Document:

Exhibit 10.1

 

AMENDED AND RESTATED
MANAGEMENT AGREEMENT BETWEEN

TERRA PROPERTY
TRUST, INC. AND

TERRA REIT ADVISORS,
LLC

 

THIS
AMENDED AND RESTATED MANAGEMENT AGREEMENT (this "Agreement") is made this 8th day of February, 2018, by and between
TERRA PROPERTY TRUST, INC., a Maryland corporation (the "Company"), and TERRA REIT ADVISORS, LLC, a Delaware limited liability
company (the "Manager").

 

RECITALS

 

WHEREAS,
the Company is a Maryland corporation that intends to qualify for taxation as a real estate investment trust ("REIT") under
the Internal Revenue Code of 1986, as amended (the "Code") and is a subsidiary of Terra Secured Income Fund 5, LLC (the
"Parent");

 

WHEREAS,
the Company is party to that certain Management Agreement with Terra Income Advisors, LLC ("TIA"), dated as of September
1, 2016 (the "Existing Agreement");

 

WHEREAS,
the Manager is registered as an investment adviser with the Securities and Exchange Commission pursuant to the Investment Advisers
Act of 1940, as amended (the "Advisers Act");

 

WHEREAS,
as of the date hereof, TIA assigned all of its right, title and interest in and to the Existing Agreement to the Manager pursuant
to the terms thereof, and by its signature hereto, hereby confirms such assignment and assumptions;

 

WHEREAS,
the Company and the Manager have agreed that certain of such management services, as described in this Agreement, are to be provided
exclusively to the Company and not to the Parent and the fees and expenses associated with such services are to be paid exclusively
by the Company and not by the Parent; and

 

WHEREAS,
the Company and the Manager are entering into this Agreement in order to amend and restate the Existing Agreement and reflect their
agreement relating to the provision of such services to the Company and the payment by the Company of such fees and expenses to
the Manager, in each case on the terms and conditions set forth herein.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the premises and for other good and valuable consideration, the parties hereby agree that the Existing
Agreement is amended and restated as follows:

 

	1.	Duties of the Manager.

 

(a)Retention
of Manager. The Company hereby employs the Manager to act as the adviser to the Company and to manage the investment and
reinvestment of the Assets (as hereinafter defined) of the Company, subject to the supervision of the board of directors of
the Company (the "Board"), for the period and upon the terms set forth herein:

 

(i)in
accordance with the investment objectives, policies and restrictions that are set forth in the Consent Solicitation Statement and
Private Placement Memorandum of the Parent, dated as of November 13, 2015 (the "Private Placement Memorandum"); and

 

 

(ii)in
accordance with all other applicable federal and state laws, rules and regulations, and the Company's Articles of Incorporation
(the "Articles") and bylaws (the "Bylaws"), in each case as amended from time to time;

 

(b)Responsibilities
of Manager. Without limiting the generality of the foregoing, the Manager shall, during the term and subject to the provisions
of this Agreement, cause the Company to:

 

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(i)originate,
fund, acquire, structure, hold, develop, operate, sell, exchange, subdivide and otherwise dispose of assets of the Company;

 

(ii)borrow
money, and, if security is required therefor, to pledge or mortgage or subject assets of the Company to any security device, to
obtain replacements of any mortgage or other security device and to prepay, in whole or in part, refinance, increase, modify, consolidate,
or extend any mortgage or other security device;

 

(iii)enter
into such contracts and agreements as the Manager determines to be reasonably necessary or appropriate in connection with the Company's
business and purpose (including contracts with affiliates of the Manager) and any contract of insurance that the Manager deems
necessary or appropriate for the protection of the Company and the Manager, including errors and omissions insurance, for the conservation
of Company assets, or for any purpose convenient or beneficial to the Company;

 

(iv)prepare
or cause to be prepared reports, statements and other relevant information for distribution to the Parent;

 

(v)open
accounts and deposits and maintain funds in the name of the Company in banks, savings and loan associations, "money market" mutual
funds and other instruments as the Manager may deem in its discretion to be necessary or desirable;

 

(vi) lease personal property for use by the Company;

 

(vii)temporarily
invest the proceeds from sale of shares of common stock of the Company (the "Shares") in short-term, highly-liquid investments;

 

(viii) make secured or unsecured loans to the Company and receive interest on such loans;

 

(ix)place
all or a portion of the assets of the Company in a single purpose or bankruptcy remote entity, or otherwise structure or restructure
the Company to accommodate any financing for all or a portion of the assets of the Company; and

 

(x) perform such other services as shall be delegated to the Manager by the Board.

 

(c)Power
and Authority. To facilitate the Manager's performance of these undertakings, but subject to the restrictions contained herein,
the Company hereby delegates to the Manager, and the Manager hereby accepts, the power and authority on behalf of the Company to
effectuate its investment decisions for the Company, including the execution and delivery of all documents relating to the Company's
investments and the placing of orders for other purchase or sale transactions on behalf of the Company.

 

(d)Administrative
Services. So long as it is the Manager and the provisions of this Agreement for compensation and reimbursement of expenses
of the Manager are observed, the Manager shall have the responsibility of providing continuing administrative and executive support,
advice, consultation, analysis and supervision with respect to the functions of the Company, including decisions regarding the
sale or refinancing or other disposition of the assets of the Company, and compliance with federal, state and local regulatory
requirements and procedures. In this regard, the Manager may retain the services of such affiliates of the Manager or unaffiliated
parties as the Manager may deem appropriate to provide management and financial consultation and advice, and may enter into agreements
for the management and operation of the assets of the Company.

 

(e)Acceptance
of Engagement. The Manager hereby accepts such engagement and agrees during the term hereof to render the services described
herein for the compensation provided herein, subject to the limitations contained herein.

 

(f)Independent
Contractor Status. The Manager shall, for all purposes herein provided, be deemed to be an independent contractor and, except
as expressly provided or authorized herein, shall have no authority to act for or represent the Company in any way or otherwise
be deemed an agent of the Company.

 

(g)Record
Retention. Subject to review by, and the overall control of, the Board, the Manager shall keep and preserve books and records
relevant to the provision of its management services to the Company.

  

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	2.	Responsibilities of the Manager.

 

(a)In
rendering such services, the Manager shall:

 

(i)have
a fiduciary responsibility for the safekeeping and use of all the funds and assets of the Company;

 

(ii)devote
such of its time and business efforts to the business of the Company as it shall in its discretion, exercised in good faith, determine
to be necessary to conduct the business of the Company;

 

(iii)file
and publish all certificates, statements, or other instruments required by law for formation, qualification and operation of the
Company and for the conduct of its business in all appropriate jurisdictions;

 

(iv)cause
the Company to be protected by public liability, property damage and other insurance determined by the Manager in its discretion
to be appropriate to the business of the Company;

 

(v)at
all times use its best efforts to meet applicable requirements for the Company to be taxed as a REIT for federal income tax purposes;
and

 

(vi)observe
the covenants applicable to the Manager under the Amended and Restated Limited Liability Company Agreement of the Parent, dated
January 1, 2016 (as amended, the "Parent Operating Agreement").

 

(b)During
the term of this Agreement and so long as the provisions of this Agreement for compensation and reimbursement of expenses of the
Manager are observed, the Manager shall have the responsibility of providing continuing administrative and executive support, advice,
consultation, analysis and supervision with respect to the functions of the Company, including decisions regarding the sale or
refinancing or other disposition of the Assets, and compliance with federal, state and local regulatory requirements and procedures.
In this regard, the Manager may retain the services of such affiliates or unaffiliated parties as the Manager may deem appropriate
to provide management and financial consultation and advice, and may enter into agreements for the management and operation of
Company Assets.

 

	3.	Compensation of the Manager.

 

(a)Fees
to the Manager. The Company agrees to pay, and the Manager agrees to accept, as compensation for the
services provided by the Manager hereunder the following fees:

 

(i)Origination
Fee. The Company will pay to the Manager an origination fee (the "Origination Fee") in the
amount of one percent (1.0%) of the amount funded by the Company to originate, fund, structure, or acquire real
estate-related loans, including first and second mortgage loans, mezzanine loans, bridge loans, convertible mortgages, and
other loans related to high quality real estate, as well as the acquisition of any equity participations in the underlying
collateral of such loans, and also including any acquisition of real estate directly (each, an "Asset" and
collectively, "Assets"), including any third-party expenses related to such investment and any debt the Company uses
to fund the origination, funding, structuring, or acquisition of such Asset. The Origination Fee will be reduced by the
amount of any origination or equivalent fee paid by a borrower. In the event that the collateral backing any real
estate-related loan held by the Company is replaced with substitute collateral, the Company will pay an Origination Fee to
the Manager equal to the lesser of (A) one percent (1.0%) of the principal amount of the loan backed by the substitute
collateral and (B) the amount of the fee paid to the Company by the borrower in connection with such substitution.

 

(ii)Asset
Management Fee. The Company will pay to the Manager a monthly asset management fee at an annual rate
equal to one percent (1.0%) of the aggregate funds under management (including the amount of any debt incurred or assumed to finance
any Asset and related closing costs and expenses), as well as cash then held by the Company.

 

(iii)Asset
Servicing Fee. The Company will pay to the Manager a monthly asset servicing fee at an annual rate equal to 0.25% of the aggregate
gross origination price for each Asset (including the amount of any debt incurred or assumed to finance any Asset, and related
closing costs and expenses).

 

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(iv)Disposition
Fee. The Company will pay to the Manager a disposition fee (the "Disposition Fee") in the
amount of one percent (1.0%) of the gross sale price (including any portion of the sale price applied to any indebtedness to
which the Asset is subject) received by the Company from each Asset sale or disposition, or each maturity, prepayment,
workout, modification, restructuring, or extension of any Asset, or any portion of or interest in any Asset. The Disposition
Fee shall be paid concurrently with the closing of any such Asset sale or disposition, or any such maturity, prepayment,
workout, modification, restructuring, or extension of any Asset or any interest therein. No Disposition Fee shall be payable
in the event of any maturity, prepayment, workout, modification, restructuring, or extension of an Asset unless the borrower
thereunder has paid or is obligated to pay a corresponding fee, in which case the Disposition Fee will be the lesser of (A)
one percent (1.0%) of the original principal amount of the Asset and (B) the amount of such fee paid by such borrower in
connection with such transaction.

 

(v)Breakup
Fee. A transaction breakup fee (the "Breakup Fee") in the amount of fifty percent (50.0%) of any termination fees or
liquidated damages received by the Company from a third party as a result of (A) a failure of any investment or disposition transaction
to be consummated, (B) the failure of such third party to perform its obligations and covenants to the Company in connection with
an investment or disposition transaction, (C) the failure of such third party to satisfy any conditions precedent to consummation
of an investment or disposition transaction or (D) the termination of any contract related to an investment or disposition transaction.

 

(vi)Company
Expenses. The Company shall be responsible for all costs and expenses relating to the Company's activities, real estate-related
asset investments and the ongoing business of the Company, including (A) all costs and expenses attributable to originating, holding,
managing and disposing of the Assets, (B) legal, accounting, auditing, consulting and other fees and expenses, (C) all reasonable
out-of-pocket fees and expenses incurred by the Company, the Manager, or the Manager's agents, officers and employees relating
to investment and disposition opportunities for the Company not consummated, (D) any taxes, fees and other governmental charges
levied against the Company and (E) any fees and expenses paid to third parties in connection with raising capital for the Company.
The Manager may use its own employees or employees of any Affiliate of the Manager to provide accounting, tax, data processing,
engineering, market research or other professional services to the Company that would otherwise be performed by third parties and,
in such event, the Company will reimburse the cost of performing such services. Such reimbursements may include employment costs
and related overhead expenses allocable thereto, as reasonably determined by the Manager based on the time expended by the employees
who render such services, provided that no such reimbursement shall exceed the amount that would be payable by the Company if the
services were provided in an arms-length transaction with an independent third party. An "Affiliate" of the Manager shall mean
any person or entity: (a) directly or indirectly controlling, controlled by or under common control with the Manager; (b) owning
or controlling ten percent (10.0%) or more of the outstanding voting securities of the Manager; (c) that is an officer, director
or partner of the Manager; and/or (d) any person or entity for which an officer, director or partner of the Manager acts in any
capacity.

 

(b)Reimbursements. The
Company will reimburse the Manager for organization and offering expenses up to two percent (2.0%) of the gross proceeds raised
in any offering of Shares, which expenses include the cumulative cost of actual legal, accounting, printing, and marketing expenses
such as (i) salaries and direct expenses of employees and others while engaged in an offering, (ii) participating in due diligence,
training seminars and education conferences and (iii) coordinating generally the marketing process. To avoid duplication of reimbursements
payable by the Parent under the Parent Operating Agreement and to the Manager under this Agreement, no fee will be payable to the
Manager hereunder for Shares issued to the Parent in connection with an offering of interests in the Parent where the proceeds
from such issuance are then invested by the Parent in Shares.

 

(c)
Waiver or Deferral of Fees.The Manager shall have the right to elect to temporarily or permanently waive or defer
all or a portion of the fees listed in Sections 3(a) and 3(b) above that would otherwise be paid to it. Prior to the payment of
any fee to the Manager, the Company shall obtain written instructions from the Manager with respect to any waiver or deferral
of any portion of such fees. Any portion of a deferred fee payable to the Manager and not paid over to the Manager with respect
to any month, calendar quarter or year shall be deferred without interest and may be paid over in any such other month prior to
the occurrence of termination of this Agreement, as the Manager may determine upon written notice to the Company. Any of the fees
payable to the Manager under this Agreement for any partial month or calendar quarter shall be appropriately prorated.

 

	4.	Covenants of the Manager.

 

(a)Record
Retention. Subject to review by, and the overall control of, the Board, the Manager shall keep and preserve books and records
relevant to the provision of its management services to the Company.

 

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(b)Reports.
The Manager shall, upon written request of the Board, provide reports on the Company's business.

 

(c)Commingling
of Funds. The Manager covenants that it shall not permit or cause to be permitted the Company's funds to be commingled with
the funds of any other entity.

 

	5.	Other Activities of the Manager.

 

The
services of the Manager to the Company are not exclusive, and the Manager may engage in any other business or render similar or
different services to others including the direct or indirect sponsorship or management of other investment based accounts or commingled
pools of capital, however structured, having investment objectives similar to those of the Company, so long as its services to
the Company hereunder are not impaired thereby, and nothing in this Agreement shall limit or restrict the right of any manager,
partner, member (including its members and the owners of its members), officer or employee of the Manager to engage in any other
business or to devote his or her time and attention in part to any other business, whether of a similar or dissimilar nature, or
to receive any fees or compensation in connection therewith (including fees for serving as a director of, or providing consulting
services to, one or more of the Company's portfolio companies, subject to applicable law). The Manager assumes no responsibility
under this Agreement other than to render the services called for hereunder. It is understood that directors, officers, employees
and stockholders of the Company are or may become interested in the Manager and its affiliates, as directors, officers, employees,
partners, stockholders, members, managers or otherwise, and that the Manager and directors, officers, employees, partners, stockholders,
members and managers of the Manager and its affiliates are or may become similarly interested in the Company as stockholders or
otherwise.

 

	6.	Responsibility of Dual Directors, Officers and/or Employees.

 

If any person who is a manager, partner, member, officer or employee of the Manager
is or becomes a director, officer or employee of the Company and acts as such in any business of the Company, then such manager,
partner, member, officer or employee of the Manager shall be deemed to be acting in such capacity solely for the Company, and not
as a manager, partner, member, officer or employee of the Manager or under the control or direction of the Manager, even if paid
by the Manager.

 

	7.	Indemnification; Limitation of Liability.

 

(a)Indemnification.
The Manager, its members, manager, Affiliates, officers, directors, employees, agents and assigns and any officers of the Company,
shall not be liable for, and shall be indemnified and held harmless (to the extent of the Company's assets) from, any loss or damage
incurred by them, the Company or its shareholders in connection with the business of the Company, including costs and reasonable
attorneys' fees and any amounts expended in the settlement of any claims of loss or damage resulting from any act or omission performed
or omitted in good faith, which shall not constitute gross negligence or willful misconduct, pursuant to the authority granted,
to promote the interests of the Company. Moreover, neither the Manager nor any officer of the Company shall be liable to the Company
or to any shareholder of the Company because any taxing authorities disallow or adjust any deductions or credits in the Company
income tax returns.

 

(b)Limitation
of Liability. Notwithstanding Section 7(a), the Company shall not indemnify any Manager, or member, director, officer or other
employee thereof, for liability imposed or expenses incurred in connection with any claim arising out of a violation of the Securities
Act, or any other federal or state securities law, with respect to the offer and sale of Shares of the Company. Indemnification
will be allowed for settlements and related expenses in lawsuits alleging securities law violations, and for expenses incurred
in successfully defending such lawsuits, provided that (i) the Manager is successful in defending the action, (ii) the indemnification
is specifically approved by the court of law which shall have been advised as to the current position of the Securities and Exchange
Commission (as to any claim involving allegations that the Securities Act was violated) or the applicable state authority (as to
any claim involving allegations that the applicable state's securities laws were violated) or (iii) in the opinion of counsel for
the Company, the right to indemnification has been settled by controlling precedent.

 

	8.	Term.

 

This Agreement shall become effective as of the date hereof and shall run co-terminus with the Parent Operating Agreement.

 

	9.	Notices.

 

Any notice under this Agreement shall be given in writing, addressed and delivered or mailed, postage prepaid, to the other party
at its principal office.

 

	10.	Amendments. This Agreement may be amended in writing by mutual consent of the parties hereto.

 

 

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	11.	Counterparts.

 

This Agreement may be executed in counterparts, each of which shall be deemed to be an original copy and all of which together
shall constitute one and the same instrument binding on all parties hereto, notwithstanding that all parties shall not have signed
the same counterpart.

 

	12.	Entire Agreement; Governing Law.

 

This Agreement contains the entire agreement of the parties and supersedes all prior agreements,
understandings and arrangements with respect to the subject matter hereof. Notwithstanding the place where this Agreement may be
executed by any of the parties hereto, this Agreement shall be construed in accordance with the laws of the State of New York.

 

	13.	Incorporation
                                         of Recitals; Assignment.

 

The recitals to this Agreement are hereby incorporated herein by reference as is if more fully set
forth herein. By its signature hereto, TIA hereby assigns, transfers and conveys all of its right title and interest in and to
the Existing Agreement to the Manager and the Manager hereby accepts and assumes the same.

 

[Signature Page
Follows]

 

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IN WITNESS THEREOF,
the parties hereto have caused this Agreement to be duly executed on the date above written.

 

 

	COMPANY:	 
	 	 
	Terra Property Trust, Inc.	 
	 	 
	 	 
	By: 	/s/ Bruce Batkin	 
	Name: Bruce Batkin	 
	Title: Authorized Signatory	 
	 	 
	 	 
	MANAGER:	 
	 	 
	Terra RIET Advisors, LLC	 
	 	 
	 	 
	By: 	/s/ Bruce Batkin	 
	Name: Bruce Batkin	 
	Title: Authorized Signatory	 

 

[Signature Page
to the Management Agreement]

 

     

     

    

 

	AGREED TO AND ACCEPTEE BY FOR

    THE PURPOSES OF SECTION 13 ONLY:	 
	 	 
	Terra Income Advisors, LLC	 
	 	 
	 	 
	By:	/s/ Bruce Batkin	 
	Name: Bruce Batkin	 
	Title: Chief Executive Officer	 

 

[Signature Page
to the Management Agreement]Exhibit 10.2

 

VOTING AGREEMENT

 

THIS
VOTING AGREEMENT (this "Agreement"), dated as of February 8, 2018, is made among TERRA SECURED INCOME FUND 5, LLC, a Delaware
limited liability company (the "Fund"), TERRA PROPERTY TRUST, INC., a Maryland corporation (the "REIT"), and TERRA
REIT ADVISORS, LLC, a Delaware limited liability company ("TRA").

 

RECITALS

 

WHEREAS,
as of the date hereof, the Fund, directly or indirectly, owns all of the shares of common stock of the REIT;

 

WHEREAS,
on or about the date hereof, the REIT entered into that certain Amended and Restated Management Agreement with TRA (the "Management
Agreement"), whereby TRA was engaged to provide certain management services for the REIT on the terms and conditions set forth
therein; and

 

WHEREAS,
in connection with the foregoing, the parties desire to enter into this Agreement, to, among other items, set forth certain agreements
among them with respect to the REIT, its board of directors and the voting of the shares of common stock in the REIT directly or
indirectly held by the Fund, in each case on the terms and conditions contained herein.

 

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

 

Section
1.    Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth
below.

 

"Agreement" has
the meaning specified in the preamble of this Agreement.

 

"Board" means
the board of directors of the REIT or the IPO Entity, as the case may be.

 

"Business
Day" means any day other than a Saturday, a Sunday or a day on which banks located in New York, New York are required or authorized
to be closed for the conduct of regular banking business. If the date set for any action hereunder is a date other than a Business
Day, then such date shall be the next succeeding day that is a Business Day.

 

"Common
Shares" means the shares of common stock of the REIT or the IPO Entity, as the case

may be.

 

"Directors" means
the members of the Board.

 

"Fund" has the
meaning specified in the preamble of this Agreement.

 

"Fund Manager"
means Terra Fund Advisors, LLC, the external manager of the Fund.

 

"Fund Nominees"
has the meaning set forth in Section 2.01.

 

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"Fund
Operating Agreement" means the Amended and Restated Limited Liability Company Agreement of the Fund, dated as of January 1,
2016.

 

"Independent
Directors" means Directors who meet the criteria for independent directors under the listing rules of the New York Stock Exchange
(or such other national securities exchange which, at such time, may be the primary exchange on which the shares of common stock
of the IPO Entity are then listed or quoted) and otherwise established by the IPO Entity.

 

"Initial Period"
has the meaning set forth in Section 2.02.

 

"IPO"
means any transaction or series of related transactions which results in the shares of any IPO Entity being publicly traded.

 

"IPO
Entity" means the REIT or a Person of which it is a Predecessor (as defined under Rule 405 of the Securities Act).

 

"Management Agreement"
has the meaning set forth in the recitals of this Agreement.

 

"Notice" has
the meaning set forth in Section 6 of this Agreement.

 

"Person"
means any individual, corporation, partnership, association, trust, limited liability company or any other entity or organization,
including a government or political subdivision or an agency or instrumentality thereof.

 

"REIT" has the
meaning specified in the preamble of this Agreement.

 

"Securities
Act" means the U.S. Securities Act of 1933, as amended from time to time, or any successor statute, and all rules and regulations
promulgated thereunder.

 

"TRA"
has the meaning specified in the preamble of this Agreement.

 

"TRA Nominees"
has the meaning set forth in Section 2.01.

 

In
this Agreement, unless otherwise specified: (i) singular words include the plural and plural words include the singular; (ii) words
that include a number of constituent parts, things or elements shall be construed as referring separately to each constituent part,
thing or element thereof, as well as to all such constituent parts, things or elements as a whole; (iii) words importing any gender
shall include the masculine, the feminine and the neuter; (iv) references to any Person include such Person's successors and permitted
assigns; (v) references to any statute or other law include all applicable rules, regulations and orders adopted or made thereunder
and all statutes or other laws amending, consolidating or replacing the statute or law referred to; (vi) references to any agreement
or other document, including this Agreement, include all subsequent amendments thereto or hereto or other modifications thereof
or hereof; (vii) the words "include" and "including" and words of similar import, shall be deemed to be followed
by the words "without limitation"; (viii) the words "hereto," "herein," "hereof," "hereunder"
and words of similar import, refer to this Agreement in its entirety unless the context requires otherwise; (ix) the word "will"
shall be construed to have the same meaning and effect as the word "shall," and the word "or" shall not be exclusive; (x)references
to Articles, Sections and paragraphs are to the Articles, Sections and paragraphs of this Agreement; (xi) numberings and headings
of Articles, Sections and paragraphs are inserted as a matter of convenience and shall not affect the construction of this Agreement;
and (xii) any reference herein to the giving of "consent," "approval," "discretion" or other words of similar import on the part
of a Person shall mean in the sole and absolute discretion of such Person.

 

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Section 2.    REIT
Board Matters

 

2.01Size
of the Board; Initial Board Membership. Immediately prior to the execution of this Agreement, the Board has been expanded from
five to eight members and one existing Director, Simon Milde, has resigned from the Board. The four other existing Directors shall
continue as of the date hereof to be Directors, three of whom the Board has determined qualify as Independent Directors. The four
continuing Directors, together with their replacements appointed by the Fund under the provisions of this Agreement, shall be referred
to as "Fund Nominees." In connection with the execution of this Agreement, TRA, as the manager under the Management Agreement,
has nominated four other individuals to serve as Directors, two of whom the existing Independent Directors have determined qualify
as Independent Directors. Such four TRA nominated individuals have been added to the Board. Mr. Andrew Axelrod, one of the individuals
nominated by TRA, has been elected as Chairman of the Board. The four Directors nominated by TRA, together with their replacements
appointed by TRA under the provisions of this Agreement, shall be referred to as the "TRA Nominees."

 

2.02Continuing
Membership.    The parties agree that, subject to Section 2.04(b), from and after the date hereof and until
the earlier of (1) the date that is 18 months after the date hereof or (2) the date of that nominations for the Board are due for
the 2019 annual meeting of stockholders of the REIT (or the IPO Entity, as the case may be) (the "Initial Period"): (a)
the Board will continue to consist of eight Directors, including at least five Independent Directors, and (b) the Fund shall have
the right to nominate the Fund Nominees or other individuals to replace as Directors any Fund Nominees who shall depart from the
Board, while TRA shall have the right to nominate the TRA Nominees or other individuals to serve as Directors to replace any TRA
Nominees who shall depart from the Board, provided that if any departing nominee is an Independent Director, the individual nominated
as a replacement Director under the provisions of this Agreement shall also qualify as an Independent Director as determined in
good faith by the remaining Independent Directors of the Board, and provided further that the Fund and/or TRA, as applicable, provides
Notice to the REIT, TRA and the Fund of any such replacement no later than 90 days after a vacancy created by the departure of
their nominee has occurred, or if any nomination is proposed in connection with an annual meeting of stockholders, Notice of such
nomination is provided in advance of the date that is identified by the Board as the deadline for "management's slate" of Directors
to be presented to stockholders of the REIT (or the IPO Entity, as the case may be) at such annual meeting.

 

2.03Nomination
Rights Following the Initial Period. The nomination rights specified in Section 2.02 shall terminate at the end of the Initial
Period. However, for the period beginning on the day following the Initial Period and continuing for the period that TRA remains
the external manager of the IPO Entity, TRA shall have the right to nominate two individuals to serve as Directors of the IPO Entity
(which nominees need not be Independent Directors) and for the period beginning on the day following the end of the Initial Period
and ending on the date that the Fund no longer holds at least 10% of the outstanding shares of common stock of the IPO Entity,
the Fund shall have the right to nominate one individual to serve as a Director of the IPO Entity (who need not be an Independent
Director).

 

2.04Vacancies.

 

(a)The
parties agree if a vacancy on the Board is created by the death, disability, retirement, resignation, refusal to stand for
reelection, unwillingness to nominate or removal of any Director previously nominated by the Fund or TRA, during the period
that the Fund or TRA, as the case may be, enjoys nomination rights with respect to such Director, any individual nominated by
or at the direction of the Board or any duly authorized committee thereof to fill such vacancy shall be, and the REIT (or the
IPO Entity) shall use its best efforts to cause such vacancy to be, filled as soon as possible, by an individual nominated by
the Fund (if the former Director had been a Fund Nominee) or by an individual nominated by TRA (if the former Director had
been a TRA Nominee).

 

(b)Notwithstanding
anything to the contrary contained in Section 2.02 or Section 2.04(a), in the case of the first Independent Director Fund Nominee,
if any, who departs the Board due to such Director's death, disability, voluntary resignation, refusal to stand for reelection
or failure to be nominated by the Fund, TRA (and not
the Fund) shall have the right to nominate an individual to replace such departing Independent Director, and such replacement Director
shall thereafter also be considered a TRA Nominee for purposes of this Agreement.

 

    3

     

    

 

2.05Mutual
Cooperation. The parties agree that, except as may be limited by law or the provisions of other agreements to which the Fund,
the REIT or TRA are or may in the future become bound, they shall reasonably cooperate with each other in implementing the provisions
of this Section 2, including, without limitation, the REIT (or the IPO Entity) listing the nominations made by the Fund and TRA
pursuant to this Section 2 on any proxy issued by the REIT (or the IPO Entity) with respect to an election of the Board and voting
all Common Shares directly or indirectly owned thereby in favor (or against the removal) of the Directors properly nominated in
accordance with this Section 2. During the period that the Fund or TRA, as the case may be, enjoys nomination rights with respect
to a Director, the party enjoying such nomination rights with respect to such Director may seek the removal of such Director, and
the parties agree, except as may be limited by the provisions of other agreements to which the Fund, the REIT (or the IPO Entity)
or TRA are or may in the future become bound, to reasonably cooperate with each other in effecting the removal of such Director
and installing on the Board his or her replacement nominated by the Fund or TRA, as applicable, including calling and attending
(in person or by proxy) stockholder meetings and voting all Common Shares directly or indirectly owned thereby in favor of such
removal and such replacement.

 

2.06Director
Qualification. Nothing in this Section 2 shall be deemed in any way to amend, modify or contravene any of the requirements
of the REIT (or the IPO Entity, as applicable) (including, without limitation, those set forth in its organizational documents)
for Directors and/or Independent Directors and all such Directors and Independent Directors shall be required to meet such applicable
requirements in order to be nominated pursuant to this Section 2.

 

Section
3.    Voting of Common Shares.    Except as otherwise required by law or other agreement
to which the Fund is or may become a party and other than with respect to the election of Directors as set forth above, the Fund
shall vote all Common Shares directly or indirectly held by it in accordance with the recommendations made by the Board with respect
to the matter being voted on.

 

Section
4.    Termination. The rights and obligations of the Fund under this Agreement shall terminate on the
earlier of (1) the date that the Fund is dissolved or (2) upon the expulsion, Event of Insolvency (as defined in the Fund Operating
Agreement), or other cessation to exist of the Fund Manager.

 

Section
5.    Execution. This Agreement may be executed in any number of counterparts, each of which when so
executed and delivered will be deemed an original, and such counterparts together will constitute one and the same instrument.

 

Section
6.    Notices. All notices, consents, approvals and other communications provided for hereunder
shall be in writing and shall be delivered (i) by certified mail, return receipt requested, (ii) by hand, (iii) by recognized
overnight courier delivery service (with charges prepaid) or (iv) emailed (with a hard copy sent by recognized overnight
courier delivery service (with charges prepaid) on the same Business Day as such transmission), to any party at the address
of such Person listed below, or, in each case, at such other address as shall be designated by such Person in a written
notice to each other party complying as to delivery with
the terms of this Section 6 (each, a "Notice"). All such Notices shall be effective: (x) if deposited with the United States
Postal Service certified mail, return receipt requested, three Business Days after deposit therewith; (y) if sent by hand delivery
or express courier, upon delivery or refusal; and (z) if transmitted by email, on the date of such transmission (provided that
a confirmation copy is so sent as provided above).

 

    4

     

    

 

		(a)	If
to the REIT or the Fund, to:

 

c/o Terra Capital Partners

805 Third Avenue, 8th
Floor

New York, New York 10022

Attention:    Mr.
Bruce Batkin

Telephone:  (212)
753-5100

Email:          bbatkin@tcp-us.com

 

and

 

c/o Axar Terra LLC

1330 Avenue of the Americas,
30th Floor

New York, NY 10019

Attention:    Vik
Uppal

Telephone:  (212)
356-6130

Email:           vuppal@axarcapital.com

 

with a copy (which shall
not constitute Notice) to:

 

Clifford Chance US LLP

31 West 52nd Street

New York, New York 10019

Attention:    Jay
L. Bernstein, Esq. and Jacob Farquharson, Esq.

Telephone:  (212) 878-8527 (Mr. Bernstein)

(212)
878-3302 (Mr. Farquharson)

Email:          jay.bernstein@cliffordchance.com (Mr. Bernstein)

      jacob.farquharson@cliffordchance.com (Mr. Farquharson)

 

and

 

Kirkland & Ellis
LLP

300 N. LaSalle

Chicago, Illinois 60654

Attention:    Edward
J. Schneidman, P.C.

      Scott A. Moehrke, P.C.
Michael Chu

Telephone:  (312)
862-3333 (Edward J. Schneidman, P.C.)

(312)
862-2199 (Scott A. Moehrke, P.C.)

(312)
862-2101 (Michael Chu)

Email:    
     Edward.Schneidman@kirkland.com

     Scott.Moehrke@kirkland.com

     Michael.Chu@kirkland.com

 

    5

     

    

 

		(b)	If
to TRA, to:

 

c/o Terra Capital Partners

805 Third Avenue, 8th
Floor

New York, New York 10022

Attention:    Mr.
Simon Milde

Telephone:  (212) 753-5100

Email:          smilde@tcp-us.com

 

and

 

c/o Axar Terra LLC

1330 Avenue of the Americas,
30th Floor

New York, NY 10019

Attention:    Vik
Uppal

Telephone:  (212)
356-6130

Email:          vuppal@axarcapital.com

 

with a copy (which shall
not constitute notice) to:

 

Clifford Chance US LLP

31 West 52nd Street

New York, New York 10019

Attention:    Jay
L. Bernstein, Esq. and Jacob Farquharson, Esq.

Telephone:  (212) 878-8527 (Mr. Bernstein)

(212) 878-3302 (Mr.
Farquharson)

Email:          jay.bernstein@cliffordchance.com (Mr. Bernstein)

jacob.farquharson@cliffordchance.com (Mr. Farquharson)

 

and

 

Kirkland & Ellis
LLP

300 N. LaSalle

Chicago, Illinois 60654

Attention:    Edward
J. Schneidman, P.C.

Scott
A. Moehrke, P.C. Michael Chu

Telephone:  (312)
862-3333 (Edward J. Schneidman, P.C.)

(312)
862-2199 (Scott A. Moehrke, P.C.)

(312)
862-2101 (Michael Chu)

Email:         Edward.Schneidman@kirkland.com

Scott.Moehrke@kirkland.com

Michael.Chu@kirkland.com

 

Section
7.    Amendments and Waivers. The provisions of this Agreement may be amended with the prior written
consent of all parties hereto. Any waiver, permit, consent or approval of any kind or character on the part of any party hereto
of any provision or condition of this Agreement must be made in writing and shall be effective only to the extent specifically
set forth in writing.

 

    6

     

    

 

Section
8.    Successors and Assigns; No Third Party Beneficiary. This Agreement and all terms, provisions and
conditions hereof shall be binding upon the parties hereto, and shall inure to the benefit of the parties hereto and, except as
otherwise provided herein, to their respective heirs, executors, personal representatives, successors and assigns. This Agreement
is intended solely for the benefit of the parties hereto and, except as expressly provided to the contrary in this Agreement, is
not intended to confer any benefits upon, or create any rights in favor of, any person other than the parties hereto, including,
without limitation, of any creditor or other Person to whom any debts, liabilities or obligations are owed by (or who otherwise
has any claim against) any party hereto.

 

Section
9.    Governing Law. This Agreement, and the application or interpretation thereof, shall be governed
exclusively by its terms and by the laws of the State of Delaware, excluding the conflict of laws provisions thereof.

 

Section
10.    Consent to the Non-Exclusive Jurisdiction of the Courts of Delaware. EACH PARTY HEREBY IRREVOCABLY
SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF FEDERAL AND STATE COURTS OF THE STATE OF DELAWARE IN RESPECT OF ANY ACTION, SUIT OR
PROCEEDING ARISING OUT OF, IN CONNECTION WITH OR RELATING TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY, AND EACH
PARTY HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION, SUIT OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH
DELAWARE STATE OR FEDERAL COURT. EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT THAT IT MAY LEGALLY DO SO, THE DEFENSE
OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION, SUIT OR PROCEEDING. EACH PARTY HEREBY IRREVOCABLY CONSENTS TO THE SERVICE
OF ANY AND ALL PROCESS IN ANY ACTION, SUIT OR PROCEEDING BY THE MAILING OR DELIVERY OF COPIES OF SUCH PROCESS TO IT AT THE NOTICE
ADDRESS FOR IT UNDER THIS AGREEMENT AS DETERMINED IN ACCORDANCE WITH SECTION 6.

 

Section
11.    Waiver of Jury Trial. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section
12.    Severability. Each term or provision of this Agreement shall be considered severable and if for
any reason any provision which is not essential to the effectuation of the basic purposes of this Agreement is determined by a
court of competent jurisdiction to be invalid or unenforceable, such invalidity shall not impair the operation of or affect those
provisions of this Agreement which are valid or enforceable. In that case, this Agreement shall be construed so as to limit any
term or provision so as to make it valid or enforceable within the requirements of any applicable law.

 

[Signature Page
Follows]

 

    7

     

    

 

IN WITNESS WHEREOF,
the parties hereto have entered into this Agreement in each case as of the day and year first above written.

 

 

TERRA SECURED INCOME FUND5, LLC,

a Delaware limited liability company

 

 

	By: 	/s/ Bruce Batkin	 
	Name: Bruce Batkin	 
	Title: Chief Executive Officer	 
	 	 
	 	 
	TERRA PROPERTY TRUST, INC.,	 
	A Maryland corporation	 
	 	 
	 	 
	By: 	/s/ Bruce Batkin	 
	Name: Bruce Batkin	 
	Title: Authorized Signatory	 
	 	 
	 	 
	TERRA REIT ADVISORS, LLC,	 
	A Delaware limited liability company	 
	 	 
	 	 
	By: 	/s/ Bruce Batkin	 
	Name: Bruce Batkin	 
	Title: Authorized Signatory	 

 

    8

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