Lender to purchase or sell, or to take deposits of, Dollars in the London interbank market, then, on notice thereof by such Lender
to the Borrower Representative through the Administrative Agent, (i) any obligation of such Lender to issue, make, determine, maintain,
fund or charge interest based upon LIBOR with respect to any Borrowing or continue LIBOR Rate Loans or to convert Base Rate Loans to
LIBOR Rate Loans shall be suspended, and (ii) if such notice asserts the illegality of such Lender making or maintaining Base Rate Loans
the interest rate on which is determined by reference to the LIBOR Rate component of the Base Rate, the interest rate on such Base Rate
Loans of such Lender shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to the
LIBOR component of the Base Rate, in each case until such Lender notifies the Administrative Agent and the Borrower Representative that
the circumstances giving rise to such determination no longer exist. Upon receipt of such notice, (x) the applicable Borrowers shall,
upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all LIBOR Rate Loans of such
Lender to Base Rate Loans (the interest rate on such Base Rate Loans of such Lender shall, if necessary to avoid such illegality, be
determined by the Administrative Agent without reference to the LIBOR Rate component of the Base Rate), either on the last day of the
Interest Period therefor, if such Lender may lawfully continue to maintain such LIBOR Rate Loans to such day, or immediately, if such
Lender may not lawfully continue to maintain such LIBOR Rate Loans or if such Loans bear interest based upon a daily-adjusting LIBOR
Rate and (y) if such notice asserts the illegality of such Lender determining or charging interest rates based upon the LIBOR Rate, the
Administrative Agent shall during the period of such suspension compute the Base Rate applicable to such Lender without reference to
the LIBOR Rate component thereof until the Administrative Agent is advised in writing by such Lender that it is no longer illegal for
such Lender to determine or charge interest rates based upon the LIBOR Rate. Upon any such prepayment or conversion, each applicable
Borrower shall also pay accrued interest on the amount so prepaid or converted.

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(d)         Termination
of Right to Elect LIBOR Borrowings. Notwithstanding anything to the contrary set forth in this Agreement, and without limiting any
other rights and remedies of the Lenders, the Required Lenders during any continuing Default or Event of Default may suspend the right
of the Borrowers to elect any new LIBOR Borrowing or to convert any Base Rate Borrowing into a LIBOR Borrowing or to permit any LIBOR
Borrowing to be continued as a LIBOR Borrowing, in which case all LIBOR Borrowings shall be converted (on the last day of the respective
Interest Periods therefor) to Base Rate Borrowings.

 

(e)         Interest
Periods. After giving effect to all Mortgage Loan Borrowings and Term Loan Borrowings, as the case may be, all conversions of any
Mortgage Loans and/or Term Loans from one Type to the other, and all continuations of Mortgage Loans and/or Term Loans as the same Type,
there shall not be more than twelve (12) Interest Periods in effect in respect of the Mortgage Facility, the Term Loan Facility or the
Delayed Draw Facility (including in respect of any Additional Mortgage Loans and Additional Term Loans); provided, that after
the establishment of any new Class of Loans pursuant to an Incremental Amendment, the number of Interest Periods otherwise permitted
by this Section 2.05.2(e) shall increase by one (1) Interest Period for each applicable Class so established.

 

2.5.3     Interest Rate
Limitation. Notwithstanding anything to the contrary contained in any Credit Document, the interest paid or agreed to be paid under
the Credit Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”).
If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall
be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to Borrowers. In determining whether the interest
contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent
permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest,
(b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts
the total amount of interest throughout the contemplated term of the Obligations hereunder

 

Section 2.06.   Fees.
The Borrower Representative agrees to pay the following fees:

 

2.6.1     Fee Letter.
The Borrower Representative agrees to pay to M&T Bank for M&T Bank’s own account such fees as are required by the terms
of the Fee Letter.

 

2.6.2     Floor Plan
Commitment Fee. For each Fiscal Quarter, until the last day of the Availability Period, the Borrower Representative agrees to pay
to the Administrative Agent for the ratable accounts of the Lenders a per annum fee (the “Floor Plan Commitment Fee”)
calculated by subtracting (i) the average daily aggregate disbursed principal balances of all outstanding Floor Plan Committed Loans
during such Fiscal Quarter or portion thereof (calculated on the basis of the actual number of days
elapsed in a year of 360 days) from (ii) an amount equal to the total amount of the Floor Plan Commitments, and multiplying any positive
difference thereof by the Applicable Rate for Floor Plan Commitment Fees then in effect. The Floor Plan Commitment Fee shall be payable
in arrears on the last Business Day of each succeeding Fiscal Quarter, the first of such payments to be paid on March 31, 2017.

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2.6.3     Delayed Draw
Unused Commitment Fee. For each Fiscal Quarter, until the last day of the Availability Period, the Borrower Representative agrees
to pay to the Administrative Agent for the ratable accounts of the Lenders a per annum fee (the “Delayed Draw Facility Unused
Commitment Fee”) calculated by subtracting (i) the average daily aggregate disbursed principal balances of all outstanding
Delayed Draw Loans during such Fiscal Quarter or portion thereof (calculated on the basis of the actual number of days elapsed in a year
of 360 days) from (ii) an amount equal to the total amount of the Delayed Draw Facility Commitments then in effect, and multiplying any
positive difference thereof by the Applicable Rate then in effect. The Delayed Draw Facility Unused Commitment Fee shall be payable in
arrears on the last Business Day of each succeeding Fiscal Quarter, the first of such payments to be paid on March 31, 2017.

 

Section 2.07.       Computations
of Interest; Retroactive Adjustments of Applicable Rate.

 

(a)         All
computations of interest for Base Rate Loans (including Base Rate Loans determined by reference to the LIBOR Rate) shall be made on the
basis of a year of 365 or 366 days, as the case may be, and actual days elapsed. All other computations of fees and interest shall be
made on the basis of a 360-day year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if
computed on the basis of a 365-day year). Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue
on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid, provided that any Loan that is repaid on the
same day on which it is made shall bear interest for one day. Each determination by the Administrative Agent of an interest rate or fee
hereunder shall be conclusive and binding for all purposes, absent manifest error.

 

(b)         If,
as a result of any restatement of or other adjustment to the financial statements of GPB Prime or Parent Holdings Guarantor and their
respective Subsidiaries, the Administrative Agent (i) reasonably determines that (A) the Total Leverage Ratio as calculated by the Borrower
Representative as of any applicable date was inaccurate and (B) a proper calculation of the Total Leverage Ratio would have resulted
in higher pricing for such period and (ii) the Administrative Agent notifies the Borrowers of such determination within twenty four (24)
months of the Administrative Agent becoming aware of such restatement or other adjustment, then the applicable Borrowers shall be obligated
to pay to the Administrative Agent, for the account of the applicable Lenders, within five (5) Business Days of demand by the Administrative
Agent, an amount equal to the excess of the amount of interest and fees that should have been paid for such period over the amount of
interest and fees actually paid for such period; provided, however, that (x) the rights of the Administrative Agent and
Lenders under this Section 2.07(b) shall terminate upon payment in full of the Obligations (other than contingent indemnification obligations)
and the termination of the Commitments hereunder, (y) any nonpayment of such additional interest and fees shall not constitute a Default
or Event of Default (whether retroactively or otherwise) and (z) no such amounts shall be deemed overdue, in each case, until the expiration
of such five (5) Business Day-period. This paragraph shall not limit the rights of the Administrative Agent or any Lender, as the case
may be, under Section 2.05.1 or under Articles 7 and 8 of this Agreement.

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Section 2.08.       Evidence
of Debt.

 

(a)              The
Loans made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by the Administrative Agent
in the ordinary course of business, which accounts or records shall include (i) the portion of each Loan made to each Borrower, (ii)
the character of each Loan as a Floor Plan Committed Loan, Term Loan under the Term Loan Facility,Term
Loan under the Delayed Draw Facility, Mortgage Loan under the Mortgage Facility and Mortgage Loan under the Delayed Draw Facility, and
(iii) in the case of Floor Plan Committed Loans, the Type of Motor Vehicle in respect to which such Floor Plan Committed Loan was made.
Subject to Section 10.02.4, the accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent
manifest error of the amount of the Loans made by the Lenders to the Borrowers and the interest and payments thereon. Any failure to
so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrowers hereunder to pay any
amount owing with respect to the Obligations. Subject to Section 10.02.4, in the event of any conflict between the accounts and records
maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records
of the Administrative Agent shall control in the absence of manifest error. Upon the request of any Lender made through the Administrative
Agent, the respective Borrowers under each Credit Facility shall execute and deliver to such Lender (through the Administrative Agent)
(i) a Floor Plan Note, which shall evidence such Lender’s Floor Plan Committed Loans, (ii) a Mortgage Loan Note which shall
evidence such Lender’s Mortgage Loans, and (iii) a Term Loan Note, which shall evidence such Lender’s Term Loans and (iv)
Delayed Draw Notes, which shall evidence such Lender’s Delayed Draw Loans, in each case in addition to such accounts or records.
Each Lender may attach schedules to its Notes and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and
payments with respect thereto.

 

(b)              In
addition to the accounts and records referred to in subsection (a), each Lender and the Administrative Agent shall maintain in accordance
with its usual practice accounts or records evidencing the purchases and sales by such Lender of participations in M&T Advances.
Subject to Section 10.02.4, in the event of any conflict between the accounts and records maintained by the Administrative Agent and
the accounts and records of any Lender in respect of such matters, the accounts and records of the Administrative Agent shall control
in the absence of manifest error.

 

Section 2.09.       Pro
Rata Treatment and Payments; Administrative Agent’s Clawback.

 

2.9.1          Distribution
of Payments to Lenders; Administrative Agent’s Clawback. All payments (including prepayments) to be made by the Borrowers hereunder,
whether on account of principal, interest, fees or otherwise shall be made without condition or deduction for any counterclaim, defense,
recoupment or set-off. Except as otherwise expressly provided to the contrary by the terms of this Agreement, all payments by the Borrower
shall be made in Dollars prior to 2:00 p.m. on the due date thereof to the Administrative Agent for the accounts of the respective Lenders
to which such payment is owed at the Administrative Agent’s offices in Buffalo, New York in Dollars and in immediately available
funds. The Administrative Agent shall promptly distribute to each Lender to which such payment is owed by wire transfer such Lender’s
pro rata share of each of such payments in like funds as received. The Administrative Agent may assume that the Borrowers have
made such payments on the applicable date in accordance herewith and may, in reliance upon such assumption, distribute to the applicable
Lenders the amount due. All payments received by the Administrative Agent after 2:00 p.m. shall be deemed received on the next following
Business Day and any applicable interest or fee shall continue to accrue. If any payment to be made by a Borrower shall come due on a
day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected
in computing interest or fees, as the case may be. In such event, if the Borrowers have not in fact made such payments, then each of
the Lenders severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender, in immediately
available funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the
date of payment to the Administrative Agent, at the greater of the Federal Funds Rate or a rate determined by the Administrative Agent
in accordance with banking industry customs and rules on interbank compensation.

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2.9.2     Funding of
Loans; Administrative Agent’s Clawback. The Lenders agree that the Administrative Agent may assume that each Lender will fund
timely its pro rata portion of each Borrowing requested by the applicable Borrowers in accordance with the terms of this Agreement
and that the Administrative Agent may, in reliance upon such assumption, make available to the applicable Borrowers a corresponding amount.
In such event, if a Lender has not in fact made its share of the applicable borrowing available to the Administrative Agent, then the
applicable Lender and the applicable Borrowers severally agree to pay to the Administrative Agent forthwith on demand such corresponding
amount in immediately available funds with interest thereon, for each day from and including the date such amount is made available to
the applicable Borrowers to but excluding the date of payment to the Administrative Agent, at (a) in the case of a payment to be made
by such Lender, the greater of the Federal Funds Rate or a rate determined by the Administrative Agent in accordance with banking industry
customs and rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by the Administrative
Agent in connection with the foregoing, and (b) in the case of a payment to be made by the applicable Borrowers, the applicable Base
Rate plus the Applicable Rate. If the applicable Borrowers and such Lender shall pay such interest to the Administrative Agent for the
same or an overlapping period, the Administrative Agent shall promptly remit to the applicable Borrowers the amount of such interest
paid by the applicable Borrowers for such period. If such Lender pays its share of the applicable borrowing to the Administrative Agent,
then the amount so paid shall constitute such share included in the subject borrowing. Any payment by the applicable Borrowers shall
be without prejudice to any claim such Borrowers may have against a Lender that shall have failed to make such payment to the Administrative
Agent.

 

2.9.3     Ratable Sharing.
Each Borrowing by the Borrowers shall be made ratably from the applicable Lenders in accordance with their Applicable Percentages.
Any reduction in the Floor Plan Commitments or in the Floor Plan Dollar Cap shall be made ratably among the Lenders in accordance with
their respective Floor Plan Commitment Percentages. Any reduction in the Delayed Draw Facility Commitments or in the undrawn Delayed
Draw Dollar Cap shall be made ratably among the Lenders in accordance with their respective Delayed Draw Facility Commitment Percentages.
Each payment (including each prepayment) by the Borrowers on account of principal of and interest on any Class of Loans shall be shared
pro rata by the Lenders of such Class in accordance with their respective balances of the Loans of such Class.

 

2.9.4     Setoffs, Counterclaims,
Other Payments. If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment of any principal
of or interest on any Class of Loans made by it, or the participations in M&T Advances held by it resulting in such Lender receiving
payment greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall notify
the Administrative Agent of such fact, and purchase (for cash at face value in Dollars) participations in the Loans of such Class and
participations in M&T Advances, as the case may be, of the other Lenders, or make such other adjustments as shall be equitable, so
that the benefit of all such payments with respect to such Class shall be shared by the Lenders of such Class ratably in accordance with
the their pro rata share of the Loans of such Class, provided that:

 

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

 

(b)         the
provisions of this Section shall not be construed to apply to (i) any payment made by the Borrowers pursuant to and in accordance with
the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender) or (ii) any
payment obtained by a Lender as consideration for the assignment of, or sale of a participation in, any of its Loans or participations
in M&T Advances to any assignee or participant, other than to the Borrowers or any Subsidiaries thereof (as to which the provisions
of this Section shall apply).

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

 

Section 2.10.          [Reserved].

 

Section 2.11.          Increase
in Commitments.

 

2.11.1        Request
for Increase. Upon notice to the Administrative Agent (which shall promptly notify the Lenders), the Borrower Representative on behalf
of the Borrowers may from time to time, request an increase in the Commitments of any Class (the “Accordion Provision”)
by an aggregate amount (for all such requests) not exceeding Fifty Million Dollars ($50,000,000.00), which may be in the form of an increase
(each such increase, a “Facility Increase”) in the then existing Floor Plan Facility (each such increase, a “Floor
Plan Increase”), or in any Class of Commitments under the Mortgage Facility, the Term Loan Facility, or the Delayed Draw Facility,
or through the issuance of additional senior secured mortgage term loans of another tranche (collectively, “Additional Mortgage
Loans” and the respective commitments therefor “Additional Mortgage Commitments”) or senior secured term
loans of another tranche (collectively, “Additional Term Loans”, and the respective commitments therefor, “Additional
Term Loan Commitments”; the Additional Term Loans and the Additional Mortgage Loans, collectively, the “Additional
Loans”, and the Additional Term Loan Commitments and the Additional Mortgage Commitments, collectively, the “Additional
Commitments”); provided that (x) any such request for a Facility Increase or Additional Commitments shall be in a minimum
amount of Five Million Dollars ($5,000,000.00) (or such lesser amount as the Incremental Lenders providing such Facility Increase or
Additional Commitments, as applicable, may agree in their sole discretion) and (y) any request for a Delayed Draw Borrowing corresponding
to a Facility Increase applicable to the Delayed Draw Facility shall be in such minimum amount as required under Section 2.04. The Additional
Commitments shall be deemed included in and part of the Commitments.

 

2.11.2        Incremental
Lenders. Additional Loans may be made and Facility Increases and Additional Commitments may be provided, by any existing Lender (but
no existing Lender will have an obligation to make any Facility Increase, Additional Commitment or Additional Loan, nor will the Borrowers
have any obligation to approach any existing Lenders to provide any Facility Increase, Additional Commitment or Additional Loan)
or by any Additional Lender (each such existing Lender or Additional Lender providing such Facility Increase, Additional Loan or Additional
Commitment, in such capacity, an “Incremental Lender”); provided that the Administrative Agent shall have consented
(in each case, not to be unreasonably withheld or delayed) to such Additional Lender’s making such Additional Loans or providing
such Additional Commitments or Facility Increase to the extent such consent, if any, would be required under Section 10.02.2 for an assignment
of Loans or Commitments, as applicable, to such Additional Lender.

 

2.11.3        Effective
Date and Allocations.

 

(a)              With
respect to each Facility Increase, in each case, (a) in accordance with this Section, the Administrative Agent and the Borrowers shall
determine the effective date (the “Increase Effective Date”) and the final allocation of such increase and (b) except
with respect to a Floor Plan Increase, if immediately prior to such Facility Increase outstanding undrawn Commitments exist with respect
to the applicable Class of Commitments subject to increase, any Borrowings of Loans in respect of such Class of Commitments requested
on and after the Increase Effective Date shall be satisfied solely using such existing Commitments and in the manner otherwise set forth
in this Agreement, except to the extent any such requested Borrowing cannot be fully satisfied with such existing Commitments, in which
case such Borrowing shall be satisfied with the increased portion of such Commitments implemented pursuant to the Facility Increase and
in the manner otherwise set forth in this Agreement. The Administrative Agent shall promptly notify (i) the Borrowers, the Incremental
Lenders, and the existing Lenders of the amount and Class of such increase and the Increase Effective Date, and (ii) the Borrowers and
the Incremental Lenders of the final allocation of such increase.

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(b)         On
any Increase Effective Date on which a Floor Plan Increase is effected, subject to the satisfaction of the foregoing terms and conditions
under this Section 2.11, with respect to Floor Plan Commitments of an Incremental Lender, each of the existing Lenders with a Floor Plan
Commitment shall automatically and without further act be deemed to have assigned to such Incremental Lender, and such Incremental Lender
shall automatically and without further act be deemed to have purchased and assumed, (i) a portion of such existing Lender’s participations
hereunder in outstanding M&T Advances so that after giving effect to each such deemed assignment and assumption and participation,
the percentage of the aggregate outstanding participations hereunder in such M&T Advances held by each Lender with a Floor Plan Commitment
(including each such Incremental Lender), as applicable, will equal the percentage of the Floor Plan Commitments of all Lenders, and
(ii) at the principal amount thereof, such interests in the Floor Plan Committed Loans outstanding on such Increase Effective Date as
shall be necessary in order that, after giving effect to all such assignments and assumptions, the Floor Plan Committed Loans will be
held by existing Lenders and Incremental Lenders ratably in accordance with their respective Floor Plan Commitments after giving effect
to such Floor Plan Increase (the Administrative Agent and the Lenders hereby agree that the minimum borrowing, pro rata borrowing and
pro rata payment requirements contained elsewhere in this Agreement shall not apply to the transactions effected pursuant to this paragraph).
Any Floor Plan Increase shall be allocated to increase the New Vehicles Allocation, Used Vehicles Allocation, Auction Vehicles Allocation
and/or Service Loaners Allocation, in such manner and in such amounts as agreed between the Administrative Agent and the Borrower Representative
and specified in the applicable Incremental Amendment (for the avoidance of doubt, the aggregate increase to all Vehicle Allocations
in connection with a Floor Plan Increase shall not exceed the principal amount of the applicable Floor Plan Increase).

 

(c)         Any
Additional Term Loans or Additional Mortgage Loans tranches shall be designated a separate class of Term Loans or Mortgage Loans, as
applicable, for all purposes of this Agreement. On the Increase Effective Date on which any Additional Term Loan Commitments or Additional
Mortgage Commitments are effected, subject to satisfaction of the terms and conditions set forth in this Section 2.11 and in the applicable
Incremental Amendment, each Incremental Lender of such Additional Term Loan Commitments or Additional Mortgage Commitments, as applicable,
shall make a Loan to the applicable Borrowers in an amount equal to its Additional Commitment of such Class, and each such Incremental
Lender shall become a Lender hereunder with respect to its Additional Commitment of such Class and with respect to the corresponding
Additional Loans made pursuant thereto.

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2.11.4        Conditions
to Effectiveness of Increase. As a condition precedent to the effectiveness of any Incremental Amendment, the Borrower Representative
shall deliver to the Administrative Agent a certificate dated as of the Increase Effective Date duly executed by a Responsible Officer
of the Borrower Representative (a) certifying and attaching the resolutions adopted by each applicable Loan Party approving or consenting
to such increase, and (b) certifying that, before and after giving effect to such increase, (i) the representations and warranties of
the Loan Parties contained in Article 3 of this Agreement and in the other Credit Documents to which they are parties are true and correct
in all material respects on and as of the Increase Effective Date (provided that, to the extent that such representations and
warranties specifically refer to an earlier date, they shall be true and correct in all material respects as of such earlier date; provided,
further, that, any representation and warranty that is already qualified as to “materiality,” “Material Adverse
Effect” or similar language shall be true and correct in all respects), (ii) no Default or Event of Default exists or would exist
after giving effect to the Facility Increase or issuance of Additional Loans or Additional Commitments, as applicable, (iii) all financial
covenants under Section 6.15 would be satisfied as of the most recently ended Test Period, after giving pro forma effect to such
Facility Increase, Additional Commitments and/or issuance of Additional Loans, as applicable (excluding any Floor Plan Increase and,
in the case of the Total Leverage Ratio, any Facility Increase of the Mortgage Loans or Additional Mortgage Loans). With respect to any
Additional Loans, all conditions precedent set forth in Section 4.02 hereof shall have been satisfied (except to the extent that the
Additional Lenders providing such Additional Loans agree to provide the applicable Additional Loans notwithstanding the failure of any
such condition precedent (other than the condition precedent set forth under clause (b)(ii) above, the waiver of which shall require
the consent of the Required Lenders (calculated after giving effect to the making of the applicable Additional Loans) to be satisfied).
Any Additional Mortgage Loan or Facility Increase with respect to an existing Mortgage Loan, in each case, shall be secured by Real Property
that satisfies the requirements set forth in Section 5.15.3. The proceeds of any Additional Mortgage Loan or Facility Increase with respect
to an existing Mortgage Loan shall be available to fund Real Estate Costs, in each case, in an aggregate amount of up to eighty- five
percent (85%) of the total Real Estate Costs for each real estate project; provided that the portion of such Additional Mortgage
Loan or Facility Increase, as applicable, that may be used to fund Real Estate Acquisition Costs shall not exceed eighty-five percent
(85%) of the appraised value of such acquired real estate reflected in the applicable Real Estate Appraisal provided under Section 5.15.3.

 

2.11.5        Required
Terms. The terms, provisions and documentation of any Facility Increase or the Additional Loans or Additional Commitments of any
Class, as applicable, and the Loans of any Class provided in connection therewith, shall, except as otherwise set forth in this Section
2.11.5, be as agreed between the Borrowers and the applicable existing Lenders or Additional Lenders providing such Facility Increase,
Additional Commitment or Additional Loan. The maturity date of any increase in the Commitments and Credit Facilities or issuance of any
Additional Loans shall be no earlier than the applicable Original Maturity Date. Any Facility Increase with respect to the Floor Plan
Commitments, Mortgage Facility Commitments, Term Loan Facility Commitments, or Delayed Draw Facility Commitments, shall be on the same
respective terms applicable to the existing Floor Plan Facility, Mortgage Facility, Term Loan Facility, and Delayed Draw Facility, as
applicable (other than with respect to upfront fees, original issue discount or similar fees, it being understood that, if required to
consummate such Facility Increase transaction, the interest rate margins and rate floors may be increased, any call protection provision
may be made more favorable to the applicable existing Lenders and additional upfront or similar fees may be payable to the existing Lenders
or Additional Lenders providing the Facility Increase). With respect to the Additional Loans of any Class (and not in connection with
an increase to a then-existing tranche), the terms (other than pricing, fees, premiums and other economic terms, which shall be agreed
between the Borrowers and the lenders of such Additional Mortgage Loans or Additional Term Loans) shall be consistent with the Mortgage
Facility or the Term Loan Facility, as applicable, except that any such terms may be different than those of the Mortgage Facility or
the Term Loan Facility, as applicable, so long as (w) such terms are not materially more restrictive to the Borrowers
(as determined by the Borrower Representative in good faith), when taken as a whole than those of the Mortgage Facility or the Term Loan
Facility, as applicable, (x) the Lenders under the Mortgage Facility or the Term Loan Facility, as applicable, also receive the benefit
of such more restrictive terms, (y) such provisions apply only after the then-existing Maturity Date under the Mortgage Facility or the
Term Loan Facility, as applicable, or (z) such other terms are otherwise reasonably satisfactory to the Administrative Agent.

 

2.11.6        Incremental
Amendment. Commitments in respect of Facility Increases, Additional Commitments and Additional Loans shall become Commitments (or
in the case of a Facility Increase to be provided by an existing Lender, an increase in such Lender’s applicable Commitment), under
this Agreement pursuant to an amendment (an “Incremental Amendment”) to this Agreement and, as appropriate, the other
Credit Documents, executed by the Borrowers, each Incremental Lender providing such Commitments and the Administrative Agent (each of
which shall be recorded in the Register and shall be subject to the requirements of Section 10.02 of this Agreement). The Incremental
Amendment may, without the consent of any other Loan Party or Lender, effect such amendments to this Agreement and the other Credit Documents
as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent and the Borrower Representative, to effect
the provisions of this Section 2.11. In connection with any Incremental Amendment, the Borrowers shall, if reasonably requested by the
Administrative Agent, deliver customary reaffirmation agreements, such amendments to the Security Documents and/or legal opinions with
respect thereto, in each case, as may be reasonably requested by the Administrative Agent in order to ensure that such Facility Increases,
Additional Commitments and Additional Loans, as applicable, are provided with the benefit of the applicable Credit Documents; provided,
however, that notwithstanding anything in this Agreement or any Security Document to the contrary, an amendment to an existing
mortgage shall only be required if the amounts to be advanced under the Additional Loans would not be secured by such existing mortgage
absent such amendment.

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2.11.7       Pro
Rata Sharing. All Term Loans made pursuant to a Facility Increase shall rank equally ratably in right of payment with the existing
Term Loan Facility and all Mortgage Loans made pursuant to a Facility Increase shall rank equally ratably in right of payment with the
existing Mortgage Loan Facility. All Additional Term Loans effected hereunder may participate (i) on a pro rata basis, less than a pro
rata basis or greater than a pro rata basis in any voluntary prepayments of Term Loans hereunder and (ii) on a pro rata basis or less
than a pro rata basis in any mandatory prepayments of Term Loans hereunder. All Additional Mortgage Loans effected hereunder may participate
(i) on a pro rata basis, less than a pro rata basis or greater than a pro rata basis in any voluntary prepayments of Mortgage Loans hereunder
and (ii) on a pro rata basis or less than a pro rata basis in any mandatory prepayments of Mortgage Loans hereunder. All Facility Increases
of the existing Term Loans or Mortgage Loans, as applicable, shall participate on a pro rata basis with the existing Term Loan Facility
or Mortgage Loan Facility, as applicable, in any voluntary or mandatory prepayments hereunder. The Liens securing the Facility Increases,
Additional Mortgage Loans and Additional Term Loans shall rank pari passu with the Liens securing the existing Credit Facilities
and Loans.

 

2.11.8       Conflicting
Provisions. This Section 2.11 shall supersede any provisions in Sections 2.09.3 or 10.01 to the contrary.

 

Section 2.12.        Increased
Costs.

 

2.12.1       Increased
Costs Generally. If any Change In Law shall:

 

(a)             impose,
modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits
with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement reflected in the LIBOR
Rate);

 

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

 

(c)             impose
on any Lender or the London Interbank Market any other condition, cost or expense affecting this Agreement or any LIBOR Borrowing (that
is not otherwise reimbursed or taken account of under this Agreement) made by such Lender or any participation therein;

 

and the result of any of the foregoing
shall be to increase the cost to such Lender or such other Recipient of making, converting to or continuing or maintaining any Loan (or
of maintaining its obligation to make any such Loan), or to reduce the amount of any sum received or receivable by such Lender or such
other Recipient hereunder (whether of principal, interest or any other amount) then, upon the request of such Lender or such other Recipient,
the Borrower Representative agrees to pay to such Lender or such other Recipient, as the case may be, such additional amount or amounts
as will compensate such Lender or such other Recipient, as the case may be, for such additional costs incurred or reduction suffered.

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2.12.2   Capital Requirements.
If any Lender determines that any Change (that is not otherwise reimbursed or taken account of under this Agreement) in Law affecting
such Lender or any lending office of such Lender or such Lender’s holding company, if any, regarding capital or liquidity requirements
has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding
company, if any, as a consequence of this Agreement, or the Commitments of such Lender or the Loans made by, such Lender, to a level
below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into consideration
such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy), then from
time to time the Borrower Representative agrees to pay to such Lender as the case may be, such additional amount or amounts as will compensate
such Lender or such Lender’s holding company for any such reduction suffered.

 

2.12.3   Certificate for Reimbursement.
A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the
case may be, as specified in this Section 2.12 and delivered to the Borrower Representative shall be conclusive absent manifest error.
The Borrower Representative agrees to pay such Lender, as the case may be, the amount shown as due on any such certificate within ten
(10) Business Days after receipt thereof.

 

2.12.4   Delay in Requests. Failure
or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s
right to demand such compensation, provided that the Borrowers shall not be required to compensate a Lender pursuant to this Section
for any increased costs incurred or reductions suffered more than nine (9) months prior to the date that such Lender notifies
the Borrowers of the Change in Law giving rise to such increased costs or reductions and of such Lender’s intention to claim compensation
therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine (9) month
period referred to above shall be extended to include the period of retroactive effect thereof)

 

2.12.5   Reserves on LIBOR Based
Interest Rates. The applicable Borrowers shall pay to each Lender, as long as such Lender shall be required to maintain reserves
with respect to liabilities or assets which are not taken into account in determining the LIBOR Rate consisting of or including Eurocurrency
funds or deposits (currently known as “Eurocurrency liabilities”), additional interest on the unpaid principal amount of
each Loan bearing interest at any interest rate calculated based on LIBOR equal to the actual costs of such reserves allocated to each
such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive absent manifest error),
which shall be due and payable on each date on which interest is payable on such Loan, provided the Borrower Representative shall have
received at least ten (10) days’ prior notice (with a copy to the Administrative Agent) of such additional interest from such Lender.
If a Lender fails to give notice ten (10) days prior to the relevant date on which such interest payment
is due, such additional interest shall be due and payable ten (10) days from receipt of such notice.

 

Section 2.13.   Taxes.

 

2.13.1   Defined
Terms. For purposes of this Section, the term “applicable Law” includes FATCA.

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

 

2.13.3   Payment of Other Taxes
by the Loan Parties. Without duplication of other amounts payable by the Borrowers under this Section, each Loan Party shall timely
pay to the relevant Governmental Authority in accordance with applicable Laws, or at the option of the Administrative Agent timely reimburse
it for the payment of, any Other Taxes attributable to such Loan Party.

 

2.13.4   Indemnification. Each
applicable Borrower shall indemnify each Recipient, within 10 days after demand therefor, for the full amount of any Indemnified Taxes
(including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) attributable to such Borrower
and payable or paid by such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified
Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment
or liability delivered to the Borrowers by a Recipient (with a copy to the Administrative Agent), or by the Administrative Agent on its
own behalf or on behalf of a Recipient, shall be conclusive absent manifest error.

 

2.13.5   Indemnification by the
Lenders. Each Lender shall severally indemnify the Administrative Agent, within ten (10) days after demand therefor, for (a) any
Indemnified Taxes attributable to such Lender (but only to the extent that any Loan Party has not already indemnified the Administrative
Agent for such Indemnified Taxes and without limiting the obligation of the Loan Parties to do so), (b) any Taxes attributable to such
Lender’s failure to comply with the provisions of Section 10.03 relating to the maintenance of a Participant Register and (c) any
Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any
Credit Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered
to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative
Agent to set off and apply any and all amounts at any time owing to such Lender under any Credit Document or otherwise payable by the
Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this Section 2.13.5.

 

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

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	2.13.7

	Status of Lenders.

 

(a)              Any
Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Credit Document
shall deliver to the Borrowers and the Administrative Agent, at the time or times reasonably requested by the Borrowers or the
Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrowers or the Administrative
Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably
requested by the Borrowers or the Administrative Agent, shall deliver such other documentation prescribed by applicable Law or reasonably
requested by the Borrowers or the Administrative Agent as will enable the Borrowers or the Administrative Agent to determine whether
or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in
the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth
below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such
Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender, it
being understood that providing any information currently required by any U.S. federal income tax withholding form shall not be considered
prejudicial to the position of a Recipient.

 

	 

	(b)

	Without limiting the generality of the foregoing:

 

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

 

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

 

(A)         in
the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to
payments of interest under any Credit Document, executed copies of IRS Form W-8BEN establishing an exemption from, or reduction of, U.S.
federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable
payments under any Credit Document, IRS Form W-8BEN or W-8BEN-E, as applicable, establishing an exemption from, or reduction of, U.S.
federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;

 

	 

	(B)

	executed copies of IRS Form W-8ECI;

 

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

 

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

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(iii)         any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrowers and the Administrative Agent (in such number
of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement
(and from time to time thereafter upon the reasonable request of the Borrowers or the Administrative Agent), executed copies of any other
form prescribed by applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed,
together with such supplementary documentation as may be prescribed by applicable Law to permit the Borrowers or the Administrative Agent
to determine the withholding or deduction required to be made; and

 

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

 

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

 

2.13.8        Status
of Agent. On or before the date the Administrative Agent becomes a party to this Agreement, the Administrative Agent shall provide
to the Borrowers two duly- signed, properly completed copies of the documentation prescribed in clause (i) or (ii) below, as applicable,
(together with all required attachments thereto): (i) IRS Form W-9 or any successor thereto; or (ii) (A) IRS Form W-8ECI or any successor
thereto, and (B) with respect to payments received on account of any Lender, a U.S. branch withholding certificate on IRS Form W-8IMY
or any successor thereto evidencing its agreement with the Borrowers to be treated as a U.S. Person for U.S. federal withholding purposes.
At any time thereafter, the Administrative Agent shall provide updated documentation previously provided (or a successor form thereto)
when any documentation previously delivered has expired or becomes obsolete or invalid or otherwise upon the reasonable request of the
Borrowers.

 

2.13.9        Treatment
of Certain Refunds. If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any
Taxes as to which it has been indemnified pursuant to Section 2.13 of this Agreement (including by the payment of additional amounts
pursuant to Section 2.13), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity
payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including
Taxes) of such indemnified party and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay
to such indemnified party the amount paid over pursuant to this Section 2.13.9 (plus any penalties, interest or other charges imposed
by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental
Authority. Notwithstanding anything to the contrary in this Section 2.13.9, in no event will the indemnified party be required to pay
any amount to an indemnifying party pursuant to this Section 2.13.9 the payment of which would place the indemnified party in a less
favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise
to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amount with respect
to such Tax had never been paid. This Section shall not be construed to require any indemnified party to make available its Tax returns
(or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

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2.13.10  Delay in Notification. The
Borrowers shall not be required to compensate a Lender pursuant to this Section for any Taxes or related costs suffered more than nine
(9) months prior to the date that such Lender notifies the Borrowers of such Taxes or related costs and of such Lender’s intention
to claim compensation therefor (except that, if the Change in Law giving rise to such Taxes or related costs is retroactive, then the
nine (9) month period referred to above shall be extended to include the period of retroactive effect thereof).

 

2.13.11  Survival. Each party’s
obligations under this Section 2.13 shall survive the resignation or replacement of the Administrative Agent or any assignment
of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all
obligations under any Credit Document.

 

Section 2.14.   Mitigation
Obligations; Replacement of Lenders.

 

2.14.1   Designation of a Different
Lending Office. If any Lender requests compensation under Section 2.12, or requires the Borrowers to pay any Indemnified Taxes or
additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section
2.13, then such Lender shall (at the request of the Borrowers) use reasonable efforts to designate a different lending office for funding
or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates,
if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section
2.12 or 2.13, as the case may be, in the future, and (ii) would not subject such Lender to any unreimbursed cost or expense and
would not otherwise be disadvantageous to such Lender. The Borrowers hereby agree to pay all reasonable costs and expenses incurred by
any Lender in connection with any such designation or assignment.

 

2.14.2   Replacement of Lenders.
If any Lender requests compensation under Sections 2.12 or 2.13, or if any of the Borrowers is required to pay any Indemnified Taxes
or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.13 and, in each
case, such Lender has declined or is unable to designate a different lending office in accordance with Section 2.14.1, the Borrowers
may replace such Lender in accordance with Section 10.12 of this Agreement.

 

Section 2.15.   Cash
Collateral.

 

2.15.1   Requirement to Provide
Cash Collateral. At any time that there shall exist a Defaulting Lender and M&T Bank shall be subject to Fronting Exposure, promptly
upon the request of the Administrative Agent or M&T Bank, the applicable Borrower to which such Fronting Exposure relates shall deliver
Cash Collateral to the Administrative Agent in an amount sufficient to cover such Fronting Exposure (after giving effect to Section 2.18.1(d)
and any Cash Collateral provided by the Defaulting Lender).

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2.15.2        Grant
of Security Interest. All Cash Collateral (other than credit support not constituting funds subject to deposit) shall be maintained
in blocked, non-interest bearing deposit accounts maintained at M&T Bank (provided that Cash Collateral provided by a [*****]
Borrower shall not be maintained in the same deposit account as Cash Collateral provided by a Non-[*****] Borrower). Each Borrower, and
to the extent provided by any Lender, such Lender, hereby each grants to (and subjects to the control of) the Administrative Agent, for
the benefit of the Administrative Agent and the Lenders, and agrees to maintain, a first priority security interest in all such cash,
deposit accounts and all balances therein, and all other property so provided as Collateral pursuant hereto, and in all proceeds of the
foregoing, all as security for the Obligations to be applied in accordance with Sections 2.15.2 and 2.15.3.    If
at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative
Agent as herein provided, or that the total amount of such Cash Collateral is less than the applicable Fronting Exposure and other obligations
secured thereby, the applicable Borrowers or the applicable Defaulting Lender will, promptly upon demand by the Administrative Agent,
pay or provide to the Administrative Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency (after giving
effect to any Cash Collateral provided by the Defaulting Lender).

 

2.15.3        Application.
Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under any provisions of this Agreement
shall be held and first applied to the satisfaction of the specific Obligations for which the Cash Collateral was so provided, prior
to any other application of such property as may be otherwise provided for herein.

 

2.15.4        Release.
Cash Collateral (or the appropriate portion thereof) provided to reduce Fronting Exposure or with respect to any other obligations
shall be released promptly following (a) the elimination of the applicable Fronting Exposure or other obligations giving rise thereto
(including by the termination of Defaulting Lender status of the applicable Lender (or, as appropriate, its Eligible Assignee following
compliance with Section 10.02) or (b) the Administrative Agent’s and M&T Bank’s good faith determination that there exists
excess Cash Collateral; provided, however, (x) that Cash Collateral furnished by or on behalf of a Loan Party shall not be released
during the continuance of an Event of Default (and following application as provided in Section 2.15.2 may be otherwise applied in accordance
with Section 8.05), and (y) the Person providing Cash Collateral and M&T Bank as provider of the M&T Advances, as applicable,
may agree that Cash Collateral shall not be released but instead held to support future anticipated Fronting Exposure or other obligations.

 

Section 2.16.          Payments.
If any payment is avoided or set aside under any provision of the Bankruptcy Code, including Sections 547 and 550 thereof, or any other
Debtor Relief Law, the payment shall be considered not to have been made for all purposes of this Agreement and the Credit Parties shall
adjust their respective records to reflect the fact that the avoided payment was not made and has not been credited against the Obligations.

 

Section 2.17.          Advancements.
If any applicable Borrowers or any other applicable Loan Party fails to perform any of their respective agreements or covenants contained
in the Credit Documents or if any applicable Borrowers or any other applicable Loan Party fails to protect or preserve the Collateral
or any other security for the Obligations or the status and priority of the Liens of the Credit Parties in the Collateral or in any other
security for the Obligations, the Administrative Agent for the account of the Lenders may make advances to perform the same on behalf
of the applicable Borrowers or other Loan Party to protect or preserve the Collateral or any other security for the Obligations or the
status and priority of the Liens of the Credit Parties in the Collateral or in any other security for the Obligations, and all sums so
advanced shall immediately upon such advance become secured by the Liens granted in the Credit Documents and any other security for the
Obligations, and shall become part of the principal amount owed to the Lenders with interest to be assessed at the Default Rate. Each
applicable Borrower promises to repay on demand all sums so advanced on such Borrower’s behalf, plus all expenses or costs incurred
by the Administrative Agent, on account of the Lenders, including reasonable legal fees, with interest thereon. The provisions of this
Section shall not be construed to prevent the institution of the rights and remedies of the Administrative Agent upon the occurrence
of an Event of Default. The authorization contained in this Section is not intended to impose any duty or obligation on the Administrative
Agent or any other Credit Party to perform any action or make any advancement on behalf of the Borrowers and is intended to be for the
sole benefit and protection of the Credit Parties.

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Section 2.18.          Defaulting
Lenders.

 

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

 

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

 

(b)              Reallocation
of Payments. Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such
Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article 8 or otherwise) or received by the Administrative
Agent from a Defaulting Lender pursuant to Section 10.07 shall be applied at such time or times as may be determined by the Administrative
Agent as follows: first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; second,
to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to M&T Bank as the provider of the M&T Advances
hereunder; third, if so determined by the Administrative Agent or requested by M&T Bank to Cash Collateralize the future funding
obligations of that Defaulting Lender of any participation in any M&T Advance; fourth, as the Borrowers may request (so long as no
Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion
thereof as required by this Agreement, as determined by the Administrative Agent; fifth, if so determined by the Administrative Agent
and the Borrowers, to be held in a deposit account and released pro rata in order to satisfy such Defaulting Lender’s potential
future funding obligations with respect to Loans under this Agreement; sixth, to the payment of any amounts owing to the Lenders or M&T
Bank as the provider of the M&T Advances as a result of any judgment of a court of competent jurisdiction obtained by any Lender
or M&T Bank as the provider of the M&T Advances against such Defaulting Lender as a result of such Defaulting Lender’s
breach of its obligations under this Agreement; seventh, so long as no Default or Event of Default exists, to the payment of any amounts
owing to the Borrowers as a result of any judgment of a court of competent jurisdiction obtained by the Borrowers against such Defaulting
Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; and eighth, to such Defaulting Lender
or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal
amount of any Loans in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made
at a time when the conditions set forth in Section 4.02 were satisfied or waived, such payment shall be applied solely to pay the Loans
of all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of such Defaulting Lender until
such time as all Loans and funded and unfunded participations in M&T Advances are held by the Lenders pro rata in accordance with
their Applicable Percentages under the applicable Credit Facility without giving effect to Section 2.18.1(d). Any payments, prepayments
or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post
Cash Collateral pursuant to this Section 2.18 shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably
consents hereto.

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	(c)

	Certain Fees.

 

(i)        No
Defaulting Lender shall be entitled to receive a Floor Plan Commitment Fee or a Delayed Draw Facility Unused Commitment Fee for any period
during which that Lender is a Defaulting Lender.

 

(ii)       With
respect to any Floor Plan Commitment Fee or a Delayed Draw Facility Unused Commitment Fee not required to be paid to any Defaulting Lender
pursuant to clause (i) above, the Borrower Representative shall (x) pay to each Non-Defaulting Lender that portion of any such fee otherwise
payable to such Defaulting Lender that has been reallocated to such Non-Defaulting Lender pursuant to clause (d) below, (y) pay to M&T
Bank, as applicable, the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to M&T Bank’s
Fronting Exposure to such Defaulting Lender on account of the M&T Advances, and (z) not be required to pay the remaining amount of
any such fees.

 

(d)               Reallocation
of Participations to Reduce Fronting Exposure. All or any part of such Defaulting Lender’s participation in M&T Advances
shall be reallocated among the Non- Defaulting Lenders in accordance with their respective Floor Plan Commitment Percentage (calculated
without regard to such Defaulting Lender’s Commitments) but only to the extent that such reallocation does not cause the aggregate
Outstanding Amount of the Floor Plan Committed Loan of any Non- Defaulting Lender to exceed such Non-Defaulting Lender’s Floor
Plan Commitment. No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting
Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non- Defaulting Lender as a result of such
Non-Defaulting Lender’s increased exposure following such reallocation.

 

2.18.2   Defaulting Lender Cure.
If the Borrower Representative, the Administrative Agent and M&T Bank as the provider of the M&T Advances each agree in writing
that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective
date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash
Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take
such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations
in M&T Advances to be held pro rata by the Lenders in accordance with their Applicable Percentages under the applicable Credit
Facility (without giving effect to Section 2.18.1(d)), whereupon such Lender will cease to be a Defaulting Lender; provided that
no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrowers while that Lender
was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties,
no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising
from that Lender having been a Defaulting Lender.

 

2.18.3   New M&T Advances.
So long as any Lender (other than M&T Bank or any of its Affiliates) under the Floor Plan Facility is a Defaulting Lender, M&T
Bank shall not be required to fund any M&T Advance, unless M&T Bank is reasonably satisfied that it will have no Fronting Exposure
after giving effect to such M&T Advance (after giving effect to Section 2.18.1(d) and any Cash Collateral provided by the Defaulting
Lender and/or any Loan Party).

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2.18.4   Termination of Commitments
of Defaulting Lender. The Borrowers may terminate the unused amount of the undrawn amount of the Floor Plan Commitment and/or the
Delayed Draw Facility Commitment of any Defaulting Lender upon not less than ten (10) Business Days’ prior notice to the Administrative
Agent (which shall promptly notify the Lenders thereof), and in such event the provisions of Section 2.18.1(b) will apply to all amounts
thereafter paid by the Borrowers for the account of such Defaulting Lender under this Agreement (whether on account of principal, interest,
fees, indemnity or other amounts); provided that such termination shall not be deemed to be a waiver or release of any claim the
Borrowers, the Administrative Agent, M&T Bank as the provider of the M&T Advances, or any Lender may have against such Defaulting
Lender.

 

Section 2.19.   Co-Borrower
Provisions.

 

2.19.1   Borrower Representative.
To facilitate administration of the Loans, the Borrower Representative (a) is designated and appointed by each of the other Borrowers
as its representative and agent on its behalf (the “Borrower Representative”) and (ii) accepts such appointment as
the Borrower Representative, in each case and with full power and authority to issue, execute, deliver and acknowledge as appropriate,
Term/Mortgage Committed Loan Notices, Floor Plan Committed Loan Notices, requests pursuant to a Floor Plan Automated System and other
borrowing requests, interest rate elections, notices of various events and occurrences required by this Agreement, and certificates including
Compliance Certificates, and to give instructions with respect to the disbursement of the proceeds of the Loans, give and receive all
other notices and consents hereunder or under any of the other Credit Documents and take all other actions (including in respect of compliance
with covenants) on behalf of any Borrower or Borrowers under the Credit Documents. The Administrative Agent and each Lender are irrevocably
authorized to regard any notice or other communication pursuant to any Credit Document from the Borrower Representative as a notice or
communication from all Borrowers or, as the context may require, the applicable Borrowers referred to in such notice or other communication.
Each warranty, covenant, agreement and undertaking made on behalf of any Borrower by the Borrower Representative shall be deemed for
all purposes to have been made by such Borrower and shall be binding upon and enforceable against such Borrower to the same extent as
if the same had been made directly by such Borrower. This power-of-attorney is coupled with an interest and cannot be revoked, modified
or amended without the prior written consent of the Required Lenders. Each warranty, covenant, agreement and undertaking made on behalf
of a Borrower by the Borrower Representative shall be deemed for all purposes to have been made by such Borrower and shall be binding
upon and enforceable against such Borrower to the same extent as if the same had been made directly by such Borrower.

 

	 

	2.19.2

	Joint and Several Liability of Co-Borrowers.

 

(a)              Non-[*****]
Floor Plan Borrowers. Each Non-[*****] Floor Plan Borrower shall be jointly and severally liable as a primary obligor, and not
merely as surety, for any and all Floor Plan Committed Loans and related Obligations under and in connection with the Floor Plan Facility
now or hereafter owed to the Administrative Agent, M&T Bank, and the Lenders, in each case, whether voluntary or involuntary and
however arising, whether direct or acquired by any Lender by assignment or succession, whether due or not due, absolute or contingent,
liquidated or unliquidated, determined or undetermined.

 

(b)              [*****]
Borrowers. Each [*****] Floor Plan Borrower shall be jointly and severally liable as a primary obligor, and not merely as surety,
for any and all Floor Plan Committed Loans (other than Floor Plan Committed Loans constituting Non-[*****] Obligations) and related [*****]
Obligations in connection with such Floor Plan Committed Loans now or hereafter owed to the Administrative Agent and the Lenders, in
each case, whether voluntary or involuntary and however arising, whether direct or acquired by any Lender by assignment or succession,
whether due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined.

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(c)              Benefit
to Each Floor Plan Borrower. Each Floor Plan Borrower represents and warrants to and covenants with the Lenders that (i) the Floor
Plan Borrowers are engaged in operations that require financing on a joint basis and, accordingly, each Floor Plan Borrower will materially
benefit, directly or indirectly, from the extension of the Floor Plan Committed Loans by the Lenders; (ii) the Floor Plan Committed Loans
have been offered to the Floor Plan Borrowers on the basis set forth in this Agreement and would not be available to the Floor Plan Borrowers
on an individual basis on the terms and conditions stated herein; (iii) the benefits received by each Floor Plan Borrower are reasonably
equivalent to the obligations undertaken by each Borrower, (iv) the delivery of funds to any Floor Plan Borrower in connection with the
Floor Plan Committed Loans under this Agreement shall constitute valuable consideration and reasonably equivalent value to all Non-[*****]
Floor Plan Borrowers and (v) the delivery of funds to any [*****] Borrower in connection with the Floor Plan Committed Loans under this
Agreement shall constitute valuable consideration and reasonably equivalent value to all [*****] Borrowers.

 

2.19.3        Postponement
of Subrogation. To the fullest extent permitted under applicable Law, until all of the Obligations are paid in full (other than contingent
indemnification obligations), each Borrower waives any right of subrogation, reimbursement, indemnity and recourse to security for any
of the Obligations.

 

2.19.4        Waivers.
To the fullest extent permitted under applicable Law, each Borrower unconditionally waives: (a) any requirement that the Administrative
Agent or the Required Lenders first make demand upon, or seek to enforce or exhaust remedies against any (i) other Borrower or any other
Loan Party; (ii) the Collateral or other property of any Borrower or any other Loan Party; or (iii)  other
Person, before demanding payment from or seeking to enforce the Obligations against such Borrower; (b) any requirement of applicable
Law that might operate to limit any Borrower’s liability under, or the enforcement of, the Obligations; (c) diligence, presentment,
protest, demand for performance, notice of acceptance, notice of nonperformance, notice of intent to accelerate, notice of acceleration,
notice of protest, notice of dishonor, notice of extension, renewal, alteration or amendment, notice of acceptance of the Credit Documents,
notice of default under any of the Credit Documents and all other notices whatsoever, except for notices specifically required pursuant
to other provisions of the Credit Documents; (d) any obligation of the Administrative Agent or any Lender to provide any Borrower any
information, including any information concerning any other Borrower or any other Loan Party or any Collateral, except for information
specifically required to be provided pursuant to other provisions of the Credit Documents; and (e) any other claim or defense that otherwise
would be available based on principles of suretyship or guarantee or otherwise governing secondary obligations.

 

	 

	2.19.5

	        Cross-Guaranty.

 

(a)              Each
Non-[*****] Borrower has entered into the Guaranty Agreement to guarantee to the Credit Parties the payment in full of all of the Obligations
owed by each of the other Borrowers and the due performance by each of the other Borrowers of its respective duties and covenants made
in favor of the Credit Parties in this Agreement and in the other Credit Documents, all on the terms and conditions set forth in the
Guaranty Agreement. Each Non-[*****] Borrower agrees that neither its Guarantee under the Guaranty Agreement nor the Credit Parties’
liens and rights in any of the Collateral shall be impaired or affected by any modification, supplement, extension or amendment of any
contract or agreement to which the parties hereto may hereafter agree, nor by any modification, release or other alteration of any of
the rights of the Credit Parties with respect to any of the Collateral, nor by any delay, extension of time, renewal, compromise or other
indulgence granted by the Administrative Agent or the Lenders with respect to any of the Obligations, nor by any other agreements or
arrangements whatever with the other Borrowers or with any other Person, each Non-[*****] Borrower hereby waiving all notice of any such
delay, extension, release, substitution, renewal, compromise or other indulgence, and hereby consenting to be bound thereby as fully
and effectively as if it had expressly agreed thereto in advance. Except as may be expressly stated in this Agreement to the contrary,
the liability of each Non-[*****] Borrower hereunder is direct and unconditional as to all of the Obligations and may be enforced without
requiring the Credit Parties first to resort to any other right, remedy or security. For the avoidance of doubt no limitation set forth
herein with respect to the [*****] Borrowers shall in any way alter, impair, limit, or discharge any liability or obligation on the part
of any of the Non-[*****] Borrowers.

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(b)              Each
[*****] Borrower has entered into the [*****] Guaranty Agreement to guarantee to the Credit Parties the payment in full of all of the [*****]
Obligations owed by each of the other [*****] Borrowers and the due performance by each of the other [*****] Borrowers of its respective
duties and covenants made in favor of the Credit Parties in this Agreement and in the other Credit Documents, all on the terms and conditions
set forth in the [*****] Guaranty Agreement. Each [*****] Borrower agrees that neither its Guarantee under the [*****] Guaranty Agreement
nor the Credit Parties’ liens and rights in any of the Collateral shall be impaired or affected by any modification, supplement,
extension or amendment of any contract or agreement to which the parties hereto may hereafter agree, nor by any modification, release
or other alteration of any of the rights of the Credit Parties with respect to any of the Collateral, nor by any delay, extension of
time, renewal, compromise or other indulgence granted by the Administrative Agent or the Lenders with respect to any of the [*****] Obligations,
nor by any other agreements or arrangements whatever with the other [*****] Borrowers or with any other Borrowers or with any other Person,
each [*****] Borrower hereby waiving all notice of any such delay, extension, release, substitution, renewal, compromise or other indulgence,
and hereby consenting to be bound thereby as fully and effectively as if it had expressly agreed thereto in advance. Except as may be
expressly stated in this Agreement to the contrary, the liability of each [*****] Borrower hereunder is direct and unconditional as to
all of the [*****] Obligations and may be enforced without requiring the Credit Parties first to resort to any other right, remedy or
security.

 

2.19.6        Obligations
Among Loan Parties. WITHOUT LIMITATION TO EACH BORROWER’S NON-JOINT AND SEVERAL OBLIGATIONS UNDER THE CREDIT DOCUMENTS, EACH
FLOOR PLAN BORROWER SHALL BE JOINTLY AND SEVERALLY LIABLE TO THE ADMINISTRATIVE AGENT AND THE OTHER CREDIT PARTIES, IN EACH CASE, SOLELY
TO THE EXTENT EXPRESSLY SET FORTH IN SECTION 2.19.2 AND, IN EACH SUCH CASE, WITHOUT REGARD TO ANY ALLOCATION OF LOSSES AND LIABILITIES
PURSUANT TO THIS SUBSECTION OR OTHERWISE AND, IN CONNECTION THEREWITH, EACH FLOOR PLAN BORROWER HAS EXPRESSLY ASSUMED THE RISK THAT SUCH
FLOOR PLAN BORROWER’S ACTUAL LIABILITY MAY EXCEED SUCH FLOOR PLAN BORROWER’S PRO RATA SHARE AND THAT OVERPAYMENTS
MAY NOT ACTUALLY BE REIMBURSED OR INDEMNIFIED. Subject to the foregoing, the Borrowers agree that the provisions of this subsection are
intended to provide for an allocation of the Obligations among Floor Plan Borrowers. Accordingly, (a) as among the [*****] Floor Plan
Borrowers, if any [*****] Floor Plan Borrower (the “Overpaying [*****] Floor Plan Borrower”) pays (whether directly
or by application of Collateral), or is otherwise held liable for, Floor Plan Committed Loans (other than Floor Plan Committed Loans
constituting Non-[*****] Obligations) and related [*****] Obligations in connection with such Floor Plan Committed Loans, in each case,
in excess of the Borrower Pro Rata Share for the Overpaying [*****] Floor Plan Borrower, the other [*****] Floor Plan Borrowers will
pay the amount of such excess to the Overpaying [*****] Floor Plan Borrower and will indemnify the Overpaying [*****] Floor Plan Borrower
for, from and against any claims, damages, loss or liability arising from or related to such overpayment and (b) as among the Non- [*****]
Floor Plan Borrowers, if any Non-[*****] Floor Plan Borrower (the “Overpaying Non-[*****] Floor Plan Borrower”)
pays (whether directly or by application of Collateral), or is otherwise held liable for, Floor Plan Committed Loans and related Obligations
in connection with Floor Plan Committed Loans, in each case, in excess of the Borrower Pro Rata Share for the Overpaying Non-[*****]
Floor Plan Borrower, the other Non-[*****] Floor Plan Borrowers will pay the amount of such excess to the Overpaying Non-[*****] Floor
Plan Borrower and will indemnify the Overpaying Non-[*****] Floor Plan Borrower for, from and against any claims, damages, loss or liability
arising from or related to such overpayment. The value to each Floor Plan Borrower of the rights and claims against the other applicable
Floor Plan Borrowers provided above under this Section 2.19.6 is intended, to the extent permitted under applicable Law, to prevent any
Floor Plan Borrower from being rendered “insolvent” solely by virtue of the joint and several liability it may be subject
to under Section 2.19.2. The rights and obligations among Borrowers pursuant to this subsection shall survive the payment and performance
of the Obligations.

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2.19.7   Obligations of Borrower
Representative. Notwithstanding anything else provided herein, all Obligations due under Sections 2.03.4, 2.06, 2.12 (other than
Section 2.12.5), 2.20, 4.01.2, 4.01.3, 4.04.2, 4.04.3, and 10.08 of this Agreement, as well as any other provision of the Credit Documents
requiring payment of any Obligations that are not attributable solely to the [*****] Borrowers or the Floor Plan Committed Loans borrowed
by the [*****] Borrowers, shall be deemed the obligation of the Borrower Representative and shall not constitute a [*****] Obligation.
For the avoidance of doubt, any such amounts owed by the Borrower Representative contemplated in this Section 2.19.7 shall
constitute a Non-[*****] Obligation under this Agreement. The signature of Automile Holdings or of any other undersigned Borrower (or
any Borrower which joins into this Agreement pursuant to a Joinder Agreement) which is duly appointed and acting in the capacity as Borrower
Representative from time to time pursuant this Agreement shall be sufficient to bind, and shall be enforceable against, such Borrower
in its capacity as Borrower Representative in addition to its capacity as Borrower.

 

Section 2.20.   Swap Obligations;
Keepwell. Notwithstanding anything to the contrary contained in this Agreement or any of the other Credit Documents, the Swap Obligations
of any Loan Party that is not an Eligible Contract Participant shall not include any Excluded Swap Liabilities. Each Qualified ECP Guarantor
hereby absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time
by each other Loan Party in respect of the Swap Obligations; provided, however, that (i) notwithstanding the foregoing,
to the extent [*****] Parent, any [*****] Borrower or any other Loan Party that is prohibited under any Franchise Agreement, Framework
Agreement or similar agreement with [*****] (giving effect to any applicable waivers and consents) from providing credit support for the
Obligations of a Person that is not a [*****] Borrower, in each case, otherwise constitutes a Qualified ECP Guarantor, then such Qualified
ECP Guarantor shall not be required under this Section 2.20 to provide funds or any other support to any Loan Party that is not a [*****]
Borrower and (ii) each Qualified ECP Guarantor shall only be liable under this Section 2.20 for the maximum amount of such liability
that can be hereby incurred without rendering its obligations under this Section 2.20, or otherwise under the Credit Documents, voidable
under applicable Law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of each
Loan Party, to the extent that it is an Eligible Contract Participant, under this Section 2.20 shall remain in full force and effect
until the termination of all of the Commitments and payment in full of all Obligations (other than contingent indemnification obligations).
Each Loan Party , to the extent that such Loan Party is an Eligible Contract Participant, intends that this Section 2.20 constitute,
and this Section 2.20 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other
Loan Party for all purposes of Section 1a(18)(A)(v)(II) of the CEA.

 

Section
2.21.     Acknowledgment and Consent to Bail-In of EEA Financial Institutions. Notwithstanding
anything to the contrary in any Credit Document or in any other agreement, arrangement or understanding among any such parties, each
party hereto acknowledges that any liability of any EEA Financial Institution arising under any Credit Document, to the extent such liability
is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges
and agrees to be bound by:

 

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

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	(b)

	the effects of any Bail-in Action on any such
liability, including, if applicable:

 

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

 

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

 

(iii)      the
variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution
Authority.

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES

 

Each of the Borrowers makes the following
representations and warranties to the Credit Parties as of the Closing Date and, to the extent required under Sections 4.04 or 4.02,
as of the date of each Borrowing:

 

Section 3.01.   Existence, Qualification
and Power. Each Loan Party and each Subsidiary thereof (a) is duly organized or formed, validly existing and, as applicable, in good
standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite
governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and carry on its business and (ii) execute,
deliver and perform its obligations under the Credit Documents to which it is a party, and (c) is duly qualified and is licensed and,
as applicable, in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct
of its business requires such qualification or license; except in each case referred to in clause (b)(i) or (c), to the extent that failure
to do so could not reasonably be expected to have a Material Adverse Effect.

 

Section 3.02.   Subsidiaries; Addresses;
Equity Interests. As of the Closing Date, the authorized Capital Stock and the issued and outstanding Capital Stock of the respective
Loan Parties consists of those shares of common stock or other interests described on Schedule 3.02 attached hereto. As of the
Closing Date, GPB Prime has no Subsidiaries other than those specifically disclosed in Part (a) of Schedule 3.02, and all of the
outstanding Equity Interests in such Subsidiaries have been validly issued, are fully paid and nonassessable and are owned by a Loan
Party in the percentages specified on Part (a) of Schedule 3.02 free and clear of all Liens (except for Permitted Encumbrances).
As of the Closing Date, the addresses set forth in Schedule 3.02 are each Loan Party’s place of business and each Loan Party
is formed or incorporated only in the state shown for it on Schedule 3.02 hereto.

 

Section 3.03.   Authorization; No
Contravention. The execution, delivery and performance by each Loan Party of each Credit Document to which such Person is party,
have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms
of any of such Person’s Organization Documents; (b) conflict with or result in any breach or contravention of, or the creation
of any Lien under, or require any payment to be made under (i) any Contractual Obligation to which such Person is a party or affecting
such Person or the properties of such Person or any of its Subsidiaries, or (ii) any order, injunction, writ or decree of any Governmental
Authority or any arbitral award to which such Person or its property is subject; or (c) violate any Law; except, in the case of clause
(b)(i) or (c), to the extent such contravention, conflict or violation would not reasonably be expected to have Material Adverse Effect.

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Section 3.04.   Governmental Authorization;
Other Consents. No registration with, or consent or approval of, or other action by, any federal, state or other Governmental Authority
is or will be required in connection with the execution, delivery and performance of this Agreement or any other Credit Document, the
execution and delivery of the Notes or repayment of the Borrowings hereunder.

 

Section 3.05.   Binding Effect.
This Agreement and each of the Credit Documents have been duly executed and delivered by each Loan Party which is a party thereto and
constitute legal, valid and binding obligations of each Loan Party party thereto enforceable in accordance with their respective terms,
subject, as to the enforcement of remedies, to applicable bankruptcy, reorganization, insolvency, moratorium and similar Laws affecting
creditors’ rights generally and general principles of equity.

 

Section 3.06.   Litigation.
There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Borrowers after due and diligent investigation,
threatened in writing, at law, in equity, in arbitration or before any Governmental Authority, by or against any Loan Party or any of
its Subsidiaries or against any of their properties or revenues that, except as specifically disclosed in Schedule 3.06, either
individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. As of the Closing Date, (a) there are
no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Borrowers after due and diligent investigation,
threatened in writing, at law, in equity, in arbitration or before any Governmental Authority, by or against any Loan Party or any of
its Subsidiaries or against any of their properties or revenues that purport to affect or pertain to this Agreement or any other Credit
Document, or any of the transactions contemplated hereby and (b) no Loan Party or Subsidiary is in violation of any order, writ, injunction
or decree of any Governmental Authority, the violation of which either individually or in the aggregate could reasonably be expected
to have a Material Adverse Effect.

 

Section 3.07.   No Material Adverse
Effect; Books and Records; Financial Projections.

 

3.7.1     [Reserved].

 

3.7.2     [Reserved].

 

3.7.3     No
Material Adverse Effect. Since December 31, 2016, there has been no event or circumstance, either individually or in the aggregate,
that has had or would reasonably be expected to have a Material Adverse Effect.

 

3.7.4     Books
and Records. The books of account and other financial records of the Borrowers and their Subsidiaries as in effect on the Closing
Date are correct and complete in all material respects, represent actual, bona fide transactions and have been maintained in accordance
with sound business and accounting practices in all material respects.

 

3.7.5     [Reserved].

 

3.7.6     Financial
Projections. On or prior to the Original Closing Date, the Borrowers have delivered to the Credit Parties financial projections of
the Borrowers and their Subsidiaries for the period commencing January 1, 2016 and ending December 31, 2021. Such projections were prepared
in good faith on the basis of assumptions believed by management of the Borrower Representative to be reasonable at the time of preparation
of such financial projections (it being understood that any such projections are not to be viewed as facts, are subject to significant
uncertainties and contingencies, many of which are beyond the control of the Loan Parties and that no assurance can be given that any
particular projections will be realized, that actual results may differ and that such differences may be material).

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Section 3.08.          Margin
Regulations; Investment Company Act. No Borrower and no Subsidiary of a Borrower engages or intends to engage principally, or as
one of its important activities, in the business of incurring Indebtedness, or extending credit to others, for the purpose of purchasing
or carrying “margin stock” (within the meaning of Regulation U issued by the Federal Reserve Board). No part of the proceeds
of any Loan has been, or will be, used for any purpose that violates Regulation U issued by the Federal Reserve Board. No Loan Party
is required to be registered as an “investment company” under the Investment Company Act of 1940.

 

Section 3.09.          Full
Disclosure. Neither this Agreement nor any Credit Document, nor any certificate, written statement, agreement or other document furnished
to the Credit Parties by the Loan Parties, contains any misstatement of a material fact or omits to state a material fact necessary in
order to make the statements contained herein and therein, taken as a whole, in light of the circumstances under which they were made,
not materially misleading (after giving effect to all modifications and supplements to such written information and written data, in
each case, furnished after the date on which such document or other written information was originally delivered and prior to the Closing
Date); it being understood that for purposes of this Section 3.09, such documents and other written information shall not include any
projected financial statements, other projections, pro forma financial information, financial estimates, forecasts and forward-looking
information or information of a general economic or general industry nature.

 

Section 3.10.          Taxes.
The Borrowers and their Subsidiaries have filed all material Federal, state and other Tax returns required to be filed, and have
paid, or have made adequate provision for payment of, all material Federal, state and other Taxes levied or imposed upon them or their
properties, income or assets that are otherwise due and payable, except those which are being contested in good faith by appropriate
actions diligently taken and for which adequate reserves or other appropriate provisions have been provided in accordance with GAAP.
There is no proposed tax assessment against Parent Holdings Guarantor or any of its Subsidiaries that could reasonably be expected to
have a Material Adverse Effect.

 

Section 3.11.          Consents
and Approvals. No consent, approval, exemption, order or authorization of, or a registration or filing with any Governmental Authority
or any other Person is required by any Law or any agreement (other than the Credit Documents) in connection with the execution, delivery
and carrying out of this Agreement and the Credit Documents to which any Loan Party is a party, in each case, except those (a) consents,
approvals, exemptions, orders, authorizations, registrations and filings that have been duly obtained, taken, given or made (except to
the extent expressly not required to be obtained, taken, given or made pursuant to the terms of the Credit Documents) or (b) consents,
approvals, exemptions, orders, authorizations, registrations or filings, the failure of which to obtain or make would not reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

Section 3.12.          [Reserved].

 

Section 3.13.          Compliance
with Laws. Each of the Loan Parties and their respective Subsidiaries are in compliance in all material respects with the requirements
of all Laws and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (a)
such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted
or (b) the failure to comply therewith, either individually or in the aggregate, could not reasonably be expected to have a Material
Adverse Effect.

 

Section 3.14.          ERISA
Compliance.

 

3.14.1        Plans
and Contributions. Each Plan is in compliance with the applicable provisions of ERISA, the Code and other Federal or state laws,
except as would not reasonably be expected to result in a Material Adverse Effect. Each Pension Plan that is intended to be a qualified
plan under Section 401(a) of the Code has received a favorable determination letter from the Internal Revenue Service to the effect that
the form of such Plan is qualified under Section 40l(a) of the Code and the trust related thereto has been determined by the Internal
Revenue Service to be exempt from federal income tax under Section 50l(a) of the Code, or an application for such a letter is currently
being processed by the Internal Revenue Service or, in the case of a Pension Plan that is maintained pursuant to the adoption of a master
or prototype or volume submitter document, the sponsor of such master or prototype or volume submitter document has obtained from the
Internal Revenue Service a favorable opinion letter stating that the form of such master or prototype or volume submitter document is
acceptable for the establishment of a tax-qualified plan under Section 40l(a) of the Code, in each case, except as would not reasonably
be expected to result in a Material Adverse Effect. To the best knowledge of the Borrowers, there has been no occurrence that would prevent
or cause the loss of any applicable tax-qualified status set forth in the immediately preceding sentence, except as would not reasonably
be expected to result in a Material Adverse Effect.

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3.14.2       Pending
Claims. There are no pending or, to the best knowledge of the Borrowers, threatened in writing claims, actions or lawsuits, or action
by any Governmental Authority, with respect to any Plan that could reasonably be expected to have a Material Adverse Effect. There has
been no Prohibited Transaction or violation of the fiduciary responsibility rules with respect to any Plan that has resulted or could
reasonably be expected to result in a Material Adverse Effect.

 

3.14.3       ERISA
Events. Except as would not reasonably be expected to result in a Material Adverse Effect, no ERISA Event has occurred. Except as
would not reasonably be expected to result in a Material Adverse Effect, the Loan Parties are not aware of any fact, event or circumstance
that could reasonably be expected to constitute or result in an ERISA Event. Except as would not reasonably be expected to result in
a Material Adverse Effect, (a) each Borrower and each ERISA Affiliate has met all applicable requirements under the Pension Funding Rules
in respect of each Pension Plan, and no waiver of the minimum funding standards under the Pension Funding Rules has been applied for
or obtained; (b) as of the most recent valuation date for any Pension Plan, the funding target attainment percentage (as defined in Section
430(d)(2) of the Code) is 60% or higher and neither the Loan Parties nor any ERISA Affiliate knows of any facts or circumstances that
could reasonably be expected to cause the funding target attainment percentage for any such plan to drop below 60% as of the most recent
valuation date; (c) neither the Loan Parties nor any ERISA Affiliate has incurred any liability to the PBGC other than for the payment
of premiums, and there are no premium payments which have become due that are unpaid; (d) neither the Loan Parties nor any ERISA Affiliate
has engaged in a transaction that could be subject to Section 4069 or Section 4212(c) of ERISA; and (e) no Pension Plan has been terminated
by the plan administrator thereof nor by the PBGC, and no event or circumstance has occurred or exists that could reasonably be expected
to cause the PBGC to institute proceedings under Title IV of ERISA to terminate any Pension Plan.

 

3.14.4       No
Other ERISA Obligations. Except as would not reasonably be expected to result in a Material Adverse Effect, none of the Loan Parties
nor any ERISA Affiliate maintains or contributes to, or has any unsatisfied obligation to contribute to, or liability under, any active
or terminated Pension Plan other than (a) on the Closing Date, those listed on Schedule 3.14 hereto and (b) after the Closing
Date, Pension Plans not otherwise prohibited by this Agreement.

 

Section 3.15.        Ownership
of Real Property; Liens. Each of the Borrowers and each Subsidiary has good record and marketable title in fee simple to, or valid
leasehold interests in, all real property necessary or used in the ordinary conduct of its business, subject in each case, to Permitted
Encumbrances. The real property of the Borrowers and their Subsidiaries is subject to no Liens other than Permitted Encumbrances.

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Section 3.16.        Location
of Vehicles and Books and Records. As of the Closing Date, the locations (and addresses) set forth in Schedule 3.16 are all
the locations at which each of the Loan Parties and its Subsidiaries keep the Motor Vehicles held as Inventory, except for such Motor
Vehicles that are, in the ordinary course of business, (a) in transit between locations, (b) in transit for “dealer trades”,
(c) being test driven by potential customers, (d) being used as a Demonstrator or Service Loaner on the terms and conditions set forth
herein or (e) being repaired at a repair shop, and, in each such instance described in clauses (a) through (e) the respective Loan Parties
maintain records with the location of the Motor Vehicle and, where applicable, the name of, and such other relevant information as is
standard in the industry with respect to, the dealer involved in such a dealer trade (or the customer test driving such Motor Vehicle).

 

Section 3.17.        Insurance.
The properties of the Borrowers and their Subsidiaries are insured with financially sound and reputable insurance companies that are
not Affiliates of any Loan Party, in each case, in such amounts, with such deductibles and covering such risks as are customarily carried
by companies engaged in the same or similar businesses as the Borrowers and their Subsidiaries (after giving effect to any insurance
with a Captive Insurance Subsidiary or any self-insurance, in each case, to the extent reasonable, customary and prudent for Persons
engaged in the same or similar businesses as the Borrowers and their Subsidiaries).

 

Section 3.18.        Labor
and Employment Matters. Each Loan Party and each Subsidiary of a Loan Party is in compliance with all employee benefit plans, employment
agreements, collective bargaining agreements and labor contracts and all related Laws applicable thereto, in each case, except as would
not reasonably be expected to result in a Material Adverse Effect. There are no outstanding grievances, arbitration awards or appeals
relating to any of the foregoing plans, agreements or contracts, or, to the knowledge of the Borrowers, threatened strikes, picketing,
hand-billing or other work stoppages or slowdowns at facilities of any Loan Party or any Subsidiary of a Loan Party which could reasonably
be expected to have a Material Adverse Effect. All payments due or to become due from any Loan Party or the Subsidiary of the Loan Party
on account of obligations in respect of employee health and welfare insurance which could reasonably be expected to have a Material Adverse
Effect if not paid have been paid.

 

Section 3.19.        Taxpayer
Identification Numbers. As of the Closing Date, the taxpayer identification numbers for each of the Loan Parties are set forth on
Schedule 3.19 attached hereto.

 

Section 3.20.        Solvency.
After giving pro forma effect to the Closing Date Transactions, (i) the Loan Parties, taken as a whole, are Solvent and (ii)
GPB Prime, on an individual basis, is Solvent.

 

Section 3.21.        Material
Contracts. Other than with respect to the Franchise Agreements and Framework Agreements set forth on Schedule 3.24, as of the Closing
Date, there are no Material Contracts relating to the business operations of GPB Prime and its Subsidiaries.

 

Section 3.22.        Patents,
Trademarks, Copyrights, Licenses, Etc. The Loan Parties and their Subsidiaries own, or possess the right to use, all of the trademarks,
service marks, trade names, copyrights, patents, patent rights, franchises, licenses and other intellectual property rights that are
reasonably necessary for the operation of their respective businesses, without conflict with the rights of any other Person, except to
the extent such conflict would not reasonably be expected to result in a Material Adverse Effect. No slogan or other advertising device,
product, process, method, substance, part or other material now employed, or now contemplated to be employed, by any Borrowers or any
Subsidiary infringes upon any rights held by any other Person in a manner that would reasonably be expected to result in a Material Adverse
Effect.

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Section 3.23.        Liens.
Except as otherwise contemplated hereby or under any other Credit Document, and subject to limitations set forth herein and in the Security
Documents (including, without limitation, the definition of “Excluded Property” and Sections 4.01, 4.04, and 5.15 hereof),
the Security Documents, together with such filings and other actions required to be taken hereby or by the applicable Security Documents,
are effective to create legal, valid, perfected and enforceable first priority Liens (subject to Permitted Encumbrances) in the Collateral
(excluding, for the avoidance of doubt, any Excluded Property) described therein in favor of the Administrative Agent for the benefit
of the Secured Parties and the Liens created thereunder are entitled to all applicable rights and benefits provided by applicable Law.
Notwithstanding anything herein or in any other Credit Document to the contrary, no Loan Party makes any representation or warranty as
to (A) the effects of perfection or non-perfection, the priority or the enforceability of any pledge of or security interest to the extent
such perfection, priority or enforceability is not required pursuant to the terms hereof or of any Security Document or (B) on the Closing
Date and until required pursuant to Sections 5.15 or 5.19, the pledge or creation of any security interest, or the effects of perfection
or non-perfection, the priority or enforceability of any pledge or security interest to the extent not required on the Closing Date pursuant
to Section 4.04, or in the case of Mortgages, until such Mortgages are recorded in the applicable land records.

 

Section 3.24.        Franchise
Agreements and Framework Agreements. As of the Closing Date, none of the Loan Parties nor any Subsidiary of a Loan Party is a party
to any dealer Franchise Agreements, or any Framework Agreements, other than those listed in Schedule 3.24, which schedule shows
the Manufacturer and the Loan Party which is a party to each such agreement, the date such agreement was entered into and the expiration
date (if any) of each such agreement. As of the Closing Date, each of the Franchise Agreements and Framework Agreements is currently
in full force and effect and no Loan Party has received any notice of termination with respect to any such agreements.

 

Section 3.25.        Environmental
Compliance. The Borrowers and each of their Subsidiaries have complied in all respects with all Environmental Laws except where the
failure to comply could not be expected to have a Material Adverse Effect. Neither the Borrowers nor any of their Subsidiaries have received
written notice of any failure to so comply except where the failure to comply could not be expected to have a Material Adverse Effect.
Neither the Borrowers nor any of their Subsidiaries manages any Hazardous Materials in a manner that violates any regulations promulgated
pursuant to Environmental Laws except for any such violation that could not be expected to have a Material Adverse Effect.

 

Section 3.26.        [Reserved].

 

Section 3.27.        Floor
Plan Borrower Engaged in Business of Selling Motor Vehicles. None of the Floor Plan Borrowers is engaged in any business other than
the business of (a) selling Motor Vehicles and component parts of Motor Vehicles and servicing Motor Vehicles, (b) acquiring, owning,
operating and selling Franchises and (c) activities related, complementary or incidental to, or a reasonable extension, development or
expansion of, any of the foregoing.

 

Section 3.28.        Anti-Corruption;
Anti-Terrorism. No Loan Party is a Sanctioned Person. No Loan Party (a) has any of its assets in a Sanctioned Country or in the possession,
custody or control of a Sanctioned Person in either case in violation of any Anti-Terrorism Law; (b) does business in or with, or derives
any of its income from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism
Law; or (c) engages in any dealings or transactions prohibited by any Anti-Terrorism Law. No Borrower, nor any of their respective Subsidiaries,
nor, to the knowledge of any Borrower and their respective Subsidiaries, any director, officer or employee thereof, is a Sanctioned Person.
Each Borrower and its Subsidiaries have conducted their businesses in material compliance with the United States Foreign Corrupt Practices
Act of 1977.

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Section 3.29.   EEA
Financial Institutions. No Loan Party is an EEA Financial Institution.

 

ARTICLE IV

 

CONDITIONS PRECEDENT

 

Section 4.01.   Original Closing
Date Conditions and Conditions to Initial Borrowing. The effectiveness of this Agreement and the obligation of each Lender to make
its initial Loans, including the making of Floor Plan Committed Loans, Term Loans and Mortgage Loans at Closing, are subject to the satisfaction
(or waiver) on or before the Original Closing Date of the following conditions precedent:

 

4.1.1     Closing
Submissions. The Administrative Agent’s receipt of the following, each of which shall be originals or electronic copies (followed
promptly by originals), unless otherwise specified, each properly executed by a Responsible Officer of the applicable signing Loan Party,
each dated either the Closing Date (or, in the case of certificates of governmental officials, a recent date before the Closing Date)
and each in form and substance reasonably satisfactory to the Administrative Agent and the Lenders:

 

(a)       executed
counterparts of (i) this Agreement sufficient in number for distribution to the Administrative Agent, each Lender and the Borrower Representative,
(ii) the Security Agreement, the Pledge Agreement, the Escrow Agreement, the Guaranty Agreement and the [*****] Guaranty Agreement, in
each case under this clause (ii), sufficient in number for distribution to the Administrative Agent, each Lender and the Borrower Representative,
(iii) the Mortgages and related documents in recordable form encumbering the Real Estate Collateral in sufficient number for distribution
to the Administrative Agent and to the title insurance agent (with original executed Mortgages and related documents to be delivered
to the title insurance agent) issuing the title insurance policies required at Closing pursuant to this Agreement.

 

(b)       (i)
Floor Plan Notes executed by the Floor Plan Borrowers in favor of each Lender requesting a Floor Plan Note, (ii) Mortgage Loan Notes
executed by the applicable Borrowers in favor of each Lender requesting a Mortgage Loan Note, (iii) Term Loan Notes executed by the applicable
Borrowers in favor of each Lender requesting a Term Loan Note; and (iii) Delayed Draw Notes executed by the applicable Borrowers in favor
of each Lender requesting a Delayed Draw Note;

 

(c)       (i)
a Floor Plan Committed Loan Notice requesting the Floor Plan Loans to be funded on the Closing Date, (ii) a Mortgage/Term Loan Notice
requesting the Closing Date Mortgage Loans, (iii) a Mortgage/Term Loan Notice requesting the Closing Date Term Loans, and (iv) a Mortgage/Term
Loan Notice requesting the Delayed Draw Term Loans requested to be funded on the Original Closing Date, in each case executed by the
applicable Borrowers requesting such respective Loans;

 

(d)       such
certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party
as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer thereof
authorized to act as a Responsible Officer in connection with this Agreement and the other Credit Documents to which such Loan Party
is a party;

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(e)          such
documents and certifications as the Administrative Agent may reasonably require to evidence that each Loan Party is duly organized or
formed, and that each Loan Party is validly existing, in good standing and qualified to engage in business in the respective jurisdictions
specified in Schedule 4.01.1(d), which includes each jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification, except to the extent that failure to do so could not reasonably be expected to have
a Material Adverse Effect,

 

(f)           an
opinion of each of Ropes & Gray LLP and Nutter McClennan & Fish, LLP, counsel to the Loan Parties, addressed to the Administrative
Agent and each Lender dated as of the Original Closing Date in approved forms;

 

(g)          opinions
of local counsel to AMR RE Holdings in Maine, Massachusetts, New Hampshire and Vermont, addressed to the Administrative Agent and each
Lender, with respect to the perfection and enforceability of the applicable Mortgages in such state and such other customary related
opinions that the Administrative Agent may reasonably request;

 

(h)          a
certificate of a Responsible Officer of the Borrower Representative either (i) attaching copies of all consents, licenses and approvals
required in connection with the execution, delivery and performance by each Loan Party and the validity against such Loan Party of the
Credit Documents to which it is a party, and such consents, licenses and approvals shall be in full force and effect, or (ii) stating
that no such consents, licenses or approvals are so required;

 

(i)           a
certificate signed by a Responsible Officer of the Borrower Representative certifying (i) that the conditions specified in Sections 4.02.1
and 4.02.2 have been satisfied, (ii) that there has been no event or circumstance since the date of the audited financial statements
for Automile Holdings and its Affiliates and Saco Auto Holdings, LLC and its Affiliates for the Fiscal Year ending December 31, 2015
that has had or could be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect and (iii) as
to the absence of any action, suit, investigation or proceeding pending or, to the knowledge of the Borrowers, threatened in writing
in any court or before any arbitrator or Governmental Authority that could reasonably be expected to have a Material Adverse Effect;

 

(j)           a
certificate signed by the chief financial officer, treasurer or chief accounting officer of the Borrower Representative, certifying that
(i) the Loan Parties, taken as a whole, are Solvent and (ii) Parent Holdings Guarantor, on an individual basis, is Solvent, in each case
of the foregoing clauses (i) and (ii), on a pro forma basis after giving effect to the Original Closing Date Transactions;

 

(k)          a
duly completed Compliance Certificate signed by a Responsible Officer of the Borrower Representative, prepared in respect of the Test
Period ended on December 31, 2016; provided that for purposes of such Compliance Certificate, all financial covenants under Section
6.15 shall be calculated based on the combined financial results reflected (i) with respect to the Total Leverage Ratio under Section
6.15, in the respective internally prepared balance sheets of Automile Holdings and its Affiliates, Saco Auto Holdings, LLC and its Affiliate
and each of the Acquired Dealers, in each case, as of the last day of the Fiscal Quarter ending on December 31, 2016 and (ii) with respect
to the Total Leverage Ratio, Fixed Charge Coverage Ratio and Fixed Charge Coverage Ratio (All Cash Dividends) under Section 6.15, in
the respective internally prepared statements of income or operations and cash flows of Automile Holdings and its Affiliates, Saco Auto
Holdings, LLC and its Affiliate and each of the Acquired Dealers, in each case, for the Fiscal Quarter ending on December 31, 2016 multiplied
by four (4), in each case, after giving pro forma effect to the Original Closing Date Transactions and any related adjustments
permitted under this Agreement;

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(l)        a
duly completed certification of a Responsible Officer of the Borrower Representative, dated as of the Closing Date, certifying as to
(i) New Vehicles, Used Vehicles, Service Loaner Vehicles, and Auction Vehicles supporting the request for the initial borrowing under
the Floor Plan Facility as of February 22, 2017, (ii) identifying the Motor Vehicle inventories of each of the Floor Plan Borrowers as
of February 22, 2017 and (iii) to the extent not included in the certification under the foregoing clause (ii), identifying the inventories
of the Acquired Dealers that were acquired in connection with the Original Closing Date Transaction;

 

(m)      a
certificate of a Responsible Officer of each applicable Floor Plan Borrower attaching a copy of each form of Franchise Agreement or Framework
Agreement for each Manufacturer with which such Floor Plan Borrower has a Franchise, except and to the extent such form of Franchise
Agreement or Framework Agreement contains confidentiality restrictions which specifically prohibits such disclosure;

 

(n)       a
certificate of a Responsible Officer of the Borrower Representative certifying that no consents or waivers are required pursuant to any
Franchise Agreement or Framework Agreement that have not been obtained that would enable the applicable Manufacturer to terminate such
Franchise Agreement or Framework Agreement, as applicable (other than pursuant to any Franchise Agreement or Framework Agreement of Saco
Auto Holdings – FM, LLC in connection with its Mazda Franchise) and, to the extent obtained, attaching copies of any such duly
executed consents and waivers;

 

(o)      evidence
that all insurance required to be maintained pursuant to the Credit Documents has been obtained and is in effect;

 

(p)       unaudited
(i) consolidated balance sheets for Automile Holdings and its Affiliates as of September 30, 2016, and the related consolidated statements
of income or operations for the Fiscal Quarter ended on such date and (ii) Saco Auto Holdings, LLC and its Affiliate as of September
30, 2016, and the related consolidated statements of income or operations for the Fiscal Quarter ended on such date, in each case, prepared
by management of the applicable Loan Parties and its Affiliates;

 

(q)       forecasts
(including assumptions) prepared by the management of the Loan Parties of consolidated balance sheets, income statements and cash flow
statements for Parent Holdings Guarantor and its Subsidiaries for each of the first five Fiscal Years ending after the Original Closing
Date;

 

(r)       delivery
to the Administrative Agent of all certificates evidencing any pledged Equity Interests (if any) pursuant to the Pledge Agreement, accompanied
in each case by duly executed stock or unit powers (or other appropriate transfer documents) in blank affixed thereto;

 

(s)       delivery
to the Escrow Agent of all Certificates evidencing the Restricted Equity Interests;

 

(t)        UCC-1
financing statements for filing in all places required by applicable Law to perfect the Liens of the Administrative Agent for the benefit
of the Secured Parties under the Security Documents as a perfected Lien as to items of Collateral in which a security interest may be
perfected by the filing of a UCC-1 financing statement;

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(u)       [reserved];

 

(v)       customary
evidence that the Existing Credit Facilities have been, or concurrently with the Closing Date are being, terminated, and that all loans
and obligations thereunder have been paid in full or are being paid in full with funds advanced under the initial Borrowing, and any
and all Liens thereunder shall have been terminated prior to the Closing Date or shall terminate substantially concurrently therewith;

 

(w)      UCC
search results with respect to the Loan Parties showing only Liens acceptable to the Administrative Agent (or receipt of signed lien
releases, termination statements, payoff letters and other documents as the Administrative Agent deems appropriate, evidencing the termination
of or reasonably satisfactory arrangements for the termination of, any other Liens of any secured party in any of the assets of the Loan
Parties);

 

(x)       a
certificate signed by a Responsible Officer of the Borrower Representative certifying as to the identity of all Restricted Subsidiaries
(and that such Subsidiaries meet the requirements to be Restricted Subsidiaries), Unrestricted Subsidiaries (and that such Subsidiaries
meet the requirements to be Unrestricted Subsidiaries) and Excluded Subsidiaries, in each case, determined as of the Closing Date on
a pro forma basis after giving effect to the Original Closing Date Transactions;

 

(y)       with
respect to the Real Property listed on Schedule 4.01.1(x), (i) the documents and instruments required pursuant to Section 5.15.3
and (ii) completion and satisfactory review of Real Estate Appraisals provided pursuant to Section 5.15.3 on all such Real Estate Collateral
evidencing a minimum aggregate appraised fair market value of not less than $197,000,000 and evidencing a loan to value ratio of not
less than 85% with respect to the Closing Date Mortgage Loans;

 

(z)       all
documentation and other information required by bank regulatory authorities under applicable “know your customer” and anti-money
laundering rules and regulations, and Anti-Terrorism Laws, including the USA Patriot Act, as reasonably requested by Administrative Agent
and by any of the Lenders; and

 

(aa)     a
completed and executed Collateral Information Certificate by Parent Holdings Guarantor for itself and for each Loan Party.

 

4.1.2     Fees.
Any fees required to be paid on or before the Closing Date to the Administrative Agent or the Arranger shall have been paid by, or on
behalf of, the Borrower Representative.

 

4.1.3     Credit
Party Expenses. The Borrower Representative shall have paid, or caused to be paid, all Credit Party Expenses (including, in the case
of attorneys’ fees, directly to counsel to the Administrative Agent, if requested by the Administrative Agent), to the extent invoiced
at least one (1) Business Day prior to the Original Closing Date.

 

Without limiting the generality of the provisions of
Section 9.02.4 of this Agreement, for purposes of determining compliance with the conditions specified in this Section 4.01.1, each Lender
that has signed this Agreement shall be deemed to have consented to, approved, accepted and to be satisfied with, each document or other
matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent
shall have received notice from such Lender prior to the Original Closing Date specifying its objections thereto.

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Section
4.02.      Conditions to Borrowings except Floor Plan Borrowings under Drafts. The obligation of each
Lender to honor any request for a Borrowing (other than a Floor Plan Committed Loan Notice requesting only a conversion of Loans of one
Type to the other Type or a continuation of LIBOR Rate Loans, a Term/Mortgage Committed Loan Notice requesting only a conversion of Loans
of one Type to the other Type or a continuation of LIBOR Rate Loans or a request for Borrowing under a Draft) is subject to the satisfaction
of the following conditions precedent:

 

4.2.1
      Representations and Warranties. The representations and warranties of the Loan Parties contained
in Article 3 of this Agreement or in any other Credit Document shall be true and correct in all material respects on and as of the date
of any such Borrowing, except to the extent that such representations and warranties specifically refer to an earlier date, in which
case they shall be true and correct in all material respects as of such earlier date, and except that for purposes of this Section 4.02.1,
the representations and warranties contained in Section 3.07.1 and 3.07.2 shall be deemed to refer to the most recent statements furnished
pursuant to Sections 5.08.1 and 5.08.2, respectively.

 

4.2.2
       Absence of Defaults and Events of Default. With respect to (a) any request for Term Loans or Mortgage
Loans, no continuing Default or Event of Default shall exist, or would result from, such Borrowing or from application of the proceeds
thereof and (b) any request for Floor Plan Committed Loans, (i) no continuing Event of Default under Sections 7.01.1, 7.01.4(a), (b),
and (c) (in each case under Section 7.01.4, solely to the extent the repayment, repurchase, defeasance or redemption of such Indebtedness
has been demanded by the holders thereof), 7.01.5, 7.01.6, 7.01.7, 7.01.8, 7.01.9, 7.01.11, 7.01.12, 7.01.13 or 7.01.14 shall exist,
or would result from, such Borrowing or from application of the proceeds thereof and (ii) after giving effect to such Borrowing and the
application of proceeds thereof, no other Event of Default shall be occurring and continuing for more than 60 consecutive calendar days
(measured as to each Event of Default individually).

 

4.2.3
      Floor Plan Loan Notice. With respect to Floor Plan Committed Borrowings (other than any such Floor
Plan Borrowings pursuant to a Floor Plan Automated System), the Administrative Agent and, if applicable, M&T Bank, shall have received
a Floor Plan Committed Loan Notice in originals or electronic copy.

 

4.2.4
      Floor Plan Committed Borrowings/Vehicles from Another Dealer. With respect to any Floor Plan Committed
Borrowing relating to any New Vehicles, Used Vehicles, Service Loaner Vehicles or Auction Vehicles which are obtained by a Floor Plan
Borrower from another dealer (including pursuant to a swap or Acquisition), a copy of the Manufacturer invoice (or substitute reasonably
acceptable to the Administrative Agent) and bill of sale duly executed by the parties to the transaction or other documentation, in each
case, reasonably acceptable to the Administrative Agent evidencing the acquisition cost of such Motor Vehicles to such Floor Plan Borrower
or, in the case of a Motor Vehicle swap with another Franchise or in the case of an Acquisition, appropriate evidence of acquisition
cost.

 

4.2.5
      Delayed Draw Loans. With respect to Delayed Draw Loans, (a) all requirements set forth in Section
2.04 hereof (including, but not limited to, each applicable requirement set forth in the Delayed Draw Disbursement Procedures) to the
extent applicable to the relevant Delayed Draw Borrowing shall have been satisfied and evidence thereof provided to the Administrative
Agent, (b) the Administrative Agent and, if applicable, M&T Bank shall have received a Term/Mortgage Committed Loan Notice to the
extent required under Section 2.04.2 in original or electronic copy, (c) the Administrative Agent shall have received Delayed Draw Notes
executed by the applicable Borrowers in favor of each applicable Lender requesting a Delayed Draw Note in originals or electronic copy
(followed promptly by originals) and (d) to the extent that such Delayed Draw Loans are Delayed Draw Mortgage Loans, the Administrative
Agent shall have received all documents in originals or electronic copy (followed promptly by originals) and other items, in each case,
required under Section 5.15.3 with respect to any additional Real Property which shall become Real Estate Collateral.

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Each request
for a Borrowing of the Loans (other than a Floor Plan Committed Loan Notice requesting only a conversion of Loans of one Type to the
other Type or a continuation of LIBOR Rate Loans, a Term/Mortgage Committed Loan Notice requesting only a conversion of Loans of one
Type to the other Type or a continuation of LIBOR Rate Loans or a request for Borrowing under a Draft) shall be deemed automatically
to be a representation and warranty of the Borrowers that the conditions specified in this Section 4.02 applicable to such Borrowing
have been satisfied on and as of the date of the request.

 

Section
4.03.      Conditions to Floor Plan Borrowings under Drafts. The obligation of each Lender to honor any
request for a Floor Plan Committed Borrowing under a Draft is subject solely to satisfaction of the conditions precedent set forth in
the applicable Drafting Agreement (or such conditions precedent shall have been waived)

 

Section
4.04.      Conditions to Closing under this Agreement. The effectiveness of this Agreement, including
the amendment and restatement of the Existing Credit Agreement, are subject to the satisfaction (or waiver) on or before the Closing
Date of the following conditions precedent:

 

4.4.1
      Closing Submissions. The Administrative Agent’s receipt of the following, each of which shall
be originals or electronic copies (followed promptly by originals), unless otherwise specified, each properly executed by a Responsible
Officer of the applicable signing Loan Party (which Responsible Officer will be the President of each Loan Party other than GPB Prime),
each dated either the Closing Date (or, in the case of certificates of governmental officials, a recent date before the Closing Date)
and each in form and substance reasonably satisfactory to the Administrative Agent and the Required Lenders:

 

(a)      executed
counterparts of (i) this Agreement sufficient in number for distribution to the Administrative Agent, each Lender and the Borrower Representative,
(ii) counterparts and amendments to the Security Agreement, the Pledge Agreement, and the Guaranty Agreement, in each case under this
clause (ii), sufficient in number for distribution to the Administrative Agent, each Lender and the Borrower Representative; and (iii)
Management Services Subordination Agreements executed by GPB Prime, the Administrative Agent, and the Borrowers sufficient in number
for distribution to the Administrative Agent and the Borrower Representative;

 

(b)      a
copy of the Purchase Agreement, including all amendments thereto, and all related documents, evidencing closing thereunder contemporaneously
herewith, including evidence that all conditions precedent to closing thereunder (including receipt of all consents and approvals by
Manufacturers and Governmental Authorities) have been satisfied (unless otherwise waived by the Administrative Agent), together with
a certificate of the President of the Borrower Representative that such copies of documents are true, accurate, and complete in all material
respects and that the acquisition transaction contemplated by the Purchase Agreement has closed contemporaneously with the Closing hereunder
in accordance with the terms of the Purchase Agreement;

 

(c)      such
certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party
as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer thereof
authorized to act as a Responsible Officer in connection with this Agreement and the other Credit Documents to which such Loan Party
is a party, together with copies of all Organizational Documents of each Loan Party (or a certification that no changes have occurred
to the Organizational Documents delivered as a condition precedent to the Existing Credit Agreement);

    -108-

     

    

(d)      such
documents and certifications as the Administrative Agent may reasonably require to evidence that each Loan Party is duly organized or
formed, and that each Loan Party is validly existing, in good standing and qualified to engage in business in the jurisdiction of its
formation and in the applicable jurisdiction or jurisdictions where it owns or operates a dealership or where it owns Real Estate Collateral,
which respective jurisdictions are listed on Schedule 4.01.1(d);

 

(e)      an
opinion of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., counsel to the Loan Parties, addressed to the Administrative Agent and
each Lender in an approved form;

 

(f)      a
certificate of the President of the Borrower Representative either (i) attaching copies of all consents, licenses and approvals required
in connection with the execution, delivery and performance by each Loan Party and the validity against such Loan Party of the Credit
Documents to which it is a party, and such consents, licenses and approvals shall be in full force and effect, or (ii) stating that no
such consents, licenses or approvals are so required;

 

(g)     
a certificate signed by the President of the Borrower Representative certifying (i) that the conditions specified in Sections 4.04.1
have been satisfied, (ii) no Default or Event of Default exists, (iii) that there has been no event or circumstance since December 31,
2016 that has had or would be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect, and (iv)
as to the absence of any action, suit, investigation or proceeding pending or, to the knowledge of the Loan Parties, threatened in writing
in any court or before any arbitrator or Governmental Authority that could reasonably be expected to have a Material Adverse Effect;

 

(h)     
a certificate signed by the president, chief financial officer, treasurer or chief accounting officer of the Borrower Representative,
certifying that (i) the Loan Parties, taken as a whole, are Solvent and (ii) GPB Prime, on an individual basis, is Solvent, in each case
of the foregoing clauses (i) and (ii), on a pro forma basis after giving effect to the Closing Date Transactions;

 

(i)     
a duly completed Compliance Certificate signed by the President of the Borrower Representative, including, for the purposes of the Compliance
Certificate submitted for purposes of this Section 4.04.1(i), (i) a calculation of the Total Leverage Ratio as set forth in Section 6.15.1
of this Agreement which includes a calculation of Consolidated EBITDA based upon annualized year-to-date numbers through the most recently
ended fiscal month prior to the Closing Date and (ii) calculations of the Fixed Charge Coverage Ratio and Fixed Charge Coverage Ratio
(All Cash Dividends) as set forth in Sections 6.15.2 and 6.15.3 (respectively) of this Agreement, based upon the actual results for the
year-to-date period ending on the last day of the most recently ended fiscal month prior to the Closing Date, and in each case, after
giving pro forma effect to the Closing Date Transactions, and any related adjustments permitted under this Agreement;

 

(j)      a
certificate of the President of the Borrower Representative certifying that all consents and/or waivers required pursuant to the Franchise
Agreements and Framework Agreements in connection with giving full effect to the Purchase Transactions have been obtained, together with
the following with respect to each such agreement: (i) an executed amended sales and service agreement or (ii) other written communication
from the respective Manufacturer confirming its approval of the change in the majority shareholder that is acceptable to the Administrative
Agent;

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(k)     
financial statements as of the last day of the most recently ended fiscal month prior to the Closing Date for the Loan Parties and their
Affiliates;

 

(l) 
      delivery to the Administrative Agent of all original certificates evidencing Equity Interests in AMR RE Holdings
and Parent Holdings Guarantor pledged by GPB Prime pursuant to the Pledge Agreement, giving effect to the Closing Date Transactions,
accompanied in each case by duly executed stock or unit powers (or other appropriate transfer documents) in blank affixed thereto;

 

(m)     UCC-1
all asset financing statement against GPB Prime as Debtor for filing in the jurisdiction of organization of GPB Prime;

 

(n)     
UCC search results from the UCC financing statement records of the respective jurisdiction of formation with respect to GPB Prime and
the other Loan Parties (if available for the respective jurisdiction, such search reports limited to updates in the case of the Loan
Parties from reports delivered to the Administrative Agent on or prior to the Original Closing Date) showing only Liens acceptable to
the Administrative Agent (or receipt of signed lien releases, termination statements, payoff letters and other documents as the Administrative
Agent deems appropriate, evidencing the termination of or reasonably satisfactory arrangements for the termination of, any other Liens
of any secured party in any of the assets of the GPB Prime);

 

 (o)
      Receipt and satisfactory review of the Management Services Agreements and subordination agreements (including
the Management Services Subordination Agreements) to be in effect after Closing;

 

(p)     
all documentation and other information required by bank regulatory authorities under applicable “know your customer” and
anti-money laundering rules and regulations, and Anti-Terrorism Laws, including the USA Patriot Act, as reasonably requested by Administrative
Agent and by any of the Lenders; and

 

(q)
      a completed and executed Collateral Information Certificate by GPB Prime for itself.

 

4.4.2
      Fees. Any fees required to be paid on or before the Closing Date to the Administrative Agent or the Arranger
shall have been paid by, or on behalf of, the Borrower Representative.

 

4.4.3
      Credit Party Expenses. The Borrower Representative shall have paid, or caused to be paid, all Credit
Party Expenses (including, in the case of attorneys’ fees, directly to counsel to the Administrative Agent, if requested by the
Administrative Agent), to the extent invoiced at least one (1) Business Day prior to the Closing Date.

 

Without
limiting the generality of the provisions of Section 9.02.4 of this Agreement, for purposes of determining compliance with the conditions
specified in this Section 4.04.1, each Lender that has signed this Agreement shall be deemed to have consented to, approved, accepted
and to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory
to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying
its objections thereto. The Administrative Agent and the Lenders acknowledge and agree that the conditions precedent contained in this
Section 4.01 were satisfied prior to, on, or about the Closing Date or within a reasonable time thereafter, unless the same were waived
or made the subject of a post closing undertaking or agreement pursuant to Section 5.19 (including Schedule 5.19) of the Existing Credit
Agreement, and any remaining items from such Schedule 5.19 shall be listed on Schedule 5.19 hereto.

    -110-

     

    

ARTICLE
V 

 

AFFIRMATIVE
COVENANTS

 

Each Loan
Party agrees that until the payment and satisfaction in full of all Obligations (other than contingent indemnification obligations),
it will comply with and cause the other Loan Parties to comply with the covenants set forth in this Article 5.

 

Section
5.01.      Payment of Obligations. GPB Prime shall pay and discharge and cause each of its Subsidiaries to
pay and discharge, when due, (a) all Federal, state income or property Taxes and all other Taxes imposed upon GPB Prime or such Subsidiaries,
as the case may be, and (b) all lawful claims for labor, materials and supplies, in the case of each of clauses (a) and (b), except to
the extent (i) the failure to pay or discharge such Taxes or claims would not reasonably be expected to have a Material Adverse Effect
or (ii) GPB Prime or such Subsidiary, as the case may be, is contesting such Taxes or claims in good faith and by appropriate actions
diligently taken and GPB Prime or such Subsidiary has set aside such reserves or other appropriate provisions therefor as may be required
by GAAP.

 

Section
5.02.      Insurance. The Borrowers and each of their Subsidiaries that is a Loan Party shall obtain and maintain
and shall cause their respective Subsidiaries to obtain and maintain such insurance coverage as is reasonable, customary and prudent
for Persons engaged in the same or similar businesses as the Borrowers and their Subsidiaries (giving effect to any insurance with a
Captive Insurance Subsidiary or any self-insurance, in each case, to the extent reasonable, customary and prudent for Persons engaged
in the same or similar businesses as the Borrowers and their Subsidiaries). Without limitation to the foregoing, the Borrowers and the
other Loan Parties that are Subsidiaries shall each maintain fire and extended coverage casualty insurance covering the Collateral and
their respective assets with insurance companies and in amounts, in each case, that are reasonable, customary and prudent for Persons
engaged in the same or similar businesses as the Borrowers and their Subsidiaries and sufficient to prevent any co-insurance liability
(which amount shall be the full insurable value of the assets and properties insured unless the Administrative Agent in writing agrees
to a lesser amount) (giving effect to any insurance with a Captive Insurance Subsidiary or any self-insurance, in each case, to the extent
reasonable, customary and prudent for Persons engaged in the same or similar businesses as the Borrowers and their Subsidiaries), naming
the Administrative Agent, for the benefit of the Secured Parties, as an additional insured thereunder as its interests may appear (or
in the case of each casualty insurance policy, containing a lender loss payable clause or endorsement and mortgagee clause or endorsement
(as applicable) that names the Administrative Agent, for the benefit of the Secured Parties, as the lender loss payee and mortgagee (as
applicable) thereunder). Such Loan Parties shall submit to the Administrative Agent copies of the casualty insurance policies and paid
receipts evidencing payment of the premiums to the extent due and payable on the same. The applicable Borrowers shall use commercially
reasonable efforts to cause such casualty insurance policies to be endorsed so as to make them non-cancellable unless thirty (30) days’
prior notice of cancellation is provided to the Administrative Agent. Upon the formation of a Captive Insurance Subsidiary, and from
time to time upon the Administrative Agent’s reasonable request (unless included in the financial statements provided under Section
5.08.1 and 5.08.2), the Borrower Representative shall provide the Administrative Agent with all information and documents relating to
the formation and existence of such Captive Insurance Subsidiary, the capitalization of such Captive Insurance Subsidiary and compliance
by the Captive Insurance Subsidiary with applicable insurance regulations, in each case, to the extent reasonably requested by the Administrative
Agent.

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Section
5.03.      [Reserved].

 

Section
5.04.      Notice of Litigation and Proceedings. GPB Prime and each other Loan Party shall give prompt notice
to the Administrative Agent of any action, suit, citation, violation, direction, notice or proceeding before any court or governmental
department, commission, board, bureau, agency or instrumentality, domestic or foreign, affecting such Loan Party, or the assets or properties
thereof, of which it obtains knowledge, which could reasonably be expected to have a Material Adverse Effect.

 

Section
5.05.      Notice of Change of Business Location or of Jurisdiction of Organization; Notice of Name Change. The
Borrower Representative shall notify the Administrative Agent (a) within fifteen (15) days (or such
later date agreed to by the Administrative Agent) after any change in the location of any Loan Party’s chief executive office or
principal place of business, any Loan Party’s legal name, or of the jurisdiction in which any Loan Party is organized, (b) within
five (5) Business Days (or such later date agreed to by the Administrative Agent) after establishing any new place of business or (c)
not later than five (5) Business Days (or such later date agreed to by the Administrative Agent) prior to moving any material portion
of the Collateral to a new location not previously identified to the Administrative Agent (except for Collateral which (i) is out for
repair, (ii) is in transit in the ordinary course of business, (iii) is temporarily in the possession of any Manufacturer (to the extent
consistent with industry practices), (iv) is in the possession of (or in transit to) any Credit Party or any of its respective agents,
representatives or designees, (v) is at (or in transit to) a location required by Law or any Governmental Authority (provided
that to the extent not prohibited by Law, the Borrower Representative shall, within five (5) Business Days after any Collateral is moved
to such location in the circumstances described in this clause (v), to notify Administrative Agent of such location), (vi) is in the
possession of an employee in the ordinary course of business, (vii) constitutes a Demonstrator or a Service Loaner Vehicle, (viii) is
located at (x) a location previously identified to the Administrative Agent and that is owned by a Loan Party or (y) a third party leased
location in respect of which the applicable Loan Party shall have complied with Section 5.06 or (ix) is not otherwise subject to
an exception under the foregoing clauses (i) through (viii) and the Fair Market Value of such Collateral under this clause (ix) does
not exceed $1,000,000 in the aggregate at any time (each location subject to any of the foregoing exceptions (i) through (ix), in each
case, to the extent applicable with respect to the applicable item of Collateral, a “Permitted Collateral Location”).

 

Section
5.06.      Landlord Waivers. Each Loan Party will use commercially reasonable efforts to obtain and deliver
to the Administrative Agent a customary landlord or bailee access agreement with respect to each location (other than any Permitted Collateral
Location) not owned by a Loan Party where Collateral is located (in each case, within thirty (30) Business Days (or such later date agreed
to by the Administrative Agent) of Collateral becoming located at such location), in form and substance reasonably acceptable to the
Administrative Agent, pursuant to which the owner of such location shall (I) subordinate on customary terms any rights which it may have,
or thereafter may obtain, in any of the Collateral located at such location to the rights and Liens of the Credit Parties and (II) allow
the Administrative Agent reasonable access to the Collateral in order to remove the Collateral from such location during the occurrence
and continuance of an Event of Default; provided that commercially reasonably efforts under this sentence shall in no event require
payment of any consent fees or other amounts to such landlords or bailees, as applicable, or any adverse lease amendments.

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Section
5.07.      Notice of Events Affecting Collateral. Each Borrower and each of the other Loan Parties shall promptly
report to the Administrative Agent all matters affecting the enforceability or collectability of any of the Collateral, in each case,
except as would not reasonably be expected to have a Material Adverse Effect.

 

Section
5.08.      Reporting Requirements. The Borrower Representative, on behalf of the Loan Parties, shall submit
the following items to the Administrative Agent (for further distribution by the Administrative Agent to the Lenders):

 

5.8.1
      Monthly Internally-Prepared Financial Statements. Within thirty (30)
calendar days (or, solely in the case of the consolidated statements of cash flows of GPB Prime and its Subsidiaries for each of the
first twelve (12) fiscal months ending after the Closing Date, forty five (45) calendar days) after the end of each fiscal month (commencing
with the first fiscal month ended after the Closing Date), the Borrower Representative on behalf of all Loan Parties shall submit to
the Administrative Agent an internally prepared consolidated and consolidating balance sheet of GPB Prime and its Subsidiaries as of
the end of such fiscal month, together with a consolidated and consolidating statement of income, a consolidated statement of cash flows
and a consolidated statement of retained earnings (provided that delivery of a consolidated statement of retained earnings shall
be required solely for the last fiscal month in each Fiscal Quarter) of GPB Prime and its Subsidiaries for such fiscal month and, commencing
with the fiscal month ending February 28, 2018, stating in comparative form the respective consolidated figures for the corresponding
fiscal month of the previous Fiscal Year, all prepared in accordance with GAAP and certified by a Responsible Officer of GPB Prime (subject
to year-end adjustments and the absence of footnotes).

 

5.8.2
      Annual Financial Statements. (a) Within one hundred twenty (120) calendar
days after the end of the First 2017 Audit Period (as defined below), the Borrower Representative on behalf of all Loan Parties shall
submit to the Administrative Agent a consolidated balance sheet of Parent Holdings Guarantor and its Subsidiaries, as of the end of the
First 2017 Audit Period, together with a consolidated statement of income, statement of cash flows and statement of retained earnings,
in each case, of Parent Holdings Guarantor and its Subsidiaries, for the First 2017 Audit Period, all prepared in accordance with GAAP
and accompanied by an audit opinion thereon issued by O’Connor & Drew P.C. or another independent regionally or nationally
recognized certified public accounting firm selected by Parent Holdings Guarantor and reasonably acceptable to the Administrative Agent
(which shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as
to the scope of the audit). As used in this section, “First 2017 Audit Period” shall mean the period from January 1, 2017
through the Closing Date or the nearest month-end thereto.

 

(b)     
Within one hundred twenty (120) calendar days after the end of the Second 2017 Audit Period (as defined below), the Borrower Representative
on behalf of all Loan Parties shall submit to the Administrative Agent a consolidated balance sheet of GPB Prime and its Subsidiaries,
as of the end of the Second 2017 Audit Period, together with a consolidated statement of income, statement of cash flows and statement
of retained earnings, in each case, of GPB Prime and its Subsidiaries for the Second 2017 Audit Period, all prepared in accordance with
GAAP and accompanied by an audit opinion thereon issued by Crowe Horwath LLP or another independent regionally or nationally recognized
certified public accounting firm selected by GPB Prime and reasonably acceptable to the Administrative Agent (which shall not be subject
to any “going concern” or like qualification or exception or any qualification or exception as to the scope of the audit).
As used in this section, “Second 2017 Audit Period” shall mean the period from and after the First 2017 Audit Period through
and including December 31, 2017.

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(c)     
Within one hundred twenty (120) calendar days after the end of each Fiscal Year (commencing with the Fiscal Year ending December 31,
2018), the Borrower Representative on behalf of all Loan Parties shall submit to the Administrative Agent a consolidated balance sheet
of GPB Prime and its Subsidiaries as of the end of such Fiscal Year, together with a consolidated statement of income, statement of cash
flows and statement of retained earnings, in each case, of GPB Prime and its Subsidiaries for such Fiscal Year and, (commencing with
the Fiscal Year ending December 31, 2019) stating in comparative form the respective consolidated figures for the previous Fiscal Year,
all prepared in accordance with GAAP and accompanied by an audit opinion thereon issued by Crowe Horwath LLP or another independent regionally
or nationally recognized certified public accounting firm selected by GPB Prime and reasonably acceptable to the Administrative Agent
(which shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as
to the scope of the audit).

 

(d)     
In addition, concurrently with delivery of the financial statements referenced above under subsections “(a) – “(c)”
of this Section 5.08.2, the Borrower Representative on behalf of all Loan Parties shall submit to the Administrative Agent (commencing
with the Fiscal Year ending December 31, 2017) an internally prepared consolidating balance sheet of GPB Prime and its Subsidiaries as
of the end of such Fiscal Year, together with a consolidating statement of income, statement of cash flows and statement of retained
earnings, in each case, of GPB Prime and its Subsidiaries for such Fiscal Year, and (i) (commencing with the Fiscal Year ending December
31, 2019) stating in comparative form the respective consolidating figures for the previous Fiscal Year, and (ii) all prepared in accordance
with GAAP, reconciled with the respective audited financial statement for the same Fiscal Year, and certified by a Responsible Officer
of GPB Prime.

 

5.8.3
      Management Letters. Promptly upon receipt thereof, the Borrower Representative on behalf of all Loan
Parties shall submit to the Administrative Agent copies of any reports submitted to any Loan Party or any Subsidiary by independent certified
public accountants in connection with the examination of the financial statements of GPB Prime and its Subsidiaries made by such accountants.

 

5.8.4
      Compliance Certificate. The Borrower Representative shall submit a Compliance Certificate to the Administrative
Agent (commencing with the first Fiscal Quarter ending after the Closing Date) within thirty (30) calendar days after the end of each
Fiscal Quarter for the first three (3) Fiscal Quarters of each Fiscal Year (or within 45 calendar days after the first Fiscal Quarter
ending after the Closing Date, if it is not the last Fiscal Quarter of the Fiscal Year) and within one hundred twenty (120) calendar
days after the end of the last Fiscal Quarter of each Fiscal Year, in each case, attaching calculations of all applicable financial covenants
under Section 6.15 for the Test Period ending as of such Fiscal Quarter; provided that the December 31, 2017 Compliance Certificate
will be based upon a combination of the First 2017 Audit Period and Second 2017 Audit Period with any non-audit adjustments satisfactory
to the Administrative Agent.

 

5.8.5
      Reports to Other Creditors. Promptly after the furnishing thereof, the Borrower Representative on behalf
of all Loan Parties shall submit to the Administrative Agent copies of any material statement or report or notices of default furnished
to any Loan Party or any Subsidiary pursuant to the terms of any indenture, loan, or credit or similar agreement with respect to Indebtedness
in excess of the Threshold Amount and not otherwise required to be furnished to the Administrative Agent pursuant to any other provisions
of this Agreement.

 

5.8.6
      Management Changes. The Borrower Representative on behalf of all Loan Parties shall promptly notify the
Administrative Agent of any changes in the personnel holding the positions of Chairperson, President, Chief Executive Officer or Chief
Financial Officer of any of the Loan Parties.

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5.8.7
      Projections. The Borrower Representative on behalf of all Loan Parties shall deliver to the Administrative
Agent within sixty (60) days of the commencement of each Fiscal Year an annual operating budget for the consolidated operations of GPB
Prime and its Subsidiaries for such Fiscal Year, including projected key consolidated balance sheet line items as of the last day of
such Fiscal Year, together with projected consolidated statements of income and cash flows of GPB Prime and its Subsidiaries for such
Fiscal Year, as well as a statement of the key assumptions relating to the preparation of such projections.

 

5.8.8
      Notice of Defaults and Events of Default. The Borrower Representative on behalf of all Loan Parties shall
promptly give written notice to the Administrative Agent of the occurrence of any event, occurrence or condition (which is known to an
executive officer of any Loan Party) which constitutes an Event of Default or a Default or which could be reasonably expected to have
a Material Adverse Effect.

 

5.8.9
      ERISA Event. The Borrower Representative on behalf of all Loan Parties shall promptly give written notice
to the Administrative Agent of the occurrence of any ERISA Event with respect to any Loan Party or any Subsidiary.

 

5.8.10
      SEC Filings. Promptly upon receipt or transmission thereof, (a) all material correspondence sent to GPB
Prime or any of its Subsidiaries by the SEC in relation to the affairs of GPB Prime or any of its Subsidiaries, (b) all regular and periodic
reports and all registration statements and prospectuses, if any, filed by or on behalf of any Loan Party or any Subsidiary with any
securities exchange or with the SEC or any governmental authority succeeding to any of its functions and (c) with respect to any Indebtedness
for borrowed money above the Threshold Amount, all financial statements, proxy statements, material reports and material notices sent
or made available generally by GPB Prime or any of its Subsidiaries to its other respective lenders or bondholders (or any trustee or
other representative of any of the foregoing) and any material and non-routine notices or other material and non-routine correspondence
from such lenders or bondholders (or trustee or other representative of such Persons). Any information or document described in clauses
(a) and (b) of this Subsection 5.08.10 that is filed with the SEC via the EDGAR filing system (or any successor system) shall be deemed
to be delivered upon the receipt by the Administrative Agent of notice (including any notice received via e-mail) from the Borrower Representative
that such information or document has been filed and is available on EDGAR provided, further, however, that no such
notice need be delivered in connection with the regularly filed annual reports of GPB Prime (or any direct or indirect parent entity
thereof) and its Subsidiaries on Form 10-K or Quarterly Reports of GPB Prime (or any direct or indirect parent entity thereof) and its
Subsidiaries on Form 10-Q.

 

5.8.11
      Franchise Agreements; Vehicle Records. The Borrower Representative shall promptly notify the Administrative
Agent (a) of any Disposition or proposed Disposition by the Floor Plan Borrowers or any Subsidiary of any Franchise Agreement, or of
any other Disposition outside the ordinary course of business in excess of One Million Dollars ($1,000,000), and (b) of (i) any Franchise
Agreement entered into after the Original Closing Date (and provide a copy of such Franchise Agreement) which deviates in any material
respect from the Franchise Agreements for the applicable Manufacturer delivered on or prior to the Original Closing Date, (ii) any Framework
Agreement (and provide a copy of such Framework Agreement) entered into after the Original Closing Date (including the subject matter
and term of such Framework Agreement), (iii) the termination or expiration of any Franchise Agreement, including the expiration of a
Franchise Agreement which has expired as described in Section 7.01.12 and has not been renewed within 30 days, (iv) any material amendment
or other modification (and provide a copy of such amendment or modification) of any Framework Agreement and (v) any change in the relationship
between any Floor Plan Borrower and any Manufacturer (including the written threat of termination of a Franchise Agreement or Framework
Agreement) to the extent such change could reasonably be expected to result in a Material Adverse Effect.

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5.8.12
      Reportable Anti-Terrorism Compliance Event. The Borrower Representative shall promptly notify the Administrative
Agent if any Loan Party has knowledge of the occurrence of a Reportable Anti-Terrorism Compliance Event.

 

5.8.13
      General Information. In addition to the items set forth in subsections 5.08.1 through 5.08.12 above,
the Borrower Representative agrees to submit, and cause the other Loan Parties to submit, to the Administrative Agent such other information
respecting the financial condition or operations of the Loan Parties as the Administrative Agent may reasonably request from time to
time.

 

Notwithstanding
the foregoing, the obligations in Sections 5.08.1 and 5.08.2 may be satisfied with respect to financial information of GPB Prime and
its Subsidiaries by furnishing (A) the applicable financial statements of any direct or indirect parent entity of GPB Prime or, in each
case, any successor thereof or (B) the Form 10-K or 10-Q, as applicable, filed with the SEC, of any direct or indirect parent entity
of GPB Prime or, in each case, any successor thereof; provided that with respect to each of clauses (A) and (B), (i) such information
is accompanied by consolidating information that explains in reasonable detail the differences between the information relating to any
direct or indirect parent entity of GPB Prime or, in each case, any successor thereof, on the one hand, and the information relating
to GPB Prime and its Subsidiaries on a stand-alone basis, on the other hand, and (ii) to the extent such information is in lieu of information
required to be provided under Section 5.08.2, such materials are accompanied by a report and opinion of O’Connor & Drew P.C.
or Crowe Horwath LLP (as applicable in accordance with Section 5.08.2 above) or another independent regionally or nationally recognized
certified public accounting firm selected by GPB Prime and reasonably acceptable to the Administrative Agent (which shall not be subject
to any “going concern” or like qualification or exception or any qualification or exception as to the scope of the audit).

 

Section
5.09.      Preservation of Existence, Etc. Each Loan Party shall (a) preserve, renew and maintain in full
force and effect its legal existence and good standing under the Laws of the jurisdiction of its organization (in each case, except as
otherwise permitted under Sections 6.04 or 6.05); (b) take all reasonable action to maintain all rights, privileges, permits, licenses
and franchises necessary or desirable in the normal conduct of its business, except to the extent that failure to do so could not reasonably
be expected to have a Material Adverse Effect; (c) preserve or renew all of its registered patents, trademarks, trade names and service
marks, the non-preservation of which could reasonably be expected to have a Material Adverse Effect; and (d) if applicable, preserve
and maintain, in accordance with its standard policies and procedures, all Manufacturer statements of origin, certificates of origin,
certificates of title or ownership, in the case of an Auction Vehicle, a bill of sale in addition to proof of clear title, and other
customary vehicle title documentation (collectively, the “Vehicle Title Documentation”) necessary or desirable in
the normal conduct of its business and maintain records evidencing which Motor Vehicles are being used as Demonstrators, Service Loaner
Vehicles, and Auction Vehicles.

 

Section
5.10.      Maintenance of Assets and Properties. Each Loan Party shall (a) maintain, preserve and protect
all of its material properties and equipment necessary in the operation of its business in good working order and condition, ordinary
wear and tear excepted; (b) make all necessary repairs thereto and renewals and replacements thereof except where the failure to do so
could not reasonably be expected to have a Material Adverse Effect; and (c) use the standard of care typical in the industry in the operation
and maintenance of its facilities.

 

Section
5.11.      Compliance with Laws; Anti-Terrorism; Anti-Corruption. Each of the Loan Parties and the Subsidiaries
shall comply in all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to
it or to its business or property, and obtain or maintain all permits, franchises and other governmental authorizations and approvals
necessary for the ownership, acquisition and disposition of its properties and the conduct of its business, except in such instances
in which (i) such Requirement of Law or order, writ, injunction, decree, authorization or approval is being contested in good faith by
appropriate proceedings diligently conducted; or (ii) the failure to comply with such Requirement of Law, order, writ, injunction, decree,
authorization or approval, could not reasonably be expected to have a Material Adverse Effect. Without limiting the generality of the
foregoing, the Loan Parties shall be in compliance with applicable legal requirements of the Anti-Terrorism Laws, the USA Patriot Act,
and the Bank Secrecy Act. Each Loan Party and Subsidiary shall conduct its businesses in material compliance with the United States Foreign
Corrupt Practices Act of 1977.

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Section
5.12.      Books and Records. The Borrowers and each of the other Loan Parties shall maintain proper books
of record and account, in which full, true and correct in all material respects entries in conformity with GAAP consistently applied
shall be made of all material financial transactions and material matters involving the assets and business of the Borrowers or such
other Loan Party, as the case may be, including, if applicable, books and records specifying the year, make, model, cost, price, location
and vehicle identification number of each Motor Vehicle owned by the Loan Parties.

 

Section
5.13.      Inspection Rights. Each of the Borrowers and each of the other Loan Parties shall permit representatives
and independent contractors of the Administrative Agent to visit and inspect any of its respective properties, to perform audits of Motor
Vehicles constituting Collateral in a manner reasonably satisfactory to the Administrative Agent, to examine its corporate, financial
and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors,
officers, and independent public accountants, all at such reasonable times during normal business hours, as often as may be reasonably
desired, and, except during the occurrence and continuance of an Event of Default during which no advance notice shall be required, upon
not less than two days’ advance notice to the Loan Parties; provided that the Borrowers shall not be required to reimburse
the Administrative Agent for any costs, fees and expenses incurred by the Administrative Agent in connection with the first six (6) of
such Inventory and Collateral inspections per Fiscal Year and, for additional Inventory and Collateral inspections in any such Fiscal
Year, shall only be required to reimburse the Administrative Agent to the extent such Inventory and Collateral inspection is required
by the policies of the Administrative Agent; provided, further, that notwithstanding the foregoing proviso, Inventory and
Collateral inspections conducted upon the occurrence and during the continuance of an Event of Default shall be at the sole cost of the
Borrowers and shall be permitted without prior notice to the Borrowers.

 

Section
5.14.      Environmental Matters and Indemnification. Each of the Loan Parties shall comply with all Environmental
Laws, the non-compliance with which could reasonably be expected to have a Material Adverse Effect. The Loan Parties shall investigate
any circumstances which give the Loan Parties reason to believe or suspect the Contamination of any of their Real Property which could
reasonably be expected to have a Material Adverse Effect (as reasonably determined by such Loan Party). The applicable Loan Party shall
promptly perform any remediation required under applicable Laws of such Contamination which could reasonably be expected to have a Material
Adverse Effect; provided, however, that such Loan Party shall not be required to undertake any such remediation to the
extent that its obligation to do so is being contested in good faith and by proper proceedings and appropriate reserves are being maintained
with respect to such circumstances in accordance with GAAP.

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Section
5.15.      Additional Subsidiaries.

 

5.15.1
      Domestic Subsidiaries. If any Domestic Subsidiary (other than an Excluded Subsidiary) is formed or acquired
after the Original Closing Date and constitutes a Restricted Subsidiary, (a) the Borrower Representative shall notify the Administrative
Agent in writing within ten (10) Business Days (or such longer period as the Administrative Agent may agree) in the case of any such
Domestic Subsidiary that owns, operates or holds a Franchise and twenty (20) Business Days (or such longer period as the Administrative
Agent may agree) in the case of any other such Domestic Subsidiary, in each case, after the date on which such Domestic Subsidiary is
formed or acquired, (b) within thirty (30) calendar days after the Administrative Agent’s request therefor, the Borrower Representative
shall (i) unless such Domestic Subsidiary becomes a Borrower pursuant to Section 5.17, cause such Domestic Subsidiary to duly execute
and deliver either (x) a joinder agreement to become a guarantor of the [*****] Obligations under, and subject to the terms and conditions
of, the [*****] Guaranty Agreement (together with all schedules and information thereto appropriately completed with respect to such Subsidiary)
or (y) a joinder agreement to become a guarantor of the Obligations under, and subject to the terms and conditions of, the Guaranty Agreement
(together with all schedules and information thereto appropriately completed with respect to such Subsidiary) (provided that the
Borrower Representative shall determine in its sole discretion which of the foregoing joinder agreements such Domestic Subsidiary shall
deliver under this clause (i); provided, further, that if such Domestic Subsidiary is not a Franchise or does not own or
operate a Franchise (and is not otherwise restricted from doing so under any Franchise Agreement, Framework Agreement or other similar
agreement between any Manufacturer and any Subsidiary) it shall deliver the joinder agreement under sub-clause (y) above), (ii) cause
such Domestic Subsidiary to deliver a joinder agreement to the Security Agreement providing for the creation of Liens on the Collateral
owned by such Domestic Subsidiary as security for the [*****] Obligations or Obligations, as applicable (together with all schedules and
information thereto appropriately completed with respect to such Subsidiary), (iii) cause such Domestic Subsidiary to deliver a joinder
agreement to the Pledge Agreement providing for the pledge of any Equity Interests held by such Subsidiary pursuant to the Pledge Agreement
(except to the extent that Equity Interests constitute Excluded Property) (together with all schedules and information thereto appropriately
completed with respect to such Subsidiary), (iv) cause such Domestic Subsidiary to deliver a joinder agreement to the Escrow Agreement
providing for, to the extent not constituting Excluded Property, the pledge of the proceeds of any Equity Interests constituting Excluded
Property held by such Domestic Subsidiary of a Franchise or any indirect owner thereof (other than GPB Prime) pursuant to the Escrow
Agreement (together with all schedules and information thereto appropriately completed with respect to such Subsidiary), (v) deliver,
or cause to delivered, any and all certificates representing Equity Interests held by such Domestic Subsidiary that are required to be
delivered pursuant to the Security Documents (and, except with respect to certificates delivered pursuant to a Escrow Agreement, accompanied
by undated stock powers or other appropriate instrument of transfer executed in blank), (vi) take such other actions as may be reasonably
required by the Administrative Agent such that all of the Equity Interests (except to the extent that such Equity Interests constitute
Excluded Property) issued by any such Domestic Subsidiary shall be pledged as security for the [*****] Obligations or the Obligations,
as applicable, pursuant to such Credit Documents in form and substance reasonable satisfactory to the Administrative Agent, as may be
required under applicable Laws to effectuate a fully enforceable first priority pledge of such Equity Interests and (vii) deliver or
cause to be delivered to the Administrative Agent UCC financing statements naming such Domestic Subsidiary as “Debtor” and
naming the Administrative Agent for the benefit of the Secured Parties as “Secured Party,” in form and substance sufficient
in the reasonable opinion of the Administrative Agent and its counsel for filing in each applicable UCC filing office in which filing
is necessary or advisable to perfect the Administrative Agent’s Liens in the Collateral granted by such Domestic Subsidiary under
the Security Documents, (c) within thirty (30) calendar days after the Administrative Agent’s request therefor, the Borrower Representative
shall provide evidence reasonably satisfactory to the Administrative Agent that all Taxes, filing fees and recording fees related to
the perfection of the Liens on the Collateral owned by such Domestic Subsidiary have been paid (subject to Section 5.15.3 below) and
(d) if requested by the Administrative Agent in its reasonable discretion, the Borrower Representative shall deliver, or cause to be
delivered, an opinion of counsel reasonably satisfactory to the Administrative Agent as to customary matters in connection with the joinder
of such Domestic Subsidiary to the Credit Documents.

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5.15.2
      Requirements for All Additional Subsidiaries. With respect to any Subsidiary (other than an Excluded
Subsidiary) formed or acquired after the Original Closing Date that constitutes a Restricted Subsidiary, the Borrower Representative
shall deliver or cause to be delivered to the Administrative Agent within thirty (30) calendar days after the Administrative Agent’s
request therefor, (i) a complete copy of the Organization Documents of such Subsidiary, together with a certificate of status or good
standing (to the extent such certificates are customarily issued by the jurisdiction of formation of such Subsidiary), (ii) any and all
certificates representing Equity Interests that do not constitute Excluded Property issued by any such Subsidiary that are required to
be delivered pursuant to the Security Documents, accompanied by undated stock powers or other appropriate instruments of transfer executed
in blank (or if any shares of Capital Stock are uncertificated, confirmation and evidence reasonably satisfactory to the Administrative
Agent that its Lien in such uncertificated Capital Stock has been granted to, and perfected by, the Administrative Agent for the benefit
of the Secured Parties, in accordance with the Security Documents) and (iii) any and all promissory notes or other instruments evidencing
any loans, advances or other debt owed by such Subsidiary to another Loan Party, in each case, with an original principal amount in excess
of $500,000.

 

 5.15.3
      Requirements for After-Acquired Real Property. With respect to (i) the
fee-owned Real Property listed on Schedule 4.01.1(x), (ii) any fee-owned Real Property acquired by an applicable Borrower after
the Original Closing Date with the proceeds of a Delayed Draw Mortgage Loan, a Facility Increase with respect to the Mortgage Facility
or an Additional Mortgage Loan and (iii) any fee-owned Real Property constituting substitute Collateral pursuant to a Permitted Real
Estate Sale (the Real Property described in clauses (i), (ii) and (iii), subject to any permitted Dispositions of such Real Property
under this Agreement, collectively, the “Real Estate Collateral”), the applicable Borrower shall provide to the Administrative
Agent each of the following, in form and substance reasonably acceptable to the Administrative Agent, on the Original Closing Date (in
the case of Real Estate Collateral described in clause (i) above), on the date the applicable Mortgage Loan is made (in the case of Real
Estate Collateral described in clause (ii) above), or on the date the applicable substitution is made (in the case of Real Estate Collateral
described in clause (iii) above) (or, in each case, such longer period as the Administrative Agent may agree): (a) title insurance commitments
(subject to Permitted Encumbrances) in favor of the Administrative Agent, together with current ALTA surveys, for the applicable Real
Estate Collateral, (b) Phase I environmental reports for the applicable Real Estate Collateral, (c) (x) “Life of Loan”
Federal Emergency Management Agency Standard Flood Hazard determinations, (y) notices, in the form required under Flood Laws, about special
flood hazard area status and flood disaster assistance duly executed by each Loan Party, to the extent applicable, and (z) if any building
on an improved Real Property encumbered by any Mortgage is located in a Special Flood Hazard Area, a flood insurance policy on terms
reasonably satisfactory to the Administrative Agent and each Lender as determined at least 10 Business Days prior to the filing of any
such Mortgage, (d) a customary Mortgage and any other related Credit Documents required hereunder, (e) a Real Estate Appraisal opining
as to the fair market value of the subject Real Estate Collateral and (f) such other customary reports or certifications as related to
such Real Estate Collateral as the Administrative Agent may reasonably request (in each case, unless the provision of such report or
certificate is inconsistent with any other provision specifically provided for under this Agreement); provided, however,
that there shall be no obligation to deliver to the Administrative Agent any report referenced under clauses (b) or (f) above whose disclosure
to the Administrative Agent would require the consent of a Person other than the Loan Parties or one of their Subsidiaries, where, despite
the commercially reasonable efforts of the applicable Borrower to obtain such consent, such consent cannot be obtained.

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Section
5.16.      Further Assurances. Each Loan Party shall execute, acknowledge, deliver, and record or file such
further instruments, including, without limitation, further security agreements, financing statements, and continuation statements, and
do such further acts as may be reasonably necessary or proper to carry out more effectively the purposes of this Agreement, including,
without limitation, (i) causing any additions, substitutions, replacements, or equipment related to the Motor Vehicles financed under
the Floor Plan Facility to be covered by and subject to the Liens created in the Credit Documents to which any Floor Plan Borrower is
a party; and (ii) with respect to any Motor Vehicles which are, or are required to be, subject to Liens under the Credit Documents, execute,
acknowledge, endorse, deliver, procure, and record or file any document or instrument, including, without limitation, any financing statement
or, if an Event of Default has occurred and is continuing, any Vehicle Title Documentation, deemed advisable by the Administrative Agent
to protect the Liens granted in the Security Documents against the rights or interests of third Persons. Notwithstanding anything to
the contrary in the Credit Documents, the Loan Parties shall not be required to provide mortgages with respect to any leasehold interest
in any Real Property.

 

Section
5.17.      Joinder of Additional Borrowers. Any Subsidiary of GPB Prime that is not a Borrower under this
Agreement may, but shall not be required to, in its sole discretion from time to time execute and deliver to the Administrative Agent
a Joinder Agreement (together with all schedules thereto) to become a Borrower under this Agreement; provided that such Joinder
Agreement shall specify (a) whether such Subsidiary shall join this Agreement as a Floor Plan Borrower and (b) whether such Subsidiary
shall join this Agreement as a [*****] Borrower or as a Non-[*****] Borrower. Such Subsidiary shall thereafter have all of the rights,
benefits and obligations of a [*****] Borrower or Non- [*****] Borrower, as applicable, party to this Agreement.

 

Section
5.18.      Interest Rate Protection. The Borrower Representative shall, within one hundred eighty (180) days
after the Original Closing Date, enter into, and thereafter maintain at all times, Swap Agreements with one or more Swap Providers to
the extent necessary to provide that at least fifty percent (50)% of the aggregate original principal amount of the Term Loans and Mortgage
Loans is subject to either a fixed rate of interest or interest rate protection, which Swap Agreements shall be on an ISDA standard form
and have terms and conditions reasonably satisfactory to the Administrative Agent.

 

Section
5.19.      Post-Closing Deliverables. Notwithstanding the conditions precedent set forth in Section 4.01,
the Loan Parties have informed the Administrative Agent and the Lenders that certain items required to be delivered as conditions precedent
to the effectiveness of this Agreement will not be delivered as of the Original Closing Date. As an accommodation to the Loan Parties,
the Administrative Agent and the Lenders have agreed to make the Loans available under this Agreement notwithstanding that such conditions
have not been satisfied. In consideration of such accommodation, each applicable Loan Party hereby agrees to take each of the actions
described on Schedule 5.19 attached hereto, in each case, in the manner and by the dates set forth thereon, or such later dates
as may be agreed to by Administrative Agent.

 

Section
5.20.      Dispositions of Restricted Equity Interests. The Borrower Representative shall provide the Administrative
Agent with five (5) Business Days advance written notice of any proposed Disposition of the Restricted Equity Interests, which notice
shall be accompanied by the definitive documentation for the proposed Disposition. Provided that the proposed Disposition is permitted
by the terms of Section 6.05(h) of this Agreement, the Administrative Agent shall join in joint Release Instructions with the applicable
Certificate Holders and cause the delivery of such Release Instructions to the Escrow Agent.

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ARTICLE
VI

 

NEGATIVE
COVENANTS

 

Each of
the Loan Parties agrees that until payment in full of all Obligations (other than contingent indemnification obligations), it will not
do, and it will not permit any of the other Loan Parties to do, any of the following:

 

Section
6.01.      Liens. No Borrower and no other Loan Party shall create, incur, assume or suffer to exist any Lien
upon any of its properties (real or personal), assets or revenues, whether now owned or hereafter acquired, other than Permitted Encumbrances.

 

Section
6.02.      Investments and Loans. No Borrower and no other Loan Party nor any Subsidiary shall make any Investments
in any Persons, except:

 

(a)
      Permitted Acquisitions;

 

(b)
      Investments in cash and Cash Equivalents;

 

(c)
      advances to its employees in the ordinary course of business for travel, entertainment, relocation and general
ordinary course of business purposes;

 

(d)
      extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade
credit in the ordinary course of business;

 

(e)
      Investments by the Loan Parties in their respective Subsidiaries outstanding on the date hereof and set forth
on Schedule 6.02;

 

(f)
      Investments (i) by any Loan Party or any Subsidiary in any Loan Party and (ii) by any non-Loan Party Subsidiary
in another non-Loan Party Subsidiary;

 

(g)
      Investments (i) by a Loan Party in any non-Loan Party Subsidiary and (ii) by any Loan Party or any Subsidiary
in a Person that does not constitute a Subsidiary, in an aggregate principal amount at any time outstanding under this clause (g) not
to exceed Fifteen Million Dollars ($15,000,000);

 

(h)
      any Investment in securities or other assets not constituting Cash Equivalents or Investment Grade Securities
and received in connection with a Disposition made in accordance with Section 6.05 or any other disposition of assets not constituting
a Disposition;

 

(i)
      any Investment acquired by GPB Prime or any Subsidiary (i) in exchange for any other Investment, accounts receivable
or indorsements for collection or deposit held by GPB Prime or any Subsidiary in connection with or as a result of a bankruptcy, workout,
reorganization or recapitalization of, or settlement of delinquent accounts and disputes with or judgments against, the issuer of such
other Investment or accounts receivable (including any trade creditor or customer), (ii) in satisfaction of judgments against other Persons,
(iii) as a result of a foreclosure by GPB Prime or any Subsidiary with respect to any secured Investment or other transfer of title with
respect to any secured Investment in default or (iv) as a result of the settlement, compromise or resolution of (A) litigation, arbitration
or other disputes or (B) obligations of trade creditors or customers that were incurred in the ordinary course of business or consistent
with industry practice of GPB Prime or any Subsidiary, including pursuant to any plan of reorganization or similar arrangement upon the
bankruptcy or insolvency of any trade creditor or customer;

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(j)
      (i) guarantees of Indebtedness permitted under Section 6.03, performance guarantees and Contingent Obligations
incurred in the ordinary course of business or consistent with industry practice and (ii) the creation of Liens on the assets of GPB
Prime or any Subsidiary in compliance with Section 6.01;

 

(k)
      Investments the payment for which consists of Equity Interests (other than Disqualified Stock) of GPB Prime
or any direct or indirect parent company thereof;

 

(l)
      any transaction to the extent it constitutes an Investment that is permitted by and made in accordance with
the provisions of Sections 6.04, 6.05, 6.07 or 6.09;

 

(m)
     any Investment by any Captive Insurance Subsidiary in connection with the provision of insurance by the applicable
Captive Insurance Subsidiary, which Investment is either made in the ordinary course of business, is consistent with industry practice
of such Captive Insurance Subsidiary, is made by reason of applicable Law or is required or approved by any regulatory authority having
jurisdiction over such Captive Insurance Subsidiary or its business, as applicable; and

 

(n)
      any other Investments at any time outstanding under this clause (n) not to exceed an aggregate principal amount
of Five Million Dollars ($5,000,000).

 

The entry
of a Loan Party or any Subsidiary into a Swap Agreement or other hedging arrangement shall not be deemed to be an Investment for purposes
of this Section 6.02; provided that such Swap Agreement or other hedging arrangement is (or was) entered into in connection with
the Obligations or in the ordinary course of business for the purpose of directly mitigating risks associated with liabilities, commitments,
investments, assets, or property held or reasonably anticipated by such Loan Party or Subsidiary, or changes in the value of securities
issued by such Loan Party or Subsidiary, and not for purposes of speculation or taking a “market view.

 

Section
6.03.      Indebtedness. No Loan Party nor any Subsidiary shall create, incur, assume or suffer to exist any
Indebtedness, except:

 

(a)     
the Obligations;

 

(b)     
Indebtedness outstanding on the Closing Date and listed on Schedule 6.03(b) attached hereto and any Permitted Refinancing thereof;

 

(c)     
Indebtedness secured by Liens permitted under clause (n) of the definition of “Permitted Encumbrances” (provided that,
without limiting the aggregate amount that may be incurred under this clause (c), all such lines of credit consisting of purchase money
financing of Service Loaner Vehicles and Demonstrators outstanding on the Closing Date are listed on Schedule 6.03(c) attached
hereto);

 

(d)     
obligations (contingent or otherwise) of any Loan Party or Subsidiary existing or arising under any Swap Agreements or other hedging
arrangement; provided that such obligations are (or were) entered into in connection with the Obligations or in the ordinary course
of business for the purpose of directly mitigating risks associated with liabilities, commitments, investments, assets, or property held
or reasonably anticipated by such Loan Party or Subsidiary, or changes in the value of securities issued by such Loan Party or Subsidiary,
and not for purposes of speculation or taking a “market view;”

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(e)     
foreign exchange hedging transactions entered into in the ordinary course of business to manage the foreign currency risks of the Loan
Parties and their Subsidiaries;

 

(f)     
Indebtedness under leases constituting Capitalized Lease Obligations and purchase money obligations for fixed assets; provided
that the aggregate principal amount of all of such Indebtedness at any time outstanding under this clause (f) shall not exceed fifteen
million Dollars ($15,000,000), and any Permitted Refinancing thereof;

 

(g)     
Indebtedness of any Person that becomes a Subsidiary or, in the case of an acquisition by a then-existing Subsidiary of the assets of
another Person that does not constitute a Subsidiary (including any acquisition by means of a merger with or into such Subsidiary), Indebtedness
assumed by the applicable Subsidiary acquiring such assets, in each case, in connection with an acquisition permitted hereunder after
the Closing Date and excluding any Vehicle Financing Indebtedness (provided, that (i) such Indebtedness was in existence (but
not incurred or created in connection with an acquisition) on the date of such acquisition, (ii) neither GPB Prime nor any Subsidiaries
(other than a Person so acquired or, solely to the extent it acquires assets subject to Indebtedness permitted under this clause (g),
Parent Holdings or the applicable Subsidiary) have any obligation with respect to such Indebtedness, (iii) such Indebtedness is unsecured
or is secured only by Liens permitted pursuant to clause (f) of the definition of “Permitted Encumbrances”) and any Permitted
Refinancing thereof;

 

(h) 
     Indebtedness of GPB Prime to a Subsidiary or of a Subsidiary to GPB Prime or another Subsidiary, in each case, to the extent
such Indebtedness constitutes a Permitted Investment; provided that any Indebtedness for borrowed money incurred by a Loan Party
under this clause (h) and owing to a non-Loan Party Subsidiary is subordinated to the Obligations on terms reasonably acceptable to the
Administrative Agent (it being agreed that the subordination terms set forth in the Form of Intercompany Note attached hereto as Exhibit
K are reasonably acceptable to the Administrative Agent);

 

(i)     
Indebtedness incurred by a Loan Party or Subsidiary in connection with any Permitted Investment in an aggregate principal amount outstanding
under this clause (i) at any time not to exceed Ten Million Dollars ($10,000,000), and any Permitted Refinancing thereof;

 

(j)
      [reserved];

 

(k)      the
incurrence of Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument
drawn against insufficient funds in the ordinary course of business or consistent with industry practice;

 

(l)     
the incurrence of any guarantee by any Loan Party or any Subsidiary of Indebtedness or other obligations of any Loan Party or any Subsidiary
so long as the incurrence of such Indebtedness or other obligations incurred by such Loan Party or such Subsidiary is permitted by this
Agreement;

 

(m)     the
incurrence of (a) Indebtedness owed to banks and other financial institutions incurred in the ordinary course of business or consistent
with industry practice in connection with ordinary banking arrangements to manage cash balances of GPB Prime and any of its Subsidiaries
and (b) Indebtedness in respect of Cash Management Products;

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(n)     
the incurrence of Indebtedness by GPB Prime or any of its Subsidiaries undertaken in connection with cash management (including netting
services, automatic clearinghouse arrangements, overdraft protections, employee credit card programs and related or similar services
or activities) with respect to GPB Prime and any of its Subsidiaries or any joint venture in the ordinary course of business or consistent
with industry practice, including with respect to financial accommodations of the type described in the definition of Cash Management
Products;

 

(o)     
guarantees incurred in the ordinary course of business or consistent with industry practice in respect of obligations to suppliers, customers,
franchisees, lessors, licensees, sub- licensees and distribution partners; and

 

(p)     
any other Indebtedness in an aggregate principal amount at any time outstanding under this clause (q) not to exceed Five Million Dollars
($5,000,000), and any Permitted Refinancing thereof.

 

Section
6.04.      Fundamental Changes; Amendments to Organization Documents. No Borrower and no other Loan Party
nor any Subsidiary shall merge, liquidate, consolidate with or into another Person (whether in one transaction or in a series of transactions),
except that, so long as immediately after giving effect to such transaction or series of transactions, there exists no Event of Default:

 

(a)     
any Subsidiary may merge, liquidate or consolidate with or into a Borrower,  provided that a Borrower is the continuing or surviving
Person;

 

(b)     
any Subsidiary that is not a Borrower may merge, liquidate or consolidate with or into any other Subsidiary that is not a Borrower, provided
that in any such transaction between any Subsidiary that is a Subsidiary Guarantor and an entity that is not a Subsidiary Guarantor,
the surviving entity shall be a Subsidiary Guarantor;

 

(c)     
any Subsidiary of GPB Prime may sell or transfer all, or substantially all, of its assets (upon voluntary liquidation or otherwise) to
any Loan Party (other than GPB Prime or Parent Holdings Guarantor);

 

(d)     
any Subsidiary of GPB Prime may merge or consolidate with or into another Person that is not a Subsidiary of GPB Prime if (i) a wholly-owned
Subsidiary of GPB Prime is the surviving Person (provided that if the Subsidiary of GPB Prime that merges or consolidates with
or into such Person was (x) a Subsidiary Guarantor immediately prior thereto, then the surviving Person shall be a Subsidiary Guarantor
or (y) a Borrower immediately prior thereto, then the surviving Person shall be a Borrower) and (ii) immediately prior to and after giving
effect to such merger or consolidation, there exists no Event of Default;

 

(e)     
any Subsidiary may liquidate or change its legal form if the Borrower Representative determines in good faith that such action is in
the best interests of the Borrowers and the Subsidiaries and is not materially disadvantageous to the Lenders; provided that if
such liquidated Subsidiary (i) is a Subsidiary Guarantor immediately prior thereto, then the Person who receives the assets of such liquidated
Subsidiary shall be a Subsidiary Guarantor or (ii) is a Borrower immediately prior thereto, then the Person who receives the assets of
such liquidated Subsidiary shall be a Borrower;

 

(f)     
any Borrower or Subsidiary may merge or consolidate with, or Dispose of all or substantially all of its assets to, any other Person in
order to effect a Permitted Investment;  provided that solely in the case of a merger or consolidation involving a Loan Party,
no Event of Default exists or would result therefrom; provided, further, that the continuing or surviving Person will be
(a) a Borrower or (b) a Subsidiary, and will have complied with the applicable requirements of Section 5.15; and

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(g)     
any Borrower or any Subsidiary may merge or consolidate with, or Dispose of all or substantially all of its assets to, any other Person,
the purpose of which is to effect a Disposition permitted pursuant to Section 6.05.

 

While any
Event of Default has occurred and is continuing, no Borrower and no other Loan Party or Subsidiary of a Borrower or other Loan Party
shall amend its Organization Documents in a manner that could reasonably be expect to have a Material Adverse Effect.

 

Section 6.05.     Dispositions.
GPB Prime and its Subsidiaries shall not make any Dispositions, except:

 

(a)     
Dispositions of (i) assets in the ordinary course of business and (ii) Motor Vehicles (subject, in the case of Motor Vehicles in respect
of which a Floor Plan Committed Loan remains outstanding, to the required pay-down of the Floor Plan Facility);

 

(b)     
Dispositions of property that is obsolete, worn out or no longer used in or useful to such Loan Party’s or such Subsidiary’s
business, whether now owned or hereafter acquired;

 

(c)     
Dispositions of equipment to the extent that (i) such property is exchanged for credit against the purchase price of similar replacement
property or (ii) the proceeds of such Disposition are applied to the purchase price of similar replacement property;

 

(d)     
the sale of residual ownership rights in vehicles (other than Motor Vehicles which are Inventory) and equipment upon the termination
of operating leases;

 

(e)      Permitted
Real Estate Sales;

 

(f) 
     [reserved];

 

(g)     
Dispositions of chattel paper, Accounts arising from the wholesale of parts and accessories, and retail sales contracts, in each case
in arms-length transactions for fair value in the ordinary course of business of the Floor Plan Borrowers;

 

(h)     
Dispositions not otherwise permitted under this Section 6.05; provided, that (i) no Event of Default has occurred and is continuing
at the time of such Disposition or would result therefrom, (ii) the Borrowers are in pro forma compliance with the financial covenants
set forth in Section 6.15 after giving effect to such Disposition, (iii) such Disposition is for Fair Market Value and (iv) the Net Available
Proceeds of such Disposition are applied or reinvested in accordance with Section 2.03.4(b);

 

(i)      [reserved];

 

(j)     
Dispositions of improvements made to leased real property to landlords pursuant to customary terms of leases entered into in the ordinary
course of business;

 

(k)     
Dispositions permitted under Section 6.01, 6.02, 6.04 or 6.07;

 

(l)     
(i) the lease, assignment or sublease, license or sublicense of any real property or personal property (x) in the ordinary course of
business or consistent with industry practice or (y) by a Loan Party or Subsidiary to a Loan Party or Subsidiary and (ii) the exercise
of termination rights with respect to any lease, sublease, license or sublicense or other agreement;

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(m)     
Dispositions in connection with Casualty Events; provided, that the Net Available Proceeds of such Disposition are applied or
reinvested in accordance with Section 2.03.4(b);

 

(n)      the
unwinding of any Swap Agreements or other hedging arrangements;

 

(o)     
the lapse or abandonment of intellectual property rights in the ordinary course of business or consistent with industry practice, which
in the reasonable good faith determination of the Borrower Representative, are not material to the conduct of the business of the Borrowers
and their Subsidiaries taken as a whole;

 

(p)     
Dispositions of property to a Loan Party or a wholly-owned Subsidiary of GPB Prime; provided, that if the transferor of such property
is a Borrower or a Guarantor, the transferee thereof must either be a Borrower or a Guarantor;

 

(q)      Dispositions
listed on Schedule 6.05;

 

(r)     
the licensing or sublicensing of intellectual property or other general intangibles in the ordinary course of business or consistent
with industry practice; and

 

(s)     
the issuance of directors’ qualifying shares and shares of Capital Stock of Foreign Subsidiaries issued to foreign nationals as
required by applicable Law.

 

Section
6.06.      [Reserved].

 

Section 6.07.
      Restricted Payments. GPB Prime and its Subsidiaries may not declare or make, directly or indirectly,
any Restricted Payments, except that:

 

(a)     
any (i) Subsidiary may make Restricted Payments to GPB Prime or any other Subsidiary and (ii) a non-wholly-owned Subsidiary may make
Restricted Payments on or in respect of any class or series of securities issued by such Subsidiary, so long as each applicable Loan
Party or Subsidiary that holds such Equity Interests in such class or series of securities receives at least its pro rata share of such
Restricted Payment in accordance with its Equity Interests in such class or series of securities or such other amount to which it entitled
pursuant to the terms of such Equity Interest; subject, in each case to pro forma compliance with the financial covenants
set forth in Section 6.15 hereof as of the most recently ended Test Period prior to and after giving effect to such Restricted Payments;

 

(b)     
the Loan Parties and the Subsidiaries may declare and make non-cash dividend payments or other non-cash distributions payable solely
in their Capital Stock;

 

(c)     
the Loan Parties and the Subsidiaries may declare and make Tax Distributions;

 

(d)      [reserved];

 

(e)      [reserved];

 

(f)      [reserved];

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(g)     
so long as no Event of Default shall have occurred and be continuing or would result therefrom, GPB Prime and its Subsidiaries are in
pro forma compliance with the financial covenants set forth in Section 6.15 as of the most recently ended Fiscal Quarter prior
to and upon giving effect to such Restricted Payments, the Loan Parties and the Subsidiaries may declare and make other Restricted Payments.

 

Restricted
Payments consisting of cash dividends and distributions (other than Tax Distributions) shall not be paid more frequently than quarterly
at the end of a Fiscal Quarter and following delivery of the Compliance Certificate for such Fiscal Quarter demonstrating the absence
of any Default or Event of Default and including full compliance with all financial covenants set forth in Section 6.15 hereof, and calculation
and payment of any mandatory Excess Cash Flow prepayment if required pursuant to Section 2.03.4(a) hereof. For the avoidance of doubt,
(x) all Restricted Payments consisting of cash dividends and distributions shall be generated from current income and included in the
calculations of the Fixed Charge Coverage Ratio and Fixed Charge Coverage Ratio (All Cash Dividends) set forth in Sections 6.15.2 and 6.15.3
hereof, respectively, (y) no Restricted Payments consisting of cash dividends and distributions shall be paid from the proceeds of Indebtedness
or from the Disposition of assets of any Loan Party outside the ordinary course of business, including but not limited to Permitted Real
Estate Sales, and (z) no Restricted Payments consisting of cash dividends and distributions, other than Tax Distributions, shall be paid
prior to delivery of a Compliance Certificate (including financial covenant calculations) and, if payable pursuant to Section 2.03(4)(a)
above (including payments required based upon the Total Leverage Ratio threshold), payment of mandatory Excess Cash Flow payments. Notwithstanding
anything to the contrary set forth in this Section 6.07, the Specified Closing Distribution shall be permitted, subject to satisfaction
of the terms and conditions set forth in the definition of “Closing Date Transactions,” the conditions precedent set forth
in Section 4.04 hereof, and any other terms and conditions which specifically reference the Specified Closing Distribution.

 

Section
6.08.      Change in Nature of Business. GPB Prime and its Subsidiaries shall not engage in any material line
of business substantially different from (a) those lines of business conducted by it on the Closing Date or (b) any business substantially
related, complementary or incidental to, or a reasonable development or expansion of, the lines of business conducted by GPB Prime and
its then-existing Subsidiaries on the Closing Date.

 

Section
6.09.      Transactions with Affiliates. GPB Prime and its Subsidiaries shall not enter into any transaction
of any kind with any Affiliate (other than with its Subsidiaries) involving payments or consideration in excess of $10,000,000 in the
aggregate (for all such transactions entered into on or after the Closing Date by Parent Holdings Guarantor and its Subsidiaries), whether
or not in the ordinary course of business, other than on terms, taken as a whole, not materially less favorable to such Loan Party or
Subsidiary as would be obtainable at the time in a comparable arm’s length transaction with a Person other than an Affiliate; provided,
however, that the foregoing restrictions shall not apply to:

 

(a)     
the consummation of the Original Closing Date Transactions and the Closing Date Transactions;

 

(b)     
loans and other transactions by the Borrowers and the Subsidiaries to the extent permitted under Article 6;

 

(c)     
employment and severance arrangements between the Borrowers and the Subsidiaries and their respective officers and employees in the ordinary
course of business;

 

(d)     
the payment of reasonable out of pocket expenses to, and indemnities provided on behalf of, directors, officers and employees of (i)
GPB Prime and its Subsidiaries in the ordinary course of business to the extent attributable to the ownership or operation of GPB Prime
and its Subsidiaries, and (ii) Parent Holdings Guarantor and its Subsidiaries in the ordinary course of business to the extent attributable
to the ownership or operations of Parents Holdings Guarantor and its Subsidiaries, provided that, the aggregate amount of such
payments and indemnities shall not exceed $1,000,000 in aggregate amount.

    -127-

     

    

(e)
      Restricted Payments permitted under Section 6.07;

 

(f)     
transactions between or among GPB Prime and one or more Subsidiaries or between or among Subsidiaries (or, for the avoidance of doubt,
any entity that becomes a Subsidiary as a result of such transaction); provided that, with respect to payments of management fees
and other payments under the Management Services Agreement, such fees and payments shall be subject to the limitations set forth herein
and in the Management Services Subordination Agreements;

 

(g)     
any merger, consolidation or amalgamation of Parent Holdings Guarantor and its direct parent company provided such parent company
is a Loan Party (and, for the avoidance of doubt has provided and/or joined into all Credit Documents, including Security Documents,
as were provided by Parent Holdings Guarantor); provided further that such merger, consolidation or amalgamation of Parent Holdings
Guarantor is otherwise in compliance with the terms of this Agreement and effected for a bona fide business purpose;

 

(h)     
any merger, consolidation or amalgamation of GPB Prime and its direct parent companies provided each such applicable such parent
company is a Loan Party (and, for the avoidance of doubt has provided and/or joined into all Credit Documents, including Security Documents,
as were provided by GPB Prime); provided further that such merger, consolidation or amalgamation of GPB Prime is otherwise in
compliance with the terms of this Agreement and effected for a bona fide business purpose.

 

Section
6.10.      Burdensome Agreements; Negative Pledges. No Borrowers and no other Loan Party shall (a) enter into
or grant any negative pledges or agreements restricting its ability to pledge its assets or to grant Liens against its assets to secure
the Obligations or (b) enter into any Contractual Obligation that limits the ability of such Loan Party: (i) to make Restricted Payments
to a Loan Party or to otherwise transfer property to a Loan Party, or (ii) to guarantee the Obligations as provided hereunder and subject
to the limits provided herein; provided, that the foregoing restrictions shall not apply to:

 

(i)     
the extent that any capital lease or purchase money facility of any of the Loan Parties prohibits the granting of Liens against the equipment
or asset that is being leased or financed, as applicable, pursuant to such capital lease or purchase money facility;

 

(ii)     
restrictions in Franchise Agreements or Framework Agreements (or any consents provided thereunder) and, for the avoidance of doubt, no
Loan Party shall be prohibited by this Section 6.10 from complying with minimum capitalization, working capital, net worth or financial
ratios imposed by or pursuant to any Franchise Agreement or Framework Agreement;

 

(iii)
      customary restrictions on assignments, subletting or other transfers contained in the documents governing leases,
licenses and similar agreements entered into in the ordinary course of business (provided that such restrictions are limited to
the property subject to such lease, license or other agreement, and provided that the provisions of this clause (iii) shall not be deemed
a waiver of or constitute the implied consent of the Credit Parties to any agreements or transactions which are either prohibited by
the terms of the Credit Documents or which by the terms of any of the Credit Documents require the prior consent of any or all of the
Credit Parties);

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(iv)      restrictions
existing under or by reason of applicable Law;

 

(v) 
      restrictions binding upon any Person, or relating to Indebtedness or Equity Interests of a Person, which is merged
into or acquired by a Loan Party, or assets acquired from a Person, in each case, on or after the date of this Agreement and to the extent
constituting a Permitted Investment, which restrictions (A) were not created in anticipation of such acquisition and (B) do not apply
to any other Loan Party or the assets of any other Loan Party;

 

(vi)     
restrictions arising in connection with any Disposition permitted by Section 6.05, so long as such restrictions relate solely to the
assets subject thereto;

 

(vii) 
    customary provisions in joint venture agreements, and other similar agreements, in connection with a Captive Insurance Subsidiary
permitted under this Agreement and entered into in the ordinary course of business;

 

(viii) 
    customary restrictions in leases, subleases, licenses or asset sale agreements otherwise permitted hereby so long as such
restrictions relate solely to the assets subject thereto;

 

(ix) 
      restrictions imposed by any agreement relating to secured Indebtedness permitted pursuant to clause (h) of the definition
of “Permitted Encumbrances” to the extent that such restrictions apply solely to the assets securing such Indebtedness;

 

(x) 
      restrictions on cash or other deposits or net worth imposed by customers under contracts entered into in the ordinary
course of business or consistent with industry practice or arising in connection with any Permitted Encumbrances;

 

(xi) 
      customary provisions restricting assignment of any agreement;

 

(xii)
      encumbrances or restrictions in effect on the Closing Date, including pursuant to the Credit Documents and any
Swap Agreements, Swap Obligations and the related documentation;

 

(xiii)
      contracts or agreements for the sale or disposition of assets, including any restrictions with respect to a
Subsidiary pursuant to an agreement that has been entered into for the sale or disposition of any of the Capital Stock or assets of such
Subsidiary;

 

(xiv)
      any other agreement or instrument governing any Indebtedness permitted to be incurred or issued pursuant to
Section 6.03 entered into after the Original Closing Date that contains encumbrances and restrictions that either (i) are no more restrictive
in any material respect, taken as a whole, with respect to GPB Prime or any of its Subsidiaries than (A) the restrictions contained in
the Credit Documents or (B) those encumbrances and other restrictions that are in effect on the Closing Date with respect to GPB Prime
or such Subsidiary pursuant to agreements in effect on the Closing Date, (ii) are not materially more disadvantageous, taken as a whole,
to the Lenders than is customary in comparable financings for similarly situated issuers or (iii) will not materially impair the Borrowers’
ability to make payments on the Obligations when due, in each case in the good faith judgment of the Borrower Representative; and

 

(xv) 
      any encumbrances or restrictions imposed by any amendments, modifications, restatements, renewals, increases, supplements,
refundings, replacements or refinancings of the contracts, instruments or obligations referred to in clauses (i) through (xiv) above;
provided that such amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings
are no more restrictive with respect to such encumbrance and/or such other restriction than those prior to such amendment, modification,
restatement, renewal, increase, supplement, refunding, replacement or refinancing.

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Section
6.11.     Use of Proceeds. No Borrower shall use the proceeds of any Loan, whether directly or indirectly,
and whether immediately, incidentally or ultimately, to purchase or carry “margin stock” (within the meaning of Regulation
U of the Federal Reserve Board) or to extend credit to others for the purpose of purchasing or carrying margin stock or to refund Indebtedness
originally incurred for such purpose.

 

Section
6.12.     Acquisitions. No Loan Party nor any Subsidiary shall consummate any Acquisition, unless:

 

(a)     
the Person to be (or whose assets are to be) acquired does not oppose such Acquisition and the material line or lines of business of
the Person to be acquired either (i) is not substantially different from the lines of business conducted by GPB Prime and its Subsidiaries
on the Closing Date or (ii) is substantially related, complementary or incidental to, or a reasonable development or expansion of, the
lines of business conducted by GPB Prime and its Subsidiaries;

 

(b)     
no Default shall have occurred and be continuing either immediately prior to or immediately after giving effect to such Acquisition;

 

(c)     
the Borrower Representative shall have given not less than thirty (30) days’ prior written notice to the Administrative Agent (or
such later notice as agreed to by the Administrative Agent) identifying the applicable Acquisition and providing a general overview of
such Acquisition based on information known to the Loan Parties at such time (provided that such notice need not identify specific
terms of such Acquisition and it is agreed and understood that the terms of such Acquisition, whether or not identified to the Agent,
may be thereafter revised or altered without any need to update the Administrative Agent);

 

(d)     
for Acquisitions with a Cost of Acquisition in excess of $5,000,000, the Borrower Representative shall have furnished to the Administrative
Agent historical financial statements of such target Person as of the end of the most recently completed Fiscal Year and interim Fiscal
Month of such target Person (in each case, solely to the extent (i) such financial statements are available and (ii) the furnishing of
such financial statements to the Administrative Agent would not violate any confidentiality restrictions applicable thereto);

 

(e)     
GPB Prime and its Subsidiaries shall be in pro forma compliance with the financial covenants set forth in Section 6.15 as of the
most recently ended Test Period, after giving effect to such Acquisition, as evidenced by a pro forma Compliance Certificate;

 

(f)     
if, after the consummation of such Acquisition, the Person acquired is a Restricted Subsidiary, the applicable Loan Party or Subsidiary
shall have complied with the provisions of Section 5.15 and the applicable provisions of the Security Documents (in each case, within
the applicable time period for compliance); and

 

(g)     
the Cost of Acquisition for such Acquisition, together with the Cost of Acquisition for all other Acquisitions in the same Fiscal Year,
is not greater than the aggregate amount of sixty Million Dollars ($60,000,000), with unused amounts in any Fiscal Year being carried
over to each succeeding Fiscal Year (inclusive of amounts carried over from prior Fiscal Years).

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Section
6.13.     Equal Collateral; Perfection of Deposit Accounts. No Loan Party will (a) grant to any Person any Lien
on any Excluded Property unless the Administrative Agent (for the benefit of the Secured Parties) has a Lien on such property, in each
case, other than Liens permitted under clauses (a), (b), (c), (d), (e), (f), (g), (h), (i), (k), (m), (n), (o) (solely with respect to
a Permitted Refinancing of Liens incurred under clauses (f) or (h) of the definition of “Permitted Encumbrances”), (p), (q)
and (r) of the definition of “Permitted Encumbrances” or (b) permit any Person (other than the Administrative Agent (on behalf
of the Secured Parties) to obtain any Control Agreement over any deposit account of a Loan Party (other than to perfect a Lien permitted
under clause (r) of the definition of “Permitted Encumbrances”), in each case under this Section 6.13, except to the extent
otherwise agreed to by the Administrative Agent in its reasonable discretion.

 

Section
6.14.     Tax Consolidation. No Borrower shall file or consent to, or permit, the filing of any consolidated
income Tax return on behalf of it with any Person (other than a consolidated return of GPB Prime (or any permitted successor under this
Agreement) and its Subsidiaries).

 

Section
6.15.     Financial Covenants.

 

6.15.1
      Total Leverage Ratio. Tested as of the last day of each Test Period (beginning with the Test Period ending
on the last day of the first Fiscal Quarter ending after the Original Closing Date), the Borrowers shall not permit the Total Leverage
Ratio to exceed 3.00:1.00; provided that the Total Leverage Ratio under this Section 6.15.1 for purposes of the Test Period (a)
ending on March 31, 2017, shall be calculated based on the financial results reflected in (i) the
consolidated balance sheet of Parent Holdings Guarantor and its Subsidiaries as of March 31, 2017 and (ii) the statements of income and
cash flows of Parent Holdings Guarantor and its Subsidiaries for the two consecutive Fiscal Quarter period ending on March 31, 2017 multiplied
by two (2) and (b) ending on June 30, 2017, shall be calculated based on the financial results reflected in (i) the consolidated balance
sheet of Parent Holdings Guarantor and its Subsidiaries as of June 30, 2017 and (ii) the statements of income and cash flows of Parent
Holdings Guarantor and its Subsidiaries for the three consecutive Fiscal Quarter period ending on June 30, 2017 multiplied by four thirds
(4/3), in each case, for the avoidance of doubt, subject to any adjustments permitted under this Agreement.

 

6.15.2
      Minimum Fixed Charge Coverage Ratio. Tested as of the last day of each Test Period (beginning with the
Test Period ending on the last day of the first Fiscal Quarter ending after the Original Closing Date), the Borrowers shall not permit
the Fixed Charge Coverage Ratio to be less than 1.20:1.00; provided that the Fixed Charge Coverage Ratio under this Section 6.15.2
for purposes of the Test Period (a) ending on March 31, 2017, shall be calculated based on the financial results reflected in the statements
of income and cash flows of Parent Holdings Guarantor and its Subsidiaries for the two consecutive Fiscal Quarter period ending on March
31, 2017 multiplied by two (2) and (b) ending on June 30, 2017, shall be calculated based on the financial results reflected in the statements
of income and cash flows of Parent Holdings Guarantor and its Subsidiaries for the three consecutive Fiscal Quarter period ending on
June 30, 2017 multiplied by four thirds (4/3), in each case, for the avoidance of doubt, subject to any adjustments permitted under this
Agreement.

 

6.15.3
      Minimum Fixed Charge Coverage Ratio (All Cash Dividends). Tested as of the last day of each Test Period
(beginning with the Test Period ending on the last day of the first Fiscal Quarter ending after the Original Closing Date), the Borrowers
shall not permit the Fixed Charge Coverage Ratio (All Cash Dividends) to be less than 1.05:1.00; provided that the Fixed Charge
Coverage Ratio (All Cash Dividends) under this Section 6.15.3 for purposes of the Test Period (a) ending on March 31, 2017, shall be
calculated based on the financial results reflected in the statements of income and cash flows of Parent Holdings Guarantor and its Subsidiaries
for the two consecutive Fiscal Quarter period ending on March 31, 2017 multiplied by two (2) and (b) ending on June 30, 2017, shall be
calculated based on the financial results reflected in the statements of income and cash flows of Parent Holdings Guarantor and its Subsidiaries
for the three consecutive Fiscal Quarter period ending on June 30, 2017 multiplied by four thirds (4/3), in each case, for the avoidance
of doubt, subject to any adjustments permitted under this Agreement.

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Section
6.16.      Payment of Management Fees. The Loan Parties shall not pay any management fees, other than quarterly
management fees payable to GPB Prime or one or more designated Affiliates of GPB Prime once each Fiscal Quarter, in an aggregate amount
not to exceed two percent (2%) of invested capital in the aggregate in any Fiscal Year. Management fees may not be paid in cash upon
the occurrence and during the continuance of a Default or an Event of Default, or if, immediately after giving effect to the payment
of any such management fees, a Default or an Event of Default would result. Payment of management
fees shall also be subject to the terms and conditions set forth in the Management Services Subordination Agreements. For the avoidance
of doubt, in the event that such fees are paid or intended to be paid to a designated Affiliate of GPB Prime, then, together with GPB
Prime, each such Affiliate of GPB Prime shall be or have become a party to the Management Services Subordination Agreements (by execution
thereof at Closing, or by joinder thereto) prior to any receipt of such management fees by any such Affiliate.

 

ARTICLE
VII

 

EVENTS
OF DEFAULT

 

Section
7.01.      Events of Default. The occurrence of any of the following events or conditions shall constitute
an Event of Default.

 

7.1.1
      Failure to Pay. The failure of the Loan Parties to pay (a) all or any amount or installment of principal
due upon the Loans (whether scheduled, by acceleration, or as otherwise required by the terms of the Credit Documents), or (b) any interest
or fees upon any Loan within three (3) days after the due date thereof, or (c) any other amount payable hereunder or under any Credit
Document within five (5) days after the due date thereof.

 

7.1.2
      Violation of Covenants. The failure of any Loan Party to (a) perform, observe, and comply with any covenant,
agreement, or condition and contained in Sections 5.04, 5.08.8, 5.13, 5.19 or Article 6 of this Agreement (but subject, in the case of
the financial covenants set forth in Section 6.15, to the terms and conditions set forth in Section 7.02 below) or (b) perform, observe,
and comply with any covenant, agreement, or condition (to the extent not specified above in Sections
7.01.1 or 7.01.2(a)) and contained in any Credit Document and such failure continues for a period of thirty (30) consecutive calendar
days after receipt by such Borrower of written notice thereof from the Administrative Agent.

 

7.1.3
      Representation or Warranty. Any representation or warranty made by the Borrowers or by any other Loan
Party herein or in any Credit Document, any Collateral Information Certificate, or in any Compliance Certificate or other document or
instrument required to be delivered under any Credit Document from time to time to any of the Credit Parties shall be false, incorrect,
or misleading in any material respect when made or deemed made.

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7.1.4
      Cross-Default. Any Borrower or any other Loan Party (a) fails to make any payment when due (whether by
scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness or guarantee (other than
Indebtedness hereunder) having an aggregate outstanding principal amount of more than the Threshold Amount, (b)
fails to observe or perform any other agreement or condition relating to any such Indebtedness or guarantee or contained in any instrument
or agreement evidencing, securing or relating thereto, or any other event occurs (other than, with respect to Indebtedness consisting
of Swap Obligations or other hedging arrangements, termination events or equivalent events pursuant to the terms of such Swap Obligations
or other hedging arrangements), the effect of which default or other event is to cause, or to permit the holder or holders of such Indebtedness
or the beneficiary or beneficiaries of such guarantee (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries)
to cause (without regard to any existing intercreditor arrangements), with the giving of notice if required, such Indebtedness to be
demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase,
prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity or (c) any termination event or equivalent event
occurs pursuant to the terms of any Indebtedness having an aggregate outstanding principal amount of more than the Threshold Amount and
consisting of Swap Obligations or other hedging arrangements that could reasonably be expected to have a Material Adverse Effect
or that occurs as a result of any default thereunder by a Loan Party, the effect of which event is to cause, or to permit the holder
or holders of such Indebtedness to cause (without regard to any existing intercreditor arrangements), with the giving of notice if required,
such Indebtedness to be demanded or to become due or to be redeemed (automatically or otherwise); provided that (A) such failure
is unremedied and is not waived by the holders of such Indebtedness prior to any termination of the Commitments or acceleration of the
Loans pursuant to Section 7.02 and (B) this clause 7.01.4(b) shall not apply to secured Indebtedness that becomes due as a result of
the voluntary sale or transfer of the property or assets securing such Indebtedness, if such sale or transfer is permitted hereunder
and under the documents providing for such Indebtedness.

 

7.1.5
      Judgments. There is entered against the Loan Parties a final judgment for the payment of money aggregating
for all Loan Parties in excess of the Threshold Amount (to the extent not paid or covered by insurance or indemnities as to which the
insurer or indemnity has been notified of such judgment or order and the applicable insurance company or indemnity has not denied coverage
thereof) and such judgment shall not have been satisfied, vacated, discharged or stayed or bonded pending an appeal for a period of sixty
(60) consecutive calendar days;

 

7.1.6
      Levy by Judgment Creditor. Any writ or warrant of attachment or execution or similar process is issued
or levied against all or any material part of the property of the Loan Parties, taken as a whole, and is not released, vacated or fully
bonded within thirty (30) calendar days after its issue or levy. Any writ of garnishment with respect to an amount in excess of the Threshold
Amount is served on the Administrative Agent or any other Credit Party relating to any of the accounts of the Borrowers or of any of
the other Loan Parties maintained with the Administrative Agent or with any other Credit Party.

 

7.1.7
      Involuntary Insolvency Proceedings. The institution of involuntary Insolvency Proceedings against any
Borrower or any other Loan Party and the failure of any such Insolvency Proceedings to be dismissed before the earliest to occur of (a)
the date which is sixty (60) days after the institution of such Insolvency Proceedings and (b) the entry of any order for relief in the
Insolvency Proceeding or any order adjudicating any Borrower or any other Loan Party insolvent.

 

7.1.8
      Voluntary Insolvency Proceedings. The commencement by any Borrower or by any other Loan Party of Insolvency
Proceedings.

 

7.1.9
      Attempt To Terminate Or Limit Guaranties. The receipt by a Credit Party of notice from a Guarantor that
such Guarantor is attempting to terminate or limit any portion of its obligations under the Guaranty Agreement or [*****] Guaranty Agreement,
as applicable (other than in connection with (x) repayment in full of the Obligations (other than contingent indemnification obligations)
and termination of the Commitments or (y) a permitted Disposition under this Agreement of such Guarantor).

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7.1.10
      ERISA. (i) An ERISA Event occurs with respect to a Pension Plan, Multiemployer Plan or Multiple Employer
Plan which has resulted or could reasonably be expected to result in liability of any Borrower under Title IV of ERISA to the Pension
Plan, Multiemployer Plan, Multiple Employer Plan or the PBGC in an aggregate amount which could reasonably be expected to result in a
Material Adverse Effect, or (ii) any Loan Party or any ERISA Affiliate fails to pay when due, after the expiration of any applicable
grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan
in an aggregate amount which could reasonably be expected to result in a Material Adverse Effect.

 

7.1.11
      Invalidity of Credit Documents. (i) Any material provision of any Credit Document, at any time after
its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder, satisfaction in full of all
the Obligations (other than contingent indemnification obligations) or as a result of acts or omissions by the Administrative Agent or
any Lender, ceases to be in full force and effect; or (ii) any Security Document shall for any reason cease to create a valid security
interest in a material portion of the Collateral purported to be covered thereby or the security interest in a material portion of the
Collateral shall for any reason cease to be a perfected security interest with the priority provided therefor in such Security Document
subject only to Permitted Encumbrances, except to the extent that any such loss of perfection or priority results from the failure of
the Administrative Agent to maintain possession of certificates actually delivered to it representing securities pledged under the Security
Documents or to file Uniform Commercial Code financing statements or continuation statements and except as to Collateral consisting of
Real Property to the extent that such losses are covered by a lender’s title insurance policy and such insurer has not denied coverage.

 

7.1.12
      Franchise Agreements. Any material Franchise Agreement or Framework Agreement is revoked, terminated
or suspended and a replacement for such Franchise Agreement or Framework Agreement is not entered into within 30 days of such termination,
revocation or suspension (other than any Franchise Agreement or Framework Agreement of Saco Auto Holdings – FM, LLC in connection
with its Mazda Franchise to the extent terminated within 12 months following the Original Closing Date); provided, however, that
if after giving effect to any such revocation, termination or suspension of any Franchise Agreement or Framework Agreement, GPB Prime
and its Subsidiaries shall be in compliance with, after giving pro forma effect to the exclusion of the portion of Consolidated
EBITDA, fixed charges and Indebtedness attributable to such revoked, terminated or suspended operation, the financial covenants set forth
in Section 6.15, such revocation, termination or suspension shall not, by itself, be considered an Event of Default under this Section
7.01.12.

 

7.1.13
      Out of Balance. An audit performed by the Administrative Agent pursuant to the provisions of Section
5.13 reveals that the aggregate outstanding Floor Plan Committed Loans in respect of any New Vehicles, Used Vehicles, Service Loaner
Vehicles or Auction Vehicles of any Floor Plan Borrower is Out of Balance under Section 2.01.11, and such Out of Balance condition either
(i) could reasonably be expected to have a Material Adverse Effect or (ii) continues for thirty (30) calendar days following notice from
the Administrative Agent to the Borrower Representative of such Out of Balance condition.

 

 7.1.14
      Change of Control. The occurrence of a Change of Control.

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Section
7.02.     Equity Cure. In the event that the Borrowers fail to comply with the requirements of any financial
covenant set forth in Sections 6.15.1 through 6.15.3 of this Agreement, until the tenth (10th) calendar day after delivery of the related
Compliance Certificate, GPB Prime shall have the right to issue Permitted Cure Securities (or cause Parent Holdings Guarantor to issue
Permitted Cure Securities) for cash or otherwise receive cash contributions to the capital of GPB Prime (or Parent Holdings Guarantor,
as the case may be) and, in each case, apply the amount of the proceeds thereof to increase Consolidated EBITDA with respect to such
applicable Fiscal Quarter (the “Cure Right”); provided, that (a) such proceeds are actually received by GPB
Prime (or Parent Holdings Guarantor, as the case may be) no later than ten (10) calendar days after the date on which financial statements
are required to be delivered with respect to such Fiscal Quarter hereunder, (b) such proceeds do not exceed the aggregate amount necessary
to cure (by addition to Consolidated EBITDA) (the “Cure Amount”) such Event of Default under Sections 6.15.1 through
6.15.3 for such period, (c) the Cure Right shall not be exercised more than four times during the term of the Credit Facilities and (d)
in each period of four (4) Fiscal Quarters, there shall be at least two (2) consecutive Fiscal Quarters during which the Cure Right is
not exercised. If, after giving effect to the foregoing pro forma adjustment (but not giving pro forma effect to any netting
of cash on account of the Cure Amount (but, for the avoidance of doubt, giving effect to the repayment of Indebtedness using the proceeds
of such Cure Amount), the Borrowers are in compliance with the financial covenants set forth in Sections 6.15.1 through 6.15.3, the Borrowers
shall be deemed to have satisfied the requirements of such Sections as of the relevant date of determination with the same effect as
though there had been no failure to comply on such date, and the applicable breach or default of such Sections 6.15.1 through 6.15.3
that had occurred shall be deemed cured for purposes of this Agreement. The parties hereby acknowledge that this Section 7.02 may not
be relied on for purposes of calculating any financial ratios other than as applicable to Sections 6.15.1 through 6.15.3 and shall not
result in any adjustment to any amounts other than the amount of the Consolidated EBITDA referred to in the immediately preceding sentence.

 

ARTICLE
VIII

 

RIGHTS
AND REMEDIES OF CREDIT PARTIES

ON
THE OCCURRENCE OF AN EVENT OF DEFAULT

 

Upon the
occurrence of an Event of Default and during the continuance thereof:

 

Section
8.01.      Credit Parties’ Specific Rights And Remedies. In addition to all other rights and remedies
provided by applicable Laws and the terms of the Credit Documents, upon the occurrence and during the continuance of any Event of Default,
the Administrative Agent may, on behalf of the Lenders and shall, at the direction of the Required Lenders (a) declare the Commitments
of each Lender to advance proceeds of the Loans to be terminated, (b) accelerate and call immediately due and payable all or any part
of the Obligations, (c) seek specific performance or injunctive relief to enforce performance of the undertakings, duties, and agreements
provided in the Credit Documents, whether or not a remedy at Law exists or is adequate, (d) exercise any rights of a secured creditor
under applicable Laws against the Collateral, including (i) the right to take possession of the Collateral without the use of judicial
process or hearing of any kind, (ii) the right to require the Loan Parties to assemble the Collateral at such place as the Administrative
Agent may specify, and (iii) the right to sell the Collateral, in whole or in part, at either private or public sale, and (e) seek the
appointment of a keeper or receiver for any or all of the Loan Parties and/or the assets of any or all of the Loan Parties, in each case,
subject to any applicable restrictions and limitations contained in any Franchise Agreement, Framework Agreement or similar agreement
between a Subsidiary and a Manufacturer. For the avoidance of doubt, the availability and exercise of default remedies and rights under
any Swap Agreements shall be governed by the default provisions of such Swap Agreement.

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Section 8.02.   Automatic Acceleration. Upon
the occurrence and during the continuance of an Event of Default as described in Sections 7.01.7 or 7.01.8 of this Agreement, the Commitments
shall automatically terminate, the Obligations shall be automatically accelerated and due and payable without any notice, demand or action
of any type on the part of the Credit Parties.

 

Section 8.03.   Consent to Appointment
of Receiver. Each Borrower irrevocably consents to the appointment of a keeper or receiver upon the request of the Administrative
Agent during any continuing Event of Default for it and for any or all of its business affairs, business operations, and assets, which
keeper or receiver shall be authorized and deemed empowered to have and exercise the broadest powers permitted or available under applicable
Laws to operate, manage, conserve, liquidate and sell any or all of its assets; provided, however, that such keeper or
receiver shall have no authority without the prior written consent of the Required Lenders to release, discharge or otherwise negate
any Liens securing the Obligations or to sell any assets of the Borrowers free and clear of any Liens securing the Obligations.

 

Section 8.04.   Remedies Cumulative. The
rights and remedies provided in this Agreement and in the other Credit Documents or otherwise under applicable Laws shall be cumulative
and the exercise of any particular right or remedy shall not preclude the exercise of any other rights or remedies in addition to, or
as an alternative of, such right or remedy. The Loan Parties hereby acknowledge and agree that from and after any Event of Default,
the Administrative Agent on behalf of the Secured Parties may seek one or more actions, claims and remedies hereunder or under any other
Credit Document, and seek any such actions, claims and remedies concurrently, successively or in any manner the Administrative Agent
or the Required Lenders (as applicable) may choose, and the Borrowers hereby expressly acknowledge and agree that in no event shall the
election of the Law of New York as governing law, or agreement to jurisdiction and/or venue in the State of New York be interpreted (by
the parties hereto or by any court in any jurisdiction, whether in the Governing State or elsewhere) to so restrict or prohibit any such
actions by the Administrative Agent on behalf of the Secured Parties, the Loan Parties hereby waiving the requirements and protections
of such laws to the maximum extent permitted by applicable Laws in order to give effect to this sentence.

 

Section 8.05.   Application of Funds. After
the exercise of remedies (or after the Loans have automatically become immediately due and payable), any amounts received on account
of the Obligations shall be applied by the Administrative Agent in the following order:

 

8.5.1     First,
to the payment of that portion of the Obligations constituting fees, indemnities, expenses, reimbursements, and other amounts (including
Credit Party Expenses) payable to the Administrative Agent and to that part of the Obligations owed to any of the Credit Parties or to
Affiliates of any of the Credit Parties for Cash Management Products, as described in item (c) in the definitions of [*****] Obligations
and Non-[*****] Obligations, respectively.

 

8.5.2     Second,
to the payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest)
payable to the Lenders (including Credit Party Expenses), ratably among the Lenders.

 

8.5.3     Third,
to the payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans and on other Obligations, ratably
among the Lenders in proportion to the respective amounts described in this clause Third payable to them.

 

8.5.4     Fourth,
to the payment of that portion of the Obligations constituting unpaid principal of the Loans, payment of or to Cash Collateralize any
obligations under any Swap Agreements, and payment or reimbursement to the respective LC Bank on account of any unreimbursed drawings
under, or to Cash Collateralize, the aggregate undrawn amount of, any Letters of Credit (subject, in the case of the Letters of Credit,
to the maximum amount thereof set forth in the definition thereof), ratably among the Lenders, the respective Swap Providers, and the
respective LC Banks in proportion to the respective amounts described in this clause Fourth held by them. 

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8.5.5      Last,
the balance, if any, after all of the Obligations have been paid in full (other than contingent indemnification obligations), to the
Borrowers or as otherwise required by applicable Laws.

 

Amounts used to Cash Collateralize the Swap Agreements
pursuant to clause Fourth above shall be applied to payment obligations under the Swap Agreements as they occur. If any amounts
remain on deposit as Cash Collateral after all Swap Agreements have been terminated, such remaining amount shall be applied to other
Obligations, if any, in the order set forth above.

 

Notwithstanding the foregoing, Obligations arising
under any Cash Management Agreement and Swap Agreements secured by the Credit Documents shall be excluded from the application described
above if the Administrative Agent has not received written notice thereof, together with such supporting documentation as the Administrative
Agent may request, from the applicable Cash Management Bank or Swap Provider, as the case may be. Each Cash Management Bank or Swap Provider
not a party to the Credit Agreement that has given the notice contemplated by the preceding sentence shall, by such notice, be deemed
to have acknowledged and accepted the appointment of the Administrative Agent pursuant to the terms of Article 9 hereof for itself and
its Affiliates as if a “Lender” party hereto. Excluded Swap Liabilities with respect to any Loan Party shall not be paid
with amounts received from such Loan Party, but appropriate adjustments shall be made with respect to payments from other Loan Parties
to preserve the allocation to Obligations otherwise set forth above in this Section.

 

ARTICLE IX

 

THE ADMINISTRATIVE AGENT

 

Section 9.01.   Appointment. Each
of the Lenders hereby irrevocably designates and appoints M&T Bank as Administrative Agent under this Agreement and the other Credit
Documents and each Lender authorizes M&T Bank as its respective Administrative Agent to take such action on its behalf under the
provisions of this Agreement and the other Credit Documents and to exercise such powers and perform such duties as are expressly delegated
to the Administrative Agent by the terms of this Agreement and such other Credit Documents, together with such other powers as are reasonably
incidental thereto. The provisions of this Article 9 are solely for the benefit of the Secured Parties and, except with respect to the
first sentence of Section 9.04, the second sentence of Section 9.05 and Section 9.10, no Loan Party shall have any rights as a third
party beneficiary of any of such provisions. It is understood and agreed that the use of the term “agent” herein or in any
other Credit Document (or any other similar term) with reference to the Administrative Agent is not intended to connote any fiduciary
or other implied (or express) obligations arising under agency doctrine of any applicable Laws. Instead, such term is used as a matter
of market custom, and is intended to create or reflect only an administrative relationship between contracting parties. 

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Section 9.02.   Exculpatory
Provisions.

 

9.2.1     No
Fiduciary, Discretionary or Implied Duties. The Administrative Agent shall not have any duties or obligations except those expressly
set forth herein and in the other Credit Documents and its duties hereunder shall be administrative in nature. Without limiting the generality
of the foregoing, the Administrative Agent:

 

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

 

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

 

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

 

9.2.2     No
Liability for Certain Actions. The Administrative Agent shall not be liable for any action taken or not taken by it (a) with the
consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the
Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections 8.01 and 10.01 or
(b) in the absence of its own gross negligence or willful misconduct, as determined by a court of competent jurisdiction by final and
non-appealable judgment.

 

9.2.3     Knowledge. The
Administrative Agent shall be deemed not to have knowledge of any Default or Event of Default or of any event, impairment, or change,
circumstances or conditions (financial or otherwise) which has had a Material Adverse Effect, unless and until written notice describing
such Default, Event of Default or Material Adverse Effect, is given to the Administrative Agent in writing by a Credit Party or by a
Loan Party.

 

9.2.4     No Duty to
Inquire. The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (a) any statement, warranty
or representation made in or in connection with this Agreement or any other Credit Document, (b) the contents of any certificate, report
or other document delivered hereunder or thereunder or in connection herewith or therewith, (c) the performance or observance of any
of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default or Event of Default,
(d) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Credit Document or any other agreement, instrument
or document or (e) the satisfaction of any condition set forth in Article 4 or elsewhere herein, other than to confirm receipt of items
expressly required to be delivered to the Administrative Agent.

 

Section 9.03.   Reliance by Administrative
Agent. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice,
request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet
website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper
Person. The Administrative Agent also may rely upon any statement made to it whether written or oral and believed by it to have been
made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder
to the making of a Loan, that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that
such condition is satisfactory to such Lender unless the Administrative Agent shall have received notice to the contrary from such Lender
prior to the making of such Loan. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent
accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the
advice of any such counsel, accountants or experts. 

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Section 9.04.   Delegation of Duties. The
Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Credit Document
by or through any one or more sub-agents appointed by the Administrative Agent, provided, however, that any such sub-agent receiving
payments from the Loan Parties shall be a “U.S. person” and a “financial institution” within the meaning of Treasury
Regulations Section 1.1441-1. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its
rights and powers by or through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such
sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities
in connection with the syndication of the Credit Facilities provided for herein as well as activities as Administrative Agent. The Administrative
Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction
determines in a final and non-appealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in
the selection of such sub-agents.

 

Section 9.05.   Resignation of Administrative
Agent. The Administrative Agent may at any time give notice of its resignation to the Credit Parties and to the Borrowers. Upon
receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrowers, to appoint
a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United
States who shall be a “U.S. person” and a “financial institution” within the meaning of Treasury Regulations
Section 1.1441-1. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment
within thirty (30) days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed
by the Required Lenders (the “Resignation Effective Date”)), then the retiring Administrative Agent may (but shall
not be obligated to) on behalf of the Lenders, appoint a successor Administrative Agent meeting the qualifications set forth above; provided
that in no event shall any successor Administrative Agent be a Defaulting Lender. Whether or not a successor has been appointed,
such resignation shall become effective in accordance with such notice on the Resignation Effective Date. With effect from the Resignation
Effective Date, (a) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other
Credit Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of the Lenders under
any of the Credit Documents, the retiring Administrative Agent shall continue to hold such collateral security until such time as a successor
Administrative Agent is appointed) and (b) except for any indemnity payments owed to the retiring Administrative Agent, all payments,
communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each
Lender directly, until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided for above. Upon
the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested
with all of the rights, powers, privileges and duties of the retiring Administrative Agent (other than any rights to indemnity payments
owed to the retiring Administrative Agent), and the retiring Administrative Agent shall be discharged from all of its duties and obligations
hereunder or under the other Credit Documents. The fees payable by the Borrowers to a successor Administrative Agent shall be the same
as those payable to its predecessor unless otherwise agreed between the Borrowers and such successor. After the retiring Administrative
Agent’s resignation or removal hereunder and under the other Credit Documents, the provisions of this Article and the provisions
of Section 10.08 of this Agreement shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and
their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Administrative
Agent was acting as Administrative Agent. 

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Section 9.06.   Non-Reliance on
Administrative Agent and Other Lenders. Each Lender acknowledges that it has, independently and without reliance upon the Administrative
Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made
its own credit analysis and decision to enter into this Agreement. Each Lender acknowledges that it will, independently and without reliance
upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall
from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement,
any other Credit Document or any related agreement or any document furnished hereunder or thereunder.

 

Section 9.07.   Administrative Agent
May Hold Collateral For Lenders and Others. The Lenders and the Loan Parties acknowledge that any Security Documents relating to
the Loans, the Obligations, or the Collateral, including all of such documents filed in the public records in order to evidence or perfect
the Liens granted in the Credit Documents, may name only the Administrative Agent, as agent for the Lenders as the secured party, mortgagee,
beneficiary, or as lienholder. The Lenders and the Loan Parties authorize the Administrative Agent to hold any or all of the Liens in
and to the Collateral as the agent for the benefit of the Secured Parties, M&T Bank, the Swap Providers, or any of their respective
Affiliates, as applicable under this Agreement. Such Swap Providers and Affiliates which are party hereto, by their acceptance of the
benefits of this Agreement and/or any other Security Documents or Credit Documents, also hereby authorize the Administrative Agent to
hold the Liens in and to the Collateral as their administrative agent.

 

Section 9.08.   The Administrative
Agent In Its Individual Capacity. The Person serving as the Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term
 “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include
the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its
Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity
for and generally engage in any kind of business with any Loan Party or any Subsidiary or other Affiliate thereof as if such Person were
not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

 

Section 9.09.   Administrative Agent
May File Proofs of Claim. In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding
relative to any Loan Party, the Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable
as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on
the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise (a) to file and prove a claim for the
whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid
and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent
(including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent
and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under Sections 2.06 and 10.08)
allowed in such judicial proceeding; and (b) to collect and receive any monies or other property payable or deliverable on any such claims
and to distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that
the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any
amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel,
and any other amounts due the Administrative Agent under Sections 2.06 and 10.08. Nothing contained herein shall be deemed to (a) permit
the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement,
adjustment or composition affecting the Obligations or the rights of any Lender, or (b) authorize the Administrative Agent to vote in
respect of the claim of any Lender in any such proceeding. 

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The Secured Parties hereby irrevocably authorize the
Administrative Agent, at the direction of the Required Lenders, to credit bid all or any portion of the Obligations and in such manner
purchase (either directly or through one or more acquisition vehicles) all or any portion of the Collateral (a) at any sale thereof conducted
under the provisions of the Bankruptcy Code, including under Sections 363, 1123 or 1129 of the Bankruptcy Code, or any similar Laws in
any other jurisdictions to which a Loan Party is subject, (b) at any other sale or foreclosure or acceptance of Collateral in lieu of
debt conducted by (or with the consent or at the direction of) the Administrative Agent (whether by judicial action or otherwise) in
accordance with any applicable Law. In connection with any such credit bid and purchase, the Obligations owed to the Secured Parties
shall be entitled to be, and shall be, credit bid on a ratable basis (with Obligations with respect to contingent or unliquidated claims
receiving contingent interests in the acquired assets on a ratable basis that would vest upon the liquidation of such claims in an amount
proportional to the liquidated portion of the contingent claim amount used in allocating the contingent interests) in the asset or assets
so purchased (or in the Equity Interests or debt instruments of the acquisition vehicle or vehicles that are used to consummate such
purchase). In connection with any such bid (i) the Administrative Agent shall be authorized to form one or more acquisition vehicles
to make a bid, (ii) to adopt documents providing for the governance of the acquisition vehicle or vehicles (provided that any
actions by the Administrative Agent with respect to such acquisition vehicle or vehicles, including any disposition of the assets or
Equity Interests thereof shall be governed, directly or indirectly, by the vote of the Required Lenders, irrespective of the termination
of this Agreement and without giving effect to the limitations on actions by the Required Lenders contained in Section 10.01 of this
Agreement), (iii) the Administrative Agent shall be authorized to assign the relevant Obligations to any such acquisition vehicle pro
rata by the Lenders, as a result of which each of the Lenders shall be deemed to have received a pro rata portion of any Equity
Interests and/or debt instruments issued by such an acquisition vehicle on account of the assignment of the Obligations to be credit
bid, all without the need for any Secured Party or acquisition vehicle to take any further action, and (iv) to the extent that Obligations
that are assigned to an acquisition vehicle are not used to acquire Collateral for any reason (as a result of another bid being higher
or better, because the amount of Obligations assigned to the acquisition vehicle exceeds the amount of debt credit bid by the acquisition
vehicle or otherwise), such Obligations shall automatically be reassigned to the Lenders pro rata and the Equity Interests and/or
debt instruments issued by any acquisition vehicle on account of the Obligations that had been assigned to the acquisition vehicle shall
automatically be cancelled, without the need for any Secured Party or any acquisition vehicle to take any further action.

 

Section 9.10.   Collateral and Guaranty
Matters. The Lenders irrevocably authorize the Administrative Agent, at its option and in its discretion, (a) to release any
Lien on any property granted to or held by the Administrative Agent under any Credit Document (i) upon the termination of all of the
Commitments and payment in full of all Obligations (other than contingent indemnification obligations), (ii) that
is sold or to be sold as part of or in connection with any sale permitted hereunder or under any other Credit Document, or (iii) subject
to Section 10.01, if approved, authorized or ratified in writing by the Required Lenders; (b) to subordinate any Lien on any property
granted to or held by the Administrative Agent under any Credit Document to the holder of any Lien on such property that is permitted
under clause (h) of the definition of Permitted Encumbrance; and (c) to release any Guarantor from its obligations under its respective
Guaranty if such Person ceases to be a Subsidiary or becomes an Excluded Subsidiary as a result of a transaction permitted hereunder.
Upon the request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s
authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations
under the Guaranty pursuant to this Section 9.10. The Administrative Agent shall not be responsible for or have a duty to ascertain or
inquire into any representation or warranty regarding the existence, value or collectability of the Collateral, the existence, priority
or perfection of the Administrative Agent’s Lien thereon, or any certificate prepared by any Loan Party in connection therewith,
nor shall the Administrative Agent be responsible or liable to the Lenders for any failure to monitor or maintain any portion of the
Collateral. 

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Section 9.11.   No Reliance on Administrative
Agent’s Customer Identification Program. Each Lender acknowledges and agrees that neither such Lender, nor any of its Affiliates,
participants or assignees, may rely on the Administrative Agent to carry out such Lender’s, Affiliate’s, participant’s
or assignee’s customer identification program, or other obligations required or imposed under or pursuant to the USA Patriot Act
or the regulations thereunder, including the regulations contained in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP
Regulations”), or any other Anti-Terrorism Law, including any programs involving any of the following items relating to or
in connection with any Loan Party, its Affiliates or its agents, this Agreement, any other Credit Documents or the transactions hereunder
or contemplated hereby: (a) any identity verification procedures, (b) any record-keeping, (c) comparisons with government lists, (d)
customer notices or (e) other procedures required under the CIP Regulations or such other laws

 

Section 9.12.   No Other Duties,
Etc. Notwithstanding anything to the contrary herein, no Arranger listed on the cover page of this Agreement shall have any
powers, duties or responsibilities under this Agreement or any of the other Credit Documents, except in its capacity, as applicable,
as the Administrative Agent or a Lender.

 

ARTICLE X

 

MISCELLANEOUS

 

Section 10.01. Waivers and Amendments. No amendment
or waiver of any provision of this Agreement or any other Credit Document, and no consent to any departure by the Borrowers or by any
other Loan Party or Subsidiary therefrom, shall be effective unless in writing signed by the Required Lenders and the Borrowers or the
applicable Loan Party, as the case may be, and acknowledged by the Administrative Agent, and each such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given; provided, however, that no such amendment,
waiver or consent shall:

 

(a)         waive
any condition set forth in Section 4.01.1 without the written consent of each Lender;

 

(b)         decrease
the principal amount of any Loans; reduce the amount of any interest or fees, extend the final maturity of any of the Loans, or postpone
the scheduled payment of any principal, interest or fees, without the written consent of each Lender directly and adversely affected
thereby; provided that, notwithstanding the foregoing, any change amendment, waiver or modification to any financial ratio or
any definition related thereto (solely in respect of the use of such defined terms in the applicable financial ratio) shall be permitted
if consented to in writing by the Required Lenders; provided, further, that only the consent of the Required Lenders shall
be necessary to amend the definition of “Default Rate” or to waive any obligation of the Borrowers to pay interest at the
Default Rate;

 

(c)         extend
or increase any Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 8.01) without the written consent
of such Lender;

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(d)       change
Section 8.05 in a manner that would alter the pro rata sharing of payments required thereby without the written consent of each
Lender directly and adversely affected thereby;

 

(e)         change
any provision of this Section or reduce the amount of Commitments specified in the definition of “Required Lenders,” without
the written consent of each Lender; or

 

(f)          release
all or substantially all of the value of the Collateral (other than in connection with permitted asset sales or as otherwise specifically
authorized by the terms of this Agreement or any other Credit Document) without the written consent of each Lender; and,

 

provided further, that (i) no amendment, waiver
or consent shall, unless in writing and signed by M&T Bank (or any successor to M&T Bank’s role as provider of M&T
Advances) in addition to the Lenders required above, affect the rights or duties of M&T Bank (or such successor) under the M&T
Advances pursuant to this Agreement; (ii) no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent
in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under this Agreement or any other
Credit Document; (iii) the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties
thereto and (iv) any waiver, amendment or modification of this Agreement that by its terms affects
the rights or duties under this Agreement of Lenders holding Loans or Commitments of a particular Class (but not the Lenders holding
Loans or Commitments of any other Class) may be effected by an agreement or agreements in writing entered into by the Borrowers and the
requisite percentage in interest of the affected Class of Lenders that would be required to consent thereto under this Section 10.01
if such Class of Lenders were the only Class of Lenders hereunder at the time.

 

Notwithstanding anything to the contrary herein, no
Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver
or consent which by its terms requires the consent of all Lenders or each affected Lender may be effected with the consent of the applicable
Lenders other than Defaulting Lenders), except that (x) the Commitments of any Defaulting Lender may not be increased or extended without
the consent of such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender
that by its terms affects any Defaulting Lender more adversely than other affected Lenders shall require the consent of such Defaulting
Lender.

 

Section 10.02.  Successors
and Assigns.

 

10.2.1    Successors
and Assigns Generally. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns permitted hereby, except that, other than as provided in Section 6.04, no Borrower may assign
or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and of
each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (a) to an Eligible Assignee
in accordance with the provisions of Section 10.02.2; (b) by way of participation in accordance with the provisions of Section 10.03,
or (c) by way of pledge or assignment of a security interest authorized by Section 10.04 (and any other attempted assignment, transfer
or pledge by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer
upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent
provided in Section 10.03 of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative
Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

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10.2.2   Assignments
by Lenders. Each Lender may assign to one or more Eligible Assignees all or any portion of such Lender’s interests, rights
and obligations set forth in this Agreement or the other Credit Documents, including all or a portion of its Commitments and the Loans
(including for purposes hereof, its participations in M&T Advances) provided that (a) an administrative fee in the amount of Five
Thousand Dollars ($5,000.00) is paid to the Administrative Agent by either the assigning Lender or the Eligible Assignee in connection
with the assignment (unless waived by the Administrative Agent), (b) if less than all of the assigning Lender’s Commitments and
Loans is to be assigned, the amount of the Commitments and Loans so assigned shall be for an aggregate principal amount of not less than
Five Million Dollars ($5,000,000.00), (c) except with respect to M&T Bank’s rights and obligations
in the M&T Advances, each partial assignment by a Lender shall be made as an assignment of a proportionate amount of all of the assigning
Lender’s rights and obligations under this Agreement with respect to the Loans and Commitments assigned, (d) the parties to each
such assignment shall execute and deliver an Assignment And Assumption to the Administrative Agent, for its acceptance, and (e) such
Assignment And Assumption does not require the filing of a registration statement with the Securities And Exchange Commission or require
the Loans or the Notes to be qualified in conformance with the requirements imposed by any blue sky Laws or other Laws of any state.
Upon such execution, delivery, acceptance and recording, from and after the effective date specified in each Assignment And Assumption,
which effective date is at least five (5) Business Days after the execution thereof, (a) the Assignee thereunder shall be a party hereto
and, to the extent provided in such Assignment And Assumption, have the rights, duties, and obligations of a Lender hereunder, and (b)
the assigning Lender thereunder shall, to the extent provided in such Assignment And Assumption, be released from its duties and obligations
under this Agreement but shall continue to be entitled to all indemnification and reimbursement rights provided to the Lenders by the
Borrowers pursuant to any of the Credit Documents with respect to facts, events, and circumstances occurring prior to the effective date
of such assignment. By executing and delivering an Assignment And Assumption, the assigning Lender thereunder and the Assignee thereunder
confirm to and agree with each other and the other parties to this Agreement the facts and matters as set forth in such Assignment And
Assumption. Lenders may only assign their interests in the Commitments, the Loans, and Credit Documents to Eligible Assignees. Any assignment
or transfer by a Lender of rights or obligations under the Credit Documents that does not comply with this Section shall be treated for
purposes of the Credit Documents as a sale by such Lender of a participation in such rights and obligations in accordance with Section
10.03 of this Agreement. Except to the extent otherwise expressly agreed in writing by the affected parties, no assignment by a Defaulting
Lender will constitute a waiver or a release of any claim of any party hereunder arising from that Lender having been a Defaulting Lender.

 

10.2.3   Certain
Additional Payments. In connection with any assignment of rights and obligations of any Defaulting Lender pursuant to Section 10.02.2,
no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to
the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof
as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating
actions, including funding, with the consent of the Borrowers and the Administrative Agent, the applicable pro rata share of Loans
previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably
consent), to (a) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent, M&T
Bank as the provider of the M&T Advances and each other Lender hereunder (and interest accrued thereon), and (b) acquire (and fund
as appropriate) its full pro rata share of all Loans and participations in M&T Advances in accordance with its Applicable
Percentages. Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder
shall become effective under applicable Laws without compliance with the provisions of this Section, then the assignee of such interest
shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs. 

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10.2.4    Register.
The Administrative Agent, acting solely for this purpose as a limited fiduciary agent of the Borrowers, shall maintain a copy of
each Assignment And Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders and the amount
of the Loans and Commitments and principal amounts (and stated interest) with respect to each Lender from time to time (the “Register”).
The entries in the Register shall be conclusive, in the absence of manifest error, and the Borrowers, the Administrative Agent and the
Lenders shall treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of the Credit Documents. The
Register shall be available for inspection by the Borrowers or the Lenders at any reasonable time and from time to time upon reasonable
prior notice.

 

10.2.5    Procedures
for Implementing Lender Assignments. Upon the Administrative Agent’s receipt of an Assignment And Assumption executed by an
assigning Lender and an Eligible Assignee together with any Note or Notes subject to such Assignment And Assumption and any necessary
consents to such Assignment And Assumption, the Administrative Agent shall, if such Assignment And Assumption has been completed and
is substantially in the form of Exhibit A (a) accept such Assignment And Assumption, (b) record the information contained therein
in the Register, (c) give prompt notice thereof to the Borrowers, and (d) promptly deliver a copy of such Assignment And Assumption to
the Borrowers. Within three (3) Business Days after receipt of notice, the Borrowers shall execute and deliver to the Administrative
Agent, in exchange for the surrendered Notes, new Notes payable to such Eligible Assignee in amounts equal to the Commitments and Applicable
Percentages assumed by it pursuant to such Assignment And Assumption and new Notes payable to the assigning Lender in an amount equal
to the Commitments and Applicable Percentages retained by the assigning Lender. Such Notes shall be in the aggregate stated principal
amount equal to the aggregate principal amount of such surrendered Notes, shall be dated the effective date of such Assignment And Assumption
and shall otherwise be in substantially the form of the assigned Notes delivered to the assigning Lender. The surrendered Notes shall
be canceled and returned to the Borrowers. The Borrowers expressly acknowledge that the cancellation of any Note or Notes and the replacement
of any Note or Notes in accordance with this provision shall not constitute or be deemed to be a refinancing or a novation of any of
the Obligations.

 

10.2.6    Cashless
Settlements. Notwithstanding anything to the contrary contained in this Agreement, any Lender may exchange, continue or rollover
all or a portion of its Loans in connection with any refinancing, extension, loan modification or similar transaction permitted by the
terms of this Agreement, pursuant to a cashless settlement mechanism approved by the Borrowers, the Administrative Agent and such Lender. 

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Section 10.03. Participations. Any Lender
may at any time, without the consent of, or notice to, the Borrowers or the Administrative Agent, sell participations to any Person (other
than to a Defaulting Lender, a natural Person (or a holding company, investment vehicle or trust for, or owned and operated for the primary
benefit of a natural Person), or the Borrowers or any of the Borrowers’ Affiliates or Subsidiaries) (each, a “Participant”)
in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitments
and/or the Loans owing to it); provided that (a) such Lender’s obligations under this Agreement shall remain unchanged,
(b) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (c) the Borrowers,
the Administrative Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement. For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section
2.13.5. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver described in Section 10.01 that affects such Participant. The Borrowers agree that each Participant shall be entitled
to the benefits of Sections 2.05.2(a), 2.12 and 2.13 (subject to the requirements and limitations therein, including the requirements
under Section 2.13.7 (it being understood that the documentation required under Section 2.10.7 shall be delivered to the participating
Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to Section 10.02 of this Agreement;
provided that such Participant (i) agrees to be subject to the provisions of Section 2.14 as if it were an assignee under Section
10.02 of this Agreement; and (ii) shall not be entitled to receive any greater payment under Sections 2.12 or 2.13, with respect to any
participation, than its participating Lender would have been entitled to receive. Each Lender that sells a participation agrees, at the
Borrowers’ request and expense, to use reasonable efforts to cooperate with the Borrowers to effectuate the provisions of Section
2.14.2 with respect to any Participant. To the extent permitted by Law, each Participant also shall be entitled to the benefits of Section
10.07 as though it were a Lender; provided that such Participant agrees to be subject to Section 2.09 as though it were a Lender.
Each Lender that sells a participation shall, acting solely for this purpose as a limited non-fiduciary agent of the Borrowers, maintain
a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s
interest in the Loans or other obligations under the Credit Documents (the “Participant Register”); provided
that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant
or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under
any Credit Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter
of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations or is otherwise
required thereunder. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each
Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of the Credit Documents
notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative
Agent) shall have no responsibility for maintaining a Participant Register.

 

Section 10.04.  Pledges. Any
Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations
of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge
or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender
as a party hereto.

 

Section 10.05. Resignation of M&T Bank with
Respect to M&T Advances. M&T Bank may resign as the provider of the M&T Advances upon forty five (45) calendar days’
prior written notice of its resignation as provider of the M&T Advances to the Administrative Agent, the Borrower Representative
and the Lenders. After the resignation of M&T Bank as provider of the M&T Advances in accordance with this Section 10.05, M&T
Bank shall remain a party hereto and shall continue to have all of its rights and obligations in such capacity under this Agreement and
the other Credit Documents with respect to M&T Advances made by it prior to such resignation (including but not limited to (x) rights
under this Article X (without regard to the last sentence of this Section 10.05), including Section 10.08, Sections 2.07(b), 2.12, 2.13.4,
2.13.5 and 2.13.11, and any other rights to indemnity payments or other amounts owed to M&T Bank as the provider of the M&T Advances,
and (y) the right to require the Lenders to make Floor Plan Committed Loans to and fund risk participations in outstanding M&T Advances
pursuant to Section 2.02 hereof, unless the successor provider of M&T Advances shall have reimbursed M&T Bank in full for all
such outstanding M&T Advances), but shall not be required to make any additional M&T Advances. Upon receipt of any such notice
of resignation, the Borrower Representative may appoint a successor Lender (which must constitute an Eligible Assignee) for purposes
of providing the M&T Advances. Upon the effectiveness of any resignation of M&T Bank as the provider of the M&T Advances,
the Lenders shall reimburse M&T Bank in full for all outstanding M&T Advances in an amount equal to such Lender’s Floor
Plan Commitment Percentage of the M&T Advances then outstanding, unless the successor provider of M&T Advances shall have reimbursed
M&T Bank in full for all such outstanding M&T Advances. The successful appointment of a successor Lender for providing M&T
Advances shall not be a condition to the resignation by M&T Bank under this Section 10.05. Upon the successful appointment of a successor
Lender for purposes of providing the M&T Advances, such Lender shall be deemed to constitute “M&T Bank” for all purposes
hereunder with respect to the M&T Advances, as the context may require. 

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Section 10.06. No Advisory or Fiduciary Responsibility.
In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification
hereof or of any other Credit Document), each of the Borrowers acknowledges and agrees that: (a)(i) the arranging and other services
regarding this Agreement provided by the Administrative Agent and each Arranger are arm’s-length commercial transactions between
the Borrowers and their Affiliates, on the one hand, and the Administrative Agent and each Arranger, respectively, on the other hand,
(ii) the Borrowers have consulted their own legal, accounting, regulatory and tax advisors to the extent the Borrowers have deemed appropriate,
and (iii) the Borrowers are capable of evaluating, and understand and accept, the terms, risks and conditions of the transactions contemplated
hereby and by the other Credit Documents; (b) (i) the Administrative Agent and each Arranger is and has been acting solely as a principal
and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent
or fiduciary for any of the Borrowers or any of their Affiliates, or any other Person and (ii) neither the Administrative Agent nor either
Arranger has any obligation to any of the Borrowers or any of their Affiliates with respect to the transactions contemplated hereby except
those obligations expressly set forth herein and in the other Credit Documents; and (c) the Administrative Agent and each Arranger, and
their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrowers
and their Affiliates, and neither the Administrative Agent nor either Arranger has any obligation to disclose any of such interests to
the Borrowers or their Affiliates. To the fullest extent permitted by Law, each Borrower hereby waives and releases any claims that it
may have against the Administrative Agent and either Arranger with respect to any breach or alleged breach of agency or fiduciary duty
in connection with any aspect of any transaction contemplated hereby.

 

Section 10.07.  Right of Setoff. If
an Event of Default shall have occurred and be continuing, each Lender and each of their respective Affiliates is hereby authorized at
any time and from time to time, to the fullest extent permitted by applicable Laws, to set off and apply any and all deposits (general
or special, time or demand, provisional or final, in whatever currency) at any time held, and other obligations (in whatever currency)
at any time owing, by such Lender or any such Affiliate, to or for the credit or the account of any Borrower or any other Loan Party
against any and all of the Obligations of the Borrowers or any Loan Party now or hereafter existing under this Agreement or any other
Credit Document to such Lender or its respective Affiliates, irrespective of whether or not such Lender or any of its Affiliates shall
have made any demand under this Agreement or any other Credit Document and although such Obligations of the Borrowers or any Loan Party
may be contingent or unmatured or are owed to a branch, office or Affiliate of such Lender different from the branch, office or Affiliate
holding such deposit or obligated on such indebtedness; provided that in the event that any Defaulting Lender shall exercise any
such right of setoff, (a) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in
accordance with the provisions of Section 2.18 and, pending such payment, shall be segregated by such Defaulting Lender from its other
funds and deemed held in trust for the benefit of the Administrative Agent and the Lenders, and (b) the Defaulting Lender shall provide
promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to
which it exercised such right of setoff. The rights of each Lender and its respective Affiliates under this Section are in addition to
other rights and remedies (including other rights of setoff) that such Lender or its respective Affiliates may otherwise have under applicable
Laws. The Lender agrees to notify the Borrowers and the Administrative Agent promptly after any such setoff and application; provided
that the failure to give such notice shall not affect the validity of such setoff and application. 

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Section 10.08.  Expenses;
Indemnity; Damage Waiver.

 

10.8.1   Costs
and Expenses. The Borrower Representative promises to pay all Credit Party Expenses incurred from time to time. The agreement of
the Borrower Representative set forth in this Section 10.08.1 shall not merge into any judgment entered in connection with this Agreement
or any other Credit Documents but shall survive as a separate independent contractual agreement of the Borrower Representative.

 

10.8.2   Indemnification
by the Borrower Representative. The Borrower Representative agrees to indemnify the Administrative Agent, each Lender and each Related
Party of any of the foregoing Persons (each such Person being called an “Indemnitee” and, collectively, the “Indemnitees”)
against, and hold each Indemnitee harmless from, any and all out-of-pocket losses, claims, damages, liabilities and reasonable and documented
expenses (with respect to counsel fees, limited to the reasonable and documented fees, disbursements and other charges of one primary
counsel to all Indemnitees (taken as a whole) (and (x) if necessary, of a single local counsel to all Indemnitees (taken as a whole)
in each relevant material jurisdiction and (y) solely in the event of a conflict of interest, one additional primary legal counsel to
each group of similarly situated affected Indemnitees (taken as a whole))) incurred by any Indemnitee in connection with any actual or
threatened claim, litigation, investigation or proceeding in connection with, or as a result of, (a) the execution or delivery of this
Agreement, any other Credit Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto
of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (b)
any Loan or the use or proposed use of the proceeds therefrom, (c) any Environmental Liability related in any way to any Loan Party or
any of its Subsidiaries, in each case, whether based on contract, tort or any other theory, whether brought by a third party or by any
Borrower or any other Loan Party, and regardless of whether any Indemnitee is a party thereto (all of the foregoing, collectively, the
 “Indemnified Liabilities”); provided that such indemnity shall not, as to any Indemnitee, be available to the
extent that such losses, claims, damages, liabilities or related expenses resulted from (i) any such Indemnitee’s bad faith, gross
negligence or willful misconduct as determined by a court of competent jurisdiction by final and non-appealable judgment, (ii) any material
breach by any such Indemnitee of its obligations under any Credit Document, as determined by a court of competent jurisdiction by final
and non-appealable judgment or (iii) any dispute solely among Indemnitees that does not involve, result from or relate to, directly or
indirectly, any act or omission by GPB Prime, its Subsidiaries or any of their Affiliates. The Borrower Representative shall not
be liable for any punitive, exemplary, consequential or indirect damages or lost profits alleged in connection with, arising out of,
or relating to, any Indemnified Liabilities (except that this sentence shall not limit the Borrower Representative’s indemnity
obligations to the extent set forth in the immediately preceding sentence in respect of any losses, damages, liabilities, costs and expenses
incurred or paid by the Indemnitees to an unaffiliated third party that are otherwise required to be paid pursuant to the immediately
preceding sentence). The Borrower Representative shall not be liable for any settlement of any Indemnified Liabilities effected without
its prior written consent (which consent shall not be unreasonably withheld), but if settled with its written consent or if there is
a judgment by a court of competent jurisdiction against an Indemnitee in any such Indemnified Liability, the Borrower Representative
agrees to indemnify and hold harmless each Indemnitee to the extent set forth above. Notwithstanding the foregoing, each Indemnitee (and
its Related Parties) shall be obligated to refund and/or return promptly any and all amounts paid by the Borrower Representative or on
its behalf under this paragraph to such Indemnitee (or its Related Parties) for any such losses, claims, damages, liabilities and expenses
to the extent such Indemnitee (or its Related Parties) is not entitled to payment of such amounts in accordance with the terms hereof.
This Section 10.08.2 shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising
from any non-Tax claim. 

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10.8.3    Reimbursement
by Lenders. To the extent that the Borrowers for any reason fail to indefeasibly pay any amount required under Section 10.08.1 or
10.08.2 to be paid by it to the Administrative Agent (or any sub-agent thereof), M&T Bank as provider of the M&T Advances or
any Related Party of any of the foregoing, each Lender severally promises to pay to the Administrative Agent (or any such sub-agent),
M&T Bank in such capacity, or such Related Party, as the case may be, such Lender’s pro rata share (determined as of
the time that the applicable unreimbursed expense or indemnity payment is sought based on each Lender’s share of the aggregate
Total Credit Exposure for all Lenders at such time) of such unpaid amount (including any such unpaid amount in respect of a claim asserted
by such Lender); provided that with respect to such unpaid amounts owed to M&T Bank as provider of the M&T Advances solely
in its capacity as such, only the holders of Floor Plan Committed Loans shall be required to pay such unpaid amounts, such payment to
be made severally among them based on each of such Lenders’ respective Floor Plan Commitment Percentage (determined as of the time
that the applicable unreimbursed expense or indemnity payment is sought) provided, further, that the unreimbursed expense
or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative
Agent (or any such sub-agent), or M&T Bank in its capacity as such, or against any Related Party of any of the foregoing acting for
the Administrative Agent (or any such sub-agent) or M&T Bank in connection with such capacity.

 

10.8.4    Waiver
of Consequential Damages, Etc. To the fullest extent permitted by applicable Laws, each Borrower and each Indemnitee agrees that
it will not assert, and hereby waives, any claim against each other, on any theory of liability, for special, indirect, consequential
or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any
other Credit Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan,
or the use of the proceeds thereof (other than, in the case of the Borrower Representative, in respect of any such damages incurred or
paid by an Indemnitee to a third party for which such Indemnitee is otherwise entitled to indemnification pursuant to Sections 2.05.2(a)
or 10.08.2). No Indemnitee referred to in Section 10.08.2 above shall be liable for any damages arising from the use by unintended recipients
of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems
in connection with this Agreement or the other Credit Documents or the transactions contemplated hereby or thereby (except to the extent
such damages are found in a final non-appealable judgment of a court of competent jurisdiction to have resulted from the willful misconduct,
bad faith or gross negligence of such Indemnitee).

 

10.8.5    Payments.
All amounts due under Sections 10.08.01 and 10.08.2 shall be payable not later than fifteen (15) Business Days after receipt by the
Borrower Representative of an invoice relating to such amounts and setting forth such expenses in reasonable detail.

 

10.8.6    Survival.
Each party’s obligations under this Section 10.08 shall survive the termination of the Credit Documents and the payment of
the Obligations hereunder.

 

Section 10.09.  Course of Conduct. No
failure or delay by any Credit Party in exercising any right or power under any Credit Document shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right
or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the
Credit Parties under the Credit Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have.
No waiver of any provision of any Credit Document or consent to any departure by any Loan Party therefrom shall in any event be effective
unless such waiver is made in accordance with Section 10.01 of this Agreement, and then such waiver or consent shall be effective only
in the specific instance and for the purpose for which given. No waiver or indulgence by any of the Credit Parties shall constitute a
future waiver of performance or exact performance by any of the Loan Parties. Without limiting the generality of the foregoing, the advance
of proceeds of a Loan shall not be construed as a waiver of any Default or an Event of Default, regardless of whether any Credit Party
may have had notice or knowledge of such Default or Event of Default at the time of such advance or issuance. 

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Section
10.10.  Notices; Effectiveness; Electronic Communication.

 

10.10.1  Notices
Generally. Except as provided in Section 10.10.2 below, all notices and other communications provided for herein shall be in writing
and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile as follows:

 

(a)         if
to any of the Borrowers or to any other Loan Party, to it, C/o of the Borrower Representative at 375 Providence Highway, Westwood, MA
02090, Attention of David Rosenberg, CEO (Facsimile No. (781) 688-1187), with a copy to GPB Capital at 1581 Franklin Avenue, Garden City,
NY 11501, Attention of David Gentile, CEO (Facsimile No. (212) 235-2651);

 

(b)         if
to GPB Capital, to it, at 1581 Franklin Avenue, Garden City, NY 11501, Attention of David Gentile, CEO (Facsimile No. (212) 235-2651);

 

(c)         if
to the Administrative Agent, to Manufacturers and Traders Trust Company at M&T Bank Dealer Commercial Services, 72A Taunton Street,
Suite 101, Plainville, MA 02762, Attention of John Federici, Group Vice President (Facsimile No. (508) 699-3586) and to M&T Debt
Capital Markets Group, 25 S. Charles Street, 12th Floor, Baltimore, Maryland 21201, Attention of Robert Hauver, Managing Director (Facsimile
No. (410) 244-4477);

 

(d)         if
to Manufacturers and Traders Trust Company in its capacity as provider of the M&T Advances, to it at M&T Bank Dealer Commercial
Services, 72A Taunton Street, Suite 101, Plainville, MA 02762, Attention of John Federici, Group Vice President (Facsimile No. (508)
699-3586);

 

(e)         if
to a Lender, to it at its address (or facsimile number) set forth on its signature page hereto or on an Assignment And Assumption.

 

Notices
sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received;
notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the
recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices delivered
through electronic communications, to the extent provided in Section 10.10.2 below, shall be effective as provided in said Section 10.10.2.

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10.10.2  Electronic
Communications. Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication
(including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent. The Administrative
Agent or any of the Borrowers may, in its discretion, agree to accept notices and other communications to it hereunder by electronic
communications pursuant to  procedures approved by it; provided that approval of such procedures may be limited to particular
notices or communications. Unless the Administrative Agent otherwise prescribes, (a) notices and other communications sent to an e-mail
address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return
receipt requested” function, as available, return e-mail or other written acknowledgement), and (b) notices or communications posted
to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address
as described in the foregoing clause (a), of notification that such notice or communication is available and identifying the website
address therefor; provided that, for both clauses (a) and (b) above, if such notice, email or other communication is not sent
during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business
on the next business day for the recipient.

 

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

 

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

 

Section 10.11. Treatment of Certain Information;
Confidentiality. Each of the Administrative Agent and the Lenders agree to maintain the confidentiality of the Information in accordance
with its customary procedures, except that Information may be disclosed (a) to its Affiliates and to its Related Parties (it being understood
that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep
such Information confidential); (b) to the extent required or requested by any regulatory authority purporting to have jurisdiction over
such Person or its Related Parties (including any self-regulatory authority, such as the National Association of Insurance Commissioners);
(c) to the extent required by applicable Laws or by any subpoena or similar legal process; (d) to any other party hereto; (e) in connection
with the exercise of any remedies hereunder or under any other Credit Document or any action or proceeding relating to this Agreement
or any other Credit Document or the enforcement of rights hereunder or thereunder; (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant
in, any of its rights and obligations under this Agreement, or (ii) any actual or prospective party (or its Related Parties) to any swap,
derivative or other transaction under which payments are to be made by reference to the Borrowers and their obligations, this Agreement
or payments hereunder; (g) on a confidential basis to (i) any rating agency in connection with rating the Borrowers or their Subsidiaries
or the Credit Facilities hereunder or (ii) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring
of CUSIP numbers with respect to the Credit Facilities hereunder; (h) with the consent of the Borrowers; or (i) to the extent such Information (x)
becomes publicly available other than as a result of a breach of this Section, or (y) becomes available to the Administrative Agent,
any Lender, or any of their respective Affiliates on a non-confidential basis from a source other than the Borrowers. In addition, the
Administrative Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data
collectors, similar service providers to the lending industry and service providers to the Administrative Agent and the Lenders in connection
with the administration of this Agreement, the other Credit Documents, and the Commitments. For purposes of this Section, “Information”
means all information received from GPB Prime or any of its Subsidiaries relating to GPB Prime or any of its Subsidiaries or any of their
respective businesses, other than any such information that is available to the Administrative Agent or any Lender on a non-confidential
basis prior to disclosure by Parent Holdings Guarantor or any of its Subsidiaries. Any Person required to maintain the confidentiality
of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised
the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. 

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Section
10.12.  Replacement of Lenders. If any Lender requests compensation under Sections 2.12  or
2.13, or if any Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to Section 2.13, or if any Lender is a Defaulting Lender or Non-Consenting Lender, then the Borrowers may at their sole
expense and effort, upon notice to such Lender and the Administrative Agent:

 

(a)           require
such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required
by, Section 10.02), all of its interests, rights (other than its then-existing right to payments under Sections 2.12 and 2.13) and obligations
under this Agreement (or, with respect to any Lender that is a Non-Consenting Lender with respect to a consent, waiver or amendment relating
to a particular Class of Loans or Commitments, all of such Lender’s interests, rights and obligations with respect to such Class
of Loans or Commitments) and the related Credit Documents to one or more Eligible Assignees that shall assume such obligations (any of
which Eligible Assignees may be another Lender, if a Lender accepts such assignment), provided that:

 

(i)        the
Borrowers shall have paid to the Administrative Agent the assignment fee specified in Section 10.02.2(a);

 

(ii)       such
Lender shall have received payment of an amount equal to the outstanding principal of its Loans (or, with respect to any Lender that
is a Non- Consenting Lender with respect to a consent, waiver or amendment relating to a particular Class of Loans or Commitments, all
of such Lender’s interests, rights and obligations with respect to such Class of Loans), accrued interest thereon, accrued fees
and all other amounts payable to it hereunder and under the other Credit Documents (including any amounts under Section 2.05.2(a) from
the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrowers (in the case of all other amounts);

 

(iii)      such
Lender being replaced pursuant to this Section 10.12 shall (i) execute and deliver an Assignment And Assumption with respect to all,
or a portion, as applicable, of such Lender’s Commitment and outstanding Loans and participations in M&T Advances (or, with
respect to any Lender that is a Non-Consenting Lender with respect to a consent, waiver or amendment relating to a particular Class of
Loans or Commitments, all or a portion of such Lender’s interests, rights and obligations with respect to such Class of Loans (including
participations in M&T Advances) or Commitments) and (ii) deliver any Notes evidencing such Loans to the Borrower or Administrative
Agent (or a lost or destroyed note indemnity in lieu thereof); provided that the failure of any such Lender to execute an Assignment
And Assumption or deliver such Notes shall not render such sale and purchase (and the corresponding assignment) invalid and such assignment
shall be recorded in the Register and the Notes shall be deemed to be canceled upon such failure; 

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(iv)      the
Eligible Assignee shall become a Lender hereunder and the assigning Lender shall cease to constitute a Lender hereunder with respect
to such assigned Loans, Commitments and participations, except with respect to indemnification and confidentiality provisions under this
Agreement, which shall survive as to such assigning Lender;

 

(v)       in
the case of any such assignment resulting from a claim for compensation under Section 2.13 or payments required to be made pursuant to
Section 2.12, such assignment will result in a reduction in such compensation or payments thereafter;

 

(vi)      such assignment
does not conflict with applicable Laws; and

 

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

 

(b)           terminate
any Commitments of such Lender, as the case may be, and in the case of a Lender, repay all Obligations of the Borrowers owing to such
Lender relating to the applicable Loans and participations held by such Lender as of such termination date; provided that in the
case of any such termination of Commitments of a Non-Consenting Lender, such termination shall be sufficient (together with all other
consenting Lenders) to cause the adoption of the applicable consent, waiver or amendment of the Credit Documents and such termination
shall be in respect of all of its interests, rights and obligations with respect to the Class of Loans or Commitments that is the subject
of the related consent, waiver and amendment.

 

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

 

Section 10.13. Counterparts And Integration. This
Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute
an original, but all of which when taken together shall constitute a single contract. This Agreement and the other Credit Documents constitute
the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings,
oral or written, relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall become effective when
it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that,
when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart
of a signature page of this Agreement by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be just
as effective as the delivery of a manually executed counterpart of this Agreement.

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Section 10.14.  Electronic Execution. The
words “execution”, “signed,” “signature,” and words of like import in any Credit Document shall be
deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect,
validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to
the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar state Laws based on the Uniform Electronic Transactions
Act. Without limitation to the foregoing, signature pages to the Credit Documents delivered by electronic communication (including
facsimile, e-mail and internet or intranet websites) shall be as effective, valid and enforceable and binding upon the indicated signatories
as manually delivered signatures.

 

Section 10.15. Severability. In the event any
one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby (it being
understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity
of such provision in any other jurisdiction). The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal
or unenforceable provisions.

 

Section 10.16. Survival. All covenants, agreements,
representations and warranties made by the Borrowers herein and in the certificates or other instruments prepared or delivered in connection
with or pursuant to this Agreement or any other Credit Document shall be considered to have been relied upon by the other parties hereto
and shall survive the execution and delivery of any Credit Document and the making of any Loans, regardless of any investigation made
by any such other party or on its behalf and notwithstanding that any Credit Party may have had notice or knowledge of any Default or
incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long
as the principal of or any accrued interest on any Loan or any fee or any other amount payable under the Credit Documents is outstanding
and unpaid and so long as the Revolving Credit Commitments have not expired or terminated. The provisions of Sections 2.12, 2.13.4, 2.13.5,
Article 9 and Section 10.08 shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated
hereby, the repayment of the Loans and the termination of the Commitments or the termination of this Agreement or any provision hereof.

 

Section 10.17.  Time. Time
is of the essence to this Agreement.

 

Section 10.18. Advertisement. The Administrative
Agent shall be entitled to place a “tombstone” or comparable advertisement in various publications subject to the Borrower
Representative’s approval of each publication and the contents of each such advertisement, which approval shall not be unreasonably
withheld or delayed. The Borrowers further agree that the Administrative Agent may provide Gold Sheets and other similar bank trade publications
with information related to the Credit Facilities that is customarily found in league table measurements.

 

Section 10.19. Acknowledgments. Each Borrower
hereby acknowledges that (a) it and each of the other Loan Parties has been advised and represented by counsel in the negotiation,
execution and delivery of each Credit Document, (b) no Credit Party has any fiduciary relationship with or duty to it or any other Loan
Party arising out of or in connection with this Agreement and the relationship between the Credit Parties, on one hand, and the Borrowers
and the other Loan Parties, on the other hand, in connection herewith is solely that of creditors and debtors, and (c) no joint venture
exists among any of the Credit Parties and the Borrowers or any of the other Loan Parties.

    -154-

     

    

Section 10.20.  Governing Law. This
Agreement and the other Credit Documents and any claims, disputes or causes of action (whether in contract or tort) arising out of or
related to this Agreement or any other Credit Document (except as to any other Credit Document, as expressly set forth therein) and the
transaction contemplated hereby and thereby shall be governed by, and construed in accordance with, the Laws of the Governing State.

 

Section 10.21. Jurisdiction. SUBMISSION TO
JURISDICTION. EACH BORROWER IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF
ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST THE ADMINISTRATIVE AGENT, ANY
LENDER, OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT OR THE TRANSACTIONS
RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED
STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO
IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY
SUCH ACTION, LITIGATION OR PROCEEDING, OR ANY OTHER ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT
DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION
OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED
BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER CREDIT DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY LENDER
MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT AGAINST ANY BORROWER OR
ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

Section 10.22. Venue. EACH BORROWER IRREVOCABLY
AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT IN ANY COURT REFERRED
TO IN SECTION 10.21 OF THIS AGREEMENT. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT..

 

Section 10.23. Service of Process. EACH PARTY
HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.10. NOTHING IN THIS AGREEMENT WILL
AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW. 

    -155-

     

    

Section 10.24. Waiver of Jury Trial. EACH
PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
AND THE OTHER CREDIT DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

Section 10.25. USA Patriot Act Notice. Each
Credit Party that is subject to the USA Patriot Act hereby notifies the Borrowers that pursuant to the requirements of the USA Patriot
Act it is required to obtain, verify and record information that identifies the Borrowers, which information includes the names and address
of the Borrowers and other information that will allow such Credit Party to identify the Borrowers in accordance with the USA Patriot
Act.

 

[Signatures begin on following page.] 

    -156-

     

    

Signature
Page to Amended and Restated Credit Agreement:  

IN
WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have caused this Credit Agreement to be duly executed as of
the date first written above.

	 	 
	 	GPB PRIME:
	 	 
	 	GPB PRIME HOLDINGS, LLC,
	 	a Delaware Limited liability Company
	 	 
	 	By:	
	 	 	David Gentile,
	 	 	Manager
	 	 	 
	 	PARENT HOLDINGS GUARANTOR:
	 	 
	 	AUTOMILE PARENT HOLDINGS, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	David Rosenberg,
	 	 	President

 

[Signatures
continue on following page.]

    

     

    

Signature
Page to Amended and Restated Credit Agreement (continued): 

	 	 
	 	BORROWERS:
	 	 
	 	AUTOMILE
    HOLDINGS, LLC, a Delaware limited liability company
	 	AUTOMILE
    TY HOLDINGS, LLC, a Delaware limited liability company
	 	AMR
    AUTO HOLDINGS - TY, LLC, a Delaware limited liability company
	 	AMR
    AUTO HOLDINGS - TH, LLC, a Delaware limited liability company
	 	AMR
    AUTO HOLDINGS - TO, LLC, a Delaware limited liability company
	 	AMR
    AUTO HOLDINGS - LN, LLC, a Delaware limited liability company
	 	LUPO
    LLC, a Delaware limited liability company
	 	AMR
    AUTO HOLDINGS- MW, LLC, a Delaware limited liability company
	 	AMR
    AUTO HOLDINGS - PA, LLC, a Delaware limited liability company
	 	AMR
    AUTO HOLDINGS - AC, LLC, a Delaware limited liability company
	 	AMR
    AUTO HOLDINGS - ACII, LLC, a Delaware limited liability company
	 	AMR
    AUTO HOLDINGS - HN, LLC, a Delaware limited liability company
	 	AMR
    AUTO HOLDINGS - MH, LLC, a Delaware limited liability company
	 	AMR
    AUTO HOLDINGS - SB, LLC, a Delaware limited liability company
	 	AMR
    AUTO HOLDINGS - HD, LLC, a Delaware limited liability company
	 	AMR
    AUTO HOLDINGS - FA, LLC, a Delaware limited liability company
	 	AMR
    AUTO HOLDINGS - VH, LLC, a Delaware limited liability company
	 	AMR
    AUTO HOLDINGS - MM, LLC, a Delaware limited liability company

	 	 	 
	 	By:	    
	 	 	David Rosenberg

 

[Signatures
continue on following page.]

    

     

    

	 	 	 
	Signature Page to Amended and Restated
    Credit Agreement (continued):
	 	 	 
	 	BORROWERS
    (Continued):
	 	 
	 	AMR
    AUTO HOLDINGS - SN, LLC, a Delaware limited liability company
	 	AMR
    AUTO HOLDINGS - BG, LLC, a Delaware limited liability company
	 	AMR
    AUTO DISTRIBUTORS INC., a Massachusetts corporation
	 	SACO
    AUTO HOLDINGS - FLMM, LLC, a Delaware limited liability company
	 	SACO
    AUTO HOLDINGS - HN, LLC, a Delaware limited liability company
	 	SACO
    AUTO HOLDINGS - VW, LLC, a Delaware limited liability company
	 	SAWDRAN,
    LLC, a Delaware limited liability company
	 	STARETZ,
    LLC, a Delaware limited liability company
	 	 	 
	 	By:	         
	 	 	David Rosenberg

 

[Signatures
continue on following page.]

    

     

    

Signature
Page to Amended and Restated Credit Agreement (continued):

 

	 	BORROWERS (Continued):
	 	 
	 	AMR REAL ESTATE HOLDINGS, LLC, a Delaware
    limited
	 	 
	 	By:	/s/ [ILLEGIBLE]
	 	 	David Gentile,
	 	 	Manager

 

[Signatures
continue on following page.]

    

     

    

Signature
Page to Amended and Restated Credit Agreement (continued):

  

	 	ADMINISTRATIVE AGENT:
	 	 	 
	 	MANUFACTURERS AND TRADERS TRUST COMPANY,
	 	a New York banking corporation in its capacity
    as Administrative Agent
	 	 	 
	 	By:	
	 	 	John Brissette,
	 	 	Vice President

 

[Signatures
continue on following page.]

    

     

    

Signatnre
Page to Amended and Restated Credit Agreement (continued):

 

	 	LENDERS:
	 	 	 
	 	MANUFACTURERS AND TRADERS TRUST COMPANY,
	 	a New York banking corporation in its capacity
    as Lender
	 	 	 
	 	By:	 
	 	 	John Brissette,

    

     

    

Signature
Page to Amended and Restated Credit Agreement (continued):

 

	 	LENDERS-continued:
	 	 	 
	 	SUNTRUST BANK,
	 	 	 
	 	By: 	/s/ [ILLEGIBLE]
	 		Name: [ILLEGIBLE]
	 		Title: [ILLEGIBLE]

 

	 	Address for Notices:
	 	 
	 	SunTrust Bank
	 	Automotive Division
	 	14401 Sweitzer
    Lane, 4th FIoor
	 	Laurel MD 20723
	 	Attention: [ILLEGIBLE]
	 	Facsimile No.
    [ILLEGIBLE]

    

     

    

Signature
Page to Amended and Restated Credit Agreement (continued):

 

	 	LENDERS-continued:
	 	 	 
	 	MERCEDES-BENZ FINANCIAL SERVICES USA LLC,
	 	in its capacity as a Lender
	 	 	 
	 	By:	
	 	 	Name: Michele Nowak
	 	 	Title:   Credit Director, National Accounts

 

	 	 	Address for Notices:
	 	 	 
	 	 	Mercedes-Benz
    Financial Services USA LLC
	 	 	36455 Corporate
    Drive
	 	 	Farmington Hills,
    MI 48331
	 	 	Attention:  Michele
    Nowak
	 	 	Facsimile No.
    (877) 887-8604

    

     

    

Signature
Page to Amended and Restated Credit Agreement (continued):

 

	 	LENDERS -continued:
	 	 	 
	 	[*****] MOTOR CREDIT CORPORATION,
	 	in its capacity as a Lender
	 	 	 
	 	By:	/s/
    Thomas F. Miller
	 	 	Name: 	Thomas F. Miller
	 	 	Title:	National Accounts Manager
	 	 	 
	 	 	Address for Notices:
	 	 	 
	 	 	6565
    Headquarters Drive, W2-2A
	 	 	Plano
    TX 75024
	 	 	 
	 	 	Attention:      
         Thomas Miller
	 	 	Facsimile No.      
    (319) 221-5884

    

     

    

Signature
Page to Amended and Restated Credit Agreement (continued):

	 	LENDERS-continued:
	 	 
	 	NYCB SPECIALTY FINANCE COMPANY, LLC, a
    wholly
	 	owned subsidiary of New York Community
    Bank, in its capacity as a Lender
	 	 	 
	 	By:	/s/
    Mark C. Mazmanian
	 	 	Name: Mark C. Mazmanian
	 	 	Title: Senior Vice President

	 	 	 
	 	 	Address for Notices:
	 	 	 
	 	 	16 Chestnut
    Street
	 	 	Foxboro MA 02035
	 	 	Attention:             Mark
    C. Mazmanian, Senior Vice President
	 	 	Facsimile No.       (508)
    543-1551

    

     

    

	Signature Page to Amended and
    Restated Credit Agreement (continued):
	 

	 	LENDERS-continued:
	 	 
	 	KEYBANK NATIONAL ASSOCIATION,
	 	in its capacity as a Lender
	 	 
	 	By:	/s/ [ILLEGIBLE]
	 	 	Name: [ILLEGIBLE]
	 	 	Title: [ILLEGIBLE]

	 	 	 
	 	 	Address for Notices:
	 	 	 
	 	 	Key Bank N.A.
	 	 	4910 Tiedeman
    Road
	 	 	Mailcode: OH-01-51
    -40 11
	 	 	Brooklyn, OH
    44144
	 	 	Attention:             
    Adam T. Stiffler
	 	 	Facsimile No.        
    (216) 370 -6251

    

     

    

Signature
Page to Amended and Restated Credit Agreement (continued): 

	 	 	 
	 	LENDERS-continued:
	 	 	 
	 	TD BANK, N.A.,
	 	in its capacity as a Lender
	 	 	 
	 	By:	/s/ [ILLEGIBLE]
	 	 	Name: [ILLEGIBLE]
	 	 	Title: Director of Credit Management
	 	 	 
	 	 	Address for Notices:
	 	 	 
	 	 	27777 Inkster
    Road, Mail Stop MI1-012-23C
	 	 	Farmington Hills,
    MI 483345
	 	 	Attention:             
    Judy C. Johnson
	 	 	Facsimile No.        
    (248) 427-6550

    

     

    

Signature
Page to Amended and Restated Credit Agreement (continued): 

 

	 	LENDERS-continued:
	 	 	 
	 	VW CREDIT, INC.,
	 	in its capacity as a Lender
	 	 	
	 	By: 	/s/ [ILLEGIBLE]
	 	 	Name:	[ILLEGIBLE]
	 	 	Title:	[ILLEGIBLE]
	 	 	 
	 	 	Address for Notices:
	 	 	 
	 	 	300
    Tice Boulevard
	 	 	Suite
    177
	 	 	WoodcliffLake
    NJ 07677
	 	 	Attention:       
         Dean Taylor
	 	 	Facsimile No.      
    (201) 782-9603

    

     

    

Exhibit D to

Amended and
Restated Credit Agreement 

Delayed Draw Disbursement Procedures

 

 

DELAYED DRAW DISBURSEMENT
PROCEDURES

 

Advances
of Delayed Draws Loans that are Mortgage Loans under Section 2.04 of the annexed Credit Agreement (“Agreement”) in
connection with a Project (as defined herein) shall be made in accordance with the procedures set forth below.

 

Section
1.          Definitions. All terms defined in the Agreement shall have
the same meanings in this Exhibit. The following additional terms shall have the following meanings.

 

“Completion”
means: (a) as to particular referenced stages of construction of the Improvements, that construction has been finished and fully accomplished,
subject only to minor and inconsequential omissions or items still to be finished and which will not hinder or impair further construction
from progressing; and (b) as to the fully constructed Improvements, that the Improvements have been finished and completed to such an
extent as to be ready to be occupied and used for their intended purpose, subject only to minor and inconsequential omissions or items
still to be finished, not affecting occupation and use, and that all applicable occupancy and use permits and licenses required under
applicable Laws for the occupancy and use of the Improvements for their intended purposes have been unconditionally issued.

 

“Completion
Date” means the date set forth in an applicable Project Schedule as the date upon which a Project will achieve completion.

 

“Direct
Costs” means those costs and expenses which the applicable Borrowers incur in connection with the subject Project for such
items as labor, materials, equipment, fixtures, furnishings, and the like.

 

“Equity
Contributions” means that portion of the Project Costs, if any, which in accordance with the applicable Project Budget is to
be funded from the funds of the applicable Borrowers and not with the proceeds of Delayed Draw Loans.

 

“Estimated
Remaining Cost Of Completion” means the Inspector’s estimate at any time of the total remaining amount of Project Costs
necessary in order to obtain the Completion of the Project.

 

“Improvements”
means collectively all of the improvements and site work, if any is required, which the applicable Borrowers will make to the applicable
Real Property in connection with any Project in accordance with the Plans and Specifications for such Project, including new construction,
rehabilitation and renovation work.

 

“Indirect
Costs” means those costs and expenses which the applicable Borrowers actually incur in connection with a Project for such items
as architect’s fees, engineer’s fees, attorney’s fees, approved management fees, approved development fees, permit
fees, hazard insurance premiums, survey costs, and other costs and expenses which are reasonably determined by the Administrative Agent
to be includable as indirect costs of the Project, but excluding any costs and expenses for such items as labor, materials, equipment,
fixtures, furnishings, and the like.

    D-1

     

    
“Inspector”
means that Person designated by the Administrative Agent to inspect a Project for the Credit Parties from time to time as work progresses
and as the Delayed Draw Mortgage Loans are advanced, for the purpose of determining for the benefit of the Secured Parties whether the
applicable Borrowers have satisfactorily achieved Completion of the work which has been represented by the Borrowers to have so attained
Completion, free from material defect or fault, and generally whether the applicable Borrowers are entitled to receive advances of Delayed
Draw Mortgage Loans which the applicable Borrowers have requisitioned. The term “Inspector” also includes that Person
designated by the Administrative Agent to review for the Credit Parties the Plans and Specifications, the Project Budget, the Project
Schedule and all other matters relating to each Project.

 

“Local
Jurisdiction” means the county or municipal jurisdiction within whose boundaries the applicable Real Property is situated and
which has jurisdiction and authority over the Project to be constructed thereon as to matters of zoning, subdivision, growth management,
building codes, public works, permits and approvals and the like.

 

“Major
Project” means any Project with respect to which the applicable Borrowers request Delayed Draw Mortgage Loans which in aggregate
amount for such Project exceed Five Million Dollars ($5,000,000.00).

 

“Major
Subcontractor” means any mechanic, materialman or other subcontractor who supplies or is to supply labor or materials with
an aggregate contract value of One Hundred Thousand Dollars ($100,000.00), or more, in connection with a Project.

 

“Minor
Project” means any Project with respect to which the applicable Borrowers request Delayed Draw Mortgage Loans which in aggregate
amount for such Project do not exceed Five Million Dollars ($5,000,000.00).

 

“Plans
and Specifications” means architectural and engineering plans and specifications (including all amendments, substitutions,
replacements and revisions thereof) for the construction of any proposed Improvements.

 

“Project”
means the construction, rehabilitation, or renovation of Improvements upon a designated Real Property (but, for the avoidance of doubt,
excluding the acquisition of Real Property) in accordance with the Plans and Specifications pertaining to such construction, rehabilitation,
or renovation.

 

“Project
Budget” means the budget in form and substance acceptable to the Administrative Agent setting forth the projected total costs
of each Project allocated to Indirect Costs and Direct Costs, in detailed trade breakdown.

 

“Project
Costs” means, collectively, Direct Costs and Indirect Costs as identified on the Project Budget.

 

“Project
Schedule” means a schedule showing the date that construction of the applicable Project is to commence, the dates on which
various stages of work on such Project are to be accomplished, and the Completion Date.

 

“Project
Term” means the period from the date of commencement of construction, renovation or rehabilitation of a Project through the
Completion Date.

D-2

 

“Real
Property” means each parcel of real property and all rights, easements and benefits thereto upon which Improvements are to
be made for each Project. The Administrative Agent for the benefit of the Secured Parties shall hold a perfected first priority mortgage
Lien (subject to Permitted Encumbrances) against each of such parcels securing, inter alia, the Direct Disbursements being made
for the construction of the Improvements thereon.

 

Section
2.          Submissions Required for All Projects. Prior to Borrowing any
Delayed Draw Mortgage Loans the proceeds of which will be used to fund, in whole or in part, any Project with an expected cost (as reasonably
determined by the Borrower Representative) of at least $2,500,000, the applicable Borrowers shall submit to the Administrative Agent:
(a) copies of any contracts with the architects, general contractor, and Major Subcontractors for such Project; (b) if requested by the
Administrative Agent, assignments for the benefit of the Secured Parties of the aforesaid contracts; (c) the Project Budget and Project
Schedule for the Project; (d) the Plans and Specifications for the Project, provided that Plans and Specifications shall not be
required for any Minor Projects that represent renovations to existing buildings and do not have any new construction; (e) evidence of
the existence of builder’s risk and other appropriate insurance coverage for the Project; and (f) evidence of the availability
of utilities, a copy of an approved site plan, and copies of any permits required for the construction of the Project.

 

Section
3.          Advance Procedures for Minor Projects. The Borrowers may requisition
the Administrative Agent for advances of Delayed Draw Mortgage Loans to fund the construction of Minor Projects, which requests shall
be made not more frequently than monthly and upon not less than five (5) Business Days advance written notice to the Administrative Agent.
The Administrative Agent reserves the right to have the Plans and Specifications (if required), the Project Budget, the Project Schedule
and the Project reviewed by an Inspector designated by the Administrative Agent at the Borrowers’ expense and to withhold the funding
of Delayed Draw Mortgage Loans if such review is unfavorable in Administrative Agent’s reasonable judgment. The Administrative
Agent further reserves the right to require the Borrowers to submit such invoices, vouchers, mechanics’ and materialmen’s
waivers and releases pertaining to a Minor Project as the Administrative Agent may reasonably request.

 

Section
4.          Advance Procedures for Major Projects. The advance of Delayed
Draw Mortgage Loans for Major Projects shall be subject to the following requirements and procedures.

 

Section
4.1.       Equity Contribution. Prior to the advance of any Delayed Draw Mortgage Loans
for Project Costs for any Major Project, the applicable Borrowers shall have expended, or have made arrangements satisfactory to the
Administrative Agent for the expenditure of the Equity Contribution, if any, to be funded by the applicable Borrowers.

 

Section
4.2.       Direct Costs. Advances for Direct Costs shall be made in an amount equal to
(a) the percentage of Completion of the Major Project, by line item, as shown on the Project Budget, multiplied by (b) the Delayed Draw
Mortgage Loans reserved for the Direct Costs of the Major Project on the Project Budget, by line item, provided, however, that the Estimated
Remaining Cost of Completion of the Major Project with respect to Direct Costs shall not exceed the sum of the remaining, unadvanced
amount of Delayed Draw Mortgage Loans which remains to be funded under the Project Budget for Direct Costs.

 

Section
4.3.       Indirect Costs. Advances for Indirect Costs for which Delayed Draw Mortgage
Loans have been reserved in the Project Budget shall be made in amounts equal to the amount of Indirect Costs for a particular item or
category of Indirect Costs which have been incurred in connection with the Major Project from the date construction commenced to the
date specified in the requisition, and for which the applicable Borrowers have received invoices or requests for payment, less: (a)  those
sums already advanced by the applicable Borrowers from separate funds for a particular item or category of Indirect Costs; and (b) those
sums which the applicable Borrowers are to advance from separate funds for a particular item or category of Indirect Costs. The Estimated
Remaining Cost of Completion with respect to Indirect Costs for which Delayed Draw Mortgage Loans have been reserved in the Project Budget
shall never exceed the unadvanced amount of Delayed Draw Mortgage Loans reserved therefor.

D-3

 

 

Section
4.4.       Advance Procedure. Advances for Project Costs shall be made not more frequently
than monthly (or such other intervals reasonably acceptable to the Administrative Agent) and upon not less than five (5) Business Days
advance written notice. All requisitions for Direct Costs shall be made on A.I.A. Forms G702 and 703 combined with forms approved
by the Administrative Agent, or alternative forms approved by the Administrative Agent, on which the applicable Borrowers and the Borrowers’
general contractor and architect shall certify the percentage of Completion of the Major Project then attained, by line item. All requisitions
for Indirect Costs shall be made on forms approved by the Administrative Agent, specifying in reasonable detail the Indirect Cost for
which an advance is requested and the amount so requested, and shall be accompanied by evidence acceptable to the Administrative Agent
that the Indirect Cost for which the requisition is made has been incurred and is due and owing, or has been paid. Should the Inspector
determine that the Estimated Remaining Cost of Completion with respect to Project Costs, for which Delayed Draw Mortgage Loans have been
reserved in the Project Budget exceeds the amount of the Delayed Draw Mortgage Loans still available therefor, the applicable Borrowers
shall immediately advance such excess amount from separate funds, and any Delayed Draw Mortgage Loans to be advanced in a particular
requisition for Project Costs shall be reduced by such excess amount, all with the intent that the Estimated Remaining Cost of Completion
with respect to the Project Costs shall not exceed the unadvanced Delayed Draw Mortgage Loans reserved in the Project Budget therefor.
The Administrative Agent shall have the right to reasonably require that any requested advances be disbursed through the applicable title
insurer and to condition any requested advance upon the submission of lien releases and waivers, bring-down endorsements to the applicable
title insurance policies, and such other related submissions as may be reasonably required by the Administrative Agent.

 

Section
4.5.       Final Advance. Prior to the final advance of Delayed Draw Mortgage Loans for
Direct Costs, the applicable Borrowers shall have delivered to the Administrative Agent, in addition to all other required items applicable
to a disbursement hereunder: (a) all occupancy or approval certificates issued or issuable by the Local Jurisdiction; (b) a final, “as
built” location survey, certified by the surveyor and acceptable to the Administrative Agent, showing the location of the Improvements
on the Real Property; (c) an endorsement to the mortgagee’s title insurance policy (if available in the applicable jurisdiction)
to the date of the final disbursement in an amount acceptable to the Administrative Agent, without survey exception or exception as to
mechanics’ or materialmen’s liens, or any other exception objectionable to the Administrative Agent and not contained in
the title insurance policy issued to the Administrative Agent for the benefit of the Secured Parties with respect to the Real Property;
(d) a certification in writing on A.I.A. Form G-704, or on an alternative form approved by the Administrative Agent, by the applicable
Borrowers and the general contractor and architect, if any, as to the Completion of the Improvements; (e) a certification by the Inspector
of the Completion of the Improvements; (f) an affidavit of the Borrowers and the general contractor, listing the names of all mechanics
and materialmen who have supplied labor or material to the Major Project and the payment thereof and, if not previously supplied, a release,
in form and substance satisfactory to the Administrative Agent, by each mechanic or materialman listed in the affidavit, of such mechanic’s
or materialman’s right to file a lien with respect to the Major Project; and (g) such other related submissions as may be reasonably
required by the Administrative Agent or the Required Lenders.

D-4

 

Section
4.6.       Inspections by the Inspector. With respect to any Major Project, the Administrative
Agent reserves the right to retain the services of such professional engineers, consultants and architects to serve as the Inspector
as the Administrative Agent deems from time to time to be necessary and prudent to protect the Credit Parties’ interests (it being
agreed that all reasonable and documented out-of-pocket fees, costs and expenses incurred by such Inspector in accordance with this Section
4.6 shall constitute “Credit Party Expenses” under the Agreement). The Administrative Agent may (i) have each Major
Project inspected at any time or from time to time by the Inspector to assure that the construction of the Improvements is being performed
in a reasonably sound and workmanlike manner and reasonably in accordance with the Plans and Specifications and (ii) have the Inspector
certify as to the percentage of Completion of each Major Project and the Estimated Remaining Cost of Completion of such Major Project
at any time prior to each applicable advance. The applicable Borrowers’ right to receive any advance of Delayed Draw Mortgage Loans
in respect of a Major Project may be conditioned upon receipt by the Administrative Agent of the foregoing inspection reports and certifications.

 

Section
4.7.       Safeguards on Application of Funds. The Administrative Agent may require the
Borrowers at any time or from time to time, as a condition of making advances or further advances of Delayed Draw Loans to: (a) specify
the exact amount of each advance which is to be applied as payment to the various mechanics and materialmen and to supply bills, invoices,
requisitions, or other requests for payment by such mechanics or materialmen to support the amounts so specified and (b) provide such
additional information and submissions as may be reasonably required by the Administrative Agent or the Required Lenders.

    D-5

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