Document:

Exhibit 10.3

 

PROMISSORY NOTE

 

March 7, 2013

USD$1,157,142.86

 

FOR VALUE RECEIVED, Prospect Global Resources Inc., a Nevada corporation (the “Issuer”), promises to pay to the order of Apollo Commodities Management, L.P., a Delaware limited partnership with respect to Series I  (the “Holder”) on September 3, 2013 (the “Maturity Date”), in lawful money of the United States of America in same day funds, $1,157,142.86 (One Million One Hundred Fifty-Seven Thousand One Hundred Forty-Two Dollars and Eighty-Six Cents).  The Issuer shall pay interest on the amount outstanding under this Promissory Note (this “Promissory Note”) and any overdue amounts thereon on the dates and at a rate per annum as hereinafter set forth.  Interest hereunder shall be computed on the basis of a year of 365/366 days and paid for the actual number of days elapsed.

 

1.                                      Payments.  (a)  The Issuer hereby unconditionally promises to pay to the Holder the full amount outstanding under this Promissory Note on the Maturity Date.

 

(b)                                 The Issuer may, by giving not less than three business days’ prior written notice to the Holder, prepay this Promissory Note, in whole or in part, at any time, without premium or penalty.

 

(c)                                  Notwithstanding anything herein to the contrary or otherwise, the Issuer shall be required to prepay this Promissory Note with thirty-three percent (33%) of the net cash proceeds received by the Issuer or any of its direct or indirect subsidiaries from the issuance or incurrence of any indebtedness (including, without limitation, any debt securities), the issuance or sale of any equity interests, or any other financing, in each case after the date hereof, such prepayment to be made no later than five (5) days after the receipt of such net cash proceeds by the Issuer or any of its direct or indirect subsidiaries, as applicable.

 

2.                                      Interest Rate.  This Promissory Note shall bear interest at a rate per annum equal to 11%, payable in cash on the earliest of (i) the date this Promissory Note is prepaid in full or in part, with respect to the principal amount so prepaid, (ii) the Maturity Date or (iii) the date that this Promissory Note otherwise becomes due and payable.  In the case of any overdue amounts of principal or interest, the Issuer shall pay interest on such overdue amounts, on demand by the Holder, at a rate per annum equal to the ordinary interest rate provided above, plus an additional 2.00% per annum.

 

3.                                      Negative Pledge.  The Issuer shall not incur any indebtedness for borrowed money that is secured by a lien on any asset of the Issuer, or guaranteed by any subsidiary of the Issuer, unless, concurrently, the Issuer causes this Promissory Note and the obligations hereunder to be equally and ratably secured by the applicable assets and/or guaranteed by the applicable subsidiary(ies).

 

4.                                      General Provisions Regarding Payments.  The Issuer will pay all amounts due hereunder free and clear of and without reduction for any taxes, levies, imposts, deductions, withholdings or charges and without set-off or counterclaim, in United States Dollars available the same day in New York, New York.

 

 

5.                                      Representations and Warranties.  The Issuer represents and warrants to the Holder:

 

(a)                                 The Issuer is duly organized, validly existing and in good standing under the laws of the State of Nevada and has all requisite power and authority to carry on its business as now conducted and to execute this Promissory Note.

 

(b)                                 The execution, delivery and performance by the Issuer of this Promissory Note is within the Issuer’s corporate powers and has been duly authorized by all necessary corporate action.

 

(c)                                  The execution, delivery and performance by the Issuer of this Promissory Note does not and will not (i) violate (x) any law or governmental rule or regulation applicable to the Issuer, (y) the charter or by-laws (or equivalent documents) of the Issuer, or (z) any, order, judgment or decree of any court or other governmental authority binding on the Issuer; (ii) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any material contractual obligation of the Issuer or any of its direct or indirect subsidiaries; (iii) result in or require the creation or imposition of any lien upon any of the properties or assets of the Issuer or any of its direct or indirect subsidiaries; (iv) require any approval or consent of (A) stockholders, members or partners of the Issuer, or (B) any person under any contractual obligation of the Issuer; or (v) require any registration with, consent or approval of, or notice to, or other action to, with or by, any governmental authority, except for such approvals or consents which have been obtained on or before the date hereof, and solely with respect to clauses (i)(x), (i)(z), (ii), (iv)(B), and (v), except for violations, conflicts, liens, or failure to obtain approvals or consents which would not, individually or in the aggregate, be reasonably expected to impair in any material respect the Issuer’s ability to perform under this Promissory Note.

 

(d)                                 This Promissory Note has been duly executed and delivered by the Issuer and constitutes the legal, valid and binding obligation of the Issuer, as applicable, enforceable in accordance with this Promissory Note’s terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

6.                                      Events of Default.  If any of the following events (“Events of Default”) shall occur and be continuing:

 

(a)                                 the Issuer shall fail to make payment when due, whether at stated maturity, by acceleration or otherwise, of any principal, interest or other amount due hereunder;

 

(b)                                 any representation, warranty, certification or other statement made by the Issuer herein (or in the Termination and Release Agreement, dated as of the date hereof, pursuant to which this Promissory Note is being issued)  shall be false in any material respect as of the date made, or the Issuer shall fail to comply with Section 3 hereof;

 

(c)                                  the Issuer (or any direct or indirect subsidiary thereof) shall default in the payment when due (after giving effect to any applicable grace periods) of any principal of or interest on any indebtedness in excess of $1,000,000; or any event specified in any note,

 

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agreement, indenture or other document evidencing or relating to any indebtedness shall occur if the effect of such event is to cause, or (after giving effect to any applicable grace periods) to permit the holder or holders of such indebtedness (or a trustee or agent on behalf of such holder or holders) to cause, such indebtedness to become due, or to be prepaid in full (whether by redemption, purchase, offer to purchase or otherwise), prior to its stated maturity; provided, however, a default under that certain Senior First Priority Secured Promissory Note, dated as of August 1, 2012, issued by Prospect Global Resources, Inc., a Delaware corporation, in favor of The Karlsson Group, Inc., an Arizona corporation, shall not be deemed an Event of Default unless the indebtedness thereunder shall be accelerated or the holder thereof shall otherwise exercise remedies in respect of such default;

 

(d)                                 any money judgment, writ or warrant of attachment or similar process in any jurisdiction involving in the aggregate at any time an amount in excess of $1,000,000 (to the extent not adequately covered by insurance as to which a solvent and unaffiliated insurance company has acknowledged coverage) shall be entered or filed against the Issuer (or any direct or indirect subsidiary thereof) and shall remain undischarged, unvacated, unbonded or unstayed for a period of 60 days;

 

(e)                                  the Issuer (or any direct or indirect subsidiary thereof) pursuant to or within the meaning of the United States bankruptcy code (or any equivalent or similar law (foreign or domestic)): (i) commences a voluntary case; (ii) consents to the entry of an order for relief against it in any involuntary case; (iii) consents to the appointment of a custodian, conservator, liquidator, sequestrator, receiver, administrator, trustee or other similar official of it or for any substantial part of its property; or (iv) makes a general assignment for the benefit of its creditors or takes any comparable action under any foreign laws relating to insolvency; or

 

(f)                                   a court of competent jurisdiction enters an order or decree under the United States bankruptcy code (or any equivalent or similar law (foreign or domestic)) and the order or decree remains unstayed and in effect for 30 days: (i) for relief against the Issuer (or any direct or indirect subsidiary thereof) in an involuntary case; (ii) appoints a custodian, conservator, liquidator, sequestrator, receiver, administrator, trustee or other similar official of the Issuer (or any direct or indirect subsidiary thereof) or for any substantial part of its property; or (iii) orders the winding up or liquidation of the Issuer (or any direct or indirect subsidiary thereof);

 

THEN, in the case of any Event of Default specified above, the Holder may, by written notice to the Issuer, declare all amounts outstanding under this Promissory Note to be forthwith due and payable, together with accrued interest, whereupon the same shall become forthwith due and payable, without demand, protest, presentment, notice of dishonor or any other notice or demand whatsoever, all of which are hereby waived by the Issuer; provided that in the case of the Events of Default specified in clause (e) or (f) above, without any notice to the Issuer or any other act of the Holder, all amounts outstanding under this Promissory Note shall automatically become forthwith due and payable, together with accrued interest, without demand, protest, presentment, notice of dishonor or any other notice or demand whatsoever, all of which are hereby waived by the Issuer.

 

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7.                                      Notices.  Any notice to be given under this Promissory Note shall be in writing and shall be deemed to have been duly given when received by the recipient.

 

8.                                      No Waiver.  No delay on the part of the Holder in exercising any of its powers or rights, and no partial or single exercise, shall constitute a waiver thereof.

 

9.                                      Amendments and Waivers.  Any provision of this Promissory Note may be amended or waived, but only if such amendment or waiver is in writing and signed by the Holder and the Issuer.

 

10.                               Successors and Assigns.  This Promissory Note shall be binding upon the Issuer and its successors and assigns, for the benefit of the Holder and its successors and assigns, except that the Issuer may not assign or otherwise transfer its rights or obligations under this Promissory Note without the prior written consent of the Holder.  The Holder may at any time assign to one or more persons all or any portion of its rights under this Promissory Note.

 

11.                               Expenses.  The Issuer agrees to pay or reimburse the Holder for all reasonable out-of-pocket costs and expenses of the Holder (including, without limitation, the reasonable fees and expenses of legal counsel) in connection with any Event of Default and any enforcement or collection proceedings resulting therefrom.

 

12.                               GOVERNING LAW.  THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF.

 

13.                               Submission to Jurisdiction.  The Issuer and, by its acceptance of this Promissory Note, the Holder, each agree as follows:

 

(a)                                 each such party hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any federal court sitting in the Southern District of New York  (or, to the extent that subject matter or personal jurisdiction does not exist in any such federal court, then in any New York state court sitting in the Borough of Manhattan in New York, New York; together with such federal courts, the “New York Courts”), and any relevant appellate court, in any action or proceeding arising out of or relating to this Promissory Note, or for recognition or enforcement of any judgment, and each such party hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in the New York Courts; provided that nothing in this Promissory Note shall affect any right that the Holder may otherwise have to bring any action or proceeding relating to this Promissory Note against the other party or its properties in the courts of any other jurisdiction; and

 

(b)                                 each such party hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Promissory Note in any court referred to in subsection (a) of this Section, and each such party also irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of any such suit, action or proceeding in any such court.

 

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14.                               WAIVER OF JURY TRIAL.  THE ISSUER HEREBY WAIVES AND, BY ITS ACCEPTANCE OF THIS NOTE, THE HOLDER HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS PROMISSORY NOTE.

 

15.                               Severability.  If any provision of this Promissory Note is held to be invalid, illegal or unenforceable, the other provisions of this Promissory Note, as the case may be, shall remain in full force and effect.

 

16.                               Usury Savings.  Notwithstanding anything herein to the contrary or otherwise, the Holder shall never be entitled to receive as interest on the obligation evidenced hereby any amount in excess of the maximum rate of interest permitted to be charged by applicable law.  In the event that the Holder ever receives any such excess, such amount which would be excessive interest shall be applied to the reduction of the principal sum hereof, and if the principal sum is paid in full, any remaining excess shall forthwith be paid to the Issuer.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the undersigned has executed this Promissory Note as of the date first written above.

 

	
 
    	
PROSPECT   GLOBAL RESOURCES INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Damon G. Barber
    
	
 
    	
 
    	
Name:   
    	
Damon   G. Barber
    
	
 
    	
 
    	
Title:   
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
Address   for notices:
    
	
 
    	
 
    
	
 
    	
c/o   Apollo Global Management, LLC
    
	
 
    	
9   West 57th Street
    
	
 
    	
New   York, NY 10019
    
	
 
    	
Attention:   Laurie Medley
    
	
 
    	
Facsimile:   (646) 607-0528FIRST
AMENDMENT TO CREDIT AGREEMENT 

 

THIS FIRST AMENDMENT
TO CREDIT AGREEMENT (this “Amendment”) is made as of December 13, 2012, as an amendment to that certain Credit
Agreement dated as of October 26, 2011 among AGREE LIMITED PARTNERSHIP, a Delaware limited partnership,
with an address of 31850 Northwestern Highway, Farmington Hills, Michigan 48334 ("Borrower"), each of the Loan
Parties from time to time party thereto, each lender from time to time party thereto (collectively, the “Lenders”
and individually, a “Lender”), and BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender
and L/C Issuer (as amended, the “Credit Agreement”).

 

RECITALS

 

Borrower and Guarantors
have requested that the Lenders agree to extend the Maturity Date and reduce the Applicable Rate. Borrower and the Lenders have
determined that it is in their respective best interests to so amend the Credit Agreement subject to, the terms and conditions
set forth herein.

 

NOW, THEREFORE, in
consideration of the agreements of the parties set forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.           Definitions.
Administrative Agent, Lenders and Borrower hereby confirm, acknowledge and agree that all references to the “Credit Agreement”
shall mean the Credit Agreement, as amended and modified by this Amendment.

 

2.           Incorporation.
The preambles to this Amendment, together with the Credit Agreement and the other Loan Documents, are fully incorporated herein
by this reference with the same force and effect as though restated herein.

 

3.           Defined
Terms.

 

(a)          To
the extent not otherwise defined herein to the contrary, all terms and phrases used in this Amendment shall have the respective
meanings ascribed to them in the Credit Agreement.

 

(b)          The
following definitions in the Credit Agreement are hereby deleted and replaced with the following:

 

“Applicable
Rate” means the following percentages per annum, based upon the Leverage Ratio as set forth in the most recent Compliance
Certificate received by the Administrative Agent pursuant to Section 7.02(a):

 

    	 

    	 

    

 

	Pricing
 Level	 	Leverage Ratio	 	Applicable
    Margin for
 Eurodollar Loans/Letter of
 Credit Fees	 	Applicable Margin for
 Base Rate Loans
	1	 	< 40%	 	1.50%	 	0.50%
	2	 	≥ 40% but < 50%	 	1.75%	 	0.75%
	3	 	≥ 50%	 	2.15%	 	1.15%

 

Any increase
or decrease in the Applicable Rate resulting from a change in the Leverage Ratio shall become effective as of the first Business
Day immediately following the date a Compliance Certificate is delivered pursuant to Section 7.02(a); provided,
however, that if a Compliance Certificate is not delivered when due in accordance with such Section, then Pricing Level
3 shall apply as of the fifth Business Day after the date on which such Compliance Certificate was required to have been delivered
and shall remain in effect until the date on which such Compliance Certificate is delivered. The Applicable Rate in effect as of
December 13, 2012 shall be determined based upon Pricing Level 1.

 

“Maturity
Date” means the later of (a) October 26, 2015 and (b) if
maturity is extended pursuant to Section 2.15, such extended maturity date as determined pursuant to such Section;
provided, however, that, in each case, if such date is not a Business Day, the
Maturity Date shall be the next preceding Business Day.

 

4.           Defined
Terms. The parties hereby agree that all of the Loan Documents are amended and modified as follows:

 

(a)          The
term "Credit Agreement", as used in the Credit Agreement and the other Loan Documents, shall mean the Credit Agreement,
as amended by this Amendment.

 

(b)          The
term "Loan Documents", as used in the Credit Agreement and the other Loan Documents, shall mean the Loan Documents, as
amended by this Amendment.

 

5.           Conditions.
As a condition precedent to the effectiveness of this Amendment and to Administrative Agent's obligations hereunder, each of the
following conditions precedent shall have been satisfied (as determined by Administrative Agent in its sole and absolute discretion)
as of the date of this Amendment:

 

(a)          All
parties shall have executed and delivered this Amendment.

 

(b)          Administrative
Agent shall have received consents or resolutions, with a certificate of incumbency, from each of Borrower and Guarantors authorizing
the execution and delivery of this Amendment, and any other documents or instruments required or requested by Administrative Agent.

 

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(c)          Administrative
Agent shall have received such other documents or instruments as are required under this Amendment or as may otherwise be requested
by Administrative Agent.

 

(d)          Administrative
Agent shall have been reimbursed by Borrower in the full amount of Administrative Agent's and each Lender's costs and expenses
incurred in connection with this Amendment and the transactions, documents and instruments contemplated hereby, including, without
limitation, reasonable attorneys' fees and expenses.

 

(e)          The
representations and warranties set forth in this Amendment and all of the Loan Documents shall continue to remain true and correct
in all respects.

 

(f)          As
of the date hereof, there shall not have been an Event of Default on the part of Borrower or Guarantors under any of the Loan Documents.

 

The parties agree that
this Amendment will not be binding upon or enforceable against Administrative Agent or Lenders until such time as each of the conditions
precedent set forth above have been satisfied in Administrative Agent's sole and absolute determination, and then only after Borrower
and Guarantors have has fully complied with all of the other terms and conditions set forth in this Amendment.

 

6.           Representations
and Warranties. Borrower and Guarantors each hereby represents, warrants and covenants with Administrative Agent and Lenders
that:

 

(a)          The
Loan Documents are in full force and effect and have not been modified, amended or changed, except as expressly provided in this
Amendment.

 

(b)          As
of the date hereof, there are no charges, liens, claims, defenses or setoffs in favor of Borrower or Guarantors under any of the
Loan Documents, including, without limitation, any charges, liens, claims, defenses or setoffs under or against the validity or
enforceability of any of the Loan Documents in accordance with their respective terms.

 

(c)          All
of the representations, warranties and covenants of Borrower and Guarantors set forth in the Loan Documents, as any of such Loan
Documents may have been modified by this Amendment, are complete and correct as of the date hereof.

 

(d)          As
of the date hereof, there has been no Event of Default and there are no state of facts that, with the giving of notice or the passage
of time, or both, could become an Event of Default on the part of Borrower or Guarantors under any of the Loan Documents.

 

7.           No
Novation. This Amendment does not constitute the creation of a new debt or the extinguishment of the debt evidenced by the
Note. Nothing contained in this Amendment is intended to effectuate, nor shall this Amendment be construed to effectuate, a novation
or an accord and satisfaction of any of the indebtedness outstanding under the Note of the other Loan Documents.

 

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8.            Affirmation
of Guaranties. Guarantors do hereby consent to the execution and delivery by Borrower of this Amendment. Borrower and Guarantors
hereby agree that all of the guarantees, terms, covenants, conditions, representations and warranties as set forth in the Guaranties
are in full force and effect, and Guarantors hereby affirm and confirm their obligations, guarantees and liabilities under the
Guaranties. Further, Guarantors represent and warrant that they have no claims or defenses to the enforcement of the rights and
remedies under the Guaranties, except as may be expressly provided in the Guaranties.

 

9.            Further
Assurances. Borrower and Guarantors hereby agree to execute and deliver promptly to Administrative Agent, at Administrative
Agent's request, such other documents as Administrative Agent deems necessary or appropriate to evidence the modification of the
Credit Agreement contemplated herein.

 

10.          Expenses.
All expenses incurred by Administrative Agent, Lenders, Borrower and Guarantors incident to the transactions contemplated herein,
including, without limitation, reasonable legal and other expenses, shall be borne and paid by Borrower.

 

11.          Full
Force and Effect. Except as expressly modified and amended hereby, the Credit Agreement and the other Loan Documents shall
continue in full force and effect and, as thus modified and amended, are hereby ratified, confirmed and approved. In
the event of any conflict between the terms in this Amendment and in the Credit Agreement or the other Loan Documents, the terms
of this Amendment shall control.

 

12.          Binding
Effect. This Amendment applies to, inures to the benefit of and is binding upon the parties hereto, and upon their respective
successors and assigns.

 

13.          Counterparts,
Integration; Effectiveness. This Amendment 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 document. This Amendment
shall become effective when it shall have been executed by Administrative Agent and when 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 Amendment by telecopy or other electronic imaging means shall be effective as delivery
of a manually executed counterpart of this Amendment.

 

14.          Governing
Law; Jurisdiction; Etc.

 

(a)           GOVERNING
LAW. THIS AMENDENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK OTHER THAN THE
CHOICE OF LAWS PROVISIONS THEREOF (OTHER THAN SECTION 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

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(b)           SUBMISSION
TO JURISDICTION. BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS,
FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF 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, IN ANY ACTION OR PROCEEDING ARISING OUT OF
OR RELATING TO THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES
HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING 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 AMENDMENT OR IN
ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT ADMINISTRATIVE AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR
PROCEEDING RELATING TO THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT AGAINST BORROWER OR ANY OTHER LOAN
PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

(c)           WAIVER
OF VENUE. BORROWER AND EACH OTHER LOAN PARTY 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 AMENDMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B)
OF THIS SECTION. 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.

 

(d)           SERVICE
OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 11.02
IN THE CREDIT AGREEMENT. NOTHING IN THIS AMENDMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY APPLICABLE LAW.

 

15.          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 AMENDMENT OR ANY
OTHER LOAN 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 AMENDMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

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16.          Waiver
of Claims. Borrower and Guarantors each acknowledges, confirms and agrees that it has no offsets, defenses, claims or counterclaims
against Administrative Agent or any Lender with respect to any of its liabilities and obligations to Administrative Agent and Lenders
under the Credit Agreement, the Revolving Credit Loan or this Amendment, and to the extent that any such party has any such claims
under the Credit Agreement, the Revolving Credit Loan or this Amendment, Borrower and Guarantors each affirmatively WAIVES and
RENOUNCES such claims as of the date hereof.

 

17.          Final
Agreement. THIS AMENDMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK]

 

[SIGNATURE PAGES FOLLOW]

 

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IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed as of the date first above written.

 

	 	BORROWER:
	 	 
	 	AGREE LIMITED PARTNERSHIP, a Delaware limited partnership
	 	 	 
	 	By:	Agree Realty Corporation, a Maryland corporation, its Sole General Partner
	 	 	 
	 	 	By:	/s/ Joel N. Agree
	 	 	 	Joel N. Agree, President

 

[SIGNATURES CONTINUE ON FOLLOWING PAGES]

 

[Borrower Signature Page to Agree First
Amendment to Credit Agreement]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed as of the date first above written.

 

	 	GUARANTOR:
	 	 
	 	PARENT GUARANTOR:
	 	 
	 	AGREE REALTY CORPORATION, a
    Maryland corporation
	 	 
	 	By:	/s/ Joel N. Agree
	 	 	Joel N. Agree, President
	 	 	 
	 	SUBSIDIARY GUARANTOR:
	 	 
	 	AGREE LOWELL, LLC, a Delaware
    limited liability company
	 	 	 
	 	By:	Agree Limited Partnership, a Delaware limited partnership, its Sole Member
	 	 	 
	 	 	By:	Agree Realty Corporation, a Maryland corporation, its Sole General Partner
	 	 	 	 
	 	 	 	By:	/s/ Joel N. Agree
	 	 	 	 	Joel N. Agree, President
	 	 	 	 	 
	 	AGREE PLAINFIELD, LLC, a Michigan
    limited liability company
	 	 	 	 	 
	 	By:	Agree Limited Partnership, a Delaware limited partnership, its Sole Member
	 	 	 	 	 
	 	 	By:	Agree Realty Corporation, a Maryland corporation, its Sole General Partner
	 	 	 	 	 
	 	 	 	By:	/s/ Joel N. Agree
	 	 	 	 	Joel N. Agree, President

 

[SIGNATURES CONTINUE ON FOLLOWING PAGES]

 

[Guarantor Signature Page to Agree First
Amendment to Credit Agreement]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.

 

	 	SUBSIDIARY
    GUARANTOR:
	 	 
	 	MT.
    PLEASANT SHOPPING CENTER LLC, a Michigan limited liability company
	 	 	 	 	 
	 	By:	Agree Limited Partnership, a Delaware limited partnership,
    its Sole Member
	 	 	 	 	 
	 	 	By:	Agree Realty Corporation,
    a Maryland corporation, its Sole General Partner
	 	 	 	 	 
	 	 	 	By:	/s/
    Joel N. Agree
	 	 	 	 	Joel N. Agree, President
	 	 	 	 	 
	 	AGREE
    CONCORD, LLC, a North Carolina limited liability company
	 	 	 	 	 
	 	By:	Agree Limited Partnership,
    a Delaware limited partnership, its Sole Member
	 	 	 	 
	 	 	By:	Agree Realty Corporation,
    a Maryland corporation, its Sole General Partner
	 	 	 	 	 
	 	 	 	By:	/s/
    Joel N. Agree
	 	 	 	 	Joel N. Agree, President
	 	 	 	 	 
	 	AGREE
    LAKE IN THE HILLS, LLC, an Illinois limited liability company
	 	 	 
	 	By:	Agree Limited Partnership,
    a Delaware limited partnership, its Sole Member
	 	 	 	 	 
	 	 	By:	Agree Realty Corporation,
    a Maryland corporation, its Sole General Partner
	 	 	 	 	 
	 	 	 	By:	/s/
    Joel N. Agree
	 	 	 	 	Joel N. Agree, President

  

[SIGNATURES CONTINUE ON FOLLOWING PAGES]

 

[Guarantor Signature Page to Agree First
Amendment to Credit Agreement]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed as of the date first above written.

 

	 	SUBSIDIARY GUARANTOR:
	 	
	 	AGREE ATCHISON,
    LLC, a Kansas limited liability company
	 	 	 
	 	By:	Agree Limited Partnership, a Delaware limited partnership, its Sole Member
	 	 	 	 	 
	 	 	By:	Agree Realty Corporation, a Maryland corporation, its Sole General Partner
	 	 	 	 	 
	 	 	 	By: 	/s/ Joel N. Agree
	 	 	 	 	Joel N. Agree, President

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE] 

 

[Guarantor Signature Page to Agree First
Amendment to Credit Agreement]

 

    	 

    	 

    

  

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed as of the date first above written.

 

	 	bank of america, n.a., Administrative Agent
	 	 	 
	 	By:	/s/ Shannon R. Westberg
	 	Name:	Shannon R. Westberg
	 	Title:	SVP

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

[Administrative Agent Signature Page to Agree First Amendment
to Credit Agreement]

 

    	 

    	 

    

 

	 	bank of america, n.a., as a Lender, L/C Issuer and Swing Line Lender
	 	 	 
	 	By:	/s/ Shannon R. Westberg
	 	 	 
	 	Name:	Shannon R. Westberg
	 	 	 
	 	Title:	SVP

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

    	12

    	 

    

 

 

	 	PNC BANK, NATIONAL ASSOCIATION, as a Lender
	 	 	 
	 	By: 	/s/ David C. Drouillard
	 	 	 
	 	Name: 	David C. Drouillard
	 	 	 
	 	Title: 	Vice President

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

    	13

    	 

    

 

	 	BANK OF MONTREAL, CHICAGO BRANCH, as a Lender
	 	 	 
	 	By:	/s/ Aaron Lanski
	 	 	 
	 	Name:	Aaron Lanski
	 	 	 
	 	Title:	Managing Director

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

    	14

    	 

    

 

	 	US BANK NATIONAL ASSOCIATION,
    as a Lender
	 	 	 
	 	By:	/s/ Anthony J. Mathena
	 	 	 
	 	Name:	Anthony J. Mathena
	 	 	 
	 	Title:	Vice President

 

    	15

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