Document:

Exhibit 10.1

 

 

 

TERMINATION AND RELEASE AGREEMENT

THIS TERMINATION AND RELEASE AGREEMENT is made as of this 17th day of September, 2018, by and between Riot Blockchain, Inc., a Nevada corporation ("Riot"), RiotX Holdings, Inc., a Delaware corporation ("RiotX"), and goNumerical Ltd., a Canadian corporation ("Coinsquare").  Riot, RiotX, and Coinsquare may be referred to individually as a "Party" and, collectively, as the "Parties."

RECITALS

WHEREAS, the Parties entered into a Software License and Services Agreement, dated August 30, 2018 (together with all schedules thereto, the "License Agreement");

AND WHEREAS, as consideration for the License Agreement, Riot entered into a Subscription Agreement with Coinsquare, dated August 31, 2018, pursuant to which 450,000 shares of Riot's common stock were issued to Coinsquare (together with all addenda and amendments thereto, "Riot Subscription Agreement");

AND WHEREAS, as consideration for the License Agreement, RiotX entered into a Subscription Agreement with Coinsquare pursuant to which 549,390 shares of RiotX's common stock were to be issued to Coinsquare (together with all addenda and amendments thereto, "RiotX Subscription Agreement");

AND WHEREAS, the Parties now desire and intend to terminate the License Agreement, the Riot Subscription Agreement and the RiotX Subscription Agreement (collectively the "Terminating Agreements"), effective September 13, 2018 ("Effective Date"), upon the following terms and conditions;

AND WHEREAS, the Parties now wish to generally release all claims related to, involving or arising out of the Terminating Agreements against each other consistent with the terms of this Agreement.

NOW, THEREFORE, in consideration of the mutual agreements hereinafter set forth, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged the Parties agree as follows:

1. Recitals.  The Recitals form an integral and substantive part of the Agreement and are incorporated herein.

2. Termination.  The Parties acknowledge and agree that the Terminating Agreements, including all amendments, schedules, exhibits, and addenda thereto, and any and all oral agreements between the Parties shall be terminated as of the Effective Date.  The Parties further agree to waive any written notice requirements in the License Agreement.

 

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3. Return of Riot Common Stock.  Within seven (7) business days after the Effective Date, Coinsquare shall take all necessary steps to and shall return to Riot the 450,000 shares of Riot's common stock that were issued pursuant to the Riot Subscription Agreement.

4. Coinsquare Release. Coinsquare, on behalf of itself and its past and present agents, directors, officers, employees, shareholders, members, managers, insurers, representatives, attorneys, vendors, independent contractors, guarantors, predecessors, successors and assigns, parents and subsidiaries, hereby fully, finally, and unconditionally release and forever discharges Riot and RiotX and each of their past and present agents, directors, officers, employees, shareholders, members, managers, insurers, representatives, attorneys, vendors, independent contractors, guarantors, predecessors, successors and assigns, parents and subsidiaries, from any and all claims, rights, actions, complaints, demands, causes of action, obligations, promises, contracts, agreements, controversies, suits, debts, expenses, damages, attorneys' fees, costs and liabilities of any nature whatsoever, whether or not now known, suspected or claimed, matured or unmatured, fixed or contingent, which Coinsquare ever had, now has, or may claim to have, from the beginning of time through the moment Coinsquare executes this Agreement, from or relating to, arising out of or involving the Terminating Agreements, provided that this release shall not apply to any of the undertakings of the Parties under this Agreement.

5. Riot and RiotX Release. Riot and RiotX, on behalf of themselves and their respective past and present agents, directors, officers, employees, shareholders, members, managers, insurers, representatives, attorneys, vendors, independent contractors, guarantors, predecessors, successors and assigns, parents and subsidiaries, hereby fully, finally, and unconditionally release and forever discharge Coinsquare, including its past and present agents, directors, officers, employees, shareholders, members, managers, insurers, representatives, attorneys, vendors, independent contractors, guarantors, predecessors, successors and assigns, parents and subsidiaries, from any and all claims, rights, actions, complaints, demands, causes of action, obligations, promises, contracts, agreements, controversies, suits, debts, expenses, damages, attorneys' fees, costs and liabilities of any nature whatsoever, whether or not now known, suspected or claimed, matured or unmatured, fixed or contingent, which Riot and RiotX ever had, now have, or may claim to have, from the beginning of time through the moment Riot and RiotX executes this Agreement, from or relating to, arising out of or involving the Terminating Agreements, provided that this release shall not apply to any of the undertakings of the Parties under this Agreement.

6. Covenant Not to Sue.

a. Excepting only claims to enforce any term or provision of this Agreement, Coinsquare covenants and agrees that it will not, at any time hereafter, either directly or indirectly, initiate, assign, maintain or prosecute (or, except as required by law, in any way knowingly aid or assist any other entity or person in the initiation, maintenance or prosecution of) any claim, demand or cause of action at law or otherwise against Riot and RiotX and each of their past and present agents, directors, officers, employees, shareholders, members, managers, insurers, representatives, attorneys, vendors, independent contractors, guarantors, predecessors, successors and assigns, parents and subsidiaries, in any court, administrative or governmental body or tribunal, or alternative dispute resolution forum, for damages, loss or injury of any kind arising from, related to, or in any way connected to the Terminating Agreements.  For purposes of this paragraph, "aid or assist any other entity or person" shall include, but not be limited to, providing any information, documents or data or referring any person who may provide any information, documents or data. In the event of a breach of this section of this Agreement, the prevailing party shall recover the reasonable attorneys' fees and costs incurred by such party in connection with the breach, including, but not limited to, (i) attorneys' fees and costs incurred in defense of any claim asserted in contravention of this section of the Agreement; and (ii) any lost profit or consequential damages.  This Section of this Agreement shall not merge with or into any judgment on this Agreement but shall survive.

 

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b. Excepting only claims to enforce any term or provision of this Agreement, Riot and RiotX covenant and agree that they will not, at any time hereafter, either directly or indirectly, initiate, assign, maintain or prosecute (or, except as required by law, in any way knowingly aid or assist any other entity or person in the initiation, maintenance or prosecution of) any claim, demand or cause of action at law or otherwise against Coinsquare, including its past and present agents, directors, officers, employees, shareholders, members, managers, insurers, representatives, attorneys, vendors, independent contractors, guarantors, predecessors, successors and assigns, parents and subsidiaries, in any court, administrative or governmental body or tribunal, or alternative dispute resolution forum, for damages, loss or injury of any kind arising from, related to, or in any way connected to the Terminating Agreements.  For purposes of this paragraph, "aid or assist any other entity or person" shall include, but not be limited to, providing any information, documents or data or referring any person who may provide any information, documents or data. In the event of a breach of this section of this Agreement, the prevailing party shall recover the reasonable attorneys' fees and costs incurred by such party in connection with the breach, including, but not limited to, (i) attorneys' fees and costs incurred in defense of any claim asserted in contravention of this section of the Agreement; and (ii) any lost profit or consequential damages. This Section of this Agreement shall not merge with or into any judgment on this Agreement but shall survive.

7. Non-Admission. This Agreement shall not constitute or operate as an acknowledgement or admission of any kind by any Party that it individually or in combination has breached any legal obligation of any kind to anyone or otherwise violated the law in any way.

8. Non-Disparagement. Each of the Parties covenants and agrees that it will not make any disparaging or derogatory statement, orally or in writing, to any person or entity, including but not limited to any customer, shareholder, supplier, vendor, media outlet, industry group, financial institution, or governmental agency, regarding the other Party, its officers, directors, employees, agents or representatives, or about such other Party's business affairs or financial condition.

9. Provisions that Survive Termination. Each Party acknowledges and agrees that various provisions of the Terminating Agreements survive termination and are set forth in Section 24(f) of the License Agreement.

10. Filings.  Coinsquare acknowledges and understands that as a result of this Agreement, Riot may have to make certain filings as are required to be made under the Securities Act of 1933, the Securities Exchange Act of 1934 and the regulations promulgated thereunder, as well as any applicable stock exchange rule or other federal or state securities law and that such filings may need to disclose this Agreement and its terms.  Coinsquare agrees that nothing in this Agreement or in any of the provisions of the Terminating Agreements that survive termination (other than the confidentiality provision in the License Agreement) limit, restrict or preclude Riot's ability to make any filing that may be required under the referenced laws and regulations.

 

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11. Publicity.  Consistent with paragraph 20 of the License Agreement, none of the Parties may issue a press release or other public announcement concerning the termination of any or all of the Terminating Agreements without first providing the other Parties with a draft of the press release or public announcement and obtaining written consent prior to publication.  This Section does not apply to any filing that Riot may be required to make as set forth in Section 10 above.

12. Voluntary Agreement; Advice of Counsel; No Duress. The Parties have read this Agreement, have each consulted with counsel regarding this Agreement, and have signed this Agreement voluntarily and freely with a complete understanding of its terms. The Parties hereby expressly waive any claim for duress.

13. Reliance; Risk of New Facts; Waiver of Fraud in the Inducement. The Parties have read this Agreement, have each consulted with counsel regarding this Agreement, and have signed this Agreement relying only upon their own judgment and not upon any representation by any other party or person. The Parties intend that this Agreement shall be conclusive and final as to the disputes between them and that this Agreement shall not be set aside on any basis. Each Party acknowledges that it or its attorney may hereafter discover facts different from or in addition to the facts which such Party or its attorney now knows or believes to be true, but it is the intention of the Parties to fully, finally, absolutely, and forever settle any, and all claims, disputes and differences which do now exist or heretofore have existed between them relating to, arising out of or involving the Termination Agreements and in furtherance of such intention the releases herein given shall be and remain in effect as full and complete general releases relating to, arising out of or involving the Termination Agreements notwithstanding the discovery of any such different or additional facts. For the avoidance of doubt, except with regard to representations specifically set forth in this Agreement, the Parties expressly and unconditionally waive any claim, under the law of any jurisdiction, for fraud in the inducement with respect to this Agreement or any other species of fraud, irregularity or mistake that would otherwise allow either Party to set aside or rescind this Agreement.

14. Capacity and Authority. The Parties represent and warrant that the persons signing this Agreement are authorized to execute this Agreement on their behalf and to bind each Party to the terms of this Agreement. The undersigned persons executing this Agreement similarly represent and warrant that, to the best of their knowledge, they are authorized to execute this Agreement on behalf of their respective Parties.

15. Enforcement; Waiver of Trial by Jury. If any action, of any kind, is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to an award of its reasonable attorneys' fees and costs, at all levels, including appeals. The Parties hereby waive trial by jury in any action or proceeding arising out of or in any way pertaining to this Agreement.  This paragraph shall survive any judgment on this Agreement and shall not merge into any judgment on this Agreement.

 

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16. Counterparts. This Agreement may be executed by any number of counterparts and by different parties hereto and separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument. Executed signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document. Any Party hereto may execute and deliver a counterpart of this Agreement by delivery by facsimile or other electronic transmission of a signature page of this Agreement signed by such Party, and any such facsimile or electronic signature shall be treated in all respects as having the same effect as having an original signature.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

GONUMERICAL LTD

By: /s/Cole Diamond

Name: Cole Diamond, CEO

  

RIOT BLOCKCHAIN, INC.

By: /s/Chris Ensey

Name: Chris Ensey, Interim CEO

RIOTX HOLDINGS, INC

By:    /s/ Chris Ensey 

Name: Chris Ensey, Interim CEO

5SHEPHERD’S
FINANCE, LLC

 

FIXED
RATE SUBORDINATED NOTES

 

 

 

INDENTURE

 

DATED
AS OF ________, 2018

 

 

 

U.S.
BANK NATIONAL ASSOCIATION

 

AS

 

TRUSTEE

 

    	 

    	 

    

 

CROSS-REFERENCE
TABLE

 

	Trust
    Indenture	 	Indenture
	Act
    Section	 	Section
	 	 	 	
	310	(a)(1)	 	7.10
	 	(a)(2).	 	7.10
	 	(a)(3)	 	N.A.
	 	(a)(4)	 	N.A.
	 	(b)	 	7.8;
    7.10; 11.2
	 	(c)	 	N.A.
	311	(a)	 	7.11
	 	(b)	 	7.11
	 	(c)	 	N.A.
	312	(a)	 	2.6
	 	(b)	 	11.3
	 	(c)	 	11.3
	313	(a)	 	7.6
	 	(b)(1)	 	N.A.
	 	(b)(2)	 	7.6
	 	(c)	 	11.2
	 	(d)	 	7.6
	314	(a)	 	4.2;
    11.2
	 	(b)	 	N.A.
	 	(c)(1)	 	11.4
	 	(c)(2)	 	11.4
	 	(c)(3)	 	N.A.
	 	(d)	 	N.A.
	 	(e)	 	11.5
	 	(f)	 	4.3
	315	(a)	 	7.1(b)
	 	(b)	 	7.5;
    11.2
	 	(c)	 	7.1(a)
	 	(d)	 	7.1(c)
	 	(e)	 	6.11
	316(a)(last
    sentence)	 	2.10
	 	(a)(1)(A)	 	6.5
	 	(a)(1)(B)	 	6.4
	 	(a)(2)	 	N.A.
	 	(b)	 	6.7
	317	(a)(1)	 	6.8
	 	(a)(2)	 	6.9
	 	(b)	 	2.5
	318	(a)	 	11.1

 

N.A.
means not applicable.

*
This Cross-Reference Table is not part of the Indenture.

 

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TABLE
OF CONTENTS

 

	ARTICLE
    1 DEFINITIONS AND INCORPORATION BY REFERENCE	1
	 	 	 
	Section
    1.1.	Definitions.	1
	Section
    1.2.	Other
    Definitions.	3
	Section
    1.3.	Incorporation
    by Reference of TIA.	3
	Section
    1.4.	Rules
    of Construction.	3
	 	 	 
	ARTICLE
    2 THE NOTES	4
	 	 	 
	Section
    2.1.	Form
    and Dating.	4
	Section
    2.2.	Terms.	4
	Section
    2.3.	Execution.	4
	Section
    2.4.	Registrar
    and Paying Agent.	5
	Section
    2.5.	Paying
    Agent to Hold Money in Trust.	5
	Section
    2.6.	Certificateholder
    Lists.	5
	Section
    2.7.	Transfer
    and Exchange.	5
	Section
    2.8.	Replacement
    Notes.	6
	Section
    2.9.	Outstanding
    Notes.	6
	Section
    2.10.	Treasury
    Notes.	6
	Section
    2.11.	Cancellation.	7
	 	 	 
	ARTICLE
    3 REDEMPTION	7
	 	 	 
	Section
    3.1.	Applicability
    of Article.	7
	Section
    3.2.	Notices
    to Trustee.	7
	Section
    3.3.	Selection
    of Notes to be Redeemed.	7
	Section
    3.4.	Notice
    of Redemption.	7
	Section
    3.5.	Effect
    of Notice of Redemption.	8
	Section
    3.6.	Deposit
    of Redemption Price.	8
	Section
    3.7.	Notes
    Redeemed in Part.	8
	Section
    3.8.	Redemption
    Option Upon Death of Holder.	9
	Section
    3.9.	Redemption
    Option at Request of Holder.	9

 

    	ii

    	 

    

 

	ARTICLE
    4 COVENANTS	9
	 	 	 
	Section
    4.1.	Payment
    of Notes.	9
	Section
    4.2.	SEC
    Reports.	10
	Section
    4.3.	Compliance
    Certificate.	10
	Section
    4.4.	Usury
    Laws.	10
	Section
    4.5.	Money
    for Note Payments to be Held in Trust.	11
	Section
    4.6.	Continued
    Existence.	11
	 	 	 
	ARTICLE
    5 SUCCESSORS	12
	 	 	 
	ARTICLE
    6 DEFAULTS AND REMEDIES	12
	 	 	 
	Section
    6.1.	Events
    of Default.	12
	Section
    6.2.	Acceleration.	13
	Section
    6.3.	Other
    Remedies.	13
	Section
    6.4.	Waiver
    of Past Defaults.	14
	Section
    6.5.	Control
    by Majority.	14
	Section
    6.6.	Limitation
    on Suits.	14
	Section
    6.7.	Rights
    of Holders to Receive Payment.	15
	Section
    6.8.	Collection
    Suit by Trustee.	15
	Section
    6.9.	Trustee
    May File Proofs of Claim.	15
	Section
    6.10.	Priorities.	16
	Section
    6.11.	Undertaking
    for Costs.	16

 

    	iii

    	 

    

 

	ARTICLE
    7 TRUSTEE	16
	 	 	 
	Section
    7.1.	Duties
    of Trustee.	16
	Section
    7.2.	Rights
    of Trustee.	17
	Section
    7.3.	Individual
    Rights of Trustee.	18
	Section
    7.4.	Trustee’s
    Disclaimer.	18
	Section
    7.5.	Notice
    of Defaults.	19
	Section
    7.6.	Reports
    by Trustee to Holders.	19
	Section
    7.7.	Compensation
    and Indemnity.	19
	Section
    7.8.	Replacement
    of Trustee.	20
	Section
    7.9.	Successor
    Trustee by Merger, Etc.	21
	Section
    7.10.	Eligibility;
    Disqualification.	21
	Section
    7.11.	Preferential
    Collection of Claims Against Company.	21
	 	 	 
	ARTICLE
    8 DISCHARGE OF INDENTURE; DEFEASANCE	21
	 	 	 
	Section
    8.1.	Termination
    of Company’s Obligations.	21
	Section
    8.2.	Legal
    Defeasance and Covenant Defeasance.	22
	Section
    8.3.	Conditions
    to Legal Defeasance or Covenant Defeasance.	23
	Section
    8.4.	Application
    of Trust Money.	24
	Section
    8.5.	Repayment
    to the Company.	24
	 	 	 
	ARTICLE
    9 AMENDMENTS	25
	 	 	 
	Section
    9.1.	Without
    Consent of Holders.	25
	Section
    9.2.	With
    Consent of Holders.	25
	Section
    9.3.	Compliance
    with Trust Indenture Act.	26
	Section
    9.4.	Revocation
    and Effect of Consents.	26
	Section
    9.5.	Notation
    on or Exchange of Notes.	26
	Section
    9.6.	Trustee
    Protected.	26
	 	 	 
	ARTICLE
    10 SUBORDINATION	27
	 	 	 
	Section
    10.1.	Agreement
    to Subordinate.	27
	Section
    10.2.	Certain
    Definitions.	27
	Section
    10.3.	Liquidation;
    Dissolution; Bankruptcy.	27

 

    	iv

    	 

    

 

	Section
    10.4.	Default
    on Senior Debt.	28
	Section
    10.5.	Acceleration
    of Notes.	28
	Section
    10.6.	When
    Distribution Must Be Paid Over.	28
	Section
    10.7.	Notice
    by Company.	29
	Section
    10.8.	Subrogation.	29
	Section
    10.9.	Relative
    Rights.	29
	Section
    10.10.	Subordination
    may not be Impaired by Company.	30
	Section
    10.11.	Distribution
    or Notice to Representative.	30
	Section
    10.12.	Rights
    of Trustee and Paying Agent.	30
	Section
    10.13.	Trust
    Moneys Not Subordinated.	30
	Section
    10.14.	Trustee
    Not Fiduciary for Holders of Senior Debt.	30
	 	 	 
	ARTICLE
    11 MISCELLANEOUS	31
	 	 	 
	Section
    11.1.	TIA
    Controls.	31
	Section
    11.2.	Notices.	31
	Section
    11.3.	Communication
    by Holders With Other Holders.	31
	Section
    11.4.	Certificate
    and Opinion as to Conditions Precedent.	31
	Section
    11.5.	Statements
    Required in Certificate or Opinion.	32
	Section
    11.6.	Rules
    by Trustee and Agents.	32
	Section
    11.7.	Legal
    Holidays.	32
	Section
    11.8.	No
    Recourse Against Others.	32
	Section
    11.9.	Duplicate
    Originals.	32
	Section
    11.10.	Variable
    Provisions.	33
	Section
    11.11.	Governing
    Law.	33
	Section
    11.12.	No
    Adverse Interpretation of Other Agreements.	33
	Section
    11.13.	Successors.	33
	Section
    11.14.	Severability.	33

 

    	v

    	 

    

 

INDENTURE
dated as of ________, 2018, between Shepherd’s Finance, LLC, a Delaware limited liability company (“Company”),
and U.S. Bank National Association, a national banking association (“Trustee”).

 

Each
party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Company’s
Fixed Rate Subordinated Notes:

 

ARTICLE
1

DEFINITIONS AND INCORPORATION BY REFERENCE

 

	 	Section
    1.1.	Definitions.

 

“Affiliate”
means any person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company.

 

“Agent”
means any Registrar, Paying Agent, or co-registrar.

 

“Board
of Managers” means the Board of Managers of the Company or any authorized committee of the Board of Managers.

 

“Company”
means the party named as such above until a successor replaces it and thereafter means the successor or any other obligor with
respect to the Notes.

 

“Company
Order” means an order signed in the name of the Company by its Chief Executive Officer, President, a Vice President,
its Treasurer, or Secretary, and delivered to the Trustee.

 

“Corporate
Trust Office” shall be at the address of the Trustee specified in Section 12.02 or such other address as to which the
Trustee may give notice to the Company.

 

“Date
of Issue” means the date that the Company receives proper documentation and the funds for the purchase of a Note if
such funds are received prior to 3:00 p.m. on a business day or the next business day if the Company receives such funds on a
non-business day or on or after 3:00 p.m. on a business day. For this purpose, the Company’s business days will be deemed
to be Monday through Friday, except on Florida legal holidays.

 

“Default”
means any event which is, or after notice or passage of time would be, an Event of Default.

 

“Holder”
or “Certificateholder” means a Person in whose name a Note is registered on the Registrar’s books.

 

“Indenture”
means this Indenture as amended or supplemented from time to time.

 

“Material
Subsidiary” means any majority-owned subsidiary of the Company that is material to the business of the Company, taken
as a whole.

 

    	 

    	 

    

 

“Notes”
means the Fixed Rate Subordinated Notes described herein issued under this Indenture.

 

“Officer”
means the principal executive officer, principal financial officer or principal accounting officer of the Company.

 

“Officer’s
Certificate” means a certificate signed by an Officer.

 

“Opinion
of Counsel” means a written opinion from legal counsel who is acceptable to the Trustee. The counsel may be an employee
of or counsel to the Company or the Trustee.

 

“Person”
means any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organization,
or government or any agency or political subdivision thereof.

 

“Principal”
of a debt security means the principal of the security plus the premium, if any, on the security.

 

“Responsible
Officer” means, with respect to the Trustee, any officer of the Trustee assigned to the Corporate Trust Department (or
any successor division or unit) of the Trustee located at the Corporate Trust Office of the Trustee, who shall have direct responsibility
for the administration of this Indenture, and for the purposes of Section 7.1 and Section 7.5 shall also include any other officer
of the Trustee’s to whom any corporate trust matter is referred because of such officer’s knowledge of and familiarity
with the particular subject and who shall have direct responsibility for the administration of this Indenture.

 

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

 

“Stated
Maturity” means, when used with respect to a Note, the date specified in such Note as the fixed date on which the principal
of such Note and any accrued but unpaid interest is due and payable.

 

“Subsidiary”
means any person of which at least a majority of capital stock having ordinary voting power for the election of directors or other
governing body of such person is owned by the Company directly or through one or more subsidiaries.

 

“TIA”
means the Trust Indenture Act of 1939 (15 U.S. Code 77aaa-77bbbb), as the same may be amended from time to time.

 

“Trustee”
means the party named as such above until a successor replaces it and thereafter means the successor.

 

    	2

    	 

    

 

	 	Section
    1.2.	Other
    Definitions.

 

	Term	 	Defined
    in
 Section	 
	 	 	 	 
	“Bankruptcy
    Law”	 	 	6.1	 
	“Covenant
    Defeasance”	 	 	8.2(c)	
	“Custodian”	 	 	6.1	 
	“Debt”	 	 	10.2	 
	“Event
    of Default”	 	 	6.1	 
	“Interest
    Payment Date”	 	 	2.2(b)	
	“Legal
    Defeasance”	 	 	8.2(b)	
	“Legal
    Holiday”	 	 	11.7	 
	“Officer”	 	 	11.10	 
	“Paying
    Agent”	 	 	2.4	 
	“Registrar”	 	 	2.4	 
	“Representative”	 	 	10.2	 
	“Senior
    Debt”	 	 	10.2	 
	“U.S.
    Government Obligations”	 	 	8.1	 

 

	 	Section
    1.3.	Incorporation
    by Reference of TIA.

 

Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture.

 

The
following TIA terms used in this Indenture have the following meanings:

 

“Indenture
Securities” means the Notes;

 

“Indenture
Security Holder” means a Certificateholder;

 

“Indenture
to be Qualified” means this Indenture;

 

“Indenture
Trustee” or “Institutional Trustee” means the Trustee; and

 

“Obligor”
on the Notes means the Company.

 

All
other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute, or defined by SEC
rule under the TIA have the meanings assigned to them.

 

	 	Section
    1.4.	Rules
    of Construction.

 

Unless
the context otherwise requires:

 

	 	(a)	a
    term has the meaning assigned to it;
	 	 	 
	 	(b)	an
    accounting term not otherwise defined has the meaning assigned to it in accordance with United States generally accepted accounting
    principles in effect on the date of execution of this Indenture;
	 	 	 
	 	(c)	“or”
    is not exclusive;
	 	 	 
	 	(d)	words
    in the singular include the plural, and in the plural include the singular; and
	 	 	 
	 	(e)	provisions
    apply to successive events and transactions.

 

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ARTICLE
2

THE NOTES

 

	 	Section
    2.1.	Form
    and Dating.

 

The
Notes shall be substantially in the form of EXHIBIT A, with such appropriate insertions, omissions, substitutions, and
other variations required or permitted by this Indenture. The Notes may have notations, legends, or endorsements required by law,
stock exchange rule, or usage, and may be issued in uncertificated or certificated form. If issued in uncertificated form, the
Company shall deliver a written or electronic confirmation of the terms of a Note to the Certificateholder thereof.

 

	 	Section
    2.2.	Terms.

 

(a)
Amount Unlimited; Terms. The aggregate principal amount of Notes which may be delivered under this Indenture is unlimited.
Notes may be issued in one or more series. The initial aggregate principal amount of the Notes to be delivered under this Indenture
shall be $70,000,000. The aggregate principal amount may be increased, without the need for approval of any Holders or the Trustee
by means of Company Order, as set forth in Section 9.1.

 

(b)
Interest. Interest will be calculated based on the actual number of days the Note is outstanding based on a 365/366 day
year. Interest will be earned daily and payable monthly or at maturity at the Holder’s request. If the Holder elects to
receive interest at maturity rather than monthly, interest will be compounded monthly. If any payment of the Note is due on a
Legal Holiday, then the Holder will not be entitled to payment of the amount due until the following day that is not a Legal Holiday,
and no interest will be due as a result of such delay. If the Holder elects to receive interest monthly, interest will be paid
on the first business day (not a Legal Holiday) of every month (each an “Interest Payment Date”). The first
Interest Payment Date will be the month following the month of the Date of Issue, except that if a Note is issued within the last
10 days preceding an Interest Payment Date, the first interest payment will be made on the next succeeding Interest Payment Date.
No payments of interest under fifty dollars will be made, with any interest payment under fifty dollars accruing and earning interest
on a monthly compounding basis until the payment due is at least fifty dollars on an Interest Payment Date.

 

(c)
Subordination. The Notes shall be subordinated and junior in right of payment to all Senior Debt of the Company as provided
in Article 10.

 

	 	Section
    2.3.	Execution.

 

If
the Company, pursuant to Section 9.1, provides for certificated Notes, one Officer shall sign the Notes for the Company by manual
or facsimile signature.

 

If
an Officer whose signature is on a Note no longer holds that office at the time the Note is delivered, the Note shall nevertheless
be valid.

 

    	4

    	 

    

 

	 	Section
    2.4.	Registrar
    and Paying Agent.

 

The
Company shall maintain an office or agency where Certificateholders may request registration of transfer or exchange of Notes
(“Registrar”) and an office or agency where Certificateholders may demand payment of Notes (“Paying
Agent”). The Registrar shall keep a register of the Notes and of their transfer and exchange. The Company may appoint
one or more co-registrars and one or more additional paying agents. The Company may change any Paying Agent, Registrar, or co-registrar
without notice to any Certificateholder. The term “Paying Agent” includes any additional paying agent. The
Company shall notify the Trustee of the name and address of any agent not a party to this Indenture. The Company or any of its
Subsidiaries may act as Paying Agent or Registrar. The Company initially appoints itself as Paying Agent and Registrar.

 

	 	Section
    2.5.	Paying
    Agent to Hold Money in Trust.

 

The
Company shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust for
the benefit of Certificateholders or the Trustee all money held by the Paying Agent for the payment of principal or interest on
the Notes, and will notify the Trustee of any failure by the Company in making any such payment. While any such failure continues,
the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company at any time may require a Paying
Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent shall have no further liability
for the money. If the Company acts as Paying Agent, it shall segregate and hold in a separate bank account for the benefit of
the Certificateholders all money held by it as Paying Agent. The Paying Agent may charge for its expenses in issuing a replacement
interest check.

 

	 	Section
    2.6.	Certificateholder
    Lists.

 

The
Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and
addresses of Certificateholders. If the Trustee is not the Registrar, then the Company shall timely furnish to the Trustee the
changes in this list and will furnish an updated list of the names and addresses of Certificateholders in such form and as of
such date and at such other times as the Trustee may request in writing.

 

	 	Section
    2.7.	Transfer
    and Exchange.

 

Upon
a request to the Registrar or a co-registrar to register, transfer or to exchange Notes for an equal principal amount of Notes,
the Registrar shall register the transfer or make the exchange if its requirements for such transactions are met. To permit registrations
of transfer and exchanges, the Company shall issue Notes at the Registrar’s request. The Company may charge for its expenses
in transferring or exchanging a Note.

 

The
Company shall not be required (i) to issue, transfer, or exchange any Note during a period beginning at the opening of business
15 days before the day of the mailing of a notice of redemption of Notes selected for redemption pursuant to Section 3.3 and ending
at the close of business on the date of such redemption, or (ii) to transfer or exchange any Note selected for redemption in whole
or in part.

 

    	5

    	 

    

 

Each
Holder of a Note agrees to indemnify the Company and the Trustee against any liability that may result from the transfer, exchange,
or assignment of such Holder’s Note in violation of any provision of this Indenture and/or applicable United States Federal
or state securities law.

 

To
the extent that the Trustee elects to or somehow is deemed to be acting as the Registrar or Paying Agent, the Trustee shall have
no obligation or duty to monitor, determine, or inquire as to compliance with any restrictions on transfer imposed under this
Indenture or under applicable law with respect to any transfer of any interest in any Note other than to require delivery of such
certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by
the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements
hereof.

 

Neither
the Trustee nor any agent of the Trustee shall have any responsibility for any actions taken or not taken by the Registrar.

 

	 	Section
    2.8.	Replacement
    Notes.

 

If
the Company, pursuant to Section 9.1, provides for certificated Notes, and if the Holder of a Note claims that the Note has been
lost, destroyed, or wrongfully taken, then the Company shall issue a replacement Note if the Trustee’s requirements are
met. If required by the Trustee or the Company, an indemnity bond must be sufficient in the judgment of both the Company and the
Trustee to protect the Company, the Trustee, or any Agent from any loss which any of them may suffer if a Note is replaced. The
Company may charge for its expenses in replacing a Note.

 

Every
replacement Note is an additional obligation of the Company and shall be entitled to all of the benefits of this Indenture equally
and proportionately with all other Notes duly issued hereunder.

 

	 	Section
    2.9.	Outstanding
    Notes.

 

The
Notes outstanding at any time are all of the Notes delivered by the Company pursuant to this Indenture except for those canceled
by it, those delivered to it for cancellation, and those described in this Section as not outstanding.

 

If
a Note is replaced pursuant to Section 2.8, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that
the replaced Note is held by a bona fide purchaser.

 

If
Notes are considered paid under Section 4.1, they cease to be outstanding and interest on them ceases to accrue.

 

	 	Section
    2.10.	Treasury
    Notes.

 

In
determining whether the Holders of the required principal amount of the Notes have concurred in any direction, waiver, or consent,
Notes owned by the Company or an Affiliate shall be disregarded, except that for the purposes of determining whether the Trustee
shall be protected in relying on any such direction, waiver, or consent, only Notes which a Responsible Officer of the Trustee
actually knows are so owned shall be so disregarded.

 

    	6

    	 

    

 

	 	Section
    2.11.	Cancellation.

 

The
Company at any time may request that the Registrar cancel any Note. The Registrar shall cancel all Notes surrendered for registration
of transfer, exchange, payment, replacement, or cancellation and shall destroy canceled Notes (subject to any applicable record
retention requirements). The Company may not issue new Notes to replace Notes that it has paid or that have been delivered to
the Registrar for cancellation.

 

ARTICLE
3

REDEMPTION

 

	 	Section
    3.1.	Applicability
    of Article.

 

Redemption
of Notes at the election of the Company, as permitted or required by any provision of this Indenture, shall be made in accordance
with such provision and this Article.

 

	 	Section
    3.2.	Notices
    to Trustee.

 

If
the Company wants to redeem the Notes pursuant to paragraph 2 of the Notes, it shall notify the Trustee by Officer’s Certificate
of the redemption date and the principal amount of Notes to be redeemed. The Company shall give each notice provided for in this
Section at least fifty (50) days before the redemption date (unless a shorter notice period shall be satisfactory to the Trustee).

 

	 	Section
    3.3.	Selection
    of Notes to be Redeemed.

 

If
fewer than all the Notes are to be redeemed, the Company shall select the Notes to be redeemed, and so inform the Trustee by Officer’s
Certificate, subject to the remainder of this Section. If less than all of a grouping of Notes, as specified by Officer’s
Certificate, are to be redeemed, the portion thereof selected for redemption shall be determined ratably or by lot. If fewer than
all of such grouping of Notes as specified by Officer’s Certificate are to be redeemed, the Trustee shall then make the
selection not more than fifty (50) days before the redemption date from Notes outstanding not previously called for redemption.
Provisions of this Indenture that apply to Notes called for redemption also apply to portions of Notes called for redemption.

 

	 	Section
    3.4.	Notice
    of Redemption.

 

At
least thirty (30) days but not more than sixty (60) days before a redemption date, the Company shall mail a notice of redemption
by first-class mail to each Holder of Notes whose Notes are to be redeemed.

 

    	7

    	 

    

 

The
notice shall identify the Notes to be redeemed and shall state:

 

		(a)	the
                                         redemption date;
	 	 	 
		(b)	the
                                         redemption price, which shall be equal to 100% of the principal amount of the Note, plus
                                         accrued interest on a daily basis to the redemption date;
	 	 	 
		(c)	the
                                         name and address of the Paying Agent;
	 	 	 
		(d)	that
                                         certificated Notes called for redemption must be surrendered to the Paying Agent to collect
                                         the redemption price; and
	 	 	 
		(e)	that
                                         interest on Notes called for redemption ceases to accrue on and after the redemption
                                         date.

 

At
the Company’s request, the Trustee, if it is then the Registrar, shall give the notice of redemption in the Company’s
name and at its expense; provided, however, that the Company shall have provided to the Trustee, at least 45 days prior to the
Redemption Date (unless a shorter notice period shall be satisfactory to the Trustee), the information required by clauses (a)
through (e) above.

 

	 	Section
    3.5.	Effect
    of Notice of Redemption.

 

Once
notice of redemption is mailed, Notes called for redemption become due and payable on the redemption date at the redemption price.

 

	 	Section
    3.6.	Deposit
    of Redemption Price.

 

On
or before the redemption date, the Company shall deposit with the Paying Agent, or if the Company is acting as Paying Agent it
shall deposit into a separate bank account pursuant to Section 2.5 hereof, money sufficient to pay the redemption price of and
accrued interest on all Notes to be redeemed on that date.

 

	 	Section
    3.7.	Notes
    Redeemed in Part.

 

Upon
redemption of a certificated Note in part, the Company shall issue for the Holder a new Note equal in principal amount to the
unredeemed portion of the partially-redeemed Note.

 

    	8

    	 

    

 

	 	Section
    3.8.	Redemption
    Option Upon Death of Holder.

 

(a)
Subject to the provisions of Article 10 and this Article 3, upon the death of any Holder of one or more Notes, the Company shall
be required to redeem Notes held by a Holder of such Notes at the date of such Holder’s death, as requested in the manner,
and subject to the limitations, set forth below. The redemption price shall be equal to 100% of the principal amount of the Note
plus accrued interest on a daily basis to the redemption date. Redemption of such Notes shall be made as soon as reasonably possible,
based on the Company’s then current cash position and needs, but generally within two weeks following the receipt by the
Company or the Trustee of all of the following:

 

	 	(1)	a
    written request for redemption of the Notes signed by a duly authorized representative of the Holder, which request shall
    set forth the name of the Holder, the date of death of the Holder and the principal amount of the Notes to be redeemed;
	 	 	 
	 	(2)	the
    Notes to be redeemed (if certificated); and
	 	 	 
	 	(3)	evidence
    satisfactory to the Company of the death of such Holder and the authority of the representative to such extent as may be required
    by the Company.

 

(b)
The Notes held by the Holder shall not be entitled to redemption pursuant to this Section unless the Notes to be redeemed have
been registered in the Holder’s name since their Date of Issue.

 

(c)
Authorized representatives of a Holder shall include the following: executors, administrators, or other legal representatives
of an estate; trustees of a trust; joint owners of Notes owned in joint tenancy or tenancy by the entirety; attorneys-in-fact;
and other persons generally recognized as having legal authority to act on behalf of another.

 

	 	Section
    3.9.	Redemption
    Option at Request of Holder.

 

Beginning
180 days after the issuance date, at the written request of the Holder delivered to the Company at any time, the Company may,
at its option and subject to the restrictions in Article 10 below, but shall not be required to, redeem the Note for a redemption
price equal to the principal amount plus an amount equal to the unpaid interest thereon for the Note, as adjusted, at the stated
rate to the redemption date minus an amount equal to the interest that would be payable thereon at the rate stated above over
the last 180 days immediately prior to the redemption date.

 

ARTICLE
4

 

COVENANTS

 

	 	Section
    4.1.	Payment
    of Notes.

 

The
Company shall pay or cause to be paid the principal of and interest on the Notes on the dates and in the manner provided in the
Notes. Principal and interest shall be considered paid on the date due if the Paying Agent, if other than the Company or a Subsidiary,
holds as of 10:00 a.m. Eastern Time on the due date money deposited by the Company in immediately available funds and designated
for and sufficient to pay all principal and interest then due.

 

 

    	9

    	 

    

 

	 	Section
    4.2.	SEC
    Reports.

 

The
Company shall file with the Trustee within fifteen (15) days after it files them with the SEC copies of the annual reports and
quarterly reports and of the information, documents, and other reports (or copies of such portions of any of the foregoing as
the SEC may by rules and regulations prescribe) for the Notes which the Company may be required to file with the SEC pursuant
to Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The
Company also shall comply with the other provisions of TIA Section 314(a).

 

Whether
or not the Company is subject to the reporting requirements of Section 13 or Section 15(d) of the Exchange Act, to the extent
not prohibited by the Exchange Act, the Company will make available to the Holders of the Notes without cost to any Holder, the
information, documents, and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations
prescribe) that are specified in Sections 13 and 15(d) of the Exchange Act within the time periods specified therein.

 

The
Company shall be deemed to have furnished such reports to the Holders of the Notes if it has filed such reports with the SEC using
the EDGAR filing system or placed such reports on the Company’s website and made them publicly available.

 

	 	Section
    4.3.	Compliance
    Certificate.

 

(a)
The Company shall deliver to the Trustee, within one hundred twenty (120) days after the end of each fiscal year of the Company,
an Officer’s Certificate stating that a review of the activities of the Company and its Subsidiaries during the preceding
fiscal year has been made under the supervision of the signing Officers with a view to determining whether the Company has kept,
observed, performed and fulfilled its obligations under this Indenture, and further stating, as to each such Officer signing such
certificate, that to the best of his or her knowledge the Company has kept, observed, performed and fulfilled each and every covenant
contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions and conditions
hereof (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which he
or she may have knowledge) and that to the best of his or her knowledge no event has occurred and remains in existence by reason
of which payments on account of the principal of or interest, if any, on the Notes are prohibited.

 

(b)
The foregoing notwithstanding, the Company shall, so long as any of the Notes are outstanding, promptly, and in any event within
30 days, deliver to the Trustee, forthwith upon any Officer becoming aware of any Default or Event of Default, an Officer’s
Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect
thereto.

 

	 	Section
    4.4.	Usury
    Laws.

 

The
Company will not voluntarily claim and will actively resist any attempts to claim the benefit of any usury laws against the Holders
of the Notes.

 

    	10

    	 

    

 

		Section
    4.5.	Money
    for Note Payments to be Held in Trust.

 

Whenever
the Company shall have one or more Paying Agents, it will, on or prior to each date for the payment of the principal of or interest
on the Notes, deposit with a Paying Agent a sum sufficient to pay the principal and interest so becoming due, such sum to be held
in trust for the benefit of the persons entitled to such payments; and, unless such Paying Agent is the Trustee, the Company will
promptly notify the Trustee of its action or failure so to act.

 

The
Company will cause each Paying Agent other than the Trustee to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will:

 

	 	(a)	hold
    all sums held by it for the payment of the principal of and interest on the Notes in trust for the benefit of the persons
    entitled thereto until such sums shall be paid to such persons or otherwise disposed of as herein provided;
	 	 	 
	 	(b)	give
    the Trustee notice of any default by the Company (or any other obligor upon the Notes) in the making of any payment of principal
    and interest; and
	 	 	 
	 	(c)	at
    any time during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee
    all sums so held in trust by such Paying Agent.

 

Subject
to Article 8, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, the Company
may at any time pay, or direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent,
such sums to be held by the Trustee upon the same terms as those upon which such sums were held by the Company or such Paying
Agent; and, upon such payment by the Company or any Paying Agent to the Trustee, the Company or such Paying Agent, as the case
may be, shall be released from all further liability with respect to such money.

 

	 	Section
    4.6.	Continued
    Existence.

 

Subject
to Article 5, the Company shall do or cause to be done all things necessary to preserve and keep in full force and effect (i)
its existence as a limited liability company, and the corporate, partnership, or other existence of each of its Material Subsidiaries,
in accordance with the respective organizational documents (as the same may be amended from time to time) of the Company or any
such Material Subsidiary and (ii) the rights (charter and statutory), licenses, and franchises of the Company and its Material
Subsidiaries; provided, however, that the Company shall not be required to preserve any such right, license, or franchise, or
the corporate, partnership, or other existence of any of its Material Subsidiaries, if the Board of Managers of the Company shall
determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Material
Subsidiaries, taken as a whole, and that the loss thereof is not adverse in any material respect to the Holders.

 

    	11

    	 

    

 

ARTICLE
5

 

SUCCESSORS

 

The
Company shall not consolidate or merge with or into, or transfer or lease all or substantially all of its assets to, any Person
unless the corporation formed by or surviving any such consolidation or merger (if other than the Company), or to which such sale
or conveyance shall have been made, assumes by supplemental indenture all the obligations of the Company under the Notes then
outstanding and this Indenture.

 

The
Company shall deliver to the Trustee prior to the proposed transaction an Officer’s Certificate to the foregoing effect
and an Opinion of Counsel stating that the proposed transaction and such supplemental indenture comply with this Indenture.

 

The
surviving corporation shall be the successor Company, but the predecessor Company in the case of a transfer or lease shall not
be released from the obligation to pay the principal of and interest on the Notes.

 

ARTICLE
6

DEFAULTS AND REMEDIES

 

	 	Section
    6.1.	Events
    of Default.

 

An
“Event Of Default” occurs if:

 

	 	(a)	the
    Company defaults in the payment of interest of any Note when the same becomes due and payable and the Default continues for
    a period of thirty (30) days;
	 	 	 
	 	(b)	the
    Company defaults in the payment of the principal on any Note when the same becomes due and payable at maturity, upon redemption
    or otherwise, and the Default continues for a period of thirty (30) days;
	 	 	 
	 	(c)	the
    Company fails to comply with any of its other agreements or covenants in, or provisions of, the Notes or this Indenture and
    the Default continues for the period and after the notice specified below;
	 	 	 
	 	(d)	the
    Company or any material subsidiary pursuant to or within the meaning of any Bankruptcy Law now or hereafter in effect:

 

	 	(1)	commences
    a voluntary proceeding under any such Bankruptcy Law;
	 	 	 
	 	(2)	consents
    to the entry of an order for relief against it in an involuntary Bankruptcy proceeding;

 

    	12

    	 

    

 

	 	(3)	consents
    to the appointment of a Custodian of it or for all or substantially all of its property;
	 	 	 
	 	(4)	makes
    a general assignment for the benefit of its creditors; or
	 	 	 
	 	(5)	generally
    is unable to pay its debts as the same become due;

 

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

 

	 	(1)	is
    for relief against the Company or any material subsidiary in an involuntary Bankruptcy proceeding;
	 	 	 
	 	(2)	appoints
    a Custodian of the Company or any material subsidiary or for all or substantially all of its property; or
	 	 	 
	 	(3)	orders
    the winding up or liquidation of the Company or any material subsidiary, and the order or decree remains unstayed and in effect
    for 60 days.

 

The
term “Bankruptcy Law” means Title 11 of the United States Code or any similar Federal or State Law for the
relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator, sequestrator, or
similar official under any Bankruptcy Law.

 

A
Default under clause (c) is not an Event of Default until the Trustee or the Holders of at least 25% in principal amount of the
then outstanding Notes notify the Company of the Default and the Company does not cure the Default within sixty (60) days after
receipt of the notice. The notice must specify the Default, demand that it be remedied and state that the notice is a “Notice
of Default.”

 

	 	Section
    6.2.	Acceleration.

 

If
an Event of Default occurs and is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in principal
amount of the then outstanding Notes, by notice to the Company and the Trustee, may declare the principal of and accrued interest
on all the Notes to be due and payable. Upon such declaration the principal and interest owing on the then outstanding Notes shall
be due and payable immediately. The Holders of a majority in principal amount of the then outstanding Notes, by notice to the
Trustee, may rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and
if all existing Events of Default have been cured or waived, except nonpayment of principal or interest that has become due solely
because of the acceleration.

 

	 	Section
    6.3.	Other
    Remedies.

 

If
an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of principal
and interest on the Notes or to enforce the performance of any provision of the Notes or this Indenture.

 

    	13

    	 

    

 

The
Trustee may maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding.
A delay or omission by the Trustee or any Holder of Notes in exercising any right or remedy accruing upon an Event of Default
shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are cumulative
to the extent permitted by law.

 

	 	Section
    6.4.	Waiver
    of Past Defaults.

 

The
Holders of a majority in principal amount of the then outstanding Notes, by notice to the Trustee, may waive an existing Default
or Event of Default and its consequences except a continuing Default or Event of Default in the payment of the principal of and
interest on the Notes.

 

	 	Section
    6.5.	Control
    by Majority.

 

The
Holders of not less than a majority in principal amount of the then outstanding Notes may direct the time, method, and place of
conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee. However,
the Trustee may refuse to follow any direction that conflicts with law or this Indenture, is unduly prejudicial to the rights
of other Holders of the Notes, or would involve the Trustee in personal liability.

 

	 	Section
    6.6.	Limitation
    on Suits.

 

The
Holder of Notes may pursue a remedy with respect to this Indenture or the Notes only if:

 

	 	(a)	the
    Holder gives to the Trustee notice of a continuing Event of Default;
	 	 	 
	 	(b)	the
    Holders of at least 25% in principal amount of the then outstanding Notes make a request to the Trustee to pursue the remedy;
	 	 	 
	 	(c)	such
    Holder or Holders offer to the Trustee indemnity satisfactory to the Trustee against any loss, liability, or expense;
	 	 	 
	 	(d)	the
    Trustee does not comply with the request within sixty (60) days after receipt of the request and the offer of indemnity; and
	 	 	 
	 	(e)	during
    such sixty (60)-day period the Holders of a majority of principal amount of the then outstanding Notes do not give the Trustee
    a direction inconsistent with the request.

 

No
Holder will have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect,
disturb, or prejudice the rights of any other of such Holders (it being understood that the Trustee does not have an affirmative
duty to ascertain whether or not such actions or forbearances are unduly prejudicial to such Holders).

 

    	14

    	 

    

 

	 	Section
    6.7.	Rights
    of Holders to Receive Payment.

 

Notwithstanding
any other provision of this Indenture, the right of any Holder of a Note to receive payment of principal and interest on the Note,
on or after the date demand is made for payment therefor, or to bring suit for the enforcement of any such payment on or after
such demand date, shall not be impaired or affected without the consent of the Holder.

 

	 	Section
    6.8.	Collection
    Suit by Trustee.

 

If
an Event of Default specified in Section 6.1(a) or Section 6.1(b) occurs and is continuing, the Trustee may recover judgment in
its own name and as trustee of an express trust against the Company for the whole amount of principal and interest and fees remaining
unpaid on the Notes with respect to which the Event of Default occurred in each case at the rate per annum borne by the Notes
and such amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses,
disbursements, and advances of the Trustee, its agents, and counsel.

 

	 	Section
    6.9.	Trustee
    May File Proofs of Claim.

 

The
Trustee is authorized to file such proofs of claim and other papers or documents as may be necessary or advisable in order to
have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements, and advances of
the Trustee, its agents, and counsel) and the Holders allowed in any judicial proceedings relative to the Company (or any other
obligor upon the Notes), its creditors or its property and shall be entitled and empowered to collect, receive, and distribute
any money or other property payable or deliverable on any such claims and any custodian in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee, and in the event that the Trustee shall consent in writing to
the making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable compensation,
expenses, disbursements, and advances of the Trustee, its agents, and counsel, and any other amounts due the Trustee under Section
7.7 hereof. To the extent that the payment of any such compensation, expenses, disbursements, and advances of the Trustee, its
agents, and counsel, and any other amounts due the Trustee under Section 7.7 hereof out of the estate in any such proceeding,
shall be denied for any reason, payment of the same shall be secured by a lien on, and shall be paid out of, any and all distributions,
dividends, money, securities, and other properties that the Holders may be entitled to receive in such proceeding whether in liquidation
or under any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee
to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment, or
composition affecting the Notes or the rights of any Holder, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.

 

    	15

    	 

    

 

	 	Section
    6.10.	Priorities.

 

If
the Trustee collects any money pursuant to this Article, it shall pay out the money in the following order:

 

	 	First:	to
    the Trustee, its agents, and attorneys for amounts due under Section 7.7;
	 	 	 
	 	Second:	to
    holders of Senior Debt to the extent required by Article 10;
	 	 	 
	 	Third:	to
    Holders of Notes for amounts due and unpaid on the Notes for principal and interest, ratably, without preference or priority
    of any kind, according to the amounts due and payable on the Notes for principal and interest, respectively; and
	 	 	 
	 	Fourth:	to
    the Company or to such party as a court of competent jurisdiction shall direct.

 

The
Trustee may fix a record date and payment date for any payment to the Certificateholders pursuant to this Section 6.10, and such
record date shall be no later than the 15th day of the month preceding the payment date.

 

	 	Section
    6.11.	Undertaking
    for Costs.

 

In
any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken
or omitted by it as a Trustee, a court in its discretion may assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.7, or a suit by Holders
of more than 10% in principal amount of the then outstanding Notes.

 

ARTICLE
7

 

TRUSTEE

 

	 	Section
    7.1.	Duties
    of Trustee.

 

(a)
If an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and power vested in it by
this Indenture, and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.

 

(b)
Except during the continuance of an Event of Default:

 

	 	(1)	The
    Trustee need perform only those duties that are specifically set forth in this Indenture and no duties, covenants, responsibilities,
    or obligations shall be implied in this Indenture against the Trustee; and
	 	 	 
	 	(2)	In
    the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness
    of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements
    of this Indenture. However, the Trustee shall examine the certificates and opinions to determine whether or not they conform
    on their face to the requirements of this Indenture.

 

    	16

    	 

    

 

(c)
The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

 

	 	(1)	This
    paragraph does not limit the effect of paragraph (b) of this Section;
	 	 	 
	 	(2)	The
    Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that
    the Trustee was negligent in ascertaining the pertinent facts;
	 	 	 
	 	(3)	The
    Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction
    received by it pursuant to Section 6.5; and
	 	 	 
	 	(4)	The
    Trustee shall not be required to expend or risk its own funds or otherwise incur financial liability in the performance of
    any of its duties under this Indenture or in the exercise of any of its rights or powers, if it has reasonable grounds to
    believe repayment of the funds or adequate indemnity against the risk or liability is not reasonably assured to it.

 

(d)
Every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section
and to the provisions of the TIA.

 

(e)
The Trustee may refuse to perform any duty or exercise any right or power unless it receives indemnity satisfactory to it against
any loss, liability, or expense.

 

(f)
The Trustee shall not be liable for interest on any money received by it except as the Trustee may expressly agree with the Company.
Money held in trust by the Trustee need not be segregated from the other funds except to the extent required by law.

 

(g)
The Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with
the direction of the Holders of not less than a majority in principal amount of the Notes at the time outstanding given pursuant
to Section 6.5 of this Indenture, relating to the time, method, and place of conducting any proceeding for any remedy available
to the Trustee, or exercising any trust or power conferred upon the Trustee under this Indenture.

 

	 	Section
    7.2.	Rights
    of Trustee.

 

(a)
The Trustee may conclusively rely on any document believed by it to be genuine and to have been signed or presented by the proper
person. The Trustee need not investigate any fact or matter stated in the document.

 

(b)
Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate or an Opinion of Counsel. The Trustee
shall not be liable for any action it takes or omits to take in good faith in reliance of the Officer’s Certificate or Opinion
of Counsel.

 

(c)
The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due
care.

 

    	17

    	 

    

 

(d)
The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within
its rights or powers.

 

(e)
In no event shall the Trustee be responsible or liable for special, indirect, punitive, or consequential loss or damage of any
kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood
of such loss or damage and regardless of the form of action.

 

(f)
The Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee
has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee
at the Corporate Trust Office of the Trustee, and such notice references the Notes and this Indenture.

 

(g)
The Trustee shall not be required to give any bond or surety in respect of the performance of its powers and duties hereunder.

 

(h)
The Trustee may request that the Company deliver a certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture.

 

(i)
The Trustee will not be required to investigate any facts or matters stated in any document, but the Trustee, in its discretion,
may make such further inquiry or investigation into such facts or matters as it may see fit. If the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the books, records, and premises of the Company, personally
or by agent or attorney at the sole cost of the Company and shall incur no liability or additional liability of any kind by reason
of such inquiry or investigation.

 

	 	Section
    7.3.	Individual
    Rights of Trustee.

 

Subject
to Section 7.1:

 

	 	(a)	The
    Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Company
    or an Affiliate with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights.
	 	 	 
	 	(b)	The
    Company shall notify the Trustee if the Notes become listed on any securities exchange or of any delisting thereof and the
    Trustee shall comply with Section 313(d) of the TIA.

 

	 	Section
    7.4.	Trustee’s
    Disclaimer.

 

The
Trustee makes no representation at to the validity or adequacy of this Indenture or the Notes, it shall not be accountable for
the Company’s use of the proceeds from the Notes, and it shall not be responsible for any statement in the Notes.

 

    	18

    	 

    

 

	 	Section
    7.5.	Notice
    of Defaults.

 

If
a Default or Event of Default occurs and is continuing and if it is known to the Trustee, the Trustee shall mail to Holders of
the Notes a notice of the Default or Event of Default within ninety (90) days after it occurs. Except in the case of a Default
or Event of Default in payment on a Note, the Trustee may withhold the notice if and so long as a committee of its Trust Officers
in good faith determines that withholding the notice is in the interests of Holders of the Notes.

 

	 	Section
    7.6.	Reports
    by Trustee to Holders.

 

Within
60 days after the reporting date stated in Section 11.10, the Trustee shall mail to Certificateholders a brief report dated as
of such reporting date that complies with Section 313(a) of the TIA. The Trustee also shall comply with Section 313(b)(2) of the
TIA.

 

A
copy of each report at the time of its mailing to Certificateholders shall be filed with the SEC and each stock exchange on which
the Notes are listed. The Company shall notify the Trustee when the Notes are listed on any stock exchange.

 

	 	Section
    7.7.	Compensation
    and Indemnity.

 

The
Company shall pay to the Trustee from time to time reasonable compensation for its services. The Trustee’s compensation
shall not be limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred by it. Such expenses shall include the reasonable compensation and
out-of-pocket expenses of the Trustee’s agents and counsel.

 

The
Company shall indemnify the Trustee or any predecessor Trustee and each of their respective officers, agents (including, for purposes
of illustration and not of limitation, any custodian and other Person employed to act hereunder by the Trustee), directors, and
employees for, and hold them harmless against any and all loss, damage, claims, liability, or expense incurred by it or them arising
out of or in connection with the acceptance or administration of the trust or trusts hereunder, including the costs and expenses
of defending itself or themselves against any claim (whether asserted by the Company, or any Holder or any other Person) or liability
in connection with the exercise or performance of any of its or their powers or duties hereunder, or in connection with enforcing
the provisions of this Section, except as set forth in the next two paragraphs. The Trustee shall notify the Company promptly
of any claim for which it may seek indemnity. The Company shall defend the claim and the Trustee shall cooperate in the defense.

 

The
Trustee may have separate counsel, and the Company shall pay the reasonable fees and expenses of such counsel. The Company shall
not be required to pay for any settlement made without its consent, which consent shall not be unreasonably withheld.

 

The
Company shall not be required to reimburse any expense or indemnify against any loss or liability incurred by the Trustee through
gross negligence, willful misconduct, or bad faith.

 

    	19

    	 

    

 

To
secure the Company’s payment of obligations in this Section, the Trustee shall have a lien prior to the Notes on all money
or property held or collected by the Trustee, including that held in trust to pay principal and interest on the Notes.

 

When
the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.1(d) or (e) occurs, the expenses
and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.

 

	 	Section
    7.8.	Replacement
    of Trustee.

 

A
resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s
acceptance of appointment as provided in this Section.

 

The
Trustee may resign by so notifying the Company. The Trustee may be removed with respect to the Notes by the Holders of a majority
in principal amount of the then outstanding Demand Notes by so notifying the Trustee and the Company. The Company may remove the
Trustee if:

 

	 	(a)	the
    Trustee fails to comply with Section 7.10;
	 	 	 
	 	(b)	the
    Trustee is adjudged a bankrupt or an insolvent or any order for relief is entered with respect to the Trustee under any Bankruptcy
    Law;
	 	 	 
	 	(c)	a
    Custodian or public officer takes charge of the Trustee or its property;
	 	 	 
	 	(d)	the
    Trustee becomes incapable of action; or
	 	 	 
	 	(e)	in
    the judgment of the Company, comparable services are available from another entity qualifying under Section 7.10 at a materially
    lower cost to the Company.

 

If
the Trustee resigns or is removed or if a vacancy exists in the office of the Trustee for any reason, the Company shall promptly
appoint a successor Trustee. Within one year after the successor Trustee takes office, a successor Trustee may be appointed by
act of the Holders of a majority in principal amount of the then outstanding Notes to replace the successor Trustee appointed
by the Company.

 

If
a successor Trustee does not take office within sixty (60) days after the retiring Trustee resigns or is removed, the retiring
Trustee, the Company, or the Holders of at least 10% in principal amount of the then outstanding Notes may petition any court
of competent jurisdiction for the appointment of a successor Trustee.

 

If
the Trustee fails to comply with Section 7.10, any Holder of the Notes may petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee.

 

    	20

    	 

    

 

A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Thereupon
the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights,
powers, and duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to the Holders
of Notes. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to
the lien provided for in Section 7.7.

 

	 	Section
    7.9.	Successor
    Trustee by Merger, Etc.

 

If
the Trustee consolidates, merges or converts into, or transfers all or substantially all of its corporate trust business to another
corporation, the successor corporation without any further act shall be the successor Trustee.

 

	 	Section
    7.10.	Eligibility;
    Disqualification.

 

This
Indenture shall always have a Trustee who satisfies the requirements of Sections 310(a)(1), 310(a)(2), and 310(a)(5) of the TIA.
The Trustee shall always have a combined capital and surplus as stated in the TIA. The Trustee is subject to Section 310(b) of
the TIA. Section 11.10 lists any excluded indenture or trust agreement.

 

	 	Section
    7.11.	Preferential
    Collection of Claims Against Company.

 

The
Trustee is subject to Section 311(a) of the TIA, excluding any creditor relationship described in Section 311(b) of the TIA. A
Trustee who has resigned or been removed shall be subject to Section 311(a) of the TIA to the extent indicated therein.

 

ARTICLE
8

 

DISCHARGE
OF INDENTURE; DEFEASANCE

 

	 	Section
    8.1.	Termination
    of Company’s Obligations.

 

This
Indenture shall cease to be of further effect (except that the Company’s obligations under Sections 7.7 and 8.5 shall survive)
when all outstanding Notes theretofore issued have been identified to the Trustee for cancellation. In addition, the Company may
terminate its obligations under this Indenture if:

 

	 	(a)	the
    Notes then outstanding are to be called for redemption within one year under arrangements satisfactory to the Trustee for
    giving the notice of redemption; and
	 	 	 
	 	(b)	the
    Company irrevocably deposits with the Trustee, in trust, for the benefit of the Holders, money or U.S. Government Obligations,
    or a combination thereof, in such amounts as will be sufficient (without reinvestment) to pay the principal and interest on
    the Notes on the stated date for payment or on the redemption date. The Company may make the deposit only during the one-year
    period and only if Article 11 permits it.

 

    	21

    	 

    

 

However,
the Company’s obligations in Sections 2.4, 2.5, 2.6, 2.7, 2.8, 4.1, 6.7, and 6.8, and in Article 10, shall survive until
no Notes are outstanding. Thereafter, only the Company’s obligations in Sections 7.7 and 8.5 shall survive.

 

If
a deposit is made pursuant to this Section 8.1, the Trustee, upon request, shall acknowledge in writing the discharge of the Company’s
obligations under this Indenture, except for those surviving obligations specified above.

 

In
order to have money available on a payment date to pay principal and interest on the Notes, the U.S. Government Obligations shall
be payable as to principal and interest on or before such payment date in such amounts as will provide the necessary money. U.S.
Government Obligations shall not be callable at the issuer’s option.

 

“U.S.
Government Obligations” means direct obligations of the United States of America for the payment of which the full faith
and credit of the United States of America is pledged.

 

	 	Section
    8.2.	Legal
    Defeasance and Covenant Defeasance.

 

(a)
The Company may, at its option and at any time, elect to have either paragraph (b) or (c) below be applied to all outstanding
Notes upon compliance with the conditions set forth in Section 8.3.

 

(b)
Upon the Company’s exercise under Section 8.2(a) hereof of the option applicable to this Section 8.2(b), the Company shall,
subject to the satisfaction of the conditions set forth in Section 8.3, be deemed to have been discharged from their obligations
with respect to all outstanding Notes on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”).
For this purpose, Legal Defeasance means that the Company shall be deemed to have paid and discharged the entire Debt represented
by the outstanding Notes, which shall thereafter be deemed to be “outstanding” only for the purposes of Section 8.4
hereof and the other Sections of this Indenture referred to in (1) and (2) below, and to have satisfied all its other obligations
under such Notes and this Indenture (and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder:

 

	 	(1)	the
    rights of Holders of outstanding Notes to receive, solely from the trust fund described in Section 8.4 hereof, and as more
    fully set forth in such Section 8.4, payments in respect of the principal of and interest on such Demand Notes when such payments
    are due;
	 	 	 
	 	(2)	the
    Company’s obligations with respect to such Notes under Article 2 and Section 4.1 hereof;
	 	 	 
	 	(3)	the
    rights, powers, trusts, duties, and immunities of the Trustee hereunder and the Company’s obligations in connection
    therewith; and
	 	 	 
	 	(4)	the
    provisions of this Article 8 applicable to Legal Defeasance.

 

    	22

    	 

    

 

Subject
to compliance with this Article 8, the Company may exercise its option under this Section 8.2(b) notwithstanding the prior exercise
of its option under Section 8.2(c) hereof.

 

(c)
Upon the Company’s exercise under paragraph (a) hereof of the option applicable to this paragraph (c), the Company shall,
subject to the satisfaction of the conditions set forth in Section 8.3 hereof, be released from their respective obligations under
the covenants contained in Sections 4.2 and 4.4 hereof with respect to the outstanding Notes on and after the date the conditions
set forth in Section 8.3 are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall thereafter
be deemed not “outstanding” for the purposes of any direction, waiver, consent, or declaration or act of Holders (and
the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding”
for all other purposes hereunder (it being understood that such Notes shall not be deemed outstanding for accounting purposes).
For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes, the Company may omit to comply with and
shall have no liability in respect of any term, condition, or limitation set forth in any such covenant, whether directly or indirectly,
by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other
provision herein or in any other document and such omission to comply shall not constitute an Event of Default under Section 6.1
hereof, but, except as specified above, the remainder of this Indenture and such Notes shall be unaffected thereby. In addition,
upon the Company’s exercise under paragraph (a) hereof of the option applicable to this paragraph (c), subject to the satisfaction
of the conditions set forth in Section 8.3 hereof, clause (c) of Section 6.1 hereof shall not constitute an Event of Default.

 

	 	Section
    8.3.	Conditions
    to Legal Defeasance or Covenant Defeasance.

 

The
following shall be the conditions to the application of either Section 8.2(b) or 8.2(c) hereof to the outstanding Notes:

 

	 	(a)	the
    Company must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders, money or U.S. Government Obligations,
    or a combination thereof, in such amounts as will be sufficient (without reinvestment), in the opinion of a nationally recognized
    firm of independent public accountants selected by the Company, to pay the principal and interest on the Notes on the stated
    date for payment or on the redemption date;
	 	 	 
	 	(b)	in
    the case of Legal Defeasance, the Company shall have delivered to the Trustee an Opinion of Counsel in the United States confirming
    that:

 

	 	(a)	the
    Company has received from, or there has been published by the Internal Revenue Service, a ruling, or
	 	 	 
	 	(b)	since
    the date of this Indenture, there has been a change in the applicable U.S. federal income tax law, in
    either case to the effect that, and based thereon, the Holders will not recognize income, gain, or loss for U.S. federal income
    tax purposes as a result of such Legal Defeasance and will be subject to U.S. federal income tax on the same amounts, in the
    same manner and at the same times as would have been the case if such Legal Defeasance had not occurred;

 

    	23

    	 

    

 

		(c)	in
    the case of Covenant Defeasance, the Company shall have delivered to the Trustee an Opinion of Counsel in the United States
    reasonably acceptable to the Trustee confirming that the Holders will not recognize income, gain, or loss for U.S. federal
    income tax purposes as a result of such Covenant Defeasance and will be subject to U.S. federal income tax on the same amounts,
    in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred;
	 	 	 
	 	(d)	no
    Default shall have occurred and be continuing on the date of such deposit;
	 	 	 
	 	(e)	the
    Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a Default under, this
    Indenture or a default under any other material agreement or instrument to which the Company or any of its Subsidiaries is
    a party or by which the Company or any of its Subsidiaries is bound;
	 	 	 
	 	(f)	the
    Company shall have delivered to the Trustee an Officer’s Certificate stating that the deposit was not made by it with
    the intent of preferring the Holders over any other creditors of the Company or with the intent of defeating, hindering, delaying,
    or defrauding any other of its creditors; and
	 	 	 
	 	(g)	the
    Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that the
    conditions provided for in clauses (a) through (f) of this Section 8.3 (in the case of the Officer’s Certificate), as
    applicable, and clauses (b), if applicable, and/or (c) and (e) of this Section 8.3 (in the case of the Opinion of Counsel)
    have been complied with.

 

	 	Section
    8.4.	Application
    of Trust Money.

 

The
Trustee shall hold in trust money or U.S. Government Obligations deposited with it pursuant to Section 8.1. It shall apply the
deposited money and the money from U.S. Government Obligations through the Paying Agent and in accordance with this Indenture
to the payment of principal and interest on the Notes. Money and Notes so held in trust are not subject to Article 10.

 

	 	Section
    8.5.	Repayment
    to the Company.

 

The
Trustee and the Paying Agent shall promptly pay to the Company upon request any money or Notes held by them at any time in excess
of amounts required to be so held hereunder.

 

The
Trustee and the Paying Agent shall pay to the Company upon request any money held by them for the payment of principal and interest
that remains unclaimed for two years. After payment to the Company, Certificateholders entitled to the money must look to the
Company for payment as general creditors unless an applicable abandoned property law designates another person.

 

    	24

    	 

    

 

ARTICLE
9

 

AMENDMENTS

 

	 	Section
    9.1.	Without
    Consent of Holders.

 

The
Company and the Trustee may amend this Indenture or the Notes without the consent of the Holders of the Notes by Company Order:

 

	 	(a)	to
    cure any ambiguity, defect, or inconsistency;
	 	 	 
	 	(b)	to
    comply with Article 5;
	 	 	 
	 	(c)	to
    provide for certificated Notes in addition to uncertificated Notes;
	 	 	 
	 	(d)	to
    increase the aggregate principal amount of Notes which may be delivered under this Indenture;
	 	 	 
	 	(e)	to
    make any change that does not adversely affect the legal rights hereunder of the Holders of the Notes; or
	 	 	 
	 	(f)	to
    comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture with the TIA.

 

After
an amendment under this Section becomes effective, the Company shall mail to the Holders of the Notes affected by such amendment
a notice briefly describing the amendment.

 

	 	Section
    9.2.	With
    Consent of Holders.

 

The
Company and the Trustee may amend this Indenture or the Notes with the written consent of the Holders of at least a majority in
principal amount of the then outstanding Notes. However, without the consent of each Certificateholder affected, an amendment
under this Section may not:

 

	 	(a)	reduce
    the amount of Notes whose Holders must consent to an amendment;
	 	 	 
	 	(b)	reduce
    the principal of or change the demand payment nature of any Note;
	 	 	 
	 	(c)	make
    any Note payable in money other than that stated in such Note;
	 	 	 
	 	(d)	make
    any change in Section 6.4, Section 6.7, or Section 9.2; or
	 	 	 
	 	(e)	make
    any change in Article 10 that adversely affects the rights of any Certificateholder.

 

    	25

    	 

    

 

An
amendment under this Section may not make any change that adversely affects the rights under Article 10 of any holder of an issue
of Senior Debt unless the holders of the issue pursuant to its terms consent to the change or the change is otherwise permissible.

 

The
Company may, but shall not be obligated to, fix a record date for the purpose of determining the Persons entitled to consent to
any indenture supplemental hereto. If a record date is fixed, the Holders on such record date, or their duly designated proxies,
and only such Persons, shall be entitled to consent to such supplemental indenture, whether or not such Holders remain Holders
after such record date; provided, that unless such consent shall have become effective by virtue of the requisite percentage having
been obtained prior to the date which is 90 days after such record date, any such consent previously given shall automatically
and without further action by any Holder be cancelled and of no further effect.

 

After
an amendment under this Section becomes effective, the Company shall mail to the Holders of the Notes affected by such amendment
a notice briefly describing the amendment.

 

	 	Section
    9.3.	Compliance
    with Trust Indenture Act.

 

Every
amendment to this Indenture or the Notes shall be set forth in a supplemental indenture that complies with the TIA as then in
effect.

 

	 	Section
    9.4.	Revocation
    and Effect of Consents.

 

Until
an amendment or waiver becomes effective, a consent to it by a Holder of a Note is a continuing consent by the Holder and every
subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notification
of the consent is not made on any Note. However, any such Holder or subsequent Holder may revoke the consent as to his or her
Note or portion of a Note if the Trustee receives the notice of revocation before the date the amendment or waiver becomes effective.
An amendment or waiver becomes effective in accordance with its terms and thereafter binds every Holder of the Notes.

 

	 	Section
    9.5.	Notation
    on or Exchange of Notes.

 

The
Company may place an appropriate notation about an amendment or waiver on any Note (or confirmation thereof) thereafter authenticated.
The Company in exchange for all Notes may issue and the Trustee shall authenticate, if the Trustee is acting as Registrar, new
Notes that reflect the amendment or waiver.

 

	 	Section
    9.6.	Trustee
    Protected.

 

The
Trustee shall sign all supplemental indentures and shall be fully protected in doing so, except that the Trustee need not sign
any supplemental indenture that adversely affects its rights. The Trustee shall be entitled to receive, and shall be fully protected
in relying on, an Opinion of Counsel and an Officer’s Certificate, which shall be provided at the expense of the Company.

 

 

    	26

    	 

    

 

ARTICLE
10

 

SUBORDINATION

 

	 	Section
    10.1.	Agreement
    to Subordinate.

 

The
Company agrees, and each Certificateholder by accepting a Note agrees, that the indebtedness evidenced by the Note is subordinated
in right of payment, to the extent and in the manner provided in this Article, to the prior payment in full of all Senior Debt,
and that the subordination is for the benefit of the holders of Senior Debt.

 

	 	Section
    10.2.	Certain
    Definitions.

 

“Debt”
means any indebtedness, contingent or otherwise, in respect of borrowed money (whether or not the recourse of the lender is to
the whole of the assets of the Company or only to a portion thereof), or evidenced by bonds, notes, debentures, or similar instruments
or letters of credit, or representing the balance deferred and unpaid on the purchase price of any property or interest therein,
except any such balance that constitutes a trade payable, and shall include any guarantee of any indebtedness described above.

 

“Representative”
means the indenture trustee or other trustee, agent, or representative for an issue of Senior Debt.

 

“Senior
Debt” means all Debt (present or future) created, incurred, assumed, or guaranteed by the Company (and all renewals,
extensions, or refundings thereof), except such Debt that by its terms expressly provides that such Debt is not senior or superior
in right of payment to the Notes. Senior Debt shall include without limitation (i) the guarantee by the Company of any Debt of
any other person (including, without limitation, subordinated Debt of another person), unless such Debt is expressly subordinated
to any other Debt of the Company, (ii) all Debt of the Company maintained with banks and finance companies and any line of credit
to be obtained by the Company in the future and (iii) all Debt of the Company obtained from Affiliates. Notwithstanding anything
herein to the contrary, Senior Debt shall not include Debt of the Company to any of its subsidiaries or under the Notes.

 

	 	Section
    10.3.	Liquidation;
    Dissolution; Bankruptcy.

 

Upon
any distribution to creditors of the Company in a liquidation or dissolution of the Company or in a bankruptcy, reorganization,
insolvency, receivership, or similar proceeding relating to the Company or its property:

 

	 	(a)	holders
    of Senior Debt shall be entitled to receive payment in full in cash of the principal and interest (including interest accruing
    after the commencement of any such proceeding) to the date of payment, on the Senior Debt before Certificateholders shall
    be entitled to receive any payment of principal and interest on Notes; and
	 	 	 
	 	(b)	until
    the Senior Debt is paid in full in cash, any distribution to which Certificateholders would be entitled but for this Article
    shall be made to holders of Senior Debt as their interest may appear, except that Holders of Notes may receive Notes that
    are subordinated to Senior Debt to at least the same extent as such Notes.

 

    	27

    	 

    

 

	 	Section
    10.4.	Default
    on Senior Debt.

 

Upon
the maturity of any Senior Debt by lapse of time, acceleration, or otherwise, all such Senior Debt shall first be paid in full,
or such payment duly provided for in cash or in a manner satisfactory to the holders of such Senior Debt, before any payment is
made by the Company or any person acting on behalf of the Company on account of the principal and interest on the Notes.

 

The
Company may not pay principal and interest on the Notes and may not acquire Notes for cash or property other than capital stock
of the Company if:

 

	 	(a)	a
    default on Senior Debt occurs and is continuing that permits holders of such Senior Debt to accelerate its maturity, and
	 	 	 
	 	(b)	the
    default is the subject of judicial proceedings or the Company receives a notice of the default from a person who may give
    it pursuant to Section 10.12. If the Company receives any such notice, a similar notice received within nine (9) months thereafter
    relating to the same default on the same issue of Senior Debt shall not be effective for purposes of this Section.

 

The
Company may resume payments on the Notes and may acquire them when:

 

	 	(a)	the
    default is cured or waived, or
	 	 	 
	 	(b)	one
    hundred twenty (120) days pass after the notice is given if the default is not the subject of judicial proceedings, if this
    Article otherwise permits the payment or acquisition at that time.

 

	 	Section
    10.5.	Acceleration
    of Notes.

 

If
payment of the Notes is accelerated because of an Event of Default, the Company shall promptly notify holders of Senior Debt of
the acceleration. The Company may pay Holders of the Notes when one hundred twenty (120) days pass after the acceleration occurs
if this Article permits the payment at that time.

 

	 	Section
    10.6.	When
    Distribution Must Be Paid Over.

 

In
the event that, notwithstanding the provisions of Section 10.4, the Company shall make any payment to the Trustee on account of
the principal and interest on the Notes, two (2) business days after the happening of a default in payment of the principal or
interest on Senior Debt, or two (2) business days after receipt by the Company and the Trustee of written notice as provided in
Sections 10.4 and 10.12 of an Event of Default or an event which, with the passage of time or the giving of notice or both, would
constitute an Event of Default with respect to any Senior Debt, then, unless and until such Default or Event of Default shall
have been cured or waived or shall have ceased to exist, such payment shall be held by the Trustee, in trust for the benefit of,
and shall be paid forthwith over and delivered to, the holders of Senior Debt (pro rata as to each of such holders on the basis
of the respective amounts of Senior Debt held by them) or their representative or the trustee under the indenture or other agreement
(if any) pursuant to which Senior Debt may have been issued, as their respective interests may appear, for application to the
payment of all Senior Debt remaining unpaid to the extent necessary to pay all Senior Debt in full in accordance with its terms,
after giving effect to any concurrent payment or distribution to or for the holders of Senior Debt.

 

    	28

    	 

    

 

If
a distribution is made to the Holders of Notes that because of this Article should not have been made to them, the Holders who
receive the distribution shall hold it in trust for holders of Senior Debt and pay it over to them as their interests may appear.

 

	 	Section
    10.7.	Notice
    by Company.

 

The
Company shall promptly notify the Trustee and the Paying Agent of any facts known to the Company that would cause a payment of
principal and interest on the Notes to violate this Article, but failure to give such notice shall not affect the subordination
of the Notes to the Senior Debt provided in this Article. Nothing in this Article 10 shall apply to claims of, or payments to,
the Trustee under or pursuant to Section 6.7.

 

	 	Section
    10.8.	Subrogation.

 

After
all Senior Debt is paid in full and until the Notes are paid in full, Holders of the then outstanding Notes shall be subrogated
to the rights of holders of Senior Debt to receive distributions applicable to Senior Debt to the extent distributions otherwise
payable to such Holders have been applied to the payment of Senior Debt. A distribution made under this Article to holders of
Senior Debt which otherwise would have been made to Certificateholders is not, as between the Company and Certificateholders,
a payment by the Company on Senior Debt.

 

	 	Section
    10.9.	Relative
    Rights.

 

This
Article defines the relative rights of Certificateholders and holders of Senior Debt. Nothing said in this indenture shall:

 

	 	(a)	impair,
    as between the Company and Certificateholders, the obligation of the Company, which is absolute and unconditional, to pay
    principal of and interest on the Notes in accordance with their terms;
	 	 	 
	 	(b)	affect
    the relative rights of Certificateholders and creditors of the Company other than holders of Senior Debt; or
	 	 	 
	 	(c)	prevent
    the Trustee or any Certificateholder from exercising its available remedies upon a Default or Event of Default, subject to
    the rights of holders of Senior Debt to receive distributions otherwise payable to Certificateholders.

 

    	29

    	 

    

 

If
the Company fails because of this Article to pay principal and interest on a Note on the due date, the failure is still a Default
or Event of Default.

 

	 	Section
    10.10.	Subordination
    may not be Impaired by Company.

 

No
right of any holder of Senior Debt to enforce the subordination of the indebtedness evidenced by the Notes shall be impaired by
any act or failure to act by the Company or by its failure to comply with this Indenture.

 

	 	Section
    10.11.	Distribution
    or Notice to Representative.

 

Whenever
a distribution is to be made or a notice given to holders of Senior Debt, the distribution may be made and the notice given to
their Representative.

 

	 	Section
    10.12.	Rights
    of Trustee and Paying Agent.

 

The
Trustee or Paying Agent may continue to make payments on the Notes until it receives notice of facts that would cause a payment
of principal and interest on the Notes to violate this Article. Only the Company, a Representative, or a holder of an issue of
Senior Debt that has no Representative may give the notice.

 

The
Trustee in its individual or any other capacity may hold Senior Debt with same rights it would have if it were not Trustee. Any
Agent may do the same with like rights.

 

	 	Section
    10.13.	Trust
    Moneys Not Subordinated.

 

Notwithstanding
anything contained herein to the contrary, payments from money or the proceeds of U.S. Government Obligations held in trust under
Article 8 by the Trustee for the payment of principal of and interest on the Notes shall not be subordinated to the prior payment
of any Senior Debt or subject to the restrictions set forth in this Article 10, and none of the Holders of the Notes shall be
obligated to pay over any such amount to the Company or any holder of Senior Debt of the Company or any other creditor of the
Company.

 

	 	Section
    10.14.	Trustee
    Not Fiduciary for Holders of Senior Debt.

 

The
Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Debt and shall not be liable to any such holders
if it shall mistakenly pay over or distribute to Holders of the Notes or the Company or any other person, money or assets to which
any holders of Senior Debt of the Company shall be entitled by virtue of this Article 10 or otherwise.

 

 

    	30

    	 

    

 

ARTICLE
11

 

MISCELLANEOUS

 

	 	Section
    11.1.	TIA
    Controls.

 

If
any provision of this Indenture limits, qualifies, or conflicts with another provision which is required to be included in this
Indenture by the TIA, the required provision shall control.

 

	 	Section
    11.2.	Notices.

 

Any
notice by the Company or the Trustee to the other is duly given if in writing and delivered in person or mailed by first-class
mail to the other’s address stated in Section 11.10. The Company or the Trustee by notice to the other may designate additional
or different addresses for subsequent notices or communications.

 

Any
notice to a Certificateholder shall be mailed by first-class mail to the address shown on the register kept by the Registrar or
such other name and addresses as provided to the Trustee pursuant to Sections 313(c)(2) and (3) of the TIA. Failure to mail a
notice or communication to a Certificateholder or any defect in it shall not affect its sufficiency with respect to other Certificateholders.

 

If
a notice is mailed in the manner provided above within the time prescribed, it is duly given, whether or not the addressee receives
it.

 

If
the Company mails a notice to Certificateholders, it shall mail a copy to the Trustee and each Agent at the same time.

 

All
other notices shall be in writing.

 

	 	Section
    11.3.	Communication
    by Holders With Other Holders.

 

Certificateholders
may communicate pursuant to Section 312(b) of the TIA with other Certificateholders with respect to their rights under this Indenture
or the Notes. The Company, the Trustee, the Registrar, and anyone else shall have the protection of Section 312(c) of the TIA.

 

	 	Section
    11.4.	Certificate
    and Opinion as to Conditions Precedent.

 

Upon
any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to
the Trustee:

 

	 	(a)	an
    Officer’s Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in
    this Indenture relating to the proposed action and the other items detailed in Section 11.5 have been complied with; and
	 	 	 
	 	(b)	an
    Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent and the other items detailed
    in Section 11.5 have been complied with.

 

    	31

    	 

    

 

	 	Section
    11.5.	Statements
    Required in Certificate or Opinion.

 

Each
certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include:

 

	 	(a)	a
    statement that the person making such certificate or opinion has read such covenant or condition;
	 	 	 
	 	(b)	a
    brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained
    in such certificate or opinion are based;
	 	 	 
	 	(c)	a
    statement that, in the opinion of such person, he or she has made such examination or investigation as is necessary to enable
    him or her to express an informed opinion as to whether or not such covenant or condition has been complied with; and
	 	 	 
	 	(d)	a
    statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with.

 

	 	Section
    11.6.	Rules
    by Trustee and Agents.

 

The
Trustee may make reasonable rules for action by or a meeting of Certificateholders. The Registrar or Paying Agent may make reasonable
rules and set reasonable requirements for its functions.

 

	 	Section
    11.7.	Legal
    Holidays.

 

A
“Legal Holiday” is a Saturday, a Sunday, or a day on which banking institutions are not required to be open.
If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that
is not a Legal Holiday, and no interest shall accrue for the intervening period.

 

	 	Section
    11.8.	No
    Recourse Against Others.

 

All
liability described in the Notes of any member, manager, director, officer, employee, or stockholder, as such, of the Company
and the Trustee is waived and released. Each Holder by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes.

 

	 	Section
    11.9.	Duplicate
    Originals.

 

The
parties may sign any number of copies of this Indenture. One signed copy is enough to prove this Indenture.

 

    	32

    	 

    

 

	 	Section
    11.10.	Variable
    Provisions.

 

The
Company initially appoints itself as Paying Agent and Registrar.

 

The
first Officer’s Certificate pursuant to Section 4.3 shall be for the fiscal year ending on December 31, 2018.

 

The
reporting date for Section 7.6 is May 15 of each year. The first reporting date is May 15, 2019.

 

The
Company’s address is:

 

13241
Bartram Park Blvd.

Suite
2401

Jacksonville,
Florida 32258

Attention:
Dan Wallach

 

The
Trustee’s address is:

 

U.S.
Bank National Association

Global
Corporate Trust Services

1349
West Peachtree Street, Suite 1050

Atlanta,
Georgia 30309

Attention:
Account Manager - Shepherd’s Finance, LLC

 

	 	Section
    11.11.	Governing
    Law.

 

The
internal laws of the State of Delaware shall govern this Indenture and the Notes.

 

	 	Section
    11.12.	No
    Adverse Interpretation of Other Agreements.

 

This
Indenture may not be used to interpret another indenture, loan, or debt agreement of the Company or a Subsidiary. Any such indenture,
loan, or debt agreement may not be used to interpret this Indenture.

 

	 	Section
    11.13.	Successors.

 

All
agreements of the Company in this Indenture and the Notes shall bind its successor. All agreements of the Trustee in this Indenture
shall bind its successor.

 

	 	Section
    11.14.	Severability.

 

In
case any provision in this Indenture or the Notes shall be invalid, illegal, or unenforceable, then the validity, legality, and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

    	33

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto hereby execute this Indenture as of the date first written.

 

	 	COMPANY:
	 	 
	 	SHEPHERD’S
    FINANCE, LLC
	 	 	 
	 	By:	
	 	Its:	Chief
    Executive Officer
	 	 	 
	 	TRUSTEE:
	 	 
	 	

U.S. BANK NATIONAL ASSOCIATION
	 	 	 
	 	By:	
	 	Its:	Assistant
    Vice President

 

    	34

    	 

    

 

Exhibit
A

 

FORM
OF FIXED RATE SUBORDINATED NOTE

 

OF

 

SHEPHERD’S
FINANCE, LLC

 

    	 

    	 

    

 

Fixed
Rate Subordinated Note

 

		 	___________
    __, 20__
			
	No.____	 	Jacksonville,
    Florida

 

Subject
to the restrictions in Section 6 below, ___________________________________from the date hereof, Shepherd’s Finance, LLC
(the “Company”) promises to pay ___________________________ DOLLARS at the main office of the Company, 13241 Bartram
Park Blvd., Suite 2401, Jacksonville, Florida 32258 and to pay interest thereon at the rate of ____% (percent) per annum, in accordance
with Section 1 below.

 

This
is one of a duly authorized issue of Fixed Rate Subordinated Notes of the Company (the “Notes”) issued under and subject
in all respects to the terms of an Indenture dated as of ________, 2018 (the “Indenture”), between the Company and
U.S. Bank National Association, as trustee (the “Trustee”). Reference is hereby made to the Indenture and all supplemental
indentures for a statement of the respective rights of the Company, the Trustee, the agents of the Company, and the Trustee and
the holders of the Notes. All capitalized terms used, but not defined, in this Note have the meanings assigned to them in the
Indenture. No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation
of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note in the manner herein prescribed.

 

1.
Interest. Interest will be calculated based on the actual number of days the Note is outstanding based on a 365/366 day
year. Interest will be earned daily and payable monthly or at maturity at the holder’s request. If the holder elects to
receive interest at maturity rather than monthly, interest will be compounded monthly. If any payment of the Note is due on a
Legal Holiday, then the holder will not be entitled to payment of the amount due until the following day that is not a Legal Holiday,
and no interest will be due as a result of such delay. If the holder elects to receive interest monthly, interest will be paid
on the first business day (not a Legal Holiday) of every month (each an “Interest Payment Date”). The first Interest
Payment Date will be the month following the month of the Date of Issue, except that if a Note is issued within the last 10 days
preceding an Interest Payment Date, the first interest payment will be made on the next succeeding Interest Payment Date. No payments
of interest under fifty dollars will be made, with any interest payment under fifty dollars accruing and earning interest on a
monthly compounding basis until the payment due is at least fifty dollars on an Interest Payment Date.

 

2.
Redemption by Company. Subject to the restrictions of Section 6 below and in accordance with the procedures set forth in
Article 3 of the Indenture, this Note may be redeemed by the Company prior to maturity for a redemption price equal to the principal
amount, plus any unpaid interest thereon to the date of redemption. Notice of redemption shall be given by mail to the holder
of this Note (the “Noteholder”) at his last address as it appears on the records of the Company not less than 30 nor
more than 60 days prior to the date fixed for redemption. Once notice of redemption is mailed, Notes called for redemption become
due and payable on the date of redemption set forth in the notice of redemption at the redemption price. On or before the redemption
date, the Company shall set aside money sufficient to pay the redemption price of all Notes to be redeemed on that date.

 

    	 

    	 

    

 

3.
Redemption at Request of Noteholder. BEGINNING 180 DAYS AFTER THE ISSUANCE DATE, AT THE WRITTEN REQUEST OF THE NOTEHOLDER
DELIVERED TO THE COMPANY, THE COMPANY MAY, AT ITS OPTION AND SUBJECT TO THE RESTRICTIONS OF SECTION 6 BELOW, BUT SHALL NOT BE
REQUIRED TO, REDEEM THIS NOTE for a redemption price equal to the principal amount plus an amount equal to the unpaid interest
thereon for this Note, as adjusted, at the stated rate to the redemption date minus an amount equal to the interest that would
be payable thereon at the rate stated above for a 180-day period.

 

4.
Redemption Upon Death of Noteholder. Upon the death of the Noteholder, the Company shall be required to redeem this Note
at the date of the Noteholder’s death, as requested in the manner, and subject to the limitations, set forth below. The
redemption price shall be equal to 100% of the principal amount of the Note plus accrued interest on a daily basis to the redemption
date. Redemption of this Note shall be made as soon as reasonably possible, based on the Company’s then current case position
and needs, but generally within two weeks following the receipt by the Company or the Trustee of all of the following:

 

	 	(a)	a
    written request for redemption signed by a duly authorized representative of the Noteholder, which request shall set forth
    the name of the Noteholder, the date of death of the Noteholder and the principal amount of this Note;
	 	 	 
	 	(b)	evidence
    satisfactory to the Trustee and the Company of the death of the Noteholder and the authority of the representative to such
    extent as may be required by the Trustee or Company.

 

This
Note shall not be entitled to redemption pursuant to this Section 4 unless the Note has been registered in the Noteholder’s
name since its Date of Issue.

 

Authorized
representatives of the Noteholder shall include the following: executors, administrators, or other legal representatives of an
estate; trustees of a trust; joint owner of the Note owned in joint tenancy or tenancy by the entirety; attorneys-in-fact; and
other persons generally recognized as having legal authority to act on behalf of another.

 

5.
Renewal Option at Maturity. Between 30 and 60 days prior to the maturity date of this Note, the Company will deliver a
notice of the maturity date to the Noteholder and, if the Company is offering any renewal options and has an effective offering
available, a renewal form containing the renewal options. The renewal form will contain the terms of Notes being offered at that
time and the Noteholder may select one of the renewal options offered. If the Noteholder properly completes, executes, and returns
the renewal form at least 5 business days prior to the maturity date, the Note will be deemed renewed under the renewal terms
selected and a new Note will be issued by the Company within 5 business days after the original maturity date. If the Noteholder
does not return a properly completed renewal form within the time period prescribed herein or there are no renewal options offered
by the Company, then the Company will pay the principal amount plus any unpaid interest to the Noteholder at maturity.

 

    	 

    	 

    

 

6.
Subordination. This Note is subordinated, in all rights to payment and in all other respects, to Senior Debt. Senior Debt
means all Debt (present or future) created, incurred, assumed, or guaranteed by the Company (and all renewals, extensions, or
refundings thereof), except such Debt that by its terms expressly provides that such Debt is not senior or superior in right of
payment to the Notes. Senior Debt shall include without limitation (i) the guarantee by the Company of any Debt of any other person
(including, without limitation, subordinated Debt of another person), unless such Debt is expressly subordinated to any other
Debt of the Company, (ii) all Debt of the Company maintained with banks and finance companies and any line of credit to be obtained
by the Company in the future and (iii) all Debt of the Company obtained from Affiliates. Notwithstanding anything herein to the
contrary, Senior Debt shall not include Debt of the Company to any of its subsidiaries or under the Notes. Any other Fixed Rate
Subordinated Notes issued by the Company pursuant to a public or private offering thereof shall be pari passu with this Note and
shall not constitute Senior Debt. Debt means any indebtedness, contingent or otherwise, in respect of borrowed money (whether
or not the recourse of the lender is to the whole of the assets of the Company or only to a portion thereof), or evidenced by
bonds, notes, debentures, or similar instruments or letters of credit, or representing the balance deferred and unpaid on the
purchase price of any property or interest therein, except any such balance that constitutes a trade payable, and shall include
any guarantee of any indebtedness described above. The Company agrees, and the Noteholder by accepting this Note agrees, to the
subordination provisions set forth in Article 10 of the Indenture.

 

7.
Amendments and Waivers. As permitted in the Indenture, the Indenture, other than the subordination provisions, may be amended
and the rights and obligations of the Company and the rights of the holders of the Notes under the Indenture modified at any time
by the Company with the consent of the Trustee and holders of a majority in principal amount of the then outstanding Notes. The
Company and the Trustee may not modify the Indenture without the consent of each holder affected if the modification (i) affects
the terms of payment of, the principal of, or any interest on, any Note; (ii) changes the percentage of Noteholders who consent
to a waiver or modification as required; (iii) affects the subordination provisions of the Indenture in a manner that adversely
affects the right of any holder; or (iv) waives any Event of Default in the payment of principal of, or interest on, any Note.
As permitted by the Indenture, the Trustee and holders of a majority in principal amount of the then outstanding Notes, on behalf
of the holders of all Notes, may waive compliance by the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences, except an Event of Default in the payment of principal or of interest on the Notes.

 

8.
Defaults and Remedies. If an Event of Default, as defined in the Indenture, occurs and is continuing, the principal of
and accrued interest on all Notes may be declared due and payable in the manner and with the effect provided in the Indenture.
The Indenture generally provides that an Event of Default occurs if: (i) the Company fails to pay any installment of interest
on a Note when the same becomes due and payable and the failure to pay continues for a period of thirty (30) days; (ii) the Company
fails to pay the principal of any Note when the same becomes due and payable at maturity, upon redemption or otherwise, and the
failure to pay continues for a period of thirty (30) days; (iii) the Company fails to comply with any of its other agreements
in, or the provisions of, the Note or the Indenture and such failure is not cured or waived within sixty (60) days after receipt
by the Company of a specific written notice from the Trustee or the holders of at least 25% in principal amount of the then outstanding
Notes; and (iv) the Company becomes subject to certain events of bankruptcy or insolvency.

 

    	 

    	 

    

 

9.
Transfer. As provided in the Indenture, this Note is transferable only on the Note register maintained by the Registrar,
upon surrender of this Note for transfer at the office of the Registrar, duly endorsed by, or accompanied by a written instrument
of transfer in a form satisfactory to the Company and the Registrar duly executed by, the registered holder hereof or his attorney
duly authorized in writing, a copy of which authorization must be delivered with any such instrument of transfer, and thereupon
one or more new Notes, of authorized denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees. A service fee may be charged to replace a lost or stolen Note, to transfer this Note, or to issue a
replacement payment check. The Company, the Trustee, and any agent of the Company or the Trustee may treat the person in whose
name this Note is registered as the owner hereof for the purpose of receiving payment as herein provided and for all other purposes,
and neither the Company, the Trustee, nor any such agent shall be affected by notice to the contrary. The Company currently serves
as the Registrar and Paying Agent for the Notes.

 

10.
Owners. The registered Noteholder shall be treated as the owner of the Note for all purposes.

 

11.
No Recourse. A member, manager, director, officer, employee, or stockholder, as such, of the Company shall not have any
liability for any obligations of the Company under this Note or for any claim based on, or in respect of such obligations or their
creation. The Noteholder by accepting this Note waives and releases all such liability. The waiver and release are part of the
consideration for the issue of this Note.

 

THIS
NOTE IS NOT A BANK DEPOSIT NOR A BANK OBLIGATION AND IS NOT INSURED BY THE FDIC.

 

IN
WITNESS WHEREOF, the Company has caused this Note to be signed in its company name by an Officer at Jacksonville, Florida, on
the date first written above.

 

	 	SHEPHERD’S
    FINANCE, LLC
	 	 	 
	 	By:	         
	 	Name:	 
	 	Title:

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