Document:

Exhibit 10.1

 

Execution Version

 

 

 

CREDIT AND GUARANTY AGREEMENT

 

by and among

 

HUNT COMPANIES FINANCE TRUST, INC.

 

as Borrower,

 

FIVE OAKS ACQUISITION CORP. AND HUNT CMT
EQUITY, LLC

 

as Guarantors,

 

THE LENDERS PARTIES HERETO FROM TIME TO
TIME

 

as the Lenders,

 

CORTLAND CAPITAL MARKET SERVICES LLC,

 

together with its successors and assigns

 

as the Administrative Agent

 

and

 

CORTLAND CAPITAL MARKET SERVICES LLC,

 

together with its successors and assigns

 

as the Collateral Agent

 

Dated as of January 15, 2019

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	Article I DEFINITION AND CONSTRUCTION	1
	 	 	 
	1.1	Definitions	1
	1.2	Construction	36
	1.3	Accounting Terms; GAAP; Pro Forma Calculations	37
	 	 	 
	Article II AMOUNT AND TERMS OF LOANS	37
	 	 	 
	2.1	Credit Facilities	37
	2.2	[Reserved]	37
	2.3	Interest Rates; Payment of Principal and Interest	37
	2.4	Computation of Interest and Fees; Maximum Interest Rate	39
	2.5	Request for Borrowing	40
	2.6	[Reserved]	43
	2.7	Repayment of Borrowings	43
	2.8	Prepayments	43
	2.9	Fees	44
	2.10	Maintenance of Loan Account; Statements of Obligations	44
	2.11	Increased Costs	45
	2.12	[Reserved]	45
	2.13	Funding Sources	45
	2.14	Place of Loans	46
	2.15	Incremental Term Loans	46
	2.16	Mitigation of Obligations	49
	2.17	Pro Rata Treatment	49
	 	 	 
	Article III CONDITIONS TO LOANS	49
	 	 	 
	3.1	Conditions Precedent to the Initial Term Loan	49
	3.2	Conditions Precedent to All Loans	51
	3.3	Maturity Date	52
	 	 	 
	Article IV REPRESENTATIONS AND WARRANTIES OF THE BORROWER	52
	 	 	 
	4.1	Due Organization	52
	4.2	Securities and Subsidiaries	52
	4.3	Requisite Power and Authorization	52
	4.4	Binding Agreements	53
	4.5	Other Agreements	53
	4.6	Litigation:  Adverse Facts and Compliance with Laws	53
	4.7	Government Consents	54
	4.8	Title to Assets; Liens	54
	4.9	ERISA	54

 

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TABLE OF CONTENTS

(continued)

 

	4.10	Payment of Taxes	55
	4.11	Governmental Regulation	55
	4.12	Disclosure	55
	4.13	Debt	55
	4.14	Existing Defaults	56
	4.15	No Material Adverse Effect	56
	4.16	Security Documents	56
	4.17	Solvency	56
	4.18	Use of Proceeds	56
	4.19	Anti-Corruption and Anti-Money Laundering Laws and Sanctions	57
	4.20	REIT Status; Loan Party Tax Status	57
	4.21	Ownership	57
	4.22	Borrower Financial Covenants	57
	 	 	 
	Article V AFFIRMATIVE COVENANTS OF THE BORROWER	57
	 	 	 
	5.1	Accounting Records and Inspection	57
	5.2	Financial Statements	58
	5.3	Certificates; Other Information	58
	5.4	Existence	59
	5.5	Payment of Taxes and Claims	59
	5.6	Compliance with Laws and Material Contractual Obligations	60
	5.7	Further Assurances	60
	5.8	Payment of Obligations	60
	5.9	Maintenance of Insurance	60
	5.10	Maintenance of Property and Licenses	60
	5.11	Covenant to Guarantee Obligations and Give Security	61
	5.12	ERISA	61
	5.13	Post-Closing Items	61
	5.14	REIT Status.	61
	5.15	Cash Management	61
	 	 	 
	Article VI NEGATIVE COVENANTS OF THE BORROWER	61
	 	 	 
	6.1	Debt	61
	6.2	Liens	64
	6.3	Debt Prepayments	65
	6.4	Dividends	65
	6.5	Restriction on Fundamental Changes	65
	6.6	Sale of Assets	66
	6.7	Transactions with Shareholders and Affiliates	66
	6.8	Conduct of Business	67
	6.9	Amendments or Waivers of Certain Documents; Actions Requiring the Consent of the Agents	67
	6.10	Limitation on Negative Pledges	67
	6.11	Margin Regulation	68
	6.12	Financial Covenants	68

 

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TABLE OF CONTENTS

(continued)

 

	6.13	Plans	69
	6.14	Change of Servicer and Special Servicer	69
	 	 	 
	Article VII EVENTS OF DEFAULT AND REMEDIES	69
	 	 	 
	7.1	Events of Default	69
	7.2	Remedies	72
	7.3	Borrower’s Right to Cure	73
	 	 	 
	Article VIII EXPENSES AND INDEMNITIES	73
	 	 	 
	8.1	Expenses	73
	8.2	Indemnity	74
	 	 	 
	Article IX ASSIGNMENT AND PARTICIPATIONS	74
	 	 	 
	9.1	Successors and Assigns Generally	75
	 	 	 
	Article X AGENT; THE LENDER GROUP	80
	 	 	 
	10.1	Appointment and Authorization of Agent	80
	10.2	Delegation of Duties	81
	10.3	General Immunity	81
	10.4	Reliance by Agent	82
	10.5	Knowledge of Defaults/Events of Default	83
	10.6	Credit Decision	83
	10.7	Costs and Expenses; Indemnification	84
	10.8	Agent in Individual Capacity	84
	10.9	Successor Agent	85
	10.10	Lender in Individual Capacity	86
	10.11	Withholding Taxes	86
	10.12	Collateral and Guarantor Matters	89
	10.13	Restrictions on Actions by Lenders; Sharing of Payments	91
	10.14	Agency for Perfection	91
	10.15	Payments by Agent to the Lenders	92
	10.16	Concerning the Collateral and Related Loan Documents	92
	10.17	Field Examinations and Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information	92
	10.18	Several Obligations; No Liability	93
	10.19	[Reserved]	93
	10.20	Representations and Warranties of each Agent	93
	 	 	 
	Article XI MISCELLANEOUS	94
	 	 	 
	11.1	No Waivers, Remedies	94
	11.2	Waivers and Amendments	94
	11.3	Notices	96
	11.4	Release of Borrowing Base Eligible Assets	96

 

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TABLE OF CONTENTS

(continued)

 

	11.5	Valuation Confirmation Process	96
	11.6	Headings	98
	11.7	Execution in Counterparts; Effectiveness	98
	11.8	GOVERNING LAW	98
	11.9	JURISDICTION AND VENUE	99
	11.10	WAIVER OF TRIAL BY JURY	99
	11.11	Independence of Covenants	99
	11.12	Confidentiality	100
	11.13	Complete Agreement	100
	11.14	Severability	101
	11.15	PATRIOT Act Notice	101
	 	 	 
	Article XII THE GUARANTY	101
	 	 	 
	12.1	The Guarantee	101
	12.2	Obligations Unconditional	102
	12.3	Reinstatement	103
	12.4	Certain Additional Waivers	103
	12.5	Remedies	104
	12.6	Rights of Contribution	104
	12.7	Guaranty of Payment; Continuing Guarantee	104
	12.8	Representations and Warranties of each Guarantor	104

 

    	 	- 4 -	 

     

    

 

CREDIT AND GUARANTY AGREEMENT

 

THIS CREDIT AND GUARANTY
AGREEMENT, dated as of January 15, 2019, is entered into by and among, on the one hand, the lenders identified on the signature
pages hereof, CORTLAND CAPITAL MARKET SERVICES LLC (“Cortland”), as the administrative agent for the
Lenders (in such capacity, together with its successors and permitted assigns in such capacity, “Administrative Agent”),
and as the collateral agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity,
“Collateral Agent” and, together with the Administrative Agent, the “Agents”), and, on the
other hand, HUNT COMPANIES FINANCE TRUST, INC., a Maryland corporation (“Borrower”), FIVE OAKS ACQUISITION
CORP., a Delaware corporation (“FOAC”), HUNT CMT EQUITY, LLC, a Delaware limited liability company
(“Hunt CMT Equity” and together with FOAC, the “Guarantors” and each individually a “Guarantor”).

 

The parties agree as
follows:

 

Article
I

 

DEFINITION AND CONSTRUCTION

 

1.1           Definitions.
For purposes of this Agreement (as defined below), the following initially capitalized terms shall have the following meanings:

 

“Additional
Lender” has the meaning set forth in Section 2.15(b).

 

“Adjusted
EBITDA” means, for any period, for Borrower and its Subsidiaries on a consolidated basis, an amount equal to (a) GAAP
net income plus (i) realized and unrealized losses, (ii) interest expenses, (iii) depreciation and amortization, (iv) taxes, (vi)
other non-cash expenses considered to be non-operating in nature minus (b)(i) interest expense on warehousing debt and securitizations
and (ii) realized and unrealized gains.

 

“Administrative
Agent” has the meaning set forth in the preamble to this Agreement.

 

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

 

“Affiliate”
means, with respect to any Person, any other Person which, directly or indirectly, controls, is controlled by, or is under common
control with, such Person. For purposes of this definition, “control” (together with the correlative meanings of “controlled
by” and “under common control with”) means possession, directly or indirectly, of the power (a) to vote 15% or
more of the securities (on a fully diluted basis) having ordinary voting power for the directors or managing general partners (or
their equivalent) of such Person, or (b) to direct or cause the direction of the management or policies of such Person, whether
through the ownership of voting securities, by contract, or otherwise; provided, that no issuer of a Specified Third Party
Securitization shall be considered an “Affiliate” of such Person; provided, further, that Hunt Investment
Management, LLC and its affiliates shall not be considered an “Affiliate” of the Borrower or any of its subsidiaries.

 

    	 	- 1 -	 

     

    

 

“Agency”
means The Federal National Mortgage Association, The Federal Home Loan Mortgage Corporation, The Government National Mortgage Association,
the Federal Housing Administration, a division of HUD, and including the Federal Housing Commissioner and the Secretary of HUD
where appropriate under the FHA Regulations, United States Department of Housing and Urban Development, Consumer Financial Protection
Bureau, an agency of the United States, the U.S. Department of Veterans Affairs, an executive branch department of the United States
of America headed by the Secretary of Veterans Affairs, or any successor of the foregoing.

 

“Agent”
or “Agents” has the meaning set forth in the preamble to this Agreement.

 

“Agent’s
Account” means a Deposit Account as designated in writing by the applicable Agent to the Borrower and the Lenders form
time to time.

 

“Agent Fee
Letter” means that certain fee letter agreement dated as of the Closing Date by and between Borrower and Cortland.

 

“Agent-Related
Persons” means any Agent, together with its Affiliates, partners, directors, officers, employees, agents, trustees, administrators,
managers, advisors and representatives.

 

“Agreement”
means this Credit and Guaranty Agreement by and among the Borrower, the Guarantors, the Lenders and the Agents, together with all
exhibits and schedules hereto.

 

“Anticipated
Repayment Date” means, the five-year anniversary of the Closing Date.

 

“Anti-Corruption
Laws” means all laws, rules, and regulations of any jurisdiction applicable to any Loan Party from time to time concerning
or relating to bribery or corruption, including without limitation the United States Foreign Corrupt Practices Act of 1977, as
amended and other similar legislation in any other jurisdictions.

 

“Anti-Money
Laundering Laws” means applicable laws or regulations in any jurisdiction in which the Borrower or any Loan Party is
located or doing business that relates to money laundering, any predicate crime to money laundering, or any financial record keeping
and reporting requirements related thereto.

 

“Applicable
Advance Rate” means, for each Borrowing Base Eligible Asset, the percentage as set forth below:

 

	Senior Commercial Real Estate Loan	 	 	 	 
	 	 	 	 	 
	Multi-Family:	 	 	80	%
	 	 	 	 	 
	Non-Multi-Family:	 	 	75	%
	 	 	 	 	 
	Senior Commercial Real Estate Construction Loan	 	 	 	 
	 	 	 	 	 
	Multi-Family:	 	 	65	%
	 	 	 	 	 
	Non-Multi-Family:	 	 	60	%
	 	 	 	 	 
	Subordinated Commercial Real Estate Loan:	 	 	50	%
	 	 	 	 	 
	Preferred Equity Investment:	 	 	45	%
	 	 	 	 	 
	Borrowing Base Subsidiary and Borrowing Base Debt Subsidiary:	 	 	50	%
	 	 	 	 	 
	Initial MSRs:	 	 	40	%
	 	 	 	 	 
	MSRs (other than Initial MSRs):	 	 	50	%
	 	 	 	 	 
	Cash:	 	 	100	%

 

    	 	- 2 -	 

     

    

 

The Applicable Advance
Rate for a Borrowing Base Eligible Asset comprised of equity interests in a Borrowing Base Subsidiary (other than a Borrowing Base
Debt Subsidiary) shall be determined and applied with respect to each Mortgage Asset held by such Borrowing Base Subsidiary based
on the Applicable Advance Rates applicable to such type of Mortgage Asset as set forth above.

 

“Application
Event” means the occurrence of (a) a failure by the Borrower to repay in full all of the Obligations on the Maturity
Date, or (b) an Event of Default and the election by the Required Lenders to require that payments and Proceeds of Collateral be
applied pursuant to Section 2.3(a)(ii)(E) and (F) of this Agreement.

 

“Approved
Fund” means any fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender, (c) an entity or
an Affiliate of an entity that administers or manages a Lender or (d) an entity that is managed or advised by the investment manager
or investment advisor of a Lender.

 

“Asset”
means any interest of a Person in any kind of property or asset, whether real, personal, or mixed real and personal, or whether
tangible or intangible; provided, that “Assets” shall be determined without regard to the effects of consolidation
of any issuer of a Specified Third Party Securitization on the financial statements of such Person under Accounting Standards Codification
Section 810, as amended, modified or supplemented from time to time, or otherwise under GAAP.

 

“Asset Coverage
Ratio” means, as of any date of determination, the ratio of (a) the Borrowing Base to (b) the aggregate principal amount
of funded and outstanding Loans.

 

“Assigned
Value” means, as of any date of determination, as to any single asset included as a Borrowing Base Eligible Asset, the
value of such Borrowing Base Eligible Asset as of such date of determination as set forth below:

 

		(a)	at any time prior to the occurrence of a VAE:

 

    	 	- 3 -	 

     

    

 

		(i)	which is a Mortgage Asset shall, in each case, be the current
outstanding principal balance of such Borrowing Base Eligible Asset (not taking into account any amounts held in reserves in respect
of such Mortgage Asset);

 

		(ii)	which is comprised of the equity interests of a Borrowing
Base Debt Subsidiary shall be the excess of (A) the current outstanding principal balance of the Mortgage Assets held by such
Borrowing Base Debt Subsidiary plus any restricted cash held in the Borrowing Base Debt Subsidiary (not taking into account any
amounts held in reserves) over (B) the current outstanding principal balance of the associated Warehousing Debt, Securitization
Indebtedness and/or all other debt outstanding owed related to such Mortgage Assets (not taking into account any amounts held
in reserves in respect of the related Mortgage Assets); provided, that only debt to unaffiliated third parties shall be taken
into account for purposes of clause (B) so long as any debt owed to Affiliates of the Borrower is pledged as Collateral (directly
or indirectly) to the Collateral Agent for the benefit of the Lenders;

 

		(iii)	which is comprised of the equity interests of a Borrowing
Base Subsidiary that is not a Borrowing Base Debt Subsidiary, shall be the current outstanding principal balance of the Mortgage
Assets held by such Borrowing Base Subsidiary (not taking into account any amounts held in reserves in respect of the related
Mortgage Assets, outstanding Debt and other liabilities);

 

		(iv)	which are MSRs, the aggregate fair market value of such
MSRs, determined by the MSR Valuation Agent, on a quarterly basis (which market value shall be subject to the Valuation Confirmation
Process, except that (1) any valuations shall be provided by a MSR Valuation Agent and (2) such Valuation Confirmation Process
shall occur regardless of whether or not a VAE has occurred); and

 

		(v)	for all other Borrowing Base Eligible Assets, the current
outstanding principal balance of such Borrowing Base Eligible Assets (not taking into account any amounts held in reserves in
respect of such Borrowing Base Eligible Assets, outstanding Debt and other liabilities).

 

(b)          At
any time following the occurrence of a VAE, the “Assigned Value” in respect of any Borrowing Base Eligible Asset:

 

		(i)	which is either a Subordinated Commercial Real Estate Loan
or Preferred Equity Investment and has experienced a VAE under clause (i) or (ii) of the definition thereof, for
the first thirty (30) days after the VAE, 50% times the Assigned Value determined pursuant to clause (a)(i) above and,
thereafter for so long as such VAE continues to apply, zero (unless a valuation by a Valuation Agent has been obtained by the
Borrower, in which case, the Assigned Value shall be the product of (1) Determined Valuation of the underlying mortgaged
property multiplied by (2) the loan to value ratio of such Borrowing Base Eligible Asset as of its origination date);

 

    	 	- 4 -	 

     

    

 

		(ii)	which is either a Subordinated Commercial Real Estate Loan
or Preferred Equity Investment and has experienced a VAE under clause (iii), (iv) or (vi) of the definition
thereof, for the first thirty (30) days after the VAE, 75% times the Assigned Value determined pursuant to clause (a)(i)
above and, thereafter for so long as such VAE continues to apply, zero (unless a valuation by a Valuation Agent has been obtained
by the Borrower, in which case, the Assigned Value shall be the product of (1) Determined Valuation of the underlying mortgaged
property multiplied by (2) the loan to value ratio of such Borrowing Base Eligible Asset as of its origination date);

 

		(iii)	which is comprised of the equity interests of a Borrowing
Base Debt Subsidiary and has experienced a VAE under clause (i) or (ii) of the definition thereof (and which Assigned
Value shall only be applied to the particular underlying Mortgage Asset(s) which has experienced a VAE), for the first thirty
(30) days after such VAE, 50% times the Assigned Value determined pursuant to clause (a)(ii) above and, thereafter for
so long as such VAE continues to apply, zero (unless a valuation by a Valuation Agent has been obtained by the Borrower with respect
to each affected Mortgage Asset, in which case, the Assigned Value shall be determined in accordance with clause (a)(ii)
above with respect to the affected Mortgage Assets except that the following calculation shall be used for purposes of clause
(a)(ii)(A) above: the product of (1) Determined Valuation multiplied by (2) loan to value ratio of such Borrowing Base Eligible
Asset as of its origination date);

 

		(iv)	which is comprised of the equity interests of a Borrowing
Base Debt Subsidiary and has experienced a VAE under clause (v) of the definition thereof, clause (vi) of the definition
thereof (but only to the extent the occurrence of a material modification of an Borrowing Base Eligible Asset or a Mortgage Asset
held by a Borrowing Base Debt Subsidiary results in a modification that has a material adverse effect on such Borrowing Base Debt
Subsidiary) or clause (vii) of the definition thereof, for the first thirty (30) days after such VAE, 75% times the Assigned
Value determined pursuant to clause (a)(ii) above and, thereafter for so long as such VAE continues to apply, zero (unless
a valuation by a Valuation Agent has been obtained by the Borrower with respect to each affected Mortgage Asset, in which case,
the Assigned Value shall be determined in accordance with clause (a)(ii) above with respect to the affected Mortgage Assets
except that the following calculation shall be used for purposes of clause (a)(ii)(A) above: the product of (1) Determined
Valuation of the underlying mortgaged property multiplied by (2) the loan to value ratio of such Borrowing Base Eligible Asset
as of its origination date);

 

		(v)	which is comprised of the equity interests of a Borrowing
Base Subsidiary that is not a Borrowing Base Debt Subsidiary (and which Assigned Value shall be applied only to the particular
underlying Mortgage Asset(s) which has experienced a VAE), the Assigned Value shall be determined and applied with respect to
each Mortgage Asset held by such Borrowing Base Subsidiary based on clauses (i), (ii), (iii), (vi)
and (vii) of this section (b);

 

    	 	- 5 -	 

     

    

 

		(vi)	which is either a Senior Commercial Real Estate Loan, a
Senior Commercial Real Estate Construction Loan and has experienced a VAE, for the first thirty (30) days after the VAE, 90% times
the Assigned Value determined pursuant to clause (a)(i) above, between thirty-one (31) days after the VAE and sixty (60)
days after the VAE, 80% times the Assigned Value determined pursuant to clause (a)(i) above, between sixty-one (61) days
after the VAE and ninety (90) days after the VAE, 70% times the Assigned Value determined pursuant to clause (a)(i) above
and, thereafter for so long as such VAE continues to apply, zero (unless a valuation by a Valuation Agent has been obtained by
the Borrower, in which case, the Assigned Value shall be the product of (1) Determined Valuation of the underlying mortgaged property
multiplied by (2) the loan to value ratio of such Borrowing Base Eligible Asset as of its origination date); and

 

		(vii)	which is comprised of any Borrowing Base Eligible Asset
that is not covered under clauses (i) through (vi) above and has experienced a VAE, for the first thirty (30) days
after the VAE, 75% times the Assigned Value determined pursuant to clause (a) above and, thereafter for so long as such
VAE continues to apply, zero (unless a valuation by a Valuation Agent has been obtained by the Borrower, in which case, the Assigned
Value shall be the product of (1) Determined Valuation of the underlying asset multiplied by (2) the loan to value ratio of such
Borrowing Base Eligible Asset as of its origination date).

 

For avoidance of doubt,
a Mortgage Asset in a Borrowing Base Debt Subsidiary which has experienced a VAE will only trigger a VAE for that individual Mortgage
Asset and not for the entire Borrowing Base Debt Subsidiary.

 

“Assignment
and Acceptance” means an Assignment and Acceptance Agreement substantially in the form of Exhibit A-1 or such
other form approved by the Administrative Agent.

 

“B Note”
means a promissory note secured by a mortgage on multi-family or commercial real estate property, which note is subordinate in
right of payment to one or more separate promissory notes secured by the same property.

 

“Bankruptcy
Code” means title 11 of the United States Code, 11 U.S.C. §§ 101 et seq., as amended or supplemented
from time to time, and any successor statute, and all of the rules and regulations issued or promulgated in connection therewith.

 

“Bankruptcy
Plan” has the meaning set forth in Section 9.1(f)(iii).

 

“Basel III”
means the agreements on capital requirements, leverage ratio and liquidity standards contained in “Basel III: A global regulatory
framework for more resilient banks and banking systems”, “Basel III: International framework for liquidity risk measurement,
standards and monitoring” and “Guidance for national authorities operating the countercyclical capital buffer”
published by the Basel Committee on Banking Supervision on 16 December 2010, each as amended, supplemented or restated.

 

    	 	- 6 -	 

     

    

 

“Board of
Directors” means, as to any Person, the board of directors (or comparable managers) of such Person, or any committee
thereof duly authorized to act on behalf of the board of directors (or comparable managers).

 

“Board of
Governors” means the Board of Governors of the Federal Reserve System of the United States of America, or any successor
thereto.

 

“Borrower”
has the meaning set forth in the introduction to this Agreement.

 

“Borrower
Affiliate” means any Affiliate of the Borrower (other than 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 Borrower and its Subsidiaries).

 

“Borrower
DACA” means the deposit account control agreement by and among the Borrower, Wells Fargo and the Collateral Agent with
respect to the Borrower’s deposit account number              .

 

“Borrower
Financial Covenants” shall mean the covenants set forth in Section 6.12.

 

“Borrowing
Base” means, as of any date of determination, the sum of the Borrowing Base Value of each Borrowing Base Eligible Asset
as of such date as determined by the most recent Borrowing Base Certificate and adjusted as reflected in any Determined Valuation;
provided that, at the time of origination or purchase by the Borrower or its Subsidiaries of a Borrowing Base Eligible Asset,
the allocated Borrowing Base Value of any single property underlying any Borrowing Base Eligible Asset shall not comprise in excess
of 10.0% of the total Borrowing Base Value of all Borrowing Base Eligible Assets (and any such excess shall be disregarded for
purposes of determining the Borrowing Base); provided, further, that the Borrowing Base shall be recalculated on
(i) the last day of each fiscal quarter, (ii) the date on which any Loan is requested and (iii) the date on which the Borrower
has actual knowledge of a VAE.

 

“Borrowing
Base Certificate” means a certificate, signed and certified as accurate and complete by a Responsible Officer of the
Borrower, in substantially the form of Exhibit B-1.

 

“Borrowing
Base Debt Subsidiary” means any Subsidiary of the Borrower that has associated Warehousing Debt, Securitization Indebtedness
or other debt outstanding.

 

“Borrowing
Base Deficiency” means the circumstance that exists in the event that the outstanding aggregate principal amount of the
Loans outstanding under this Agreement exceeds the Borrowing Base on any date of determination.

 

“Borrowing
Base Eligibility Criteria” means,

 

(a)           with
respect to an asset which the Borrower represents and warrants is a Borrowing Base Eligible Asset:

 

    	 	- 7 -	 

     

    

 

		(i)	Such asset is (x) held by the Borrower or a Subsidiary
thereof (other than a Borrowing Base Subsidiary) and is (A) a Senior Commercial Real Estate Loan, (B) a Subordinated Commercial
Real Estate Loan, (C) a Preferred Equity Investment (directly or indirectly) or (D) a Senior Commercial Real Estate Construction
Loan, (y) an equity interest in a Borrowing Base Subsidiary that is not a Borrowing Base Debt Subsidiary, which subsidiary holds
(directly or indirectly), any asset referred to in subclause (x) of this clause (i) that would otherwise qualify as Borrowing
Base Eligible Asset or (z) an equity interest in a Borrowing Base Debt Subsidiary that (A) owns (directly or indirectly), any
asset referred to in subclause (x) of this clause (i) that would otherwise qualify as Borrowing Base Eligible Assets and (B) to
the extent the Borrowing Base Debt Subsidiary owns any asset of the type set forth in subclauses (x)(B) or (x)(C) of this clause
(i), such assets do not exceed 15% of the total assets held by such subsidiary as measured by the respective outstanding principal
balance of all assets held by such subsidiary, including, without limitation, any assets of the type set forth in subclauses (x)(B)
or (x)(C) of this clause (i);

 

		(ii)	such asset (or, in the case of any Borrowing Base Subsidiary,
the associated Mortgage Asset), together with the underlying loan documents related thereto (A) is in full force and effect
and constitutes the legal, valid and binding obligation of the obligor thereunder (subject to customary qualifications and exceptions),
(B) is not subject to any material litigation or dispute and (C) contains provisions that the obligor’s payment
obligations thereunder are absolute and unconditional without any right of rescission, setoff, counterclaim or defense against
the holder thereof (subject to customary qualifications and exceptions);

 

		(iii)	such asset (or, in the case of any Borrowing Base Subsidiary,
the associated Mortgage Asset) and any related collateral are each in compliance in all material respects with any applicable
laws (subject to customary qualifications and exceptions);

 

		(iv)	at the time of purchase or origination (as applicable),
such asset (or, in the case of any Borrowing Base Subsidiary, the associated Mortgage Asset) is not in payment default. At any
time thereafter, such asset or Mortgage Asset is not in payment default after giving effect to any applicable grace, cure or notice
periods (as such periods may be extended);

 

		(v)	for any Subordinated Commercial Real Estate Loan or Preferred
Equity Investment, such asset (or, in the case of any Borrowing Base Subsidiary, the associated Mortgage Asset) is eligible to
be sold and does not by its terms prohibit the granting of a security interest therein, subject to Section 6.2(d);

 

		(vi)	such asset (or, in the case of any Borrowing Base Subsidiary,
the associated Mortgage Asset) does not contain a confidentiality provision that would prohibit the Agents from reviewing the
asset and underlying loan documentation (notwithstanding that the Agents are advised of the confidential nature of information
relating to the asset and agrees to keep such information confidential);

 

    	 	- 8 -	 

     

    

 

		(vii)	the applicable Subsidiary of the Borrower has good and
marketable title to, and is the sole owner of, such asset (or, in the case of any Borrowing Base Subsidiary, the associated Mortgage
Asset) subject, in the case of Mortgage Assets of Borrowing Base Debt Subsidiaries, to the terms of the associated Warehousing
Debt, Securitization Indebtedness or other applicable debt;

 

		(viii)	such asset (or, in the case of any Borrowing Base Subsidiary,
the associated Mortgage Asset) will not cause the Borrower to be required to register as an investment company under the Investment
Company Act of 1940;

 

		(ix)	such asset (or, in the case of any Borrowing Base Subsidiary,
the associated Mortgage Asset) is not a Margin Security;

 

		(x)	for any Subordinated Commercial Real Estate Loan or Preferred
Equity Investment, whether held directly or by a Borrowing Base Subsidiary or Borrowing Base Debt Subsidiary, the loan to value
percentage of all indebtedness senior to such asset (or, in the case of any Borrowing Base Subsidiary or Borrowing Base Debt Subsidiary,
the associated Mortgage Asset) does not exceed 80% and the combined loan to value percentage for such asset including the subordinated
mortgage loan or preferred equity does not exceed 90%;

 

		(xi)	such asset is cash or Cash Equivalents held in a Deposit
Account that is the subject of a control agreement in favor of the Collateral Agent for the benefit of the Secured Parties; provided
that, any cash or Cash Equivalents pledged under Section 6.2(c) to secure Debt permitted under Section 6.1(l)
shall not be a Borrowing Base Eligible Asset;

 

		(xii)	for any Securities that are encumbered by or otherwise
subject to a Permitted Collateral Lien (other than in respect to Liens arising pursuant to clauses (d) and (g) of
the definition thereof) such Securities have not been encumbered by or otherwise subject to such Permitted Collateral Lien for
longer than ten (10) Business Days after Borrower or any Grantor, as applicable, obtains knowledge thereof;

 

		(xiii)	such asset (or, in the case of any Borrowing Base Subsidiary,
the associated Mortgage Asset) is not secured by hotels or retail malls (other than strip centers);

 

		(xiv)	such asset (or, in the case of any Borrowing Base Subsidiary,
the associated Mortgage Asset) has been originated in accordance with the Underwriting Guidelines;

 

		(xv)	such asset (or, in the case of any Borrowing Base Subsidiary,
the associated Mortgage Asset) which is a health care bridge loan shall be eligible for takeout financing by a government sponsored
agency upon completion of construction and/or business plan, as applicable;

 

		(xvi)	such asset (or, in the case of any Borrowing Base Subsidiary,
the associated Mortgage Asset) which is a Mortgage Asset backed by multi-family properties has an “as-is” loan to
value ratio of no greater than 82.5% and an “as-renovated” loan to value ratio of no greater than 80%;

 

    	 	- 9 -	 

     

    

 

		(xvii)	such asset (or, in the case of any Borrowing Base Subsidiary,
the associated Mortgage Asset) which is a Mortgage Asset backed by non-multi-family properties has an “as-is” loan
to value ratio of no greater than 80% and an “as-renovated” loan to value ratio of no greater than 75%;

 

		(xviii)	such asset (or, in the case of any Borrowing Base Subsidiary,
the associated underlying asset) which is a security must have a CUSIP number and be issued by the Borrower or its Affiliate or
the Borrower’s external manager or its Affiliates and further must be collateralized by loans originated by Borrower or
its Affiliate or the Borrower’s external manager or its Affiliates in accordance with the Underwriting Guidelines;

 

		(xix)	for such assets (or, in the case of any Borrowing Base
Subsidiary, the associated underlying asset) which are MSRs, (A) the Borrower or its Affiliate has obtained (continues to maintain)
all required consents and approvals to service such MSRs and to pledge such MSRs to the Collateral Agent on behalf of the Lenders
(with any related acknowledgment agreements (if any) in form and substance acceptable to the Required Lenders), (B) the related
servicer has not received a termination notice or otherwise been terminated under the related servicing agreement and (C) with
respect to the Initial MSRs only, the related Grantor shall not remove any such pool of MSRs from the Borrowing Base (in connection
with a sale or otherwise) unless MSRs relating to all four of the Securitization Transactions are removed from the Borrowing Base,
in each case, unless otherwise agreed to by the Required Lenders acting in their sole and absolute discretion;

 

		(xx)	the Collateral Agent on behalf of the Lenders shall have
a first priority security interest in such Borrowing Base Eligible Asset (or if a Borrowing Base Eligible Asset is held directly
or indirectly by a Borrowing Base Subsidiary whose equity interests are pledged to the Collateral Agent on behalf of the Lenders,
then the Collateral Agent on behalf of the Lenders shall have a first priority security interest in the equity of such Borrowing
Base Subsidiary).

 

(b)          the
Borrower represents and warrants that the Borrowing Base Eligible Assets meet the following portfolio criteria:

 

		(i)	no more than 20% of the Borrowing Base Eligible Assets
(by Assigned Value) shall be secured by non-mall retail properties;

 

		(ii)	no single asset (or, in the case of any Borrowing Base
Subsidiary, the associated Mortgage Asset) shall constitute more than 12.5% of the Borrowing Base Eligible Assets (by Assigned
Value);

 

		(iii)	no single sponsor of an asset shall constitute more than
20% of the Borrowing Base Eligible Assets (by Assigned Value);

 

    	 	- 10 -	 

     

    

 

		(iv)	no more than 10% of the Borrowing Base Eligible Assets
(by Assigned Value) shall be MSRs and no MSRs shall be held in a Borrowing Base Debt Subsidiary;

 

		(v)	no more than 10% of the Borrowing Base Eligible Assets
(by Assigned Value) shall be assets that are not originated by the Borrower or its Affiliates; provided that such limitation
shall not apply to assets originated by Borrower’s external manager or its Affiliates;

 

		(vi)	no more than 15% of the Borrowing Base Eligible Assets
(by Assigned Value) shall constitute health care bridge loans;

 

		(vii)	no asset shall be a non-U.S. asset or an asset which is
not denominated in U.S. Dollars;

 

		(viii)	no asset shall be a participation interest in a loan for
which none of the Borrower or its Affiliates or the Borrower’s external manager or its Affiliates holds majority lender
status or similar voting control for the subject loan;

 

		(ix)	no asset shall be (or represent an interest in) a subordinate
or mezzanine loan in a commercial real estate construction loan;

 

		(x)	at the time of origination or purchase by the Borrower
or its Subsidiaries of any Borrowing Base Eligible Asset, the outstanding principal balance of any single property underlying
any Borrowing Base Eligible Asset shall not exceed 10.0% of the aggregate outstanding principal balance of the value of all properties
underlying all Borrowing Base Eligible Assets; and

 

		(xi)	no more than 25% of the Borrowing Base Eligible Assets
(by Assigned Value) in the aggregate shall be fixed rate assets;

 

provided, however, that for
purposes of calculating the concentration limits set forth in clause (b) above, the Assigned Value for any Borrowing Base
Eligible Asset in a Borrowing Base Debt Subsidiary shall be used without taking into account the outstanding principal balance
of the associated Warehousing Debt or Securitization Indebtedness of such Borrowing Base Debt Subsidiary.

 

“Borrowing
Base Eligible Assets” means (a) on and from the Closing Date, the assets set forth on Schedule C-1 and (b) as
of any date of determination after the Closing Date, the assets that (pursuant to a Borrowing Base Certificate) the Borrower has
represented and warranted satisfies the Borrowing Base Eligibility Criteria (except to the extent compliance with any one or more
of such Borrowing Base Eligibility Criteria is waived by the Agents in writing with respect to any such asset). In the event an
asset ceases to satisfy the Borrowing Base Eligibility Criteria, it shall no longer constitute a Borrowing Base Eligible Asset.

 

“Borrowing
Base Subsidiary” means any Subsidiary of the Borrower whose equity interests constitute Borrowing Base Eligible Assets
pursuant to subclauses (i)(x), (i)(y) or (i)(z) of the definition of Borrowing Base Eligibility Criteria and
shall include, without limitation, all Borrowing Base Debt Subsidiaries listed on Schedule C-2.

 

    	 	- 11 -	 

     

    

 

“Borrowing
Base Value” means, with respect to any Borrowing Base Eligible Asset as of any date of determination, the sum of (a)
product of (x) the Applicable Advance Rate for such Borrowing Base Eligible Asset as of such date and (y) the Assigned Value of
such Borrowing Base Eligible Asset as of such date, plus (b) the consolidated unrestricted cash and Cash Equivalents of
the Borrower and its Subsidiaries but only to the extent that such unrestricted cash and Cash Equivalents are (i) not already accounted
for in the Assigned Value of a Borrowing Base Eligible Asset and (ii) in a Deposit Account that is the subject of a control agreement
in favor of the Collateral Agent for the benefit of the Secured Parties.

 

“Business
Day” means a day when major commercial banks are open for business in New York, New York, other than Saturdays or Sundays.

 

“Capital Event”
means any common or preferred equity offering of the Borrower.

 

“Capitalized
Lease Obligations” means with respect to any Person, the amount of all obligations of such Person to pay rent or other
amounts under a lease of property to the extent and in the amount that such obligations are required to be classified and accounted
for as a capital lease on a balance sheet of such Person in accordance with GAAP.

 

“Cash Cure
Amount” has the meaning set forth in Section 7.3(c).

 

“Cash Equivalents”
means (a) marketable direct obligations issued by, or unconditionally guaranteed by, the United States or issued by any agency
thereof and backed by the full faith and credit of the United States, in each case maturing within 1 year from the date of acquisition
thereof, (b) marketable direct obligations issued by any state of the United States or any political subdivision of any such state
or any public instrumentality thereof maturing within 1 year from the date of acquisition thereof and, at the time of acquisition,
having one of the two highest ratings obtainable from either Standard & Poor’s Rating Group (“S&P”)
or Moody’s Investors Service, Inc. (“Moody’s”), (c) commercial paper maturing no more than two hundred
seventy (270) days from the date of creation thereof and, at the time of acquisition, having a rating of at least A-1 from S&P
or at least P-1 from Moody’s, (d) certificates of deposit or bankers’ acceptances maturing within 1 year from
the date of acquisition thereof issued by any bank organized under the laws of the United States or any state thereof having at
the date of acquisition thereof combined capital and surplus of not less than $250,000,000, (e) demand deposit accounts maintained
with any bank organized under the laws of the United States or any state thereof having combined capital and surplus of not less
than $1,000,000,000, so long as the amount maintained with any individual bank is less than or equal to $1,000,000 and is insured
by the Federal Deposit Insurance Corporation, or larger amounts, to the extent that such amounts are covered by insurance which
is reasonably satisfactory to the Required Agents, (f) demand deposit accounts maintained with any of the financial institutions
listed on Schedule A-1 hereto (as may be modified from time to time with the consent of the Required Agents, which consent
shall not be unreasonably withheld or delayed), Affiliates thereof, or any Lender that is a bank that is insured by the Federal
Deposit Insurance Corporation, and (g) Investments in money market funds substantially all of whose assets are invested in the
types of assets described in clauses (a) through (e) above.

 

    	 	- 12 -	 

     

    

 

“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 law, rule or treaty 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 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.

 

“Change of
Control Event” means the occurrence of any of the following events has occurred without the prior written approval of
the Required Lenders:

 

(a)          any
“person” or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) shall become, or
obtain rights (whether by means of warrants, options or otherwise) to become, the “beneficial owner” (as defined in
Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of a percentage of the total voting power of all classes
of capital stock of the Borrower entitled to vote generally in the election of directors, of thirty-five percent (35%) or more;

 

(b)          the
Borrower shall cease to maintain its status as a publicly traded REIT;

 

(c)          the
consummation of a merger or consolidation of the Borrower with or into another entity or any other reorganization of the Borrower
pursuant to which the Borrower is not the surviving entity following such merger, consolidation or reorganization;

 

(d)          a
transfer of all or substantially all of the Borrower’s Assets (excluding any transfer in connection with any Securitization
Transaction or any repurchase or other similar transactions);

 

provided that, notwithstanding anything
to the contrary herein, any event that does not result in a Change of Manager Event, will not constitute a Change of Control Event.

 

“Change of
Manager Event” means Hunt Investment Management, LLC or any of its Affiliates ceases to be the manager of the Borrower
in accordance with the terms of that certain Asset Management Agreement dated January 8, 2018 (as amended from time to time, the
“Asset Management Agreement”), and a replacement for such manager, which replacement shall be approved by the
Required Lenders, has not occurred within ninety (90) days.

 

“Closing Date”
means the date on which each of the conditions precedent specified in Section 3.1 have been satisfied or waived in a manner
reasonably satisfactory to the Agent and the Lenders.

 

    	 	- 13 -	 

     

    

 

“Code”
means the Internal Revenue Code of 1986, as amended or supplemented from time to time, and any successor statute, and all of the
rules and regulations issued or promulgated in connection therewith.

 

“Collateral”
has the meaning ascribed thereto in the Security Agreement; provided, however, that, to the extent such Collateral is denominated
in a currency, such denomination shall be in Dollars.

 

“Collateral
Agent” has the meaning set forth in the preamble to this Agreement.

 

“Collateral
Agent’s Liens” means the Liens granted by any Loan Party to the Collateral Agent, for the benefit of the Lenders,
under the Loan Documents.

 

“Collections”
means all cash, checks, notes, instruments, and other items of payment.

 

“Commitments”
means any Term Loan Commitment or Incremental Term Loan Commitment, as applicable.

 

“Commodity
Exchange Act” means the Commodity Exchange Act (7 U.S.C. §§ 1 et seq.), as amended from time to time,
and any successor statute.

 

“Compliance
Certificate” means a certificate duly executed by a Responsible Officer of the Borrower, substantially in the form of
Exhibit P-1.

 

“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.

 

“Contingent
Obligation” means, as to any Person and without duplication of amounts, any written obligation of such Person guaranteeing
or intended to guarantee (whether guaranteed, endorsed, co-made, discounted, or sold with recourse to such Person) any Debt, noncancellable
lease, dividend, reimbursement obligations relating to letters of credit, or any other obligation that pertains to Debt, a noncancellable
lease, a dividend, or a reimbursement obligation related to letters of credit (each, a “primary obligation”) of any
other Person (“primary obligor”) in any manner, whether directly or indirectly, including any written obligation of
such Person, irrespective of whether contingent, (a) to purchase any such primary obligation, (b) to advance or supply funds (whether
in the form of a loan, advance, stock purchase, capital contribution, or otherwise) (i) for the purchase, repurchase, or payment
of any such primary obligation or any Asset constituting direct or indirect security therefor, or (ii) to maintain working capital
or equity capital of the primary obligor, or otherwise to maintain the net worth, solvency, or other financial condition of the
primary obligor, or (c) to purchase or make payment for any Asset, securities, services, or noncancellable lease if 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.

 

“Contractual
Obligation” means, as applied to any Person, any indenture, mortgage, deed of trust, contract, undertaking, agreement,
or other instrument to which that Person is a party or by which any of its Assets is subject.

 

    	 	- 14 -	 

     

    

 

“Cortland”
has the meaning set forth in the introduction to this Agreement.

 

“Credit Facilities”
means each of (a) the Term Loan Commitments and the Initial Term Loans made thereunder and (b) the Incremental Term Commitments
and the Incremental Term Loans made thereunder.

 

“Cure Expiration
Date” has the meaning set forth in Section 7.3(a).

 

“Debt”
means, with respect to any Person, (a) all indebtedness, whether or not represented by bonds, debentures, notes, securities, or
other evidences of indebtedness, for the repayment of money borrowed, (b) all indebtedness representing deferred payment of the
purchase price of property or Assets, exclusive of trade payables that are due and payable in the ordinary course of such Person’s
business, (c) all Capitalized Lease Obligations of such Person and (d) all indebtedness currently due and payable under guaranties,
endorsements, assumptions, or other Contingent Obligations in respect of the foregoing; provided that “Debt”
shall be determined without regard to the effects of consolidation of any issuer of a Specified Third Party Securitization on the
financial statements of such Person under Accounting Standards Codification Section 810, as amended, modified or supplemented from
time to time, or otherwise under GAAP.

 

“Debt for
Borrowed Money” means any Debt for borrowed money incurred in connection with corporate borrowings. For the avoidance
of doubt, “Debt for Borrowed Money” shall exclude Debt permitted under Sections 6.1(c), (d), (e), (f), (g), (j), (l),
(m) and (n).

 

“Debtor Relief
Laws” means the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement, receivership, insolvency, reorganization or similar debtor relief laws of the United States
of America or other applicable jurisdictions from time to time in effect.

 

“Default”
means an event, act, or occurrence which, with the giving of notice or the passage of time, would become an Event of Default.

 

“Default Margin”
means, automatically, after the occurrence of an Event of Default, 2.0% per annum, accruing in each case, from the date of such
Event of Default until the date such Event of Default is cured or waived.

 

    	 	- 15 -	 

     

    

 

“Defaulting
Lender” means 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 unless such Lender notifies the Agents and the Borrower in writing
that such failure is the result of such Lender’s good faith determination that one or more conditions precedent to funding
(each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has
not been satisfied, or (ii) pay to the Agents or any other Lender any other amount required to be paid by it hereunder within two
(2) Business Days of the date when due, (b) has notified the Borrower or the Agents in writing that it does not intend to comply
with its funding obligations hereunder, or has, subject to Section 11.12, made a public statement to that effect (unless
such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position
is based on such Lender’s good faith determination that a condition precedent to funding (which condition precedent, together
with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has
failed, within three (3) Business Days after written request by the Agents or the Borrower, to confirm in writing to the Agents
and the Borrower 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 Agents and
the Borrower), 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, or (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; 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 Required Agents 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 upon delivery of written notice of such determination to the Borrower and
each Lender; provided that either Agent can declare the other Agent to be a Defaulting Lender under any one or more of clauses
(a) through (d) above.

 

“Defaulting
Lender Rate” means the Federal Funds Rate.

 

“Deposit Account”
means any “deposit account” (as that term is defined in the UCC).

 

“Designated
Account” means account number              of the Borrower maintained with Wells Fargo, or such other deposit account of
the Borrower (located within the United States) designated, in writing, from time to time, by the Borrower to the Agents.

 

“Determined
Valuation” has the meaning set forth in Section 11.5.

 

“Distribution”
has the meaning set forth in Section 6.4.

 

“Dollars”
or “$” means United States dollars.

 

“Eligible
Assignee” means any Person that meets the requirements to be an assignee under Sections 9.1(b)(iii), (v)
and (vi) (subject to such consents, if any, as may be required under Section 9.1(b)(iii)); provided, however,
that “Eligible Assignee” shall not include (a) any natural Person or (b) any Defaulting Lender, its parent, any of
its Subsidiaries or any Person who, upon becoming a Lender hereunder, would constitute a Defaulting Lender or a Subsidiary thereof.

 

“Environmental
Law” means any federal, state, provincial, foreign or local statute, law, rule, regulation, ordinance, code, binding
and enforceable guideline, binding and enforceable written policy, or rule of common law now or hereafter in effect and in each
case as amended, or any legally binding judicial or administrative interpretation thereof, including any judicial or administrative
order, consent decree or judgment, in each case, to the extent applicable to Borrower or any of its Subsidiaries, relating to the
environment, the effect of the environment on employee health, or Hazardous Materials, in each case as amended from time to time.

 

    	 	- 16 -	 

     

    

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time, the regulations promulgated thereunder
and any successor thereto.

 

“ERISA Affiliate”
means any trade or business (whether or not incorporated) that, together with any Loan Party, is treated as a single employer under
Section 414(b) or (c) of the Code, or solely for purposes of Section 302 or 303 of ERISA or Section 412 or 430 of the Code, is
treated as a single employer under Section 414 of the Code. Any former ERISA Affiliate of the Loan Parties shall continue to be
considered an ERISA Affiliate of the Loan Parties within the meaning of this definition with respect to the period such entity
was an ERISA Affiliate of any Loan Party and with respect to liabilities arising after such period for which any Loan Party could
be liable under the Code or ERISA.

 

“ERISA Event”
means (a) a “reportable event” within the meaning of Section 4043 of ERISA and the regulations issued thereunder with
respect to any Single Employer Plan (excluding those for which the provision for thirty (30) day notice to the PBGC has been waived
by regulation in effect on the date hereof); (b) the failure to meet all applicable requirements of the Pension Funding Rules with
respect to any Single Employer Plan, whether or not waived; (c) the filing of an application for a waiver of the minimum funding
standards under the Pension Funding Rules with respect to any Single Employer Plan; (d) the termination of any Single Employer
Plan or the withdrawal or partial withdrawal of any Loan Party from any Single Employer Plan or Multiemployer Plan; (e) a determination
that any Single Employer Plan is, or is expected to be, in “at risk” status (as defined in Section 430 of the Code
or Section 303 of ERISA); (f) a determination that any Multiemployer Plan is, or is expected to be, in “critical” or
“endangered” status under Section 432 of the Code or Section 305 of ERISA; (g) the receipt by any Loan Party or any
of their respective ERISA Affiliates from the PBGC or a plan administrator of any notice relating to an intention to terminate
any Single Employer Plan or to appoint a trustee to administer any Single Employer Plan; (h) the adoption of any amendment to a
Single Employer Plan that would require the provision of security pursuant to Section 436(f) of the Code; (i) the receipt by any
Loan Party or any of their respective ERISA Affiliates of any notice, or the receipt by any Multiemployer Plan from any Loan Party
or any of their respective ERISA Affiliates of any notice, concerning the imposition of Withdrawal Liability or a determination
that a Multiemployer Plan is, or is expected to be, insolvent, within the meaning of Title IV of ERISA; (j) the failure by any
Loan Party or any of their respective ERISA Affiliates to make a required contribution to a Multiemployer Plan; (k) the occurrence
of a nonexempt prohibited transaction (within the meaning of Section 4975 of the Code or Section 406 of ERISA) which could reasonably
be expected to result in material liability to any Loan Party; (1) the receipt from the IRS of notice of disqualification of any
Plan intended to qualify under Section 401(a) of the Code, or the disqualification of any trust forming part of any Plan intended
to qualify for exemption from taxation under Section 501(a) of the Code; (m) the imposition of a lien pursuant to Section 430(k)
of the Code or Section 303(k) of ERISA or a violation of Section 436 of the Code with respect to any Single Employer Plan; (n)
the assertion of a material claim (other than routine claims for benefits) against any Plan other than a Multiemployer Plan or
the assets thereof, or against any Loan Party or any of their respective ERISA Affiliates in connection with any Plan; or (o) the
occurrence of an act or omission which could give rise to the imposition on any Loan Party or any of their respective ERISA Affiliates
of any fine, penalty, tax or related charge under Chapter 43 of the Code or under Section 409, Section 502(c), (i) or (l), or Section
4071 of ERISA in respect of any Plan.

 

    	 	- 17 -	 

     

    

 

“Event of
Default” has the meaning set forth in Article VII of this Agreement.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended or supplemented from time to time, and any successor statute,
and all of the rules and regulations issued or promulgated in connection therewith.

 

“Excluded
Assets” has the meaning as set forth in the Security Agreement.

 

“Excluded
Information” means any non-public information with respect to the Borrower or its Subsidiaries or any of their respective
securities to the extent such information could have a material effect upon, or otherwise be material to, an assigning Lender’s
decision to assign Initial Term Loans or a purchasing Lender’s decision to purchase Initial Term Loans.

 

“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 imposed on amounts payable to
or for the account of such Recipient 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 Borrower under Section 11.2) or (ii) such Recipient changes its lending office, except in each case to the
extent that, pursuant to Section 10.11, amounts with respect to such Taxes were payable either to such Recipient’s
assignor immediately before such Recipient became a party hereto or to such Recipient immediately before it changed its lending
office, (c) Taxes attributable to such Recipient’s failure to comply with Section 10.11(b), (c) or (g)
and (d) any U.S. federal withholding Taxes imposed under FATCA.

 

“Executive
Order No. 13224” means the Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001, as the same
as been, or shall hereafter be, renewed, extended, amended or replaced.

 

“Extraordinary
Restricted Payments” means (i) the purchase, redemption, or retirement for value by the Borrower of any of its Securities
or the making of special distributions by the Borrower of capital to its stockholders not otherwise in the ordinary course of business
(specifically excluding any dividends or distributions by the Borrower necessary for it to maintain its status as a REIT) or (ii)
voluntary repurchases or prepayments of unsecured Debt (other than in respect of scheduled maturities, principal amortization or
in connection with the prevention or cure of a default thereunder).

 

    	 	- 18 -	 

     

    

 

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

 

“Federal Funds
Rate” means, for any day, the rate per annum (rounded upwards, if necessary, to the next 1/100th of 1%) equal to the
weighted average of the rates on overnight Federal funds transactions with member banks of the Federal Reserve System, as published
by the Federal Reserve Bank of New York on the next succeeding Business Day or if such rate is not so published for any Business
Day, the Federal Funds Rate for such day shall be the average rounded upwards, if necessary, to the next 1/100th of 1% of the quotations
for such day on such transactions received by the Administrative Agent from three major banks of recognized standing selected by
the Administrative Agent.

 

“Federal Reserve
Board” means the Board of Governors of the Federal Reserve System or any successor thereto.

 

“Fee Side
Letter” means that certain Fee Side Letter among the Borrower and the Lender Assignees.

 

“Fundamental
Change” has the meaning set forth in Section 6.5.

 

“Funding Date”
means any date on which a Loan is made by the Lenders.

 

“Funding Losses”
has the meaning set forth in Section 2.5(b)(ii).

 

“GAAP”
means generally accepted accounting principles in the United States of America in effect from time to time.

 

“Governing
Documents” means, with respect to any Person, the certificate or articles of incorporation or formation, by-laws, limited
liability company agreement or other organizational documents of such Person.

 

“Governmental
Authority” means the government of the United States of America or any other nation, or 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 supranational bodies such as the European Union or the European Central Bank.

 

“Grantor”
has the meaning ascribed thereto in the Security Agreement.

 

“Guarantors”
has the meaning set forth in the preamble hereto (and each individually, a “Guarantor”).

 

“Guaranty”
means the Guarantee set forth in Article XII.

 

    	 	- 19 -	 

     

    

 

“Hazardous
Materials” means (a) substances (whether solid, liquid or gas) that are defined or listed in, or otherwise classified
pursuant to, any applicable laws or regulations as “hazardous substances,” “hazardous materials,” “hazardous
wastes,” “toxic substances,” or any other formulation intended to define, list, or classify substances by reason
of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, toxicity, or “EP toxicity”,
(b) oil, petroleum, or petroleum derived substances, natural gas, natural gas liquids, synthetic gas, drilling fluids, produced
waters, and other wastes associated with the exploration, development, or production of crude oil, natural gas, or geothermal resources,
(c) any flammable substances or explosives or any radioactive materials, and (d) asbestos in any form, toxic mold, mycotoxins,
microbial matter, polychlorinated biphenyls or electrical equipment that contains any oil or dielectric fluid containing levels
of polychlorinated biphenyls in excess of 50 parts per million.

 

“Highest Lawful
Rate” means the maximum non-usurious interest rate, as in effect from time to time, that may be charged, contracted for,
reserved, received, or collected by a Lender in connection with this Agreement or the other Loan Documents.

 

“Immaterial
Subsidiary” means, at any time, any Subsidiary with a Tangible Net Worth on the last day of the most recently ended Test
Period of $2,500,000 or less; provided that, at any time, the aggregate Tangible Net Worth attributable to all Immaterial Subsidiaries
shall not exceed $5,000,000.

 

“Incremental
Amendment” has the meaning set forth in Section 2.15(f)(i).

 

“Incremental
Facility Closing Date” has the meaning set forth in Section 2.15(d).

 

“Incremental
Lender” has the meaning set forth in Section 2.15(b).

 

“Incremental
Term Commitments” has the meaning set forth in Section 2.15(a).

 

“Incremental
Term Loan” has the meaning set forth in Section 2.15(c).

 

“Incremental
Term Loan Request” has the meaning set forth in Section 2.15(a).

 

“Indemnified
Liabilities” has the meaning set forth in Section 8.2.

 

“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 the Borrower under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

 

“Indemnitee”
has the meaning set forth in Section 8.2.

 

“Information”
has the meaning set forth in Section 11.10.

 

“Initial Dispute
Notice” has the meaning as set forth in Section 11.5.

 

“Initial Lender”
means Jefferies Leveraged Credit Products, LLC.

 

    	 	- 20 -	 

     

    

 

“Initial MSRs”
means the mortgage servicing rights sub-serviced by New Penn Financial, LLC d/b/a Shellpoint Mortgage Servicing relating to residential
mortgage loans included in one of the following Securitization Transactions: (i) CSMC Trust 2014-OAK1, Mortgage Pass-Through Certificates,
Series 2014-OAK1, (ii) J.P. Morgan Mortgage Trust 2014-OAK4, Mortgage Pass-Through Certificates, Series 2014-OAK4, (iii) Oaks Mortgage
Trust Series 2015-1, Mortgage Pass-Through Certificates, Series 2015-1 and (iv) Oaks Mortgage Trust Series 2015-2, Mortgage Pass-Through
Certificates, Series 2015-2.

 

“Initial Term
Loan” has the meaning set forth in Section 2.1(a)(i).

 

“Initial Valuation”
has the meaning as set forth in Section 11.5.

 

“Initial Valuation
Agent” means, with respect to any Borrowing Base Eligible Asset, the initial appraiser or valuation agent who established
the fair market value of such asset at the origination of such Borrowing Base Eligible Asset, or such other broker or valuation
Agent reasonably acceptable to the Required Lenders in consultation with the Borrower; provided that (i) with respect to valuations
of Mortgage Assets, such entity shall be an appraiser who is a licensed member of the Appraisal Institute who prepares appraisals
in the state where the Mortgage Asset is located and (ii) such entity must be active in establishing a fair market value of assets
substantially similar to the applicable Borrowing Base Eligible Asset.

 

“Insolvency
Proceeding” means any proceeding commenced by or against any Person under any provision of the Bankruptcy Code or under
any other state or federal bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria,
compositions, extensions generally with creditors, or proceedings seeking reorganization, arrangement, or other similar relief.

 

“Interest
Coverage Ratio” means, with respect to the Borrower and as of any date of determination, a ratio in which:

 

(a)      the numerator is
the Adjusted EBITDA for the twelve months preceding the most recently ended Test Period; and

 

(b)      the denominator
is an amount equal to the interest expense on all of the Borrower’s Debt (other than non-recourse Debt) for the twelve months
preceding the most recently ended Test Period (but exclusive of any interest expense on any preferred equity of the Borrower).

 

“Interest
Payment Date” means the last day of each Interest Period applicable to any Loan and the final Maturity Date of such Loan,
as applicable.

 

“Interest
Period” means, with respect to any Loan, the period commencing on the twenty-second (22nd) day of each month
(or with respect to the initial Interest Period for such Loan, the date on which the Loan is made) and ending on the date which
is the twenty-second (22nd) day of the following month.  Whenever the last day of any Interest Period would otherwise occur
on a day other than a Business Day, the last day of such Interest Period shall be extended to occur on the next succeeding Business
Day, provided that if such extension would cause the last day of such Interest Period to occur in the next following calendar
month, the last day of such Interest Period shall occur on the next preceding Business Day, and any Interest Period which begins
on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period) shall end on the last Business Day of the calendar month in which it would have ended if there
were a numerically corresponding day in such calendar month.

 

    	 	- 21 -	 

     

    

 

“Interest
Rate” means (i) during any Interest Period prior to the Anticipated Repayment Date, 7.25% per annum plus any Default
Margin applicable during such Interest Period, (ii) for the first four Interest Periods following the Anticipated Repayment Date,
7.50% per annum plus any Default Margin applicable during such Interest Period, (iii) for the fifth through eighth Interest Periods
following the Anticipated Repayment Date, 7.875% per annum plus any Default Margin applicable during such Interest Period and (iv)
for each Interest Period thereafter, 8.375% per annum plus any Default Margin applicable during such Interest Period.

 

“Investment”
means, as applied to any Person, any direct or indirect purchase or other acquisition by that Person of, or beneficial interest
in, stock, instruments, bonds, debentures or other securities of any other Person, or any direct or indirect loan, advance, or
capital contribution by such Person to any other Person, including all indebtedness and accounts receivable due from that other
Person that did not arise from sales or the rendition of services to that other Person in the ordinary and usual course of such
Person’s business, and deposit accounts (including certificates of deposit).

 

“IRS”
means the United States Internal Revenue Service.

 

“Legal Expenses
Cap” has the meaning set forth in Section 8.1 of this Agreement.

 

“Lender”
means each lender that (a) has a Term Loan Commitment or is the holder of an Initial Term Loan, or (b) has an Incremental Term
Commitment or is the holder of an Incremental Term Loan.

 

“Lender Assignees”
means each of the entities managed or advised by J.P. Morgan Investment Management Inc. that are Lenders under this Agreement.

 

“Lender Group”
means, individually and collectively, the Lenders and the Agents.

 

“Lender Group
Expenses” has the meaning given in Section 8.1.

 

“Lender-Related
Person” means, with respect to any Lender, such Lender, together with such Lender’s Affiliates, officers, directors,
employees, attorneys, and agents.

 

“Lien”
means any lien, hypothecation, mortgage, pledge, assignment (including any assignment of rights to receive payments of money or
any easement, right-of-way, zoning restriction and similar encumbrance on real property) for security, security interest, charge
and encumbrance of any kind (including any conditional sale or other title retention agreement, any lease in the nature thereof,
and any agreement to give any security interest).

 

“Loan Account”
has the meaning set forth in Section 2.10.

 

    	 	- 22 -	 

     

    

 

“Loan Documents”
means this Agreement, the Security Agreement, any Notes, the Agent Fee Letter, the Negative Pledge Agreement, the Borrower DACA,
the Mezz DACA, any other deposit account control agreements and any and all other documents, agreements, or instruments that have
been or are entered into by the Borrower or Guarantor, on the one hand, and the Agents, on the other hand, in connection with the
transactions contemplated by this Agreement.

 

“Loan Party”
means the Borrower or Guarantor, and “Loan Parties” means, collectively, jointly and severally, the Borrower
and the Guarantor.

 

“Loans”
has the meaning set forth in Section 2.1(b)(i).

 

“Lockout Period”
means the period beginning on the Closing Date and ending on (and including) the one-year anniversary of the Closing Date.

 

“Margin Securities”
means “margin stock” as that term is defined in Regulation U of the Federal Reserve Board.

 

“Material
Adverse Effect” means a material adverse effect on and/or material adverse developments with respect to (a) the business,
operations, properties, assets or financial condition of the Borrower and its Subsidiaries taken as a whole; (b) the ability of
the Loan Parties, taken as a whole, to fully and timely perform their Obligations or (c) the validity, binding effect or enforceability
against any Loan Party of this Agreement or any other Loan Document to which it is a party.

 

“Material
Agreements” means (a) the Loan Documents and (b) any agreements, documents, contracts, indentures and instruments pursuant
to which a default, breach or termination thereof could reasonably be expected to result in a Material Adverse Effect.

 

“Material
Modification” means an amendment, waiver, forbearance or other modification to or with respect to any (a) Borrowing Base
Eligible Asset (including its related Securitization Transaction) or (b) Borrowing Base Subsidiary (or any associated Mortgage
Asset), as applicable, that:

 

		(i)	forgives, reduces, waives or forebears from collection
one or more payments of principal or interest, or permits any interest payment due in cash to be deferred or capitalized and added
to the principal amount of such Borrowing Base Eligible Asset or Mortgage Asset, as applicable (other than as permitted pursuant
to the applicable underlying instrument); provided, however, that any interest payment waiver, deferral, or capitalization
which is structured and permitted in accordance with the initial closing of any loan transaction shall not be considered a Material
Modification.

 

		(ii)	contractually or structurally subordinates such Borrowing
Base Eligible Asset or Mortgage Asset, as applicable (other than pursuant to subordination required under the related documents
for such Borrowing Base Eligible Asset or Mortgage Asset, as applicable) by operation of a priority of payments, turnover provisions,
consents to the transfer or encumbrance of (or waivers or forbears from exercising rights under any provision restricting transfer
or encumbrance of any such Borrowing Base Eligible Asset or Mortgage Asset), as applicable, or to a transfer or encumbrance of
assets in order to limit recourse to the related obligor or the granting of liens (other than permitted liens) on any of the collateral
securing such Borrowing Base Eligible Asset or Mortgage Asset, as applicable, in a manner that materially and adversely affects
the value of such Borrowing Base Eligible Asset or Mortgage Asset, as applicable;

 

    	 	- 23 -	 

     

    

 

		(iii)	substitutes, alters or releases the collateral securing
such Borrowing Base Eligible Asset or Mortgage Asset, as applicable (other than as permitted pursuant to the applicable underlying
instrument), and each such substitution, alteration or release, as determined in the sole discretion of the Required Agents, materially
and adversely affects the value of such Borrowing Base Eligible Asset or Mortgage Asset, as applicable;

 

		(iv)	delays, postpones or extends (A) the maturity date (after
giving effect to any contractual rights of extension) for such Borrowing Base Eligible Asset or Mortgage Asset, as applicable
or (B) the required scheduled payments in any way that, individually or in the aggregate, increases the weighted average life
of such Borrowing Base Eligible Asset or Mortgage Asset, as applicable, by 0.50 years or more;

 

		(v)	modifications of, waivers of, or forbearances from exercising
rights with respect to defaults, events of defaults, grace periods, cure periods, or any financial covenants contained in any
of the documents governing such Borrowing Base Eligible Asset or Mortgage Asset to the extent such modification, waiver or forbearance
materially and adversely affects the value of such Borrowing Base Eligible Asset or Mortgage Asset, in each case, as a whole,
as applicable;

 

		(vi)	except for any monetary default arising from the occurrence
of a maturity date that is permitted to be delayed, postponed, or extended pursuant to clause (iv) above, any waiver of
or forbearance from exercising rights with respect to a monetary default involving an amount due under any of the collateral documents
to the extent such waiver or forbearance materially and adversely affects the value of such applicable Borrowing Base Eligible
Asset or Mortgage Asset, in each case, as a whole; or

 

		(vii)	amends, waives, forbears, supplements or otherwise modifies
(A) the meaning of “Net Operating Income” or any respective comparable definitions in the underlying loan documents
for such Borrowing Base Eligible Asset or Mortgage Asset, as applicable or (B) any term or provision of such underlying loan documents
referenced in or utilized in the calculation of “Net Operating Income” or any respective comparable definitions for
such Borrowing Base Eligible Asset or Mortgage Asset, as applicable, in either case in a manner that is materially adverse to
the Lenders.

 

“Maturity
Date” has the meaning set forth in Section 3.3(a).

 

    	 	- 24 -	 

     

    

 

“Mezz DACA”
means any deposit account control agreement to be entered into by and among any Loan Party other than the Borrower and the Collateral
Agent.

 

“Mezzanine
Loan” means a whole loan (or interest therein) subordinate to a senior loan that is secured by one or more direct or
indirect ownership interests in a Person owning, operating or controlling, directly or indirectly, one or more multi-family or
commercial real estate properties that are either fully constructed or undergoing full or partial construction or renovation.

 

“Mortgage
Assets” means any Borrowing Base Eligible Asset that is a (a) Senior Commercial Real Estate Loan, (b) Senior Commercial
Real Estate Construction Loan, (c) Subordinated Commercial Real Estate Loan, (d) Preferred Equity Investment or (e) any restricted
cash held in a Securitization Transaction.

 

“MSR”
means current and future agency commercial mortgage servicing rights held by the Borrower and its Subsidiaries or the Initial MSRs.

 

“MSR Valuation
Agent” means an independent third party valuation agent who is active in establishing a fair market value of mortgage
servicing rights, which shall initially be MountainView Financial Solutions, LLC.

 

“Multiemployer
Plan” means a Plan that is a “multiemployer plan” as defined in Section 3(37) or Section 4001(a)(3) of ERISA
to which any Loan Party or ERISA Affiliate is obligated to make contributions, or during the preceding five (5) plan years, has
made or been obligated to make contributions.

 

“Negative
Pledge Agreement” means that certain Negative Pledge Agreement, dated contemporaneously herewith, among the Borrower,
Hunt Commercial Mortgage Trust, a Maryland real estate investment trust (“HCMT”), Hunt CRE 2017-FL1 Preferred,
LLC, a Delaware limited liability company (“Hunt Preferred 2017”), Hunt CRE 2018-FL2 Preferred, LLC, a Delaware
limited liability company (“Hunt Preferred 2018”), Hunt CRE 2017-FL1 Seller, LLC, a Delaware limited liability
company (“Hunt Seller 2017”) Hunt CRE 2018-FL2 Seller, LLC, a Delaware limited liability company (“Hunt
Seller 2018”) and the Collateral Agent.

 

“Negative
Pledgor Subsidiaries” means HCMT, Hunt Preferred 2017, Hunt Preferred 2018, Hunt Seller 2017 and Hunt Seller 2018.

 

“Non-Consenting
Lender” has the meaning set forth in Section 11.2.

 

“Notes”
means any promissory note requested by a Lender evidencing a Loan made under this Agreement.

 

    	 	- 25 -	 

     

    

 

 

“Obligations”
means all loans (including the Loans), debts, principal, interest (including any interest that accrues after the commencement of
an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding),
premiums, liabilities (including all amounts charged to the Borrower’s Loan Account pursuant hereto), obligations (including
indemnification obligations), fees, charges, costs, expenses (including Lender Group Expenses) (including any portion thereof that
accrues after the commencement of an Insolvency Proceeding, whether or not allowed or allowable in whole or in part as a claim
in any such Insolvency Proceeding), lease payments, guaranties, covenants, and duties of any kind and description incurred and
outstanding by the Borrower to the Lender Group pursuant to or evidenced by the Loan Documents and irrespective of whether for
the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising,
and including all interest not paid when due and all expenses that the Borrower is required to pay or reimburse by the Loan Documents,
by law or otherwise. Any reference in this Agreement or in the Loan Documents to the Obligations shall include all extensions,
modifications, renewals, or alterations thereof, both prior and subsequent to any Insolvency Proceeding.

 

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

 

“OID”
means original issue discount.

 

“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 such Recipient having executed, delivered,
become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged
in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).

 

“Other Taxes”
means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment
made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security
interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed
with respect to an assignment (other than an assignment made pursuant to Section 11.2).

 

“Participant”
has the meaning set forth in Section 9.1(d).

 

“Participant
Register” has the meaning set forth in Section 9.1(d).

 

“PATRIOT Act”
means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (Title
III of Pub. L. 107-56 (signed into law October 26, 2001)), as the same has been, or shall hereafter be, renewed, extended, amended
or replaced.

 

“Payment Date
Statement” means the payment date statement to be provided by the Administrative Agent to the Lenders pursuant to Section
10.1, substantially in the form of Exhibit C-1 hereto.

 

“Payment Default”
means an Event of Default described in Section 7.1(a) hereof.

 

“PBGC”
means the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA (or any successor).

 

    	 	- 26 -	 

     

    

 

“Pension Act”
means the Pension Protection Act of 2006.

 

“Pension Funding
Rules” means the rules of the Code and ERISA regarding minimum funding standards and minimum required contributions (including
any installment payment thereof) to a Single Employer Plan or Multiemployer Plan 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, thereafter, Sections 412, 430, 431 and 436 of the Code and Sections 302,303, 304 and 305 of ERISA.

 

“Permitted
Collateral Liens” means: (a) Liens for taxes, assessments, or governmental charges or claims the payment of which is
not, at such time, required by Section 5.5 hereof, (b) any attachment or judgment Lien and Liens incurred to secure
any surety bonds, appeal bonds, supersedeas bonds, or other instruments serving a similar purpose in connection with the appeal
of any such judgment, in each case, so long as such judgments do not constitute an Event of Default under Section 7.1(h)
of this Agreement, (c) banker’s Liens in the nature of rights of setoff arising in the ordinary course of business of the
Borrower or any of its Subsidiaries, (d) Liens granted by the Borrower or any of its Subsidiaries to the Collateral Agent,
for the benefit of the Secured Parties, in order to secure its Obligations under this Agreement and the other Loan Documents to
which it is a party, (e) Liens and deposits in connection with workers’ compensation, unemployment insurance, social security
and other legislation affecting the Assets, (f) Liens arising by operation of law in favor of carriers, warehousemen, landlords,
mechanics, materialmen, laborers or employees for sums that are not yet delinquent or are being diligently contested in good faith,
(g) easements, rights of way, zoning restrictions and similar encumbrances on real property and minor irregularities in the title
thereto that do not (i) secure obligations for the payment of money or (ii) materially impair the value of such property or its
use by any Loan Party or any of its Subsidiaries in the normal conduct of such Person’s business, (h) leases or subleases
granted to other Persons not materially interfering with the conduct of the business of the Borrower or any of its Subsidiaries,
(i) Liens in connection with the financing of insurance premiums permitted by Section 6.1(1) provided that such Liens are
limited to the applicable unearned insurance premiums, (j) Liens in favor of any escrow agent solely on and in respect of any cash
earnest money deposits made by the Borrower or any of its Subsidiaries incurred in the ordinary course of business and in connection
with any letter of intent or purchase agreement (to the extent that the acquisition or disposition with respect thereto is otherwise
permitted hereunder), (k) Liens encumbering customary initial deposits and margin deposits, and similar Liens and margin deposits,
and similar Liens attaching to commodity trading accounts and other brokerage accounts incurred in the ordinary course of business,
(1) Liens deemed to exist as a matter of law in connection with permitted repurchase obligations incurred in the ordinary course
of business or set-off rights and (m) Liens in favor of collecting banks arising under Section 4-210 of the UCC.

 

“Permitted
Debt Certificate” has the meaning set forth in Section 10.12(a)(ii)(A).

 

“Permitted
Liens” means the collective reference to the Liens permitted by Section 6.2.

 

“Person”
means and includes natural persons, corporations, partnerships, limited liability companies, joint ventures, associations, companies,
business trusts, or other organizations, irrespective of whether they are legal entities.

 

    	 	- 27 -	 

     

    

 

“Plan”
means any “employee benefit plan” as defined in Section 3(3) of ERISA which is sponsored, maintained or contributed
to by, or required to be contributed to by, the Borrower or any of its ERISA Affiliates or with respect to which the Borrower or
any of its ERISA Affiliates has or could reasonably be expected to have liability, contingent or otherwise, under ERISA.

 

“Pledged Equity
Interests” has the meaning set forth in the Security Agreement.

 

“Pledged Securities”
has the meaning set forth in the Security Agreement.

 

“Preferred
Equity Investment” means a direct or indirect preferred equity ownership interest in a Person owning, operating or controlling,
directly or indirectly, one or more multifamily or commercial real estate properties that are either fully constructed or undergoing
full or partial construction or renovation.

 

“Pro Rata
Share” means, as of any date of determination, with respect to a Lender’s obligation to make Loans and receive
payments of principal, interest, fees, costs, and expenses or other amounts with respect thereto, the percentage obtained by dividing
(y) the aggregate outstanding principal amount of such Lender’s Loans by (z) the aggregate outstanding principal amount of
all Loans; provided, that if at the time of such determination, all Loans have been paid-in-full, then such determination
shall be based on the outstanding principal amount of the Loans as of the next preceding Business Day prior to the last date on
which any Loans were outstanding.

 

“Purchase
Money Obligation” shall mean, for any Person, the obligations of such Person in respect of Debt (including Capitalized
Lease Obligations) incurred for the purpose of financing all or any part of the purchase price of any fixed or capital assets or
the cost of installation, construction or improvement of any fixed or capital assets; provided, however, that (i)
such Debt is incurred within ninety (90) days after such acquisition, installation, construction or improvement of such fixed or
capital assets by such Person and (ii) the amount of such Debt does not exceed the lesser of 100% of the fair market value of such
fixed or capital asset or the cost of the acquisition, installation, construction or improvement thereof, as the case may be.

 

“Proceeds”
shall mean all “proceeds” as such term is defined in Section 9-102(a)(64) of the UCC and, in any event, shall include,
without limitation, all dividends or other income from the Pledged Securities, collections thereon and distributions or payments
with respect thereto.

 

“Recipient”
means any Agent and any Lender, as applicable.

 

“Register”
has the meaning set forth in Section 9.1(c).

 

“Regulation
T” means Regulation T of the Board of Governors as in effect from time to time.

 

“Regulation
U” means Regulation U of the Board of Governors as in effect from time to time.

 

“Regulation
X” means Regulation X of the Board of Governors as in effect from time to time.

 

    	 	- 28 -	 

     

    

 

“REIT”
has the meaning set forth in Section 6.4.

 

“Removal Event”
shall have occurred in respect of a Person then serving as an Agent under this Agreement if a court of competent jurisdiction shall
have determined in a final judgment that such Person, or any of its officers, directors, employees or agents, or other persons
under its direction or control, shall have engaged in any actions or omissions that constitute gross negligence, willful misconduct
or bad faith in connection with the performance of its obligations under this Agreement as Agent and such actions or omissions
have a material adverse effect on the Lenders or if an Insolvency Proceeding has commenced with respect to an Agent.

 

“Report”
has the meaning set forth in Section 10.17(a).

 

“Request for
Borrowing” means an irrevocable written notice from any of the individuals identified on Exhibit R-1 attached
hereto (or, in certain cases, two of such individuals, all as set forth in further detail in Exhibit R-1 attached hereto)
to the Administrative Agent of the Borrower’s request for a Loan, which notice shall be substantially in the form of Exhibit
R-2 attached hereto.

 

“Required
Agents” either Agent acting at the direction of the Required Lenders.

 

“Required
Lenders” means, at any time, (a) Lenders holding 100% of the aggregate amount of the Loans then outstanding at any time
there are two or fewer Lenders and (b) Lenders holding more than 50% of the aggregate amount of the Loans then outstanding at any
time there are three or more Lenders; provided that, for purposes of determining whether there are two or fewer or three
or more Lenders at any time, Affiliates of any Lender shall, collectively, be deemed to be one Lender; provided, further,
that, for so long as Lenders managed by J.P. Morgan Investment Management Inc. (taken as a whole) hold more than 20% of the aggregate
amount of the Loans then outstanding, such Lenders shall be one of the Required Lenders pursuant to clause (a) and (b) above.

 

“Resignation
Effective Date” has the meaning set forth in Section 10.9(a).

 

“Responsible
Officer” means the president, chief executive officer, chief operating officer, chief financial officer, secretary, general
counsel, vice president, manager, treasurer or controller of a Person or such Person’s external manager, or such other officer
of such Person or external manager designated by a Responsible Officer in a writing delivered to the Agents.

 

“Restricted
Asset” has the meaning ascribed thereto in the Negative Pledge Agreement.

 

“Sanctioned
Country” means, at any time, a country, region or territory that is subject to any country-wide or territory-wide Sanctions.

 

“Sanctioned
Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC,
the U.S. Department of State, the United Nations Security Council, (b) any Person operating, organized or resident in a Sanctioned
Country or (c) any Person owned or controlled by any such Person or Persons described in the foregoing clauses (a)
or (b).

 

    	 	- 29 -	 

     

    

 

“Sanctions”
means all economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S.
government, including those administered by OFAC or the U.S. Department of State or (b) the United Nations Security Council.

 

“SEC”
means the Securities and Exchange Commission of the United States of America or any successor thereto.

 

“Second Valuation”
has the meaning as set forth in Section 11.5.

 

“Second Valuation
Agent” means any independent broker (other than the Initial Valuation Agent) acceptable to the Borrower undertaken to
determine the Second Valuation; provided that (i) with respect to valuations of Mortgage Assets, such entity shall be an appraiser
who is a licensed member of the Appraisal Institute who prepares appraisals in the state where the Mortgage Asset is located and
(ii) such entity must be active in establishing a fair market value of assets substantially similar to the applicable Borrowing
Base Eligible Asset.

 

“Secured Obligations”
means all Obligations.

 

“Secured Parties”
has the meaning set forth in the Security Agreement.

 

“Securities”
means the capital stock, membership interests, partnership interests (whether limited or general) or other securities or equity
interests of any kind of a Person, all warrants, options, convertible securities, and other interests which may be exercised in
respect of, converted into or otherwise relate to such Person’s capital stock, membership interests, partnership interests
(whether limited or general) or other equity interests and any other securities, including debt securities of such Person.

 

“Securitization
Entity” has the meaning defined in the definition of “Securitization Transaction.”

 

“Securitization
Indebtedness” means (a) indebtedness of any Subsidiaries of the Borrower incurred pursuant to on-balance sheet Securitization
Transactions treated as financings and (b) any indebtedness or other securities issued by a Securitization Entity or a Subsidiary
of the Borrower pursuant to a Securitization Transaction, which, in each case, is non-recourse to the Borrower (except for customary
representations, warranties, covenants, indemnities and other agreements made or given by the Borrower, or made or given by a Subsidiary
of the Borrower and guaranteed by the Borrower, in connection with a Securitization Transaction).

 

“Securitization
Transaction” means a public or private transfer, sale or financing of servicing advances and/or mortgage loans, installment
contracts, other loans and any other financial asset capable of being securitized by which the Borrower or any of its Subsidiaries
directly or indirectly securitizes a pool of specified financial assets including, without limitation, any such transaction involving
the sale of specified servicing advances or mortgage loans (directly or through a depositor) to a special purpose entity (a “Securitization
Entity”) established for the purpose of issuing asset-backed or mortgaged-backed or mortgage pass-through securities
of any kind.

 

    	 	- 30 -	 

     

    

 

“Security
Agreement” means that certain Pledge and Security Agreement, dated contemporaneously herewith, among Borrower, the Guarantors,
the other Grantors from time to time party thereto and the Collateral Agent.

 

“Senior Commercial
Real Estate Construction Loan” means a whole loan (or senior or pari passu interest therein) made to finance the construction
of multi-family or commercial real estate properties and secured by a mortgage thereon, which loan is not subordinate in right
of payment to any separate loan secured by the same property.

 

“Senior Commercial
Real Estate Loan” means a whole loan (or senior or pari passu interest therein) secured by a mortgage on multi-family
or commercial real estate properties, which loan is not subordinate in right of payment to any separate loan secured by the same
property; provided, that a Senior Commercial Real Estate Construction Loan shall not constitute a Senior Commercial Real
Estate Loan.

 

“Single Employer
Plan” means any Plan that is covered by Title W of ERISA or the Pension Funding Rules, but which is not a Multiemployer
Plan.

 

“Solvent”
means, with respect to any Person, as of any date of determination, (a) the amount of the “present fair saleable value”
of the assets of such Person will, as of such date, exceed the amount of all “liabilities of such Person, contingent or otherwise,”
as of such date, (b) the “present fair saleable value” of the assets of such Person will, as of such date, be
greater than the amount that will be required to pay the liability of such Person on its debts as such debts become absolute and
matured, (c) such Person will not have, as of such date, an unreasonably small amount of capital with which to conduct its business,
(d) such Person will be able to pay its debts as they mature and (e) such Person is not insolvent within the meaning of any applicable
requirements of law. For purposes of this definition, (i) “debt” shall mean liability on a “claim,”
(ii) “claim” shall mean any (A) right to payment, whether or not such a right is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured or (B) right
to an equitable remedy for breach of performance if such breach gives rise to a right to payment, whether or not such right to
an equitable remedy is reduced to judgment, fixed, contingent, matured or unmatured, disputed, undisputed, secured or unsecured
and (iii) such other quoted terms used in this definition shall be determined in accordance with applicable federal and state laws
governing determinations of the insolvency of debtors.

 

“Specified
Third Party Securitization” means any securitization transaction that was not established or sponsored by Borrower or
Borrower’s external manager or any of their respective Affiliates.

 

“Subordinated
Commercial Real Estate Loan” means (1) a whole loan (or interest therein) secured by a mortgage on multi-family or commercial
real estate properties, which loan is subordinate in right of payment to one or more separate loans secured by the same applicable
property, (2) a subordinate interest in a Senior Commercial Real Estate Loan (including, without limitation, a B Note) or (3) a
Mezzanine Loan; provided, that for the avoidance of doubt, (i) a Preferred Equity Investment shall not constitute a Subordinated
Commercial Real Estate Loan and (ii) a subordinate or mezzanine interest in a commercial real estate construction shall not be
a Subordinated Commercial Real Estate Loan.

 

    	 	- 31 -	 

     

    

 

“Subsidiary”
means, with respect to any Person, any corporation, partnership, association, joint venture, limited liability company or other
entity (heretofore, now or hereafter established) of which at least a majority of the securities or other ownership interests having
by the terms thereof ordinary voting power to elect a majority of the board of directors or other persons performing similar functions
of such corporation, partnership, limited liability company or other entity (without regard to the occurrence of any contingency)
is at the time directly or indirectly owned or controlled by such Person or one or more Subsidiaries of such Person or by such
Person and one or more Subsidiaries of such Person, and shall include all Persons the accounts of which are consolidated with those
of such Person pursuant to GAAP; provided that no issuer of a Specified Third Party Securitization shall be considered a
“Subsidiary” of Borrower or any of its Affiliates.

 

“Swap Agreement”
means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving,
or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination
of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services
provided by current or former directors, officers, employees or consultants of any of the Loan Parties shall be a Swap Agreement.

 

“Tangible
Net Worth” means with respect to any Person and any date, all amounts that would be included under capital or shareholder’s
equity (or any like caption) on the balance sheet of such Person (inclusive of preferred equity, irrespective of GAAP treatment
of such preferred equity, so long as such preferred equity does not have any mandatory redemption provisions that are applicable
until the date that is ninety-one (91) days after the Maturity Date of the Loans), minus (a) amounts owing to that
Person from any Affiliate thereof, or from officers, employees, partners, members, directors, shareholders or other Persons similarly
affiliated with such Person or any Affiliate thereof, (b) intangible assets, and (c) prepaid taxes and/or expenses, plus deferred
origination fees, net of deferred origination costs, all on or as of such date; provided that “Tangible Net Worth”
shall be determined without regard to the effects of consolidation of any issuer of a Specified Third Party Securitization on
the financial statements of such Person under Accounting Standards Codification Section 810, as amended, modified or supplemented
from time to time, or otherwise under GAAP. For sake of clarity, mortgage servicing rights shall not be deemed to be intangible
assets and shall be accounted for using their fair market value.

 

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

  

    	 	- 32 -	 

     

    

 

“Term Loan
Commitment” means, as to any Lender, the obligation of such Lender, if any, to make an Initial Term Loan to the Borrower
hereunder in a principal amount not to exceed the amount set forth under the heading “Term Loan Commitment” opposite
such Lender’s name on Annex A-1 or, as the case may be, in the Assignment and Acceptance pursuant to which such Lender
became a party hereto, as the same may be changed from time to time pursuant to the terms hereof; provided, that, with respect
to the Initial Term Loan, if the Closing Date does not occur on or prior to Term Loan Commitment Termination Date, the Term Loan
Commitment shall terminate on the Term Loan Commitment Termination Date.

 

“Term Loan
Commitment Termination Date” means March 31, 2019.

 

“Term Loan
Increase” has the meaning set forth in Section 2.15(a).

 

“Term Loan
Maturity Date” means (a) with respect to the Initial Term Loans, the Maturity Date and (b) with respect to any Incremental
Term Loans, the final maturity date as specified in the applicable Incremental Amendment; provided that, if any such day
is not a Business Day, the applicable Term Loan Maturity Date shall be the Business Day immediately succeeding such day.

 

“Test Period”
means the time period from the first day of each fiscal quarter, through and including the last day of such fiscal quarter.

 

“Third Valuation”
has the meaning as set forth in Section 11.5.

 

“Third Valuation
Agent” means any independent broker (other than the Initial Valuation Agent and the Second Valuation Agent) acceptable
to the Borrower and the Required Lenders undertaken to determine the Third Valuation; provided that (i) with respect to valuations
of Mortgage Assets, such entity shall be an appraiser who is a licensed member of the Appraisal Institute who prepares appraisals
in the state where the Mortgage Asset is located and (ii) such entity must be active in establishing a fair market value of assets
substantially similar to the applicable Borrowing Base Eligible Asset.

 

“Total Net
Leverage Ratio” means, at any date, the ratio of (a) aggregate outstanding consolidated Debt of the Borrower and its
Subsidiaries (net of any unrestricted cash and Cash Equivalents and Warehousing Debt secured by loans available for sale) on such
date to (b) consolidated Tangible Net Worth of the Borrower and its Subsidiaries for the most recently ended Test Period.

 

“Transactions”
means collectively, the transactions to occur on or prior to the Closing Date including the execution, delivery and performance
of the Loan Documents, the initial borrowings hereunder and the use of proceeds thereof.

 

    	 	- 33 -	 

     

    

 

“Treasury
Constant Yield” means the arithmetic mean of the rates published as “Treasury Constant Maturities” as of
5:00 p.m. (Eastern time), for the five (5) Business Days preceding the date on which acceleration has been declared, or, as applicable,
the date on which a prepayment subject to a Yield Maintenance Premium pursuant to this Agreement is made, as shown on the USD screen
of Reuters (or such other page as may replace that page on that service, or such other page or replacement therefor on any successor
service), or if such service is not available, the Bloomberg Service (or any successor service), or if neither Reuters nor the
Bloomberg Service is available, under Section 504 in the weekly statistical release designated H.15(519) (or any successor publication)
published by the Board of Governors of the Federal Reserve System, for “On the Run” United States Treasury obligations
with a term corresponding to the period beginning on the date of prepayment and ending on the Yield Maintenance Date. If no such
maturity shall so exactly correspond, yields for the two most closely corresponding published maturities shall be calculated pursuant
to the foregoing sentence and the Treasury Constant Yield shall be interpolated or extrapolated (as applicable) from such yields
on a straight-line basis (rounding, in the case of relevant periods, to the nearest month).

 

“UCC”
means the New York Uniform Commercial Code as in effect from time to time.

 

“Underwriting
Guidelines” means the underwriting guidelines of the Borrower and its Subsidiaries set forth on Exhibit U-1 hereto, with
any changes thereto approved in writing by the Required Lenders.

 

“Unencumbered
Asset Ratio” means, at any date, the ratio of (a) the sum of (i) the Assigned Value of the Borrowing Base Eligible Assets
comprised of Senior Commercial Real Estate Loans and Senior Commercial Real Estate Construction Loans that are not encumbered by
a Lien other than Permitted Liens plus (ii) the Assigned Value of other Borrowing Base Eligible Assets that are not encumbered
by a Lien other than Permitted Liens to (b) the aggregate principal amount of funded and outstanding Loans.

 

“Updated Valuation”
has the meaning set forth in Section 11.5.

 

“Upfront Fees”
shall have the meaning assigned to such term in the Fee Side Letter.

 

“VAE”
means with respect to (a) any Borrowing Base Eligible Asset or (b) in the case of a Borrowing Base Eligible Asset that is comprised
of Securities in a Borrowing Base Subsidiary, one or more related Mortgage Assets, as applicable, the occurrence of any of the
following:

 

	 	(i)	any payment default or any other default(s) (in each case, after giving effect to any applicable grace, cure or notice periods in accordance with the underlying loan documents) that, in the case of a non-payment default, could, individually or in the aggregate, reasonably be expected to materially and adversely affect value of such Borrowing Base Eligible Asset or Mortgage Asset as a whole;
	 	 	 
	 	(ii)	an insolvency event with respect to an underlying borrower;
	 	 	 
	 	(iii)	the loan to value percentage is greater than 90%;
	 	 	 
	 	(iv)	for any Subordinated Commercial Real Estate Loan or Preferred Equity Investment, the first lien loan to value is greater than 80%;

 

    	 	- 34 -	 

     

    

 

	 	(v)	for any Mortgage Assets held by a Borrowing Base Debt Subsidiary or in a Securitization Transaction, the aggregate outstanding principal balance of the associated Warehousing Debt, Securitization Indebtedness or other debt exceeds: (A) with respect to floating rate collateral, 87% of the aggregate outstanding principal balance of all Mortgage Assets of such Borrowing Base Debt Subsidiary or Securitization Transaction, as applicable and (B) with respect to fixed rate collateral, 93% of the aggregate outstanding principal balance of all Mortgage Assets of such Borrowing Base Debt Subsidiary or Securitization Transaction, as applicable;
	 	 	 
	 	(vi)	the occurrence of a Material Modification with respect to such Borrowing Base Eligible Asset or Mortgage Asset, as applicable; and
	 	 	 
	 	(vii)	a default (after giving effect to any applicable grace, cure or notice periods as such periods may be extended with the approval of the applicable counterparties to such Warehousing Debt) that occurs under any Warehousing Debt or Securitization Indebtedness for which a Borrowing Base Debt Subsidiary is a sponsor, issuer or borrower that results in a Material Adverse Effect on the value of such Borrowing Base Debt Subsidiary as a whole.

 

“Valuation
Agent” means, any of the Initial Valuation Agent, Second Valuation Agent and/or the Third Valuation Agent, as the context
may require.

 

“Valuation
Confirmation Process” has the meaning as set forth in Section 11.5.

 

“Valuation
Report” has the meaning as set forth in Section 11.5.

 

“Warehousing
Debt” means any warehouse, purchase, repurchase, participation or other similar financing facility extended by a lender
or repo buyer to the Borrower or a Subsidiary thereof to finance the funding, acquisition or ownership of (a) Senior Commercial
Real Estate Loans, (b) Senior Commercial Real Estate Construction Loan, (c) Subordinated Commercial Real Estate Loan, (d) Mezzanine
Loans or (e) mortgage loans, mortgaged-backed or mortgage pass-through securities or other mortgage-related assets of any kind,
but only for such time as the foregoing remain financed under such facility.

 

“Weighted
Average Life to Maturity” means, when applied to any Debt 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 installment, sinking fund, serial maturity
or other required payments of principal, including payment at final 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 Debt.

 

“Withdrawal
Liability” means any liability to a Multiemployer Plan as a result of a “complete withdrawal” or “partial
withdrawal” from such Multiemployer Plan, as such terms are defined in Section 4201(b) of ERISA.

 

“Withholding
Agent” means any Loan Party and any Agent.

 

“Yield Maintenance
Date” means the date which is the four year anniversary of the Closing Date.

 

    	 	- 35 -	 

     

    

 

“Yield Maintenance
Premium” means, with respect to any Loan prepaid prior to the Yield Maintenance Date, for the benefit of each Lender,
an amount equal to the product of:

 

(i)          a fraction whose
numerator is the principal amount of the Loans so prepaid and whose denominator is the aggregate principal amount of the Loans
outstanding before giving effect to such payment, multiplied by

 

(ii)         the excess of
(A) the sum of the respective present values (computed as of the date of prepayment) of the remaining scheduled payments (assuming
such payments are made as scheduled) of principal and interest with respect to the portion of the Loans prepaid prior to the Yield
Maintenance Date (assuming no prepayments or acceleration of the Loans ahead of the Yield Maintenance Date and all remaining principal
amount on the Loans on the Yield Maintenance Date is paid in a single balloon payment on the Yield Maintenance Date), determined
by discounting such payments to the date on which such prepayment is made at a rate, when compounded monthly, is equivalent to
the Treasury Constant Yield plus 1.00% when compounded semi-annually (for the avoidance of doubt deducting from the sum of such
present values any interest paid for the period from the date of prepayment to the next succeeding Payment Date in the event such
payment is not made on a Payment Date), over (B) the aggregate principal amount of the Loans outstanding on such date immediately
prior to such prepayment;

 

provided that the Yield Maintenance
Premium shall not be less than one percent (1.00%) of the principal amount of the Loans so prepaid. For the avoidance of doubt,
the Yield Maintenance Premium shall be $0 for any Loans prepaid after the Yield Maintenance Date.

 

1.2          Construction.
Unless the context of this Agreement clearly requires otherwise, references to the plural include the singular and to the singular
include the plural, the part includes the whole, the term “including” is not limiting, and the term “or”
has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or.” References in this
Agreement to a “determination” or “designation” include estimates by the Agents (in the case of quantitative
determinations or designations), and beliefs by the Agents (in the case of qualitative determinations or designations). The words
“hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement
refer to this Agreement as a whole and not to any particular provision of this Agreement. Article, section, subsection, clause,
exhibit, and schedule references are to this Agreement unless otherwise specified. Any reference herein to this Agreement or any
of the Loan Documents includes any and all alterations, amendments, restatements, changes, extensions, modifications, renewals,
or supplements thereto or thereof, as applicable, made in accordance with the terms hereof or thereof. Any reference herein or
in any other Loan Document to the satisfaction or repayment in full of the Obligations, any reference herein or in any other Loan
Document to the Obligations being “paid in full” or “repaid in full” (except as set forth in Section
2.3(a)(v)), and any reference herein or in any other Loan Document to the action by any Person to repay the Obligations in
full, shall mean the repayment in full in cash in Dollars of all Obligations other than contingent indemnification Obligations
as to which no claim has been asserted or is anticipated. All payments hereunder or any other Loan Document in respect of the
Obligations shall be made in Dollars.

 

    	 	- 36 -	 

     

    

 

1.3          Accounting
Terms; GAAP; Pro Forma Calculations. (a) Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time;
provided that, if the Borrower notifies Agents that the Borrower wishes to amend any provision hereof to eliminate the
effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision
(or if any Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose),
regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then the Borrower’s
(and the Guarantor’s, as applicable) compliance with such provision shall be determined on the basis of GAAP as in effect
and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision
amended in accordance herewith.

 

Article
II

AMOUNT AND TERMS OF LOANS

 

2.1          Credit
Facilities. Subject to the terms and conditions of this Agreement:

 

(a)          Each
Lender agrees, severally and not jointly, to make an Initial Term Loan (the “Initial Term Loan”) to the Borrower
on the Closing Date in an amount equal to the Term Loan Commitment of such Lender; provided, that such Closing Date shall occur
no later than the Term Loan Commitment Termination Date.

 

(b)          The
Borrower may make only one borrowing under the Term Loan Commitment, which shall be on the Closing Date. Any amount borrowed under
this Section 2.1(a) and subsequently repaid or prepaid may not be reborrowed. Subject to Section 2.7 and Section
2.8, all amounts owed hereunder with respect to the Initial Term Loans shall be paid in full no later than the Maturity Date.
Each Lender’s Term Loan Commitment shall terminate immediately and without further action on the Closing Date after giving
effect to the funding of such Lender’s Term Loan Commitment on the Closing Date.

 

2.2          [Reserved].

 

2.3          Interest
Rates; Payment of Principal and Interest.

 

(a)          Borrower
shall make each payment due hereunder by making, or causing to be made in Dollars in immediately available funds, the amount thereof
available to Agent’s Account, not later than 1:00 p.m. (Eastern Time), on the date of payment, for the account of the Lender
Group. All payments received by the Administrative Agent after 1:00 p.m. (Eastern Time), may be deemed received on the next Business
Day (in the Administrative Agent’s sole discretion) and any applicable interest shall continue to accrue.

 

(i)          Unless
the Administrative Agent receives written notice from Borrower prior to the date on which any payment is due to the Lenders that
the Borrower will not make such payment in full in Dollars in immediately available funds as and when required, the Administrative
Agent may assume that the Borrower has made (or will make) such payment in full to the Administrative Agent on such date in Dollars
in immediately available funds and the Administrative Agent may (but shall not be so required), in reliance upon such assumption,
distribute to each Lender on such due date an amount equal to the amount then due such Lender.

 

    	 	- 37 -	 

     

    

 

(ii)         Except
as otherwise provided with respect to Defaulting Lenders, aggregate principal and interest payments shall be apportioned among
the Lenders in accordance with their Pro Rata Share and applied thereto and payments of fees and expenses (other than fees or expenses
that are for the Administrative Agent’s separate account, after giving effect to any agreements between the Agents and individual
Lenders) shall be apportioned ratably among the Lenders in accordance with Section 2.17. All payments shall be remitted
to the Agents and all such payments, and all Proceeds of Collateral received by the Agents, shall be applied as follows:

 

(A)         first,
to pay any fees and Lender Group Expenses then due to the Agents under the Loan Documents, until paid in full,

 

(B)         second,
to pay any fees and Lender Group Expenses then due to the Lenders (other than Defaulting Lenders) under the Loan Documents, on
a ratable basis, until paid in full,

 

(C)         third,
ratably to pay interest due to the Lenders (other than Defaulting Lenders) in respect of the Loans until paid in full,

 

(D)         fourth,
to pay the principal of all Loans then due to the Lenders (other than Defaulting Lenders) until paid in full,

 

(E)         fifth,
to pay any other Obligations owed to Lenders (other than Defaulting Lenders), until paid in full,

 

(F)         sixth,
to pay any Obligations owed to Defaulting Lenders until paid in full, and

 

(G)         seventh,
to the Borrower (to be wired to the Designated Account) or such other Person entitled thereto under applicable law.

 

(iii)        the
Administrative Agent promptly shall distribute to each Lender, pursuant to the applicable wire instructions received from each
Lender in writing, such funds as it may be entitled to receive.

 

(iv)        For
purposes of the foregoing, “paid in full” means payment of all amounts owing under the Loan Documents according to
the terms thereof, including loan fees, service fees, professional fees, interest (and specifically including interest accrued
after the commencement of any Insolvency Proceeding), default interest, interest on interest, and expense reimbursements, whether
or not any of the foregoing would be or is allowed or disallowed in whole or in part in any Insolvency Proceeding, other than contingent
indemnification Obligations as to which no claim has been asserted or is anticipated.

 

    	 	- 38 -	 

     

    

 

(v)         In
the event of a direct conflict between the priority provisions of this Section 2.3 and other provisions contained in any
other Loan Document, it is the intention of the parties hereto that such priority provisions in such documents shall be read together
and construed, to the fullest extent possible, to be in concert with each other. In the event of any actual, irreconcilable conflict
that cannot be resolved as aforesaid, the terms and provisions of this Section 2.3 shall control and govern.

 

(b)          Each
Loan shall bear interest upon the unpaid principal balance thereof, from the date advanced or continued, at a rate, per annum,
equal to the lesser of (i) the Interest Rate and (ii) the Highest Lawful Rate. Interest due with respect to each Loan shall be
due and payable, in arrears, on each Interest Payment Date applicable to that Loan and on the Maturity Date.

 

(c)          Unless
prepaid in accordance with the terms hereof, the outstanding principal balance of all Loans, together with accrued and unpaid interest
thereon, shall be due and payable, in full, on the Maturity Date.

 

(d)          Any
Lender by written notice to the Borrower (with a copy to the Agents) may request that Loans made by it be evidenced by a promissory
note. In such event, the Borrower shall execute and deliver to such Lender a promissory note, substantially in the form of Exhibit
A-2 payable to such Lender (or, if requested by such Lender, to such Lender and its registered assigns). Thereafter, the Loans
evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 9.1)
be represented by one or more promissory notes in such form payable to the payee named therein (or to such payee and its registered
assigns). For the avoidance of doubt, assignments of any Loans by Lenders (irrespective of whether promissory notes are issued
hereunder) shall be in accordance with the provisions of Section 9.1 of this Agreement.

 

2.4          Computation
of Interest and Fees; Maximum Interest Rate.

 

(a)          All
computations of interest with respect to the Loans and computations of the fees due hereunder for any period shall be calculated
on the basis of a year of 360 days for the actual number of days elapsed in such period. Interest shall accrue from the first day
of the making of a Loan (or the date on which interest or fees or other payments are due hereunder, if applicable) to (but not
including) the date of repayment of such Loan (or the date of the payment of interest or fees or other payments, if applicable)
in accordance with the provisions hereof.

 

(b)          Anything
to the contrary contained in this Agreement notwithstanding, the Borrower shall not be obligated to pay, and the Agents shall not
be entitled to charge, collect, receive, reserve, or take interest (it being understood that interest shall be calculated as the
aggregate of all charges which constitute interest under applicable law that are contracted for, charged, reserved, received, or
paid) in excess of the Highest Lawful Rate. During any period of time in which the interest rates specified herein exceed the Highest
Lawful Rate, interest shall accrue and be payable at such Highest Lawful Rate; provided, however, that, if the interest
rate otherwise applicable hereunder declines below the Highest Lawful Rate, interest shall continue to accrue and be payable at
the Highest Lawful Rate (so long as there remains any unpaid principal with respect to the Loans) until the interest that has been
paid hereunder equals the amount of interest that would have been paid if interest had at all times accrued and been payable at
the applicable interest rates otherwise specified in this Agreement. For purposes of this Section 2.4, the term “applicable
law” shall mean that law in effect from time to time and applicable to this loan transaction which lawfully permits the charging
and collection of the highest permissible, lawful, non-usurious rate of interest on such loan transaction and this Agreement, including
laws of the State of New York and, to the extent controlling or the laws of the United States of America.

 

    	 	- 39 -	 

     

    

 

2.5          Request
for Borrowing.

 

(a)          Each
Loan shall be made on a Business Day.

 

(b)          Each
Loan that is proposed to be made after the Closing Date shall be made upon written notice, by way of a Request for Borrowing, which
Request for Borrowing shall be irrevocable and shall be given by mail, electronic mail (in a format bearing a copy of the signature(s)
required thereon), or personal service, and delivered to the Administrative Agent at the address provided in Exhibit 11.3,
by the Borrower giving the Administrative Agent notice at least ten (10) Business Days before the date the Loan is to be made,
and such notice shall specify that a Loan is requested and state the amount (subject to the provisions of this Article II).

 

(c)          If
the notice provided for in clause (b) of this Section 2.5 with respect to a Loan is received by the Administrative
Agent not later than 1:00 p.m. (Eastern Time), on a Business Day, such day shall be treated as the first Business Day of the required
notice period. In any other event, such notice will be treated as having been received immediately before 1:00 p.m. (Eastern Time)
of the next Business Day and such day shall be treated as the first Business Day of the required notice period.

 

(d)          Promptly
after receipt of a Request for Borrowing pursuant to Section 2.5(b), the Administrative Agent shall notify the Lenders on
the same Business Day that the Administrative Agent receives such Request for Borrowing (or the next Business Day of such Request
for Borrowing is received after 1:00 p.m. (Eastern Time) on such Business Day), by electronic mail (in a format bearing a copy
of the signature(s) required thereon) or other similar form of transmission, of the requested Loan. Each Lender shall make the
amount of such Lender’s Pro Rata Share of the requested Loan available to the Administrative Agent in immediately available
funds, to Agent’s Account, not later than 1:00 p.m. (Eastern Time) on the Funding Date applicable thereto. After the Administrative
Agent’s receipt of all proceeds of such Loans, the Administrative Agent shall make the proceeds thereof available to the
Borrower on the applicable Funding Date by transferring to the Designated Account immediately available funds equal to the proceeds
that are requested by the Borrower to be sent to the Borrower in the applicable Request for Borrowing or apply such proceeds (after
deduction of any Lender Group Expenses) as directed by the Borrower.

 

    	 	- 40 -	 

     

    

 

(e)          Unless
the Administrative Agent receives written notice from a Lender, prior to 12:00 p.m. (Eastern Time) on the date of such Loan, that
such Lender will not make available as and when required hereunder to the Administrative Agent for the account of the Borrower
the amount of that Lender’s Pro Rata Share of the Loan, the Administrative Agent may assume that each Lender has made or
will make such amount available to the Administrative Agent in immediately available funds on the Funding Date and the Administrative
Agent may (but shall not be so required), in reliance upon such assumption, make available to the Borrower on such date a corresponding
amount. If and to the extent any Lender (other than the Administrative Agent) shall not have made its full amount available to
the Administrative Agent in immediately available funds and the Administrative Agent in such circumstances has made available to
the Borrower such amount, that Lender shall on the Business Day following such Funding Date make such amount available to the Administrative
Agent, together with interest at the Defaulting Lender Rate for each day during such period. A notice submitted by the Administrative
Agent to any Lender with respect to amounts owing under this subsection shall be conclusive, absent manifest error. If such amount
is so made available, such payment to the Administrative Agent shall constitute such Lender’s Loan on the date of such Loan
for all purposes of this Agreement. If such amount is not made available to the Administrative Agent on the Business Day following
the Funding Date, the Administrative Agent will notify Borrower of such failure to fund and, upon demand by the Administrative
Agent, the Borrower shall pay such amount to the Administrative Agent for the Administrative Agent’s account, together with
interest thereon for each day elapsed since the date of such Loan, at a rate per annum equal to the interest rate applicable at
the time to the Loans composing such Loan, without in any way prejudicing the rights and remedies of the Borrower against the Defaulting
Lender.

 

    	 	- 41 -	 

     

    

 

(f)          Notwithstanding
the provisions of Section 2.3(a)(ii), the Administrative Agent shall not be obligated to transfer to a Defaulting Lender
any payments made by the Borrower to the Administrative Agent for the Defaulting Lender’s benefit or any Proceeds of Collateral
that would otherwise be remitted hereunder to the Defaulting Lender, and, in the absence of such transfer to the Defaulting Lender,
the Administrative Agent shall transfer any such payments (i) first, to the payment of any amounts owing by such Defaulting Lender
to the Administrative Agent hereunder, (ii) second, as the Borrower 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 Required Agents, (iii) third, if so determined by the Required Agents and the Borrower, 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, (iv) fourth, to the payment of any amounts owing to the Lenders as a result of
any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting
Lender’s breach of its obligations under this Agreement, (v) fifth, so long as no Default or Event of Default exists, to
the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the
Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement,
and (vi) sixth, 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 3.2 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 are held by the Lenders in accordance
with their Pro Rata Share. 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 pursuant to this Section 2.5(f) shall be deemed paid to and redirected
by such Defaulting Lender, and each Lender irrevocably consents hereto. Solely for the purposes of voting or consenting to matters
with respect to the Loan Documents (including the calculation of Pro Rata Share in connection therewith) and for the purpose of
calculating the fee payable under Section 2.9(b), such Defaulting Lender shall be deemed not to be a “Lender”
and such Lender’s Term Loan Commitment shall be deemed to be zero; provided, that the foregoing shall not apply to
any of the matters governed by Sections 11.2(a) through (c). This Section shall remain effective with respect to
such Defaulting Lender until the earlier of (y) the date on which all of the non-Defaulting Lenders, the Required Agents and the
Borrower shall have waived, in writing, the application of this Section 2.5(f) to such Defaulting Lender, or (z) the date
on which such Defaulting Lender makes payment of all amounts that it was obligated to fund hereunder, pays to the Administrative
Agent all amounts owing by Defaulting Lender in respect of the amounts that it was obligated to fund hereunder, and, if requested
by the Required Agents, provides adequate assurance of its ability to perform its future obligations hereunder (on which earlier
date, so long as no Event of Default has occurred and is continuing, any remaining cash collateral held by the Collateral Agent
pursuant to Section 2.5(f)(ii) shall be released to the Borrower). The operation of this Section shall not be construed
to increase or otherwise affect the Term Loan Commitment of any Lender, if any, to relieve or excuse the performance by such Defaulting
Lender or any other Lender of its duties and obligations hereunder, or to relieve or excuse the performance by the Borrower of
its duties and obligations hereunder to the Agents or to the Lenders other than such Defaulting Lender. Any failure by any Defaulting
Lender to fund amounts that it was obligated to fund hereunder shall constitute a material breach by such Defaulting Lender of
this Agreement and shall entitle the Borrower at its option, upon written notice to the Agents, to arrange for a substitute Lender
to assume the Term Loan Commitment of such Defaulting Lender, such substitute Lender to be reasonably acceptable to the Required
Agents. In connection with the arrangement of such a substitute Lender, the Defaulting Lender shall have no right to refuse to
be replaced hereunder, and agrees to execute and deliver a completed form of Assignment and Acceptance in favor of the substitute
Lender (and agrees that it shall be deemed to have executed and delivered such document if it fails to do so) subject only to being
repaid its share of the outstanding Obligations (including all interest, fees, and other amounts that may be due and payable in
respect thereof); provided, that any such assumption of the Term Loan Commitment of such Defaulting Lender shall not be
deemed to constitute a waiver of any of the Lender Groups’ or the Borrower’s rights or remedies against any such Defaulting
Lender arising out of or in relation to such failure to fund, including Borrower’s right to require Defaulting Lender to
reimburse the Borrower for any fees, charges or expenses incurred by the Borrower under this Section 2.5(f) as a result
of the failure by any Defaulting Lender to fund amounts that it was obligated to fund hereunder. In the event of a direct conflict
between the priority provisions of this Section 2.5(f) and any other provision contained in this Agreement or any other
Loan Document, it is the intention of the parties hereto that such provisions be read together and construed, to the fullest extent
possible, to be in concert with each other. In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid,
the terms and provisions of this Section 2.5(f) shall control and govern.

 

(g)          All
Loans shall be made by the Lenders contemporaneously and in accordance with their Pro Rata Shares. It is understood that (i) no
Lender shall be responsible for any failure by any other Lender to perform its obligation to make any Loan (or other extension
of credit) hereunder, nor shall any Commitment of any Lender be increased or decreased as a result of any failure by any other
Lender to perform its obligations hereunder, and (ii) no failure by any Lender to perform its obligations hereunder shall excuse
any other Lender from its obligations hereunder.

 

    	 	- 42 -	 

     

    

 

2.6          [Reserved].

 

2.7          Repayment
of Borrowings.

 

(a)          The
Borrower shall pay to the Administrative Agent in full and without notice or demand for the account of the Lenders, on the Maturity
Date, all amounts of the Loans then outstanding, in each case, together with accrued and unpaid interest on the principal amount
to be paid to but excluding the date of such payment.

 

(b)          All
repayments of the Loans made pursuant to this Section 2.7 shall be applied in the manner set forth in Section 2.3(a)(ii).

 

2.8          Prepayments.

 

(a)          The
Loans may not be voluntarily prepaid during the Lockout Period. Subject to Section 2.8(c), following the Lockout Period,
the Borrower shall have the right, at any time and from time to time, to prepay the Loans. The Borrower shall give the Administrative
Agent written notice no later than 1:00 p.m. (Eastern Time) not less than three (3) Business Days prior to any such prepayment.
In each case, such notice shall specify the date on which such prepayment is to be made (which shall be a Business Day), and the
amount of such prepayment. Each such prepayment shall be in an aggregate minimum amount of $500,000 and shall include the Yield
Maintenance Premium, if applicable, as well as interest accrued on the principal amount prepaid to, but not including, the date
of payment in accordance with the terms hereof (or, in each case, such lesser amount constituting the amount of all Loans then
outstanding).

 

(b)          Within
five (5) Business Days after the occurrence of a Borrowing Base Deficiency, the Borrower shall prepay the outstanding principal
amount of the Loans in an amount equal to the sum of (x) the aggregate amount necessary to eliminate such Borrowing Base Deficiency
plus (y) the Yield Maintenance Premium applicable to the principal amount of the Loan prepaid on such prepayment date, if
any; provided, however, that, no Yield Maintenance Premium shall be due and payable for an initial $4,000,000 of
principal prepaid by the Borrower (calculated in the aggregate) in connection with cures of the Borrowing Base Deficiency.

 

(c)          Voluntary
prepayments of Loans shall be applied first, to reduce any outstanding Lender Group Expenses and, second, in such
order as the Borrower may direct. The Borrower may prepay the Loans subject to the payment of any accrued interest plus the
Yield Maintenance Premium applicable to such prepayment.

 

(d)          Notwithstanding
anything else contained herein, no Yield Maintenance Premium shall be due on the voluntary prepayment of any Lender’s Loan
if, at the time of such prepayment (or on the next Interest Payment Date), the Borrower is or would be required to pay a gross
up indemnity with respect to any Taxes pursuant to Section 10.11 or compensate such Lender for any increased costs pursuant
to Section 2.11. Other than as set forth in the immediately preceding sentence and Section 2.8(b) above, Yield Maintenance
Premium shall be due on any prepayment of any Loan prepaid prior to the Yield Maintenance Date.

 

    	 	- 43 -	 

     

    

 

(e)          If
a Change of Manager Event occurs, the Borrower will, at the Lenders’ option (as provided by Lenders in writing to Borrower
and Agents), prepay the Loans, plus accrued interest plus the Yield Maintenance Premium applicable to the principal
amount of the Loan prepaid on such prepayment date, if any.

 

(f)          If
a Change of Control Event occurs, the Borrower will, at the Lenders’ option (as provided by Lenders in writing to Borrower
and Agents), prepay the Loans plus accrued interest plus the Yield Maintenance Premium applicable to the principal
amount of the Loan prepaid on such prepayment date, if any.

 

2.9          Fees.

 

(a)          Agent
Fees. The Borrower agrees to pay to the Agents for their own benefit the fees in the amount and at the times set forth in the
Agent Fee Letter. Such Fees shall be fully earned when paid and shall be non-refundable for any reason whatsoever.

 

(b)          Closing
Date Fees. On the Closing Date, the Borrower agrees to pay to Initial Lender and the Lender Assignees the Upfront Fees set
forth in the Fee Side Letter.

 

2.10        Maintenance
of Loan Account; Statements of Obligations. The Administrative Agent shall maintain
an account on its books in the name of the Borrower (the “Loan Account”) on which the Borrower will be charged
with all Loans made by the Lenders (or the Administrative Agent on behalf thereof) to the Borrower or for the Borrower’s
account and all interest, fees, and expenses (in each case, as and when payable hereunder or under the other Loan Documents).
The Administrative Agent shall render statements regarding the Loan Account to the Borrower, including principal, interest, fees,
and including an itemization of all expenses owing, and, subject to the entries in the Register, which shall be controlling absent
manifest error, such statements shall be conclusively presumed to be correct and accurate (absent manifest error) and constitute
an account stated between the Borrower and the Administrative Agent unless, within ninety (90) days after receipt thereof by the
Borrower, the Borrower shall deliver to the Administrative Agent written objection thereto describing the error or errors contained
in any such statements.

 

    	 	- 44 -	 

     

    

 

2.11        Increased
Costs.

 

(a)          If
any change in, or the introduction, adoption, effectiveness, interpretation or reinterpretation or phase-in, in each case after
the date hereof, of any law or regulation, directive, guideline, decision or request (whether or not having the force of law) of
any court, central bank, regulator or other Governmental Authority (a “Regulatory Change”) affects the amount
of capital required to be maintained by any Lender and such Lender determines (in its good faith discretion) that the rate of return
on its capital as a consequence of the Loans or other advances of funds made by such Lender pursuant to this Agreement or any of
the Loan Documents relating to fundings or commitments under this Agreement is reduced to a level below that which such Lender
would have achieved but for the occurrence of any such circumstance, then, in any such case within thirty (30) days after written
notice (which may be by email) from time to time by such Lender to the Borrower, the Borrower shall pay to such Lender compensation
sufficient to compensate such Lender for such reduction in rate of return; provided, that such Lender shall provide the
Borrower with such notice within a reasonable period of time following such Lender’s discovery of such increased costs or
reductions. A statement of such Lender as to any such additional amount or amounts (including calculations thereof in reasonable
detail), in the absence of manifest error, shall be conclusive and binding on the Borrower and such Lender. Notwithstanding the
forgoing, (a) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder
or issued in connection therewith, and (b) 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
Governmental Authorities, in each case pursuant to Basel III, shall, in the case of clause (a) and clause (b), be
deemed to be introduced, adopted, implemented and/or effective after the date hereof (regardless of the date enacted, adopted,
issued, implemented and/or effective). Notwithstanding anything to the contrary in this Section 2.11(a), the Borrower shall
not be required to compensate any Lender pursuant to this Section 2.11(a) for any amounts incurred more than nine months
prior to the date that such Lender notifies the Borrower of such Lender’s intention to claim compensation therefor; provided
that, if the circumstances giving rise to such claim have a retroactive effect, then such nine month period shall be extended to
include the period of such retroactive effect.

 

(b)          If
any Change in Law shall:

 

(i) 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;

 

(ii) subject any Recipient
to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded
Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its
deposits, reserves, other liabilities or capital attributable thereto; or

 

(iii) impose on any Lender
any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans 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, 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 other Recipient hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or other Recipient,
the Borrower will pay to such Lender or other Recipient, as the case may be, such additional amount or amounts as will compensate
such Lender or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.

 

2.12        [Reserved].

 

2.13        Funding
Sources. Nothing herein shall be deemed to obligate the Lenders (or the Agents
on behalf thereof) to obtain the funds to make any Loan in any particular place or manner and nothing herein shall be deemed to
constitute a representation by the Agents or any Lender that it has obtained or will obtain such funds in any particular place
or manner.

 

    	 	- 45 -	 

     

    

 

2.14        Place
of Loans. All Loans made hereunder shall be disbursed by credit to the Designated
Account or as may otherwise be agreed to between Borrower and the Agents.

 

2.15        Incremental
Term Loans.

 

(a)          Incremental
Term Commitments. The Borrower may at any time or from time to time after the Closing Date, by written notice to the Agents
(whereupon the Administrative Agent shall promptly deliver a copy to each of the Lenders) (an “Incremental Term Loan Request”),
request the establishment of one or more new commitments which shall be in the same Credit Facility as any outstanding Initial
Term Loans (a “Term Loan Increase” and, collectively with any Term Loan Increase, the “Incremental
Term Commitments”) in an aggregate principal amount not to exceed, $40,000,000.

 

(b)          Incremental
Term Loan Request. Each Incremental Term Loan Request from the Borrower pursuant to this Section 2.15 shall set forth
the requested amount and proposed terms of the relevant Incremental Term Loans. Incremental Term Loans may be made by any existing
Lender (but no existing Lender will have an obligation to make any Incremental Term Commitment) or by any other bank or other financial
institution or (any such other bank or other financial institution being called an “Additional Lender”) (each
such existing Lender or Additional Lender providing such, an “Incremental Lender”); provided that (i)
Borrower shall only be permitted to request all or a portion (as applicable) of the Term Loan Increase from Additional Lenders
if the Borrower has offered each of the existing Lenders an opportunity to provide such Term Loan Increase and the existing Lenders
have declined to provide all or a portion of the Term Loan Increase (or have not responded in writing to the Borrower within ten
(10) Business Days of any such offer) and (ii) for so long as any of the Required Lenders are managed or advised by J.P. Morgan
Investment Management Inc., the Additional Lender must be an entity advised or managed by J.P. Morgan Investment Management Inc.
or otherwise approved by J.P. Morgan Investment Management Inc. (such approval not to be unreasonably withheld, delayed or conditioned);
provided, further, that each Additional Lender, prior to becoming an Incremental Lender hereunder, shall have provided
the Agents with a duly executed IRS From W-9, or such other applicable IRS Form, a fully completed Administrative Agent Questionnaire,
and all “know your customer” documentation requested by the Agents.

 

(c)          Incremental
Term Loans. On any Incremental Facility Closing Date on which any Incremental Term Commitments are effected, subject to the
satisfaction of the terms and conditions in this Section 2.15, (i) each Incremental Lender shall make a loan to the Borrower
(an “Incremental Term Loan”) in an amount equal to its Incremental Term Commitment and (ii) each Incremental
Lender shall become a Lender hereunder with respect to the Incremental Term Commitment and the Incremental Term Loans made pursuant
thereto.

 

    	 	- 46 -	 

     

    

 

(d)          Effectiveness
of Incremental Amendment. The effectiveness of any Incremental Amendment, and the Incremental Term Commitments thereunder,
shall be subject to the satisfaction on the date thereof (the “Incremental Facility Closing Date”) of each of
the following conditions:

 

(i)          no
Default or Event of Default has occurred and is continuing or would result from the Incremental Term Loan; provided that,
solely with respect to any Incremental Term Loans incurred in connection with an acquisition that is permitted under this Agreement,
no Default or Event of Default shall exist at the time the definitive documentation for such acquisition is executed;

 

(ii)         after
giving effect to such Incremental Term Commitments, the conditions of Section 3.2(a) shall be satisfied (it being understood
that all references to “such date” or similar language in such Section 3.2(a) shall be deemed to refer to the
effective date of such Incremental Amendment); provided that, if the proceeds of any Incremental Term Commitments are being
used to finance an acquisition permitted hereunder, (x) the reference in Section 3.2(a) to the accuracy of the representations
and warranties shall refer to the accuracy of the representations and warranties that would constitute “specified representations”
and the representations and warranties in the relevant acquisition agreement, the breach of which would permit the buyer to terminate
its obligations thereunder or decline to consummate such acquisition and (y) the reference to “Material Adverse Effect”
in the “specified representations” shall be understood for this purpose to refer to “Material Adverse Effect”
or similar definition as defined in the main transaction agreement governing such acquisition permitted hereunder;

 

(iii)        after
giving effect to such Incremental Term Commitments, the Borrower is in compliance with the financial covenants set forth in Section
6.12; provided that, solely with respect to any Incremental Term Loans incurred in connection with an acquisition that
is permitted under this Agreement, compliance with the financial covenants set forth in Section 6.12 shall exist at the
time the definitive documentation for such acquisition is executed; and

 

(iv)        to
the extent reasonably requested by the Agents, the Agents shall have received (A) customary legal opinions addressed to the Agents
and the Lenders, board resolutions and officers’ certificates consistent with those delivered on the Closing Date other than
changes to such legal opinion resulting from a change in law, change in fact or change to counsel’s form of opinion reasonably
satisfactory to the Agents and (B) reaffirmation agreements and/or such amendments to the Security Agreement, as may be reasonably
requested by the Agents in order to ensure that the enforceability of the Security Agreement and the perfection and priority of
the Liens thereunder are preserved and maintained.

 

    	 	- 47 -	 

     

    

 

(e)          Required
Terms. The terms, provisions and documentation of the Incremental Term Loans and Incremental Term Commitments shall be as agreed
between the Borrower and the applicable Incremental Lenders providing such Incremental Term Commitments, and except (x) to the
extent otherwise permitted under this Section 2.15, (y) to the extent more restrictive on the Borrower or the Guarantors
(when taken as a whole) in any material respect than those with respect to the Initial Term Loans existing on the Incremental Facility
Closing Date (but excluding any terms or conditions applicable after the Maturity Date) or (z) to the extent relating only to provisions
of a mechanical or administrative nature, shall be reasonably satisfactory to the Agents. In any event:

 

(i)          the
Incremental Term Loans:

 

(A)         shall
rank pari passu in right of payment and in respect of the Collateral with the Initial Term Loans;

 

(B)         shall
not mature earlier than the Maturity Date of any Initial Term Loans outstanding at the time of incurrence of such Incremental Term
Loans;

 

(C)         shall
have a Weighted Average Life to Maturity no shorter than the remaining Weighted Average Life to Maturity of any Initial Term Loans
outstanding at the time of incurrence of such Incremental Term Loans;

 

(D)         subject
to Section 2.15(f) below, shall have an applicable rate and amortization determined by the Borrower and the applicable Incremental
Lenders; and

 

(E)         may
participate on a pro rata basis or less than pro rata basis (but not on a greater than pro rata basis) in any voluntary or mandatory
prepayments of Initial Term Loans hereunder, as specified in the applicable Incremental Amendment; and

 

(ii)         the
proceeds, if any of the Incremental Term Loans, will be used for general corporate purposes of the Borrower and its Subsidiaries
including, without limitation, for capital expenditures, permitted acquisitions and other permitted investments, restricted payments,
refinancing of indebtedness and any other transaction not prohibited by this Agreement.

 

(f)          Incremental
Amendment.

 

(i)          Incremental
Term Commitments shall become Commitments under this Agreement pursuant to an amendment (an “Incremental Amendment”)
to this Agreement and, as appropriate, amendments to the other Loan Documents, executed by the Borrower, each Incremental Lender
providing such Commitments and the Agents, as applicable. The Incremental Amendment may, without the consent of any other Loan
Party or, Lender, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in
the reasonable opinion of the Agents and the Borrower, to effect the provisions of this Section 2.15.

 

(ii)         The
Lenders hereby irrevocably authorize the Agents to enter into amendments to this Agreement and the other Loan Documents with the
Loan Parties as may be necessary in order to establish new Loans or commitments made or established pursuant to this Section
2.15 and such technical amendments as may be necessary or appropriate in the reasonable opinion of the Agents and the Borrower
in connection with the establishment of such new Loans, in each case on terms consistent with this Section 2.15, including
any amendments that are not adverse to the interests of any Lender that are made to effectuate changes necessary to enable any
Incremental Term Loans to be fungible for United States federal income tax purposes with the Initial Term Loans, which shall include
any amendments that do not reduce the ratable amortization received by each Lender thereunder.

 

(g)          This
Section 2.15 shall supersede any provisions in Section 3.3, Section 9.1 or Section 11.2 to the contrary.

 

    	 	- 48 -	 

     

    

 

2.16        Mitigation
of Obligations. If any Lender requests compensation under Section 2.11,
or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to Section 10.11, then such Lender shall use reasonable efforts to designate a different one of its lending
offices or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if (i) in the reasonable
judgment of such Lender, such designation or assignment would eliminate or reduce amounts payable pursuant to Sections 2.11
or 10.11, as applicable, and (ii) in the reasonable judgment of such Lender, such designation or assignment would not
subject such Lender to any material unreimbursed cost or expense and would not otherwise be materially disadvantageous to such
Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment.

 

2.17        Pro
Rata Treatment.

 

(a)          Each
Loan shall be allocated among the Lenders in accordance with their respective Pro Rata Share.

 

(b)          Except
for prepayments contemplated by Section 2.8(d)(y), each repayment by the Borrower in respect of principal or interest on
the Initial Term Loans and each payment in respect of fees or expenses payable hereunder shall be applied to the amounts of such
obligations owing to the Lenders entitled thereto in accordance with their respective Pro Rata Share. Each voluntary prepayment
by the Borrower of Initial Term Loans shall be applied to the amounts of such obligations owing to the Lenders in accordance with
their respective Pro Rata Share (unless such payment is made in accordance with Section 9.1(f), in which case it shall be
made in accordance with such Section).

 

Article
III

CONDITIONS TO LOANS

 

3.1          Conditions
Precedent to the Initial Term Loan. The obligation of each Lender to make its initial
Loan hereunder is, in addition to the conditions set forth in Section 3.2 hereof, subject to the fulfillment, to the reasonable
satisfaction of Agents and each Lender and its counsel, of each of the following conditions on or before the Closing Date:

 

(a)          The
Lenders and the Agents shall have received all documentation and other information required by regulatory authorities under applicable
“know your customer” and anti-money laundering rules and regulations, including the PATRIOT Act;

 

(b)          The
Agents shall have received the results of a recent lien, tax lien, judgment and litigation search in each of the jurisdictions
or offices in which UCC financing statement or other filings or recordations should be made to evidence or perfect security interests
in all assets of the Loan Parties (or would have been made at any time during the five years immediately preceding the Closing
Date to evidence or perfect Liens on any assets of the Loan Parties), and such search shall reveal no Liens or judgments on any
of the assets of the Loan Parties, except for Permitted Liens or Liens and judgments to be terminated on the Closing Date pursuant
to documentation satisfactory to the Agents;

 

    	 	- 49 -	 

     

    

 

(c)          The
Agents shall have received this Agreement, any Notes, the Negative Pledge Agreement, the Security Agreement, the Agent Fee Letter
and each other Loan Document, each duly executed and delivered by each party thereto, each in form and substance reasonably satisfactory
to the Agents;

 

(d)          Each
Lender requesting a Note shall have received originals of each Note (with a copy to the Administrative Agent), duly executed by
the Borrower;

 

(e)          The
Agents shall have received the written opinions, in the form attached hereto as Exhibit 3.1(e), and dated the date of the
Closing Date, of counsel to the Loan Parties and the grantors party to the Negative Pledge Agreement, with respect to this Agreement
and the other Loan Documents, which written opinions shall be in form and substance reasonably satisfactory to the Agents and their
counsel;

 

(f)          The
Agents shall have received a certificate of status with respect to each Loan Party dated within thirty (30) days of the date of
this Agreement, such certificate to be issued by the Secretary of State of the jurisdiction of organization of each Loan Party,
which certificate shall indicate that such Loan Party is in good standing in such State;

 

(g)          The
Agents shall have received a copy of each Loan Party’s Governing Documents, certified by a Responsible Officer with respect
to such Loan Party;

 

(h)          The
Agents shall have received a copy of the resolutions or the unanimous written consent with respect to each Loan Party, certified
as of the Closing Date by a Responsible Officer of such Loan Party, authorizing (A) the transactions contemplated by the Loan Documents
to which such Loan Party is or will be a party, and (B) the execution, delivery and performance by such Loan Party of each Loan
Document to which such Loan Party is or will be a party and the execution and delivery of the other documents to be delivered by
such Loan Party in connection herewith and therewith;

 

(i)          The
Agents shall have received a signature and incumbency certificate of the Responsible Officer with respect to each Loan Party executing
this Agreement, any Notes, the Negative Pledge Agreement, the Security Agreement and the other Loan Documents not previously delivered
to each Agent to which each Loan Party is a party, certified by a Responsible Officer with respect to each Loan Party;

 

(j)          The
Collateral Agent shall have received originals of any Pledged Securities that are certificated;

 

(k)          [reserved];

 

(l)          The
Agents shall have received copies of all consents (if any) set forth on Schedule 4.3;

 

(m)          Except
as set forth in any publicly available information (including, without limitation, Exchange Act filings, financial statements,
earnings calls, presentations, press releases and other similar disclosures), which is publicly available on or before December
31, 2018, since December 31, 2017, no Material Adverse Effect has occurred;

 

    	 	- 50 -	 

     

    

 

(n)          the
Borrower shall have paid all fees incurred in connection with the transactions evidenced by this Agreement on the Closing Date
and all Lender Group Expenses (which in the case of legal fees, shall be subject to the Legal Expenses Cap) incurred in connection
with the transactions evidenced by this Agreement for which the Borrower received an invoice at least three (3) Business Days prior
to the Closing Date;

 

(o)          the
Administrative Agent shall have received a Request for Borrowing one (1) Business Day prior to the Closing Date, including a general
statement as to the proposed use of proceeds of the draw; and

 

(p)          all
other documents and legal matters in connection with the transactions contemplated by this Agreement shall have been delivered
or executed or recorded and shall be in form and substance reasonably satisfactory to Agents and their counsel.

 

3.2          Conditions
Precedent to All Loans. The obligation of the Lenders to make any Loan hereunder
(or to extend any other credit hereunder) is subject to the fulfillment, at or prior to the time of the making of such Loan, of
each of the following conditions:

 

(a)          The
representations and warranties of the Borrower contained in this Agreement and the other Loan Documents shall be true and correct
on the Closing Date or, with respect to any Loans made after the Closing Date, in all material respects (except that such materiality
qualifier shall not be applicable to any representation or warranty to the extent that such representation or warranty is qualified
or modified by materiality) on and as of the date of such Loan as though made on and as of such date (except to the extent that
such representations and warranties solely relate to an earlier date) (subject in the case of Incremental Term Loans to Section
2.15(d)(ii));

 

(b)          No
Event of Default or Default shall have occurred and be continuing on the date of such Loan, nor shall either result from the making
of such Loan (subject in the case of Incremental Term Loans to Section 2.15(d)(i));

 

(c)          The
Borrower is in compliance with the covenants set forth in Section 6.12 both before and after giving effect to such Loan
(subject in the case of Incremental Term Loans to Section 2.15(d)(iii));

 

(d)          The
Borrower shall have delivered to the Administrative Agent a Request for Borrowing pursuant to the terms of Section 2.1(b),
Section 2.5 and Section 2.15 hereof, as applicable;

 

(e)          The
Borrower shall have delivered a Borrowing Base Certificate to the Agents at least three (3) Business Days prior to the date of
any such Loan, including a general statement as to the proposed use of proceeds of the draw; and

 

(f)          The
aggregate principal amount of all Loans under this Agreement, irrespective of whether such Loans have been repaid or prepaid, shall
not exceed $40,250,000 (subject to Section 2.15).

 

    	 	- 51 -	 

     

    

 

3.3          Maturity
Date.

 

(a)          This
Agreement shall continue in full force and effect for a term ending on the earlier of (the “Maturity Date”):
(a) the six-year anniversary of the Closing Date and (b) such earlier date on which the Loans shall become due and payable in accordance
with the terms of this Agreement and the other Loan Documents.

 

Article
IV

REPRESENTATIONS AND WARRANTIES OF THE BORROWER

 

Each Loan Party makes
the following representations and warranties as of the date hereof, the Closing Date and on and as of the date of each Loan as
though made on and as of the date of the making of such Loan (except to the extent that such representations and warranties relate
solely to an earlier date) and such representations and warranties shall survive the execution and delivery of this Agreement and
the making of the Loans:

 

4.1          Due
Organization. Each of the Borrower and its Subsidiaries is a duly organized and
validly existing limited liability company in good standing under the laws of the jurisdiction of its incorporation or organization
and is duly qualified to conduct business in all other jurisdictions where its failure to do so could reasonably be expected to
have a Material Adverse Effect.

 

4.2          Securities
and Subsidiaries. Schedule 4.2 sets forth (i) each Loan Party and its jurisdiction
of incorporation or organization as of the Closing Date and (ii) the number of each class of its Securities authorized, and the
number outstanding, on the Closing Date and the number of Securities covered by all outstanding options, warrants, rights of conversion
or purchase and similar rights on the Closing Date. All Securities of each Loan Party are duly and validly issued and are fully
paid and non-assessable, and, other than the Securities of the Borrower, are owned by the Borrower, directly or indirectly. Each
Loan Party is the record and beneficial owner of, and has good and marketable title to, the Securities pledged by (or purported
to be pledged by) it under the Security Agreement, to the knowledge of each Loan Party, free of any and all Permitted Collateral
Liens (other than in respect to Liens arising pursuant to clause (d) of the definition thereof), and, as of the Closing
Date, there are no outstanding warrants, options or other rights (including derivatives) to purchase, or shareholder, voting trust
or similar agreements outstanding with respect to, or property that is convertible into, or that requires the issuance or sale
of, any such Securities (or any economic or voting interests therein).

 

4.3          Requisite
Power and Authorization. Each Loan Party has all requisite power and authority
to execute and deliver this Agreement and the other Loan Documents to which it is a party, and, if applicable, to borrow the sums
provided for in this Agreement. Each of the Borrower and its Subsidiaries has all governmental licenses, authorizations, consents,
and approvals necessary to own and operate its Assets and to carry on its businesses as now conducted and as proposed to be conducted,
other than licenses, authorizations, consents, and approvals that are not currently required or the failure to obtain which could
not reasonably be expected to be materially adverse to any Lender. The execution, delivery, and performance of this Agreement
and the other Loan Documents have been duly authorized by each Loan Party and all necessary limited liability company or corporate
action in respect thereof has been taken, and, other than as set forth on Schedule 4.3, the execution, delivery, and performance
thereof do not require any other material consent or approval of any other Person that has not been obtained.

 

    	 	- 52 -	 

     

    

 

4.4          Binding
Agreements. This Agreement and the other Loan Documents to which any Loan Party
is a party, when executed and delivered by such Loan Party, will constitute the legal, valid, and binding obligations of such
Loan Party, enforceable against such Loan Party in accordance with their terms except as the enforceability hereof or thereof
may be affected by: (a) bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting the enforcement of
creditors’ rights generally, and (b) equitable principles of general applicability (whether considered in a proceeding in
equity or law).

 

4.5          Other
Agreements. The execution, delivery, and performance by each Loan Party of this
Agreement and the other Loan Documents to which any Loan Party is a party, do not and will not: (a) violate (i) in any material
respect any provision of any federal (including the Exchange Act), state or local law, rule, or regulation (including Regulations
T, U, and X of the Federal Reserve Board) binding on any Loan Party, (ii) in any material respect any order of any Governmental
Authority, court, arbitration board or tribunal binding on any Loan Party or (iii) the Governing Documents of any Loan Party,
or (b) contravene any provisions of, result in a breach of, constitute (with the giving of notice or the lapse of time) a default
under, or result in the creation of any Lien (other than Liens granted by the Loan Parties to the Collateral Agent, for the benefit
of the Secured Parties, to secure the Obligations under this Agreement) upon any of the Assets of any Loan Party pursuant to any
Material Agreement, or (c) require termination of any Material Agreement, or (d) constitute a tortious interference with any material
Contractual Obligation of the Borrower or its Subsidiaries.

 

4.6          Litigation:
Adverse Facts and Compliance with Laws.

 

(a)          There
is no action, suit, proceeding, or arbitration (irrespective of whether purportedly on behalf of any Loan Party) at law or in equity,
or before or by any federal, state, municipal, or other governmental department, commission, board, bureau, agency, or instrumentality,
domestic or foreign, pending or threatened in writing against or affecting the Borrower and any of its Subsidiaries, that could
reasonably be expected to have a Material Adverse Effect, or could reasonably be expected to materially and adversely affect any
Loan Party’s ability to perform its obligations under the Loan Documents to which it is a party (including Borrower’s
or any Guarantor’s ability to repay any or all of the Loans when due);

 

(b)          Neither
the Borrower nor any of its Subsidiaries is subject to or in default with respect to any order, final judgment, writ, injunction,
decree, rule, or regulation of any Governmental Authority in a manner that could reasonably be expected to have a Material Adverse
Effect or could reasonably be expected to materially and adversely affect any Loan Party’s ability to perform its obligations
under the Loan Documents to which it is a party (including Borrower’s or any Guarantor’s ability to repay any or all
of the Loans when due);

 

    	 	- 53 -	 

     

    

 

(c)          Neither
the Borrower nor any of its Subsidiaries (i) has failed to comply with Environmental Laws or to obtain, maintain and comply with
any permit, license or other approval required to be obtained by the Borrower or any of its Subsidiaries under any Environmental
Law, (ii) is subject to any material liability under Environmental Law, (iii) has received written notice of any claim alleging
that it is in violation of Environmental Law or has liability under Environmental Law or (iv) has actual knowledge of existing
facts or circumstances that would reasonably be expected to form the basis of a claim that it has liability under Environmental
Law, except, in the case of each of items (i) through (iv) above, would not reasonably be expected to have a Material Adverse Effect;

 

(d)          Each
Loan Party and all Affiliates of all of the foregoing are in compliance with the Foreign Corrupt Practices Act of 1977 and any
applicable foreign counterpart thereto. No Loan Party or Affiliate of any of the foregoing has made, offered, promised or authorized
a payment of money or anything else of value (i) in order to assist in obtaining or retaining business for or with, or directing
business to, any foreign official, foreign political party, party official or candidate for foreign political office, (ii) to any
foreign official, foreign political party, party official or candidate for foreign political office, or (iii) with the intent to
induce the recipient to misuse his or her official position to direct business wrongfully to any Loan Party or any Affiliate of
any of the foregoing, or any other Person, in violation of the Foreign Corrupt Practices Act; and

 

(e)          (i)
There is no action, suit, proceeding or investigation pending or, to the best of the Borrower’s knowledge, threatened in
writing against or affecting the Borrower or any of its Subsidiaries that questions the validity or the enforceability of this
Agreement or other the Loan Documents, and (ii) there is no action, suit, or proceeding pending against or affecting any Loan Party
pursuant to which, on the date of the making of any Loan hereunder, there is not in effect a binding injunction that could reasonably
be expected to materially and adversely affect the validity or enforceability of this Agreement or the other Loan Documents.

 

4.7          Government
Consents. Other than such as may have previously been obtained, filed, or given,
as applicable, no consent, license, permit, approval, or authorization of, exemption by, notice to, report to or registration,
filing, or declaration with, any Governmental Authority is required in connection with the execution, delivery, and performance
by the Loan Parties of the Loan Documents to which they are a party, in each case, except as could not reasonably be expected
to have a Material Adverse Effect.

 

4.8          Title
to Assets; Liens. Except for Permitted Liens, all of the Assets held by the Borrower
and its Subsidiaries are free from all Liens of any nature whatsoever. Except for Permitted Liens, the Borrower and its Subsidiaries
have good and sufficient title to all of the Assets held by the Borrower and its Subsidiaries.

 

4.9          ERISA.
Except as could not reasonably expected to have a Material Adverse Effect, each Plan is in compliance with the applicable provisions
of ERISA, the Code and other Federal and state laws. Except as could not reasonably be expected to have a Material Adverse Effect,
(i) no ERISA Event has occurred or is reasonably expected to occur; (ii) no Loan Party has incurred, or reasonably expects to
incur, any liability (including liability as an ERISA Affiliate of another Person) under Title IV of ERISA with respect to any
Single Employer Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iii) no Loan Party has incurred
or reasonably expects to incur any liability (including liability as an ERISA Affiliate of another Person), and no event has occurred
which, with the giving of notice under Section 4219 of ERISA, would result in such liability, under Section 4201 or 4243
of ERISA with respect to a Multiemployer Plan; and (iv) neither any Loan Party nor any of its ERISA Affiliate has engaged in a
transaction that could be subject to Section 4069 or 4212(c) of ERISA.

 

    	 	- 54 -	 

     

    

 

4.10        Payment
of Taxes. All material tax returns and reports of the Loan Parties (and all parent
entities of such Loan Parties with which any Loan Party is or has been consolidated or combined) required to be filed by it have
been timely filed (inclusive of any permitted extensions), and all material Taxes, governmental assessments, fees, and amounts
required to be withheld and paid to a Governmental Authority and all other governmental charges imposed upon the Loan Parties,
and upon their Collateral, income, and franchises, that are due and payable have been paid except for any claims for Taxes that
are being contested, in good faith, by appropriate proceedings promptly instituted and diligently conducted, and with respect
to which an adequate reserve or other appropriate provision, if any, shall have been made in order to be in conformity with GAAP.

 

4.11        Governmental
Regulation.

 

(a)          The
Loan Parties are not, nor immediately after the application by the Borrower of the proceeds of the Loans will they be, required
to be registered as an “investment company” under the Investment Company Act of 1940, as amended.

 

(b)          No
Loan Party holds any interest in any Margin Securities. No part of the proceeds of the loans made to the Borrower will be used
to purchase or carry any Margin Securities or to extend credit to others for the purpose of purchasing or carrying any Margin Securities
or for any purpose that violates the provisions of Regulation T, U or X of the Board of Governors.

 

(c)          No
Loan Party is subject to regulation under any federal, state, or local law, rule, or regulation generally limiting its ability
to incur Debt.

 

4.12        Disclosure.
No written statement, representation or warranty of any Loan Party contained in this Agreement or any other document, certificate,
or written information furnished to any Agent or any Lender with respect to the business, operations, Collateral, or condition
(financial or otherwise) of the Loan Parties in connection with the transactions contemplated by this Agreement (other than projections,
pro forma financial statements and budgets and information of a general economic or industry-wide nature) contains any untrue
statement of a material fact or omits to state a material fact necessary in order to make the statements contained herein or therein,
in light of the circumstances under which they were made, not materially misleading. There is no fact known to any Loan Party
(other than matters of a general economic industry-wide nature) that any Loan Party believes reasonably could be expected to have
a Material Adverse Effect, that has not been disclosed herein or in such other documents, certificates, and statements furnished
to any Agent or any Lender for use in connection with the transactions contemplated hereby.

 

4.13        Debt.
The Borrower and its Subsidiaries do not have any Debt outstanding other than Debt permitted by Section 6.1 hereof.

 

    	 	- 55 -	 

     

    

 

4.14        Existing
Defaults. Neither the Borrower nor any of its Subsidiaries is in default in the
performance, observance or fulfillment of any of the obligations contained in any Contractual Obligation applicable to it, and
no condition exists which, with or without the giving of notice or the lapse of time, would constitute a default under any such
Contractual Obligation, except, in any such case, where the consequences, direct or indirect, of such default or defaults, if
any, could not reasonably be expected to have a Material Adverse Effect. No event of default has occurred under any Securitization
Transaction which remains uncured or unwaived and no circumstance, event or condition has occurred or exists which, with the giving
of notice and/or the expiration of the applicable period would constitute an event of default under the documents relating to
the Securitization Transactions.

 

4.15        No
Material Adverse Effect. No event or development has occurred which could reasonably
be expected to result in a Material Adverse Effect.

 

4.16        Security
Documents. The Security Agreement is effective to create in favor of the Collateral
Agent, for the benefit of the Secured Parties, a legal, valid, binding and enforceable first-priority security interest in the
Collateral described herein and therein and in proceeds and products thereof as set forth herein and therein (subject to Permitted
Collateral Liens). In the case of (i) Pledged Securities represented by certificates, (x) when such certificates are delivered
to the Collateral Agent or (y) when financing statements in appropriate form are filed in the offices specified on Schedule
4.16, and (ii) the other Collateral described in the Security Agreement, when financing statements in appropriate form are
filed in the offices specified on Schedule 4.16 and such other filings as are specified on Schedule 2 to the Security
Agreement have been completed, the Lien created by the Security Agreement shall constitute a fully perfected Lien on, and security
interest in, all right, title and interest of the Loan Parties in such Collateral and the proceeds and products thereof, as security
for the Secured Obligations (as defined in the Security Agreement), in each case, prior and superior in right to any other Person
(subject to Permitted Collateral Liens).

 

4.17        Solvency.
The Borrower is, each Loan Party is, and the other Subsidiaries of the Borrower are taken as a whole, both immediately before
and immediately following the making of each Loan and after giving effect to the application of the proceeds of each Loan, the
pledge of Collateral and the guarantee in favor of the Agents and the Lenders, as applicable, Solvent.

 

4.18        Use
of Proceeds.

 

(a)          The
proceeds of the Loans shall be used (i) to redeem existing preferred equity of the Borrower and its Subsidiaries, (ii) to permit
the Borrower and its Subsidiaries to purchase or originate and hold Borrowing Base Eligible Assets, (iii) for any general other
corporate purposes of the Borrower and its Subsidiaries (including for capital expenditures, permitted acquisitions and other permitted
investments, restricted payments, refinancing of indebtedness and any other transaction not prohibited by the Loan Documents) and
(iv) to pay fees and expenses related to the Transactions.

 

    	 	- 56 -	 

     

    

 

(b)          No
part of the proceeds of the Loans will be used, directly or indirectly, for any payment to any governmental official or employee,
political party, official of a political party, candidate for political office, or anyone else acting in an official capacity,
in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt
Practices Act of 1977, as amended.

 

4.19        Anti-Corruption
and Anti-Money Laundering Laws and Sanctions. Each Loan Party has implemented and
maintains in effect policies and procedures reasonably designed to ensure compliance by each Loan Party, their Subsidiaries and
their respective directors, officers, employees and agents with Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions,
and each Loan Party and its Subsidiaries and their respective directors, officers and employees are, to the knowledge of each
Loan Party, its directors and agents, in compliance with Anti-Corruption Laws, Anti-Money Laundering Laws, and Sanctions in all
material respects. None of (i) the Loan Parties or, to the knowledge of each Loan Party, their Subsidiaries, or to the knowledge
of the Loan Parties or such Subsidiaries, any of their respective directors, officers or employees, or (ii) to the knowledge
of the Loan Parties, any agent of the Loan Parties or any Subsidiary that will act in any capacity in connection with or benefit
from the credit facility established hereby, is a Sanctioned Person. No Loan, use of proceeds from this Agreement or other transaction
contemplated by this Agreement will violate Anti-Corruption Laws, Anti-Money Laundering Laws or Sanctions.

 

4.20        REIT
Status; Loan Party Tax Status. The Borrower has been organized and operated in
a manner that has allowed it to qualify and has qualified as a REIT commencing with its taxable year ending 2012 and its proposed
method of operation will enable it to meet the requirements for qualification and taxed as a REIT under the Code. Hunt Commercial
Mortgage Trust has been organized and operated in a manner that has allowed it to elect to qualify as a REIT commencing with its
taxable year ending 2018 and its proposed method of operation will enable it to meet the requirements for qualification and taxed
as a REIT under the Code.

 

4.21        Ownership.
Each of the grantors under the Security Agreement owns all legal and equitable title to the assets pledged by it to the Lenders.

 

4.22        Borrower
Financial Covenants. As of the Closing Date, all Borrower Financial Covenants are
satisfied.

 

Article
V

AFFIRMATIVE COVENANTS OF THE BORROWER

 

The Borrower covenants
and agrees that until payment, in full, of the Loans, with interest accrued and unpaid thereon, the Borrower will, and will cause
its Subsidiaries to, do each and all of the following:

 

5.1          Accounting
Records and Inspection.

 

(a)          Maintain
adequate financial and accounting books and records in accordance with sound business practices and GAAP consistently applied;
and

 

    	 	- 57 -	 

     

    

 

(b)          permit
any representative of the Agents (and after the occurrence and during the continuance of an Event of Default, any representatives
of each Lender) upon reasonable notice to the Borrower, at any time during usual business hours, to inspect, audit, and examine
the Borrower’s financial and accounting books and records and to make copies and take extracts therefrom, and to discuss
its affairs, financing, and accounts with the Borrower’s or the Guarantors’ officers and independent public accountants
(provided that the Borrower shall have the opportunity to be present at any meeting with its independent public accountants); provided
that unless an Event of Default has occurred and is continuing, no more than one inspection per year may be made at the Borrower’s
expense.

 

5.2          Financial
Statements. Furnish to the Agents:

 

(a)          As
soon as publicly available (including, pursuant to any filing under the Exchange Act or with any national securities exchange),
but in any event within ninety (90) days after the end of each fiscal year of the Borrower (commencing with the fiscal year ended
December 31, 2018), a copy of the consolidated balance sheet of the Borrower as at the end of such fiscal year and the related
consolidated statements of income or operations, changes in stockholders’ equity and cash flows for such fiscal year, all
in reasonable detail and prepared in accordance with GAAP, audited and accompanied by a customary report and opinion of an independent
certified public accounting firm of nationally recognized standing (including without limitation Ernst & Young, PricewaterhouseCoopers
LLP, Deloitte, KPMG, CohnReznick LLP and Grant Thornton) which report and opinion shall be prepared in accordance with generally
accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception or any
qualification or exception as to the scope of such audit (other than a “going concern” qualification resulting solely
from an upcoming maturity date under the Credit Facilities occurring within one year from the time such opinion is delivered);
and

 

(b)          As
soon as publicly available (including, pursuant to any filing under the Exchange Act or with any national securities exchange),
but in any event within forty-five (45) days after the end of each of the first three fiscal quarters of each fiscal year of the
Borrower (commencing with the fiscal quarter ended March 31, 2019), a copy of the unaudited consolidated balance sheet of the Borrower
as at the end of such fiscal quarter and the related unaudited consolidated statements of income or operations, changes in stockholders’
equity and cash flows for such fiscal quarter and the portion of the fiscal year through the end of such fiscal quarter, all in
reasonable detail (subject only to normal year-end audit adjustments).

 

5.3          Certificates;
Other Information. Furnish to the Agents:

 

(a)          concurrently
with the delivery of the financial statements pursuant to Section 5.2(a) and (b), (i) a completed Compliance Certificate
duly executed by a Responsible Office of the Borrower containing all information and calculations necessary (in reasonable detail)
for determining (A) that no Event of Default or any Default has occurred or is continuing, (B) if a Default has occurred, a statement
as to the nature thereof and the action which is proposed to be taken in respect thereto and (C) compliance by the Borrower with
Section 6.12, in each case, as of the last day of the fiscal quarter or fiscal year of the Borrower (including the supporting
calculations related thereto), (ii) a duly completed Borrowing Base Certificate setting forth the Borrowing Base based on the most
recent Borrowing Base Value and (iii) notice of any event giving rise to the occurrence of a VAE;

 

    	 	- 58 -	 

     

    

 

(b)          promptly
(but in any event within five (5) Business Days unless otherwise specified), after a Responsible Officer of the Borrower or any
Guarantor has knowledge thereof, written notice of:

 

(i)          the
occurrence of any Event of Default or any Default;

 

(ii)         any
Material Modification that occurs and, in any such event, the Borrower shall also supply the Agents with copies of any modifications,
waivers or forbearances allowed by the Borrower pursuant thereto within five (5) Business Days following the occurrence thereof;

 

(iii)        the
occurrence of a VAE in respect of any Borrowing Base Eligible Asset within five (5) Business Days following the occurrence thereof;

 

(iv)        [reserved];

 

(v)         a
judgment by any competent court against the Borrower or any of its Subsidiaries for the payment of money in an amount greater than
$3,500,000;

 

(vi)        any
default or event of default as defined in any Contractual Obligation relating to Debt, in each case in an amount not less than
$3,500,000 and irrespective of whether such Debt is accelerated or such default waived;

 

(c)          as
soon as practicable, written notice of any condition or event which has resulted or could reasonably be expected to result in a
Material Adverse Effect.

 

(d)          such
other information as any Agent and any Lender may reasonably request from time to time in connection with any of the Collateral
or other business or financial information of the Borrower and its Subsidiaries; and

 

(e)          If
requested by any Agent from time to time, promptly deliver to the Agents copies of any annual report to be filed in connection
with each Plan.

 

5.4          Existence.
Preserve and maintain its legal existence and all of its material rights, privileges, licenses and franchises and qualify and
remain qualified in good standing (where relevant) as a foreign limited liability company, statutory trust or limited partnership,
as applicable, in each other jurisdiction where the nature of its business requires such qualification and to the extent such
concept exists in such jurisdiction.

 

5.5          Payment
of Taxes and Claims. File all material Tax returns including income Tax returns
required to be filed by or on behalf of the Loan Parties. Pay all (a) material Taxes, governmental assessments, and other governmental
charges imposed on any of the Loan Parties or upon any of the Borrowing Base Eligible Assets or the Collateral or in respect of
any of its businesses, incomes, Collateral, or Borrowing Base Eligible Assets before any penalty or interest accrues thereon,
and (b) all claims in excess of $100,000 in the aggregate (including claims for labor, services, materials, and supplies) for
sums which have become due and payable and which by law have or may become a Lien upon any of the Collateral or Borrowing Base
Eligible Assets, prior to the time when any penalty or fine shall be incurred with respect thereto; provided, however,
that, unless such Taxes, assessments, charges, or claims have become a federal tax Lien on any of the Collateral or the Borrowing
Base Eligible Assets, no such Tax, assessment, charge, or claim need be paid if the same is being diligently contested, in good
faith, by appropriate proceedings promptly instituted and diligently conducted and if an adequate reserve or other appropriate
provision, if any, shall have been made therefor as required in order to be in conformity with GAAP.

 

    	 	- 59 -	 

     

    

 

5.6          Compliance
with Laws and Material Contractual Obligations. (a) Comply in all material respects
with the requirements of all applicable laws, rules, regulations (including Regulations T, U and X of the Federal Reserve Board),
and orders of any Governmental Authority, noncompliance with which could reasonably be expected to have a Material Adverse Effect
and (b) perform in all material respects its obligations under Material Agreements to which it is a party.

 

5.7          Further
Assurances. At any time or from time to time upon the request of the Agents, execute
and deliver such further documents and do such other acts and things as the Agents may reasonably request in order to effect fully
the purposes of this Agreement or the other Loan Documents and to provide for payment of the Loans made hereunder, with interest
thereon, in accordance with the terms of this Agreement.

 

5.8          Payment
of Obligations. Pay, discharge or otherwise satisfy as the same shall become due
and payable in the normal conduct of its business all its material obligations and liabilities including, without limitation,
any such material obligations pursuant to any agreement by which it or any of its properties is bound.

 

5.9          Maintenance
of Insurance. Maintain with financially sound and reputable insurance companies
not Affiliates of the Borrower insurance with respect to its properties and business against loss or damage of the kinds customarily
insured against by Persons engaged in the same or a similar business of such types and in such amounts (after giving effect to
any self-insurance compatible with the following standards) as are customarily carried under similar circumstances by such other
Persons.

 

5.10        Maintenance
of Property and Licenses. In addition to the requirements of the Security Agreement,
(a) protect and preserve all property necessary in and material to their business then being conducted, including copyrights,
patents, real estate, trade names, service marks and trademarks, (b) maintain in good working order and condition, ordinary wear
and tear and casualty excepted, all buildings, equipment and other tangible real and personal property necessary and material
to its business as then being conducted and (c) from time to time make or cause to be made all repairs, renewals and replacements
thereof and additions to such property necessary and material for the conduct of its business as then being conducted, so that
the business carried on in connection therewith may be conducted in a commercially reasonable manner.

 

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5.11        Covenant
to Guarantee Obligations and Give Security. Execute any and all further documents,
financing statements, agreements and instruments, and take all further action (including filing Uniform Commercial Code and other
financing statements) that may be required under applicable requirements of law, or that the Required Lenders or the Agents may
reasonably request, in order to effectuate the Transactions contemplated by the Loan Documents and in order to grant, preserve,
protect and perfect the validity and priority of the security interests created or intended to be created by the Loan Documents.
Notwithstanding anything to the contrary set forth herein, in no event shall this Section 5.11 require the granting of
any Lien on any Excluded Assets.

 

5.12        ERISA.
(a) Make, or cause to be made, timely payment of contributions required to meet the requirements of the Pension Funding Rules
with respect to each Single Employer Plan; (b) notify the Agents as soon as practicable (but in any event within five (5) Business
Days) of any ERISA Event; and (c) furnish to the Agents, promptly upon Agent’s request therefor, such additional information
concerning any Single Employer Plan as may be reasonably requested by the Agents from time to time.

 

5.13        Post-Closing
Items. Within the time periods specified on Schedule 5.13 (or such later
date to which the Agents consent in writing), comply with the provisions set forth in Schedule 5.13.

 

5.14        REIT
Status. Each of the Borrower and Hunt Commercial Mortgage Trust shall maintain
its REIT status; none of the other Loan Parties (other than a taxable REIT subsidiary formed for the purpose of owning
non-qualifying assets) shall be treated as a corporation separate from the Borrower for U.S. federal income tax purposes.

 

5.15        Cash
Management. With respect to any asset underlying a Borrowing Base Subsidiary, the
Borrower shall cause any distributions or payments on such asset which are distributable or payable to the Borrowing Base Subsidiary
(either directly or indirectly and after the payment of any related Warehouse Debt or Securitization Indebtedness due and payable
on such date, if applicable) to be deposited promptly (and no later than two (2) Business Days following receipt thereof), into
an account which is under the control of the Collateral Agent on behalf of the Lenders and subject to the Borrower DACA.

 

Article
VI

NEGATIVE COVENANTS OF THE BORROWER

 

The Borrower covenants
and agrees that, until payment, in full, of the Loans, with interest accrued and unpaid thereon, the Borrower will not and will
not permit any of its Subsidiaries to do any of the following:

 

6.1          Debt.
Create, incur, assume, permit, guarantee, or otherwise become or remain, directly or indirectly, liable with respect to any Debt,
except:

 

(a)          Debt
evidenced by this Agreement and the other Loan Documents;

 

    	 	- 61 -	 

     

    

 

(b)          Debt
or amounts available under Debt facilities (whether or not drawn) existing on the Closing Date and listed on Schedule 6.1
and any draws, refinancings, renewals or extensions thereof so long as: (i) such draws, refinancings, renewals, replacements or
extensions do not result in an increase in the aggregate maximum principal amount of the Debt permitted under such Debt facilities
so drawn, refinanced, renewed, or extended (other than for accrued interest and premiums and fees), (ii) such draws, refinancings,
renewals, replacements, or extensions do not result in a shortening of the average weighted maturity of the Debt so drawn, refinanced,
renewed, replaced, or extended, nor are they on terms or conditions that, taken as a whole, are materially more burdensome or restrictive
to the Borrower or any of its Subsidiaries, and (iii) the Debt that is drawn, refinanced, renewed, replaced, or extended is not
recourse to any Person that is liable on account of the Loans other than those Persons which were obligated with respect to the
Debt that was drawn, refinanced, renewed, replaced, or extended;

 

(c)          Warehousing
Debt;

 

(d)          Securitization
Indebtedness;

 

(e)          Debt
in respect of Capitalized Lease Obligations and Purchase Money Obligations financing an acquisition, construction, repair, replacement,
lease or improvement of a fixed or capital asset incurred by the Borrower or any of its Subsidiaries within two hundred seventy
(270) days after the acquisition, construction, repair, replacement, lease or improvement of the applicable asset in an aggregate
principal amount not to exceed $5,000,000;

 

(f)          Debt
in respect of netting services, overdraft protections and otherwise in connection with deposit accounts incurred in the ordinary
course of business;

 

(g)          guaranties
in the ordinary course of business of the obligations of suppliers, customers, franchisees and licensees of the Borrower and its
Subsidiaries;

 

(h)          Debt
of the Borrower or any of its Subsidiaries in respect of letters of credit, bank guarantees, bankers’ acceptances, warehouse
receipts or similar instruments created or issued in the ordinary course of business in connection with workers’ compensation
claims, health, disability or other employee benefits or property, casualty or liability insurance or self-insurance or other Debt
with respect to reimbursement-type obligations regarding workers’ compensation claims;

 

(i)          Debt
owing to any insurance company in connection with the financing of any insurance premiums permitted by such insurance company in
the ordinary course of business in an amount not exceed $500,000 at any time outstanding;

 

(j)          (i)
Debt representing deferred compensation or stock-based compensation incurred in the ordinary course of business and (ii) Debt issued
by the Borrower or any Subsidiary to current or former officers, directors, employees, managers and consultants, and their respective
personnel, estates, spouses or former spouses, of any the Borrower or any Subsidiary, in lieu of or combined with cash payments,
to finance the purchase or redemption by any such Person of Securities of the Borrower or any Subsidiary, in each case, to the
extent such purchase or redemption is permitted by Section 6.4;

 

(k)          for
the avoidance of doubt, any amounts payable by the Borrower or any of its Subsidiaries with respect to declared and unpaid dividends
that were permitted by Section 6.4 at the time of declaration;

 

    	 	- 62 -	 

     

    

 

(l)          Debt
of the Borrower or any of its Subsidiaries under any Swap Agreements so long as such Swap Agreements are used solely as a part
of its normal business operations as a risk management strategy or a hedge against changes resulting from market operations and
not as a means to speculate for investment purposes on trends and shifts in financial or commodities markets;

 

(m)          Debt
incurred in the ordinary course of business under incentive, non-compete, consulting, deferred compensation, or other similar arrangements
incurred by the Borrower or any of its Subsidiaries;

 

(n)          Debt
in respect of Taxes, governmental assessments or governmental charges to the extent that payment thereof shall not at the time
be required to be made hereunder;

 

(o)          Additional
senior secured loans (which shall rank pari passu with all outstanding senior secured loans (including the Loans)) in an
aggregate amount up to $40,000,000 (in minimum increments of $10,000,000); provided, that, such debt shall be (1) on terms
no more favorable to the lenders thereof than the terms applicable to the Debt evidenced by this Agreement and the other Loan Documents
(and if such Debt is on more favorable terms than the terms of this Agreement and the Loan Documents, then the Borrower shall be
required to cause an amendment to this Agreement and the Loan Documents to give the benefit of such more favorable terms to the
Lenders), (2) such additional Debt shall not mature prior to or have a weighted average life shorter than the Debt evidenced by
this Agreement and the other Loan Document and (3) the Lender Assignees shall have a right of first offer to participate as lenders
in such additional senior secured loans;

 

(p)          Debt
assumed or incurred by any Subsidiary with respect to any Asset acquired by such Subsidiary as a result of a foreclosure, deed-in-lieu
or other similar proceeding or transactions in connection with the ownership by such Subsidiary of any Senior Commercial Real Estate
Loans, Senior Commercial Real Estate Construction Loans, Mezzanine Loans, Subordinated Commercial Real Estate Loans or Preferred
Equity Investment so long as, with respect to any new Debt that is incurred, the loan-to-value ratio of such Debt does not exceed
80% at the time incurred (it being understood that any such Debt shall be non-recourse to the Borrower and the documents governing
such Debt may include customary carve-outs to limit recourse such as recourse to the Borrower for environmental matters, fraud,
misrepresentation or voluntary and involuntary bankruptcy filings);

 

(q)          Contingent
Obligations resulting from the endorsement of instruments for collection in the ordinary course of business or that otherwise become
due and are satisfied within twenty (20) days thereof;

 

(r)          Debt
between the Borrower and any of its Subsidiaries and so long as such Debt is evidenced by a promissory note and subordinated to
the Loans pursuant to an Intercompany Subordination Agreement to the extent that the obligor on such Debt is a Loan Party;

 

    	 	- 63 -	 

     

    

 

(s)          Debt
which may be deemed to exist pursuant to any performance bonds, surety bonds, statutory bonds, appeal bonds or similar obligations
incurred in the ordinary course of business;

 

(t)          Guarantees
of any Debt permitted pursuant to this Section 6.1;

 

Any Debt incurred by
any Loan Party or any Subsidiary that is permitted by this Section 6.1 shall only be issued to the extent that (i) there
is no Borrowing Base Deficiency hereunder, (ii) no Default or Event of Default has occurred and is continuing and (iii) the
Borrower’s Total Net Leverage Ratio is not greater than 4.5:1.0, in each case, at the time of any subsequent funding of such
permitted debt (taking into account the funding of the related loan amount); provided, that clause (iii) hereof shall only
apply to Debt for Borrowed Money. The Borrower may issue preferred equity which is subordinate to the Loans with a maturity date
beyond the final legal maturity of the Loans which shall not be considered Debt in the Total Net Leverage Ratio.

 

6.2          Liens.
Create, incur, assume, or permit to exist, directly or indirectly, any Lien on or with respect to any of its Assets, of any kind,
whether now owned or hereafter acquired, or any income or profits therefrom, except:

 

(a)          Permitted
Collateral Liens;

 

(b)          Liens
on Assets securing Debt permitted under Sections 6.1(a), (c), (d), (e), (h), (l), (o),
(p) and (t); provided that, with respect to any Liens securing Debt permitted under Section 6.1(l),
such Liens shall be permitted to the extent they are created, incurred, or exist on or with respect to cash, Cash Equivalents and/or
letters of credit (and proceeds thereof) in an aggregate amount not to exceed 10% of the Tangible Net Worth of the Borrower and
its Subsidiaries;

 

(c)          Liens
on Mezzanine Loans, Subordinated Commercial Real Estate Loans and Preferred Equity Investments to the extent securing Debt permitted
under Sections 6.1(c) and (d); provided that, any Liens on Mezzanine Loans, Subordinated Commercial Real
Estate Loans and Preferred Equity Investments created, incurred, assumed, or existing pursuant to this clause (d) do not
exceed the 15% of the aggregate outstanding amount of any related Warehousing Debt facility or Securitization Indebtedness; and

 

(d)          Liens
securing Debt or amounts available under Debt facilities (whether or not drawn) existing on the Closing Date and listed on Schedule
6.2.

 

    	 	- 64 -	 

     

    

 

6.3          Debt
Prepayments. Make or offer to make (or give any notice in respect thereof) any
optional or voluntary payment, prepayment, repurchase or redemption of, or voluntarily or optionally defease, or otherwise satisfy
prior to the scheduled maturity thereof in any manner, any Debt (other than the Loans and, for the avoidance of doubt, any revolving
credit facilities, overdraft lines of credit or other similar revolving obligations); except that (a) the Borrower or any of its
Subsidiaries may make such voluntary payments, repayments, repurchases or redemptions of, or voluntary or optional defeasements,
or otherwise satisfy prior to the scheduled maturity thereof in any manner (other than payments, repayments, repurchases, redemptions
or defeasements constituting Extraordinary Restricted Payments), any Debt so long as (i) no Event of Default or Default has occurred
and is continuing or would result therefrom and (ii) the Borrower is in pro forma compliance with the financial covenants set
forth in Section 6.12 immediately before and after giving effect to such payments (b) the Borrower shall be permitted to
make Extraordinary Restricted Payments but only with the prior written consent of the Required Lenders (not to be unreasonably
withheld, delayed or conditioned unless an Event of Default or Default has occurred and is continuing or would result therefrom)
and (c) the Borrower or any of its Subsidiaries may make such voluntary payments, repayments, repurchases or redemptions of, or
voluntary or optional defeasements, or otherwise satisfy prior to the scheduled maturity thereof, any Warehousing Debt or Securitization
Indebtedness unless an Event of Default or Default has occurred and is continuing or would result therefrom.

 

6.4          Dividends.
The Borrower shall not make or declare, directly or indirectly, any dividend or other payment or distribution on account of any
interest of any class of equity securities in Borrower, whether now or hereafter outstanding (collectively, a “Distribution”);
except (a) the Borrower may make Distributions (other than Extraordinary Restricted Payments) so long as (i) no Event of Default
or Default has occurred and is continuing or would result therefrom and (ii) the Borrower is in pro forma compliance with the
financial covenants set forth in Section 6.12 immediately before and after giving effect to such Distribution and (b) notwithstanding
anything to the contrary in this Agreement, the Borrower may make Distributions at any time in an amount necessary to maintain
its status as a “real estate investment trust” as defined in Section 856 of the Code (“REIT”) and
avoid the imposition of income and excise tax on the Borrower. The Borrower shall be permitted to make Extraordinary Restricted
Payments but only with the prior written consent of the Required Lenders (not to be unreasonably withheld, delayed or conditioned
unless an Event of Default or Default has occurred and is continuing or would result therefrom).

 

6.5          Restriction
on Fundamental Changes. Change its name, change the nature of its business, enter
into any merger, consolidation, reorganization, or recapitalization, or reclassify its partnership interests (whether limited
or general) or membership interests, as applicable, or convey, sell, assign, lease, transfer, or otherwise dispose of, in one
transaction or a series of transactions, all or any substantial part of its business or Assets, whether now owned or hereafter
acquired (each, a “Fundamental Change”) except:

 

(a)          Borrower
or any of its Subsidiaries may sell Assets in accordance with the provisions of Section 6.6;

 

(b)          Borrower
or any of its Subsidiaries may change its name or corporate, partnership or limited liability structure so long as (i) the Loan
Parties provide written notice thereof (together with copies of any documents evidencing any such change) to the Agents on or
before the date that is ten (10) Business Days prior to the date when such name or structure change occurs and (ii) any other
Subsidiaries of the Borrower provide written notice thereof (together with copies of any documents evidencing any such change)
to the Agents on or before the date that is thirty (30) days after the date when such name or structure change occurs; and

 

    	 	- 65 -	 

     

    

 

 

(c)          the
conveyance, sale, assignment, lease, transfer, or other disposal of all or any substantial part of its business or Collateral,
merger, consolidation or reorganization of any Person, on the one hand, with and into the Borrower or any of its Subsidiaries,
provided that (i) the Lender Group’s rights in any Assets, including, without limitation, the existence, perfection
and priority of any Lien thereon, are not adversely affected by such merger, consolidation or reorganization, (ii) upon the consummation
of such conveyance, sale, assignment, lease, transfer, or other disposal of all or any substantial part of its business or Assets,
merger, consolidation or reorganization, the Borrower and any applicable Subsidiary expressly reaffirms its Obligations to the
Lender Group under this Agreement and the other Loan Documents to which it is a party and (iii) such acts do not result in a Change
of Control Event.

 

6.6           Sale
of Assets. Sell, assign, transfer, convey, or otherwise dispose of its Assets (any such
transaction, a “Sale”), whether now owned or hereafter acquired, except for (a) any Sale by the Borrower
in the ordinary course of business (it being understood that any Sale of MSRs shall not be considered to be in the ordinary course
of business of the Borrower for purposes of this subclause (a)), (b) any Sale of obsolete, worn out or surplus tangible
property, (c) any Sale of Assets for the liquidation, dissolution or winding up of a wholly-owned Subsidiary of the Borrower
(i) if from a non-Loan Party Subsidiary, to any another Subsidiary and (ii) if from a Loan Party, to another Loan Party, (d) any
transaction permitted by Sections 6.4 or 6.5 of this Agreement; (e) any Sale pursuant to, or in connection with,
any Securitization Transaction or Warehousing Debt; (f) any other Sale of Assets of the Borrower and the Subsidiaries so long
as (i) the Borrower is in compliance with the financial covenants set forth in Section 6.12 immediately before such
Sale of Assets, and immediately after giving effect thereto, (ii) any such Sale of Assets shall be for fair market value consideration
(as determined by the Borrower in good faith and consistent with the Assigned Value given such Asset for purposes of this Agreement
in the most recent Borrowing Base Certificate delivered to the Agents) and of which at least 75% of such consideration shall be
comprised of cash or Cash Equivalents and (iii) no Default or Event of Default has occurred and is continuing or would result
therefrom, in each case, immediately prior to and after giving effect to such Sale for fair market value.

 

6.7           Transactions
with Shareholders and Affiliates. Enter into or permit to exist, directly or indirectly,
any transaction (including the purchase, sale, lease, or exchange of any Asset or the rendering of any service) with any holder
of 15 % or more of any class of Securities of the Borrower or any of its Subsidiaries or Affiliates, or with any Affiliate of
the Borrower or of any such holder, in each case other than (x) a Loan Party or (y) any Subsidiary of the Borrower, on terms that
are less favorable to such Subsidiary, than those terms that might be obtained at the time from Persons who are not such a holder,
Subsidiary, or Affiliate, or, if such transaction is not one in which terms could be obtained from such other Person, on terms
that are no less favorable than terms negotiated in good faith on an arm’s length basis. Prior to the Borrower or any of
its Subsidiaries engaging in any such transaction described in this Section 6.7, other than transactions in de
minimis amounts, the Borrower shall determine that such transaction has been negotiated in good faith and on an arm’s
length basis. In no event shall the foregoing restrictive covenant apply to (a) any transaction permitted by Section 6.4
or (b) transactions involving the use, transfer, or other disposition of any Asset, to the extent that (i) the Distribution
by the Borrower of such Asset would not have violated this Agreement and (ii) such use, transfer, or other disposition would not
otherwise result in an Event of Default or an Default.

 

    	 	- 66 -	 

     

    

 

6.8           Conduct
of Business. Engage in any business other than the business to which it is engaged
as of the Closing Date and any related businesses or activities substantially similar or related thereto or reasonable extensions
of any such business or activities including, without limitation, the commercial real estate mortgage business, commercial real
estate brokerage business, commercial real estate business, commercial real estate-related securities acquisitions and acquisitions
of MSRs.

 

6.9           Amendments
or Waivers of Certain Documents; Actions Requiring the Consent of the Agents. Agree to
any amendment to or waiver of the terms or provisions of its Governing Documents except for amendments or waivers which would
not, either individually or collectively, be materially adverse to the interests of the Lender Group; provided, that any amendment
or waiver to the Governing Documents which adversely affects the validity or priority of the Lender’s security interest
in any of the Collateral shall be deemed to be materially adverse to the interests of the Lender Group.

 

6.10         Limitation
on Negative Pledges. Enter into or suffer to exist or become effective any agreement or other arrangement that prohibits,
restricts or imposes any condition upon the ability of the Borrower or any of its Subsidiaries to create, incur, assume or suffer
to exist any Lien upon any Collateral (other than Securities in Securitization Entities), whether now owned or hereafter acquired,
to secure the Obligations, except for any restrictions that:

 

(a)          exist
under this Agreement and the other Loan Documents;

 

(b)          exist
on the date hereof and (to the extent not otherwise permitted by this Section 6.10) are listed on Schedule 6.10 hereto;

 

(c)          are
binding on a Subsidiary or its Assets at the time such Subsidiary or its Assets first becomes a Subsidiary or owned by a Subsidiary,
as applicable, so long as such restrictions were not entered into solely in contemplation of such Person becoming a Subsidiary;

 

(d)          are
customary restrictions and conditions contained in any agreement relating to any transaction permitted by Section 6.6 pending
the consummation of such transaction; provided that such restrictions and conditions apply only to the property that is
the subject of such transaction and not to the proceeds to be received by the Borrower or any of its Subsidiaries in connection
with such transaction;

 

(e)          are
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;

 

(f)          are
customary provisions restricting subletting or assignment of any lease governing a leasehold interest of the Borrower or any Subsidiary;

 

(g)          are
customary provisions restricting assignment or transfer of any agreement entered into in the ordinary course of business; and

 

(h)          are
amendments, modifications, restatements, refinancings or renewals of the agreements, contracts or instruments referred to in Sections
6.10(b) through (g) above; provided that such amendments, modifications, restatements, refinancings or renewals,
taken as a whole, are not materially more restrictive with respect to such encumbrances and restrictions than those contained in
such predecessor agreements, contracts or instruments.

 

    	 	- 67 -	 

     

    

 

6.11         Margin
Regulation. Use any portion of the proceeds of any of the Loans in any manner which could reasonably
be expected to cause the Loans, the application of such proceeds, or the Transactions to violate Regulations T, U or X of the
Federal Reserve Board, or any other regulation of such board, or to violate the Exchange Act, or to violate the Investment Company
Act of 1940.

 

6.12         Financial
Covenants. The Borrower shall not:

 

(a)          Minimum
Asset Coverage Ratio. Commencing with the fiscal quarter ending March 31, 2019, permit the Asset Coverage Ratio on the last
day of each Test Period, be less than 110%.

 

(b)          Minimum
Unencumbered Asset Ratio. Commencing with the fiscal quarter ending March 31, 2019, permit the Unencumbered Asset Ratio on
the last day of each Test Period, be less than of 135%.

 

(c)          Maximum
Total Net Leverage Ratio. Commencing with the fiscal quarter ending March 31, 2019, permit the Total Net Leverage Ratio on
the last day of each Test Period to exceed 6.00:1.00; provided that, after any equity offering of the Borrower, the Total
Net Leverage Ratio shall step down to a ratio no greater than 120% of the ratio immediately after the Capital Event, with a floor
of 4.50:1.00.

 

(d)          Minimum
Tangible Net Worth. Permit the Tangible Net Worth on the last day of each Test Period (commencing with the fiscal quarter ending
March 31, 2019), to be less than the amount equal to the sum of (i) eighty percent (80%) of the Borrower’s and its Subsidiaries’
Tangible Net Worth as of October 31, 2018 (provided that any preferred equity of the Borrower outstanding as of such date and on
or prior to the Closing Date shall not be included in the calculation of Tangible Net Worth), which Tangible Net Worth is equal
to as of such date, plus (ii) eighty percent (80%) of the net proceeds (after deducting transaction costs) that the Borrower and
its Subsidiaries receive from subsequent equity issuances.

 

(e)          Minimum
Interest Coverage Ratio. Commencing with the fiscal quarter ending March 31, 2019, permit the Interest Coverage Ratio on the
last day of each Test Period, to be less than 1.4x.

 

(f)           Loan
Concentration.

 

(i)          Permit
less than 65.0% of loans held for investment (as defined in the consolidated balance sheet of the Borrower) by the Borrower to
be comprised of Senior Commercial Real Estate Loans, as measured by the average daily outstanding principal balance of all loans
held for investment (as defined in the consolidated balance sheet of the Borrower) during a fiscal quarter and as adjusted for
non-controlling interests for which none of the Borrower or its Affiliates or the Borrower’s external manager or its Affiliates
holds majority lender status or similar voting control for the subject loan.

 

    	 	- 68 -	 

     

    

 

(ii)         Permit
more than 30% of total assets (by unpaid principal balance or if unpaid principal balance is not available, by book value (which
in the case of MSRs, shall be the value provided by the Valuation Agent) owned by the Borrower to be comprised of non-multi-family
assets during a fiscal quarter.

 

(iii)        Permit
more than 30% of the Borrowing Base Eligible Assets (by unpaid principal balance or if unpaid principal balance is not available,
by book value (which in the case of MSRs, shall be the value provided by the Valuation Agent) to be comprised of non-multi-family
assets during a fiscal quarter.

 

6.13         Plans.
No Loan Party shall become a party to any Multiemployer Plan or Single Employer Plan other than any such plan to which the Loan
Party as a party on the date of this Agreement without first notifying the Agents, or fail to meet all of the requirements of
the Pension Funding Rules with respect to a Single Employer Plan. No Loan Party shall, or shall cause or permit any ERISA Affiliate
to (a) cause or permit to occur any event that could result in the imposition of a Lien against a Loan Party under the Pension
Funding Rules or (b) cause or permit to occur an ERISA Event which could reasonably be expected to have a Material Adverse Effect.

 

6.14         Change
of Servicer and Special Servicer. The Borrower shall not permit a change in special servicer
for any of Mortgage Assets from an affiliate of Hunt Investment Management, LLC to an unaffiliated entity without written approval
by the Required Lender(s) at their sole discretion within ninety (90) days of the change occurring. The Borrower shall not permit
a change in the primary servicer for any of Mortgage Assets which has a rating lower than “CMS3” by Fitch Ratings
or which causes the securities in the related Securitization Transaction to be downgraded, unless otherwise approved by the Required
Lender(s) at their sole discretion within ninety (90) days of the change occurring.

 

Article
VII

 

EVENTS OF DEFAULT AND REMEDIES

 

7.1           Events
of Default. The occurrence of any one or more of the following events, acts, or
occurrences shall constitute an event of default (“Event of Default”) hereunder:

 

(a)          Failure
to Make Payments When Due.

 

(i)          Any
Loan Party shall (A) fail to pay any amount owing hereunder with respect to the principal of any of the Loans when such amount
is due, whether at stated maturity, by acceleration, or otherwise or (B) fail to comply with Section 2.8(b); or

 

(ii)         Any
Loan Party shall fail to pay, within three (3) Business Days of the date when due, any amount owing hereunder with respect to
interest on any of the Loans or with respect to any other amounts (including fees, costs, or expenses) other than the amounts
specified in clause (i) above, payable in connection herewith.

 

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(b)          Breach
of Certain Covenants.

 

(i)          Any
Loan Party shall fail to perform or comply with any covenant, term, or condition contained in Article VI of this Agreement
or in any other Loan Document; provided that an Event of Default with respect to Section 6.12 shall not occur until
the Cure Expiration Date; and

 

(ii)         Any
Loan Party shall fail to perform or comply with any other covenant, term, or condition contained in this Agreement or other Loan
Documents to which it is a party and such failure shall not have been remedied or waived within twenty (20) days after the earlier
of (x) knowledge of the occurrence thereof by the Borrower or (y) receipt of notice from any Agent of the occurrence thereof; provided,
however, that this clause (ii) shall not apply to: (1) the covenants, terms, or conditions referred to in subsections
(a) and (c) of this Section 7.1; or (2) the covenants, terms, or conditions referred to in clause (i)
above of this subsection (b).

 

(c)          Breach
of Representation or Warranty. Any financial statement, representation, warranty, or certification made or furnished by the
Borrower or any other Loan Party under this Agreement or in any document, letter, or other writing or instrument furnished or delivered
by the Borrower to any Agent or any Lender pursuant to or in connection with this Agreement or any other Loan Document to which
it is a party shall have been false, incorrect, or incomplete in any material respect (except that such materiality qualifier shall
not be applicable to any representation or warranty to the extent that such representation or warranty is qualified or modified
by materiality or “Material Adverse Effect”) when made, deemed made or reaffirmed, as the case may be.

 

(d)          Involuntary
Bankruptcy.

 

(i)          If
an involuntary petition under chapter 7 or chapter 11 of the Bankruptcy Code or any similar proceeding shall be filed against the
Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries) under any other applicable law and any of the following
events occur: (1) such Person consents to the institution of the involuntary case or similar proceeding; (2) the petition commencing
the involuntary case or similar proceeding is not timely controverted; (3) the petition commencing the involuntary case or similar
proceeding is not dismissed within sixty (60) days of the date of the filing thereof; provided, however, that, during
the pendency of such period, the Lender Group shall be relieved of its obligation to make additional Loans; (4) an interim trustee
is appointed to take possession of all or a substantial portion of the Collateral of the Borrower or any of its Subsidiaries (other
than Immaterial Subsidiaries); or (5) an order for relief shall have been issued or entered therein.

 

(ii)         A
decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, custodian,
trustee, or other officer having similar powers over the Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries)
to take possession of all or a substantial portion of its Collateral shall have been entered and, within sixty (60) days from the
date of entry, is not vacated, discharged, or bonded against, provided, however, that, during the pendency of such
period, the Lender Group shall be relieved of its obligations to make additional Loans.

 

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(e)          Voluntary
Bankruptcy. The Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries) shall file a petition for relief under
chapter 7 or chapter 11 of the Bankruptcy Code; the Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries) shall
commence or otherwise consent to Insolvency Proceedings or shall otherwise institute any similar proceeding under any other applicable
law, or shall consent thereto; the Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries) shall consent to the
conversion of an involuntary case to a voluntary case; or the Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries)
shall consent or acquiesce to the appointment of a receiver, liquidator, sequestrator, custodian, trustee, or other officer with
similar powers to take possession of all or a substantial portion of its Collateral; the Borrower or any of its Subsidiaries (other
than Immaterial Subsidiaries) shall generally fail to pay debts as such debts become due or shall admit in writing its inability
to pay its debts generally; or the Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries) shall make a general
assignment for the benefit of creditors.

 

(f)           Dissolution.
Any order, judgment, or decree shall be entered decreeing the dissolution of the Borrower or any of its Subsidiaries (other than
Immaterial Subsidiaries), and such order, judgment or decree shall remain undischarged or unstayed for a period in excess of sixty
(60) days.

 

(g)         Change
of Control. A Change of Control Event shall occur.

 

(h)          Judgments
and Attachments. The Borrower or any of its Subsidiaries shall suffer any money judgment, writ, or warrant of attachment, or
similar process involving payment of money in an amount, net of any portion thereof that is covered by or recoverable by the Borrower
or such Subsidiary under applicable insurance policies (if any) in excess of $3,500,000 and shall not discharge, vacate, bond,
or stay the same within a period of sixty (60) days.

 

(i)           Guaranty.
(1) If the obligation of any Guarantor under the Guaranty is limited or terminated by operation of law or such Guarantor thereunder,
(2) if any Guarantor shall fail to perform or comply with any covenant, term, or condition contained in the Guaranty or (3) any
financial statement, representation, warranty, or certification made or furnished by any Guarantor under this Agreement, the Guaranty
or in any document, letter, or other writing or instrument furnished or delivered by such Guarantor to any Agent or any Lender
pursuant to or in connection with this Agreement, the Guaranty or any other Loan Document to which it is a party, or as an inducement
to the Lender Group to enter into this Agreement or any other Loan Document shall have been false, incorrect, or incomplete in
any material respect (except that such materiality qualifier shall not be applicable to any representation or warranty to the extent
that such representation or warranty is qualified or modified by materiality or “Material Adverse Effect”) when made,
deemed made or reaffirmed, as the case may be.

 

(j)           Cross-Default.
The Borrower or any of its Subsidiaries shall be in default relating to Debt (other than Debt evidenced by this Agreement) which
is outstanding in excess of a principal amount of $3,500,000, individually or in the aggregate, and such default shall continue
beyond any or all applicable grace, cure and notice periods relating to such Debt (as such periods may be extended with the approval
of all applicable counterparties to such Debt and by the Required Lenders).

 

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(k)          ERISA.
There occurs one or more ERISA Events which has resulted or could reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect.

 

(l)           Agent’s
Liens. If any Loan Document that purports to create a Lien shall fail or cease to create, except to the extent permitted by
the terms of any such Loan Document, a valid and perfected Lien on the Collateral; and

 

(m)          Loan
Documents. Any provision of any Loan Document shall at any time for any reason be declared to be null and void, or the validity
or enforceability thereof shall be contested by any Loan Party or any Negative Pledgor Subsidiary, or a proceeding shall be commenced
by any Loan Party, any Negative Pledgor Subsidiary or any Governmental Authority having jurisdiction over any Loan Party or any
Negative Pledgor Subsidiary, seeking to establish the invalidity or unenforceability thereof, or any Loan Party or any Negative
Pledgor Subsidiary shall deny in writing that any Loan Party or Negative Pledgor Subsidiary has any liability or obligation purported
to be created under any Loan Document.

 

7.2           Remedies.
Upon the occurrence of an Event of Default:

 

(a)          If
such Event of Default arises under subsections (d) or (e) of Section 7.1 hereof, then all of the Obligations
owing hereunder or under the other Loan Documents automatically shall become immediately due and payable, without presentment,
demand, protest, notice, or other requirements of any kind, all of which are hereby expressly waived by the Borrower; and

 

(b)          In
the case of any other Event of Default that has occurred and is continuing, the Required Agents may declare all of the Obligations
owing hereunder or under the Loan Documents to be, and the same immediately shall become due and payable, without presentment,
demand, protest, further notice, or other requirements of any kind, all of which are hereby expressly waived by the Borrower.

 

Upon any exercise of
rights pursuant to Sections 7.2(a) and (b) above, the Agents (without notice to or demand upon the Borrower, which
are expressly waived by the Borrower to the fullest extent permitted by law), shall be entitled to proceed to protect, exercise,
and enforce the Lender Group’s rights and remedies hereunder or under the other Loan Documents, or any other rights and remedies
as are provided by law or equity. The Agents may determine, in their sole discretion, the order and manner in which the Lender
Group’s rights and remedies are to be exercised. All payments received by the Agents shall be applied in accordance with
Section 2.3 (a)(ii).

 

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7.3           Borrower’s
Right to Cure. 

 

(a)          Notwithstanding
anything to the contrary contained in Section 7.1, for purposes of determining whether an Event of Default has occurred
under any financial covenant set forth in Section 6.12, any cash received by the Borrower after the last day of the fiscal
quarter in respect of which such Event of Default has occurred and on or prior to the date that is five (5) Business Days after
the date on which financial statements are required to be delivered for such fiscal quarter (the “Cure Expiration Date”)
will, at the request of the Borrower, be included in the calculation of Borrowing Base or the Borrowing Base Eligible Assets solely
for the purposes of determining compliance with the financial covenants set forth in Section 6.12 at the end of such fiscal
quarter and any subsequent period that includes such fiscal quarter (a “Cash Cure Amount”); provided
that (a) the amount of any Cash Cure Amount and the use of proceeds therefrom will be no greater than the amount required to cause
the Borrower to be in compliance with the financial covenants set forth in Section 6.12 and (b) the proceeds of all Cash
Cure Amounts shall be applied to prepay the Loans and accompanied by the applicable Yield Maintenance Premium required by Section
2.8(d) (if any). Upon the delivery of the Cash Cure Amount to the Borrower prior to the Cure Expiration Date, any Event of
Default that has occurred pursuant to Section 6.12 shall be deemed to not have occurred and, for the avoidance of doubt,
neither any Agent nor any Lender shall exercise the right to accelerate the Loans and none of any Agent, any Lender or any Secured
Party shall exercise any right to foreclose on or take possession of the Collateral or exercise any other remedy pursuant to Section
7.2, the other Loan Documents or applicable law prior to the Cure Expiration Date solely on the basis of an Event of Default
having occurred and continuing under Section 6.12 (except to the extent that the Borrower has confirmed that in writing
that it does not intend to provide a Cash Cure Amount). For the avoidance of doubt, the Borrower shall not be able to obtain any
Loan hereunder until receipt by the Agents of the Cash Cure Amount; and

 

(b)          Notwithstanding
anything to the contrary herein, the Borrower shall (to the extent capable of cure) have five (5) Business Days to cure any event
that would give rise to a reduction in value of any Borrowing Base Eligible Asset, including, for the avoidance of doubt, a VAE
and any event described in Section 11.5.

 

Article
VIII

EXPENSES AND INDEMNITIES

 

8.1           Expenses.
The Borrower shall pay without duplication, (i) all reasonable and documented out-of-pocket costs and expenses (except allocated
costs of in-house counsel) reasonably incurred by the Agents and the Lenders in connection with the preparation, negotiation,
execution, delivery and administration of this Agreement and the other Loan Documents, or any amendments, modifications or waivers
of the provisions hereof or thereof, including the reasonable and documented fees, charges and disbursements of counsel (but limited
to (A) one primary counsel for the Agents, (B) one primary counsel for the Lenders and (C) if necessary, one local counsel in
each relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) and in the case of an
actual or perceived conflict of interest, where the party affected by such conflict, informs the Borrower of such conflict and
thereafter retains its own counsel, of another firm of counsel for each such affected person); provided, however,
that the Borrower is not obligated to reimburse the Lenders for legal fees incurred on or before the Closing Date in connection
with the preparation of this Agreement and the other Loan Documents to the extent that such legal fees exceed $250,000 (the “Legal
Expenses Cap”) and (ii) all out-of-pocket costs and expenses incurred by each Agent or each Lender (including the fees,
charges and disbursements of any counsel for any Agent or any Lender) in connection with the development, preparation, negotiation
and execution of any amendment, waiver, consent or other modification of the provisions of this Agreement or any other Loan Document
and the enforcement or protection of any rights and remedies under this Agreement (including, without limitation, with respect
to the Collateral) and the other Loan Documents, including all such costs and expenses incurred during any legal proceeding, including
any proceeding under any Debtor Relief Law, and including in connection with any workout, restructuring or negotiations in respect
of the Credit Facilities and the Loan Documents, including the customary and reasonable fees, charges and disbursements of counsel
(collectively, the expenses set forth in clause (i) and (ii), the “Lender Group Expenses”).

 

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8.2           Indemnity.
In addition to the payment of expenses pursuant to Section 8.1 hereof, the Borrower agrees to indemnify, exonerate, defend,
pay, and hold harmless the Agent-Related Persons and the Lender-Related Persons (collectively the “Indemnitees”
and individually as “Indemnitee”) from and against any and all liabilities, obligations, losses, damages, penalties,
actions, causes of action, judgments, suits, claims, costs, expenses, and disbursements of any kind or nature whatsoever (including
the reasonable and documented fees and disbursements of (A) one primary counsel for the Agent-Related Persons, taken as a whole,
(B) one primary counsel for the Lender-Related Persons, taken as a whole, and (C) if reasonably necessary, one local counsel in
each relevant jurisdiction for the Agent-Related Persons and Lender-Related Persons (which may include a single special counsel
acting in multiple jurisdictions) and in the case of an actual or perceived conflict of interest, where the party affected by
such conflict is advised in writing by its outside counsel and informs the Borrower of such conflict and thereafter retains its
own counsel, of another firm of counsel for each such affected person) in connection with any investigation, administrative, or
judicial proceeding, whether such Indemnitee shall be designated a party thereto), that may be imposed on, incurred by, or asserted
against such Indemnitee, in any manner relating to or arising out of the execution a, delivery, enforcement, performance, syndication
or administration of any Loan Document or any other agreement, letter or instrument delivered in connection with the transactions
contemplated thereby, the business or Assets of any Loan Party (to include, without limitation, any actual or alleged presence
or release of Hazardous Material on or from any property currently or formerly owned or operated by Borrower, any Subsidiary or
any other Loan Party, or any violation of any Environmental Law related in any way to the Borrower, and any Subsidiary or any
other Loan Party), the Commitments, the use or intended use of the proceeds of the Loans or the consummation of the transactions
contemplated by this Agreement, including any matter relating to or arising out of the filing or recordation of any of the Loan
Documents which filing or recordation is done based upon information supplied by the Borrower to the Agents and its counsel (the
“Indemnified Liabilities”); provided, that the Borrower shall have no obligation hereunder to any Indemnitee
to the extent (x) that such Indemnified Liabilities are found in a final non-appealable judgment by a court of competent jurisdiction
to have resulted from the gross negligence, bad faith, or willful misconduct of such Indemnitee or (y) any dispute solely among
Indemnitees (other than any claims against an Indemnitee in its capacity or in fulfilling its role as an agent or arranger or
any similar role hereunder or under any other Loan Document and other than any claims arising out of any act or omission of the
Borrower). The obligations of the Borrower under this Section 8.2 shall survive the termination of this Agreement and the
discharge of the Borrower’s other obligations hereunder. This Section 8.2 shall not apply with respect to Taxes,
which shall be governed by Section 10.11, other than any Taxes that represent liabilities, obligations, losses or damages,
arising from a non-Tax claim.

 

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Article
IX

 

ASSIGNMENT AND PARTICIPATIONS

 

9.1           Successors
and Assigns Generally. (a)     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, subject to Section 9.1(f), neither the Borrower nor any other Loan Party may
assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Agents and each
Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in
accordance with the provisions of Section 9.1(b), (ii) by way of participation in accordance with the provisions of Section
9.1(d), or (iii) by way of pledge or assignment of a security interest subject to the restrictions of Section 9.1(e)
(and any other attempted assignment or transfer 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 9.1(d) and, to the extent expressly contemplated hereby,
the Agent-Related Persons of each of the Agents and the Lenders) any legal or equitable right, remedy or claim under or by reason
of this Agreement.

 

(b)          Assignments
by Lenders. Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under
this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); provided that (in each
case with respect to any Credit Facility) any such assignment shall be subject to the following conditions:

 

(i)          Minimum
Amounts. Except in the case of an assignment to a Lender or an Affiliate of a Lender, the aggregate amount of the Commitment
(which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal
outstanding balance of the Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment
and Acceptance with respect to such assignment is delivered to the Administrative Agent) shall not be less than $1,000,000, unless
so long as no Event of Default has occurred and is continuing, the Borrower consents in writing to the assignment of such lesser
amount (each such consent not to be unreasonably conditioned, withheld or delayed).

 

(ii)         Proportionate
Amounts. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s
rights and obligations under this Agreement with respect to the Loan or the Commitment assigned, except that this clause (ii)
shall not prohibit any Lender from assigning all or a portion of its rights and obligations among Initial Term Loans on a non-pro
rata basis.

 

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(iii)        Required
Consents. No consent shall be required for any assignment except to the extent required by Section 9.1(b)(i) and, in
addition: (A) the written consent of the Borrower shall be required (such consent not to be unreasonably conditioned, withheld
or delayed); provided that, no consent of the Borrower shall be required (x) in the event a Default (after expiry of any
grace, cure and notice periods or as further extended with the approval of the Required Lenders) or an Event of Default has occurred
and is continuing at the time of such assignment or (y) if such assignment is to a Lender, an Affiliate of a Lender or an Approved
Fund; provided, further, that the Borrower shall be deemed to have consented to any such assignment unless it shall
object thereto by written notice to the Agents within ten (10) Business Days after having received written notice thereof (which
notice shall provide, in bold type face, that if the Borrower does not object in writing to such assignment within ten (10) Business
Days, the Borrower’s consent shall have been deemed to have been provided) and (B) the consent of the Agents (such consent
not be unreasonably withheld or delayed) shall be required for assignments in respect of any Loans to a Person who is not a Lender,
an Affiliate of a Lender or an Approved Fund.

 

(iv)        Assignment
and Acceptance. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Acceptance,
together with a processing and recordation fee of $3,500; provided that the Required Agents may, in their sole discretion,
elect to waive such processing and recordation fee in the case of any assignment. The assignee, if it is not a Lender, shall deliver
to the Agents an Administrative Questionnaire, a duly executed IRS Form W-9, or such other IRS Form as applicable, and all “know
your customer” documentation requested by the Administrative Agent.

 

(v)         No
Assignment to Certain Persons. No such assignment shall be made to the Borrower or any of the Borrower’s Affiliates or
Subsidiaries except as permitted by Section 9.1(f).

 

(vi)        Certain
Additional Payments. In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, 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 Borrower and the Required Agents, 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 pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Agents and
each other Lender hereunder (and interest accrued thereon), in accordance with its applicable percentage. Notwithstanding the foregoing,
in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable
law without compliance with the provisions of this paragraph, 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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Subject to acceptance and recording thereof
by the Administrative Agent pursuant to Section 9.1(c), and receipt of all requirements under Section 9.1(b)(iv)
by the Administrative Agent, from and after the Administrative Agent has recorded such Assignment and Acceptance in the Register,
the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Acceptance,
have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case of
an Assignment and Acceptance covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto) but shall continue to be entitled to the benefits of Section 2.11, Section 8.1
and Section 8.2 with respect to facts and circumstances occurring prior to the effective date of such assignment; provided,
that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute
a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender. Any assignment
or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated
for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with Section
9.1(d).

 

(c)          Register.
The Administrative Agent, acting solely for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its
offices in Chicago, Illinois 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 Commitments of, and principal amounts (and stated interest) of the Loans owing to,
each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall
be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name
is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register
shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable
prior written notice.

 

(d)          Participations.

 

(i)        Any
Lender may at any time, sell participations to any Person (other than 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 Borrower or any of the Borrower’s
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 Commitment and/or the Loans owing to it); provided that
(i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible
to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent and Lenders
shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under
this Agreement.

 

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(ii)         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 Sections 11.2(a)-(i) that affects such Participant. The Borrower agrees that each Participant
shall be entitled to the benefits of Sections 2.11, 2.16 and 10.11 (subject to the requirements and limitations
therein, including the requirements under Section 10.11 (it being understood that the documentation required under Section
10.11 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 paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the
provisions of Section 2.16 as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled
to receive any greater payment under Sections 2.11 or 10.11, with respect to any participation, than its participating
Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change
in Law that occurs after the Participant acquired the applicable participation. To the extent permitted by law, each Participant
also shall be entitled to the benefits of Section 10.13 as though it were a Lender; provided that such Participant
agrees to be subject to Section 10.13 as though it were a Lender. Each Lender that sells a participation shall, acting solely
for this purpose as a non-fiduciary agent of the Borrower, 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 Loan 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 Loan 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. 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 this Agreement 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.

 

(iii)        No
consent shall be required for any participation except that the consent of the Borrower shall be required (such consent not to
be unreasonably conditioned, withheld or delayed); provided that, no consent of the Borrower shall be required (x) in the
event a Default (after expiry of any grace, cure and notice periods or as further extended with the approval of the Required Lenders)
or an Event of Default has occurred and is continuing at the time of such participation or (y) if such participation is to a Lender,
an Affiliate of a Lender or an Approved Fund; provided, further, that the Borrower shall be deemed to have consented
to any such participation unless it shall object thereto by written notice to the Agents within ten (10) Business Days after having
received written notice thereof (which notice shall provide, in bold type face, that if the Borrower does not object in writing
to such participation within ten (10) Business Days, the Borrower’s consent shall have been deemed to have been provided).

 

(e)          Certain
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.

 

(f)           Assignments
to Borrower and Borrower Affiliates. Notwithstanding anything in this Agreement to the contrary, any Lender may, at any time,
assign all or a portion of its Loans on a pro rata basis to the Borrower or any Borrower Affiliate, subject to the following limitations:

 

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(i)          immediately
and automatically, without any further action on the part of the Borrower, any Lender, any Agent or any other Person, upon the
effectiveness of such assignment of Loans from a Lender to the Borrower, such Loans and all rights and obligations as a Lender
related thereto shall, for all purposes under this Agreement, the other Loan Documents and otherwise, be deemed to be irrevocably
prepaid, terminated, extinguished, cancelled and of no further force and effect (and which, for the avoidance of doubt, shall not
constitute voluntary or mandatory payments or prepayments for purposes of Section 2.8 hereof) and the Borrower shall neither
obtain nor have any rights as a Lender hereunder or under the other Loan Documents by virtue of such assignment such purchases
(and the payments made by the Borrower and the cancellation of the purchased Loans, in each case in connection therewith);

 

(ii)         any
Borrower Affiliate may, with the consent of the Borrower, including without limitation, in exchange for Debt or Securities permitted
to be issued, contribute, directly or indirectly, the principal amount of such Loans or any portion thereof, plus all accrued and
unpaid interest thereon, to the Borrower for the purpose of cancelling and extinguishing such Loans; provided that, upon
the date of such contribution, assignment or transfer, (x) the aggregate outstanding principal amount of Loans shall reflect such
cancellation and extinguishing of the Loans then held by the Borrower and (y) the Borrower shall promptly provide written notice
to the Agents of such contribution of such Loans, and the Administrative Agent, upon receipt of such notice, shall reflect the
cancellation of the applicable Loans in the Register;

 

(iii)        (A)
for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the purpose of any direction
to any Agent or any Lender to undertake any action (or refrain from taking any action) under, this Agreement or any other Loan
Document, each applicable Borrower Affiliate will be deemed to have consented in the same proportion as the Lenders that are not
Borrower Affiliate consented to such matter, unless such matter requires the consent of all or all affected Lenders and adversely
affects such Borrower Affiliate more than other Lenders in any material respect, (B) for purposes of voting on any plan of reorganization
or plan of liquidation pursuant to any Debtor Relief Laws (a “Bankruptcy Plan”), each Borrower Affiliate hereby
agrees (x) not to vote on such Bankruptcy Plan, (y) if such Borrower Affiliate does vote on such Bankruptcy Plan notwithstanding
the restriction in the foregoing clause (x), such vote will be deemed not to be in good faith and shall be “designated”
pursuant to Section 1126(e) of the Bankruptcy Code (or any similar provision in any other Debtor Relief Laws), and such vote shall
not be counted in determining whether the applicable class has accepted or rejected such Bankruptcy Plan in accordance with Section 1126(c)
of the Bankruptcy Code (or any similar provision in any other Debtor Relief Laws) and (z) not to contest any request by any party
for a determination by a court of competent jurisdiction effectuating the foregoing clause (y), in each case under this
clause (B) unless such Bankruptcy Plan adversely affects such Borrower Affiliate more than other Lenders in any material
respect and (C) each Borrower Affiliate hereby irrevocably appoints the Agents (such appointment being coupled with an interest)
as such Borrower Affiliate’s attorney-in-fact, with full authority in the place and stead of such Borrower Affiliate and
in the name of such Borrower Affiliate (solely in respect of Loans held by such Borrower Affiliate and not in respect of any other
claim or status such Borrower Affiliate may otherwise have), from time to time in either Agent’s discretion to take any action
and to execute any instrument that the Agents may deem reasonably necessary or appropriate to carry out the provisions of this
Section 9.1(f)(iv), including to ensure that any vote of such Borrower Affiliate on any Bankruptcy Plan is withdrawn or
otherwise not counted;

 

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(iv)        the
Borrower and any Borrower Affiliate shall represent and warrant, on the date of any such assignment, that neither it, its Affiliates
nor any of its respective directors or officers has any Excluded Information that has not been disclosed to the Lenders generally
(other than to the extent any such Lender does not wish to receive material non-public information with respect to the Borrower
or its Subsidiaries or any of their respective securities) prior to such date;

 

(v)         all
parties to the relevant transactions shall render customary “big boy” disclaimer letters; and

 

(vi)        no
Event of Default shall have occurred and be continuing before or immediately after giving effect to such assignment.

 

Article
X

 

AGENT; THE LENDER GROUP

 

10.1         Appointment
and Authorization of Agent. Effective as of the Closing Date, each Lender hereby
designates and appoints Cortland as the Administrative Agent and Collateral Agent as their representatives under this Agreement
and the other Loan Documents and each Lender hereby irrevocably authorizes each Agent to execute and deliver each of the other
Loan Documents on its behalf and to take such other action on its behalf under the provisions of this Agreement and each other
Loan Document and to exercise such powers and perform such duties as are expressly delegated to each Agent by the terms of this
Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto. The Agents agree in their
respective capacities as Administrative Agent and Collateral Agent, as applicable, to act as agent for and on behalf of the Lenders
on the express conditions contained in this Article X. The provisions of this Article X (other than Section 10.9
and Section 10.11) are solely for the benefit of the Agents, and the Lenders, and the Borrower and its Subsidiaries
shall have no rights as a third party beneficiary of any of the provisions contained herein. The Agents shall not have any duties
or responsibilities, except those expressly set forth herein, nor shall the Agents have or be deemed to have any fiduciary relationship
with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into
this Agreement or any other Loan Document or otherwise exist against the Agents; it being expressly understood and agreed that
the use of the word “Agent” is for convenience only, that the Agents are merely the representative of the Lenders,
and only has the contractual duties set forth herein. Without limiting the generality of the foregoing, the use of the term “agent”
in this Agreement or the other Loan Documents with reference to Agents is not intended to connote any fiduciary or other implied
(or express) obligations arising under agency doctrine of any applicable law. Instead, such term is used merely as a matter of
market custom, and is intended to create or reflect only a representative relationship between independent contracting parties.
Each Lender hereby further authorizes the Collateral Agent to act as the secured party under each of the Loan Documents that create
a Lien on any item of Collateral. Except as expressly otherwise provided in this Agreement, the Agents shall have and may use
their sole discretion with respect to exercising or refraining from exercising any discretionary rights or taking or refraining
from taking any actions that the Agents expressly are entitled to take or assert under or pursuant to this Agreement and the other
Loan Documents. Without limiting the generality of the foregoing, or of any other provision of the Loan Documents that provides
rights or powers to the Agents, the Lenders agree that the Agents shall have the right to exercise the following powers as long
as this Agreement remains in effect: (a) maintain, in accordance with its customary business practices, ledgers and records reflecting
the status of the Obligations, the Collateral, the Collections of the Borrower and its Subsidiaries, and related matters, (b)
execute or file any and all financing or similar statements or notices, amendments, renewals, supplements, documents, instruments,
proofs of claim, notices and other written agreements with respect to the Loan Documents, (c) make Loans, for itself (to the extent
such Agent is also a Lender) or on behalf of Lenders as provided in the Loan Documents, (d) exclusively receive, apply, and distribute
the Collections of the Borrower and its Subsidiaries as provided in the Loan Documents, (e) open and maintain such bank accounts
and cash management arrangements as the Agents deem necessary and appropriate in accordance with the Loan Documents for the foregoing
purposes with respect to the Collateral and the Collections of the Borrower and its Subsidiaries, (f) perform, exercise,
and enforce any and all other rights and remedies of the Lender Group with respect to the Borrower, the Obligations, the Collateral,
the Collections of the Borrower and its Subsidiaries, or otherwise related to any of same as provided in the Loan Documents, and
(g) incur and pay such Lender Group Expenses as the Agents may deem necessary or appropriate for the performance and fulfillment
of its functions and powers pursuant to the Loan Documents. At least three (3) Business Days prior to any Interest Payment Date
and with respect to any other payment in respect of the Loans hereunder, promptly upon receipt of a prepayment notice from the
Borrowers, the Administrative Agent shall provide the Lenders with a Payment Date Statement relating to such payment to Lenders.

 

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10.2         Delegation
of Duties. The Agents may execute any of its duties under this Agreement or any
other Loan Document by or through agents, employees or attorneys in fact and shall be entitled to advice of counsel concerning
all matters pertaining to such duties. The Agents shall not be responsible for the negligence or misconduct of any agent or attorney
in fact selected by it with reasonable care except to the extent that a court of competent jurisdiction determines in a final
and nonappealable judgment that the such Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.
In connection with perfecting its security interest in any Collateral which constitutes Instruments or certificated Pledged Securities,
for so long as Cortland is the Collateral Agent under this Agreement, it shall appoint (and maintain an agreement with) a sub-agent
who has secure and fire resistant facilities in accordance with customary standards for custody of Instruments and certificated
Pledged Securities, who shall take possession of the related Collateral and maintain it in such location for purposes of custodial
safe keeping.

 

10.3         General
Immunity. 

 

(a)          No
Responsibility for Certain Matters. No Agent shall be responsible to any Lender (or any other Secured Party) for the
execution, effectiveness, genuineness, validity, enforceability, collectability or sufficiency hereof or any other Loan
Document or for any representations, warranties, recitals or statements made herein or therein or made in any written or oral
statements or in any financial or other statements, instruments, reports or certificates or any other documents furnished or
made by any Agent to the Lenders (or any other Secured Party) or by or on behalf of any Loan Party to any Agent or any Lender
(or any other Secured Party) in connection with the Loan Documents and the transactions contemplated thereby or for the
financial condition or business affairs of any Loan Party or any other Person liable for the payment of any Obligations, nor
shall any Agent be required to ascertain or inquire as to the performance or observance of any of the terms, conditions,
provisions, covenants or agreements contained in any of the Loan Documents or as to the use of the proceeds of the Loans or
as to the existence or possible existence of any Default or Event of Default or to make any disclosures with respect to the
foregoing. Anything contained herein to the contrary notwithstanding, the Agents shall not have any liability arising from
confirmations of the amount of outstanding Loans or the component amounts thereof.

 

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(b)          Exculpatory
Provisions. No Agent-Related Person shall be liable for any action taken or omitted by any Agent under or in connection with
any of the Loan Documents except to the extent caused by such Agent’s gross negligence or willful misconduct, as determined
by a court of competent jurisdiction in a final, non-appealable order; provided, that any action taken or omitted by any
Agent at the direction of the Required Lenders (or such other Lenders as the case may be) shall not constitute gross negligence
or willful misconduct on the part of such Agent. Each Agent shall be entitled to refrain from any act or the taking of any action
(including the failure to take an action) in connection herewith or any of the other Loan Documents or from the exercise of any
power, discretion or authority vested in it hereunder or thereunder unless and until such Agent shall have received instructions
in respect thereof from Required Lenders (or such other Lenders as may be required to give such instructions under Section 11.2)
and, upon receipt of such instructions from Required Lenders (or such other Lenders, as the case may be), such Agent shall be entitled
to act or (where so instructed) refrain from acting, or to exercise such power, discretion or authority, in accordance with such
instructions. Without prejudice to the generality of the foregoing, (i) each Agent shall be entitled to rely, and shall be fully
protected in relying, upon any communication, instrument or document believed by it to be genuine and correct and to have been
signed or sent by the proper Person or Persons, and shall be entitled to rely and shall be protected in relying on opinions and
judgments of attorneys (who may be attorneys for the Loan Parties), accountants, experts and other professional advisors selected
by it; and (ii) no party hereto shall have any right of action whatsoever against any Agent in such capacity as a result of such
Agent in such capacity acting or (where so instructed) refraining from acting hereunder or any of the other Loan Documents in accordance
with the instructions of Required Lenders (or such other Lenders as may be required to give such instructions under Section
11.2).

 

10.4         Reliance
by Agent. The Agents shall be fully justified in failing or refusing to take any
action under this Agreement or any other Loan Document unless Agent shall first receive such advice or concurrence of the Lenders
as it deems appropriate and until such instructions are received, the Agents shall act, or refrain from acting, as it deems advisable.
If an Agent so requests, it shall first be indemnified to its reasonable satisfaction by the Lenders against any and all liability
and expense that may be incurred by it by reason of taking or continuing to take any such action. The Agents shall in all cases
be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with
a request or consent of the requisite Lenders and such request or consent 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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10.5         Knowledge
of Defaults/Events of Default. The Agents shall not be deemed to have knowledge
or notice of the occurrence of any Default and/or Event of Default, unless the Agents shall have received written notice from
a Lender or the Borrower referring to this Agreement, describing such Default or Event of Default and stating that such notice
is a “notice of default.” The Administrative Agent will notify the Lenders of its receipt of any such notice. The
Agents shall take such action with respect to such Default and/or Event of Default in accordance with Article VII; provided
that, unless and until the Agents have received any such direction, the Agents (but shall not be obligated to) take any action,
or refrain from taking any action, with respect to such Default and/or Event of Default as it shall deem advisable or in the best
interest of the Lenders.

 

10.6         Credit
Decision. Each Lender acknowledges that none of the Agent-Related Persons has made
any representation or warranty to it, and that no act by any Agent hereinafter taken, including any review of the affairs of the
Borrower and its Subsidiaries or Affiliates, shall be deemed to constitute any representation or warranty by any Agent-Related
Person to any Lender. Each Lender represents to the Agents that it has, independently and without reliance upon any Agent-Related
Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into
the business, prospects, operations, property, financial and other condition and creditworthiness of the Borrower and any other
Person party to a Loan Document, and all applicable bank regulatory laws relating to the transactions contemplated hereby, and
made its own decision to enter into this Agreement and to extend credit to the Borrower. Each Lender also represents that it will,
independently and without reliance upon any Agent-Related Person and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under
this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the
business, prospects, operations, property, financial and other condition and creditworthiness of the Borrower and any other Person
party to a Loan Document. Except for notices, reports, and other documents expressly herein required to be furnished to the Lenders
by the Agents, the Agents shall not have any duty or responsibility to provide any Lender with any credit or other information
concerning the business, prospects, operations, property, financial and other condition or creditworthiness of the Borrower and
any other Person party to a Loan Document that may come into the possession of any of the Agent-Related Persons.

 

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10.7         Costs
and Expenses; Indemnification. The Agents may incur and pay Lender Group Expenses
to the extent such Agent reasonably deems necessary or appropriate for the performance and fulfillment of its functions, powers,
and obligations pursuant to the Loan Documents, including court costs, attorneys’ fees and expenses, fees and expenses of
financial accountants, advisors, consultants, and appraisers, costs of collection by outside collection agencies, auctioneer fees
and expenses, and costs of security guards or insurance premiums paid to maintain the Collateral, whether or not Borrower is obligated
to reimburse the Agents or Lenders for such expenses pursuant to this Agreement or otherwise. The Agents are authorized and directed
to deduct and retain sufficient amounts from the Collections of the Borrower and its Subsidiaries received by the Agents to reimburse
the Agents for such out-of-pocket costs and expenses prior to the distribution of any amounts to Lenders. In the event the Agents
are not reimbursed for such costs and expenses by the Borrower or from the Collections of the Borrower and its Subsidiaries received
by the Agents, each Lender hereby agrees that it is and shall be obligated to pay to or reimburse the Agents for the amount of
such Lender’s Pro Rata Share thereof. Whether or not the transactions contemplated hereby are consummated, the Lenders shall
indemnify upon demand the Agent-Related Persons (to the extent not reimbursed by or on behalf of the Borrower and without limiting
the obligation of the Borrower to do so), according to their Pro Rata Shares, from and against, and the Lenders shall hold each
Agent-Related Person harmless from, any and all Indemnified Liabilities; provided, however, that no Lender shall be liable
for the payment to any Agent-Related Person of any portion of such Indemnified Liabilities resulting solely from such Person’s
gross negligence or willful misconduct nor shall any Lender be liable for the obligations of any Defaulting Lender in failing
to make a Loan or other extension of credit hereunder. Without limitation of the foregoing, each Lender shall reimburse the Agents
upon demand for such Lender’s Pro Rata Share of any costs or out of pocket expenses (including attorneys, accountants, advisors,
and consultants fees and expenses) incurred by any Agent in connection with the preparation, execution, delivery, administration,
modification, amendment, or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in
respect of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred
to herein, to the extent that any Agent is not reimbursed for such expenses by or on behalf of the Borrower; provided,
however, that following the occurrence and continuance of an Event of Default, to the extent the Agents seek to take an
action which will cause them to incur a cost or expense in excess of $10,000, the Agents shall promptly seek prior written consent
of the Required Lenders with respect to such action. The undertaking in this Section shall survive the payment of all Obligations
hereunder and the resignation or replacement of any Agent.

 

10.8         Agent
in Individual Capacity. The Agents and their Affiliates may make loans to, accept
deposits from, acquire Securities in, and generally engage in any kind of banking, trust, financial advisory, underwriting, or
other business with Borrower and its Subsidiaries and Affiliates and any other Person party to any Loan Documents as though the
Agents were not Agents hereunder, and, in each case, without notice to or consent of the other members of the Lender Group. The
other members of the Lender Group acknowledge that, pursuant to such activities, the Agents or their Affiliates may receive information
regarding Borrower or its Affiliates or Borrower’s external manager and its Affiliates and any other Person party to any
Loan Documents that is subject to confidentiality obligations in favor of the Borrower or such other Person and that prohibit
the disclosure of such information to the Lenders, and the Lenders acknowledge that, in such circumstances (and in the absence
of a waiver of such confidentiality obligations, which waiver the Agents will use commercially reasonable efforts to obtain),
the Agents shall not be under any obligation to provide such information to them. The terms “Lender” and “Lenders”
include each Agent in its individual capacity.

 

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10.9         Successor
Agent. 

 

(a)          Any
Agent may at any time give notice of its resignation to the Lenders and the Borrower. At any time, the Agent may be removed by
the Required Lenders or the Borrower, upon thirty (30) days’ prior written notice to such Agent, the Lenders and the Borrower.
Upon receipt of any such notice of resignation or removal, the Required Lenders shall have the right, in consultation with the
Borrower, to appoint a successor Agent for the Lenders. In connection with a resignation, 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 Agent
gives notice of its resignation (or such earlier date as may be agreed by the Required Lenders) (the “Resignation Effective
Date”), then the retiring Agent may (but shall not be obligated to), on behalf of the Lenders, appoint a successor Agent
meeting the qualifications set forth above; provided that in no event shall any such successor 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. Upon the occurrence of a Removal Event, an Agent may be removed upon five (5) Business Days’ prior written
notice by the Required Lenders or the Borrower, delivered to such Agent, the Lenders and the Borrower; provided, however,
that, such removal shall not be effective until a successor Agent acceptable to the Required Lenders has been selected; provided,
further, that if no such successor Agent has been appointed within thirty (30) days of such removal, the Required Lenders
or the Borrower may petition any court of competent jurisdiction for the appointment of a successor Agent.

 

(b)          If
the Person serving as Agent is a Defaulting Lender pursuant to clause (d) of the definition thereof, the Required Lenders may,
to the extent permitted by applicable law, by notice in writing to the Borrower and such Person remove such Person as Agent and,
in consultation with the Borrower, appoint a successor. If no such successor shall have been so appointed by the Required Lenders
and shall have accepted such appointment within thirty (30) days (or such earlier day as shall be agreed by the Required Lenders)
(the “Removal Effective Date”), then such removal shall nonetheless become effective in accordance with such
notice on the Removal Effective Date.

 

(c)          With
effect from the Resignation Effective Date or the Removal Effective Date (as applicable) (i) the retiring or removed Agent shall
be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral
security held by the Collateral Agent on behalf of the Lenders under any of the Loan Documents, the retiring or removed Collateral
Agent shall continue to hold such collateral security until such time as a successor Collateral Agent is appointed) and (ii) except
for any indemnity payments owed to the retiring or removed Agent, all payments, communications and determinations provided to be
made by, to or through the Agent shall instead be made by or to each Lender directly, until such time, if any, as the Required
Lenders appoint a successor Agent as provided for above. Upon the acceptance of a successor’s appointment as an Agent hereunder,
such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed
Agent (other than any rights to indemnity payments owed to the retiring or removed Agent), and the retiring or removed Agent shall
be discharged from all of its duties and obligations hereunder or under the other Loan Documents. The fees payable by the Borrower
to a successor Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such
successor. After the retiring or removed Agent’s resignation or removal hereunder and under the other Loan Documents, the
provisions of this Article X and Section 8.1 shall continue in effect for the benefit of such retiring or removed
Agent, its sub-agents and their respective Agent-Related Persons in respect of any actions taken or omitted to be taken by any
of them while the retiring or removed Agent was acting as Agent.

 

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10.10       Lender
in Individual Capacity. Any Lender and its respective Affiliates may make loans
to, accept deposits from, acquire Securities in and generally engage in any kind of banking, trust, financial advisory, underwriting,
or other business with Borrower and its Subsidiaries and Affiliates and any other Person party to any Loan Documents as though
such Lender were not a Lender hereunder without notice to or consent of the other members of the Lender Group. The other members
of the Lender Group acknowledge that, pursuant to such activities, such Lender and its respective Affiliates may receive information
regarding Borrower or its Affiliates or Borrower’s external manager and its Affiliates and any other Person party to any
Loan Documents that is subject to confidentiality obligations in favor of the Borrower or such other Person and that prohibit
the disclosure of such information to the Lenders, and the Lenders acknowledge that, in such circumstances (and in the absence
of a waiver of such confidentiality obligations, which waiver such Lender will use commercially reasonable efforts to obtain),
such Lender shall not be under any obligation to provide such information to them.

 

10.11       Withholding
Taxes.

 

(a)          Any
and all payments made by the Borrower hereunder or under any note or other Loan Document will be made free and clear of, and without
deduction or withholding for, any present or future 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 Borrower 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. The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law,
or at the option of the Administrative Agent timely reimburse it for the payment of any Other Taxes. The Borrower will furnish
to the Administrative Agent as soon as practicable after the date the payment of any Tax is due pursuant to applicable law certified
copies of tax receipts issued by the applicable Governmental Authority evidencing such payment of such Tax by the Borrower, a
copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.
The Borrower shall indemnify each Recipient, within ten (10) days after demand therefor, for the full amount of any Indemnified
Taxes (including Indemnified Taxes imposed or asserted on or attributable to an amount payable under this Section 10.11),
payable or paid by such Recipient or required to be withheld or deducted from a payment to 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 Borrower
by a Lender (with a copy to the Administrative Agent), or by an Agent on its own behalf or on behalf of a Lender, shall be conclusive
absent manifest error. For purposes of this Section 10.11, the term “applicable law” includes FATCA.

 

(b)          Each
Agent shall deliver to the Borrower a properly completed and executed IRS Form W-9 on or prior to the date it becomes an Agent
under this Agreement and at any other time reasonably requested by the Administrative Agent or the Borrower. If a Lender is entitled
to claim an exemption from, or reduction of, United States withholding tax, Lender agrees with and in favor of the Administrative
Agent and the Borrower, to deliver to the Administrative Agent whichever of the following is applicable:

 

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(i)          if
such Lender claims an exemption from United States federal withholding tax pursuant to the portfolio interest exception under Section
881(c) of the Code, (A) a statement of the Lender, signed under penalty of perjury, that it is not (I) a “bank” as
described in Section 881(c)(3)(A) of the Code, (II) a 10.0% shareholder of the Borrower (within the meaning of Section 881(c)(3)(B)
of the Code), or (III) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code, and (B) a
properly completed and executed IRS Form W-8BEN or W-8BEN-E (or successor form), as applicable, on or prior to the date it becomes
a Lender under this Agreement and at any other time reasonably requested by Administrative Agent or the Borrower;

 

(ii)         if
such Lender claims an exemption from, or a reduction of, withholding tax under an income tax treaty to which the United States
is a party, two properly completed and executed copies of IRS Form W-8BEN or W-8BEN-E (or successor form), as applicable, on or
prior to the date it becomes a Lender under this Agreement and at any other time reasonably requested by the Administrative Agent
or the Borrower;

 

(iii)        if
such Lender claims that interest paid under this Agreement is exempt from United States withholding tax because it is effectively
connected with a United States trade or business of such Lender, two properly completed and executed copies of IRS Form W-8ECI
(or successor form) (together with applicable attachments) on or prior to the date it becomes a Lender under this Agreement and
at any other time reasonably requested by the Administrative Agent or the Borrower;

 

(iv)        two
properly completed and executed copies of IRS Form W-8IMY (or successor form) (together with the relevant documentation under this
Section 10.11(b) and/or any other certification documents from each beneficial owner, as applicable) on or prior to
the date it becomes a Lender under this Agreement and at any other time reasonably requested by the Administrative Agent or the
Borrower; or

 

(v)         such
other form or forms, including IRS Form W-9 (or successor form), as may be required under the Code or other laws of the United
States as a condition to exemption from, or reduction of, United States withholding or backup withholding tax on or prior to the
date it becomes a Lender under this Agreement and at any other time reasonably requested by the Administrative Agent or the Borrower.

 

Each Agent and each such
Lender agree to promptly notify, in writing, the Administrative Agent and the Borrower of any change in circumstances which would
modify or render invalid any claimed exemption or reduction. Each Agent and each such Lender agree to update any expired, obsolete
or inaccurate form provided pursuant to Section 10.11(b), (c) or (g) or to promptly notify the Borrower and
the Administrative Agent in writing of its legal inability to do so.

 

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(c)          If
an Agent or a Lender is entitled to an exemption from, or reduction of, withholding tax in a jurisdiction other than the United
States or backup withholding, such Agent or such Lender agrees with and in favor of the Administrative Agent and the Borrower to
deliver to the Administrative Agent any such form or forms as may be required as a condition to exemption from, or reduction of,
foreign withholding or backup withholding tax on or prior to the date it becomes an Agent or a Lender under this Agreement and
at any other time reasonably requested by the Administrative Agent or the Borrower.

 

Each Agent and each such
Lender agrees promptly to notify, in writing, the Administrative Agent and the Borrower of any change in circumstances which would
modify or render invalid any claimed exemption or reduction.

 

(d)          If
any Lender claims exemption from, or reduction of, withholding tax and such Lender sells, assigns, grants a participation in, or
otherwise transfers all or part of the Obligations of the Borrower, such Lender agrees to notify the Administrative Agent and the
Borrower of the percentage amount in which it is no longer the beneficial owner of Obligations of the Borrower. To the extent of
such percentage amount, the Administrative Agent and the Borrower will treat such Lender’s documentation provided pursuant
to Sections 10.11(b), 10.11(c) or 10.11(g) as no longer valid. With respect to such percentage amount, such
Lender may provide new documentation, pursuant to Sections 10.11(b), 10.11(c) or 10.11(g), if applicable.

 

(e)          If
any Lender is entitled to a reduction in the applicable withholding tax, the Administrative Agent may withhold from any payment
to such Lender an amount equivalent to the applicable withholding tax after taking into account such reduction. If the forms or
other documentation required by subsection (b), (c) or (g) of this Section 10.11 are not delivered
to the Administrative Agent, then the Administrative Agent may withhold from any payment to such Lender not providing such forms
or other documentation an amount equivalent to the applicable withholding tax.

 

(f)           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 this Section 10.11 (including by the payment of additional amounts pursuant to this Section 10.11),
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 10.11 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 paragraph (f) (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 paragraph (f), in no event will the indemnified party be required to pay any amount to an indemnifying
party pursuant to this paragraph (f) 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 amounts with respect to such Tax had never
been paid. This paragraph 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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(g)          If
a payment made to a Lender under any Loan 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 Borrower and the Administrative Agent at the time or times prescribed
by law and at such time or times reasonably requested by the Borrower 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 Borrower or the Administrative Agent as may be necessary for the Borrower 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 Section 10.11(g), “FATCA”
shall include any amendments made to FATCA after the date of this Agreement.

 

(h)          Each
party’s obligations under this Section 10.11 shall survive the resignation or replacement of the Agents 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 Loan Document.

 

10.12       Collateral
and Guarantor Matters.

 

(a)          The
Lenders hereby irrevocably authorize the Collateral Agent to, and the Collateral Agent shall:

 

(i)          release
any Lien and/or negative pledge granted pursuant to the Negative Pledge Agreement, as applicable, on any Asset (including, for
the avoidance of doubt, the Proceeds of such Asset) upon the termination of the Commitments and payment and satisfaction in full
by the Borrower of all Obligations;

 

(ii)         release
any Lien and/or negative pledge granted pursuant to the Negative Pledge Agreement, as applicable, on any Asset (including, for
the avoidance of doubt, the Proceeds of such Asset), including any Subsidiary of the Borrower:

 

(A)         (x)
in contemplation of the incurrence, assumption or purchase of Debt pursuant to Section 6.1 (and the imposition of a Permitted
Lien pursuant to Section 6.2) if the Borrower certifies to the Collateral Agent that such Debt is contemplated to be incurred
within fifteen (15) days of the delivery of such certificate (the “Permitted Debt Certificate”) or (y) in connection
with the incurrence, assumption or purchase of Debt pursuant to Section 6.1 (and the imposition of a Permitted Lien pursuant
to Section 6.2), in each case on such terms (including, for the avoidance of doubt, in respect to the priority of such Liens
granted, in each case in connection with the incurrence, assumption or purchase of such Debt) as is reasonably satisfactory to
the party incurring, assuming or acquiring such Debt and the lender of any such Debt; provided however, if, in the event
the Borrower or any of its Subsidiaries does not incur Debt contemplated by subclause (x) of this clause (A) within
fifteen (15) days of the delivery of the Permitted Debt Certificate, any Lien and/or negative pledge that was released by the Collateral
Agent in connection with such Permitted Debt Certificate shall be reinstated with respect to such released Collateral and such
Grantor shall deliver such additional pledge and security documents as the Collateral Agent may reasonably request in order to
give effect to such reinstatement; or

 

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(B)         that
is being sold by any Loan Party, any Grantor or any Negative Pledgor if the Borrower certifies to the Collateral Agent that the
Sale is permitted under Section 6.6 of this Agreement or the other Loan Documents (and the Collateral Agent may rely conclusively
on any such certificate, without further inquiry); or

 

(iii)        release
any Guarantor, Negative Pledgor or Grantor from its obligations hereunder if the Borrower certifies to the Collateral Agent that
such Guarantor, Negative Pledgor or Grantor is being sold pursuant to a Sale that is permitted under Section 6.6 of this
Agreement or the other Loan Documents (and the Collateral Agent may rely conclusively on any such certificate, without further
inquiry).

 

(b)          Upon
the occurrence of any event set forth in clause (a) above, (i) each applicable Asset (including, for the avoidance
of doubt, the Proceeds of such Asset) shall automatically, and without further action, be released as Collateral for all purposes
under the Loan Documents; provided however, if, in the event the Borrower or any of its Subsidiaries does not incur Debt
contemplated by clause (a)(ii)(A)(x) above within fifteen (15) days of the delivery of the Permitted Debt Certificate, any
Collateral that was released shall be reinstated with respect to such released Collateral and such Grantor shall deliver such additional
pledge and security documents as the Collateral Agent may reasonably request in order to give effect to such reinstatement and
(ii) upon the request, and at the expense of the Borrower, the Agents agree, as applicable, to execute and deliver such release
documents and take such other actions to acknowledge, evidence or complete any such release of such Asset or Person as may be reasonably
requested by the Borrower or any of its Subsidiaries; provided, however, that upon request by the Collateral Agent
or the Borrower or any of its Subsidiaries at any time, the Lenders will confirm in writing the Collateral Agent’s authority
to release any such Liens and/or negative pledges granted pursuant to the Negative Pledge Agreement, as applicable, on particular
types or items of Assets (including, for the avoidance of doubt, the Proceeds of such Asset) pursuant to this Section 10.12;
provided, further, that (1) the Collateral Agent shall not be required to execute any document necessary to evidence
such release on terms that, in the Collateral Agent’s opinion, would expose the Collateral Agent to liability or create any
obligation or entail any consequence other than the release of such Lien without recourse, representation, or warranty, and (2)
such release shall not in any manner discharge, affect, or impair the Obligations or any Liens (other than those expressly being
released) upon (or obligations of the Borrower or any of its Subsidiaries in respect of) all interests retained by the Borrower
or any of its Subsidiaries, including, the proceeds of any sale, all of which shall continue to constitute part of the Collateral.

 

    	 	- 90 -	 

     

    

 

(c)          The
Agents shall have no obligation whatsoever to any of the Lenders to assure that the Collateral exists or is owned by the Borrower
or is cared for, protected, or insured or has been encumbered, or that the Collateral Agent’s Liens have been properly or
sufficiently or lawfully created, perfected, protected, or enforced or are entitled to any particular priority, or to exercise
at all or in any particular manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the rights,
authorities and powers granted or available to the Agents pursuant to any of the Loan Documents, it being understood and agreed
that in respect of the Collateral, or any act, omission, or event related thereto, subject to the terms and conditions contained
herein, the Agents may act in any manner it may deem appropriate, in its sole discretion given the Collateral Agent’s own
interest in the Collateral in its capacity as a Secured Party and that the Agents shall have no other duty or liability whatsoever
to any Lender as to any of the foregoing, except as otherwise provided herein.

 

10.13       Restrictions
on Actions by Lenders; Sharing of Payments.

 

(a)          Each
of the Lenders agrees that it shall not, until an Event of Default has occurred and is continuing, without the express written
consent of the Agents, and that it shall, to the extent it is lawfully entitled to do so, upon the written request of the Agents,
set off against the Obligations, any amounts owing by such Lender to the Borrower or any deposit accounts of the Borrower now or
hereafter maintained with such Lender. Each of the Lenders further agrees that it shall not, unless specifically requested to do
so in writing by the Agents (which request shall not be made by the Agents unless an Event of Default has occurred and is continuing),
take or cause to be taken any action, including, the commencement of any legal or equitable proceedings, to foreclose any Lien
on, or otherwise enforce any security interest in, any of the Collateral.

 

(b)          If,
at any time or times any Lender shall receive (i) by payment, foreclosure, setoff, or otherwise, any Proceeds of Collateral or
any payments with respect to the Obligations, except for any such proceeds or payments received by such Lender from the Agents
pursuant to the terms of this Agreement, or (ii) payments from the Agents in excess of such Lender’s ratable portion of all
such distributions by the Agents, such Lender promptly shall (1) turn the same over to the Agents, in kind, and with such
endorsements as may be required to negotiate the same to the Agents, or in immediately available funds, as applicable, for the
account of all of the Lenders and for application to the Obligations in accordance with the applicable provisions of this Agreement,
or (2) purchase, without recourse or warranty, an undivided interest and participation in the Obligations owed to the other Lenders
so that such excess payment received shall be applied ratably as among the Lenders in accordance with their Pro Rata Shares; provided,
however, that to the extent that such excess payment received by the purchasing party is thereafter recovered from it, those
purchases of participations shall be rescinded in whole or in part, as applicable, and the applicable portion of the purchase price
paid therefor shall be returned to such purchasing party, but without interest except to the extent that such purchasing party
is required to pay interest in connection with the recovery of the excess payment.

 

10.14       Agency
for Perfection. The Collateral Agent hereby appoints the Administrative Agent and
each other Lender as its agent (and the Administrative Agent and each Lender hereby accepts such appointment) for the purpose
of perfecting the Collateral Agent’s Liens in assets which, in accordance with Article 8 or Article 9, as applicable, of
the UCC can be perfected only by possession or control. Should any Lender obtain possession or control of any such Collateral,
such Lender shall notify the Agents thereof in writing, and, promptly upon either Agent’s request therefor shall deliver
possession or control of such Collateral to the Collateral Agent or in accordance with either Agent’s instructions.

 

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10.15       Payments
by Agent to the Lenders. All payments to be made by the Agents to the Lenders shall
be made by bank wire transfer of immediately available funds pursuant to such wire transfer instructions as each party may designate
for itself by written notice to the Agents.

 

10.16       Concerning
the Collateral and Related Loan Documents. Each member of the Lender Group authorizes
and directs the Agents to enter into this Agreement and the other Loan Documents. Each member of the Lender Group agrees that
any action taken by the Agents in accordance with the terms of this Agreement or the other Loan Documents relating to the Collateral
and the exercise by the Agents of their powers set forth therein or herein, together with such other powers that are reasonably
incidental thereto, shall be binding upon all of the Lenders.

 

10.17       Field
Examinations and Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information.
By becoming a party to this Agreement, each Lender:

 

(a)          is
deemed to have requested that the Agents furnish such Lender, promptly after it becomes available, (i) a copy of each field examination
or examination report prepared by the Agents, and (ii) a copy of each document delivered to the Agents pursuant to Sections
5.3(a), (b) and (c) (each a “Report” and collectively, “Reports”), and
the Agents shall so furnish each Lender with such Reports,

 

(b)          expressly
agrees and acknowledges that the Agents do not (i) make any representation or warranty as to the accuracy of any Report, and (ii)
shall not be liable for any information contained in any Report,

 

(c)          expressly
agrees and acknowledges that the Reports are not comprehensive audits or examinations, that the Agents or other party performing
any examination will inspect only specific information regarding Borrower and will rely significantly upon the books of the Borrower
and the other Loan Parties, as well as on representations of the Borrower’s personnel,

 

(d)          agrees
to keep all Reports and other material, non-public information regarding Borrower and its Subsidiaries and their operations, assets,
and existing and contemplated business plans in a confidential manner in accordance with Section 11.12, and

 

(e)          without
limiting the generality of any other indemnification provision contained in this Agreement, agrees: (i) to hold any Agent and any
other Lender preparing a Report harmless from any action the indemnifying Lender may take or fail to take or any conclusion the
indemnifying Lender may reach or draw from any Report in connection with any loans or other credit accommodations that the indemnifying
Lender has made or may make to the Borrower, or the indemnifying Lender’s participation in, or the indemnifying Lender’s
purchase of, a loan or loans of the Borrower, and (ii) to pay and protect, and indemnify, defend and hold any Agent, and any such
other Lender preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other
amounts (including, attorneys’ fees and costs) incurred by any Agent and any such other Lender preparing a Report as the
direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender.

 

    	 	- 92 -	 

     

    

 

In addition to the foregoing:
(x) any Lender may from time to time request of the Agent in writing that the Agents provide to such Lender a copy of any report
or document provided by the Borrower to the Agents that has not been contemporaneously provided by the Borrower to such Lender,
and, upon receipt of such request, the Agents promptly shall provide a copy of same to such Lender, (y) to the extent that the
Agents are entitled, under any provision of the Loan Documents, to request additional reports or information from Borrower, any
Lender may, from time to time, reasonably request the Agents to exercise such right as specified in such Lender’s notice
to the Agents, whereupon the Agents promptly shall request of the Borrower the additional reports or information reasonably specified
by such Lender, and, upon receipt thereof from Borrower, the Agents promptly shall provide a copy of same to such Lender, and (z)
any time that the Administrative Agent renders to the Borrower a statement regarding the Loan Account, the Administrative Agent
shall send a copy of such statement to each Lender.

 

10.18       Several
Obligations; No Liability. Notwithstanding that certain of the Loan Documents now
or hereafter may have been or will be executed only by or in favor of the Agents in its capacity as such, and not by or in favor
of the Lenders, any and all obligations on the part of any Agent to make any credit available hereunder shall constitute the several
(and not joint) obligations of the respective Lenders on a ratable basis, according to their respective Commitments, to make an
amount of such credit not to exceed, in principal amount, at any one time outstanding, the amount of their respective Commitments.
Nothing contained herein shall confer upon any Lender any interest in, or subject any Lender to any liability for, or in respect
of, the business, assets, profits, losses, or liabilities of any other Lender. Each Lender shall be solely responsible for notifying
its Participants of any matters relating to the Loan Documents to the extent any such notice may be required, and no Lender shall
have any obligation, duty, or liability to any Participant of any other Lender. Except as provided in Section 10.7, no
member of the Lender Group shall have any liability for the acts of any other member of the Lender Group. No Lender shall be responsible
to the Borrower or any other Person for any failure by any other Lender to fulfill its obligations to make credit available hereunder,
nor to take any other action on its behalf hereunder or in connection with the financing contemplated herein.

 

10.19       [Reserved].

 

10.20       Representations
and Warranties of each Agent. Each Agent makes the following representations and
warranties as of the Closing Date:

 

(a)          It
is duly organized and existing under the laws of the jurisdiction of its organization with full power and authority to execute
and deliver this Agreement and to perform all of the duties and obligations to be performed by it hereunder;

 

(b)          This
Agreement will be, legally and validly entered into by such Agent, does not, and will not, violate any ordinance, charter, by-law,
rule or statute applicable to it, and is enforceable against such Agent in accordance with its terms, except as may be limited
by bankruptcy, insolvency or similar laws, or by equitable principles relating to or limiting creditors’ rights generally;
and

 

    	 	- 93 -	 

     

    

 

(c)          The
person executing this Agreement on such Agent’s behalf has been duly and properly authorized to do so.

 

Article
XI

MISCELLANEOUS

 

11.1         No
Waivers, Remedies. No failure or delay on the part of any Agent or any Lender,
or the holder of any interest in this Agreement in exercising any right, power, privilege, or remedy under this Agreement or any
of the other Loan Documents shall impair or operate as a waiver thereof, nor shall any single or partial exercise of any such
right, power, privilege, or remedy preclude any other or further exercise thereof or the exercise of any other right, power, privilege,
or remedy. The waiver of any such right, power, privilege, or remedy with respect to particular facts and circumstances shall
not be deemed to be a waiver with respect to other facts and circumstances. The remedies provided for under this Agreement or
the other Loan Documents are cumulative and are not exclusive of any remedies that may be available to any Agent or any Lender,
or the holder of any interest in this Agreement at law, in equity, or otherwise.

 

11.2         Waivers
and Amendments. No amendment or waiver of any provision of this Agreement or any
other Loan Document, and no consent with respect to any departure by the Borrower therefrom, shall be effective unless the same
shall be in writing and signed by the Administrative Agent, Required Lenders (or by the Agents at the written request of the Required
Lenders) and the Borrower and then any such waiver or consent shall be effective, but only in the specific instance and for the
specific purpose for which given; provided, however, that no such waiver, amendment, or consent shall:

 

(a)          postpone
or delay any date fixed by this Agreement or any other Loan Document for any payment of principal, interest, fees, or other amounts
due hereunder or under any other Loan Document, without the prior written consent of each Lender directly and adversely affected
thereby,

 

(b)          reduce
the principal of, or the rate of interest on, or the Yield Maintenance Premium, if any, any Loan or other extension of credit hereunder,
or reduce any fees or other amounts payable hereunder or under any other Loan Document, without the prior written consent of each
Lender directly and adversely affected thereby,

 

(c)          change
the Pro Rata Share that is required to take any action hereunder, without the prior written consent of each Lender,

 

(d)          amend
or modify this Section or any provision of the Agreement providing for consent or other action by all Lenders, without the prior
written consent of each Lender,

 

    	 	- 94 -	 

     

    

 

(e)          other
than as permitted by Section 10.12, release the Collateral Agent’s Lien in and to any of the Collateral, without the
prior written consent of each Lender,

 

(f)           change
the definition of “Required Lenders” or “Pro Rata Share”, without the prior written consent of each Lender,

 

(g)          other
than as permitted by Section 10.12, release any Loan Party from any obligation for the payment of money, without the prior
written consent of each Lender, or

 

(h)          amend
any of the provisions of Article X, without the prior written consent of each Lender.

 

and, provided further, however,
that no amendment, waiver or consent shall, unless in writing and signed by the Agents, affect the rights or duties of the Agents
under this Agreement or any other Loan Document.

 

Notwithstanding the foregoing,
no amendment, termination or waiver of any provision of the Loan Documents, or consent to any departure by any Loan Party therefrom,
shall be made other than by a solicitation of all Lenders, in a manner that treats all Lenders in the same manner, and that requires
that any consent fee or other consideration payable in connection therewith be payable ratably to all Lenders who consent to the
requested amendment, termination, waiver or consent.

 

If, in connection with
any proposed amendment, waiver or consent requiring the consent of “each Lender” or “each Lender directly affected
thereby,” the consent of the Required Lenders is obtained, but the consent of other necessary Lenders is not obtained (any
such Lender whose consent is necessary but not obtained being referred to herein as a “Non-Consenting Lender”),
then the Borrower may at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender
to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required
by, Section 9.1), all of its interests, rights (other than its existing rights to payments pursuant to Section 2.11
or Section 10.11) and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall
assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that:

 

(i)          the
Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in Section 9.1(b)(iv);

 

(ii)         such
Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued
fees and all other amounts payable to it hereunder and under the other Loan Documents from the assignee (to the extent of such
outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

 

(iii)        in
the case of any such assignment resulting from a claim for compensation under Section 2.11 or payments required to be made
pursuant to Section 10.11, such assignment will result in a reduction in such compensation or payments thereafter;

 

    	 	- 95 -	 

     

    

 

(iv)        such
assignment does not conflict with applicable law; and

 

(v)         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.

 

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 Borrower to require such assignment and delegation cease to apply.

 

11.3         Notices.
Except as otherwise provided herein, all notices, demands, instructions, requests, and other communications required or permitted
to be given to, or made upon, any party hereto shall be in writing and shall be delivered or sent by registered or certified mail,
postage prepaid, return receipt requested, or by courier or electronic mail (at such email addresses as a party may designate
in accordance herewith) and shall be deemed to be given for purposes of this Agreement on the day that such writing is received
by the Person to whom it is to be sent pursuant to the provisions of this Agreement. Unless otherwise specified in a notice sent
or delivered in accordance with the foregoing provisions of this Section 11.3, notices, demands, requests, instructions,
and other communications in writing shall be given to or made upon the respective parties hereto at their respective addresses
indicated on Exhibit 11.3 attached hereto.

 

11.4         Release
of Borrowing Base Eligible Assets. Upon receipt by the Agents of a written notice
from the Borrower at least five (5) Business Days prior to the date that the Borrower wishes to remove an Asset from the pool
of Borrowing Base Eligible Assets (including but not limited to pursuant to Section 10.12 hereof), for all purposes herein,
such Asset shall be removed from the pool of Borrowing Base Eligible Assets for all purposes hereunder upon satisfaction of the
following:

 

(a)          the
Borrower shall deliver to the Agents a description of the relevant Asset to be removed;

 

(b)          the
Borrower shall deliver to the Agents a certificate of a Responsible Officer certifying that on a pro forma basis after giving effect
to such removal, the Borrower is in compliance with the financial covenants set forth in Section 6.12; and

 

(c)          no
Default or Event of Default shall exist or would be caused by releasing such Asset.

 

11.5         Valuation
Confirmation Process. Notwithstanding the foregoing, the Borrower may, at any time,
at Borrower’s expense, retain the Initial Valuation Agent to undertake a valuation report (the “Valuation Report”)
with respect to any Borrowing Base Eligible Asset, which in the case of a Mortgage Asset, shall mean the value of the underlying
mortgaged property set forth in an updated appraisal provided by the Initial Valuation Agent (the Assigned Value in such Valuation
Report, the “Initial Valuation”).

 

    	 	- 96 -	 

     

    

 

(a)          Following
the receipt by the Borrower of a Valuation Report (and delivery of a copy thereof to the Agents), the Assigned Value in respect
of the relevant Borrowing Base Eligible Asset for the purposes of clause (b) of the definition of “Assigned Value”
shall be calculated based on the amount of the Initial Valuation (in each case, in accordance with the definition of Assigned Value),
unless the Required Agents notify the Borrower in writing (the “Initial Dispute Notice”) within five (5) Business
Days following receipt of such Valuation Report that the Required Agents dispute the Initial Valuation.

 

(b)          If
the Required Lenders, in good faith, dispute the Initial Valuation as set forth in Section 11.5(a) above, the Borrower and
the Required Lenders shall enter into good faith negotiations for two (2) Business Days to agree upon an amount that shall be used
as the Assigned Value for the relevant Borrowing Base Eligible Asset.

 

(c)          If
the Borrower and the Required Lenders cannot agree upon such amount, the Borrower and the Required Lenders, at Borrower’s
expense, shall retain the Second Valuation Agent to undertake a valuation report with respect to the Borrowing Base Eligible Asset,
which in the case of a Mortgage Asset, shall mean the value of the underlying mortgaged property set forth in an updated appraisal
provided by the Second Valuation Agent (the Assigned Value in such additional valuation report, the “Second Valuation”).
Following the receipt by the Borrower of such additional valuation report (and delivery of a copy thereof to the Agents) and if
the amount of the Second Valuation is no more than 10.0% greater or lesser than the amount of the Initial Valuation, the Assigned
Value in respect of the relevant Borrowing Base Eligible Asset for the purposes of clause (b) of the definition of “Assigned
Value” shall be the amount equal to the average of the Initial Valuation and the Second Valuation.

 

(d)          If
the Second Valuation is more than 10.0% greater or lesser than the amount of the Initial Valuation and either (i) the Required
Agents notify the Borrower in writing within five (5) Business Days following receipt of such additional valuation report that
the Required Lenders dispute the Second Valuation or (ii) the Borrower notifies the Agents in writing within five (5) Business
Days following receipt of such additional valuation report that it disputes the Second Valuation, the Borrower shall retain, at
Borrower’s expense, the Third Valuation Agent that is acceptable to the Required Lenders to undertake a valuation report
with respect to the Borrowing Base Eligible Asset, which in the case of a Mortgage Asset, shall mean the value of the underlying
mortgaged property set forth in an updated appraisal provided by the Third Valuation Agent (the Assigned Value in such additional
valuation report, the “Third Valuation”). If the amount of the Third Valuation falls within the range of the
Initial Valuation and the Second Valuation, the Assigned Value for such Borrowing Base Eligible Asset for the purposes of clause
(b) above shall be the amount of the Third Valuation. If the amount of the Third Valuation falls outside the range of the Initial
Valuation and the Second Valuation, the Assigned Value in respect of the relevant Borrowing Base Eligible Asset for purposes of
clause (b) of the definition of “Assigned Value” shall be the average of the Initial Valuation, the Second
Valuation and the Third Valuation. The “Determined Valuation” shall mean the valuation of any Borrowing Base
Eligible Asset pursuant to the process referred to above in these clauses (a)-(d) (such process, the “Valuation
Confirmation Process”); provided, that with respect to any Borrowing Base Eligible Asset which is a Mortgage Asset
(either at origination or as a result of a modification), the Borrower shall be required to obtain a valuation of the underlying
property as well as such Mortgage Asset to calculate the Determined Valuation.

 

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It is understood and
agreed that, if a Valuation Confirmation Process is commenced, (i) the Valuation Confirmation Process shall be completed within
thirty (30) days of the delivery of the Initial Dispute Notice, (ii) the Initial Valuation shall apply for all purposes until the
completion of the Valuation Confirmation Process and (iii) after the completion of the Valuation Confirmation Process, the Determined
Valuation shall apply to such Borrowing Base Eligible Asset unless (a) the applicable VAE is continuing for a period of ninety
(90) days or more (other than pursuant to clause (vi) of the definition thereof) or (b) a new VAE has occurred, in which
instance the Borrower shall retain the valuation agent that conducted the Determined Valuation to undertake an updated valuation
(the “Updated Valuation”) for such Borrowing Base Eligible Asset every ninety (90) days; the value of such Borrowing
Base Eligible Asset shall be as determined in the Updated Valuation, provided, however, that the Required Lenders
shall be entitled to dispute the Updated Valuation, in which case the Borrower and the Required Lenders shall follow the procedures
set forth in the Valuation Confirmation Process in respect of the Updated Valuation.

 

11.6         Headings.
Article and Section headings used in this Agreement and the table of contents preceding this Agreement are for convenience of
reference only and shall neither constitute a part of this Agreement for any other purpose nor affect the construction of this
Agreement. The foregoing shall apply to each other Loan Document mutatis mutandis.

 

11.7         Execution
in Counterparts; Effectiveness. This Agreement may be executed in any number of
counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to
be an original, and all of which, when taken together, shall constitute but one and the same Agreement. Delivery of an executed
counterpart of this Agreement by electronic mail (e.g. .pdf or .tiff) shall be equally as effective as delivery of an original
executed counterpart of this Agreement. Any party delivering an executed counterpart of this Agreement by electronic mail also
shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed counterpart shall
not affect the validity, enforceability, and binding effect of this Agreement. The foregoing shall apply to each other Loan Document
mutatis mutandis.

 

11.8         GOVERNING
LAW. EXCEPT AS SPECIFICALLY SET FORTH IN ANY OTHER LOAN DOCUMENT: (A) THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS SHALL BE DEEMED TO HAVE BEEN MADE IN THE STATE OF NEW YORK; AND (B) THE VALIDITY OF THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS, AND THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, AND THE RIGHTS OF THE
PARTIES THERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

 

    	 	- 98 -	 

     

    

 

11.9         JURISDICTION
AND VENUE. TO THE EXTENT THEY MAY LEGALLY DO SO, THE PARTIES HERETO AGREE THAT ALL ACTIONS, SUITS, OR PROCEEDINGS ARISING
BETWEEN ANY MEMBER OF THE LENDER GROUP OR THE BORROWER AND ITS SUBSIDIARIES IN CONNECTION WITH THIS AGREEMENT OR THE OTHER LOAN
DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE OR FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK;
PROVIDED HOWEVER THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT AT ANY
AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE ANY AGENT ELECTS TO BRING SUCH ACTION TO THE EXTENT SUCH COURTS
HAVE IN PERSONAM JURISDICTION OVER THE RELEVANT OBLIGOR OR IN REM JURISDICTION OVER SUCH COLLATERAL OR OTHER PROPERTY. THE BORROWER
AND ITS SUBSIDIARIES AND EACH MEMBER OF THE LENDER GROUP, TO THE EXTENT THEY MAY LEGALLY DO SO, HEREBY WAIVE ANY RIGHT EACH MAY
HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE
WITH THIS SECTION 11.9 AND STIPULATE THAT THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW
YORK SHALL HAVE IN PERSONAM JURISDICTION AND VENUE OVER SUCH PERSON FOR THE PURPOSE OF LITIGATING ANY SUCH DISPUTE, CONTROVERSY,
OR PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS. TO THE EXTENT PERMITTED BY LAW, SERVICE
OF PROCESS SUFFICIENT FOR PERSONAL JURISDICTION IN ANY ACTION AGAINST BORROWER OR ANY MEMBER OF THE LENDER GROUP MAY BE MADE BY
REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO ITS ADDRESS INDICATED ON EXHIBIT 11.3 ATTACHED HERETO.

 

11.10       WAIVER
OF TRIAL BY JURY. THE BORROWER AND ITS SUBSIDIARIES AND EACH MEMBER OF THE LENDER
GROUP, TO THE EXTENT THEY MAY LEGALLY DO SO, HEREBY EXPRESSLY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, CAUSE
OF ACTION, OR PROCEEDING ARISING UNDER OR WITH RESPECT TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS, OR IN ANY WAY CONNECTED
WITH, OR RELATED TO, OR INCIDENTAL TO, THE DEALINGS OF THE PARTIES HERETO WITH RESPECT TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS,
OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND IRRESPECTIVE OF WHETHER
SOUNDING IN CONTRACT, TORT, OR OTHERWISE. TO THE EXTENT THEY MAY LEGALLY DO SO, THE BORROWER AND ITS SUBSIDIARIES AND EACH MEMBER
OF THE LENDER GROUP HEREBY AGREE THAT ANY SUCH CLAIM, DEMAND, ACTION, CAUSE OF ACTION, OR PROCEEDING SHALL BE DECIDED BY A COURT
TRIAL WITHOUT A JURY AND THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 11.10 WITH ANY
COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE OTHER PARTY OR PARTIES HERETO TO WAIVER OF ITS OR THEIR RIGHT TO TRIAL BY JURY.

 

11.11       Independence
of Covenants. All covenants under this Agreement and other Loan Documents shall
be given independent effect so that if a particular action or condition is not permitted by any one covenant, the fact that it
would be permitted by another covenant shall not avoid the occurrence of an Event of Default or Default if such action is taken
or condition exists.

 

    	 	- 99 -	 

     

    

 

11.12       Confidentiality.
Each of the Agents and the Lenders agree to maintain the confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its Affiliates and to its Agent-Related Persons (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 Agent-Related
Persons (including any self-regulatory authority, such as the National Association of Insurance Commissioners); (c) to the extent
required by applicable laws or regulations or by any subpoena or similar legal process (in which case such Person shall notify
the Borrower (except in the case of a non-targeted, routine audit or review) as soon as practicable in the event of such disclosure
by such Person unless such notification is prohibited by law, rule or regulation; provided that, such Person shall not
have any liability for failure to provide such notice); (d) to any other party hereto; (e) in connection with the exercise of
any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan
Document or the enforcement of rights hereunder or thereunder; (f) subject to an agreement containing provisions substantially
the same as those of this Section 11.12, to (i) any Eligible 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
Agent-Related Persons) to any swap, derivative or other transaction under which payments are to be made by reference to the Borrower
and its obligations, this Agreement or payments hereunder; (g) on a confidential basis to (i) any rating agency in connection
with rating the Borrower or its Subsidiaries or the Facilities or (ii) the CUSIP Service Bureau or any similar agency in connection
with the issuance and monitoring of CUSIP numbers with respect to the Facilities; (h) with the consent of the Borrower; or (i)
to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section 11.12
or (y) becomes available to the Agents, any Lender or any of their respective Affiliates on a nonconfidential basis from a source
other than the Borrower. In addition, the Agents 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
Agents and the Lenders in connection with the administration of this Agreement, the other Loan Documents, and the Commitments.

 

For purposes of this
Section, “Information” means all information received from the Borrower or any of its Subsidiaries relating
to the Borrower or any of its Subsidiaries or any of their respective businesses, other than any such information that is available
to the Agents or any Lender prior to disclosure by the Borrower or any of its Subsidiaries. Any of the Lenders on the Closing Date
shall be considered to have complied with its obligation to maintain the confidentiality of Information as provided in this Section
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.

 

11.13       Complete
Agreement. This Agreement, together with the schedules and exhibits hereto and
the other Loan Documents is intended by the parties hereto as a final expression of their agreement and is intended as a complete
statement of the terms and conditions of their agreement with respect to the subject matter of this Agreement and shall not be
contradicted or qualified by any other agreement, oral or written, before the date hereof.

 

    	 	- 100 -	 

     

    

 

11.14       Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other Governmental
Authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such a determination,
the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely
as possible in an acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated
to the fullest extent possible.

 

11.15       PATRIOT
Act Notice. Each Lender hereby notifies the Borrower that pursuant to the requirements
of the PATRIOT Act, it may be required to obtain, verify and record information that identifies the Borrower, which information
includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance
with the PATRIOT Act.

 

Article
XII

THE GUARANTY

 

12.1         The
Guarantee.

 

(a)          The
Guarantors hereby, jointly and severally, guarantee to each Secured Party as hereinafter provided, as primary obligor and not merely
as surety, the payment of the Secured Obligations in full in cash when due (whether at stated maturity, as a mandatory prepayment,
by acceleration, as a mandatory cash collateralization or otherwise) strictly in accordance with the terms thereof. Each Guarantor
hereby further jointly and severally agrees that if any of the Secured Obligations are not paid in full in cash when due (whether
at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization or otherwise), each Guarantor
will promptly pay the same, without any demand or notice whatsoever, and that in the case of any extension of time of payment or
renewal of any of the Secured Obligations, the same will be promptly paid in full in cash when due (whether at extended maturity,
as a mandatory prepayment, by acceleration, as a mandatory cash collateralization or otherwise) in accordance with the terms of
such extension or renewal.

 

(b)          Each
Guarantor, and by its acceptance of this Guaranty, the Agents and each other Secured Party, hereby confirms that it is the intention
of all such Persons that this Guaranty and the Obligations of each Guarantor hereunder not constitute a fraudulent transfer or
conveyance for purposes of any Debtor Relief Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or
any similar foreign, federal or state law to the extent applicable to this Guaranty and the Obligations of each Guarantor hereunder.
To effectuate the foregoing intention, the Agents, the other Secured Parties and the Guarantors hereby irrevocably agree that the
Obligations of each Guarantor under this Guaranty at any time shall be limited to the maximum amount as will result in the Obligations
of such Guarantor under this Guaranty not constituting a fraudulent transfer or conveyance under applicable law after giving full
effect to such Guarantor’s contribution rights but before taking into account any liabilities of such Guarantor under any
other guarantee of such Guarantor other than any other guarantee of any obligations that are secured on a pari passu basis
with the Obligations.

 

    	 	- 101 -	 

     

    

 

12.2         Obligations
Unconditional.

 

(a)          The
obligations of the Guarantors under Section 12.1 are absolute and unconditional, irrespective of the value, genuineness,
validity, regularity or enforceability of any of the Loan Documents or other documents relating to the Secured Obligations, or
any substitution, release, impairment or exchange of any other guarantee of or security for any of the Secured Obligations, and,
to the fullest extent permitted by applicable law, irrespective of any other circumstance whatsoever which might otherwise constitute
a legal or equitable discharge or defense of a surety or guarantor (other than payment in full in cash of the Secured Obligations,
other than Obligations (or any portion thereof) that are contingent in nature and for which no claim has been made (“Unliquidated
Obligations”)), it being the intent of this Section 12.2 that the obligations of the Guarantors hereunder shall
be absolute and unconditional under any and all circumstances. Each Guarantor agrees that it shall have no right of subrogation,
indemnity, reimbursement or contribution against any other Guarantor for amounts paid under this Article XII until
such time as the Secured Obligations (other than Unliquidated Obligations) have been indefeasibly paid in full in cash and the
Commitments have expired or terminated.

 

Without limiting the
generality of the foregoing, it is agreed that, to the fullest extent permitted by law, the occurrence of any one or more of the
following shall not alter or impair the liability of any Guarantor hereunder, which shall remain absolute and unconditional as
described above:

 

(b)          at
any time or from time to time, without notice to any Guarantor, the time for any performance of or compliance with any of the Secured
Obligations shall be extended, or such performance or compliance shall be waived;

 

(c)          the
maturity of any of the Secured Obligations shall be accelerated, or any of the Secured Obligations shall be modified, supplemented
or amended in any respect, or any right under any of the Loan Documents or other documents relating to the Secured Obligations
shall be waived or any other guarantee of any of the Secured Obligations or any security therefor shall be released, impaired or
exchanged in whole or in part or otherwise dealt with;

 

(d)          any
Lien granted to, or in favor of, the Collateral Agent or any other holder of the Secured Obligations as security for any of the
Secured Obligations shall fail to attach or be perfected; or

 

(e)          any
of the Secured Obligations shall be determined to be void or voidable (including, without limitation, for the benefit of any creditor
of any Guarantor) or shall be subordinated to the claims of any Person (including, without limitation, any creditor of Guarantor).

 

    	 	- 102 -	 

     

    

 

(f)          any
failure or omission to assert or enforce or agreement or election not to assert or enforce, delay in enforcement, or the stay or
enjoining, by order of court, by operation of law or otherwise, of the exercise or enforcement of, any claim or demand or any right,
power or remedy (whether arising under any Loan Document at law, in equity or otherwise) with respect to the Secured Obligations
or any agreement relating thereto, or with respect to any other guaranty of or security for the payment of the Secured Obligations;

 

(g)          any
exercise of remedies with respect to any security for the Secured Obligations (including, without limitation, any collateral, including
the Collateral, securing or purporting to secure any of the Secured Obligations) at such time and in such order and in such manner
as the Agents and the Secured Parties may decide and whether or not every aspect thereof is commercially reasonable and whether
or not such action constitutes an election of remedies and even if such action operates to impair or extinguish any right of reimbursement
or subrogation or other right or remedy that any Guarantor would otherwise have, and without limiting the generality of the foregoing
or any other provisions hereof, each Guarantor hereby expressly waives any and all benefits which might otherwise be available
to such Guarantor under applicable law;

 

(h)          any
other circumstance whatsoever which may or might in any manner or to any extent vary the risk of any Guarantor as an obligor in
respect of the Secured Obligations or which constitutes, or might be construed to constitute, an equitable or legal discharge of
the Borrower or any other Guarantor for the Secured Obligations, or of such Guarantor under the guarantee contained in this Article
XII or of any security interest granted by any Guarantor, whether in an Insolvency Proceeding or in any other instance; or

 

(i)          with
respect to its obligations hereunder, each Guarantor hereby expressly waives diligence, presentment, demand of payment, protest
and all notices whatsoever, and any requirement that the Agents or any other holder of the Secured Obligations exhaust any right,
power or remedy or proceed against any Person under any of the Loan Documents or other documents relating to the Secured Obligations,
or against any other Person under any other guarantee of, or security for, any of the Secured Obligations.

 

12.3         Reinstatement.
The obligations of each Guarantor under this Article XII shall be automatically reinstated if and to the extent that for
any reason any payment by or on behalf of any Person in respect of the Secured Obligations is rescinded or must be otherwise restored
by any holder of any of the Secured Obligations, whether as a result of any proceedings under any Debtor Relief Law, and each
Guarantor agrees that it will jointly and severally indemnify the Agents and each holder of the Secured Obligations on demand
for all reasonable costs and expenses (including, without limitation, the fees, charges and disbursements of one counsel for the
Agents, taken as a whole, and one counsel for the holders of any Secured Obligations, taken as a whole) incurred by the Agents
or such holders of the Secured Obligations in connection with such rescission or restoration, including any such costs and expenses
incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment
under any proceedings under any Debtor Relief Law.

 

12.4         Certain
Additional Waivers. Each Guarantor further agrees that it shall have no right of
recourse to security for the Secured Obligations, except through the exercise of rights of subrogation pursuant to Section
12.2 and through the exercise of rights of contribution pursuant to Section 12.6.

 

    	 	- 103 -	 

     

    

 

12.5         Remedies.
Each Guarantor agrees that, to the fullest extent permitted by law, as between the Guarantors, on the one hand, and the Agents
and the other holders of the Secured Obligations, on the other hand, the Secured Obligations may be declared to be forthwith due
and payable as provided in Article VII (and shall be deemed to have become automatically due and payable in the circumstances
provided in said Article VII) for purposes of Section 12.1 notwithstanding any stay, injunction or other prohibition
preventing such declaration (or preventing the Secured Obligations from becoming automatically due and payable) as against any
other Person and that, in the event of such declaration (or the Secured Obligations being deemed to have become automatically
due and payable), the Secured Obligations (whether or not due and payable by any other Person) shall forthwith become due and
payable by each Guarantor for purposes of Section 12.1. Each Guarantor acknowledges and agrees that its respective obligations
hereunder are secured in accordance with the terms of the Loan Documents and that the holders of the Secured Obligations may exercise
their remedies thereunder in accordance with the terms thereof.

 

12.6         Rights
of Contribution. Each Guarantor agrees that, in connection with payments made hereunder,
each Guarantor shall have contribution rights against the other Guarantors as permitted under applicable law. Such contribution
rights shall be subordinate and subject in right of payment to the obligations of such Guarantors under the Loan Documents and
no Guarantor shall exercise such rights of contribution until all Secured Obligations (other than Unliquidated Obligations) have
been indefeasibly paid in full in cash and the Commitments have terminated.

 

12.7         Guaranty
of Payment; Continuing Guarantee. The guarantee given by each Guarantor in this
Article XII is a guaranty of payment and not of collection, is a continuing guarantee, and shall apply to all Secured Obligations
whenever arising.

 

12.8         Representations
and Warranties of each Guarantor. Each Guarantor hereby (i) represents and warrants
to each Agent and each Lender as to itself that all representations and warranties relating to it contained in this Agreement
and the Loan Documents are true and correct as of the date hereof and (ii) further represents and warrants to Agents and each
Lender as of the date hereof that:

 

(a)          Such
Guarantor has received, or will receive, direct or indirect benefit from the making of this Agreement with respect to the Secured
Obligations;

 

(b)          Such
Guarantor is duly organized, validly existing and in good standing under the laws of its jurisdiction of formation;

 

(c)          Such
Guarantor has the requisite corporate power and authority to issue this Agreement and to perform its obligations hereunder, and
has duly authorized, executed and delivered this Agreement;

 

(d)          Such
Guarantor is not required to obtain any authorization, consent, approval, exemption or license from, or to file any registration
with, any government authority as a condition to the validity of, or to the execution, delivery or performance of, this Agreement;

 

    	 	- 104 -	 

     

    

 

(e)          There
is no action, suit or proceeding pending or threatened in writing against Guarantor before any court or arbitrator or any governmental
body, agency or official in which there is a reasonable possibility of an adverse decision which could affect, in a materially
adverse manner, the ability of Guarantor to perform any of its obligations under, or which in any manner questions the validity
of, this Agreement;

 

(f)          The
execution, delivery and performance of this Agreement by Guarantor does not contravene or constitute a default under any provision
of Guarantor’s certificate of incorporation or by-laws or any material contractual restriction binding on Guarantor, and
to the best of Guarantor’s knowledge does not contravene or constitute a default under any statue, regulation or rule of
any governmental authority;

 

(g)         This
Agreement constitutes the legal, valid and binding obligation of Guarantor enforceable in accordance with its terms, subject to
the effect of any bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors' rights generally, and
to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law);
and

 

(h)          Guarantor
is familiar with, and has independently reviewed books and records regarding, the financial condition of Borrower and is familiar
with the value of any and all collateral intended to be created as security for the payment of the Secured Obligations; however,
Guarantor is not relying on such financial condition or the collateral as an inducement to enter into this Agreement.

 

[Signature pages to follow.]

 

    	 	- 105 -	 

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed and delivered as of the date first set forth above.

 

	 	HUNT COMPANIES FINANCE TRUST, INC.,
	 	a Maryland corporation, as Borrower
	 	 
	 	By:	/s/ Michael Larsen
	 	Name:	Michael Larsen
	 	Title:	President
	 	 
	 	FIVE OAKS ACQUISITION CORP.,
	 	a Delaware corporation, as Guarantor
	 	 
	 	By:	/s/ Michael Larsen
	 	Name:	Michael Larsen
	 	Title:	President
	 	 
	 	HUNT CMT EQUITY, LLC,
	 	a Delaware limited liability company, as Guarantor
	 	 
	 	By:	/s/ Michael Larsen
	 	Name:	Michael Larsen
	 	Title:	President

 

     

     

    

 

	 	CORTLAND CAPITAL MARKET SERVICES
	 	LLC,
	 	as Administrative Agent and Collateral Agent,
	 	 
	 	By:	/s/ Emily Ergang Pappas
	 	Name:	Emily Ergang Pappas
	 	Title:	Associate Counsel

 

     

     

    

 

	 	Jefferies Leveraged Credit Products, LLC,
	 	as Initial Lender
	 	 
	 	By:	/s/ William P. McLoughlin
	 	Name:	William P. McLoughlin
	 	Title:	SVP

 

     

     

    

 

ANNEX A

 

Lender Commitments

 

	Initial Lender	Commitment
	 	 
	Jefferies Leveraged Credit Products, LLC	$40,250,000

 

     

     

    

 

 

Execution Version

 

EXHIBIT A-1

 

FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT

 

This ASSIGNMENT AND
ACCEPTANCE AGREEMENT (“Assignment Agreement”) is dated as of the Effective Date set forth below and is entered
into by and between [the][each]1
Assignor identified in item 1 below ([the][each, an] “Assignor”) and [the][each]2
Assignee identified in item 2 below ([the][each, an] “Assignee”). [It is understood and agreed that the rights
and obligations of [the Assignors][the Assignees]3
hereunder are several and not joint.]4
Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as
amended, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by [the][each] Assignee.
The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference
and made a part of this Assignment Agreement as if set forth herein in full.

 

For an agreed consideration,
[the][each] Assignor hereby irrevocably sells and assigns to [the Assignee][the respective Assignees], and [the][each] Assignee
hereby irrevocably purchases and assumes from [the Assignor][the respective Assignors], subject to and in accordance with the Standard
Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below
(i) all of [the Assignor’s][the respective Assignors’] rights and obligations in [its capacity as a Lender][their respective
capacities as Lenders] under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent
related to the amount and percentage interest identified below of all of such outstanding rights and obligations of [the Assignor][the
respective Assignors] under the respective facilities identified below (including without limitation any guarantees included in
such facilities), and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and
any other right of [the Assignor (in its capacity as a Lender)][the respective Assignors (in their respective capacities as Lenders)]
against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or
instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the
foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims
at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations
sold and assigned by [the][any] Assignor to [the][any] Assignee pursuant to clauses (i) and (ii) above being referred to herein
collectively as [the][an] “Assigned Interest”). Each such sale and assignment is without recourse to [the][any]
Assignor and, except as expressly provided in this Assignment Agreement, without representation or warranty by [the][any] Assignor.

 

 

1
For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a single Assignor,
choose the first bracketed language. If the assignment is from multiple Assignors, choose the second bracketed language.

 

2
For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a single Assignee,
choose the first bracketed language. If the assignment is to multiple Assignees, choose the second bracketed language.

 

3
Select as appropriate.

 

4
Include bracketed language if there are either multiple Assignors or multiple Assignees.

 

     

     

    

 

	1.	Assignor[s]:	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	2.	Assignee[s]:	 	 
	 	 	 	 
	 	 	 	 
	 	[Assignee is an [Affiliate][Approved
Fund] of [identify Lender]

 

	3.	Borrower:	HUNT COMPANIES FINANCE TRUST, INC., a Maryland corporation
	 	 	 
	4.	Administrative Agent:	Cortland Capital Market Services LLC, as the Administrative Agent
	 	 	 
	5.	Credit Agreement:	The Credit and Guaranty Agreement dated as of January [__], 2019, by and among Hunt Companies Finance Trust, Inc., as Borrower, Five Oaks Acquisition Corp. and Hunt CMT Equity, LLC, as Guarantors, the Lenders parties thereto from time to time, and Cortland Capital Market Services LLC, as Administrative Agent and Collateral Agent

 

	6.	Assigned Interest[s]:

 

	Assignor[s]5	 	Assignee[s]6	 	Facility
 Assigned7	 	Aggregate Amount of
 Commitment/Loans
 for all Lenders	 	 	Amount of
 Commitment/Loans
 Assigned8	 	 	Percentage
 Assigned of
 Commitment/
 Loans8	 	 	CUSIP
 Number
	 	 	 	 	 	 	$	                  	 	 	$	                  	 	 	 	                  	%	 	 
	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	 	%	 	 
	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	 	%	 	 

 

 

5
List each Assignor, as appropriate.

 

6
List each Assignee, as appropriate.

 

7
Designate type of interest being assigned – Initial Term Loan or Incremental Term Loan.

 

8
Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

 

    	 	EXHIBIT A-1-2	 

     

    

 

Effective Date: _________ ___, 20[__]9

 

The terms set forth in this Assignment
and Acceptance Agreement are hereby agreed to:

 

	 	[NAME OF ASSIGNOR], as Assignor
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	[NAME OF ASSIGNEE], as Assignee
	 	 	 
	 	By:	  
	 	 	Name:
	 	 	Title:

 

	ACCEPTED [AND CONSENTED]10 THIS ____ DAY OF
	_______________, 20__	 
	 	 
	CORTLAND CAPITAL MARKET SERVICES LLC,
	as Administrative Agent	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 
	 	 
	[CONSENTED TO THIS ____ DAY OF	 
	______________, 20__	 
	 	 
	HUNT COMPANIES FINANCE TRUST, INC.,	 
	a Maryland corporation,	 
	as Borrower	 
	 	 	 
	By: 	                         	  	 
	Name: 	 	 	 
	Title:  	 	]11	 
	 	 	 	 

 

 

9
To be inserted by Administrative Agent and which shall be the effective date of recordation of transfer in the Register therefor.

 

10
Include to the extent required by Section 9.1(b)(iii)(B) of the Credit Agreement.

 

11
Include to the extent required by Section 9.1(b)(iii) of the Credit Agreement.

 

    	 	EXHIBIT A-1-3	 

     

    

 

ANNEX I

 

ANNEX FOR ASSIGNMENT AND ACCEPTANCE AGREEMENT

 

STANDARD TERMS AND CONDITIONS FOR

 

ASSIGNMENT AGREEMENT

 

1.            Representations
and Warranties.

 

1.1           Assignor[s].
[The][Each] Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of [the][the relevant] Assigned
Interest, (ii) [the][such] Assigned Interest is free and clear of any lien, encumbrance or other adverse claim, (iii) it has full
power and authority, and has taken all action necessary, to execute and deliver this Assignment Agreement and to consummate the
transactions contemplated hereby and (iv) it is not a Defaulting Lender; and (b) assumes no responsibility with respect to (i)
any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii)
the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder,
(iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of
any Loan Document, or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person
of any of their respective obligations under any Loan Document.

 

1.2           Assignee[s].
[The][Each] Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary,
to execute and deliver this Assignment Agreement and to consummate the transactions contemplated hereby and to become a Lender
under the Credit Agreement, (ii) it meets all the requirements to be an assignee under Section 9.1 of the Credit Agreement
(subject to such consents, if any, as may be required thereunder), (iii) from and after the Effective Date, it shall be bound by
the provisions of the Credit Agreement as a Lender thereunder and, to the extent of [the][the relevant] Assigned Interest, shall
have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented
by the Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire the Assigned Interest,
is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has received or has been
accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 5.2 thereof
and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this
Assignment Agreement and to purchase [the][such] Assigned Interest, (vi) it has, independently and without reliance upon the Administrative
Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis
and decision to enter into this Assignment Agreement and to purchase [the][such] Assigned Interest, and (vii) if it is not a Lender,
Assignee has delivered to Administrative Agent all documentation and other information required by regulatory authorities under
applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the
PATRIOT Act, and (viii) if it is a foreign Lender attached to the Assignment Agreement is any documentation required to be
delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by [the][such] Assignee; and (b) agrees
that (i) it will, independently and without reliance on the Administrative Agent, [the][any] Assignor or any other Lender, and
based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations
which by the terms of the Loan Documents are required to be performed by it as a Lender.

 

    	 	EXHIBIT A-1-4	 

     

    

 

2.            Payments.
From and after the Effective Date, the Administrative Agent shall make all payments in respect of [the][each] Assigned Interest
(including payments of principal, interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued
to but excluding the Effective Date and to [the][the relevant] Assignee for amounts which have accrued from and after the Effective
Date. Notwithstanding the foregoing, the Administrative Agent shall make all payments of interest, fees or other amounts paid or
payable in kind from and after the Effective Date to [the][the relevant] Assignee.

 

3.             General
Provisions. This Assignment Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns. This Assignment Agreement may be executed in any number of counterparts, which together shall constitute
one instrument. Delivery of an executed counterpart of a signature page of this Assignment Agreement by telecopy shall be effective
as delivery of a manually executed counterpart of this Assignment Agreement.

 

4.             THIS
ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

    	 	EXHIBIT A-1-5	 

     

    

 

EXHIBIT A-2

 

(FORM OF SECURED PROMISSORY NOTE FOR LOANS)

 

SECURED PROMISSORY NOTE FOR LOANS

 

	$_____________________	As of _____________ __, 20__
	Secured Promissory Note No. ___	 

 

FOR VALUE RECEIVED,
the undersigned (the “Borrower”), hereby promises to pay to the order of ___________________, a ___________________
(hereinafter, “Lender”), such payment to be made to Administrative Agent for the account of Lender, in such
coin or currency of the United States which shall be legal tender in payment of all debts and dues, public and private, at the
time of payment, the principal sum of $______________ or, if less, the aggregate unpaid principal amount of all Loans made by the
Lender pursuant to the Credit Agreement (as defined below), payable as set forth in the Credit Agreement.

 

This Secured Promissory
Note for Loans (this “Note”) is one of a series of the promissory notes referred to in, and is issued pursuant
to, that certain Credit Agreement, dated as of January [__], 2019 (as amended, restated, supplemented, amended and restated or
otherwise modified from time to time, the “Credit Agreement”), among Hunt Companies Finance Trust, Inc. (the
“Borrower”), Five Oaks Acquisition Corp., a Delaware corporation, Hunt CMT Equity, LLC, a Delaware limited liability
company, the lenders party thereto (such lenders, together with their respective successors and permitted assigns, are referred
to hereinafter each individually as a “Lender” and collectively as the “Lenders”), and Cortland
Capital Market Services LLC, as administrative agent and collateral agent for the Lenders. Unless otherwise defined herein or the
context otherwise requires, terms used herein or in any of the attachments hereto have the meanings provided in the Credit Agreement.
This Note evidences certain Loans incurred under the Credit Agreement.

 

This Note is secured
and guaranteed as provided in the Credit Agreement and the Loan Documents. Reference is hereby made to the Credit Agreement and
the Loan Documents for a description of the properties and assets in which a security interest has been granted, the nature and
extent of the security and guarantees, the terms and conditions upon which the security interest and each guarantee was granted
and the rights of the holder of this Note in respect thereof.

 

All interest shall
be computed in the manner provided in Article II of the Credit Agreement. Upon the occurrence and during the continuation
of an Event of Default, the interest rate provided herein may be increased set forth in the Credit Agreement.

 

The principal amount
and accrued interest of this Note shall be due and payable in accordance with the Credit Agreement. Notwithstanding the foregoing,
the entire unpaid principal balance hereof and accrued interest thereon shall be due and payable immediately upon any termination
or acceleration of the Credit Agreement pursuant to the provisions thereof.

 

    	EXHIBIT A-2-1

     

    

 

This Note shall be
subject to repayment and prepayment in accordance with the provisions of Section 2.7 and Section 2.8 of the Credit
Agreement.

 

To the maximum extent
permitted by law, the Borrower waives presentment, demand, protest and all other notices of any kind.

 

This Note may not be
transferred except in compliance with the terms of the Credit Agreement.

 

This Note shall be
governed by, and construed and enforced in accordance with, the laws of the State of New York.

 

[SIGNATURE PAGE FOLLOWS]

 

    	EXHIBIT A-2-2

     

    

 

IN WITNESS WHEREOF,
this Note has been duly executed and delivered on the date first above written.

 

	 	HUNT COMPANIES FINANCE TRUST, INC.,
	 	a Maryland corporation
	 	 	                 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	EXHIBIT A-2-3Exhibit

Exhibit 10.1
EXECUTION VERSION

Deal CUSIP Number: 74454EAJ4
Term Loan CUSIP Number: 74454EAK1

$250,000,000

TERM LOAN AGREEMENT

among

PUBLIC SERVICE COMPANY OF NEW MEXICO,
as Borrower,

THE LENDERS IDENTIFIED HEREIN,

U.S. BANK NATIONAL ASSOCIATION,
as Administrative Agent

DATED AS OF January 18, 2019

U.S. BANK NATIONAL ASSOCIATION,
as Sole Lead Arranger and Book Manager

TABLE OF CONTENTS

	
				
	SECTION 1
	DEFINITIONS AND ACCOUNTING TERMS
	1
	

	1.1
	Definitions.
	1
	

	1.2
	Computation of Time Periods and Other Definitional Provisions.
	17
	

	1.3
	Accounting Terms/Calculation of Financial Covenant.
	17
	

	1.4
	Time.
	18
	

	1.5
	Rounding of Financial Covenant.
	18
	

	1.6
	References to Agreements and Requirement of Laws.
	18
	

	1.7
	Rates.
	18
	

	 
	 
	 

	SECTION 2
	CREDIT FACILITY
	18
	

	2.1
	Loans.
	18
	

	2.2
	[Reserved].
	19
	

	2.3
	Continuations and Conversions.
	19
	

	2.4
	Minimum Amounts.
	20
	

	2.5
	[Reserved].
	20
	

	2.6
	Evidence of Debt.
	20
	

	 
	 
	 

	SECTION 3
	GENERAL PROVISIONS APPLICABLE TO LOANS
	20
	

	3.1
	Interest.
	20
	

	3.2
	Payments Generally.
	21
	

	3.3
	Prepayments.
	22
	

	3.4
	[Reserved].
	22
	

	3.5
	Payment in Full at Maturity.
	22
	

	3.6
	Computations of Interest and Fees.
	22
	

	3.7
	Pro Rata Treatment.
	23
	

	3.8
	Sharing of Payments.
	24
	

	3.9
	Capital Adequacy.
	24
	

	3.10
	Eurodollar Provisions.
	25
	

	3.11
	Illegality.
	25
	

	3.12
	Requirements of Law.
	26
	

	3.13
	Taxes.
	26
	

	3.14
	Compensation.
	29
	

	3.15
	Determination and Survival of Provisions.
	30
	

	3.16
	Defaulting Lenders.
	30
	

	3.17
	Mitigation Obligations.
	31
	

	 
	 
	 

	SECTION 4
	CONDITIONS PRECEDENT
	31
	

	4.1
	Closing Conditions.
	31
	

	 
	 
	 

	SECTION 5
	CONDITIONS TO FUNDING OF LOANS
	34
	

	5.1
	Funding Requirements.
	34
	

	 
	 
	 

	SECTION 6
	REPRESENTATIONS AND WARRANTIES
	34
	

	6.1
	Organization and Good Standing.
	34
	

i

	
				
	6.2
	Due Authorization.
	34
	

	6.3
	No Conflicts.
	35
	

	6.4
	Consents.
	35
	

	6.5
	Enforceable Obligations..
	35
	

	6.6
	Financial Condition.
	35
	

	6.7
	No Material Change.
	35
	

	6.8
	No Default.
	36
	

	6.9
	Litigation.
	36
	

	6.10
	Taxes.
	36
	

	6.11
	Compliance with Law.
	36
	

	6.12
	ERISA.
	36
	

	6.13
	Use of Proceeds; Margin Stock.
	37
	

	6.14
	Government Regulation.
	37
	

	6.15
	Solvency.
	37
	

	6.16
	Disclosure.
	38
	

	6.17
	Environmental Matters.
	38
	

	6.18
	[Reserved].
	38
	

	6.19
	[Reserved].
	38
	

	6.20
	Anti-Corruption Laws and Sanctions.
	38
	

	6.21
	EEA Financial Institutions.
	38
	

	 
	 
	 

	SECTION 7
	AFFIRMATIVE COVENANTS
	39
	

	7.1
	Information Covenants.
	39
	

	7.2
	Financial Covenant.
	41
	

	7.3
	Preservation of Existence and Franchises.
	41
	

	7.4
	Books and Records.
	41
	

	7.5
	Compliance with Law.
	41
	

	7.6
	Payment of Taxes and Other Indebtedness.
	42
	

	7.7
	Insurance.
	42
	

	7.8
	Performance of Obligations.
	42
	

	7.9
	Use of Proceeds.
	42
	

	7.10
	Audits/Inspections.
	43
	

	 
	 
	 

	SECTION 8
	NEGATIVE COVENANTS
	43
	

	8.1
	Nature of Business.
	43
	

	8.2
	Consolidation and Merger.
	43
	

	8.3
	Sale or Lease of Assets.
	43
	

	8.4
	Affiliate Transactions.
	44
	

	8.5
	Liens.
	44
	

	8.6
	Accounting Changes.
	45
	

	 
	 
	 

	SECTION 9
	EVENTS OF DEFAULT
	45
	

	9.1
	Events of Default.
	45
	

	9.2
	Acceleration; Remedies.
	47
	

	9.3
	Allocation of Payments After Event of Default.
	48
	

	 
	 
	 

	SECTION 10
	AGENCY PROVISIONS
	48
	

ii

	
				
	10.1
	Appointment and Authority.
	48
	

	10.2
	Rights as a Lender.
	49
	

	10.3
	Exculpatory Provisions.
	49
	

	10.4
	Reliance by Administrative Agent.
	50
	

	10.5
	Delegation of Duties.
	50
	

	10.6
	Resignation of Administrative Agent.
	50
	

	10.7
	Non‐Reliance on Administrative Agent and Other Lenders.
	51
	

	10.8
	No Other Duties, Etc.
	51
	

	10.9
	Administrative Agent May File Proofs of Claim.
	51
	

	10.10
	Status of Lenders.
	52
	

	10.11
	ERISA Matters.
	52
	

	 
	 
	 

	SECTION 11
	MISCELLANEOUS
	54
	

	11.1
	Notices; Effectiveness; Electronic Communication.
	54
	

	11.2
	Right of Set‐Off.
	56
	

	11.3
	Successors and Assigns.
	56
	

	11.4
	No Waiver; Remedies Cumulative.
	59
	

	11.5
	Attorney Costs, Expenses, Taxes and Indemnification by Borrower.
	59
	

	11.6
	Amendments, Etc.
	61
	

	11.7
	Counterparts; Electronic Execution.
	62
	

	11.8
	Headings.
	62
	

	11.9
	Survival of Indemnification and Representations and Warranties.
	62
	

	11.10
	Governing Law; Venue; Service.
	62
	

	11.11
	Waiver of Jury Trial; Waiver of Consequential Damages.
	63
	

	11.12
	Severability.
	63
	

	11.13
	Further Assurances.
	63
	

	11.14
	Confidentiality.
	63
	

	11.15
	Entirety.
	64
	

	11.16
	Binding Effect; Continuing Agreement.
	64
	

	11.17
	Regulatory Statement.
	65
	

	11.18
	USA Patriot Act Notice.
	65
	

	11.19
	Acknowledgment.
	65
	

	11.20
	Replacement of Lenders.
	66
	

	11.21
	No Advisory or Fiduciary Responsibility.
	66
	

	11.22
	Acknowledgment and Consent to Bail-In of EEA Financial Institutions.
	67
	

iii

SCHEDULES

Schedule 1.1(a)    Pro Rata Shares
Schedule 11.1    Notices

EXHIBITS

Exhibit 2.1(b)    Form of Notice of Borrowing
Exhibit 2.1(d)    Form of Term Note
Exhibit 2.3    Form of Notice of Continuation/Conversion
Exhibit 4.1(k)    Form of Account Designation Letter
Exhibit 7.1(c)    Form of Compliance Certificate
Exhibit 11.3(b)    Form of Assignment and Assumption

iv

TERM LOAN AGREEMENT

THIS TERM LOAN AGREEMENT (this “Loan Agreement”) is entered into as of January 18, 2019 among PUBLIC SERVICE COMPANY OF NEW MEXICO, a New Mexico corporation, as Borrower, the Lenders and U.S. BANK NATIONAL ASSOCIATION, as Administrative Agent.

RECITALS

WHEREAS, the Borrower has requested the Lenders to provide a term loan facility to the Borrower in an aggregate principal amount of $250,000,000; and

WHEREAS, the Lenders party hereto have agreed to make the requested term loan facility available to the Borrower on the terms and conditions hereinafter set forth.

NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

SECTION 1 
 
DEFINITIONS AND ACCOUNTING TERMS

1.1    Definitions.

The following terms shall have the meanings specified herein unless the context otherwise requires.  Defined terms herein shall include in the singular number the plural and in the plural the singular:

“Account Designation Letter” means the Notice of Account Designation Letter dated as of the Closing Date from the Borrower to the Administrative Agent in substantially the form of Exhibit 4.1(k).

“Adjusted Base Rate” means the Base Rate plus the Applicable Percentage.

“Adjusted Eurodollar Rate” means the Eurodollar Rate plus the Applicable Percentage.

“Administrative Agent” means U.S. Bank National Association or any successor administrative agent appointed pursuant to Section 10.6.

“Administrative Agent’s Office” means the Administrative Agent’s address and, as appropriate, account as set forth on Schedule 11.1 or such other address or account as the Administrative Agent may from time to time notify the Borrower and the Lenders.

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

“Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling (including but not limited to all directors and officers of such Person), controlled by or under direct or indirect common control with such Person.  A Person shall be deemed to control another Person if such Person possesses, directly or indirectly, the power (a) to vote 10% or more of 

the securities having ordinary voting power for the election of directors of such other Person or (b) to direct or cause direction of the management and policies of such other Person, whether through the ownership of voting securities, by contract or otherwise.

“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption.

“Applicable Percentage” means, (a) for Eurodollar Loans, 0.65% and (b) for Base Rate Loans, 0.00%.

“Approved Fund” means any 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 U.S. Bank National Association, together with its successors and/or assigns.

“Assignment and Assumption” means an Assignment and Assumption substantially in the form of Exhibit 11.3(b).

“Authorized Officer” means any of the president, vice-president, chief executive officer, chief financial officer or treasurer of the Borrower.

“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.

“Bankruptcy Code” means the Bankruptcy Code in Title 11 of the United States Code, as amended, modified, succeeded or replaced from time to time.

“Base Rate” means, at any time, the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50% and (c) except during any period of time during which a notice delivered to the Borrower under Section 3.10 shall remain in effect, the Eurodollar Base Rate for an Interest Period of one month plus 1%; each change in the Base Rate shall take effect simultaneously with the corresponding change or changes in the Prime Rate, the Federal Funds Rate or the Eurodollar Base Rate.  For the avoidance of doubt, if the Base Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of this Loan Agreement.

“Base Rate Loan” means any Loan bearing interest at a rate determined by reference to the Base Rate.

“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.

“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject  to  Title  I  of  ERISA,  (b)  a “plan” as defined in Section 4975 of the Code or (c) any Person 

2

whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.

“Borrower” means Public Service Company of New Mexico, a New Mexico corporation, together with its successors and permitted assigns.

“Borrower Obligations” means, without duplication, all of the obligations of the Borrower to the Lenders and the Administrative Agent, whenever arising, under this Loan Agreement, the Notes, or any of the other Loan Documents.

“Borrowing” means a borrowing consisting of simultaneous Loans of the same Type and, in the case of Eurodollar Loans, having the same Interest Period made by each of the Lenders pursuant to Section 2.1.

“Business Day” means (a) for all purposes other than as set forth in clause (b) below, any day other than a Saturday, Sunday or legal holiday on which banks in New York, New York, are open for the conduct of their commercial banking business, and (b) with respect to all notices and determinations in connection with, and payments of principal and interest on, any Eurodollar Loan, or any Base Rate Loan as to which the interest rate is determined by reference to LIBOR, any day that is a Business Day described in clause (a) and that is also a day for trading by and between banks in Dollar deposits in the London interbank market.

“Capital Stock” means (a) in the case of a corporation, all classes of capital stock of such corporation, (b) in the case of a partnership, partnership interests (whether general or limited), (c) in the case of a limited liability company, membership interests and (d) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person; including, in each case, all warrants, rights or options to purchase any of the foregoing.

“Change in Law” means the occurrence, after the date of this Loan Agreement (or with respect to any Lender, if later, the date on which such Lender becomes a Lender), 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, promulgation, implementation or application thereof by any Governmental Authority, (c) the adoption or taking effect of any request, rule, guideline, policy or directive (whether or not having the force of law) by any Governmental Authority or (d) any change in any request, rule, guideline, policy or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and all requests, rules, guidelines, requirements and directives thereunder, issued in connection therewith or in implementation thereof, and (ii) all requests, rules, guidelines, requirements and 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, issued or implemented.

“Change of Control” means the failure of PNM Resources, Inc., a New Mexico corporation, to own and control 100% of the Voting Stock of the Borrower.  

“Closing Date” means the date of this Loan Agreement, which is the first date all of the conditions precedent in Sections 4.1 and 5.1 are satisfied or waived in accordance with Section 11.6.

3

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

“Commitment” means, as to each Lender, its obligation to make Loans to the Borrower pursuant to Section 2.1 in an aggregate principal amount not to exceed the amount set forth opposite such Lender’s name on Schedule 1.1(a).  The aggregate amount of Commitments of all Lenders on the Closing Date is TWO HUNDRED FIFTY MILLION DOLLARS ($250,000,000).

“Commitment Percentage” means, with respect to each Lender, the percentage listed under the heading “Commitment Percentage” on Schedule 1.1(a).

“Compensation Period” has the meaning set forth in Section 3.2(c)(ii).

“Compliance Certificate” means a fully completed and duly executed officer’s certificate in the form of Exhibit 7.1(c), together with a Covenant Compliance Worksheet.

“Consolidated Capitalization” means the sum of (a) all of the shareholders’ equity or net worth of the Borrower and its Subsidiaries, as determined in accordance with GAAP plus (b) Consolidated Indebtedness minus (c) Securitization Equity.

“Consolidated Indebtedness” means, as of any date of determination, with respect to the Borrower and its Subsidiaries on a consolidated basis, the difference of (a) an amount equal to all Indebtedness of the Borrower and its Subsidiaries as of such date minus (b) Non-Recourse Securitization Indebtedness.

“Contingent Obligation” means, with respect to any Person, any direct or indirect liability of such Person with respect to any Indebtedness, liability or other obligation (the “primary obligation”) of another Person (the “primary obligor”), whether or not contingent, (a) to purchase, repurchase or otherwise acquire such primary obligation or any property constituting direct or indirect security therefor, (b) to advance or provide funds (i) for the payment or discharge of any such primary obligation or (ii) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency or any balance sheet item, level of income or financial condition of the primary obligor, (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 in respect thereof to make payment of such primary obligation or (d) otherwise to assure or hold harmless the owner of any such primary obligation against loss or failure or inability to perform in respect thereof; provided, however, that, with respect to the Borrower and its Subsidiaries, the term Contingent Obligation shall not include endorsements for collection or deposit in the ordinary course of business.  The amount of any Contingent Obligation of any Person shall be deemed to be an amount equal to the maximum amount of such Person’s liability with respect to the stated or determinable amount of the primary obligation for which such Contingent Obligation is incurred or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder).

“Covenant Compliance Worksheet” means a fully completed worksheet in the form of Schedule I to Exhibit 7.1(c).

“Debt Rating” means the long term, unsecured, senior non-credit enhanced debt rating of the  Borrower  by  S&P  and/or  Moody’s;  provided,  however,  that  if  neither  S&P  nor  Moody’s 

4

issues a long-term, unsecured, senior non-credit enhanced rating of the Borrower, then the Debt Rating shall be the Borrower’s issuer corporate credit rating by S&P and/or Moody’s.

“Debtor Relief Laws” means the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.

“Default” means any event, act or condition which with notice or lapse of time, or both, would constitute an Event of Default.

“Default Rate” means an interest rate equal to two percent (2%) plus the rate that otherwise would be applicable (or if no rate is applicable, the Base Rate plus two percent (2%) per annum).

“Defaulting Lender” means any Lender that (a) has failed to fund any portion of the Loans required to be funded by it hereunder within one (1) Business Day of the date required to be funded by it hereunder, unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s determination that one or more of the conditions precedent to funding (each of which conditions precedent, together with any applicable Default, shall be specifically identified in such writing) has not been satisfied, (b) has notified the Borrower or the Administrative Agent in writing that it does not intend to comply with its funding obligations or has made a public statement to that effect with respect to its funding obligations hereunder (unless such writing or public statement states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable Default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has notified the Borrower, the Administrative Agent or any other Lender in writing that it does not intend to comply with any of its funding obligations hereunder or has made a public statement to the effect that it does not intend to comply or has failed to comply with its funding obligations hereunder, or (d) has become or is insolvent or has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment, or has become the subject of a Bail-In Action.

“Dividing Person” has the meaning assigned to it in the definition of “Division”.

“Division” means the division of the assets, liabilities and/or obligations of a Person (the “Dividing Person”) among two or more Persons (whether pursuant to a “plan of division” or similar arrangement), which may or may not include the Dividing Person and pursuant to which the Dividing Person may or may not survive. 

“Dollars” and “$” means dollars in lawful currency of the United States of America.

“EEA Financial Institution” means (a) any institution 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 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.

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“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.

“Electronic Signature” means an electronic sound, symbol, or process attached to, or associated with, a contract or other record and adopted by a Person with the intent to sign, authenticate or accept such contract or record.

“Electronic System” means any electronic system, including e-mail, e-fax, Intralinks®, ClearPar®, Debt Domain, Syndtrak and any other Internet or extranet-based site, whether such electronic system is owned, operated or hosted by the Administrative Agent and any of its Related Parties or any other Person, providing for access to data protected by passcodes or other security system.

“Eligible Assignee” means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund and (d) any other Person (other than a natural person) approved by the Administrative Agent and the Borrower (such approval not to be unreasonably withheld or delayed); provided that (i) the Borrower’s consent is not required during the existence and continuation of a Default or an Event of Default, (ii) approval by the Borrower shall be deemed given if no objection is received by the assigning Lender and the Administrative Agent from the Borrower within five (5) Business Days after notice of such proposed assignment has been delivered to the Borrower and (iii) no Ineligible Institution shall be an Eligible Assignee.

“Environmental Claims” means any and all administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens, accusations, allegations, notices of noncompliance or violation, investigations (other than internal reports prepared by any Person in the ordinary course of its business and not in response to any third party action or request of any kind) or proceedings relating in any way to any actual or alleged violation of or liability under any Environmental Law or relating to any permit issued, or any approval given, under any such Environmental Law (collectively, “Claims”), including, without limitation, (a) any and all Claims by Governmental Authorities for enforcement, cleanup, removal, response, remedial or other actions or damages pursuant to any applicable Environmental Law and (b) any and all Claims by any third party seeking damages, contribution, indemnification, cost recovery, compensation or injunctive relief resulting from Hazardous Substances or arising from alleged injury or threat of injury to human health or the environment.

“Environmental Laws” means any and all federal, state and local laws, statutes, ordinances, rules, regulations, permits, licenses, approvals, rules of common law and orders of courts or Governmental Authorities, relating to the protection of human health or occupational safety or the environment, now or hereafter in effect and in each case as amended from time to time, including, without limitation, requirements pertaining to the manufacture, processing, distribution, use, treatment, storage, disposal, transportation, handling, reporting, licensing, permitting, investigation or remediation of Hazardous Substances, and an “Environmental Law” means any of the foregoing.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and any successor statute, and all rules and regulations from time to time promulgated thereunder.

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“ERISA Affiliate” means any Person who together with the Borrower or any of its Subsidiaries is treated as a single employer within the meaning of Sections 414(b), (c), (m) or (o) of the Code or Section 4001 of ERISA.

“ERISA Event” means the occurrence of any of the following which, individually or in the aggregate, has resulted or could reasonably be expected to result, within a reasonable period of time, in liability of the Borrower in an aggregate amount in excess of the Threshold Amount: (a) a Reportable Event with respect to a Single Employer Plan or a Multiemployer Plan, (b) a complete or partial withdrawal by the Borrower, any of its Subsidiaries or any ERISA Affiliate from a Multiemployer Plan if withdrawal liability is asserted by such plan, or the receipt by the Borrower, any of its Subsidiaries or any ERISA Affiliate of notice from a Multiemployer Plan that it is insolvent pursuant to Section 4241 or 4245 of ERISA or that it intends to terminate or has terminated under Section 4041A of ERISA, (c) the distribution by the Borrower, any of its Subsidiaries or any ERISA Affiliate under Section 4041 or 4041A of ERISA of a notice of intent to terminate any Single Employer Plan or Multiemployer Plan or the taking of any action to terminate any Single Employer Plan or Multiemployer Plan if the plan assets are not sufficient to pay all plan liabilities, (d) the commencement of proceedings by the PBGC under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Single Employer Plan, or the receipt by the Borrower, any of its Subsidiaries or any ERISA Affiliate of a notice from any Multiemployer Plan that such action has been taken by the PBGC with respect to such Multiemployer Plan, (e) the determination that any Single Employer Plan or Multiemployer Plan is considered an at-risk plan or plan in endangered or critical status within the meaning of Sections 430, 431 or 432 of the Code or Sections 303, 304 or 305 of ERISA; (f) the imposition upon the Borrower, any of its Subsidiaries or any ERISA Affiliate of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, or the imposition or threatened imposition of any Lien upon any assets of the Borrower, any of its Subsidiaries or any ERISA Affiliate as a result of any alleged failure to comply with the Code or ERISA in respect of any Single Employer Plan or Multiemployer Plan, or (g) the withdrawal of the Borrower, any of its Subsidiaries or any ERISA Affiliate from a Multiple Employer Plan during a plan year in which it was a substantial employer (as such term is defined in Section 4001(a)(2) of ERISA), or a cessation of operations that is treated as such a withdrawal or the termination of a Multiple Employer Plan, where the Borrower, a Subsidiary or an ERISA Affiliate has liability under Section 4062 or 4063 of ERISA.  

“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.

“Eurodollar Base Rate” means,

(a)    for any interest rate calculation with respect to a Eurodollar Loan, the rate of interest per annum equal to the rate for deposits in Dollars for a period equal to the applicable Interest Period administered by the ICE Benchmark Administration Limited (or any other Person that takes over the administration of such rate) which appears on Reuters Screen LIBOR01 (or any applicable successor or substitute page on such screen) at approximately 11:00 a.m. (London time) two (2) Business Days prior to the first day of the applicable Interest Period (rounded upward, if necessary, to the nearest 1/100th of 1%).  If, for  any  reason,  such  rate  does  not  appear  on  Reuters  Screen  LIBOR01  (or  any applicable successor or substitute page on such screen), then the “Eurodollar Base Rate” shall  be  determined  by  the  Administrative  Agent  to  be  the  applicable interest settlement rate  for  deposits  in  Dollars  in  the  London  interbank  market  administered  by  the  ICE 

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Benchmark Administration Limited (or any other Person that takes over the administration of such rate) as reported by any other generally recognized financial information service selected by the Administrative Agent as of 11:00 a.m. (London time) two (2) Business Days prior to the first day of the applicable Interest Period, and having a maturity equal to such Interest Period, provided that, if no such interest settlement rate administered by the ICE Benchmark Administration Limited (or any other Person that takes on the administration of such rate) is available to the Administrative Agent, the applicable Eurodollar Base Rate for the relevant Interest Period shall instead be the rate determined by the Administrative Agent to be the rate at which U.S. Bank National Association or one of its Affiliate banks offers to place deposits in Dollars with first-class banks in the interbank market at approximately 11:00 a.m. (London time) two (2) Business Days prior to the first day of such Interest Period, in the approximate amount of the relevant Eurodollar Loan and having a maturity equal to such Interest Period;  

(b)    for any interest rate calculation with respect to a Base Rate Loan, the rate of interest per annum equal to the rate for deposits in Dollars in minimum amounts of at least $5,000,000 for a period equal to one month (commencing on the date of determination of such interest rate) administered by the ICE Benchmark Administration Limited (or any other Person that takes over the administration of such rate) which appears on Reuters Screen LIBOR01 (or any applicable successor or substitute page on such screen) at approximately 11:00 a.m. (London time) on such date of determination, or, if such date is not a Business Day, then the immediately preceding Business Day (rounded upward, if necessary, to the nearest 1/100th of 1%).  If, for any reason, such rate does not appear on Reuters Screen LIBOR01 (or any applicable successor or substitute page on such screen) then the “Eurodollar Base Rate” for such Base Rate Loan shall be determined by the Administrative Agent to be the applicable interest settlement rate for deposits in Dollars in the London interbank market administered by the ICE Benchmark Administration (or any other Person that takes over the administration of such rate) as reported by any other generally recognized financial information service selected by the Administrative Agent as of 11:00 a.m. (London time) on such date of determination, and having a maturity equal to one month, provided that, if no such interest settlement rate administered by the ICE Benchmark Administration Limited (or any other Person that takes over the administration of such rate) is available to the Administrative Agent, the applicable Eurodollar Base Rate for such Base Rate Loan shall instead be the rate determined by the Administrative Agent to be the rate at which U.S. Bank National Association or one of its Affiliate banks offers to place deposits in Dollars with first-class banks in the interbank market at approximately 11:00 a.m. (London time) on such date of determination, in the approximate amount of the relevant Base Rate Loan and having a maturity equal to one month; and

(c)    notwithstanding the foregoing, if the Eurodollar Base Rate calculated pursuant to either clause (a) or (b) above shall be less than zero, such rate shall be deemed to be zero for the purposes of this Loan Agreement. 

Each calculation by the Administrative Agent of the Eurodollar Base Rate shall be conclusive and binding for all purposes, absent manifest error.

“Eurodollar Loan” means a Loan bearing interest at a rate determined by reference to the Adjusted Eurodollar Rate. 

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“Eurodollar Rate” means a rate per annum (rounded upwards, if necessary, to the next higher 1/100th of 1%) determined by the Administrative Agent pursuant to the following formula:
	
		
	Eurodollar Rate =
	Eurodollar Base Rate

	 
	1.00-Eurodollar Reserve Percentage

“Eurodollar Reserve Percentage” means, for any day, the percentage (expressed as a decimal and rounded upwards, if necessary, to the next higher 1/100th of 1%) which is in effect for such day as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement (including, without limitation, any basic, supplemental or emergency reserves) in respect of eurocurrency liabilities or any similar category of liabilities for a member bank of the Federal Reserve System in New York City.

“Event of Default” has the meaning set forth in Section 9.1.

“Exchange Act” means the Securities Exchange Act of 1934, and the rules and regulations promulgated thereunder, as amended, modified, succeeded or replaced from time to time.

“Excluded Taxes” means, with respect to the Administrative Agent, any Lender or any other recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) taxes imposed on or measured by its overall net income (however denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable Lending Office is located, (b) any branch profits taxes imposed by the United States or any similar tax imposed by any other jurisdiction in which the Borrower is located, (c) in the case of a Foreign Lender, any withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party hereto (or designates a new Lending Office) or is attributable to such Foreign Lender’s failure or inability (other than as a result of a Change in Law) to comply with Section 3.13(e), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending Office (or assignment), to receive additional amounts from the Borrower with respect to such withholding tax pursuant to Section 3.13(a) and (d) any Taxes imposed under FATCA.

“Existing Revolving Credit Agreements” means (i) that certain Fourth Amendment to and Restatement of Credit Agreement, dated as of October 9, 2018, among the Borrower, the lenders party thereto, and Wells Fargo Bank, National Association, as administrative agent, as amended, modified or supplemented prior to the Closing Date and (ii) that certain Credit Agreement dated as of December 12, 2017, among the Borrower, the lenders party thereto, and U.S. Bank National Association, as administrative agent, as amended, modified or supplemented prior to the Closing Date.

“Existing Term Loan Agreement” means that certain Term Loan Agreement, dated as of July 20, 2017, among the Borrower, the lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent, as amended, modified or supplemented prior to the Closing Date.

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

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“Federal Funds Rate” means, for any day, an interest rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System on such day, as published for such day (or, if such day is not a Business Day, for the immediately preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations at approximately 10:00 a.m. on such day on such transactions received by the Administrative Agent from three (3) Federal funds brokers of recognized standing selected by the Administrative Agent in its sole discretion.  For the avoidance of doubt, if the Federal Funds Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Loan Agreement.

“Financial Officer” means the chief financial officer, principal accounting officer or treasurer of the Borrower.

“Fiscal Quarter” means each of the calendar quarters ending as of the last day of each March, June, September and December.

“Fiscal Year” means the calendar year ending December 31.

“Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes. For purposes of this definition, the United States, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction.

“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 and similar extensions of credit in the ordinary course of its business.

“GAAP” means generally accepted accounting principles as in effect from time to time in the United States of America.  

“Governmental Authority” means any domestic or foreign nation or government, any state or other political subdivision thereof and any central bank thereof, any municipal, local, city or county government, and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any corporation or other entity owned or controlled, through stock or capital ownership or otherwise, by any of the foregoing.

“Hazardous Substances” means any substances or materials (a) that are or become defined as hazardous wastes, hazardous substances, pollutants, contaminants or toxic substances under any Environmental Law, (b) that are defined by any Environmental Law as toxic, explosive, corrosive, ignitable, infectious, radioactive, mutagenic or otherwise hazardous, (c) the presence of which require investigation or response under any Environmental Law, (d) that constitute a nuisance, trespass or health or safety hazard to Persons or neighboring properties, (e) that consist of underground or aboveground storage tanks, whether empty, filled or partially filled with any substance, or (f) that contain, without limitation, asbestos, polychlorinated biphenyls, urea formaldehyde foam insulation, petroleum hydrocarbons, petroleum derived substances or wastes, crude oil, nuclear fuel, natural gas or synthetic gas.

“Hedging Agreements” means, collectively, interest rate protection agreements, equity index agreements, foreign currency exchange agreements, option agreements or other interest or exchange rate or commodity price hedging agreements (other than forward contracts for the delivery of power 

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or gas written by the Borrower to its jurisdictional and wholesale customers in the ordinary course of business).

“Indebtedness” means, with respect to any Person (without duplication), (a) all indebtedness and obligations of such Person for borrowed money or in respect of loans or advances of any kind, (b) all obligations of such Person evidenced by notes, bonds, debentures or similar instruments, (c) all reimbursement obligations of such Person with respect to surety bonds, letters of credit and bankers’ acceptances (in each case, whether or not drawn or matured and in the stated amount thereof), (d) all obligations of such Person to pay the deferred purchase price of property or services, (e) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person, (f) all obligations of such Person as lessee under leases that are or are required to be, in accordance with GAAP, recorded as capital leases, to the extent such obligations are required to be so recorded, (g) the net termination obligations of such Person under any Hedging Agreements, calculated as of any date as if such agreement or arrangement were terminated as of such date in accordance with the applicable rules under GAAP, (h) all Contingent Obligations of such Person, (i) all obligations and liabilities of such Person incurred in connection with any transaction or series of transactions providing for the financing of assets through one or more securitizations or in connection with, or pursuant to, any synthetic lease or similar off-balance sheet financing, (j) the aggregate amount of uncollected accounts receivable of such Person subject at the time of determination to a sale of receivables (or similar transaction) to the extent such transaction is effected with recourse to such Person (whether or not such transaction would be reflected on the balance sheet of such Person in accordance with GAAP) and (k) all indebtedness referred to in clauses (a) through (j) above secured by any Lien on any property or asset owned or held by such Person regardless of whether the indebtedness secured thereby shall have been assumed by such Person or is nonrecourse to the credit of such Person. 

“Indemnified Liabilities” has the meaning set forth in Section 11.5(b).

“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 the Borrower under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

“Indemnitees” has the meaning set forth in Section 11.5(b).

“Ineligible Institution” means (a) a natural person, (b) a Defaulting Lender or any of its Subsidiaries, (c) the Borrower, any of its Subsidiaries or any of its Affiliates, or (d) a company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person or relative(s) thereof.

“Interest Payment Date” means, (a) as to any Eurodollar Loan, the last day of each Interest Period applicable to such Loan, the date of any prepayment of the Loans pursuant to Section 3.3 and the Maturity Date; provided, however, that if any Interest Period for a Eurodollar Loan exceeds three months, the respective dates that fall every three months after the beginning of such Interest Period shall also be Interest Payment Dates and (b) as to any Base Rate Loan, the third Business Day after the end of each Fiscal Quarter, the date of any prepayment of the Loans pursuant to Section 3.3 and the Maturity Date.

“Interest Period” means, as to each Eurodollar Loan, the period commencing on the date such  Eurodollar  Loan  is  disbursed  or  converted  to  or  continued as a Eurodollar Loan and ending 

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on the date one, two, three or six months thereafter, as selected by the Borrower in its Notice of Borrowing or Notice of Continuation/Conversion; provided that:

(i)    any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day;

(ii)    any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and

(iii)    no Interest Period shall extend beyond the Maturity Date.
    
“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, and a “Law” means any of the foregoing.

“Lender” means any of the Persons identified as a “Lender” on the signature pages hereto, and any Eligible Assignee which may become a Lender by way of assignment in accordance with the terms hereof, together with their successors and permitted assigns.

“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 Borrower and the Administrative Agent.

“Lien” means any mortgage, pledge, hypothecation, assignment, security interest, lien (statutory or otherwise), preference, priority, charge or other encumbrance of any nature, whether voluntary or involuntary, including, without limitation, the interest of any vendor or lessor under any conditional sale agreement, title retention agreement, capital lease or any other lease or arrangement having substantially the same effect as any of the foregoing.

“Loan Agreement” has the meaning set forth in the Preamble hereof. 

“Loan Documents” means this Loan Agreement, the Notes, the Notice of Borrowing, any Notice of Continuation/Conversion, and any other document, agreement or instrument entered into or executed in connection with the foregoing.

“Loans” has the meaning set forth in Section 2.1(a).

“Margin Stock” has the meaning ascribed to such term in Regulation U.

“Material Adverse Change” means a material adverse change in the condition (financial or otherwise), operations, business, performance, properties or assets of the Borrower and its Subsidiaries, taken as a whole.

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“Material Adverse Effect” means a material adverse effect upon (a) the business, assets, liabilities (actual or contingent), operations, condition (financial or otherwise) or prospects of the Borrower and its Subsidiaries, taken as a whole, (b) the ability of the Borrower to perform its obligations under this Loan Agreement or any of the other Loan Documents or (c) the legality, validity or enforceability of this Loan Agreement or any of the other Loan Documents or the rights and remedies of the Administrative Agent and the Lenders hereunder and thereunder, provided, however, that a Material Adverse Effect shall not include the effect of a shutdown or closure of the San Juan Generating Station or the Four Corners Power Plant, provided that the Borrower remains in compliance with Section 7.2 of this Loan Agreement.

“Maturity Date” means July 17, 2020.

“Moody’s” means Moody’s Investors Service, Inc. and its successors.

“Multiemployer Plan” means any “multiemployer plan” within the meaning of Section 4001(a)(3) of ERISA to which the Borrower, any of its Subsidiaries or any ERISA Affiliate makes, is making or is accruing an obligation to  make contributions or has made or been obligated to make contributions within the preceding seven (7) years.

“Multiple Employer Plan” means a Single Employer Plan to which the Borrower, any of its Subsidiaries or any ERISA Affiliate and at least one employer other than the Borrower, any of its Subsidiaries or any ERISA Affiliate are contributing sponsors.

“NMPRC” means the New Mexico Public Regulation Commission or any successor commission. 
“Non-Recourse Securitization Indebtedness” means, as of any date of determination, all Indebtedness related to State Approved Securitizations up to a maximum amount of $500,000,000 at any one time; provided that such Indebtedness is non-recourse to the Borrower, other than with respect to Standard Securitization Undertakings.

“Notes” means the promissory notes of the Borrower in favor of each of the Lenders evidencing the Loans provided pursuant to Section 2.1, individually or collectively, as appropriate, as such promissory notes may be amended, modified, supplemented, extended, renewed or replaced from time to time and as evidenced in the form of Exhibit 2.1(d).

“Notice of Borrowing” means a request by the Borrower for a Loan in the form of Exhibit 2.1(b).

“Notice of Continuation/Conversion” means a request by the Borrower to continue an existing Eurodollar Loan to a new Interest Period or to convert a Eurodollar Loan to a Base Rate Loan or a Base Rate Loan to a Eurodollar Loan, in the form of Exhibit 2.3.

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

“Other Taxes” means all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies arising from any payment made hereunder or under any other Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, this Loan Agreement or any other Loan Document.

“PBGC” means the Pension Benefit Guaranty Corporation and any successor thereto.

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“Participant” has the meaning set forth in Section 11.3(d).

“Participant Register” has the meaning set forth in Section 11.3(d).
“PATRIOT Act” means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), as amended.

“Person” means any individual, partnership, joint venture, firm, corporation, limited liability company, association, trust or other enterprise (whether or not incorporated), or any Governmental Authority.

“Prime Rate” means a rate per annum equal to the prime rate of interest announced from time to time by U.S. Bank National Association or its parent (which is not necessarily the lowest rate charged to any customer), changing when and as said prime rate changes.

“Pro Rata Share” means, with respect to each Lender (i) at any time prior to making of the Loans and termination of the Commitments pursuant to Section 2.1, a fraction (expressed as a percentage, carried out to the ninth decimal place), the numerator of which is the amount of the Commitment of such Lender at such time and the denominator of which is the amount of the aggregate Commitments of all Lenders at such time and (ii) at all times after the making of the Loans and termination of the Commitments pursuant to Section 2.1, a fraction (expressed as a percentage, carried out to the ninth decimal place), the numerator of which is the outstanding principal amount of such Lender’s Loans at such time and the denominator of which is the aggregate outstanding principal amount of all Loans at such time.

“Prohibited Transaction” means any transaction described in (a) Section 406 of ERISA that is not exempt by reason of Section 408 of ERISA or by reason of a Department of Labor prohibited transaction individual or class exemption or (b) Section 4975(c) of the Code that is not exempt by reason of Section 4975(c)(2) or 4975(d) of the Code.

“Property” means any right, title or interest in or to any property or asset of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible.

“PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

“Register” has the meaning set forth in Section 11.3(c).

“Regulations T, U and X” means Regulations T, U and X, respectively, of the Federal Reserve Board, and any successor regulations.

“Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the respective directors, officers, employees, agents, advisors and representatives of such Person and such Person’s Affiliates.

“Reportable Event”  means  (a)  any  “reportable  event”  within  the  meaning  of  Section 4043(c) of ERISA for which the notice under Section 4043(a) of ERISA has not been waived by the PBGC  (including  any  failure  to  meet  the  minimum  funding  standard  of,  or  timely  make  any required installment under, Section 412 of the Code or Section 302 of ERISA, regardless of the issuance  of  any  waivers  in  accordance  with  Section  412(d)  of  the  Code), (b) any such “reportable

14

event” subject to advance notice to the PBGC under Section 4043(b)(3) of ERISA, (c) any application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code, and (d) a cessation of operations described in Section 4062(e) of ERISA.

“Required Lenders” means, at any time, Lenders holding in the aggregate more than 50% of the aggregate outstanding principal amount of all Loans and Commitments (or, if all Loans have been repaid in full and the Commitments have been terminated, more than 50% of the aggregate amount of all outstanding Borrower Obligations at such time).

“Requirement of Law” means, with respect to any Person, the organizational documents of such Person and any Law applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject or otherwise pertaining to any or all of the transactions contemplated by this Loan Agreement and the other Loan Documents.

“S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business.

“Sanctioned Country” means, at any time, a country, region or territory which is itself subject to or the target of comprehensive country-wide Sanctions (at the time of this Loan Agreement, the Crimea region of Ukraine, Cuba, Iran, North Korea, Sudan and Syria).

“Sanctioned Person” means, at any time, (a) any Person listed in any publicly-available list of Persons designated as being subject to Sanctions, which lists are maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union or any European Union member state, (b) any Person organized or resident in a Sanctioned Country or (c) any Person known by the Borrower or its Subsidiaries to be owned or controlled by any such Person or Persons described in the foregoing clauses (a) or (b).

“Sanctions” means all economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by OFAC or the U.S. Department of State or (b) the United Nations Security Council, the European Union, or any European Union member state.

“SEC Reports” means (i) the Annual Report on Form 10-K of the Borrower for the Fiscal Year ended December 31, 2017, and (ii) the Quarterly Reports on Form 10-Q of the Borrower for the Fiscal Quarters ended March 31, 2018, June 30, 2018 and September 30, 2018.

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

“Securitization Equity” means, as of any date of determination, with respect to a Subsidiary of the Borrower formed for the purpose of entering into a State Approved Securitization, all of the equity of such Subsidiary, as determined in accordance with GAAP.

“Single Employer Plan” means any “employee pension benefit plan” (within the meaning of Section 3(2) of ERISA) which is covered by Title IV of ERISA, but which is not a Multiemployer Plan and which the Borrower, any Subsidiary or any ERISA Affiliate has maintained, funded or administered for employees at any time within the preceding seven (7) years.

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“Solvent” means, with respect to any Person as of a particular date, that on such date (a) such Person is able to pay its debts and other liabilities, Contingent Obligations and other commitments as they mature in the normal course of business, (b) 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 in their ordinary course, (c) such Person is not engaged in a business or a transaction, and is not about to engage in a business or a transaction, for which such Person’s assets would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which such Person is engaged or is to engage, (d) the fair value of the assets of such Person is greater than the total amount of liabilities, including, without limitation, Contingent Obligations, of such Person and (e) the present fair saleable 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.

“Standard Securitization Undertakings” means representations, warranties, covenants and indemnities entered into by the Borrower or a Subsidiary thereof that are reasonably customary in non-recourse securitization transactions.

“State Approved Securitization” means a securitization financing entered into by the Borrower pursuant to existing or future New Mexico statutory authority and regulatory approval by the NMPRC authorizing the imposition on electric customers of a charge to permit the recovery over time of costs identified by a financing order issued by the NMPRC pursuant to statutory authority.

“Subsidiary” means, as to any Person, (a) any corporation more than 50% of whose stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time, any class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time owned by such Person directly or indirectly through Subsidiaries, and (b) any partnership, association, joint venture or other entity in which such person directly or indirectly through Subsidiaries has more than a 50% equity interest at any time.  Any reference to Subsidiary herein, unless otherwise identified, shall mean a Subsidiary, direct or indirect, of the Borrower.  Any reference to a Subsidiary of the Borrower herein shall not include any Subsidiary that is inactive, has minimal or no assets and does not generate revenues.

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

“Threshold Amount” means $20,000,000.

“Total Assets” means all assets of the Borrower and its Subsidiaries as shown on its most recent quarterly consolidated balance sheet, as determined in accordance with GAAP.

“Type” means, with respect to a Loan, its character as a Base Rate Loan or a Eurodollar Loan.

“U.S. Person” means any Person that is a “United States person” as defined in Section 7701(a)(30) of the Code.

“VIE” has the meaning set forth in Section 1.3(c).

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“Voting Stock” means the Capital Stock of a Person that is then outstanding and normally entitled to vote in the election of directors and other securities of such Person convertible into or exercisable for such Capital Stock (whether or not such securities are then currently convertible or exercisable).

“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.

1.2    Computation of Time Periods and Other Definitional Provisions.

For purposes of computation of periods of time hereunder, the word “from” means “from and including” and the words “to” and “until” each mean “to but excluding.”  References in this Loan Agreement to “Articles”, “Sections”, “Schedules” or “Exhibits” shall be to Articles, Sections, Schedules or Exhibits of or to this Loan Agreement unless otherwise specifically provided.   Any reference herein to any Person shall be construed to include such Person’s successors and assigns (subject to any restrictions on assignment set forth herein) and, in the case of any Governmental Authority, any other Governmental Authority that shall have succeeded to any or all functions thereof.

1.3    Accounting Terms/Calculation of Financial Covenant.

(a)    Except as otherwise expressly provided herein, all accounting terms used herein or incorporated herein by reference shall be interpreted, and all financial statements and certificates and reports as to financial matters required to be delivered to the Administrative Agent or the Lenders hereunder shall be prepared, in accordance with GAAP applied on a consistent basis. Notwithstanding anything to the contrary in this Loan Agreement, for purposes of calculation of the financial covenant set forth in Section 7.2, all accounting determinations and computations thereunder shall be made in accordance with GAAP as in effect as of the date of this Loan Agreement applied on a basis consistent with the application used in preparing the most recent financial statements of the Borrower referred to in Section 4.1(d).  In the event that any changes in GAAP after such date are required to be applied to the Borrower and would affect the computation of the financial covenant contained in Section 7.2, such changes shall be followed only from and after the date this Loan Agreement shall have been amended to take into account any such changes.  

(b)    Notwithstanding any other provision contained herein, all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made (i) without giving effect to any election under Accounting Standards Codification 825-10-25 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of the Borrower or any Subsidiary at “fair value”, as defined therein, (ii) without giving effect to any treatment of Indebtedness in respect of convertible debt instruments under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and, except as specifically provided in the definitions of “Consolidated Capitalization” and “Consolidated Indebtedness,” such Indebtedness shall at all times be valued at the full stated principal amount thereof and (iii) in a manner such that any obligations relating to a lease that was accounted for by a Person as an operating lease as of the Closing Date and any similar lease entered into after the Closing Date by such Person shall be accounted for as obligations relating to an operating lease and not as a capital lease.

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(c)    All references herein to consolidated financial statements of the Borrower and its Subsidiaries or to the determination of any amount for the Borrower and its Subsidiaries on a consolidated basis or any similar reference shall, in each case, be deemed to include each variable interest entity (“VIE”) that the Borrower is required to consolidate pursuant to FASB Accounting Standards Codification Topic 810 - Consolidation - Variable Interest Entities as if such variable interest entity were a Subsidiary as defined herein; provided that the financial covenant in Section 7.2 shall be calculated without consolidation of any VIE to the extent the Borrower or its consolidated Subsidiaries have entered into power purchase agreements with such VIE to serve retail customers as a result of the shutdown or closure of the San Juan Generating Station or the Four Corners Power Plant.

1.4    Time.

All references to time herein shall be references to Eastern Standard Time or Eastern Daylight Time, as the case may be, unless specified otherwise.

1.5    Rounding of Financial Covenant.

Any financial ratios required to be maintained by the Borrower pursuant to this Loan 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).

1.6    References to Agreements and Requirement of Laws.

Unless otherwise expressly provided herein: (a) references to organization documents, agreements (including the Loan Documents) and other contractual instruments shall be deemed to include all subsequent amendments, restatements, extensions, supplements and other modifications thereto, but only to the extent that such amendments, restatements, extensions, supplements and other modifications are not prohibited by any Loan Document and (b) references to any Requirement of Law shall include all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such Requirement of Law.

1.7    Rates.

The Administrative Agent does not warrant or accept responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to the rates in the definition of “Eurodollar Base Rate”.
SECTION 2 
 
CREDIT FACILITY

2.1    Loans.

(a)     Loan.  Subject to the terms and conditions of this Loan Agreement, the Lenders agree to make term loans in Dollars (each a “Loan” and, collectively, the “Loans”) to the Borrower in a single draw on the date hereof in an aggregate principal amount of $250,000,000.  Amounts repaid or prepaid in respect of the Loans may not be reborrowed.  The Commitment of each Lender to make the Loans hereunder shall expire upon the funding of the Loans to the Borrower on the date hereof. 

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(b)    Method of Borrowing.  By no later than (i) 10:00 a.m. on the Closing Date if the requested Borrowing of Loans shall be comprised of Base Rate Loans and (ii) 12:00 noon three (3) Business Days prior to the Closing Date if the requested Borrowing of Loans shall be comprised of Eurodollar Loans, the Borrower shall submit a written Notice of Borrowing in the form of Exhibit 2.1(b) to the Administrative Agent setting forth (A) the amount requested, (B) the date of the requested Borrowing, (C) the Type of Loan, (D) with respect to Loans that will be Eurodollar Loans, the Interest Period applicable thereto, (E) certification that the Borrower has complied, or, in respect of any Borrowing that will consist of Eurodollar Loans, intends to comply, in all respects with Section 5.1 and (F) with respect to Loans that will be Eurodollar Loans, compensation provisions substantially consistent with the terms of Section 3.14.  If the Borrower shall fail to specify (1) an Interest Period in the case of a Eurodollar Loan, then such Eurodollar Loan shall be deemed to have an Interest Period of one month or (2) the Type of Loan requested, then such Loan shall be deemed to be a Base Rate Loan.

(c)    Funding of Loans.  Upon receipt of a Notice of Borrowing, the Administrative Agent shall promptly inform the Lenders as to the terms thereof.  Each such Lender shall make its Pro Rata Share of the requested Loans available to the Administrative Agent in immediately available funds at the Administrative Agent’s Office not later than 12:00 noon on the Closing Date.  Upon satisfaction of the conditions set forth in Section 5.1, the amount of the requested Loans will then be made available to the Borrower by the Administrative Agent by wire transfer of such funds in accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent by the Borrower.
(d)    Term Notes.  At the request of any Lender, the Loans made by such Lender shall be evidenced by a duly executed promissory note of the Borrower to such Lender in substantially the form of Exhibit 2.1(d).

2.2    [Reserved].
 

2.3    Continuations and Conversions.

Subject to the terms below, the Borrower shall have the option, on any Business Day prior to the Maturity Date, to continue existing Eurodollar Loans in whole or in part for a subsequent Interest Period, to convert Base Rate Loans in whole or in part into Eurodollar Loans or to convert Eurodollar Loans in whole or in part into Base Rate Loans.  By no later than 12:00 noon (a) two (2) Business Days prior to the date of the requested conversion of a Eurodollar Loan to a Base Rate Loan and (b) three (3) Business Days prior to the date of the requested continuation of a Eurodollar Loan or conversion of a Base Rate Loan to a Eurodollar Loan, the Borrower shall provide a written Notice of Continuation/Conversion in the form of Exhibit 2.3, setting forth whether the Borrower wishes to continue or convert such Loans.  Notwithstanding anything herein to the contrary, (A) except as provided in Section 3.11, Eurodollar Loans may only be continued or converted into Base Rate Loans on the last day of the Interest Period applicable thereto, (B) Eurodollar Loans may not be continued nor may Base Rate Loans be converted into Eurodollar Loans during the existence and continuation of a Default or an Event of Default and (C) any request to continue a Eurodollar Loan that fails to comply with the terms hereof or any failure to request a continuation of a Eurodollar Loan at the end of an Interest Period shall be deemed a request to convert such Eurodollar Loan to a Base Rate Loan on the last day of the applicable Interest Period.  

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2.4    Minimum Amounts.

Each request for a borrowing, conversion or continuation shall be subject to the requirements that (a) each Eurodollar Loan shall be in a minimum amount of $3,000,000 and in integral multiples of $1,000,000 in excess thereof, (b) each Base Rate Loan shall be in a minimum amount of $1,000,000 and in integral multiples of $100,000 in excess thereof (or the remaining amount of outstanding Loans) and (c) no more than seven Eurodollar Loans shall be outstanding hereunder at any one time.  For the purposes of this Section 2.4, separate Eurodollar Loans that begin and end on the same date, as well as Eurodollar Loans that begin and end on different dates, shall all be considered as separate Eurodollar Loans.

2.5    [Reserved].

2.6    Evidence of Debt.

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.  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 Borrower 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 Borrower hereunder to pay any amount owing with respect to its Borrower Obligations.  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.

SECTION 3 
 
GENERAL PROVISIONS APPLICABLE 
TO LOANS

3.1    Interest.

(a)    Interest Rate.  Subject to Section 3.1(b), (i) all Base Rate Loans shall accrue interest at the Adjusted Base Rate and (ii) all Eurodollar Loans shall accrue interest at the Adjusted Eurodollar Rate.

(b)    Default Rate of Interest.  

(i)     After the occurrence, and during the continuation, of an Event of Default pursuant to Section 9.1(a), the principal of and, to the extent permitted by Law, interest on the Loans and any other amounts owing hereunder or under the other Loan Documents (including without limitation fees and expenses) shall bear interest, payable on demand, at the Default Rate.

(ii)    After the occurrence, and during the continuation, of an Event of Default (other than an Event of Default pursuant to Section 9.1(a)), at the request of the Required Lenders, the principal of and, to the extent permitted by Law, interest on the Loans and any other amounts owing hereunder or under the other Loan Documents (including without limitation fees and expenses) shall bear interest, payable on demand, at the Default Rate.

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(c)    Interest Payments.  Interest on  Loans shall be due and payable in arrears on each Interest Payment Date.

3.2    Payments Generally.

(a)    No Deductions; Place and Time of Payments.  All payments to be made by the Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff.  Except as otherwise expressly provided herein, all payments by the Borrower hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the Administrative Agent’s Office in Dollars and in immediately available funds not later than 2:00 p.m. on the date specified herein.  The Administrative Agent will promptly distribute to each Lender its Pro Rata Share (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative Agent after 2:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue.  Notwithstanding the foregoing, if there exists a Defaulting Lender, each payment by the Borrower to such Defaulting Lender hereunder shall be applied in accordance with Section 3.16(b).

(b)    Payment Dates.  Subject to the definition of “Interest Period,” if any payment to be made by the 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.

(c)    Advances by Administrative Agent.  Unless the Borrower or any Lender has notified the Administrative Agent, prior to the time any payment is required to be made by it to the Administrative Agent hereunder, that the Borrower or such Lender, as the case may be, will not make such payment, the Administrative Agent may assume that the Borrower or such Lender, as the case may be, has timely made such payment and may (but shall not be so required to), in reliance thereon, make available a corresponding amount to the Person entitled thereto.  If and to the extent that such payment was not in fact made to the Administrative Agent in immediately available funds, then:

(i)    if the Borrower failed to make such payment, each Lender shall forthwith on demand repay to the Administrative Agent the portion of such assumed payment that was made available to such Lender in immediately available funds, together with interest thereon in respect of each day from and including the date such amount was made available by the Administrative Agent to such Lender to the date such amount is repaid to the Administrative Agent in immediately available funds at the Federal Funds Rate from time to time in effect; and

(ii)    if any Lender failed to make such payment, such Lender shall forthwith on demand  pay  to  the  Administrative  Agent  the  amount  thereof  in  immediately  available funds, together with interest thereon for the period from the date such amount was made available  by  the  Administrative  Agent  to  the  Borrower  to  the  date  such  amount  is recovered by the Administrative Agent (the “Compensation Period”) at a rate per annum equal  to  the  Federal  Funds  Rate  from  time  to  time  in  effect.   If  such  Lender  pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in the applicable Borrowing.  If such Lender does not pay such amount forthwith  upon  the  Administrative  Agent’s  demand  therefor,  the  Administrative  Agent may  make  a  demand  therefor  upon  the  Borrower,  and  the  Borrower  shall  pay  such 

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amount to the Administrative Agent, together with interest thereon for the Compensation Period at a rate per annum equal to the rate of interest applicable to such Borrowing.  Nothing herein shall be deemed to relieve any Lender from its obligation to fulfill its Commitment or to prejudice any rights which the Administrative Agent or the Borrower may have against any Lender as a result of any default by such Lender hereunder.

A notice of the Administrative Agent to any Lender or the Borrower with respect to any amount owing under this subsection (c) shall be conclusive, absent manifest error.

(d)    Several Obligations.  The obligations of the Lenders hereunder to make Loans are several and not joint.  The failure of any Lender to make any Loan on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Loan.

(e)    Funding Offices.  Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner.

3.3    Prepayments.

Voluntary Prepayments.  The Borrower shall have the right to prepay the Loans in whole or in part from time to time without premium or penalty; provided, however, that (i) all prepayments under this Section 3.3(a) shall be subject to Section 3.14, (ii) Eurodollar Loans may only be prepaid on three (3) Business Days’ prior written notice to the Administrative Agent, (iii) each such partial prepayment of Eurodollar Loans shall be in the minimum principal amount of $1,000,000 and integral multiples of $1,000,000, and (iv) each such partial prepayment of Base Rate Loans shall be in the minimum principal amount of $500,000 and integral multiples of $100,000, or, in the case of clauses (iii) and (iv), if less than such minimum amounts, the entire principal amount thereof then outstanding.  Amounts prepaid pursuant to this Section 3.3(a) shall be applied as the Borrower may elect based on the Lenders’ Pro Rata Shares; provided, however, if the Borrower fails to specify, such prepayment shall be applied by the Administrative Agent, subject to Section 3.7, in such manner as it deems reasonably appropriate. 

3.4    [Reserved].

3.5    Payment in Full at Maturity.

On the Maturity Date, the entire outstanding principal balance of all Loans, together with accrued but unpaid interest and all fees and other sums owing under the Loan Documents, shall be due and payable in full, unless accelerated sooner pursuant to Section 9.2; provided that if the Maturity Date is not a Business Day, then such principal, interest, fees and other sums shall be due and payable in full on the next preceding Business Day.

3.6    Computations of Interest and Fees.

(a)    Calculation of Interest and Fees.  Except for Base Rate Loans that are based upon the Prime Rate, in which case interest shall be computed on the basis of the actual number of days elapsed over a year of 365 or 366 days, as the case may be, all computations of interest and fees hereunder shall be made on the basis of the actual number of days elapsed over a year of 360 days.  Interest shall accrue from and including the first date of Borrowing (or continuation or conversion) to  but  excluding  the  last  day  occurring  in  the  period  for  which  such  interest is payable.  Each 

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determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error.

(b)    Usury.  It is the intent of the Lenders and the Borrower to conform to and contract in strict compliance with applicable usury Law from time to time in effect.  All agreements between the Lenders and the Borrower are hereby limited by the provisions of this subsection which shall override and control all such agreements, whether now existing or hereafter arising and whether written or oral.  In no way, nor in any event or contingency (including but not limited to prepayment or acceleration of the maturity of any Borrower Obligation), shall the interest taken, reserved, contracted for, charged, or received under this Loan Agreement, under the Notes or otherwise, exceed the maximum nonusurious amount permissible under applicable Law.  If, from any possible construction of any of the Loan Documents or any other document, interest would otherwise be payable in excess of the maximum nonusurious amount, any such construction shall be subject to the provisions of this subsection and such documents shall be automatically reduced to the maximum nonusurious amount permitted under applicable Law, without the necessity of execution of any amendment or new document.  If any Lender shall ever receive anything of value which is characterized as interest on the Loans under applicable Law and which would, apart from this provision, be in excess of the maximum nonusurious amount, an amount equal to the amount which would have been excessive interest shall, without penalty, be applied to the reduction of the principal amount owing on the Loans and not to the payment of interest, or refunded to the Borrower or the other payor thereof if and to the extent such amount which would have been excessive exceeds such unpaid principal amount of the Loans.  The right to demand payment of the Loans or any other Indebtedness evidenced by any of the Loan Documents does not include the right to accelerate the payment of any interest which has not otherwise accrued on the date of such demand, and the Lenders do not intend to charge or receive any unearned interest in the event of such demand.  All interest paid or agreed to be paid to the Lenders with respect to the Loans shall, to the extent permitted by applicable Law, be amortized, prorated, allocated, and spread throughout the full stated term (including any renewal or extension) of the Loans so that the amount of interest on account of the Loans does not exceed the maximum nonusurious amount permitted by applicable Law.

3.7    Pro Rata Treatment.

Except to the extent otherwise provided herein, each Borrowing, each payment or prepayment of principal of any Loan, each payment of interest, each payment of fees (other than administrative fees, if any, paid to the Administrative Agent) and each conversion or continuation of any Loans, shall be allocated pro rata among the relevant Lenders in accordance with their Pro Rata Shares; provided that, if any Lender shall have failed to pay its Pro Rata Share of any Loan, then any amount to which such Lender would otherwise be entitled pursuant to this Section 3.7 shall instead be payable to the Administrative Agent until the share of such Loan not funded or purchased by such Lender has been repaid.  In the event any principal, interest, fee or other amount paid to any Lender pursuant to this Loan Agreement or any other Loan Document is rescinded or must otherwise be returned by the Administrative Agent, (a) such principal, interest, fee or other amount that had been satisfied by such payment shall be revived, reinstated and continued in full force and effect as if such payment had not occurred and (b) such Lender shall, upon the request of the Administrative Agent, repay to the Administrative Agent the amount so paid to such Lender, with interest for the period commencing on the date such payment is returned by the Administrative Agent until the date the Administrative Agent receives such repayment at a rate per annum equal to the Federal Funds Rate if repaid within two (2) Business Days after such request and thereafter the Base Rate.

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3.8    Sharing of Payments.

The Lenders agree among themselves that, except to the extent otherwise provided herein, in the event that any Lender shall obtain payment in respect of any Loan or any other obligation owing to such Lender under this Loan Agreement through the exercise of a right of setoff, banker’s lien or counterclaim, or pursuant to a secured claim under Section 506 of the Bankruptcy Code or other security or interest arising from, or in lieu of, such secured claim, received by such Lender under any applicable Debtor Relief Law or other similar Law or otherwise, or by any other means, in excess of its Pro Rata Share of such payment as provided for in this Loan Agreement, such Lender shall promptly pay in cash or purchase from the other Lenders a participation in such Loans and other obligations in such amounts, and make such other adjustments from time to time, as shall be equitable to the end that all Lenders share such payment in accordance with their Pro Rata Shares.  The Lenders further agree among themselves that if payment to a Lender obtained by such Lender through the exercise of a right of setoff, banker’s lien, counterclaim or other event as aforesaid shall be rescinded or must otherwise be returned, each Lender which shall have shared the benefit of such payment shall, by payment in cash or a repurchase of a participation theretofore sold, return its share of that benefit (together with its share of any accrued interest payable with respect thereto) to each Lender whose payment shall have been rescinded or otherwise returned.  The Borrower agrees that (a) any Lender so purchasing such a participation may, to the fullest extent permitted by Law, exercise all rights of payment, including setoff, banker’s lien or counterclaim, with respect to such participation as fully as if such Lender were a holder of such Loan or other obligation in the amount of such participation and (b) the Borrower Obligations that have been satisfied by a payment that has been rescinded or otherwise returned shall be revived, reinstated and continued in full force and effect as if such payment had not occurred.  Except as otherwise expressly provided in this Loan Agreement, if any Lender or the Administrative Agent shall fail to remit to any other Lender an amount payable by such Lender or the Administrative Agent to such other Lender pursuant to this Loan Agreement on the date when such amount is due, such payments shall be made together with interest thereon for each date from the date such amount is due until the date such amount is paid to the Administrative Agent or such other Lender at a rate per annum equal to the Federal Funds Rate.  If under any applicable Debtor Relief Law or other similar Law, any Lender receives a secured claim in lieu of a setoff to which this Section 3.8 applies, such Lender shall, to the extent practicable, exercise its rights in respect of such secured claim in a manner consistent with the rights of the Lenders under this Section 3.8 to share in the benefits of any recovery on such secured claim.

Notwithstanding the foregoing, if there exists a Defaulting Lender, all amounts received by such Defaulting Lender hereunder shall be applied in accordance with Section 3.16(b).

3.9    Capital Adequacy.

If any Lender determines that any Change in Law has or would have the effect of reducing the rate of return on the capital or assets of such Lender or any corporation controlling such Lender as a consequence of such Lender’s obligations hereunder (taking into consideration its policies with respect to capital adequacy, liquidity requirements and such Lender’s desired return on capital), then from time to time upon demand of such Lender (with a copy of such demand to the Administrative Agent), the Borrower shall pay to such Lender such additional amounts as will compensate such Lender for such reduction; provided that such determination to charge such additional amounts to the Borrower shall be made in good faith (and not on an arbitrary or capricious basis) and consistent with other similarly situated customers of the applicable Lender after consideration of such factors as such Lender then reasonably determines to be relevant.

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3.10    Eurodollar Provisions.

(a)    If the Administrative Agent determines (which determination shall be conclusive and binding upon the Borrower) in connection with any request for a Eurodollar Loan or a conversion to or continuation thereof that (i) deposits in Dollars are not being offered to banks in the applicable offshore interbank market for the applicable amount and Interest Period of such Eurodollar Loan, (ii) adequate and reasonable means do not exist for determining the Eurodollar Rate for such Eurodollar Loan, or (iii) the Eurodollar Rate for such Eurodollar Loan does not adequately and fairly reflect the cost to the Lenders of funding such Eurodollar Loan, the Administrative Agent will promptly notify the Borrower and the Lenders.  Thereafter, the obligation of the Lenders to make or maintain Eurodollar Loans shall be suspended until the Administrative Agent revokes such notice.  Upon receipt of such notice, the Borrower may revoke any pending Notice of Borrowing or Notice of Continuation/Conversion with respect to Eurodollar Loans or, failing that, will be deemed to have converted such request into a request for a Borrowing of or, to the extent permitted hereunder, conversion into a Base Rate Loan in the amount specified therein.

(b)    In the event ICE Benchmark Administration Limited (or any Person that takes over the administration of such rate) discontinues its administration and publication of interest settlement rates for deposits in Dollars, as determined by the Administrative Agent (which determination shall be conclusive absent manifest error), then (i) the Administrative Agent and the Borrower shall seek to jointly agree upon an alternate rate of interest to the Eurodollar Base Rate that gives due consideration to the then prevailing market convention for determining a rate of interest for syndicated loans in the United States at such time, and the Administrative Agent and the Borrower shall enter into an amendment to this Loan Agreement to reflect such alternate rate of interest and such other related changes to this Loan  Agreement as may be applicable; provided that, notwithstanding anything to the contrary in Section 11.6, such amendment shall become effective without any further action or consent of any other party to this Loan Agreement so long as the Administrative Agent shall not have received, within five (5) Business Days of the date a copy of such amendment is provided to the Lenders, a written notice from the Required Lenders stating that such Required Lenders object to such amendment and (ii) until an alternate rate of interest shall be determined in accordance with this clause (b), (x) any request pursuant to Section 2.3 that requests the conversion of Base Rate Loans to Eurodollar Loans, or continuation of any Eurodollar Loans, shall be ineffective and any such Borrowing shall be continued as or converted to, as the case may be, a Base Rate Loan, and (y) if any request pursuant to Section 2.1 requests a Borrowing of Eurodollar Loans, such Borrowing shall be made as a Borrowing of Base Rate Loans; provided that, if such alternate rate of interest shall be less than zero, such rate shall be deemed to be zero for the purposes of this Loan Agreement.

3.11    Illegality.

If any Lender determines that any Requirement of 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 make, maintain or fund Loans the interest rate on which is determined by reference to the Eurodollar Rate, or  materially  restricts  the  authority  of  such  Lender  to  purchase  or  sell,  or  to  take  deposits  of  Dollars in the London interbank market, or to determine or charge interest rates based upon the Eurodollar Rate, then, on notice thereof by such Lender to the Borrower through the Administrative Agent, any obligation of such  Lender  to  make  or  continue  Eurodollar  Loans  or  Base  Rate  Loan  as  to  which  the  interest  rate is determined with reference to the Eurodollar Base Rate or to convert Base Rate Loans to Eurodollar Loans shall be suspended until such Lender notifies the Administrative Agent and the Borrower that the circumstances  giving  rise  to  such  determination  no  longer  exist.   Upon  receipt  of  such  notice,  the Borrower  shall,  upon  demand  to  the  Borrower  from  such  Lender  (with  a  copy  to  the  Administrative Agent),  prepay  or,  if  applicable,  convert  all  Eurodollar  Loans of such Lender to Base Rate Loans as to 

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which the interest rate is not determined with reference to the Eurodollar Base Rate, either on the last day of the Interest Period thereof, if such Lender may lawfully continue to maintain such Eurodollar Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such Eurodollar Loans.  Upon any such prepayment or conversion, the Borrower shall also pay interest on the amount so prepaid or converted, together with any amounts due with respect thereto pursuant to Section 3.14.

3.12    Requirements of Law.

If the Administrative Agent or any Lender determines that as a result of any Change in Law, there shall be any increase in the cost to the Administrative Agent or such Lender of agreeing to make or making, funding, continuing, converting or maintaining Loans, or a reduction in the amount received or receivable by the Administrative Agent or such Lender in connection with any of the foregoing (excluding for purposes of this Section 3.12 any such increased costs or reduction in amount resulting from (a) Indemnified Taxes or Other Taxes covered by Section 3.13 and the imposition of or change in the rate of any Excluded Taxes and (b) the Eurodollar Reserve Percentage covered by the definition of Eurodollar Rate), then from time to time, upon demand of the Administrative Agent or such Lender (through the Administrative Agent), the Borrower shall pay to the Administrative Agent or such Lender such additional amounts as will compensate the Administrative Agent or such Lender for such increased cost or reduction in yield; provided that, such determination to charge such additional amounts to the Borrower shall be made in good faith (and not on an arbitrary or capricious basis) and consistent with other similarly situated customers of the Administrative Agent or applicable Lender after consideration of such factors as the Administrative Agent or such Lender then reasonably determines to be relevant.

3.13    Taxes. 

(a)    Payments Free of Taxes.  Except as required by applicable Law, any and all payments by or on account of any obligation of the Borrower hereunder or under any other Loan Document shall be made free and clear of and without reduction or withholding for any Taxes; provided that if the Borrower shall be required by applicable Law to deduct any Indemnified Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section) the Administrative Agent or the applicable Lender, as the case may be, receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall timely pay the full amount deducted to the relevant Governmental Authority in accordance with applicable Law.

(b)    Payment of Other Taxes by the Borrower.  Without limiting the provisions of paragraph (a) above, the Borrower shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable Law.

(c)    Indemnification by the Borrower.   The  Borrower  shall  indemnify  the Administrative  Agent  and  each  Lender,  within  ten  (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) payable or paid by the Administrative Agent or such  Lender  or  required  to  be  withheld  or  deducted  from  a  payment  to  the  Administrative  Agent  or such  Lender  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; provided that the Borrower shall not be obligated to indemnify the Administrative Agent or any Lender for any amount in respect of any such penalties, interest or reasonable  expenses  if  written  demand  therefor  was  not  made  by  the  Administrative  Agent or  such  Lender  within  180  days  from  the  date  on  which  such  party  makes  payment  for such 

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penalties, interest or expenses; provided further that the foregoing limitation shall not apply to any such penalties, interest or reasonable expenses arising out of the retroactive application of any such Indemnified Tax.  A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.  In addition, the Borrower shall indemnify the Administrative Agent and each Lender, within ten (10) days after demand therefor, for any incremental Taxes that may become payable by such Administrative Agent or Lender (or its beneficial owners) as a result of any failure of the Borrower to pay any Taxes when due to the appropriate Governmental Authority or to deliver to such Administrative Agent, pursuant to clause (d) below, documentation evidencing the payment of Taxes.

(d)    Evidence of Payments.  As soon as practicable after any payment of Indemnified Taxes by the Borrower to a Governmental Authority, the Borrower 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.

(e)    Status of Lenders.  

(i)  Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which the Borrower is resident for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments hereunder or under any other Loan Document shall deliver to the Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable Law or reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation prescribed by applicable Law as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable Law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower 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 the documentation described 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 the Lender.  

(ii) Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person,

(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Loan Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

(B)  any Foreign Lender shall deliver to the Borrower 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 Loan Agreement (and from time to time

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thereafter upon the request of the Borrower or the Administrative Agent, but only if such Foreign Lender is legally entitled to do so), whichever of the following is applicable:

(i)  duly completed copies of IRS Form W-8BEN or IRS Form W-8 BEN-E claiming eligibility for benefits of an income tax treaty to which the United States is a party;

(ii)  duly completed copies of IRS Form W-8ECI;

(iii)  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 to the effect that such Foreign Lender is not (A) a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code and (y) duly completed copies of IRS Form W-8BEN or IRS Form W-8BEN-E; or

(iv) any other form prescribed by applicable Law as a basis for claiming exemption from or a reduction in United States Federal withholding tax duly completed together with such supplementary documentation as may be prescribed by applicable Law to permit the Borrower to determine the withholding or deduction required to be made.

(C)  If a payment made to a Lender under any Loan 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 Borrower and the Administrative Agent at the time or times prescribed by Law and at such time or times reasonably requested by the Borrower 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 Borrower or the Administrative Agent as may be necessary for the Borrower 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 (C), “FATCA” shall include any amendments made to FATCA after the date of this Loan 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 or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

(f)    Treatment of Certain Refunds.   If  the  Administrative  Agent  or  a  Lender determines, in its sole discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified pursuant to this Section (including additional amounts paid by the Borrower  pursuant  to  this  Section),  it  shall  pay  to  the  applicable  indemnifying  party  an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, under this Section with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent or such Lender, as the case may be, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided that the applicable indemnifying party, upon the request of the Administrative  Agent  or  such  Lender,  agrees  to  repay  the  amount  paid  over  pursuant  to  this Section  (plus  any  penalties,  interest  or  other  charges  imposed  by  the  relevant  Governmental 

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Authority) to the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph (f), in no event will the Administrative Agent or any Lender be required to pay any amount to an indemnifying party pursuant to this paragraph (f) the payment of which would place the Administrative Agent or Lender in a less favorable net after-Tax position than the Administrative Agent or Lender would have been in if the indemnification payments or additional amounts giving rise to such refund had never been paid.  This paragraph shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other information relating to its taxes which it deems confidential) to the Borrower or any other Person.

(g)    Indemnification of the Administrative Agent.  Each Lender shall severally indemnify the Administrative Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 11.3(d) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan 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 Loan 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 paragraph (g).

(h)    Survival.  Without prejudice to the survival of any other agreement of the Borrower hereunder, the agreements and obligations contained in this Section shall survive the resignation and/or replacement of the Administrative Agent, the replacement of a Lender and the satisfaction, discharge or payment in full of the Borrower Obligations and the termination of the Commitments.

3.14    Compensation.

Upon the written demand of any Lender, the Borrower shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense incurred by it as a result of:

(a)    any continuation, conversion, payment or prepayment of any Eurodollar Loan on a day other than the last day of the Interest Period for such Eurodollar Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise); or

(b)    any failure by the Borrower (for a reason other than the failure of such Lender to make a Eurodollar Loan) to prepay, borrow, continue or convert any Eurodollar Loan on the date or in the amount previously requested by the Borrower.

The amount each such Lender shall be compensated pursuant to this Section 3.14 shall include, without limitation, (i) any loss incurred by such Lender in connection with the re‐employment of funds prepaid, repaid, not borrowed or paid, as the case may be and (ii) any reasonable out‐of‐pocket expenses (including the reasonable fees and expenses of legal counsel) incurred and reasonably attributable thereto.

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For purposes of calculating amounts payable by the Borrower to the Lenders under this Section 3.14, each Lender shall be deemed to have funded each Eurodollar Loan made by it at the Eurodollar Rate for such Loan by a matching deposit or other borrowing in the London interbank market for a comparable amount and for a comparable period, whether or not such Eurodollar Loan was in fact so funded.
    
3.15    Determination and Survival of Provisions.

All determinations by the Administrative Agent or a Lender of amounts owing under Sections 3.9 through 3.14, inclusive, shall, absent manifest error, be conclusive and binding on the parties hereto and all amounts owing thereunder shall be due and payable within ten (10) Business Days of demand therefor.  In determining such amount, the Administrative Agent or such Lender may use any reasonable averaging and attribution methods.  Section 3.9 through 3.14, inclusive, shall survive the termination of this Loan Agreement and the payment of all Borrower Obligations.

3.16    Defaulting Lenders. 

Notwithstanding anything to the contrary contained in this Loan 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 Law:

(a)    Waivers and Amendments.  Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Loan Agreement shall be restricted as set forth in Section 11.6.

(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, or otherwise, and including any amounts made available to the Administrative Agent for the account of such Defaulting Lender pursuant to Section 11.2), 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, as the Borrower 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 Loan Agreement, as determined by the Administrative Agent; third, if so determined by the Administrative Agent and the Borrower, to be held in a non-interest bearing deposit account and released in order to satisfy obligations of such Defaulting Lender to fund Loans under this Loan Agreement, fourth, to the payment of any amounts owing to the Administrative Agent or the Lenders as a result of any judgment of a court of competent jurisdiction obtained by the Administrative Agent or any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Loan Agreement; fifth, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Loan Agreement; and sixth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (i) 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 (ii) such Loans were made at a time when the conditions set forth in Section 5.1 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.  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 pursuant to this Section 3.16(b) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

    

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(c)    Defaulting Lender Cure.  If the Borrower and the Administrative Agent agree in writing in their sole discretion that a Defaulting Lender should no longer be deemed to be a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the date specified in such notice and subject to any conditions set forth therein, that Lender will, to the extent applicable, purchase 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 to be held on a pro rata basis by the Lenders in accordance with their Pro Rata Shares, 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 Borrower while such 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 such Lender’s having been a Defaulting Lender.

3.17    Mitigation Obligations.

If any Lender requests compensation under Section 3.9 or Section 3.12 or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.13 or if any Lender gives a notice pursuant to Section 3.11, then, at the request of the Borrower, such Lender shall 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 3.9, Section 3.12 or Section 3.13, as the case may be, in the future or eliminate the need for the notice pursuant to Section 3.11, as applicable, and (ii) in each case, would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

SECTION 4 
 
CONDITIONS PRECEDENT 

4.1    Closing Conditions.

The obligation of the Lenders to enter into this Loan Agreement and to make the Loans on the Closing Date is subject to satisfaction of the following conditions:

(a)    Executed Loan Documents.  Receipt by the Administrative Agent of duly executed copies of:  (i) this Loan Agreement, (ii) the Notes (to the extent required by the Lenders), and (iii) the Notice of Borrowing, each in form and substance reasonably acceptable to the Lenders in their sole discretion.

(b)    Authority Documents.  Receipt by the Administrative Agent of the following:

(i)    Organizational Documents.  Copies of the articles of incorporation of the Borrower certified to be true and complete as of a recent date by the appropriate Governmental Authority of the state or other jurisdiction of its formation and copies of the bylaws of the Borrower certified by a secretary or assistant secretary (or the equivalent) of the Borrower to be true and correct as of the Closing Date.

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(ii)    Resolutions.  Copies of resolutions of the board of directors of the Borrower approving and adopting this Loan Agreement and the other Loan Documents to which it is a party, the transactions contemplated herein and therein and authorizing execution and delivery hereof and thereof, certified by a secretary or assistant secretary (or the equivalent) of the Borrower to be true and correct and in full force and effect as of the Closing Date.

(iii)    Good Standing.  Copies of certificates of good standing, existence or its equivalent with respect to the Borrower certified as of a recent date by the appropriate Governmental Authority of the state or other jurisdiction of its formation.

(iv)    Incumbency.  An incumbency certificate of the Borrower certified by a secretary or assistant secretary (or the equivalent) of the Borrower to be true and correct as of the Closing Date.

(c)    Opinions of Counsel.   Receipt by the Administrative Agent of opinions of counsel from counsel to the Borrower (which may include in-house counsel with respect to matters of New Mexico law), in form and substance acceptable to the Administrative Agent, addressed to the Administrative Agent and the Lenders and dated as of the Closing Date.

(d)    Financial Statements.  Receipt by the Administrative Agent of a copy of (i) the annual consolidated financial statements (including balance sheets, income statements and cash flow statements) of the Borrower and its Subsidiaries for Fiscal Years 2016 and 2017, audited by independent public accountants of recognized national standing, (ii) the consolidated balance sheet, income statement and statement of cash flows of the Borrower and its Subsidiaries for the Fiscal Quarter ended September 30, 2018 and (iii) such other financial information regarding the Borrower as the Administrative Agent may reasonably request.  The Administrative Agent acknowledges that the items described in clauses (i) and (ii) above have been posted on the Borrower’s website at the website address listed on Schedule 11.1 and are therefore deemed to have been received by the Administrative Agent.

(e)    Due Diligence.  The Administrative Agent and the Lenders shall have completed all due diligence with respect to the Borrower and its Subsidiaries and the transactions contemplated by this Loan Agreement and the other Loan Documents, in scope and determination reasonably satisfactory to the Administrative Agent and the Lenders.

(f)    Material Adverse Effect.  Since December 31, 2017, except as disclosed in the SEC Reports, (i) there shall have been no development or event relating to or affecting the Borrower or any of its Subsidiaries that has had or could be reasonably expected to have a Material Adverse Effect and (ii) no Material Adverse Change shall have occurred in the facts and information regarding the Borrower and its Subsidiaries as disclosed in the SEC Reports.

(g)    Absence of Market Disruption.  There shall not have occurred a material adverse change in or material disruption of conditions in the financial, banking or capital markets which the Administrative Agent and the Arranger, in their sole discretion, deem material in connection with the syndication of the Loan Agreement.

(h)    Litigation.  There shall not exist any material order, decree, judgment, ruling or injunction or any material pending or threatened action, suit, investigation or proceeding against the Borrower or any of its Subsidiaries except as disclosed in the SEC Reports. 

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(i)    Consents.  All necessary governmental, shareholder and third party consents and approvals, if any, with respect to this Loan Agreement and the Loan Documents and the transactions contemplated herein and therein have been received and no condition or Requirement of Law exists which would reasonably be likely to restrain, prevent or impose any material adverse conditions on the transactions contemplated hereby and by the other Loan Documents.

(j)    Officer’s Certificates.  Receipt by the Administrative Agent of a certificate or certificates executed by a Financial Officer or an Authorized Officer of the Borrower as of the Closing Date stating that (i) the Borrower and each of its Subsidiaries are in compliance in all material respects with all existing material financial obligations and all material Requirements of Law, (ii) there does not exist any material order, decree, judgment, ruling or injunction or any material pending or threatened action, suit, investigation or proceeding against the Borrower or any of its Subsidiaries except as disclosed in the SEC Reports, (iii) the financial statements and information delivered to the Administrative Agent on or before the Closing Date were prepared in good faith and in accordance with GAAP and (iv) immediately after giving effect to this Loan Agreement, the other Loan Documents and all the transactions contemplated herein or therein to occur on such date, (A) the Borrower is Solvent, (B) no Default or Event of Default exists, (C) all representations and warranties contained herein and in the other Loan Documents are true and correct in all material respects, (D) since December 31, 2017, except as disclosed in the SEC Reports, there has been no development or event relating to or affecting the Borrower or any of its Subsidiaries that has had or could be reasonably expected to have a Material Adverse Effect, and no Material Adverse Change has occurred in the facts and information regarding the Borrower and its Subsidiaries as disclosed in the SEC Reports and (E) the Borrower is in compliance with the financial covenant set forth in Section 7.2, as of September 30, 2018, as demonstrated in the Covenant Compliance Worksheet attached to such certificate.

(k)    Account Designation Letter.  Receipt by the Administrative Agent of an executed counterpart of the Account Designation Letter.

(l)     PATRIOT Act.  The Borrower shall have provided to the Administrative Agent and the Lenders the documentation and other information reasonably requested by the Administrative Agent in order to comply with requirements of the PATRIOT Act and the Beneficial Ownership Regulation. 

(m)    Fees and Expenses.  Unless waived by the Person entitled thereto, payment by the Borrower of all fees and expenses owed by it to the Administrative Agent, the Arranger and the Lenders on or before the Closing Date.

(n)    Termination of Existing Term Loan Agreement.  Evidence reasonably satisfactory to the Administrative Agent of the termination and cancellation and repayment of all indebtedness and other obligations under the Existing Term Loan Agreement, which repayment shall occur substantially concurrently with the funding of the Loans hereunder and the application of the Loan proceeds in whole or in part to repay such indebtedness.

(o)    Other.  Receipt by the Lenders of such other documents, instruments, agreements or information as reasonably requested by any Lender.

Without limiting the generality of the provisions of Section 10.4, for purposes of determining compliance  with  the  conditions  specified  in  this  Section,  each  Lender  that  has  signed  this  Loan Agreement  shall  be  deemed  to  have  consented  to,  approved  or  accepted  or  to  be  satisfied with, each 

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document or other matter required hereunder 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 objection thereto. 

SECTION 5 
 
CONDITIONS TO FUNDING OF LOANS

5.1    Funding Requirements.

In addition to the conditions precedent set forth in Section 4.1 of this Loan Agreement, the Lenders shall not be obligated to make the Loans unless the following conditions are satisfied as of the Closing Date:

(a)    Notice.  The Borrower shall have delivered a Notice of Borrowing, duly executed and completed, by the time specified in Section 2.1.
(b)    Representations and Warranties.  The representations and warranties made by the Borrower in any Loan Document are true and correct in all material respects (except that any representation and warranty that is qualified by materiality shall be true and correct in all respects) at and as if made as of such date except to the extent they expressly and exclusively relate to an earlier date.
(c)    No Default.  No Default or Event of Default shall exist and be continuing either prior to or after giving effect to the requested Borrowing.
The delivery of the Notice of Borrowing shall constitute a representation and warranty by the Borrower of the correctness of the matters specified in subsections (b) and (c) above.

SECTION 6 
 
REPRESENTATIONS AND WARRANTIES

To induce the Administrative Agent and the Lenders to enter into this Loan Agreement and to induce the Lenders to extend the credit contemplated hereby, the Borrower represents and warrants to the Administrative Agent and the Lenders as follows:

6.1    Organization and Good Standing.

Each of the Borrower and its Subsidiaries (a) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (b) is duly qualified and in good standing as a foreign entity authorized to do business in every other jurisdiction where the failure to so qualify would have a Material Adverse Effect and (c) has the requisite power and authority to own its properties and to carry on its business as now conducted and as proposed to be conducted.

6.2    Due Authorization.

The Borrower (a) has the requisite power and authority to execute, deliver and perform this Loan Agreement  and  the  other  Loan  Documents  and  to  incur  the obligations herein and therein provided for 

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and (b) has been authorized by all necessary action to execute, deliver and perform this Loan Agreement and the other Loan Documents.

6.3    No Conflicts.

Neither the execution and delivery of this Loan Agreement and the other Loan Documents, nor the consummation of the transactions contemplated herein and therein, nor performance of and compliance with the terms and provisions hereof and thereof by the Borrower will (a) violate or conflict with any provision of its organizational documents, (b) violate, contravene or conflict with any law, regulation (including without limitation, Regulation U and Regulation X), order, writ, judgment, injunction, decree or permit applicable to it, (c) violate, contravene or conflict with contractual provisions of, or cause an event of default under, any indenture, loan agreement, mortgage, deed of trust, contract or other agreement or instrument to which it is a party or by which it may be bound, the violation of which would have or would be reasonably expected to have a Material Adverse Effect or (d) result in or require the creation of any Lien upon or with respect to its properties.

6.4    Consents.

Other than the filing of annual short-term financing plans with the NMPRC in the normal course of business, and the NMPRC’s actions thereon, no consent, approval, authorization or order of, or filing, registration or qualification with, any court or Governmental Authority or third party is required in connection with the execution, delivery or performance of this Loan Agreement or any of the other Loan Documents that has not been obtained or completed.

6.5    Enforceable Obligations.

This Loan Agreement and the other Loan Documents have been duly executed and delivered and constitute the legal, valid and binding obligations of the Borrower enforceable against the Borrower in accordance with their respective terms, except as may be limited by Debtor Relief Laws or similar laws affecting creditors’ rights generally or by general equitable principles.

6.6    Financial Condition.

The financial statements delivered to the Lenders pursuant to Section 4.1(d) and pursuant to Sections 7.1(a) and (b): (i) have been prepared in accordance with GAAP except that the quarterly financial statements are subject to year-end adjustments and have fewer footnotes than annual statements and (ii) present fairly the financial condition, results of operations and cash flows of the Borrower and its Subsidiaries as of such date and for such periods.  No opinion provided with respect to the Borrower’s financial statements pursuant to Section 4.1(d) or 7.1(a) (or as to any prior annual financial statements) has been withdrawn.

6.7    No Material Change.

(a)    Since December 31, 2017, except as disclosed in the SEC Reports, there has been no development or event relating to or affecting the Borrower or any of its Subsidiaries which would have or would reasonably be expected to have a Material Adverse Effect.

(b)    Since December 31, 2017, except as disclosed in the SEC Reports, there has been no  sale,  transfer  or  other  disposition  by  the  Borrower  or  any  of  its  Subsidiaries  of  any material part of its business or property, and no purchase or other acquisition by the Borrower or any of its Subsidiaries of any business or property (including the Capital Stock of any other Person) 

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material in relation to the financial condition of the Borrower or any of its Subsidiaries, in each case which is not (i) reflected in the most recent financial statements delivered to the Lenders pursuant to Section 4.1(d) or 7.1 or in the notes thereto or (ii) otherwise permitted by the terms of this Loan Agreement and communicated to the Lenders.

6.8    No Default.

Neither the Borrower nor any of its Subsidiaries is in default in any respect under any contract, lease, loan agreement, indenture, mortgage, security agreement or other agreement or obligation to which it is a party or by which any of its properties is bound which default would have or would reasonably be expected to have a Material Adverse Effect.  No Default or Event of Default presently exists and is continuing.

6.9    Litigation.

Except as disclosed in the SEC Reports, there are no actions, suits, investigations or legal, equitable, arbitration or administrative proceedings, pending or, to the knowledge of the Borrower, threatened against the Borrower or any of its Subsidiaries which would have or would reasonably be expected to have a Material Adverse Effect.

6.10    Taxes.

Each of the Borrower and its Subsidiaries has filed, or caused to be filed, all material tax returns (federal, state, local and foreign) required to be filed and paid all amounts of taxes shown to be due (including interest and penalties) and has paid all other taxes, fees, assessments and other governmental charges (including mortgage recording taxes, documentary stamp taxes and intangibles taxes) owed by it, except for such taxes (i) the amount of which, individually or in the aggregate, is not material or (ii) which are not yet delinquent or that are being contested in good faith and by proper proceedings, and against which adequate reserves are being maintained in accordance with GAAP.  

6.11    Compliance with Law.

Each of the Borrower and its Subsidiaries is in compliance with all laws, rules, regulations, orders and decrees applicable to it or to its properties, unless such failure to comply would not have or would not reasonably be expected to have a Material Adverse Effect.

6.12    ERISA.

(a)    Except as would not result or reasonably be expected to result in a Material Adverse Effect: 

(i)    Each Single Employer Plan has been maintained, operated, and funded in compliance with its own terms and in material compliance with the provisions of ERISA, the Code, and any other applicable federal or state laws, regulations and published interpretations thereunder, except for any required amendments for which the remedial amendment  period  as  defined  in  Section  401(b)  of  the  Code  has  not  yet  expired.  Each Single Employer Plan that is intended to be qualified under Section 401(a) of the Code has been determined by the IRS to be so qualified, and each trust related to such plan has been determined to be exempt under Section 501(a) of the Code except for such plans that have  not  yet  received  determination  letters  but  for  which  the  remedial  amendment period  for  submitting  a  determination  letter  has  not  yet  expired.   No  liability has been 

36

incurred by the Borrower or any ERISA Affiliate which remains unsatisfied for any taxes or penalties assessed with respect to any Single Employer Plan or any Multiemployer Plan except for a liability that could not reasonably be expected to have a Material Adverse Effect.

(ii)    No ERISA Event has occurred or is reasonably expected to occur.

(iii)    No Prohibited Transaction (within the meaning of Section 406 of ERISA or Section 4975 of the Code) or breach of fiduciary responsibility has occurred with respect to a Single Employer Plan which has subjected or would be reasonably likely to subject the Borrower or any ERISA Affiliate to any liability under Sections 406, 409, 502(i), or 502(l) of ERISA or Section 4975 of the Code, or under any agreement or other instrument pursuant to which the Borrower or any ERISA Affiliate has agreed or is required to indemnify any person against any such liability.

(iv)    No proceeding, claim (other than a benefits claim in the ordinary course of business), lawsuit and/or investigation is existing or, to the best of the knowledge of the Borrower after due inquiry, threatened concerning or involving (i) any employee welfare benefit plan (as defined in Section 3(1) of ERISA) currently maintained or contributed to by the Borrower or any ERISA Affiliate (a “Welfare Plan”), (ii) any Single Employer Plan or (iii) any Multiemployer Plan.

(v)    Each Welfare Plan to which Sections 601-609 of ERISA and Section 4980B of the Code apply has been administered in compliance in all material respects with such sections.

(b)    The Borrower represents and warrants as of the Closing Date that the Borrower is not and will not be using “plan assets” (within the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA) of one or more Benefit Plans in connection with the Loans or the Commitments.

6.13    Use of Proceeds; Margin Stock.

The proceeds of the Borrowings hereunder will be used solely for the purposes specified in Section 7.9.  None of such proceeds will be used (a)(i) for the purpose of purchasing or carrying any Margin Stock or (ii) for the purpose of reducing or retiring any Indebtedness which was originally incurred to purchase or carry Margin Stock, or (iii) for any other purpose that might constitute this transaction a “purpose credit” within the meaning of Regulation U or (b) for the acquisition of another Person unless the board of directors (or other comparable governing body) or stockholders, as appropriate, of such Person has approved such acquisition.

6.14    Government Regulation.

The Borrower is not an “investment company” registered or required to be registered under the Investment Company Act of 1940, as amended, or controlled by such a company.

6.15    Solvency.

The Borrower is and, after the consummation of the transactions contemplated by this Loan Agreement, will be Solvent.

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6.16    Disclosure.

Neither this Loan Agreement nor any financial statements delivered to the Administrative Agent or the Lenders nor any other document, certificate or statement furnished to the Administrative Agent or the Lenders by or on behalf of the Borrower in connection with the transactions contemplated hereby contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained therein or herein, taken as a whole, not misleading.

6.17    Environmental Matters.

Except as would not result or reasonably be expected to result in a Material Adverse Effect:  (a) each of the properties of the Borrower and its Subsidiaries (the “Properties”) and all operations at the Properties are in substantial compliance with all applicable Environmental Laws, (b) there is no undocumented or unreported violation of any Environmental Law with respect to the Properties or the businesses operated by the Borrower and its Subsidiaries (the “Businesses”) that the Borrower is aware of, and (c) to the Borrower’s knowledge, there are no conditions relating to the Businesses or Properties that have given rise to or would reasonably be expected to give rise to a liability under any applicable Environmental Law or to any Environmental Claim.

6.18    [Reserved].

6.19    [Reserved].

6.20    Anti-Corruption Laws and Sanctions.

The Borrower has implemented and maintains in effect policies and procedures reasonably designed to ensure compliance by the Borrower, any Subsidiary and their respective directors, officers and employees with the Anti-Corruption Laws and applicable Sanctions.  The Borrower, any Subsidiary and to the knowledge of the Borrower or such Subsidiary their respective officers, directors and employees, are in compliance with the Anti-Corruption Laws and applicable Sanctions in all material respects.  None of (a) the Borrower, any Subsidiary or to the knowledge of the Borrower or such Subsidiary any of their respective directors, officers or employees, or (b) to the knowledge of the Borrower, any third party that will act in any capacity on behalf of or at the direction of the Borrower or any Subsidiary in connection with or will benefit from the credit facility established hereby, is a Sanctioned Person.  No Borrowing, use of proceeds or other transactions by the Borrower or any Subsidiary contemplated by this Loan Agreement will knowingly violate any Anti-Corruption Law or applicable Sanctions.

6.21    EEA Financial Institutions. The Borrower is not an EEA Financial Institution.

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SECTION 7 
 
AFFIRMATIVE COVENANTS

The Borrower covenants and agrees that, until the payment in full of all Borrower Obligations: 

7.1    Information Covenants.

The Borrower will furnish, or cause to be furnished, to the Lenders:

(a)    Annual Financial Statements. As soon as available, and in any event within one hundred twenty (120) days after the close of each Fiscal Year of the Borrower commencing with the 2018 Fiscal Year, a consolidated balance sheet and income statement of the Borrower and its Subsidiaries, as of the end of such Fiscal Year, together with the related consolidated statements of income and of cash flows for such Fiscal Year, setting forth in comparative form figures for the preceding Fiscal Year, all such financial information described above to be in reasonable form and detail and, in each case, audited by independent certified public accountants of recognized national standing reasonably acceptable to the Required Lenders and whose opinion shall be furnished to the Lenders, and shall be to the effect that such financial statements have been prepared in accordance with GAAP (except for changes with which such accountants concur) and shall not be limited as to the scope of the audit or qualified in any respect.  To the extent that any VIEs have been consolidated with the Borrower in the preparation of the financial statements furnished pursuant to this Section 7.1(a) (as contemplated in Section 1.3(c)), the Borrower shall deliver to the Administrative Agent with such financial statements a reconciliation of such financial statements that excludes the impact of such consolidation.
 
(b)    Quarterly Financial Statements. As soon as available, and in any event within sixty (60) days after the close of each Fiscal Quarter of the Borrower commencing with the Fiscal Quarter ending March 31, 2019 (other than the fourth Fiscal Quarter), a consolidated balance sheet and income statement of the Borrower and its Subsidiaries as of the end of such Fiscal Quarter, together with the related consolidated statement of income for such Fiscal Quarter and a year to date statement of cash flows, in each case setting forth in comparative form figures for the corresponding period of the preceding Fiscal Year, all such financial information described above to be in reasonable form and detail and reasonably acceptable to the Required Lenders, and, in each case, accompanied by a certificate of a Financial Officer of the Borrower to the effect that such quarterly financial statements fairly present in all material respects the financial condition of such Person and have been prepared in accordance with GAAP, subject to changes resulting from audit and normal year-end audit adjustments and except that the quarterly financial statements have fewer footnotes than annual statements. To the extent that any VIEs have been consolidated with the Borrower in the preparation of the financial statements furnished pursuant to this Section 7.1(b) (as contemplated in Section 1.3(c)), the Borrower shall deliver to the Administrative Agent with such financial statements a reconciliation of such financial statements that excludes the impact of such consolidation.

(c)    Officer’s Certificate.  At the time of delivery of the financial statements provided for in Sections 7.1(a) and 7.1(b) above, a certificate of a Financial Officer substantially in the form of Exhibit 7.1(c): (i) setting forth calculations demonstrating compliance by the Borrower with the financial covenant set forth in Section 7.2 as of the end of such fiscal period and (ii) stating that no Default or Event of Default exists, or if any Default or Event of Default does exist, specifying the nature and extent thereof and what action the Borrower proposes to take with respect thereto.

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(d)    Reports.  Notice of the filing by the Borrower of any Form 10-Q, Form 10-K or Form 8-K with the SEC promptly upon the filing thereof and copies of all financial statements, proxy statements, notices and reports as the Borrower shall send to its shareholders concurrently with the mailing of any such statements, notices or reports to its shareholders.

(e)    Notices.  Upon the Borrower obtaining knowledge thereof, the Borrower will give written notice to the Administrative Agent within ten (10) days of (i) the occurrence of a Default or Event of Default, specifying the nature and extent thereof and what action the Borrower proposes to take with respect thereto and (ii) the occurrence of any of the following with respect to the Borrower or any of its Subsidiaries (A) the pendency or commencement of any litigation, arbitration or governmental proceeding against the Borrower or any of its Subsidiaries which, if adversely determined, would have or would reasonably be expected to have a Material Adverse Effect, (B) one or more judgments, orders, or decrees shall be entered against the Borrower or any of its Subsidiaries involving a liability of $20,000,000 or more, in the aggregate or (C) the institution of any proceedings against the Borrower or any of its Subsidiaries with respect to, or the receipt of notice by such Person of potential liability or responsibility for violation or alleged violation of, any federal, state or local law, rule or regulation (including, without limitation, any Environmental Law), the violation of which would have or would reasonably be expected to have a Material Adverse Effect.

(f)    ERISA.  Upon the Borrower or any ERISA Affiliate obtaining knowledge thereof, the Borrower will give written notice to the Administrative Agent promptly (and in any event within ten (10) days) of any of the following which would result in or reasonably would be expected to result in a Material Adverse Effect: (i) any unfavorable determination letter from the IRS regarding the qualification of a Single Employer Plan under Section 401(a) of the Code (along with a copy thereof), (ii) all notices received by the Borrower or any ERISA Affiliate of the PBGC’s intent to terminate any Single Employer Plan or to have a trustee appointed to administer any Single Employer Plan, (iii) with respect to any Multiemployer Plan, the receipt of notice as prescribed in ERISA or otherwise of any withdrawal liability assessed against the Borrower or any of its ERISA Affiliates, or of a determination that any Multiemployer Plan is insolvent (within the meaning of Title IV of ERISA); or (iv) the Borrower obtaining knowledge or reason to know that the Borrower or any ERISA Affiliate has filed or intends to file a notice of intent to terminate any Single Employer Plan under a distress termination within the meaning of Section 4041(c) of ERISA.  Promptly upon request, the Borrower shall furnish the Lenders with such additional information concerning any Single Employer Plan as may be reasonably requested, including, but not limited to, copies of each annual report/return (Form 5500 series), as well as all schedules and attachments thereto required to be filed with the Department of Labor and/or the Internal Revenue Service pursuant to ERISA and the Code, respectively, for each “plan year” (within the meaning of Section 3(39) of ERISA).

(g)    Debt Ratings.   Prompt notice of any change in its Debt Ratings.

(h)    Other Information.  With reasonable promptness upon any such request, such other information regarding the business, properties or financial condition of the Borrower as the Lenders may reasonably request. 

Documents required to be delivered pursuant to Section 7.1(a), (b) or (d) (to the extent any such documents are included in materials otherwise filed with the Securities and Exchange Commission) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on the Borrower’s website on the Internet at the  website  address  listed  on  Schedule 11.1;  or  (ii)  on  which  such  documents  are  posted  on  the Borrower’s behalf  on  an  Internet  or  intranet  website,  if  any,  to  which  each  Lender  and  the  Administrative  Agent   have   access   (whether   a   commercial,   third-party   website   or   whether   sponsored   by   the 

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Administrative Agent); provided that: (A) the Borrower shall deliver paper copies of such documents to the Administrative Agent or any Lender that requests the Borrower to deliver such paper copies until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender and (B) the Borrower shall notify the Administrative Agent and each Lender (by telecopier or electronic mail) of the posting of any such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents.  Notwithstanding anything contained herein, in every instance the Borrower shall be required to provide paper copies of the Officer’s Certificate required by Section 7.1(c) to the Administrative Agent.  Except for such Officer’s Certificate, the Administrative Agent shall have no obligation to request the delivery or to maintain copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents.

7.2    Financial Covenant.  

The ratio of (a) Consolidated Indebtedness to (b) Consolidated Capitalization shall be less than or equal to 0.65 to 1.0 as of the last day of any Fiscal Quarter.

7.3    Preservation of Existence and Franchises.

(a)    The Borrower will do (and will cause each of its Subsidiaries to do) all things necessary to preserve and keep in full force and effect its existence and all material rights, franchises and authority.  

(b)    The Borrower will maintain (and will cause each of its Subsidiaries to maintain) its properties in working order and condition and not waste or otherwise permit such properties to deteriorate, reasonable wear and tear excepted; provided that this Section 7.3(b) shall not prevent the Borrower or any Subsidiary from discontinuing the operation and the maintenance of any of its properties if such discontinuance is desirable in the conduct of its business and the Borrower has concluded that such discontinuance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

7.4    Books and Records.

The Borrower will keep (and will cause each of its Subsidiaries to keep) complete and accurate books and records of its transactions in accordance with good accounting practices on the basis of GAAP (including the establishment and maintenance of appropriate reserves).  

7.5    Compliance with Law.

(a)    The Borrower will comply (and will cause each of its Subsidiaries to comply) with all laws (including, without limitation, all Environmental Laws and ERISA laws), rules, regulations and orders, and all applicable restrictions imposed by all Governmental Authorities, applicable to it and its properties, if the failure to comply would have or would reasonably be expected to have a Material Adverse Effect. 

(b)    Without limiting clause (a) above, the Borrower will, and will cause each of its Subsidiaries to, ensure that no person who owns a controlling interest in or otherwise controls the Borrower or any Subsidiary is or shall be a Sanctioned Person.

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(c)    The Borrower will maintain in effect and enforce policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers and employees with the Anti-Corruption Laws and applicable Sanctions.

(d)     The Borrower shall, and shall cause each of its Subsidiaries to, provide such information and take such actions as are reasonably requested by the Administrative Agent or any Lender in order to assist the Administrative Agent and the Lenders in maintaining compliance with the PATRIOT Act and applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the Beneficial Ownership Regulation.

7.6    Payment of Taxes and Other Indebtedness.

The Borrower will (and will cause each of its Subsidiaries to) pay, settle or discharge (a) all taxes, assessments and governmental charges or levies imposed upon it, or upon its income or profits, or upon any of its properties, before they shall become delinquent, (b) all lawful claims (including claims for labor, materials and supplies) which, if unpaid, might give rise to a Lien upon any of its properties, and (c) all of its other Indebtedness as it shall become due (to the extent such repayment is not otherwise prohibited by this Loan Agreement); provided, however, that the Borrower and its Subsidiaries shall not be required to pay any such tax, assessment, charge, levy, claim or Indebtedness which is being contested in good faith by appropriate proceedings and as to which adequate reserves therefor have been established in accordance with GAAP, unless the failure to make any such payment (i) would give rise to an immediate right to foreclose or collect on a Lien securing such amounts or (ii) would have or would be reasonably expected to have a Material Adverse Effect.

7.7    Insurance.

The Borrower will (and will cause each of its Subsidiaries to) at all times maintain in full force and effect insurance (including worker’s compensation insurance and general liability insurance) in such amounts, covering such risks and liabilities and with such deductibles or self-insurance retentions as are in accordance with normal industry practice.

7.8    Performance of Obligations.

The Borrower will perform (and will cause each of its Subsidiaries to perform) in all material respects all of its obligations under the terms of all material agreements, indentures, mortgages, security agreements or other debt instruments to which it is a party or by which it is bound.

7.9    Use of Proceeds.

The proceeds of the Borrowings may be used solely (a) to refinance Indebtedness of the Borrower, (b) to pay fees and expenses required by the Loan Documents and (c) for general corporate purposes of the Borrower (including, but not limited to, working capital and capital expenditures).  The Borrower will not request any Borrowing, and the Borrower shall not use, and shall use commercially-reasonable efforts to ensure that any Subsidiary and its or their respective directors, officers and employees shall not use, the proceeds of any Borrowing directly or, to the knowledge of the Borrower, indirectly (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws or (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person in violation of applicable Sanctions, or in any Sanctioned Country in violation of applicable Sanctions. 

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7.10    Audits/Inspections.

Upon reasonable notice and during normal business hours and subject to the Borrower’s applicable safety protocols, the Borrower will permit representatives appointed by the Administrative Agent or the Lenders, including, without limitation, independent accountants, agents, attorneys, and appraisers to visit and inspect the Borrower’s property, including its books and records, its accounts receivable and inventory, the Borrower’s facilities and its other business assets, and to make photocopies or photographs thereof and to write down and record any information such representative obtains and shall permit the Administrative Agent or such Lender or its representatives to investigate and verify the accuracy of information provided to it and to discuss all such matters with the officers, employees and representatives of the Borrower; provided, that an officer or authorized agent of the Borrower shall be present during any such discussions between the officers,  employees or representatives of the Borrower and the representatives of the Administrative Agent or any Lender. 

SECTION 8 
 
NEGATIVE COVENANTS

Unless otherwise approved in writing by the Required Lenders, the Borrower covenants and agrees that, until the payment in full of all Borrower Obligations:

8.1    Nature of Business.

The Borrower will not materially alter the character of its business from that conducted as of the Closing Date.

8.2    Consolidation and Merger.

The Borrower will not (a) enter into any transaction of merger or consummate a Division as the Dividing Person or (b) consolidate, liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution); provided that, so long as no Default or Event of Default shall exist or be caused thereby, a Person may be merged or consolidated with or into the Borrower so long as the Borrower shall be the continuing or surviving Person.

8.3    Sale or Lease of Assets.

The Borrower will not (nor will it permit its Subsidiaries to) sell, lease, transfer or otherwise dispose of, any of its assets (including, without limitation, all or substantially all of its assets, whether in one transaction or a series of related transactions and whether effected pursuant to a Division or otherwise) except (a) sales or transfers of accounts receivable and related rights to payment in connection with a State Approved Securitization and other sales and transfers of accounts receivable and related rights to payment so long as such other sales and transfers are non-recourse to the Borrower (other than with respect to Standard Securitization Undertakings) and are otherwise on commercially reasonable terms; (b) sales of assets (excluding those permitted in clause (a) hereof) for fair value, if the aggregate value of all such transactions in any calendar year, does not exceed 25% of the book value of Total Assets, as calculated as of the end of the most recent Fiscal Quarter; and (c) the sale, lease, transfer or other disposition, at less than fair value, of any other assets, provided that the aggregate book value of such assets shall not exceed $20,000,000 in any calendar year.

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8.4    Affiliate Transactions.

The Borrower will not enter into any transaction or series of transactions, whether or not in the ordinary course of business, with any Affiliate other than on terms and conditions substantially as favorable as would be obtainable in a comparable arm’s-length transaction with a Person other than an Affiliate.

8.5    Liens.

The Borrower will not (nor will it permit its Subsidiaries to) contract, create, incur, assume or permit to exist any Lien with respect to any of its property or assets of any kind (whether real or personal, tangible or intangible), whether now owned or hereafter acquired, securing any Indebtedness other than the following: (a) Liens securing the Borrower Obligations, (b) Liens for taxes not yet due or Liens for taxes being contested in good faith by appropriate proceedings for which adequate reserves determined in accordance with GAAP have been established (and as to which the property subject to any such Lien is not yet subject to foreclosure, sale or loss on account thereof), (c) Liens in respect of property imposed by law arising in the ordinary course of business such as materialmen’s, mechanics’, warehousemen’s, carrier’s, landlords’ and other nonconsensual statutory Liens which are not yet due and payable, which have been in existence less than ninety (90) days or which are being contested in good faith by appropriate proceedings for which adequate reserves determined in accordance with GAAP have been established (and as to which the property subject to any such Lien is not yet subject to foreclosure, sale or loss on account thereof), (d) pledges or deposits made in the ordinary course of business to secure payment of worker’s compensation insurance, unemployment insurance, pensions or social security programs, (e) Liens arising from good faith deposits in connection with or to secure performance of tenders, bids, leases, government contracts, performance and return‐of‐money bonds and other similar obligations incurred in the ordinary course of business (other than obligations in respect of the payment of borrowed money), (f) Liens arising from good faith deposits in connection with or to secure performance of statutory obligations and surety and appeal bonds, (g) easements, rights‐of‐way, restrictions (including zoning restrictions), minor defects or irregularities in title and other similar charges or encumbrances not, in any material respect, impairing the use of the encumbered property for its intended purposes, (h) judgment Liens that would not constitute an Event of Default, (i) Liens arising by virtue of any statutory or common law provision relating to banker’s liens, rights of setoff or similar rights as to deposit accounts or other funds maintained with a creditor depository institution, (j) any Lien created or arising over any property which is acquired, constructed or created by the Borrower or its Subsidiaries, but only if (i) such Lien secures only principal amounts (not exceeding the cost of such acquisition, construction or creation) raised for the purposes of such acquisition, construction or creation, together with any costs, expenses, interest and fees incurred in relation thereto or a guarantee given in respect thereof, (ii) such Lien is created or arises on or before one hundred eighty (180) days after the completion of such acquisition, construction or creation, (iii) such Lien is confined solely to the property so acquired, constructed or  created  and  any  improvements  thereto  and  (iv)  the  aggregate  principal  amount  of  all  Indebtedness secured  by  such  Liens  shall  not  exceed  $50,000,000  at  any  one  time  outstanding,  (k)  any  Lien  on Margin  Stock,  (l)  the  assignment  of,  or  Liens  on,  accounts  receivable  and  related  rights  to  payment in   connection   with   (i)   a   State   Approved   Securitization   or   (ii)   any   other   accounts   receivable  securitization  so  long  as  such  other  securitization  is  non-recourse  to  the  Borrower  (other  than  with respect  to  Standard  Securitization  Undertakings)  and  is  otherwise  on  commercially  reasonable  terms, and the filing of related financing statements under the Uniform Commercial Code of the applicable jurisdictions, (m) the assignment of, or Liens on, demand, energy or wheeling revenues, or on capacity reservation or option fees, payable to the Borrower with respect to any wholesale electric service or transmission agreements, the assignment of, or Liens on, revenues from energy services contracts, and the assignment of, or Liens on, capacity reservation or option fees payable to the Borrower with respect to asset sales permitted herein, (n) any extension, renewal or replacement (or successive extensions, renewals or replacements),  as  a  whole  or in part, of any Liens referred to in the foregoing clauses (a) through (m), for 

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amounts not exceeding the principal amount of the Indebtedness secured by the Lien so extended, renewed or replaced, provided that such extension, renewal or replacement Lien is limited to all or a part of the same property or assets that were covered by the Lien extended, renewed or replaced (plus improvements on such property or assets), (o) Liens on Property that is subject to a lease that is classified as an operating lease as of the Closing Date but which is subsequently converted to a capital lease, (p) Liens securing obligations under Hedging Agreements entered into in the ordinary course of business and not for speculative purposes, (q) Liens granted by bankruptcy remote special purpose Subsidiaries to secure stranded cost securitization bonds in connection with the San Juan Generating Station, (r) Liens upon any property in favor of  the applicable administrative agents for the benefit of the lenders (the “Revolving Loan Administrative Agents”) under the Existing Revolving Credit Agreements (or any refinancing thereof) securing Indebtedness thereunder (or any refinancing thereof, including any increases in the amount thereof) securing Indebtedness thereunder; provided that (i) the Borrower Obligations shall concurrently be secured equally and ratably with (or prior to) such Indebtedness under the Existing Revolving Credit Agreements (or any refinancing thereof, including any increases in the amount thereof) so long as such other Indebtedness shall be secured and (ii) the Borrower and the Revolving Loan Administrative Agents (or the applicable administrative agent under any refinancing of any Existing Revolving Credit Agreement) and the Administrative Agent, for the benefit of the Lenders, shall have entered into such security agreements, collateral trust and sharing agreements, intercreditor agreements and other documentation deemed necessary by the Administrative Agent in respect of such Lien on terms and conditions acceptable to the Administrative Agent (including, without limitation, with respect to the voting of claims and release or modification of any such Lien or all or any portion of the collateral thereunder), and (s) Liens on Property, in addition to those otherwise permitted by clauses (a) through (r) above, securing, directly or indirectly, Indebtedness or obligations arising pursuant to other agreements entered into in the ordinary course of business which do not exceed, in the aggregate at any one time outstanding, $50,000,000.

8.6    Accounting Changes.

The Borrower will not (nor will it permit any of its Subsidiaries to) make or permit, any change in accounting policies or reporting practices, except as required by GAAP, or as permitted by GAAP, if the amounts involved are not material.

SECTION 9 
 
EVENTS OF DEFAULT

9.1    Events of Default.

An Event of Default shall exist upon the occurrence of any of the following specified events (each an “Event of Default”):

(a)    Payment.  The Borrower shall:  (i) default in the payment when due of any principal of any of the Loans; or (ii) default, and such default shall continue for three (3) or more Business Days, in the payment when due of any interest on the Loans or of any fees or other amounts owing hereunder, under any of the other Loan Documents or in connection herewith or therewith.

(b)    Representations.  Any representation, warranty or statement made or deemed to be made by the Borrower herein, in any of the other Loan Documents, or in any statement or certificate delivered or required to be delivered pursuant hereto or thereto shall prove untrue in any material respect on the date as of which it was deemed to have been made.

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(c)    Covenants.  The Borrower shall:

(i)    default in the due performance or observance of any term, covenant or agreement contained in Sections 7.1(e)(i), 7.2, 7.3(a) (solely with respect to the existence of the Borrower), 7.9 or 8.1 through 8.6 inclusive; or

(ii)    default in the due performance or observance by it of any term, covenant or agreement (other than those referred to in subsections (a), (b) or (c)(i) of this Section 9.1) contained in this Loan Agreement or any other Loan Document and such default shall continue unremedied for a period of at least thirty (30) days after the earlier of an Authorized Officer becoming aware of such default or notice thereof given by the Administrative Agent.

(d)    Loan Documents.  Any Loan Document shall fail to be in force and effect or the Borrower shall so assert or any Loan Document shall fail to give the Administrative Agent or the Lenders the material rights, powers, liens and privileges purported to be created thereby.

(e)    Bankruptcy, etc.  The occurrence of any of the following with respect to the Borrower or any of its Subsidiaries (i) a court or governmental agency having jurisdiction in the premises shall enter a decree or order for relief in respect of the Borrower or any of its Subsidiaries in an involuntary case under any applicable Debtor Relief Law now or hereafter in effect, or appoint a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Borrower or any of its Subsidiaries or for any substantial part of their property or ordering the winding up or liquidation of its affairs; or (ii) an involuntary case under any applicable Debtor Relief Law now or hereafter in effect is commenced against the Borrower or any of its Subsidiaries and such petition remains unstayed and in effect for a period of sixty (60) consecutive days; or (iii) the Borrower or any of its Subsidiaries shall commence a voluntary case under any applicable Debtor Relief Law now or hereafter in effect, or consent to the entry of an order for relief in an involuntary case under any such law, or consent to the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of such Person or any substantial part of its property or make any general assignment for the benefit of creditors; or (iv) the Borrower or any of its Subsidiaries admit in writing its inability to pay its debts generally as they become due or any action shall be taken by any Person in furtherance of any of the aforesaid purposes.

(f)    Defaults under Other Agreements.

(i)    The Borrower or any of its Subsidiaries shall default in the due performance or observance (beyond the applicable grace period with respect thereto) of any material obligation or condition of any contract or lease to which it is a party, if such default would have or would reasonably be expected to have a Material Adverse Effect.

(ii)    With respect to any Indebtedness of the Borrower or any of its Subsidiaries (other than Indebtedness outstanding under this Loan Agreement) in excess of $40,000,000 in the aggregate (A) the Borrower or such Subsidiary shall (x) default in any payment (beyond the applicable grace period with respect thereto, if any) with respect to such Indebtedness, or (y) default (after giving effect to any applicable grace period) in the observance or performance of any covenant or agreement relating to such Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event or condition shall occur or condition exist, the effect of which default or other event or condition is to cause or permit the holder or the holders of such Indebtedness (or any trustee or agent on behalf of such holders) to cause (determined without regard to whether any  notice  or  lapse  of  time  is  required)  such  Indebtedness  to  become  due prior to its 

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stated maturity; or (B) such Indebtedness shall be declared due and payable, or required to be prepaid other than by a regularly scheduled required prepayment prior to the stated maturity thereof; or (C) such Indebtedness shall mature and remain unpaid.

(g)    Judgments.  Any judgment, order or decree involving a liability of $40,000,000 or more, or one or more judgments, orders, or decrees involving a liability of $80,000,000 or more, in the aggregate, shall be entered against the Borrower or any of its Subsidiaries and such judgments, orders or decrees shall continue unsatisfied, undischarged and unstayed for a period ending on the first to occur of (i) the last day on which such judgment, order or decree becomes final and unappealable and, where applicable, with the status of a judicial lien or (ii) sixty (60) days; provided that if such judgment, order or decree provides for periodic payments over time then the Borrower or such Subsidiary shall have a grace period of thirty (30) days with respect to each such periodic payment.

(h)    ERISA.  The occurrence of any of the following events or conditions (i) an ERISA Event or (ii) the Borrower or any ERISA Affiliate fails to make full payment when due of all amounts which, under the provisions of any Single Employer Plan or Sections 412 or 430 of the Code, the Borrower or any ERISA Affiliate is required to pay as contributions thereto and which are in excess of the Threshold Amount

(i)    Change of Control.  There shall occur a Change of Control.

9.2    Acceleration; Remedies.

Upon the occurrence and during the continuation of an Event of Default, the Administrative Agent may or, upon the request and direction of the Required Lenders, shall take the following actions without prejudice to the rights of the Administrative Agent or any Lender to enforce its claims against the Borrower, except as otherwise specifically provided for herein:

(a)    Acceleration of Loans.  Declare the unpaid principal of and any accrued interest in respect of all Loans and any and all other Borrower Obligations of any and every kind owing by the Borrower to the Administrative Agent or the Lenders under the Loan Documents to be due, whereupon the same shall be immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower.

(b)    [Reserved].

(c)    Enforcement of Rights.  To the extent permitted by Law enforce any and all rights and interests created and existing under applicable Law and under the Loan Documents, including, without limitation, all rights of set‐off.

Notwithstanding the foregoing, if an Event of Default specified in Section 9.1(e) shall occur, then all Loans, all accrued interest in respect thereof, all accrued and unpaid fees and other Borrower Obligations owing to the Administrative Agent and the Lenders hereunder shall immediately become due and payable, in each case without the giving of any notice or other action by the Administrative Agent or the Lenders, which notice or other action is expressly waived by the Borrower.

Notwithstanding the fact that enforcement powers reside primarily with the Administrative Agent, each Lender has, to the extent permitted by Law, a separate right of payment and shall be considered a separate “creditor” holding a separate “claim” within the meaning of Section 101(5) of the Bankruptcy Code or any other insolvency statute.

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9.3    Allocation of Payments After Event of Default.

Notwithstanding any other provisions of this Loan Agreement, after the occurrence and during the continuation of an Event of Default, all amounts collected or received by the Administrative Agent or any Lender on account of amounts outstanding under any of the Loan Documents shall be paid over or delivered as follows:

FIRST, to the payment of all reasonable out‐of‐pocket costs and expenses (including the reasonable fees and expenses of legal counsel) of the Administrative Agent or any of the Lenders in connection with enforcing the rights of the Administrative Agent and the Lenders under the Loan Documents, ratably among them in proportion to the amounts described in this clause “FIRST” payable to them;

SECOND, to payment of any fees owed to the Administrative Agent or any Lender, ratably among them in proportion to the amounts described in this clause “SECOND” payable to them;

THIRD, to the payment of all accrued interest payable to the Lenders, ratably among them in proportion to the amounts described in this clause “THIRD” payable to them;

FOURTH, to the payment of the outstanding principal amount of the Loans, ratably among them in proportion to the amounts described in this clause “FOURTH” payable to them;

FIFTH, to all other Borrower Obligations which shall have become due and payable under the Loan Documents and not repaid pursuant to clauses “FIRST” through “FOURTH” above, ratably among the holders of such Borrower Obligations in proportion to the amounts described in this clause “FIFTH” payable to them; and

SIXTH, the payment of the surplus, if any, to whomever may be lawfully entitled to receive such surplus.

SECTION 10 
 
AGENCY PROVISIONS

10.1    Appointment and Authority.

Each of the Lenders hereby irrevocably appoints U.S. Bank National Association to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  The provisions of this Section are solely for the benefit of the Administrative Agent and the Lenders, and the Borrower shall not have rights as a third party beneficiary of any of such provisions. It is understood and agreed that the use of the term “agent” as used herein or in any other Loan Documents (or any 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 Law.  Instead, such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties.

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10.2    Rights as a Lender.

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, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrower 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.

10.3    Exculpatory Provisions.

The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents.  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 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 Loan 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 Loan 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 Loan Document or applicable Law; and

(c)    shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower, its Subsidiaries or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

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 11.6 and 9.2) or (b) in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by a final and non-appealable judgment.  The Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent by the Borrower or a Lender.

The  Administrative  Agent  shall  not  be  responsible  for  or  have  any  duty  to  ascertain  or inquire into (i) any statement, warranty or representation made in or in connection with this Loan Agreement or  any  other  Loan  Document,  (ii)  the  contents  of  any  certificate,  report  or  other  document  delivered hereunder or thereunder or in connection herewith or therewith, (iii) 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,  (iv)  the  validity,  enforceability,  effectiveness  or  genuineness  of  this  Loan  Agreement,  any other  Loan  Document  or  any  other  agreement,  instrument  or  document  or  (v)  the  satisfaction  of any 

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condition set forth in Section 4 or Section 5 or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

10.4    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 orally or by telephone 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.

10.5    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 Loan Document by or through any one or more sub‐agents appointed by the Administrative Agent.  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 Section 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.

10.6    Resignation of Administrative Agent.

The Administrative Agent may at any time give notice of its resignation to the Lenders and the Borrower.  Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, 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.   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, then the retiring Administrative  Agent  may  on  behalf  of  the  Lenders,  appoint  a  successor  Administrative  Agent  meeting the qualifications set forth above; provided that if the Administrative Agent shall notify the Borrower and the  Lenders  that  no  qualifying  Person  has  accepted  such  appointment,  then  such  resignation  shall nonetheless  become  effective  in  accordance  with  such  notice  and  (a)  the  retiring  Administrative  Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents and (b) 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 as the Required Lenders  appoint  a  successor  Administrative  Agent  as  provided  for  above  in  this  Section.   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 (or retired) Administrative Agent, and the retiring Administrative Agent shall be discharged from all of its duties and obligations  hereunder  or  under  the  other  Loan  Documents  (if  not  already  discharged  therefrom  as provided  above  in  this  Section).  The fees payable by the Borrower to a successor Administrative Agent 

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shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor.  After the retiring Administrative Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Section and Section 11.5 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.

10.7    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 Loan Agreement.  Each Lender also 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 Loan Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder and in deciding whether or the extent to which it will continue as a Lender or assign or otherwise transfer its rights, interests and obligations hereunder.

10.8    No Other Duties, Etc.

Anything herein to the contrary notwithstanding, none of the bookrunners, arrangers or agents listed on the cover page hereof shall have any powers, duties or responsibilities under this Loan Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent or a Lender.

None of the Lenders, if any, identified in this Loan Agreement as a Syndication Agent shall have any right, power, obligation, liability, responsibility or duty under this Loan Agreement other than those applicable to all Lenders as such.  Without limiting the foregoing, none of such Lenders shall have or be deemed to have a fiduciary relationship with any Lender.

10.9    Administrative Agent May File Proofs of Claim.

In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Borrower, 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 Borrower 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 Section 11.5) allowed in such judicial proceeding; and

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(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 Section 11.5.

Nothing contained herein shall be deemed to authorize 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 Borrower Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

The Administrative Agent shall have the exclusive right on behalf of the Lenders to enforce the payment of the principal of and interest on any Loan after the date such principal or interest has become due and payable pursuant to the terms of this Loan Agreement.

10.10    Status of Lenders.

The Lenders are not partners or co-venturers, and no Lender shall be liable for the acts or omissions of, or (except as otherwise set forth herein in case of the Administrative Agent) authorized to act for, any other Lender.  

10. 11    ERISA Matters.

(a)    Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and the Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower, that at least one of the following is and will be true:
(i)    such Lender is not using “plan assets” (within the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA) of one or more Benefit Plans in connection with the Loans and the Commitments,
(ii)    the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Commitments and this Loan Agreement,
(iii)    (A) such Lender is an investment fund managed by a “Qualified Professional  Asset  Manager”  (within  the  meaning  of  Part  VI  of  PTE  84-14), (B) such 

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Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Commitments and this Loan Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Loan Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Commitments and this Loan Agreement, or
(iv)    such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.
(b)    In addition, unless subclause (i) in the immediately preceding clause (a) is true with respect to a Lender or such Lender has not provided another representation, warranty and covenant as provided in subclause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, the Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower, that:
(i)    none of the Administrative Agent or any Arranger or any of their respective Affiliates is a fiduciary with respect to the assets of such Lender (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Loan Agreement, any Loan Document or any documents related to hereto or thereto),
(ii)    the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Loan Agreement is independent (within the meaning of 29 CFR § 2510.3-21) and is a bank, an insurance carrier, an investment adviser, a broker-dealer or other person that holds, or has under management or control, total assets of at least $50 million, in each case as described in 29 CFR § 2510.3-21(c)(1)(i)(A)-(E),
(iii)    the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Loan Agreement is capable of evaluating investment risks independently, both in general and with regard to particular transactions and investment strategies (including in respect of the Borrower Obligations),
(iv)    the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Loan Agreement is a fiduciary under ERISA or the Code, or both, with respect to the Loans, the Commitments and this Loan Agreement and is responsible for exercising independent judgment in evaluating the transactions hereunder, and
(v)    no fee or other compensation is being paid directly to the Administrative Agent or any Arranger or any their respective Affiliates for investment advice (as opposed to other services) in connection with the Loans, the Commitments or this Loan Agreement.

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(c)    The Administrative Agent and the Arranger hereby informs the Lenders that each such Person is not undertaking to provide impartial investment advice, or to give advice in a fiduciary capacity, in connection with the transactions contemplated hereby, and that such Person has a financial interest in the transactions contemplated hereby in that such Person or an Affiliate thereof (i) may receive interest or other payments with respect to the Loans, the Commitments and this Loan Agreement, (ii) may recognize a gain if it extended the Loans or the Commitments for an amount less than the amount being paid for an interest in the Loans or the Commitments by such Lender or (iii) may receive fees or other payments in connection with the transactions contemplated hereby, the Loan Documents or otherwise, including structuring fees, commitment fees, arrangement fees, facility fees, upfront fees, underwriting fees, ticking fees, agency fees, administrative agent or collateral agent fees, utilization fees, minimum usage fees, letter of credit fees, fronting fees, deal-away or alternate transaction fees, amendment fees, processing fees, term out premiums, banker’s acceptance fees, breakage or other early termination fees or fees similar to the foregoing.

SECTION 11 
 
MISCELLANEOUS

11.1    Notices; Effectiveness; Electronic Communication.

(a)    Notices Generally.  Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in subsection (b) 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 telecopier as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

(i)    if to the Borrower or the Administrative Agent, to the address, telecopier number, electronic mail address or telephone number specified for such Person on Schedule 11.1; and

(ii)    if to any other Lender, to the address, telecopier number, electronic mail address or telephone number specified in its Administrative Questionnaire.

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 telecopier 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 Systems to the extent provided in subsection (b) below, shall be effective as provided in such subsection (b).

(b)    Electronic Communications.  Notices and other communications to the Lenders hereunder may be delivered or furnished by using Electronic Systems pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply to notices to any Lender pursuant to Section 2 if such Lender has notified the Administrative Agent that it is incapable of receiving notices under such Section by electronic communication.  The Administrative Agent or the Borrower 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.

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Unless the Administrative Agent otherwise prescribes, (i) 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), provided that if such notice 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, and (ii) 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 (i) of notification that such notice or communication is available and identifying the website address therefor.

(c)    Electronic Systems.   

(i)     The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make Communications (as defined below) available to the Lenders by posting the Communications on Debt Domain, Intralinks, Syndtrak, ClearPar or a substantially similar Electronic System.

(ii)    Any Electronic System used by the Administrative Agent is provided “as is” and “as available.” The Agent Parties (as defined below) do not warrant the adequacy of such Electronic Systems and expressly disclaim liability for errors or omissions in the Communications.  No warranty of any kind, express, implied or statutory, including 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 any Electronic System.  In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to the Borrower, any Lender or any other Person or entity for damages of any kind, including direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower’s or the Administrative Agent’s transmission of Communications through an Electronic System. “Communications” means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of the Borrower pursuant to any Loan Document or the transactions contemplated therein which is distributed by the Administrative Agent or any Lender by means of electronic communications pursuant to this Section, including through an Electronic System.

(d)    Change of Address, Etc.  Each of the Borrower and the Administrative Agent may change its address, telecopier or telephone number for notices and other communications hereunder by notice to the other parties hereto.  Each other Lender may change its address, telecopier or telephone number for notices and other communications hereunder by notice to the Borrower and the Administrative Agent.  In addition, each Lender agrees to notify the Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an effective address, contact name, telephone number, telecopier number and electronic mail address to which notices and other communications may be sent and (ii) accurate wire instructions for such Lender.

(e)    Reliance by Administrative Agent and Lenders.   The  Administrative  Agent  and  the  Lenders shall be entitled to rely and act upon any notices (including telephonic Notices of Borrowing) purportedly  given  by  or  on  behalf  of  the  Borrower  even  if  (i)  such  notices  were  not  made  in  a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof.  The Borrower shall indemnify the Administrative Agent, each Lender and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Borrower.  All telephonic notices to and other telephonic 

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communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording.

11.2    Right of Set‐Off.

In addition to any rights now or hereafter granted under applicable Law or otherwise, and not by way of limitation of any such rights, upon the occurrence of an Event of Default and the commencement of remedies described in Section 9.2, each Lender is authorized at any time and from time to time, without presentment, demand, protest or other notice of any kind (all of which rights being hereby expressly waived), to set‐off and to appropriate and apply any and all deposits (general or special) and any other indebtedness at any time held or owing by such Lender (including, without limitation, branches, agencies or Affiliates of such Lender wherever located) to or for the credit or the account of the Borrower against obligations and liabilities of the Borrower to the Lenders hereunder, under the Notes, the other Loan Documents or otherwise, irrespective of whether the Administrative Agent or the Lenders shall have made any demand hereunder and although such obligations, liabilities or claims, or any of them, may be contingent or unmatured, and any such set‐off shall be deemed to have been made immediately upon the occurrence of an Event of Default even though such charge is made or entered on the books of such Lender subsequent thereto.  The Borrower hereby agrees that any Person purchasing a participation in the Loans hereunder pursuant to Sections 3.8 or 11.3(d) may exercise all rights of set‐off with respect to its participation interest as fully as if such Person were a Lender hereunder.

11.3    Successors and Assigns. 

(a)    Successors and Assigns Generally.  The provisions of this Loan Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (f) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this Loan 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 subsection (d) 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 Loan Agreement.

(b)    Assignments by Lenders.  Any Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Loan Agreement (including all or a portion of its Loans at the time owing to it); provided that

(i)    except  in  the  case  of  an  assignment  of  the  entire  remaining  amount  of  the assigning Lender’s Loans at the time owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender, the aggregate amount of the principal  outstanding  balance  of  the  Loans  of  the  assigning  Lender  subject  to  each  such assignment, determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $5,000,000 unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower  otherwise  consents  (each  such  consent  not  to  be  unreasonably  withheld  or  delayed); 

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provided, however, that concurrent assignments to members of an Assignee Group and concurrent assignments from members of an Assignee Group to a single Eligible Assignee (or to an Eligible Assignee and members of its Assignee Group) will be treated as a single assignment for purposes of determining whether such minimum amount has been met;

(ii)    each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Loan Agreement with respect to the Loans assigned;

(iii)    no consent shall be required for any assignment to an Eligible Assignee except to the extent required by paragraph (b)(i) of this Section and, in addition:

(A)    the consent of the Borrower (such consent not to be unreasonably withheld) shall be required unless (x) an Event of Default has occurred and is continuing at the time of such assignment or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided, that the Borrower shall be deemed to have given its consent five (5) Business Days after the date written notice thereof has been delivered by the assigning Lender (through the Administrative Agent) unless such consent is expressly refused by the Borrower prior to such fifth (5th) Business Day; and

(B)    the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments if such assignment is to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender.

(iv)    Assignment and Assumption.  The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500 for each assignment (provided, that only one such fee will be payable in connection with simultaneous assignments to two or more Approved Funds by a Lender), and the assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

(v)    No Assignment to Ineligible Institutions.  No such assignment shall be made to any Ineligible Institution. 

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Loan Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Loan Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Loan Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Loan Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 3.9, 3.12, 3.13, 3.14, and 11.5(b) with respect to facts and circumstances occurring prior to the effective date of such assignment.  Upon request, the Borrower (at its expense) shall execute and deliver a Note to the assignee Lender.  Any assignment or transfer by a Lender of rights or obligations under this Loan Agreement that does not comply with this subsection shall be treated for purposes of this Loan Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection (d) of this Section.

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(c)    Register.  The Administrative Agent, acting solely for this purpose as a non-fiduciary agent of the Borrower, shall maintain at the Administrative Agent’s Office 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 principal amounts (and stated interest) of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Loan Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection by the Borrower at any reasonable time and from time to time upon reasonable prior notice.  In addition, at any time that a request for a consent for a material or substantive change to the Loan Documents is pending, any Lender may request and receive from the Administrative Agent a copy of the Register.

(d)    Participations.  Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than an Ineligible Institution) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Loan Agreement (including all or a portion of its Loans owing to it); provided that (i) such Lender’s obligations under this Loan Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent and the Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Loan Agreement.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, 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 Loan 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 loans or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  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 this Loan Agreement 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.

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 Loan Agreement and to approve any amendment, modification or waiver of any provision of this Loan Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in the first proviso to Section 11.6 that affects such Participant.  Subject to subsection (e) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.9, 3.12 3.13 and 3.14 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to subsection (b) of this Section.  To the extent permitted by Law, each Participant also shall be entitled to the benefits of Section 3.7 as though it were a Lender, provided such Participant agrees to be subject to Section 3.8 as though it were a Lender.

(e)    Limitations upon Participant Rights.   A  Participant  shall  not  be  entitled  to  receive  any greater  payment  under  Section  3.9,  3.12,  3.13,  or  3.14  than  the  applicable  Lender  would  have  been entitled  to  receive  with  respect  to  the  participation  sold  to  such  Participant,  unless  the  sale  of  the participation  to  such  Participant  is  made  with  the  Borrower’s  prior  written  consent.  A Participant that would  be  a  Foreign  Lender  if  it  were  a  Lender shall not be entitled to the benefits of Section 3.13 unless 

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the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 3.13(e) as though it were a Lender.

(f)    Certain Pledges.  Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Loan Agreement (including under its Note, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or any other central banking authority; 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. 

(g)    Electronic Execution of Assignments.  The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption 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.

11.4    No Waiver; Remedies Cumulative.

No failure or delay on the part of the Administrative Agent or any Lender in exercising any right, power or privilege hereunder or under any other Loan Document and no course of dealing between the Borrower and the Administrative Agent or any Lender shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder or under any other Loan Document preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder or thereunder.  The rights and remedies provided herein are cumulative and not exclusive of any rights or remedies which the Administrative Agent or any Lender would otherwise have.  No notice to or demand on the Borrower in any case shall entitle the Borrower to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the Administrative Agent or the Lenders to any other or further action in any circumstances without notice or demand.

11.5    Attorney Costs, Expenses, Taxes and Indemnification by Borrower.

(a)    The Borrower agrees (i) to pay or reimburse the Administrative Agent and the Arranger for all costs and expenses incurred in connection with the development, preparation, negotiation and execution of this Loan Agreement and the other Loan Documents and any amendment,  waiver,  consent  or  other  modification  of  the  provisions  hereof  and  thereof (whether  or not  the  transactions  contemplated  hereby  or  thereby  are  consummated),  and  the  consummation and administration of the transactions contemplated hereby and thereby, including all  reasonable  fees  and  expenses  of  legal  counsel,  and  (ii)  to  pay  or  reimburse  the  Administrative Agent  and  each  Lender  for  all  costs  and  expenses  incurred  in  connection  with  the  enforcement, attempted enforcement, or preservation of any rights or remedies under this Loan Agreement or the other Loan Documents (including all such costs and expenses incurred during any “workout” or restructuring  in  respect  of  the  Borrower  Obligations  and  during  any  legal  proceeding,  including any proceeding under any Debtor Relief Law), including all reasonable fees and expenses of legal counsel.   The  foregoing  costs  and  expenses  shall  include  all  search,  filing,  recording,  and appraisal  charges  and  fees  and  taxes  related  thereto,  and  other  out-of-pocket  expenses  incurred by the Administrative Agent and the Arranger and the cost of independent public accountants and other outside experts retained by the Administrative Agent, the Arranger or any Lender.  Other than costs  and  expenses  payable  in  connection  with  the  closing  of  the  transactions  contemplated by  this  Loan  Agreement  pursuant  to  this  Section  11.5(a)  (which  shall  be payable on the Closing 

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Date unless otherwise agreed by the Administrative Agent and the Arranger), all amounts due under this Section 11.5 shall be payable within ten (10) Business Days after demand therefor.  The agreements in this Section shall survive the termination of the Commitments and repayment of all other Borrower Obligations.

(b)    Whether or not the transactions contemplated hereby are consummated, the Borrower shall indemnify and hold harmless the Administrative Agent, each Lender and each of their respective Related Parties (collectively the “Indemnitees”) from and against any and all liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs, expenses and disbursements (including the reasonable fees and expenses of legal counsel) of any kind or nature whatsoever which may at any time be imposed on, incurred by or asserted against any such Indemnitee in any way relating to or arising out of or in connection with (i) the execution, delivery, enforcement, performance or administration of any Loan Document or any other agreement, letter or instrument delivered in connection with the transactions contemplated thereby or the consummation of the transactions contemplated thereby, (ii) any Loan or the use or proposed use of the proceeds therefrom, or (iii) any actual or alleged presence or release of Hazardous Substances on or from any property currently or formerly owned or operated by the Borrower, any Subsidiary of the Borrower, or any Environmental Claim related in any way to the Borrower or any Subsidiary of the Borrower, (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory (including any investigation of, preparation for, or defense of any pending or threatened claim, investigation, litigation or proceeding), whether brought by a third party or by the Borrower or any Subsidiary, and regardless of whether any Indemnitee is a party thereto or (v) any civil penalty or fine assessed by OFAC against, and all reasonable costs and expenses (including counsel fees and disbursements) incurred in connection with defense thereof, by the Administrative Agent or any Lender as a result of conduct of the Borrower that violates a sanction enforced by OFAC (all the foregoing, collectively, the “Indemnified Liabilities”), in all cases, whether or not caused by or arising, in whole or in part, out of the negligence of the Indemnitee; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs, expenses or disbursements are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee.  No Indemnitee shall be liable for any damages arising from the use by others of any information or other materials obtained through IntraLinks or other similar information transmission systems in connection with this Loan Agreement, nor shall any Indemnitee have any liability for any special, punitive, indirect or consequential damages relating to this Loan Agreement or any other Loan Document or arising out of its activities in connection herewith or therewith (whether before or after the Closing Date).  

(c)    To the extent that the Borrower for any reason fails to indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub‐agent thereof) or any Related Parties of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub‐agent) or such Related Parties, 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) of such unpaid amount, provided 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) in its capacity as such, or against any Related Parties of any of the foregoing acting for the Administrative Agent (or any such sub‐agent) in connection with such capacity.  The obligations of the Lenders under this subsection (c) are subject to the provisions of Section 3.2(d).

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All amounts due under this Section 11.5 shall be payable within ten (10) Business Days after demand therefor. The agreements in this Section shall survive the resignation of the Administrative Agent, the replacement of any Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all the other Borrower Obligations.

11.6    Amendments, Etc.

Subject to Section 3.10(b), no amendment or waiver of any provision of this Loan Agreement or any other Loan Document, and no consent to any departure by the Borrower therefrom, shall be effective unless in writing signed by the Required Lenders and the Borrower 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 4.1 or 5.1 without the written consent of each Lender;

(b)    extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to the terms of this Loan Agreement) without the written consent of such Lender;

(c)    postpone any date fixed by this Loan Agreement or any other Loan Document for any payment of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby;

(d)    reduce the principal of, or the rate of interest specified herein on, any Loan, or any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; provided, however, that only the consent of the Required Lenders shall be necessary  to amend the definition of “Default Rate” or to waive any obligation to pay interest at the Default Rate;

(e)    change Section 3.8 or Section 9.3 in a manner that would alter the pro rata sharing of payments required thereby without the written consent of each Lender; 

(f)    change any provision of this Section or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder without the written consent of each Lender; or

(g)    release the Borrower from its obligations, or consent to the assignment or transfer by the Borrower of any of its rights and obligations under (or in respect of) the Loan Documents without the written consent of each Lender;

and, provided, further, that 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 Loan Agreement or any other Loan Document.  Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder.  

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11.7    Counterparts; Electronic Execution.

This Loan Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed signature page of this Loan Agreement by facsimile transmission or other secure electronic format (.pdf) shall be effective as delivery of a manually executed counterpart hereof.    

11.8    Headings.

The headings of the sections and subsections hereof are provided for convenience only and shall not in any way affect the meaning or construction of any provision of this Loan Agreement.

11.9    Survival of Indemnification and Representations and Warranties.

(a)    Survival of Indemnification.  All indemnities set forth herein shall survive the execution and delivery of this Loan Agreement, the making of any Loan and the repayment of the Loans and other Borrower Obligations hereunder.

(b)    Survival of Representations and Warranties.  All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof.  Such representations and warranties have been or will be relied upon by the Administrative Agent and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default or Event of Default at the time of any Borrowing, and shall continue in full force and effect as long as any Loan or any other Borrower Obligation hereunder shall remain unpaid or unsatisfied.

11.10    Governing Law; Venue; Service.

(a)    THIS LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5‐1401 AND 5‐1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, BUT EXCLUDING ALL OTHER CHOICE OF LAW AND CONFLICTS OF LAW RULES).  Any legal action or proceeding with respect to this Loan Agreement or any other Loan Document may be brought in the courts of the State of New York or of the United States for the Southern District of New York and appellate courts thereof, and, by execution and delivery of this Loan Agreement, the Borrower hereby irrevocably accepts for itself and in respect of its Property, generally and unconditionally, the jurisdiction of such courts.

(b)    The Borrower irrevocably consents to the service of process in any action or proceeding with respect to this Loan Agreement or any other Loan Document by the mailing of copies thereof by registered or certified mail, postage prepaid, to it at the address for notices pursuant to Section 11.1, such service to become effective ten days after such mailing.  Nothing herein shall affect the right of a Lender to serve process in any other manner permitted by Law. 

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11.11    Waiver of Jury Trial; Waiver of Consequential Damages.

EACH OF THE PARTIES TO THIS LOAN AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS LOAN AGREEMENT, ANY OF THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY.  Each of the parties to this Loan Agreement agrees not to assert any claim against any other party hereto, Administrative Agent, any Lender, any of their Affiliates, or any of their respective directors, officers, employees, attorneys or agents, on any theory of liability, for special, indirect, consequential or punitive damages arising out of or otherwise relating to any of the transactions contemplated herein and in the other Loan Documents; provided that nothing contained in this Section 11.11 shall limit the Borrower’s indemnification and reimbursement obligations set forth in Section 11.5.

11.12    Severability.

If any provision of any of the Loan Documents is determined to be illegal, invalid or unenforceable, such provision shall be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable provisions.

11.13    Further Assurances.

The Borrower agrees, upon the request of the Administrative Agent, to promptly take such actions, as reasonably requested, as is necessary to carry out the intent of this Loan Agreement and the other Loan Documents.

11.14    Confidentiality.

Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers, employees, agents, advisors and representatives (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 requested by, or required to be disclosed to, any rating agency or regulatory authority purporting to have jurisdiction over it or an Affiliate (including any self‐regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or regulations 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 Loan Document or any action or proceeding relating to this Loan Agreement or any other Loan 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 or obligations under this Loan Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g) on a confidential basis to the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers with respect to the credit facilities provided for herein, (h) with the consent of the Borrower 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 nonconfidential basis from a source other than the Borrower.

For purposes of this Section, “Information” means all information received from the Borrower or any Subsidiary or any of their respective businesses, other than any such information that is available to the Administrative  Agent  or  any  Lender  on  a  nonconfidential  basis  prior to disclosure by the Borrower or 

63

any Subsidiary, provided that, in the case of information received from the Borrower or any Subsidiary after the date hereof, such information is clearly identified at the time of delivery as confidential.  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.

EACH LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN THE IMMEDIATELY PRECEDING PARAGRAPH FURNISHED TO IT PURSUANT TO THIS LOAN AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE BORROWER AND  ITS RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.
ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWER OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS LOAN AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE BORROWER AND ITS RELATED PARTIES OR THEIR RESPECTIVE SECURITIES.  ACCORDINGLY, EACH LENDER REPRESENTS TO THE BORROWER AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW.

Borrower consents to the publication by the Administrative Agent or any Lender of customary advertising material relating to the transactions contemplated hereby using the name, product photographs, logo or trademark of Borrower. In addition, the Administrative Agent and the Lenders may disclose the existence of this Loan Agreement and information about this Loan Agreement to market data collectors, similar service providers to the lending industry and service providers to the agents and the Lenders in connection with the administration of this Loan Agreement and the other Loan Documents.

11.15    Entirety.

This Loan Agreement together with the other Loan Documents represent the entire agreement of the parties hereto and thereto, and supersede all prior agreements and understandings, oral or written, if any, including any commitment letters or correspondence relating to the Loan Documents or the transactions contemplated herein and therein.

11.16    Binding Effect; Continuing Agreement.

(a)    This  Loan  Agreement  shall  become  effective  at  such  time  when  all  of  the conditions set forth in Section 4.1 have been satisfied or waived by the Lenders and it shall have been executed by the Borrower and the Administrative Agent, and the Administrative Agent shall have  received  copies  hereof  (telefaxed  or  otherwise)  which,  when  taken  together,  bear  the signatures of each Lender, and thereafter this Loan Agreement shall be binding upon and inure to 

64

the benefit of the Borrower, the Administrative Agent and each Lender and their respective successors and assigns.

(b)    This Loan Agreement shall be a continuing agreement and shall remain in full force and effect until all Loans, interest, fees and other Borrower Obligations have been paid in full.  Upon termination, the Borrower shall have no further obligations (other than the indemnification provisions and other provisions that by their terms survive) under the Loan Documents; provided that should any payment, in whole or in part, of the Borrower Obligations be rescinded or otherwise required to be restored or returned by the Administrative Agent or any Lender, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, then the Loan Documents shall automatically be reinstated and all amounts required to be restored or returned and all costs and expenses incurred by the Administrative Agent or any Lender in connection therewith shall be deemed included as part of the Borrower Obligations.

11.17    Regulatory Statement.

Pursuant to the terms of an order issued by the NMPRC and a stipulation that has been approved by the NMPRC, the Borrower is required to include the following separateness covenants in any debt instrument:

(a)    The Borrower and its corporate parent, PNM Resources, Inc. (“Parent”), are being operated as separate corporate and legal entities.  In agreeing to make loans to Parent, Parent’s lenders are relying solely on the creditworthiness of Parent based on the assets owned by Parent, and the repayment of any loan to Parent will be made solely from the assets of Parent and not from any assets of the Borrower; and the Parent’s lenders will not take any steps for the purpose of procuring the appointment of an administrative receiver or the making of an administrative order for instituting any bankruptcy, reorganization, insolvency, wind up or liquidation or any like proceeding under applicable law in respect of the Borrower.

(b)    Notwithstanding any of the foregoing set forth in this Section 11.17, the Borrower and the Lenders hereby acknowledge and agree that (i) this Loan Agreement and the Notes evidence Indebtedness of the Borrower and not of the Parent, (ii) the Lenders are not, and shall not at any time be deemed to be, “Parent’s lenders” under this Loan Agreement and the Notes, (iii) as set forth in this Loan Agreement and the Notes, the Borrower is responsible for the repayment of all amounts outstanding hereunder, and (iv) the Lenders reserve all rights to pursue any and all remedies available at law and otherwise (including, without limitation, in bankruptcy) should the Borrower breach any of its obligations under this Loan Agreement and/or the Notes.

11.18    USA Patriot Act Notice.  

The Administrative Agent and each Lender hereby notifies the Borrower that pursuant to the requirements of the PATRIOT Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the PATRIOT Act.

11.19    Acknowledgment.  

Section 7  and  Section  8  of  this  Loan  Agreement  contain  affirmative  and  negative  covenants applicable to the Borrower.  Each of the parties to this Loan Agreement acknowledges and agrees that any 

65

such covenants that require the Borrower to cause any of its Subsidiaries to take or to refrain from taking specified actions will be enforceable unless prohibited by applicable Law or regulatory requirement.

11.20    Replacement of Lenders. 

If (a) any Lender requests compensation under Section 3.12, (b) the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.13, (c) a Lender (a “Non-Consenting Lender”) does not consent to a proposed change, waiver, discharge or termination with respect to any Loan Document that has been approved by the Required Lenders as provided in Section 11.6 but requires unanimous consent of all Lenders or all Lenders directly affected thereby (as applicable) or (d) any Lender is a Defaulting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 11.3), all of its interests, rights and obligations under this Loan Agreement and the related Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided that:

(i)    the Borrower shall have paid to the Administrative Agent the assignment fee specified in Section 11.3(b);

(ii)    such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 3.14) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

(iii)    in the case of any such assignment resulting from a claim for compensation under Section 3.12 or payments required to be made pursuant to Section 3.13, such assignment will result in a reduction in such compensation or payments thereafter; 

(iv)    such assignment does not conflict with applicable Laws; and

(v)    in the case of any such assignment resulting from a Non-Consenting Lender’s failure to consent to a proposed change, waiver, discharge or termination with respect to any Loan Document, the applicable replacement bank, financial institution or Fund consents to the proposed change, waiver, discharge or termination; provided that the failure by such Non-Consenting Lender to execute and deliver an Assignment and Assumption shall not impair the validity of the removal of such Non-Consenting Lender and the mandatory assignment of such Non-Consenting Lender’s outstanding Loans pursuant to this Section shall nevertheless be effective without the execution by such Non-Consenting Lender of an Assignment and Assumption.

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 Borrower to require such assignment and delegation cease to apply.

11.21    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 Loan Document), the Borrower 

66

acknowledges and agrees that: (i) (A) the arranging and other services regarding this Loan Agreement provided by the Administrative Agent, the Arranger and the Lenders are arm’s-length commercial transactions between the Borrower and its Affiliates, on the one hand, and the Administrative Agent, the Arranger and the Lenders, on the other hand, (B) the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) the Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) each of the Administrative Agent, the Arranger and the Lenders 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 the Borrower or any of its Affiliates, or any other Person and (B) neither the Administrative Agent, any Arranger nor any Lender has any obligation to the Borrower or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) each of the Administrative Agent, the Arranger and the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower and its Affiliates, and none of the Administrative Agent, the Arranger or the Lenders has any obligation to disclose any of such interests to the Borrower or its Affiliates.   To the fullest extent permitted by law, the Borrower hereby waives and releases any claims that it may have against each of the Administrative Agent, the Arranger and the Lenders with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

11.22    Acknowledgment and Consent to Bail-In of EEA Financial Institutions. 

Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Lender that is an EEA Financial Institution arising under any Loan Document 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
(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 entity, 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 Loan Agreement or any other Loan 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.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

67

Each of the parties hereto has caused a counterpart of this Loan Agreement to be duly executed and delivered as of the date first above written.

BORROWER:                PUBLIC SERVICE COMPANY OF NEW MEXICO,
a New Mexico corporation

By:    /s/ Joseph D. Tarry            
Name:    Joseph D. Tarry                
Title:    Vice President, Controller and Treasurer    

Signature Page to PSCNM Term Loan Agreement (2019)

LENDER:

U.S. BANK NATIONAL ASSOCIATION,
individually in its capacity as a Lender and in its capacity as Administrative Agent 

By:    /s/ Eric J. Cosgrove            
Name:    Eric J. Cosgrove            
Title:    Senior Vice President            

Signature Page to PSCNM Term Loan Agreement (2019)

BANK OF AMERICA, N.A., as a Lender 

By:    /s/ David R. Barney            
Name:    David R. Barney            
Title:    Senior Vice President            

Signature Page to PSCNM Term Loan Agreement (2019)

SCHEDULE 1.1(a)
PRO RATA SHARES
	
			
	Lender
	Commitment
	Pro Rata Share

	U.S. Bank National Association
	$125,000,000
	50.0%

	Bank of America, N.A.
	$125,000,000
	50.0%

SCHEDULE 11.1
NOTICES
Borrower:

Public Service Company of New Mexico
414 Silver Ave. SW, MS0905
Albuquerque, New Mexico 87102-3289
Attention: Joseph D. Tarry, Vice President, Controller and Treasurer
Telephone No.: (505) 241-4672
Fax No.: (505) 241-4386
E-mail: cashdesk@pnmresources.com
Website:  http://www.pnmresources.com

Address for notices as Administrative Agent:

U.S. Bank National Association
US Bank Utilities Division 
461 Fifth Avenue, 8th Floor
New York, NY 10017
Attention: Joe Horrigan
Telephone No.:  646-935-4564 
Telecopy No.:  646-935-4552 

with a copy to 

US Bank Agency Services 
1420 5th Avenue, 9th Floor 
Seattle, WA 98101 
Telephone No.:  877-653-3117 
Telecopy No.:  206-587-7022

EXHIBIT 2.1(b)
FORM OF  
NOTICE OF BORROWING 
		
	TO: 
	U.S. BANK NATIONAL ASSOCIATION, as Administrative Agent 

		
	RE: 
	Term Loan Agreement dated as of January 18, 2019 among Public Service Company of New Mexico (the “Borrower”), U.S. Bank National Association, as administrative agent (the “Administrative Agent”), and the Lenders identified therein (as the same may be amended, modified, extended or restated from time to time, the “Loan Agreement”). 

		
	DATE:
	________________, 20__

		
	1.
	This Notice of Borrowing is made pursuant to the terms of the Loan Agreement.  All capitalized terms used herein unless otherwise defined shall have the meanings set forth in the Loan Agreement. 

		
	2.
	Please be advised that the Borrower is requesting a Loan on the terms set forth below: 

		
	(a)
	Principal amount of requested  
Loan     $_________________

		
	(b)
	Date of requested  
Loan (the “Borrowing Date”)    __________________

		
	(c)
	Interest rate applicable to the  
requested Loan: 

		
	(i)
	_______    Adjusted Base Rate 

		
	(ii)
	_______    Adjusted Eurodollar Rate for an Interest Period of: 

_______    one month  
_______    two months  
_______    three months  
_______    six months 
		
	3.
	The undersigned hereby certifies that the following statements will be true on the date of the Borrowing Date:

(a)  The representations and warranties made by the Borrower in any Loan Document are true and correct in all material respects (except to the extent that any representation and warranty that is qualified by materiality shall be true and correct in all respects) at and as if made as of such date except to the extent they expressly and exclusively relate to an earlier date.

(b)  No Default or Event of Default exists or shall be continuing either prior to or after giving effect to the Loan made pursuant to this Notice of Borrowing. 
(c) Immediately after giving effect to the requested Loan (and the application of the proceeds thereof), the aggregate principal amount of the Loans will not exceed the aggregate amount of the Lenders’ Commitments. 
4.    The undersigned hereby acknowledges and agrees that the Borrower shall indemnify each Lender in accordance with Section 3.14 of the Loan Agreement against any loss, cost or expense incurred by such Lender as a result of any failure by the Borrower to borrow the Loan requested by the Borrower in this Notice of Borrowing on the Borrowing Date.

PUBLIC SERVICE COMPANY OF NEW MEXICO, a New Mexico corporation
By:             Name:         Title:             

EXHIBIT 2.1(d) 
FORM OF TERM NOTE 
Lender: ____________    _________, 20__
FOR VALUE RECEIVED, PUBLIC SERVICE COMPANY OF NEW MEXICO, a New Mexico corporation (the “Borrower”), hereby promises to pay to the order of the Lender referenced above (the “Lender”), at the Administrative Agent’s Office set forth in that certain Term Loan Agreement dated as of January 18, 2019 (as amended, modified, extended or restated from time to time, the “Loan Agreement”) among the Borrower, the Lenders party thereto (including the Lender) and U.S. Bank National Association, as Administrative Agent (the “Administrative Agent”) (or at such other place or places as the holder of this Note may designate), the aggregate unpaid principal amount of the Loan made by the Lender to the Borrower under the Loan Agreement, in lawful money and in immediately available funds, on the dates and in the principal amounts provided in the Loan Agreement (but, in any event, no later than the Maturity Date), and to pay interest on the unpaid principal amount of the Loan made by the Lender, at such office, in like money and funds, for the period commencing on the date of the Loan until such Loan shall be paid in full, at the rates per annum and on the dates provided in the Loan Agreement. 
This Note is one of the Notes referred to in the Loan Agreement and evidences the Loan made by the Lender to the Borrower thereunder.  Capitalized terms used in this Note have the respective meanings assigned to them in the Loan Agreement and the terms and conditions of the Loan Agreement are expressly incorporated herein and made a part hereof. 
The Loan Agreement provides for the acceleration of the maturity of the Loan evidenced by this Note upon the occurrence of certain events (and for payment of collection costs in connection therewith) and for prepayment of the Loan upon the terms and conditions specified therein.  In the event this Note is not paid when due at any stated or accelerated maturity, the Borrower agrees to pay, in addition to principal and interest, all costs of collection, including reasonable attorney fees. 
The date, amount, type, interest rate and duration of Interest Period (if applicable) of the Loan made by the Lender to the Borrower, and each payment made on account of the principal thereof, shall be recorded by the Lender on its books; provided that the failure of the Lender to make any such recordation or endorsement shall not affect the obligations of the Borrower to make a payment when due of any amount owing under the Loan Agreement or under this Note in respect of the Loan to be evidenced by this Note, and each such recordation or endorsement shall be prima facie evidence of such information, absent manifest error. 
Except as permitted by Section 11.3(b) of the Loan Agreement, this Note may not be assigned by the Lender to any other Person. 

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
[signature page follows] 

IN WITNESS WHEREOF, the Borrower has caused this Note to be executed as of the date first above written. 
PUBLIC SERVICE COMPANY OF NEW MEXICO,  
a New Mexico corporation 
By:             Name:         Title:             

EXHIBIT 2.3
FORM OF  
NOTICE OF CONTINUATION/CONVERSION
		
	TO: 
	U.S. BANK NATIONAL ASSOCIATION, as Administrative Agent 

		
	RE: 
	Term Loan Agreement dated as of January 18, 2019 among Public Service Company of New Mexico (the “Borrower”), U.S. Bank National Association, as administrative agent (the “Administrative Agent”), and the Lenders identified therein (as the same may be amended, modified, extended or restated from time to time, the “Loan Agreement”). 

		
	DATE:
	________________, 20__

		
	1.
	This Notice of Continuation/Conversion is made pursuant to the terms of the Loan Agreement.  All capitalized terms used herein unless otherwise defined shall have the meanings set forth in the Loan Agreement. 

		
	2.
	Please be advised that the Borrower is requesting that a portion of the current outstanding Loan in the amount of $_______________, currently accruing interest at ____________, be extended or converted as of ________, 20__ at the interest rate option set forth in paragraph 3 below. 

		
	3.
	The interest rate option applicable to the extension or conversion of all or part of the existing Loan referenced above shall be: 

		
	a.
	______    the Adjusted Base Rate 

		
	b.
	______    the Adjusted Eurodollar Rate for an Interest Period of: 

______ one month  
______ two months 
______ three months  
______ six months 
		
	4.
	As of the date hereof, no Default or Event of Default has occurred and is continuing. 

[signature page follows] 

PUBLIC SERVICE COMPANY OF NEW MEXICO,  
a New Mexico corporation 
By:             Name:         Title:             

EXHIBIT 4.1(k) 
FORM OF  
ACCOUNT DESIGNATION LETTER 
[Date] 
U.S. Bank National Association
Joe Horrigan, 
US Bank Utilities Division, 
461 Fifth Avenue, 8th Floor, 
New York, NY 10017
Ph: 646-935-4564, 
Fax: 646-935-4552; 

with a copy to 

US Bank Agency Services, 
1420 5th Avenue, 9th Floor, 
Seattle, WA 98101, 
Ph: 877-653-3117, 
Fax: 206-587-7022

Ladies and Gentlemen: 
This Account Designation Letter is delivered to you by PUBLIC SERVICE COMPANY OF NEW MEXICO (the “Borrower”), a New Mexico corporation, under Section 4.1(k) of the Term Loan Agreement, dated as of January 18, 2019 (as amended, restated or otherwise modified from time to time, the “Loan Agreement”), by and among the Borrower, the Lenders party thereto, and U.S. Bank National Association, as administrative agent (the “Administrative Agent”). 
The Administrative Agent is hereby authorized to disburse all Loan proceeds into the following account, unless the Borrower shall designate, in writing to the Administrative Agent, one or more other accounts: 
A/C#             
ABA             
Reference:
Notwithstanding the foregoing, if other payment instructions are attached hereto, funds borrowed under the Loan Agreement shall be sent to the institutions and/or persons designated on such payment instructions.

 IN WITNESS WHEREOF, the undersigned has executed this Account Designation Letter this 18th day of January, 2019. 
PUBLIC SERVICE COMPANY OF NEW MEXICO, a New Mexico corporation 
By:             Name:         Title:             

EXHIBIT 7.1(c) 
FORM OF  
COMPLIANCE CERTIFICATE 
		
	TO: 
	U.S. BANK NATIONAL ASSOCIATION, as Administrative Agent 

		
	RE: 
	Term Loan Agreement dated as of January 18, 2019 among Public Service Company of New Mexico (the “Borrower”), U.S. Bank National Association, (the “Administrative Agent”), and the Lenders identified therein (as the same may be amended, modified, extended or restated from time to time, the “Loan Agreement”). 

		
	DATE:
	________________, 20__

Pursuant to the terms of the Loan Agreement, I, ________________, [Title of Financial Officer] of Public Service Company of New Mexico, hereby certify on behalf of the Borrower that, as of the [Fiscal Quarter] [Fiscal Year] ended ______, 20__, the statements below are accurate and complete in all respects (all capitalized terms used below shall have the meanings set forth in the Loan Agreement): 
a.    Attached hereto as Schedule 1 are calculations (calculated as of the date of the annual financial statements delivered in accordance with Section 7.1(a) of the Loan Agreement or as of the date of the quarterly financial statements referred to in paragraph c. below) demonstrating compliance by the Borrower with the financial covenant contained in Section 7.2 of the Loan Agreement. 
b.    No Default or Event of Default exists under the Loan Agreement, except as indicated on a separate page attached hereto, together with an explanation of the action taken or proposed to be taken by the Borrower with respect thereto. 
c.    [Attached hereto as Schedule 2 are the quarterly financial statements for the fiscal quarter ended __________, 20__ and such quarterly financial statements] [The quarterly financial statements for the fiscal quarter ended _______, 20__, delivered electronically pursuant to the last paragraph of Section 7.1 of the Loan Agreement,] fairly present in all material respects the financial condition of the Borrower and its Subsidiaries and have been prepared in accordance with GAAP, subject to changes resulting from audit and normal year-end audit adjustments and except that the quarterly financial statements have fewer footnotes than annual statements]1. 
[signature page follows] 

______________________________
1 Paragraph (c) only included when delivering quarterly statements. Use the first bracketed language when delivering paper copies of quarterly financial statements and the second bracketed language when delivering quarterly financial statements electronically.

PUBLIC SERVICE COMPANY OF NEW MEXICO, a New Mexico corporation 
By:             Name:         Title:             

SCHEDULE 1 
TO EXHIBIT 7.1(c)
FINANCIAL COVENANT CALCULATIONS
A.    Debt Capitalization
	
			
	1.
	Consolidated Indebtedness of the Borrower
	$_________________

	2.
	Consolidated Capitalization of the Borrower
	$_________________

	3.
	Debt to Capitalization Ratio (Line A1:A2)
	__________to 1.0

	Maximum Permitted
	.65 to 1.0

SCHEDULE 2 
TO EXHIBIT 7.1(c)
QUARTERLY FINANCIAL STATEMENTS
[Attached]

EXHIBIT 11.3(b) 
FORM OF ASSIGNMENT AND ASSUMPTION 
This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between _________ (the “Assignor”) and ________________ (the “Assignee”).  Capitalized terms used but not defined herein shall have the meanings given to them in the Term Loan Agreement identified below (as amended, the “Loan Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth in Schedule 1 attached hereto (the “Standard Terms and Conditions”) are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full. 
For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Loan Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (a) all of the Assignor’s rights and obligations in its capacity as a Lender under the Loan Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the facility identified below and (b) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Loan Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (a) above (the rights and obligations sold and assigned pursuant to clauses (a) and (b) above being referred to herein collectively as, the “Assigned Interest”).  Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor. 
	
			
	1.
	Assignor:
	____________________________

	2.
	Assignee:
	____________________________ 
and is an Affiliate/Approved Fund of  ___________

	3.
	Borrower:
	Public Service Company of New Mexico, a New Mexico corporation

	4.
	Administrative Agent:
	U.S. Bank National Association, as the Administrative Agent under the Loan Agreement

	5.
	Loan Agreement:
	Term Loan Agreement dated as of January 18, 2019 among the Borrower, the Administrative Agent, and the Lenders identified therein

	6.
	Assigned Interest:
	 

	
			
	Aggregate Amount of Loans for all Lenders
	Amount of Loan Assigned
	Percentage Assigned of Loan

	$
	$
	%

	
		
	7.
	After giving effect to the foregoing assignment, the Assignor and the Assignee shall have the following Pro Rata Shares and outstanding Loans:

	
			
	 
	Pro Rata Share
	Outstanding Loans

	Assignor
	 
	 

	Assignee
	 
	 

	
			
	8.
	Trade Date:
	__________________

Effective Date:  _____________ ___, 20___ 

The terms set forth in this Assignment and Assumption are hereby agreed to: 
ASSIGNOR 
[NAME OF ASSIGNOR] 
By:             Name:         Title:             
ASSIGNEE 
[NAME OF ASSIGNEE] 
By:             Name:         Title:             
Consented to and Accepted if applicable: 
U.S. BANK NATIONAL ASSOCIATION,  
as Administrative Agent 
By:     
Name:     
Title:     

Consented to if applicable: 
PUBLIC SERVICE COMPANY OF NEW MEXICO,  
a New Mexico corporation 
By:     
Name:     
Title:     

SCHEDULE 1  
TO EXHIBIT 11.3(b) 
STANDARD TERMS AND CONDITIONS FOR  
ASSIGNMENT AND ASSUMPTION 
1.    Representations and Warranties. 
1.1    Assignor.  The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Loan Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document. 
1.2.    Assignee.  The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Loan Agreement, (ii) it meets all requirements of an Eligible Assignee under the Loan Agreement (subject to receipt of such consents as may be required under the Loan Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Loan Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Loan Agreement, together with copies of the most recent financial statements delivered pursuant to Section 7.1 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) if it is a foreign lender, attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Loan Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender. 

2.    Payments.  From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date. 
3.    General Provisions.  This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.  This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument.  Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.

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