Document:

First
Amendment to Credit Agreement

 

This
First Amendment to Credit Agreement (herein, this “Amendment”) is entered into as of September 30, 2016, among
Monmouth Real Estate Investment Corporation, a Maryland corporation (the “Borrower”), the Guarantors party
hereto, the Lenders party hereto and Bank of Montreal, as Administrative Agent (the “Administrative Agent”).

 

Preliminary
Statements

 

A.
The Borrower, the guarantors party thereto (the “Guarantors”), the financial institutions party thereto (the
“Lenders”), and the Administrative Agent entered into that certain Credit Agreement dated as of August 27,
2015 (such Credit Agreement, as amended, being referred to herein as the “Credit Agreement”). All capitalized
terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement.

 

B.
The Borrower has requested that, among other matters, (i) the Commitment of the Lenders under the Credit Agreement be increased
from $130,000,000 to $200,000,000, (ii) the Initial Termination Date be extended from August 27, 2019 to September 30, 2020, (iii)
the aggregate amount by which the Commitment may be increased pursuant to Section 1.15 of the Credit Agreement be increased from
$70,000,000 to $100,000,000, and (iv) the Applicable Margin be amended to include additional pricing based upon Borrower’s
Credit Ratings and the Administrative Agent and Lenders are willing to agree to such requests under the terms and conditions set
forth in this Amendment.

 

Now,
Therefore, for good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

Section
1. Amendments.

 

Subject
to the satisfaction of the conditions precedent set forth in Section 2 below, the Credit Agreement shall be and hereby is amended
as follows:

 

1.1.
The Credit Agreement is, effective as of the date of this Amendment, hereby amended to delete the struck text (indicated textually
in the same manner as the following example: struck text) and to add the double-underlined text (indicated textually
in the same manner as the following example: double-underlined text)
as set forth in the pages of the Credit Agreement attached as Annex I hereto, except that any Schedule or Exhibit to the
Credit Agreement not amended pursuant to the terms of this Amendment or otherwise included as part of said Annex I shall
remain in effect without any amendment or other modification thereof.

 

    	 		 

    	 		 

    

 

Section
2. Conditions Precedent.

 

The
effectiveness of this Amendment is subject to the satisfaction of all of the following conditions precedent:

 

2.1.
The Borrower, the Guarantors, the Lenders and the Administrative Agent shall have executed and delivered to the Administrative
Agent this Amendment;

 

2.2
The Administrative Agent shall have received a written opinion of counsel to the Borrower and each Guarantor, in form and substance
reasonably satisfactory to the Administrative Agent;

 

2.3
Borrower shall have paid all fees required by that certain Amended and Restated Fee Letter dated as of August 31, 2016; and

 

2.4
Legal matters incident to the execution and delivery of this Amendment shall be reasonably satisfactory to the Administrative
Agent and its counsel.

 

Section
3. Representations.

 

In
order to induce the Administrative Agent and the Lenders to execute and deliver this Amendment, the Borrower and each Guarantor
hereby represents to the Administrative Agent and the Lenders that (a) after giving effect to this Amendment, the representations
and warranties set forth in Section 6 of the Credit Agreement are and shall be and remain true and correct in all material respects
as of the date hereof (or, if any such representation and warranty is expressly stated to have been made as of a specific date,
as of such specific date) and (b) no Default or Event of Default has occurred and is continuing under the Credit Agreement or
shall result after giving effect to this Amendment.

 

Section
4. Miscellaneous.

 

4.1.
Except as specifically amended herein, the Credit Agreement shall continue in full force and effect in accordance with its original
terms. Reference to this specific Amendment need not be made in the Credit Agreement, the Notes, the other Loan Documents, or
any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made
pursuant to or with respect to the Credit Agreement, any reference in any of such items to the Credit Agreement being sufficient
to refer to the Credit Agreement as amended hereby.

 

4.2.
The Borrower agrees to pay on demand all reasonable costs and out-of-pocket expenses of or incurred by the Administrative Agent
in connection with the negotiation, preparation, execution and delivery of this Amendment, including the reasonable fees and out-of-pocket
expenses of counsel for the Administrative Agent.

 

4.3.
Each Guarantor consents to the amendments and modifications to the Credit Agreement as set forth herein and confirms all of its
obligations under its Guaranty remain in full force and effect. Furthermore, each Guarantor acknowledges and agrees that the consent
of the Guarantors, or any of them, to any further amendments to the Credit Agreement shall not be required as a result of this
consent having been obtained.

 

4.4.
This Amendment may be executed in any number of counterparts, and by the different parties on different counterpart signature
pages, all of which taken together shall constitute one and the same agreement. Any of the parties hereto may execute this Amendment
by signing any such counterpart and each of such counterparts shall for all purposes be deemed to be an original. Delivery of
executed counterparts of this Amendment by Adobe portable document format (a “PDF”) via e-mail or by facsimile shall
be effective as an original. This Amendment shall be governed by the internal laws of the State of New York (including Section
5-1401 and Section 5-1402 of the General Obligations law of the State of New York) without regard to conflicts of law principles
that would require application of the laws of another jurisdiction.

 

[Signature
Pages Follow]

 

    	-2-

    	 

    

 

This
First Amendment to Credit Agreement is entered into as of the date and year first above written.

 

	 	“Borrower”
	 	 
	 	Monmouth
    Real Estate Investment Corporation
	 	 	 
	 	By	                           
	 	Name	 
	 	Title	 
	 	 	 
	 	“Administrative
    Agent and L/C Issuer”
	 	 
	 	Bank
    of Montreal, as L/C Issuer and as Administrative
    Agent
	 	 	 
	 	By	 
	 	Name	 
	 	Title	 

 

    	 		 

    	 		 

    

 

	 	“Lenders”
	 	 
	 	Bank
    of Montreal, as a Lender
	 	 	 
	 	By	                     
	 	Name	 
	 	Title	 

 

    	 		 

    	 		 

    

 

	 	JP
    Morgan Chase Bank, N.A., as a Lender
	 	 	 
	 	By	                  
	 	Name	 
	 	Title	 

 

    	 		 

    	 		 

    

 

	 	Royal
    Bank of Canada, as a Lender
	 	 	 
	 	By	              
	 	Name	 
	 	Title	 

 

    	 		 

    	 		 

    

 

	 	“Guarantors”
    
	 	 
	 	MREIC
    Illinois, LLC, an Illinois limited liability
    company
	 	 	 
	 	By:	Monmouth
    Real Estate Investment Corporation
	 	Its:	Sole
    Member
	 	 	 
	 	By	 
	 	Name	 
	 	Title	 
	 	 	 
	 	Monmouth
    Capital Corporation, a New Jersey corporation
	 	 	 
	 	By	 
	 	Name	 
	 	Title	 
	 	 	 
	 	MREIC
    PA Monaca, LLC, a Pennsylvania limited liability
    company
	 	 	 
	 	By:
    	Monmouth
    Real Estate Investment Corporation
	 	Its:
    	Sole
    Member
	 	 	 
	 	By	 
	 	Name	 
	 	Title	 

 

    	 		 

    	 		 

    

 

	 	MREIC
    O’Fallon MO, LLC, a Missouri limited
    liability company
	 	 	 
	 	By:
    	Monmouth
    Real Estate Investment Corporation
	 	Its:
    	Sole
    Member
	 	 	 
	 	By	 
	 	Name	 
	 	Title	 
	 	 	 
	 	MREIC
    Orangeburg NY, LLC, a New York limited liability
    company
	 	 	 
	 	By:
    	Monmouth
    Real Estate Investment Corporation
	 	Its:
    	Sole
    Member
	 	 	 
	 	By	 
	 	Name	 
	 	Title	 
	 	 	 
	 	MREIC
    Richland MS, LLC, a Mississippi limited liability
    company
	 	 	 
	 	By:
    	Monmouth
    Real Estate Investment Corporation
	 	Its:
    	Sole
    Member
	 	 	 
	 	By	 
	 	Name	 
	 	Title	 

 

    	 		 

    	 		 

    

 

	 	MREIC
    Ridgeland MS, LLC, a Mississippi limited
    liability company
	 	 	 
	 	By:
    	Monmouth
    Real Estate Investment Corporation
	 	Its:
    	Sole
    Member
	 	 	 
	 	By	 
	 	Name	 
	 	Title	 
	 	 	 
	 	MREIC
    Rockford IL, LLC, an Illinois limited liability
    company
	 	 	 
	 	By:
    	Monmouth
    Real Estate Investment Corporation
	 	Its:
    	Sole
    Member
	 	 	 
	 	By	 
	 	Name	 
	 	Title	 
	 	 	 
	 	MREIC
    Urbandale IA, LLC, an Iowa limited liability
    company
	 	 	 
	 	By:
    	Monmouth
    Real Estate Investment Corporation
	 	Its:
    	Sole
    Member
	 	 	 
	 	By	 
	 	Name	 
	 	Title	 

 

    	 		 

    	 		 

    

 

	 	MRC
    I, LLC, a Wisconsin limited liability company
	 	 	 
	 	By:
    	Monmouth
    Real Estate Investment Corporation
	 	Its:
    	Sole
    Member
	 	 	 
	 	By	 
	 	Name	 
	 	Title	 
	 	 	 
	 	MREIC
    Corpus Christi TX, LLC, a Texas limited liability
    company
	 	 	 
	 	By:
    	Monmouth
    Real Estate Investment Corporation
	 	Its:
    	Sole
    Member
	 	 	 
	 	By	 
	 	Name	 
	 	Title	 
	 	 	 
	 	MREIC
    Cincinnati OH, LLC, an Ohio limited liability
    company
	 	 	 
	 	By:
    	Monmouth
    Real Estate Investment Corporation
	 	Its:
    	Sole
    Member
	 	 	 
	 	By	 
	 	Name	 
	 	Title	 

 

    	 		 

    	 		 

    

 

	 	MREIC
    Edinburg TX, LLC, a Texas limited liability
    company
	 	 	 
	 	By:
    	Monmouth
    Real Estate Investment Corporation
	 	Its:
    	Sole
    Member
	 	 	 
	 	By	 
	 	Name	 
	 	Title	 

 

    	 		 

    	 		 

    

 

Annex
I

 

 

Credit
Agreement

 

Dated
as of August 27, 2015

 

among

 

Monmouth
Real Estate Investment Corporation,

as
Borrower

 

the
Guarantors from time to time party hereto,

 

the
Lenders from time to time party hereto,

 

and

 

Bank
of Montreal,

as
Administrative Agent

 

 

BMO
Capital Markets Corp.,

as
Sole Lead Arranger and Sole Book Runner

 

JPMorgan
Chase Bank, N.A. and Royal Bank of Canada,

as
Co-Syndication Agents

 

    	 		 

    	 		 

    

 

Table
of Contents

 

	Section	 	Heading	 	Page
	 	 	 	 	 
	Section
    1.	 	The
    Credit Facility	 	1
	 	 	 	 	 
	Section
    1.1.	 	Commitments	 	1
	Section
    1.2.	 	Reserved	 	1
	Section
    1.3.	 	Letters
    of Credit	 	1
	Section
    1.4.	 	Applicable
    Interest Rates; Investment Grade Credit Rating Interest Rate Election	 	5
	Section
    1.5.	 	Minimum
    Borrowing Amounts; Maximum Eurodollar Loans	 	7
	Section
    1.6.	 	Manner
    of Borrowing Loans and Designating Applicable Interest Rates	 	7
	Section
    1.7.	 	Maturity
    of Loans	 	910
	Section
    1.8.	 	Prepayments	 	910
	Section
    1.9.	 	Default
    Rate	 	1011
	Section
    1.10.	 	Evidence
    of Indebtedness	 	11
	Section
    1.11.	 	Funding
    Indemnity	 	1112
	Section
    1.12.	 	Commitment
    Terminations	 	1213
	Section
    1.13.	 	Substitution
    of Lenders	 	1213
	Section
    1.14.	 	Defaulting
    Lenders	 	13
	Section
    1.15.	 	Increase
    in Commitments	 	1516
	Section
    1.16.	 	Extension
    of Termination Date	 	1617
	 	 	 	 	 
	Section
    2.	 	Fees	 	17
	 	 	 	 	 
	Section
    2.1.	 	Fees	 	17
	 	 	 	 	 
	Section
    3.	 	Place
    and Application of Payments	 	1718
	 	 	 	 	 
	Section
    3.1.	 	Place
    and Application of Payments	 	1718
	Section
    3.2.	 	Account
    Debit	 	1920
	 	 	 	 	 
	Section
    4.	 	Subsidiary
    Guaranties	 	1920
	 	 	 	 	 
	Section
    4.1.	 	Subsidiary
    Guaranties	 	1920
	Section
    4.2.	 	Further
    Assurances	 	1920
	 	 	 	 	 
	Section
    5.	 	Definitions;
    Interpretation	 	1920
	 	 	 	 	 
	Section
    5.1.	 	Definitions	 	1920
	Section
    5.2.	 	Interpretation	 	4144
	Section
    5.3.	 	Change
    in Accounting Principles	 	4245

 

    	 		 

    	 		 

    

 

	Section
    6.	 	Representations
    and Warranties	 	4245
	 	 	 	 	 
	Section
    6.1.	 	Organization
    and Qualification	 	4245
	Section
    6.2.	 	Subsidiaries	 	4345
	Section
    6.3.	 	Authority
    and Validity of Obligations	 	4346
	Section
    6.4.	 	Use
    of Proceeds; Margin Stock	 	4446
	Section
    6.5.	 	Financial
    Reports	 	4447
	Section
    6.6.	 	No
    Material Adverse Change	 	4447
	Section
    6.7.	 	Full
    Disclosure	 	4447
	Section
    6.8.	 	Trademarks,
    Franchises, and Licenses	 	4447
	Section
    6.9.	 	Governmental
    Authority and Licensing	 	4548
	Section
    6.10.	 	Good
    Title	 	4548
	Section
    6.11.	 	Litigation
    and Other Controversies	 	4548
	Section
    6.12.	 	Taxes	 	4548
	Section
    6.13.	 	Approvals	 	4548
	Section
    6.14.	 	Affiliate
    Transactions	 	4648
	Section
    6.15.	 	Investment
    Company	 	4648
	Section
    6.16.	 	ERISA	 	4649
	Section
    6.17.	 	Compliance
    with Laws	 	4649
	Section
    6.18.	 	OFAC	 	4750
	Section
    6.19.	 	Other
    Agreements	 	4750
	Section
    6.20.	 	Solvency	 	4750
	Section
    6.21.	 	No
    Default	 	4750
	Section
    6.22.	 	No
    Broker Fees.	 	4750
	Section
    6.23.	 	Condition
    of Property; Casualties; Condemnation	 	4750
	Section
    6.24.	 	Legal
    Requirements, and Zoning	 	4851
	Section
    6.25.	 	REIT
    Status	 	4851
	Section
    6.26.	 	EEA
    Financial Institution	 	51
	 	 	 	 	 
	Section
    7.	 	Conditions
    Precedent	 	4851
	 	 	 	 	 
	Section
    7.1.	 	All
    Credit Events	 	4851
	Section
    7.2.	 	Initial
    Credit Event	 	4952
	Section
    7.3.	 	Eligible
    Property Additions and Deletions of Borrowing Base Properties	 	5154
	 	 	 	 	 
	Section
    8.	 	Covenants	 	5356
	 	 	 	 	 
	Section
    8.1.	 	Maintenance
    of Existence	 	5356
	Section
    8.2.	 	Maintenance
    of Properties	 	5356
	Section
    8.3.	 	Taxes
    and Assessments	 	5356
	Section
    8.4.	 	Insurance	 	5356
	Section
    8.5.	 	Financial
    Reports	 	5457
	Section
    8.6.	 	Inspection	 	5659
	Section
    8.7.	 	Liens	 	5659
	Section
    8.8.	 	Investments,
    Acquisitions, Loans and Advances	 	5660
	Section
    8.9.	 	Mergers,
    Consolidations and Sales	 	5760
	Section
    8.10.	 	Maintenance
    of Subsidiaries	 	5861
	Section
    8.11.	 	ERISA	 	5861
	Section
    8.12.	 	Compliance
    with Laws	 	5962

 

    	ii

    	 

    

 

	Section
    8.13.	 	Compliance
    with OFAC Sanctions Programs	 	5963
	Section
    8.14.	 	Burdensome
    Contracts With Affiliates	 	6063
	Section
    8.15.	 	No
    Changes in Fiscal Year	 	6063
	Section
    8.16.	 	Formation
    of Subsidiaries	 	6063
	Section
    8.17.	 	Change
    in the Nature of Business	 	6063
	Section
    8.18.	 	Use
    of Proceeds	 	6063
	Section
    8.19.	 	No
    Restrictions	 	6164
	Section
    8.20.	 	Financial
    Covenants	 	6164
	Section
    8.21.	 	Electronic
    Delivery of Certain Information	 	6164
	Section
    8.22.	 	REIT
    Status	 	6265
	Section
    8.23.	 	Restricted
    Payments	 	6265
	Section
    8.24.	 	Depository
    Bank	 	6265
	Section
    8.25.	 	Borrowing
    Base Requirements	 	6265
	 	 	 	 	 
	Section
    9.	 	Events
    of Default and Remedies	 	6366
	 	 	 	 	 
	Section
    9.1.	 	Events
    of Default	 	6366
	Section
    9.2.	 	Non-Bankruptcy
    Defaults	 	6568
	Section
    9.3.	 	Bankruptcy
    Defaults	 	6568
	Section
    9.4.	 	Collateral
    for Undrawn Letters of Credit	 	6669
	 	 	 	 	 
	Section
    10.	 	Change
    in Circumstances	 	6770
	 	 	 	 	 
	Section
    10.1.	 	Change
    of Law	 	6770
	Section
    10.2.	 	Unavailability
    of Deposits or Inability to Ascertain, or Inadequacy of, LIBOR	 	6871
	Section
    10.3.	 	Increased
    Cost and Reduced Return	 	6871
	Section
    10.4.	 	Lending
    Offices	 	6972
	Section
    10.5.	 	Discretion
    of Lender as to Manner of Funding	 	7073
	 	 	 	 	 
	Section
    11.	 	The
    Administrative Agent	 	7073
	 	 	 	 	 
	Section
    11.1.	 	Appointment
    and Authorization of Administrative Agent	 	7073
	Section
    11.2.	 	Administrative
    Agent and its Affiliates	 	7073
	Section
    11.3.	 	Action
    by Administrative Agent	 	7073
	Section
    11.4.	 	Consultation
    with Experts	 	7174
	Section
    11.5.	 	Liability
    of Administrative Agent; Credit Decision	 	7174
	Section
    11.6.	 	Indemnity	 	7275
	Section
    11.7.	 	Resignation
    and Removal of Administrative Agent and Successor Administrative Agent	 	7275
	Section
    11.8.	 	L/C
    Issuer	 	7375
	Section
    11.9.	 	Hedging
    Liability and Bank Product Obligations	 	7375
	Section
    11.10.	 	Designation
    of Additional Agents	 	7375
	 	 	 	 	 
	Section
    12.	 	Miscellaneous	 	7477
	 	 	 	 	 
	Section
    12.1.	 	Taxes	 	7477
	Section
    12.2.	 	Other
    Taxes	 	7780

 

    	iii

    	 

    

 

	Section
    12.3.	 	No
    Waiver, Cumulative Remedies	 	7881
	Section
    12.4.	 	Non-Business
    Days	 	7881
	Section
    12.5.	 	Survival
    of Representations	 	7881
	Section
    12.6.	 	Survival
    of Indemnities	 	7881
	Section
    12.7.	 	Sharing
    of Set-Off	 	7881
	Section
    12.8.	 	Notices	 	7982
	Section
    12.9.	 	Counterparts;
    Integration; Effectiveness.	 	7982
	Section
    12.10.	 	Successors
    and Assigns	 	8083
	Section
    12.11.	 	Participants	 	8083
	Section
    12.12.	 	Assignments	 	8184
	Section
    12.13.	 	Amendments	 	8386
	Section
    12.14.	 	Headings	 	8487
	Section
    12.15.	 	Costs
    and Expenses; Indemnification	 	8487
	Section
    12.16.	 	Set-off	 	8689
	Section
    12.17.	 	Entire
    Agreement	 	8689
	Section
    12.18.	 	Waiver
    of Jury Trial	 	8689
	Section
    12.19.	 	Severability
    of Provisions	 	8790
	Section
    12.20.	 	Excess
    Interest	 	8790
	Section
    12.21.	 	Construction	 	8790
	Section
    12.22.	 	Lender’s
    and L/C Issuer’s Obligations Several	 	8891
	Section
    12.23.	 	Governing
    Law; Jurisdiction; Consent to Service of Process	 	8891
	Section
    12.24.	 	USA
    Patriot Act	 	8891
	Section
    12.25.	 	Confidentiality	 	8992
	Section
    12.26.		Acknowledgement
    and Consent to Bail-In of EEA Financial Institutions		92
	 	 	 	 	 
	Section
    13.	 	The
    Guarantees	 	8993
	 	 	 	 	 
	Section
    13.1.	 	The
    Guarantees	 	8993
	Section
    13.2.	 	Guarantee
    Unconditional	 	9094
	Section
    13.3.	 	Discharge
    Only upon Payment in Full; Reinstatement in Certain Circumstances	 	9195
	Section
    13.4.	 	Subrogation	 	9195
	Section
    13.5.	 	Waivers	 	9295
	Section
    13.6.	 	Limit
    on Recovery	 	9295
	Section
    13.7.	 	Stay
    of Acceleration	 	9295
	Section
    13.8.	 	Benefit
    to Guarantors	 	9296
	Section
    13.9.	 	Guarantor
    Covenants	 	9296
	Section
    13.10.	 	Subordination	 	9296
	Section
    13.11.	 	Keepwell	 	9296
	 	 	 	 	 
	Signature
    Page	 	 	 	1

 

    	iv

    	 

    

 

	Exhibit
    A	—	Notice
    of Payment Request
	Exhibit
    B	—	Notice
    of Borrowing
	Exhibit
    C	—	Notice
    of Continuation/Conversion
	Exhibit
    D	—	Note
	Exhibit
    E	—	Compliance
    Certificate
	Exhibit
    F	—	Assignment
    and Acceptance
	Exhibit
    G	—	Additional
    Guarantor Supplement
	Exhibit
    H	—	Commitment
    Amount Increase Request
	Exhibit
    I	—	Available
    Amount Certificate
	Exhibit
    J-1 	—	Form
    of U.S. Tax Compliance Certificate
	Exhibit
    J-2	—	Form
    of U.S. Tax Compliance Certificate
	Exhibit
    J-3	—	Form
    of U.S. Tax Compliance Certificate
	Exhibit
    J-4	—	Form
    of U.S. Tax Compliance Certificate
	 	 	 
	Schedule
    1	—	Commitments
	Schedule
    1.1	—	Initial
    Borrowing Base Pool Properties
	Schedule
    6.2	—	Subsidiaries
	Schedule
    6.11	—	Litigation
	Schedule
    8.7	—	Liens
	Schedule
    8.8	—	Investments

 

    	v

    	 

    

 

Credit
Agreement

 

This
Credit Agreement (this “Agreement”) is entered into as of August 27, 2015 by and among Monmouth
Real Estate Investment Corporation, a Maryland corporation (the “Borrower”), the Guarantors from time
to time party to this Agreement, the several financial institutions from time to time party to this Agreement, as Lenders, and
Bank of Montreal, as Administrative Agent as provided herein. All capitalized terms
used herein without definition shall have the same meanings herein as such terms are defined in Section 5.1 hereof.

 

P r e l i m i n a r y
S t a t e m e n t

 

WHEREAS,
the Borrower has requested that the Lenders, and the Lenders have agreed to on the basis of the terms and conditions of this Agreement,
establish an unsecured revolving line of credit facility pursuant to which the Lenders shall, subject to the satisfaction of the
terms and conditions set forth in this Agreement, make loans and advances (including the issuance of letters of credit) to the
Borrower up to an aggregate principal amount at any time outstanding of $130,000,000.00,200,000,000.00,
which amount may be increased pursuant to the terms of Section 1.15 hereof.

 

Now,
Therefore, in consideration of the mutual agreements
contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows:

 

Section
1. The Credit Facility.

 

Section
1.1. Commitments. Subject to the terms and conditions hereof, each Lender, by its acceptance hereof, severally agrees to make
a loan or loans (individually a “Loan” and collectively for all the Lenders the “Loans”)
in U.S. Dollars to the Borrower from time to time on a revolving basis up to the amount of such Lender’s Commitment, subject
to any reductions thereof pursuant to the terms hereof, before the Termination Date. The sum of the aggregate principal amount
of Loans and L/C Obligations at any time outstanding shall not exceed the lesser of (i) the Commitments of all Lenders in effect
at such time and (ii) the Available Amount as then determined and computed. Each Borrowing of Loans shall be made ratably by the
Lenders in proportion to their respective Percentages. As provided in Section 1.6(a) hereof, the Borrower may elect that each
Borrowing of Loans be either Base Rate Loans or Eurodollar Loans. Loans may be repaid and the principal amount thereof reborrowed
before the Termination Date, subject to the terms and conditions hereof.

 

Section
1.2. Reserved.

 

Section
1.3. Letters of Credit.

 

(a)
General Terms. Subject to the terms and conditions hereof, as part of the Credit, the L/C Issuer shall issue standby and
commercial letters of credit (each a “Letter of Credit”) for the account of the Borrower or any one or more
of its Subsidiaries in an aggregate undrawn face amount up to the L/C Sublimit. Each Letter of Credit shall be issued by the L/C
Issuer, but each Lender shall be obligated to reimburse the L/C Issuer for such Lender’s Percentage of the amount of each
drawing thereunder and, accordingly, each Letter of Credit shall constitute usage of the Commitment of each Lender pro rata in
an amount equal to its Percentage of the L/C Obligations then outstanding.

 

(b)
Applications. At any time before the Termination Date, the L/C Issuer shall, at the request of the Borrower, issue one
or more Letters of Credit in U.S. Dollars, in a form satisfactory to the L/C Issuer, with expiration dates no later than the earlier
of 12 months from the date of issuance (or which are cancelable not later than 12 months from the date of issuance) or thirty
(30) days prior to the Termination Date, in an aggregate face amount up to the L/C Sublimit, upon the receipt of an application
duly executed by the Borrower for the relevant Letter of Credit in the form then customarily prescribed by the L/C Issuer for
the Letter of Credit requested (each an “Application”). Notwithstanding anything contained in any Application
to the contrary: (i) the Borrower shall pay fees in connection with each Letter of Credit as set forth in Section 2.1 hereof,
(ii) except as otherwise provided in Section 1.8 or Section 1.14 hereof, unless an Event of Default is then continuing, the L/C
Issuer will not call for the funding by the Borrower of any amount under a Letter of Credit before being presented with a drawing
thereunder, and (iii) if the L/C Issuer is not timely reimbursed for the amount of any drawing under a Letter of Credit on the
date such drawing is paid, except as otherwise provided for in Section 1.6 hereof, the Borrower’s obligation to reimburse
the L/C Issuer for the amount of such drawing shall bear interest (which the Borrower hereby promises to pay) from and after the
date such drawing is paid at a rate per annum equal to the sum of the Applicable Margin plus the Base Rate from time to
time in effect (computed on the basis of a year of 365 or 366 days, as the case may be, and the actual number of days elapsed).
If the L/C Issuer issues any Letter of Credit with an expiration date that is automatically extended unless the L/C Issuer gives
notice that the expiration date will not so extend beyond its then scheduled expiration date, unless the Administrative Agent
or the Required Lenders instruct the L/C Issuer otherwise, the L/C Issuer will give such notice of non-renewal before the time
necessary to prevent such automatic extension if before such required notice date: (i) the expiration date of such Letter of Credit
if so extended would be after the Termination Date, (ii) the Commitments have been terminated, or (iii) a Default or an Event
of Default is then continuing and either the Administrative Agent or the Required Lenders (with notice to the Administrative Agent)
have given the L/C Issuer instructions not to so permit the extension of the expiration date of such Letter of Credit. The L/C
Issuer agrees to issue amendments to the Letter(s) of Credit increasing the amount, or extending the expiration date, thereof
at the request of the Borrower subject to the conditions of Section 7 hereof and the other terms of this Section 1.3.

 

    	-2-

    	 

    

 

(c)
The Reimbursement Obligations. Subject to Section 1.3(b) hereof, the obligation of the Borrower to reimburse the L/C Issuer
for all drawings under a Letter of Credit (a “Reimbursement Obligation”) shall be governed by the Application
related to such Letter of Credit, except that reimbursement shall be made by no later than 12:00 noon (Chicago time) on the date
when each drawing is to be paid if the Borrower has been informed of such drawing by the L/C Issuer on or before 11:00 a.m. (Chicago
time) on the date when such drawing is to be paid or, if notice of such drawing is given to the Borrower after 11:00 a.m. (Chicago
time) on the date when such drawing is to be paid, by no later than 12:00 noon (Chicago time) on the following Business Day, in
immediately available funds at the Administrative Agent’s principal office in Chicago, Illinois or such other office as
the Administrative Agent may designate in writing to the Borrower (who shall thereafter cause to be distributed to the L/C Issuer
such amount(s) in like funds). If the Borrower does not make any such reimbursement payment on the date due and the Participating
Lenders fund their participations therein in the manner set forth in Section 1.3(e) below, then all payments thereafter received
by the Administrative Agent in discharge of any of the relevant Reimbursement Obligations shall be distributed in accordance with
Section 1.3(e) below.

 

(d)
Obligations Absolute. The Borrower’s obligation to reimburse L/C Obligations as provided in subsection (c) of this
Section shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this
Agreement and the relevant Application under any and all circumstances whatsoever and irrespective of (i) any lack of validity
or enforceability of any Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other document
presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue
or inaccurate in any respect, (iii) payment by the L/C Issuer under a Letter of Credit against presentation of a draft or other
document that does not strictly comply with the terms of such Letter of Credit, or (iv) any other event or circumstance whatsoever,
whether or not similar to any of the foregoing, that might, but for the provisions of this Section 1.3, constitute a legal or
equitable discharge of, or provide a right of setoff against, the Borrower’s obligations hereunder. None of the Administrative
Agent, the Lenders, or the L/C Issuer shall have any liability or responsibility by reason of or in connection with the issuance
or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances
referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any
draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing
thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the L/C
Issuer; provided that the foregoing shall not be construed to excuse the L/C Issuer from liability to the Borrower to the
extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Borrower
to the extent permitted by applicable Legal Requirements) suffered by the Borrower that are caused by the L/C Issuer’s failure
to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms
thereof. The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the
L/C Issuer (as determined by a court of competent jurisdiction by final and nonappealable judgment), the L/C Issuer shall be deemed
to have exercised care in each such determination. In furtherance of the foregoing and without limiting the generality thereof,
the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the
terms of a Letter of Credit, the L/C Issuer may, in its sole discretion, either accept and make payment upon such documents without
responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make
payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

 

    	-3-

    	 

    

 

(e)
The Participating Interests. Each Lender (other than the Lender acting as L/C Issuer in issuing the relevant Letter of
Credit), by its acceptance hereof, severally agrees to purchase from the L/C Issuer, and the L/C Issuer hereby agrees to sell
to each such Lender (a “Participating Lender”), an undivided percentage participating interest (a “Participating
Interest”), to the extent of its Percentage, in each Letter of Credit issued by, and each Reimbursement Obligation owed
to, the L/C Issuer. Upon any failure by the Borrower to pay any Reimbursement Obligation at the time required on the date the
related drawing is to be paid, as set forth in Section 1.3(c) above, or if the L/C Issuer is required at any time to return to
the Borrower or to a trustee, receiver, liquidator, custodian or other Person any portion of any payment of any Reimbursement
Obligation, each Participating Lender shall, not later than the Business Day it receives a certificate in the form of Exhibit
A hereto from the L/C Issuer (with a copy to the Administrative Agent) to such effect, if such certificate is received before
1:00 p.m. (Chicago time), or not later than 1:00 p.m. (Chicago time) the following Business Day, if such certificate is received
after such time, pay to the Administrative Agent for the account of the L/C Issuer an amount equal to such Participating Lender’s
Percentage of such unpaid or recaptured Reimbursement Obligation together with interest on such amount accrued from the date the
related payment was made by the L/C Issuer to the date of such payment by such Participating Lender at a rate per annum equal
to: (i) from the date the related payment was made by the L/C Issuer to the date two (2) Business Days after payment by such Participating
Lender is due hereunder, the Federal Funds Rate for each such day and (ii) from the date two (2) Business Days after the date
such payment is due from such Participating Lender to the date such payment is made by such Participating Lender, the Base Rate
in effect for each such day. Each such Participating Lender shall thereafter be entitled to receive its Percentage of each payment
received in respect of the relevant Reimbursement Obligation and of interest paid thereon, with the L/C Issuer retaining its Percentage
thereof as a Lender hereunder. The several obligations of the Participating Lenders to the L/C Issuer under this Section 1.3 shall
be absolute, irrevocable, and unconditional under any and all circumstances whatsoever and shall not be subject to any set-off,
counterclaim or defense to payment which any Participating Lender may have or have had against the Borrower, the L/C Issuer, the
Administrative Agent, any Lender or any other Person whatsoever. Without limiting the generality of the foregoing, such obligations
shall not be affected by any Default or Event of Default or by any reduction or termination of any Commitment of any Lender, and
each payment by a Participating Lender under this Section 1.3 shall be made without any offset, abatement, withholding or reduction
whatsoever.

 

(f)
Indemnification. The Participating Lenders shall, to the extent of their respective Percentages, indemnify the L/C Issuer
(to the extent not reimbursed by the Borrower) against any cost, expense (including reasonable counsel fees and disbursements),
claim, demand, action, loss or liability (except such as result from such L/C Issuer’s gross negligence or willful misconduct
as determined by a court of competent jurisdiction by final and nonappealable judgment) that the L/C Issuer may suffer or incur
in connection with any Letter of Credit issued by it. The obligations of the Participating Lenders under this Section 1.3(f) and
all other parts of this Section 1.3 shall survive termination of this Agreement and of all Applications, Letters of Credit, and
all drafts and other documents presented in connection with drawings thereunder.

 

    	-4-

    	 

    

 

(g)
Manner of Requesting a Letter of Credit. The Borrower shall provide at least five (5) Business Days’ advance written
notice to the Administrative Agent of each request for the issuance of a Letter of Credit, such notice in each case to be accompanied
by an Application for such Letter of Credit properly completed and executed by the Borrower and, in the case of an extension or
amendment or an increase in the amount of a Letter of Credit, a written request therefor, in a form acceptable to the Administrative
Agent and the L/C Issuer, in each case, together with the fees called for by this Agreement. The Administrative Agent shall promptly
notify the L/C Issuer of the Administrative Agent’s receipt of each such notice (and the L/C Issuer shall be entitled to
assume that the conditions precedent to any such issuance, extension, amendment or increase have been satisfied unless notified
to the contrary by the Administrative Agent or the Required Lenders) and the L/C Issuer shall promptly notify the Administrative
Agent and the Lenders of the issuance of the Letter of Credit so requested.

 

(h)
Replacement of the L/C Issuer. The L/C Issuer may be replaced at any time by written agreement among the Borrower, the
Administrative Agent, the replaced L/C Issuer and the successor L/C Issuer. The Administrative Agent shall notify the Lenders
of any such replacement of the L/C Issuer. At the time any such replacement shall become effective, the Borrower shall pay all
unpaid fees accrued for the account of the replaced L/C Issuer. From and after the effective date of any such replacement (i)
the successor L/C Issuer shall have all the rights and obligations of the L/C Issuer under this Agreement with respect to Letters
of Credit to be issued thereafter and (ii) references herein to the term “L/C Issuer” shall be deemed to refer to
such successor or to any previous L/C Issuer, or to such successor and all previous L/C Issuers, as the context shall require.
After the replacement of a L/C Issuer hereunder, the replaced L/C Issuer shall remain a party hereto and shall continue to have
all the rights and obligations of a L/C Issuer under this Agreement with respect to Letters of Credit issued by it prior to such
replacement, but shall not be required to issue additional Letters of Credit.

 

Section
1.4. Applicable Interest Rates; Investment Grade Credit Rating Interest Rate Election

 

(a)
Base Rate Loans. Each Base Rate Loan made or maintained by a Lender shall bear interest (computed on the basis of a year
of 365 or 366 days, as the case may be, and the actual days elapsed) on the unpaid principal amount thereof from the date such
Loan is advanced, or created by conversion from a Eurodollar Loan, until maturity (whether by acceleration or otherwise) at a
rate per annum equal to the sum of the Applicable Margin plus the Base Rate from time to time in effect, payable by the
Borrower on each Interest Payment Date and at maturity (whether by acceleration or otherwise).

 

“Base
Rate” means, for any day, the rate per annum equal to the greatest of: (a) the rate of interest announced or otherwise
established by the Administrative Agent from time to time as its prime commercial rate, or its equivalent, for U.S. Dollar loans
to borrowers located in the United States as in effect on such day, with any change in the Base Rate resulting from a change in
said prime commercial rate to be effective as of the date of the relevant change in said prime commercial rate (it being acknowledged
and agreed that such rate may not be the Administrative Agent’s best or lowest rate), (b) the sum of (i) the rate determined
by the Administrative Agent to be the average (rounded upward, if necessary, to the next higher 1/100 of 1%) of the rates per
annum quoted to the Administrative Agent at approximately 10:00 a.m. (Chicago time) (or as soon thereafter as is practicable)
on such day (or, if such day is not a Business Day, on the immediately preceding Business Day) by two or more Federal funds brokers
selected by the Administrative Agent for sale to the Administrative Agent at face value of Federal funds in the secondary market
in an amount equal or comparable to the principal amount for which such rate is being determined (provided
that if any such quoted rate is less than zero, such quoted rate shall be deemed to be 0.00%), plus (ii) 1/2
of 1%, and (c) the LIBOR Quoted Rate for such day plus 1.00%. As used herein, the term “LIBOR Quoted Rate”
means, for any day, the rate per annum equal to the quotient of (i) the rate per annum (rounded upwards, if necessary, to
the next higher one hundred-thousandth of a percentage point) for deposits in U.S. Dollars for a one-month interest period which
appears on the LIBOR01 Pageapplicable Bloomberg
screen page (or on any successor or substitute page of such service, or any successor to or substitute for such service, providing
rate quotations comparable to those currently provided on such page of such service, as reasonably determined by the Administrative
Agent from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank
market) as of 11:00 a.m. (London, England time) on such day (or, if such day is not a Business Day, on the immediately
preceding Business Day) divided by (ii) one (1) minus the Eurodollar Reserve Percentage.

 

    	-5-

    	 

    

 

(b)
Eurodollar Loans. Each Eurodollar Loan made or maintained by a Lender shall bear interest during each Interest Period it
is outstanding (computed on the basis of a year of 360 days and actual days elapsed) on the unpaid principal amount thereof from
the date such Loan is advanced or continued, or created by conversion from a Base Rate Loan, until maturity (whether by acceleration
or otherwise) at a rate per annum equal to the sum of the Applicable Margin plus the Adjusted LIBOR applicable for such
Interest Period, payable by the Borrower on each Interest Payment Date and at maturity (whether by acceleration or otherwise).

 

“Adjusted
LIBOR” means, for any Borrowing of Eurodollar Loans, a rate per annum determined in accordance with the following formula:

 

	 	Adjusted
    LIBOR	=	LIBOR
    	 
	 	 	 	1
    - Eurodollar Reserve Percentage	 

 

“Eurodollar
Reserve Percentage” means the maximum reserve percentage, expressed as a decimal, at which reserves (including, without
limitation, any emergency, marginal, special, and supplemental reserves) are imposed by the Board of Governors of the Federal
Reserve System (or any successor) on “eurocurrency liabilities”, as defined in such Board’s Regulation
D (or any successor thereto), subject to any amendments of such reserve requirement by such Board or its successor, taking into
account any transitional adjustments thereto. For purposes of this definition, the relevant Loans shall be deemed to be “eurocurrency
liabilities” as defined in Regulation D without benefit or credit for any prorations, exemptions or offsets under Regulation
D. The Eurodollar Reserve Percentage shall be adjusted automatically on and as of the effective date of any change in any such
reserve percentage.

 

“LIBOR”
means, for an Interest Period for a Borrowing of Eurodollar Loans, (a) the LIBOR Index Rate for such Interest Period, if such
rate is available, and (b) if the LIBOR Index Rate cannot be determined, the arithmetic average of the rates of interest per annum
(rounded upwards, if necessary, to the nearest 1/100 of 1%) at which deposits in U.S. Dollars in immediately available funds are
offered to the Administrative Agent at 11:00 a.m. (London, England time) two (2) Business Days before the beginning of such Interest
Period by three (3) or more major banks in the interbank eurodollar market selected by the Administrative Agent for delivery on
the first day of and for a period equal to such Interest Period and in an amount equal or comparable to the principal amount of
the Eurodollar Loan scheduled to be made as part of such Borrowing, provided that in no event shall “LIBOR”
be less than 0.00%.

 

    	-6-

    	 

    

 

“LIBOR
Index Rate” means, for any Interest Period, the rate per annum (rounded upwards, if necessary, to the next higher one
hundred-thousandth of a percentage point) for deposits in U.S. Dollars for a period equal to such Interest Period, which appears
on the LIBOR01 Pageapplicable Bloomberg screen page
(or on any successor or substitute page of such service, or any successor to or substitute for such service, providing rate quotations
comparable to those currently provided on such page of such service, as reasonably determined by the Administrative Agent from
time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market)
as of 11:00 a.m. (London, England time) on the day two (2) Business Days before the commencement of such Interest Period.

 

“LIBOR01
Page” means the display designated as “LIBOR01 Page” on the Reuters Service (or
on any succe ssor or substitute page of such service, or any successor to or substitute for such service, providing rate quotations
comparable to those currently provided on such page of such service, as reasonably determined by the Administrative Agent from
time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market).

 

(c)
Rate Determinations. The Administrative Agent shall determine each interest rate applicable to the Loans and the Reimbursement
Obligations hereunder following Borrower’s selection (or deemed selection) in accordance with Section 1.6 and/or as otherwise
contemplated pursuant to Section 1.9, and its good faith determination thereof shall be conclusive and binding except in the case
of manifest error.

 

(d)
Investment Grade Credit Rating Interest Rate Election. At any time after the Borrower receives an Investment Grade Credit
Rating from two Rating Agencies, the Borrower may, so long as no Default then exists and is continuing, irrevocably elect (an
“Interest Rate Election”) by written notice to the Administrative Agent, accompanied by reasonable evidence
of the Borrower’s Credit Ratings from two Rating Agencies, that the interest rate and fee margins set forth in clause (c)
of the definition of “Applicable Margin” herein shall at all times thereafter be applicable to all credit extensions
under this Agreement. The Administrative Agent shall provide the Lenders and the L/C Issuer with prompt notice of its receipt
of any Interest Rate Election. On the day after the date of the Administrative Agent’s receipt of any Interest Rate Election
(the date of the Administrative Agent’s receipt of such election is the “Interest Rate Election Date”),
the margins set forth in clauses (a) and (b) of the definition of “Applicable Margin” herein shall no longer
apply and the commitment fee under Section 2.1(a) shall no longer continue to accrue.

 

Section
1.5. Minimum Borrowing Amounts; Maximum Eurodollar Loans. Each Borrowing of Base Rate Loans shall be in an amount not less
than $100,000. Each Borrowing of Eurodollar Loans advanced, continued or converted to a Eurodollar Loan shall be in an amount
equal to $1,000,000 or such greater amount which is an integral multiple of $500,000. Without the Administrative Agent’s
consent, there shall not be more than five (5) Borrowings of Eurodollar Loans outstanding hereunder.

 

    	-7-

    	 

    

 

Section
1.6. Manner of Borrowing Loans and Designating Applicable Interest Rates.

 

(a)
Notice to the Administrative Agent. The Borrower shall give notice to the Administrative Agent by no later than 2:00 p.m.
(Chicago time): (i) at least three (3) Business Days before the date on which the Borrower requests the Lenders to advance a Borrowing
of Eurodollar Loans and (ii) one Business Day before the date the Borrower requests the Lenders to advance a Borrowing of Base
Rate Loans. The Loans included in each Borrowing shall bear interest initially at the type of rate specified in such notice of
a new Borrowing. Thereafter, subject to the terms and conditions hereof, the Borrower may from time to time elect to change or
continue the type of interest rate borne by each Borrowing or, subject to the minimum amount requirement for each outstanding
Borrowing set forth in Section 1.5 hereof, a portion thereof, as follows: (i) if such Borrowing is of Eurodollar Loans, on the
last day of the Interest Period applicable thereto, the Borrower may continue part or all of such Borrowing as Eurodollar Loans
or convert part or all of such Borrowing into Base Rate Loans or (ii) if such Borrowing is of Base Rate Loans, on any Business
Day, the Borrower may convert all or part of such Borrowing into Eurodollar Loans for an Interest Period or Interest Periods specified
by the Borrower. The Borrower shall give all such notices requesting the advance, continuation or conversion of a Borrowing to
the Administrative Agent by telephone, telecopy or facsimile, or other telecommunication device acceptable to the Administrative
Agent (including via pdf attachment to an email) which notice shall be irrevocable once given and, if by telephone, shall be promptly
confirmed in writing in a manner acceptable to the Administrative Agent, substantially in the form attached hereto as Exhibit
B (Notice of Borrowing) or Exhibit C (Notice of Continuation/Conversion), as applicable, or in such other form acceptable to the
Administrative Agent. Notice of the continuation of a Borrowing of Eurodollar Loans for an additional Interest Period or of the
conversion of part or all of a Borrowing of Base Rate Loans into Eurodollar Loans must be given by no later than 10:00 a.m. (Chicago
time) at least three (3) Business Days before the date of the requested continuation or conversion. All such notices concerning
the advance, continuation or conversion of a Borrowing shall specify the date of the requested advance, continuation or conversion
of a Borrowing (which shall be a Business Day), the amount of the requested Borrowing to be advanced, continued or converted,
the type of Loans to comprise such new, continued or converted Borrowing and, if such Borrowing is to be comprised of Eurodollar
Loans, the Interest Period applicable thereto. No Borrowing of Eurodollar Loans shall be advanced, continued, or created by conversion
if any Default or Event of Default is then continuing. The Borrower agrees that the Administrative Agent may rely on any such
telephonic, telecopy or other telecommunication notice given by any person the Administrative Agent in good faith believes is
an Authorized Representative without the necessity of independent investigation, and in the event any such notice by telephone
conflicts with any written confirmation such telephonic notice shall govern if the Administrative Agent has acted in reliance
thereon.

 

(b)
Notice to the Lenders. The Administrative Agent shall give prompt telecopy or other telecommunication notice to each Lender
of any notice from the Borrower received pursuant to Section 1.6(a) above and, if such notice requests the Lenders to make Eurodollar
Loans, the Administrative Agent shall give notice to the Borrower and each Lender by like means of the interest rate applicable
thereto promptly after the Administrative Agent has made such determination.

 

    	-8-

    	 

    

 

(c)
Borrower’s Failure to Notify. If the Borrower fails to give notice pursuant to Section 1.6(a) above of the continuation
or conversion of any outstanding principal amount of a Borrowing of Eurodollar Loans before the last day of its then current Interest
Period within the period required by Section 1.6(a) and such Borrowing is not prepaid in accordance with Section 1.8(a), such
Borrowing shall automatically be converted into a Borrowing of Base Rate Loans. In the event the Borrower fails to give notice
pursuant to Section 1.6(a) above of a Borrowing equal to the amount of a Reimbursement Obligation and has not notified the Administrative
Agent by 12:00 noon (Chicago time) on the day such Reimbursement Obligation becomes due that it intends to repay such Reimbursement
Obligation through funds not borrowed under this Agreement, the Borrower shall be deemed to have requested a Borrowing of Base
Rate Loans under the Credit on such day in the amount of the Reimbursement Obligation then due, which Borrowing shall be applied
to pay the Reimbursement Obligation then due.

 

(d)
Disbursement of Loans. Not later than 1:00 p.m. (Chicago time) on the date of any requested advance of a new Borrowing,
subject to Section 7 hereof, each Lender shall make available its Loan comprising part of such Borrowing in funds immediately
available at the principal office of the Administrative Agent in Chicago, Illinois (or at such other location as the Administrative
Agent shall designate). The Administrative Agent shall make the proceeds of each new Borrowing available to the Borrower at the Administrative Agent’s principal office in Chicago, Illinois (or at such other location as the
Administrative Agent shall designate), by depositing or wire transferring such proceeds to the credit of the Borrower’s Designated
Disbursement Account or as the Borrower and the Administrative Agent may otherwise agree.

 

(e)
Administrative Agent Reliance on Lender Funding. Unless the Administrative Agent shall have been notified by a Lender prior
to (or, in the case of a Borrowing of Base Rate Loans, by 1:00 p.m. (Chicago time) on) the date on which such Lender is scheduled
to make payment to the Administrative Agent of the proceeds of a Loan (which notice shall be effective upon receipt) that such
Lender does not intend to make such payment, the Administrative Agent may assume that such Lender has made such payment when due
and the Administrative Agent may in reliance upon such assumption (but shall not be required to) make available to the Borrower
the proceeds of the Loan to be made by such Lender and, if any Lender has not in fact made such payment to the Administrative
Agent, such Lender shall, on demand, pay to the Administrative Agent the amount made available to the Borrower attributable to
such Lender together with interest thereon in respect of each day during the period commencing on the date such amount was made
available to the Borrower and ending on (but excluding) the date such Lender pays such amount to the Administrative Agent at a
rate per annum equal to: (i) from the date the related advance was made by the Administrative Agent to the date two (2) Business
Days after payment by such Lender is due hereunder, the Federal Funds Rate for each such day and (ii) from the date two (2) Business
Days after the date such payment is due from such Lender to the date such payment is made by such Lender, the Base Rate in effect
for each such day. If such amount is not received from such Lender by the Administrative Agent immediately upon demand, the Borrower
will, promptly on demand, repay to the Administrative Agent the proceeds of the Loan attributable to such Lender with interest
thereon at a rate per annum equal to the interest rate applicable to the relevant Loan, but without such payment being considered
a payment or prepayment of a Loan under Section 1.11 hereof so that the Borrower will have no liability under such Section with
respect to such payment.

 

    	-9-

    	 

    

 

Section
1.7. Maturity of Loans. Each Loan, including both the outstanding principal balance thereof and any accrued but unpaid interest
thereon, shall mature and be due and payable by the Borrower on the Termination Date.

 

Section
1.8. Prepayments. 

 

(a)
Optional. The Borrower may prepay in whole or in part (but, if in part, in each case, in an amount such that the minimum
amount required for a Borrowing pursuant to Section 1.2 and 1.5 hereof remains outstanding) any Borrowing (i) in the case of a
Borrowing of Eurodollar Loans, at any time upon three (3) Business Days prior written notice by the Borrower to the Administrative
Agent or (ii) in the case of a Borrowing of Base Rate Loans, upon written notice delivered by the Borrower to the Administrative
Agent no later than 12:00 p.m. (Chicago time) on the date of prepayment (or, in any case, such shorter period of time then agreed
to by the Administrative Agent), such prepayment to be made by the payment of the principal amount to be prepaid and, in the case
of any Eurodollar Loans accrued interest thereon to the date fixed for prepayment plus any amounts due the Lenders under
Section 1.11 hereof.

 

(b)
Mandatory.

 

(i)
If at any time the sum of the unpaid principal balance of the Loans and the L/C Obligations then outstanding shall be in excess
of the Threshold Available Amount as determined and computed in the most recent Available Amount Certificate delivered in accordance
with Section 8.5(d) or Section 8.5(m) hereof, the Borrower shall within five (5) calendar days, and without notice or demand,
pay the amount in excess of the Threshold Available Amount to the Administrative Agent for the account of the Lenders as a mandatory
prepayment on such Obligations.

 

(ii)
If at any time the sum of the unpaid principal balance of the Loans and the L/C Obligations then outstanding shall be in excess
of the Available Amount (but not the Threshold Available Amount) as determined and computed in the most recent Available Amount
Certificate delivered in accordance with Section 8.5(d) or Section 8.5(m) hereof, the Borrower shall, within thirty (30) calendar
days, and without notice or demand, pay the amount of the excess to the Administrative Agent for the account of the Lenders as
a mandatory prepayment on such Obligations.

 

(iii)
All prepayments under this Section 1.8(b) shall first be applied to the Loans until paid in full, with any remaining balance to
be held by the Administrative Agent in the Collateral Account as security for the Obligations owing with respect to the Letters
of Credit. Unless the Borrower otherwise directs, prepayments of Loans under this Section 1.8(b) shall be applied first to Borrowings
of Base Rate Loans until payment in full thereof with any balance applied to Borrowings of Eurodollar Loans in the order in which
their Interest Periods expire. Each prepayment of Loans under this Section 1.8(b) shall be made by the payment of the principal
amount to be prepaid and, in the case of any Eurodollar Loans accrued interest thereon to the date of prepayment together with
any amounts due the Lenders under Section 1.11 hereof. Each prefunding of L/C Obligations shall be made in accordance with Section
9.4 hereof.

 

    	-10-

    	 

    

 

(c)
Borrowings. Any amount of Loans paid or prepaid before the Termination Date may, subject to the terms and conditions of
this Agreement, be borrowed, repaid and borrowed again.

 

Section
1.9. Default Rate. Notwithstanding anything to the contrary contained herein, while any Event of Default is continuing or
after acceleration, the Borrower shall pay interest (after as well as before entry of judgment thereon to the extent permitted
by law) on the principal amount of all Loans and Reimbursement Obligations, letter of credit fees and other amounts due under
the Loan Documents at a rate per annum equal to:

 

(a)
for any Base Rate Loan bearing interest based on the Base Rate, the sum of 3.0% plus the Applicable Margin plus
the Base Rate from time to time in effect;

 

(b)
for any Eurodollar Loan, the sum of 3.0% plus the rate of interest in effect thereon at the time of such Event of Default
until the end of the Interest Period applicable thereto and, thereafter, at a rate per annum equal to the sum of 3.0% plus
the Applicable Margin for Base Rate Loans plus the Base Rate from time to time in effect;

 

(c)
for any Reimbursement Obligation, the sum of 3.0% plus the amounts due under Section 1.3 with respect to such Reimbursement
Obligation;

 

(d)
for any Letter of Credit, the sum of 3.0% plus letter of credit fee due under Section 2.1 with respect to such Letter of
Credit; and

 

(e)
for any other amount owing hereunder not covered by clauses (a) through (d) above, the sum of 3.0% plus the Applicable
Margin plus the Base Rate from time to time in effect;

 

provided,
however, that in the absence of acceleration of the Obligations as a result of an Event of Default, any adjustments pursuant
to this Section shall be made at the election of the Administrative Agent, acting at the request or with the consent of the Required
Lenders, with written notice to the Borrower. While any Event of Default exists or after acceleration, interest accruing pursuant
to this Section 1.9 shall be paid on demand of the Administrative Agent at the request or with the consent of the Required Lenders.

 

Section
1.10. Evidence of Indebtedness. (a) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender from time to time, including
the amounts of principal and interest payable and paid to such Lender from time to time hereunder.

 

(b)
The Administrative Agent shall also maintain accounts in which it will record (i) the amount of each Loan made hereunder, the
type thereof and the Interest Period with respect thereto, (ii) the amount of any principal or interest due and payable or to
become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder from the Borrower and each Lender’s share thereof.

 

    	-11-

    	 

    

 

(c)
The entries maintained in the accounts maintained pursuant to paragraphs (a) and (b) above shall be prima facie evidence
of the existence and amounts of the Obligations therein recorded, absent manifest error; provided, however, that the failure
of the Administrative Agent or any Lender to maintain such accounts or any error therein shall not in any manner affect the obligation
of the Borrower to repay the Obligations in accordance with their terms.

 

(d)
Any Lender may request that its Loans be evidenced by a promissory note or notes in the form of Exhibit D (each a “Note”
and collectively, the “Notes”). In such event, the Borrower shall prepare, execute and deliver to such
Lender a Note payable to such Lender or its registered assigns in the amount of its Commitment. Thereafter, the Loans evidenced
by such Note or Notes and interest thereon shall at all times (including after any assignment pursuant to Section 12.12) be represented
by one or more Notes payable to the order of the payee named therein or any assignee pursuant to Section 12.12, except to the
extent that any such Lender or assignee subsequently returns any such Note for cancellation and requests that such Loans once
again be evidenced as described in subsections (a) and (b) above.

 

Section
1.11. Funding Indemnity. If any Lender shall incur any loss or out-of-pocket cost or expense (including, without limitation,
any loss or out-of-pocket cost or expense incurred by reason of the liquidation or re-employment of deposits or other funds acquired
by such Lender to fund or maintain any Eurodollar Loan or the relending or reinvesting of such deposits or amounts paid or prepaid
to such Lender) as a result of:

 

(a)
any payment, prepayment or conversion of a Eurodollar Loan on a date other than the last day of its Interest Period,

 

(b)
any failure (because of a failure to meet the conditions of Section 7 or otherwise) by the Borrower to borrow or continue a Eurodollar
Loan, or to convert a Base Rate Loan into a Eurodollar Loan, on the date specified in a notice given pursuant to Section 1.2 or
1.6(a) hereof,

 

(c)
any failure by the Borrower to make any payment of principal on any Eurodollar Loan when due (whether by acceleration or otherwise),
or

 

(d)
any acceleration of the maturity of a Eurodollar Loan as a result of the occurrence of any Event of Default hereunder,

 

then,
upon the demand of such Lender, the Borrower shall pay to such Lender such amount as will reimburse such Lender for such loss
or out-of-pocket cost or expense. If any Lender makes such a claim for compensation, it shall provide to the Borrower, with a
copy to the Administrative Agent, a certificate setting forth the amount of such loss or out-of-pocket cost or expense in reasonable
detail (including an explanation of the basis for and the computation of such loss or out-of-pocket cost or expense) and the amounts
shown on such certificate shall be deemed prima facie correct absent manifest error.

 

    	-12-

    	 

    

 

Section
1.12. Commitment Terminations.

 

(a)
Optional Terminations. The Borrower shall have the right at any time and from time to time, upon five (5) Business Days
prior written notice to the Administrative Agent (or such shorter period of time agreed to by the Administrative Agent), to terminate
the Commitments without premium or penalty and in whole or in part, any partial termination to be (i) in an amount not less than
$5,000,000 and (ii) allocated ratably among the Lenders in proportion to their respective Percentages, provided that the
Commitments may not be reduced to an amount less than the sum of the aggregate principal amount of Loans and L/C Obligations then
outstanding. Any termination of the Commitments below the L/C Sublimit then in effect shall reduce the L/C Sublimit by a like
amount. The Administrative Agent shall give prompt notice to each Lender of any such termination of the Commitments.

 

(b)
Reinstatement. Any termination of the Commitments pursuant to this Section 1.12 may not be reinstated.

 

Section
1.13. Substitution of Lenders. In the event (a) the Borrower receives a claim from any Lender for compensation under Section
10.3 or 12.1 hereof, (b) the Borrower receives notice from any Lender of any illegality pursuant to Section 10.1 hereof, (c) any
Lender is then a Defaulting Lender, or (d) a Lender fails to consent to an amendment or waiver requested under Section 12.13 hereof
requiring the consent of a Lender at a time when the Required Lenders have approved such amendment or waiver (any such Lender
referred to in clause (a), (b), (c), or (d) above being hereinafter referred to as an “Affected Lender”), the
Borrower may, in addition to any other rights the Borrower may have hereunder or under applicable Legal Requirements, require,
at its expense, any such Affected Lender to assign, at par, without recourse, all of its interest, rights, and obligations hereunder
(including all of its Commitments and the Loans and participation interests in Letters of Credit and other amounts at any time
owing to it hereunder and the other Loan Documents) to an Eligible Assignee specified by the Borrower, provided that (i)
such assignment shall not conflict with or violate any law, rule or regulation or order of any court or other Governmental Authority,
(ii) the Borrower shall have paid to the Affected Lender all monies (together with amounts due such Affected Lender under Section
1.11 hereof as if the Loans owing to it were prepaid rather than assigned) other than such principal owing to it hereunder, and
(iii) the assignment is entered into in accordance with, and subject to the consents required by, Section 12.12 hereof (provided
any assignment fees and reimbursable expenses due thereunder shall be paid by the Borrower).

 

Section
1.14. Defaulting Lenders.

 

(a)
Defaulting Lender Adjustments. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes
a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable
Legal Requirements:

 

(i)
Waivers and Amendments. Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent
with respect to this Agreement shall be restricted as set forth in Section 12.13 hereof.

 

    	-13-

    	 

    

 

(ii)
Defaulting Lender Waterfall. Any payment of principal, interest, fees or other amounts received by the Administrative Agent
for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Section 9 or otherwise) or
received by the Administrative Agent from a Defaulting Lender pursuant to Section 12.7 hereto shall be applied at such time or
times as may be determined by the Administrative Agent as follows: first, to the payment of any amounts owing by such Defaulting
Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting
Lender to any L/C Issuer hereunder; third, to Cash Collateralize the L/C Issuer’s Fronting Exposure with respect
to such Defaulting Lender in accordance with Section 9.4; fourth, as the Borrower may request (so long as no Default or
Event of Default is then continuing), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund
its portion thereof as required by this Agreement, as determined by the Administrative Agent; fifth, if so determined by
the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to (x) satisfy such
Defaulting Lender’s potential future funding obligations with respect to Loans under this Agreement and (y) Cash Collateralize
the L/C Issuer’s future Fronting Exposure with respect to such Defaulting Lender with respect to future Letters of Credit
issued under this Agreement, in accordance with Section 9.4; sixth, to the payment of any amounts owing to the Lenders,
the L/C Issuer as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the L/C Issuer against
such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; seventh,
so long as no Default or Event of Default is then continuing, to the payment of any amounts owing to the Borrower as a result
of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such
Defaulting Lender’s breach of its obligations under this Agreement; and eighth, to such Defaulting Lender or as otherwise
directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of
any Loans or L/C Obligations in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such
Loans were made or the related Letters of Credit were issued at a time when the conditions set forth in Section 7.1 hereof were
satisfied or waived, such payment shall be applied solely to pay the Loans of, and L/C Obligations owed to, all Non-Defaulting
Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or L/C Obligations owed to, such Defaulting
Lender until such time as all Loans and funded and unfunded participations in L/C Obligations are held by the Lenders pro rata
in accordance with their Percentages of the relevant Commitments without giving effect to Section 1.14(a)(iv) below. Any payments,
prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting
Lender or to post Cash Collateral pursuant to this Section 1.14(a)(ii) shall be deemed paid to and redirected by such Defaulting
Lender, and each Lender irrevocably consents hereto.

 

(iii)
Certain Fees.

 

(A)
No Defaulting Lender shall be entitled to receive any commitment fee or facility fee for
any period during which that Lender is a Defaulting Lender (and the Borrower shall not be required to pay any such fee that otherwise
would have been required to have been paid to that Defaulting Lender).

 

    	-14-

    	 

    

 

(B)
Each Defaulting Lender shall be entitled to receive L/C Participation Fees for any period during which that Lender is a Defaulting
Lender only to the extent allocable to its Percentage of the stated amount of Letters of Credit for which it has provided Cash
Collateral pursuant to Section 9.4 hereof.

 

(C)
With respect to any L/C Participation Fee or facility fee not required to be paid to any
Defaulting Lender pursuant to clauseclauses (A)
or (B) above, the Borrower shall pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to
such Defaulting Lender with respect to such Defaulting Lender’s participation in L/C Obligations that has been reallocated
to such Non-Defaulting Lender pursuant to clause (iv) below.

 

(iv)
Reallocation of Participations to Reduce Fronting Exposure. All or any part of such Defaulting Lender’s participation
in L/C Obligations shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Percentages of the
relevant Commitments (calculated without regard to such Defaulting Lender’s Commitments) but only to the extent that (x)
the conditions set forth in Section 7.1 hereof are satisfied at the time of such reallocation (and, unless the Borrower shall
have otherwise notified the Administrative Agent at such time, the Borrower shall be deemed to have represented and warranted
that such conditions are satisfied at such time), and (y) such reallocation does not cause the aggregate Loans and interests in
L/C Obligations of any Non-Defaulting Lender to exceed such Non-Defaulting Lender’s Commitment. NoSubject
to Section 12.26 hereof, no reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder
against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting
Lender as a result of such Non-Defaulting Lender’s increased exposure following such reallocation.

 

(v)
Cash Collateral. If the reallocation described in clause (iv) above cannot, or can only partially, be effected, the Borrower
shall, without prejudice to any right or remedy available to them hereunder or under law, Cash Collateralize the L/C Issuer’s
Fronting Exposure in accordance with the procedures set forth in Section 9.4.

 

(b)
Defaulting Lender Cure. If the Borrower, the Administrative Agent and each L/C Issuer agree in writing that a Lender is
no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date
specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash
Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders
or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded
participations in Letters of Credit to be held pro rata by the Lenders in accordance with their respective Percentages of the
relevant Commitments (without giving effect to Section 1.14(a)(iv) hereof), whereupon such Lender will cease to be a Defaulting
Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf
of the Borrower while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise
expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release
of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.

 

    	-15-

    	 

    

 

(c)
New Letters of Credit. So long as any Lender is a Defaulting Lender, no L/C Issuer shall be required to issue, extend,
renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto.

 

(d)
Any and all Defaulting Lenders shall indemnify and reimburse the Borrower and Guarantors for all actual loss and out-of-pocket
invoiced costs and expenses, including reasonable attorneys’ fees, incurred by the Borrower and Guarantors as a result of
the acts giving rise to such Lender becoming a Defaulting Lender, including, without limitation, such Defaulting Lender’s
failure to fund as contemplated herein.

 

Section
1.15. Increase in Commitments. The Borrower may, from time to time, on any Business Day prior to the Termination Date, increase
the aggregate amount of the Commitments by delivering a commitment amount increase request substantially in the form attached
hereto as Exhibit H or in such other form acceptable to the Administrative Agent at least five (5) Business Days prior to the
desired effective date of such increase (the “Commitment Amount Increase”) identifying one or more additional
Lenders (or additional Commitments for existing Lender(s) or by a combination of existing Lenders and additional Lenders) and
the amount of its Commitment (or additional amount of its Commitment(s)); provided, however, that (i) the aggregate amount
of the Commitments shall not be increased by an amount in excess of $70,000,000,100,000,000,
(ii) any Commitment Amount Increase shall be in an amount of not less than $10,000,000, (iii) no Default or Event of
Default shall have occurred and be continuing at the time of the request or the effective date of the Commitment Amount Increase,
and (iv) all representations and warranties contained in Section 6 hereof shall be true and correct in all material respects where
not already qualified by materiality or Material Adverse Effect, otherwise in all respects at the time of such request and on
the effective date of such Commitment Amount Increase (except to the extent such representations and warranties relate to an earlier
date, in which case they are true and correct in all material respects where not already qualified by materiality or Material
Adverse Effect, otherwise in all respects as of such date). The effective date of the Commitment Amount Increase shall be as set
forth in the related commitment amount increase request. Upon the effectiveness thereof, the new Lender(s) (or, if applicable,
existing Lender(s)) shall advance Loans in an amount sufficient such that after giving effect to its advance each Lender shall
have outstanding its Percentage of Loans. It shall be a condition to such effectiveness that (i) if any Eurodollar Loans are outstanding
on the date of such effectiveness, such Eurodollar Loans shall be deemed to be prepaid on such date and the Borrower shall pay
any amounts owing to the Lenders pursuant to Section 1.11 hereof and (ii) the Borrower shall not have previously terminated any
portion of the Commitments pursuant to Section 1.12 hereof. The Borrower agrees to pay any reasonable and documented, out-of-pocket
expenses of the Administrative Agent relating to any Commitment Amount Increase and arrangement fees related thereto as agreed
upon in writing between Administrative Agent and the Borrower. Notwithstanding anything herein to the contrary, no Lender shall
have any obligation to increase its Commitment and no Lender’s Commitment shall be increased without its consent thereto,
and each Lender may at its option, unconditionally and without cause, decline to increase its Commitment.

 

    	-16-

    	 

    

 

Section
1.16. Extension of Termination Date. The Borrower may, by notice to the Administrative Agent (which shall promptly deliver
a copy to each of the Lenders) given at least thirty (30) days and not more than ninety (90) days prior to the Initial Termination
Date, request that Lenders extend the Initial Termination Date through August 27, 2020.September
30, 2021. Upon the Borrower’s timely delivery of such notice to the Administrative Agent and payment of the Extension
Fee, and provided that both on the notice delivery date and on the Initial Termination Date (i) no Default or Event of
Default has occurred and is continuing, and (ii) all representations and warranties contained in Section 6 hereof shall be true
and correct in all material respects where not already qualified by materiality or Material Adverse Effect, otherwise in all respects
(except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct in
all material respects where not already qualified by materiality or Material Adverse Effect, otherwise in all respects as of such
date), the Termination Date shall be extended to August 27, 2020.September
30, 2021. Should the Termination Date be extended, the terms and conditions of this Agreement will apply during the
extension period, and from and after the date of such extension, the defined term “Termination Date” shall mean August
27, 2020.September 30, 2021.

 

Section
2. Fees.

 

Section
2.1. Fees.

 

(a)
Commitment Fee. ThePrior to the Interest
Rate Election Date (if any), the Borrower shall pay to the Administrative Agent for the ratable account of the Lenders
in accordance with their Percentages a commitment fee at a rate per annum equal to (x) 0.25% if the average daily Unused Commitments
are less than 50% of the Commitments then in effect and (y) 0.35% if the average daily Unused Commitments are greater than or
equal to 50% of the Commitments then in effect (in each case, computed on the basis of a year of 360 days and the actual number
of days elapsed) and determined based on the average daily Unused Commitments during such previous quarter. Such commitment fee
shall be payable quarterly in arrears on the last day of each March, June, September, and December in each year (commencing September
30, 2015) and on the earlier of (i) the Interest Rate Election Date (if any) or (ii) the
Termination Date, unless the Commitments are terminated in whole on an earlier date, in which event the commitment fee for the
period to the date of such termination in whole shall be calculated and paid on the date of such termination. Any
such commitment fee for the first quarter following First Amendment Closing Date or the quarter in which Interest Rate Election
Date (if any) occurs shall be prorated according to the number of days this Agreement was in effect during such quarter.

 

(b)
Facility Fee. Commencing on the first day following the Interest Rate Election Date
(if any), the Borrower shall pay to the Administrative Agent for the ratable account of the Lenders in accordance with their Percentages
a facility fee at the rate per annum equal to the Applicable Margin (computed on the basis of a year of 360 days and the actual
number of days elapsed) on the average daily Commitments, whether or not in use. Such facility fee shall be payable quarterly
in arrears on the last day of each March, June, September, and December in each year (commencing on the first such date occurring
after the Interest Rate Election Date (if any)) and on the Termination Date, unless the Commitments are terminated in whole on
an earlier date, in which event the facility fee for the period to the date of such termination in whole shall be paid on the
date of such termination. Any such facility fee for the quarter in which Interest Rate Election Date (if any) occurs shall be
prorated according to the number of days remaining in such quarter.

 

    	-17-

    	 

    

 

(c)
Letter of Credit Fees. On the date
of issuance or extension, or increase in the amount, of any Letter of Credit pursuant to Section 1.3 hereof, the Borrower shall
pay to the L/C Issuer for its own account a fronting fee equal to 0.125% of the face amount of (or of the increase in the face
amount of) such Letter of Credit. Quarterly in arrears, on the last day of each March, June, September, and December (commencing
on September 30, 2015), the Borrower shall pay to the Administrative Agent, for the ratable benefit of the Lenders in accordance
with their Percentages, a letter of credit fee (the “L/C Participation Fee”) at a rate per annum equal to the
Applicable Margin for Eurodollar Loans (computed on the basis of a year of 360 days and the actual number of days elapsed) in
effect during each day of such quarter applied to the daily average face amount of Letters of Credit outstanding during such quarter.
In addition, the Borrower shall pay to the L/C Issuer for its own account the L/C Issuer’s standard issuance, drawing, negotiation,
amendment, assignment, and other administrative fees for each Letter of Credit as established by the L/C Issuer from time to time.

 

(ed)
Administrative Agent and Other Fees. The Borrower shall pay to the Administrative Agent, for its own use and benefit and
for the benefit of the Lenders, as applicable, the fees agreed to between the Administrative Agent and the Borrower in a
fee letter dated June 9, 2015,an Amended and Restated Fee Letter dated as of August
31, 2016, or as otherwise agreed to in writing between the Borrower and the Administrative Agent.

 

Section
3. Place and Application of Payments.

 

Section
3.1. Place and Application of Payments. All payments of principal of and interest on the Loans and the Reimbursement Obligations,
and of all other Obligations payable by the Borrower under this Agreement and the other Loan Documents, shall be made by the Borrower
to the Administrative Agent by no later than 12:00 noon (Chicago time) on the due date thereof at the office of the Administrative
Agent in Chicago, Illinois (or such other location as the Administrative Agent may designate to the Borrower), for the benefit
of the Lender(s) or L/C Issuer entitled thereto. Any payments received after such time shall be deemed to have been received by
the Administrative Agent on the next Business Day. All such payments shall be made in U.S. Dollars, in immediately available funds
at the place of payment, in each case without set-off or counterclaim. The Administrative Agent will promptly thereafter cause
to be distributed like funds relating to the payment of principal or interest on Loans and on Reimbursement Obligations in which
the Lenders have purchased Participating Interests ratably to the Lenders and like funds relating to the payment of any other
amount payable to any Lender to such Lender, in each case to be applied in accordance with the terms of this Agreement. If the
Administrative Agent causes amounts to be distributed to the Lenders in reliance upon the assumption that the Borrower will make
a scheduled payment and such scheduled payment is not so made, each Lender shall, on demand, repay to the Administrative Agent
the amount distributed to such Lender together with interest thereon in respect of each day during the period commencing on the
date such amount was distributed to such Lender and ending on (but excluding) the date such Lender repays such amount to the Administrative
Agent, at a rate per annum equal to: (i) from the date the distribution was made to the date two (2) Business Days after payment
by such Lender is due hereunder, the Federal Funds Rate for each such day and (ii) from the date two (2) Business Days after the
date such payment is due from such Lender to the date such payment is made by such Lender, the Base Rate in effect for each such
day.

 

    	-18-

    	 

    

 

Anything
contained herein to the contrary notwithstanding (including, without limitation, Section 1.8(b) hereof), all payments and collections
received in respect of the Obligations and all payments under or in respect of the Subsidiary Guaranties received, in each instance,
by the Administrative Agent or any of the Lenders after acceleration or the final maturity of the Obligations or termination of
the Commitments as a result of an Event of Default shall be remitted to the Administrative Agent and distributed as follows:

 

(a)
first, to the payment of any outstanding costs and expenses incurred by the Administrative Agent in protecting, preserving or
enforcing rights under the Loan Documents, and, in any event, including all costs and expenses of a character which the Borrower
has agreed to pay the Administrative Agent under Section 12.15 hereof (such funds to be retained by the Administrative Agent for
its own account unless it has previously been reimbursed for such costs and expenses by the Lenders, in which event such amounts
shall be remitted to the Lenders to reimburse them for payments theretofore made to the Administrative Agent);

 

(b)
second, to the payment of any outstanding interest and fees due under the Loan Documents to be allocated pro rata in accordance
with the aggregate unpaid amounts owing to each holder thereof;

 

(c)
third, to the payment of principal on the Loans, unpaid Reimbursement Obligations, together with amounts to be held by the Administrative
Agent as collateral security for any outstanding L/C Obligations pursuant to Section 9.4 hereof (until the Administrative Agent
is holding an amount of cash equal to the then outstanding amount of all such L/C Obligations), and Hedging Liability, the aggregate
amount paid to, or held as collateral security for, the Lenders and L/C Issuer and, in the case of Hedging Liability, their Affiliates
to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof;

 

(d)
fourth, to the payment of all other unpaid Obligations and all other indebtedness, obligations, and liabilities of the Borrower
and the Guarantors evidenced by the Loan Documents (including, without limitation, Bank Product Obligations) to be allocated pro
rata in accordance with the aggregate unpaid amounts owing to each holder thereof; and

 

(e)
finally, to the Borrower or whoever else may be lawfully entitled thereto.

 

Section
3.2. Account Debit. The Borrower hereby irrevocably authorizes the Administrative Agent to charge any of the Borrower’s
deposit accounts maintained with the Administrative Agent for the amounts from time to time necessary to pay any then due Obligations;
provided that the Borrower acknowledges and agrees that the Administrative Agent shall not be under an obligation to do
so and the Administrative Agent shall not incur any liability to the Borrower or any other Person for the Administrative Agent’s
failure to do so.

 

    	-19-

    	 

    

 

Section
4. Subsidiary Guaranties.

 

Section
4.1. Subsidiary Guaranties. The payment and performance of the Obligations, Hedging Liability, and Bank Product Obligations
shall at all times be guaranteed by each wholly-owned Subsidiary of the Borrower that owns a Borrowing Base Property pursuant
to Section 13 hereof or pursuant to one or more guaranty agreements in form and substance reasonably acceptable to the Administrative
Agent, as the same may be amended, modified or supplemented from time to time (individually a “Subsidiary Guaranty”
and collectively the “Subsidiary Guaranties”; and each such wholly-owned Subsidiary executing and delivering
this Agreement as a Guarantor or any such separate Subsidiary Guaranty being referred to herein as a “Guarantor”
and collectively the “Guarantors”).

 

Section
4.2. Further Assurances. In the event the Borrower desires to include any additional Eligible Property in the Borrowing Base
Value after the Closing Date, to the extent that such Eligible Property is not owned by an existing Guarantor, as a condition
to the inclusion of such Eligible Property in the Borrowing Base Value, the Borrower shall cause the Subsidiary which owns such
Eligible Property to execute a Subsidiary Guaranty or an Additional Guarantor Supplement in the form of Exhibit G attached hereto
(the “Additional Guarantor Supplement”) as the Administrative Agent may then require, and the Borrower shall
also deliver to the Administrative Agent, or cause such Subsidiary to deliver to the Administrative Agent, at the Borrower’s
cost and expense, such other instruments, documents, certificates, and opinions reasonably required by the Administrative Agent
in connection therewith.

 

Section
5. Definitions; Interpretation.

 

Section
5.1. Definitions. The following terms when used herein shall have the following meanings:

 

“Act”
is defined in Section 12.25 hereof.

 

“Additional
Guarantor Supplement” is defined in Section 4.2 hereof.

 

“Adjusted
LIBOR” is defined in Section 1.4(b) hereof.

 

“Administrative
Agent” means Bank of Montreal, in its capacity as Administrative Agent hereunder, and any successor in such capacity
pursuant to Section 11.7 hereof.

 

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

 

“Affected
Lender” is defined in Section 1.13 hereof.

 

    	-20-

    	 

    

 

“Affiliate”
means any Person directly or indirectly controlling or controlled by, or under direct or indirect common control with, another
Person. A Person shall be deemed to control another Person for purposes of this definition if such Person possesses, directly
or indirectly, the power to direct, or cause the direction of, the management and policies of the other Person, whether through
the ownership of voting securities, common directors, trustees or officers, by contract or otherwise; provided that, in
any event for purposes of this definition, any Person that owns, directly or indirectly, 5% or more of the securities having the
ordinary voting power for the election of directors or governing body of a corporation or 5% or more of the partnership or other
ownership interest of any other Person (other than as a limited partner of such other Person) will be deemed to control such corporation
or other Person.

 

“Agreement”
means this Credit Agreement, as the same may be amended, modified, restated or supplemented from time to time pursuant to
the terms hereof.

 

“Applicable
Margin” means, with respect to Loans, Reimbursement Obligations, and letter of creditfees
payable under Section 2.1 hereof:

 

(a)
Until the first Pricing Date after the First Amendment Closing Date, the rates per annum
shown opposite Level IIIII in the schedule
below.

 

(b)
Thereafter, from one Pricing Date to the next and prior to and on an Interest Election Date (if any),
the rates per annum determined in accordance with the following schedules:

 

(i)
With respect to the outstanding principal amount of Loans, Reimbursement Obligations and letter of credit fees which are, in the
aggregate, equal to or less than the product of (A) the Borrowing Base Value multiplied by (B) sixty percent (60%):

 

	Level	 	Leverage
    Ratio for Such Pricing Date	 	Applicable
    Margin 

    for Base Rate Loans

    and Reimbursement

    Obligations shall be:	 	 	Applicable
    Margin

    for Eurodollar 

    Loans and Letter of

    credit Fee Shall Be:	 
	I	 	Less
    than or equal to 0.35 to 1.00	 	 	0.40	%	 	 	1.40	%
	II	 	Less than or equal
    to 0.40 to 1.00, but greater than 0.35 to 1.00	 	 	0.50	%	 	 	1.50	%
	III	 	Less than or equal
    to 0.45 to 1.00, but greater than 0.40 to 1.00	 	 	0.70	%	 	 	1.70	%
	IV	 	Less than or equal
    to 0.50 to 1.00, but greater than 0.45 to 1.00	 	 	0.95	%	 	 	1.95	%
	V	 	Greater than 0.50
    to 1.00	 	 	1.20	%	 	 	2.20	%

 

    	-21-

    	 

    

 

(ii)
With respect to the outstanding principal amount of Loans, Reimbursement Obligations and letter of credit fees which are, in the
aggregate, greater than the product of (A) the Borrowing Base Value multiplied by (B) sixty percent (60%):

 

	Level	 	Leverage
    Ratio for Such Pricing Date	 	Applicable
    Margin for Base Rate Loans and Reimbursement Obligations shall be:	 	 	Applicable
    Margin for Eurodollar Loans and Letter of credit Fee Shall Be:	 
	I	 	Less
    than or equal to 0.35 to 1.00	 	 	1.15	%	 	 	2.15	%
	II	 	Less
    than or equal to 0.40 to 1.00, but greater than 0.35 to 1.00	 	 	1.25	%	 	 	2.25	%
	III	 	Less
    than or equal to 0.45 to 1.00, but greater than 0.40 to 1.00	 	 	1.45	%	 	 	2.45	%
	IV	 	Less
    than or equal to 0.50 to 1.00, but greater than 0.45 to 1.00	 	 	1.70	%	 	 	2.70	%
	V	 	Greater
    than 0.50 to 1.00	 	 	1.95	%	 	 	2.95	%

 

For
purposes hereof, the term “Pricing Date” means, for any Fiscal Quarter of the Borrower ending on or after September
30, 2015, the date on which the Administrative Agent is in receipt of the Borrower’s most recent Compliance Certificate
and financial statements (and, in the case of the year-end financial statements, audit report) (the “Borrower Information”)
for the Fiscal Quarter then ended, pursuant to Section 8.5 hereof. The Applicable Margin shall be established based on the Leverage
Ratio for the most recently completed Fiscal Quarter and the Applicable Margin established on a Pricing Date shall remain in effect
until the next Pricing Date. If the Borrower has not delivered the Borrower Information by the date the same is required to be
delivered under Section 8.5 hereof, then until such Borrower Information is delivered, the Applicable Margin shall be the highest
Applicable Margin (i.e., Level V shall apply). If the Borrower subsequently delivers such Borrower Information before the
next Pricing Date, the Applicable Margin established by such late delivered Borrower Information shall take effect from the date
of delivery until the next Pricing Date. In all other circumstances, the Applicable Margin established by such Borrower Information
shall be in effect from the Pricing Date that occurs immediately after the end of the Fiscal Quarter covered by such Borrower
Information until the next Pricing Date. Each determination of the Applicable Margin made by the Administrative Agent in accordance
with the foregoing shall be conclusive and binding on the Borrower and the Lenders if reasonably determined. The parties understand
that the Applicable Margin set forth herein shall be determined and may be adjusted from time to time based upon the Borrower
Information. If it is subsequently determined that any such Borrower Information was incorrect (for whatever reason, including,
without limitation, because of a subsequent restatement of earnings by the Borrower) at the time it was delivered to the Administrative
Agent and the Lenders, and if the applicable interest rate or fees calculated for any period were lower than they should have
been had the correct information been timely provided, then such Applicable Margin for such period shall be automatically recalculated
using the correct Borrower Information. The Administrative Agent shall promptly notify the Borrower in writing of any additional
interest and fees due because of such recalculation, and the Borrower shall pay within ten (10) Business Days of receipt of such
written notice such additional interest or fees due to the Administrative Agent, for the account of each Lender holding Commitments
and Loans at the time the additional interest and fee payment is received. Any recalculation of the Applicable Margin required
by this provision shall survive the termination of this Agreement, and this provision shall not in any way limit any of the Administrative
Agent’s or any Lender’s other rights under this Agreement; and

 

    	-22-

    	 

    

 

(c)
Commencing on the date after an Interest Rate Election Date (if any), with respect to Loans and Reimbursement Obligations, the
L/C Participation Fee and facility fee payable under Section 2.1(b) hereof, means the rates per annum determined in accordance
with the following schedule:

 

	Level	 	Borrower
    

    Credit Rating	 	Applicable
    Margin

    for Base Rate Loans

    and Reimbursement

    Obligations shall be:	 	 	Applicable
    Margin

    for Eurodollar

    Loans and Letter of

    credit Fee Shall Be:	 	 	Applicable
    Margin

    for Facility Fee

    under Section 2.1(B)
    Shall Be:	 
	I	 	A-/A3
    (or higher)	 		0.000	%	 		0.875	%	 	 	0.125	%
	II	 	BBB+/Baa1	 		0.000	%	 		0.900	%	 	 	0.150	%
	III	 	BBB/Baa2	 		0.000	%	 		1.000	%	 	 	0.200	%
	IV	 	BBB-/Baa3	 		0.200	%	 		1.200	%	 	 	0.250	%
	V	 	<BBB-/Baa3	 		0.550	%	 		1.550	%	 	 	0.300	%

 

During
any period that the Borrower has two Credit Ratings that are not equivalent, but are adjacent to each other in the immediately
preceding pricing grid, then the Applicable Rate will be determined based on the lowest rating. During any period that the Borrower
has either (i) two Credit Ratings that are not equivalent and are not adjacent to each other in the immediately preceding pricing
grid or (ii) three Credit Ratings that are each not equivalent to each other, then the Applicable Rate will be determined based
on the level that is one level above the lowest of such Credit Ratings. During any period after the Interest Rate Election that
the Borrower has fewer than two Credit Ratings, the Applicable Rate will be determined based on Level V of the grid immediately
above. Any change in the Borrower’s Credit Rating which would cause it to move to a different Level shall be effective five
(5) Business Days after (i) the Administrative Agent’s receipt of notice of any such change in the Borrower’s Credit
Rating from Borrower pursuant to Section 8.5 hereof or (ii) notwithstanding Section 8.5 hereof, any date Administrative Agent
otherwise obtains knowledge of any such change (provided that Administrative Agent shall have no duty or obligation to any Person
to ascertain or inquire into the Borrower’s Credit Rating). If it is subsequently determined that any change in the Borrower’s
Credit Rating was not disclosed to Administrative Agent in accordance with Section 8.5, and if the applicable interest rate or
fees calculated for any period were lower than they should have been had the correct information been timely provided in accordance
with Section 8.5 hereof, then such Applicable Margin for such period shall be automatically recalculated using the Borrower’s
correct Credit Rating. The Administrative Agent shall promptly notify the Borrower in writing of any additional interest and fees
due because of such recalculation, and the Borrower shall pay within ten (10) Business Days of receipt of such written notice
such additional interest or fees due to the Administrative Agent, for the account of each Lender holding Commitments and Loans
at the time the additional interest and fee payment is received. Any recalculation of the Applicable Margin required by this provision
shall survive the termination of this Agreement, and this provision shall not in any way limit any of the Administrative Agent’s,
L/C Issuer’s or any Lender’s other rights under this Agreement

 

    	-23-

    	 

    

 

“Application”
is defined in Section 1.3(b) hereof.

 

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

 

“Assignment
and Acceptance” means an assignment and acceptance entered into by a Lender and an Eligible Assignee (with the consent
of any party whose consent is required by Section 12.12 hereof), and accepted by the Administrative Agent, in substantially the
form of Exhibit F or any other form approved by the Administrative Agent.

 

“Authorized
Representative” means those persons shown on the list of officers provided by the Borrower pursuant to Section 7.2 hereof
or on any update of any such list provided by the Borrower to the Administrative Agent, or any further or different officers of
the Borrower so named by any Authorized Representative of the Borrower in a written notice to the Administrative Agent.

 

“Available
Amount” means, at any date of its determination, an amount equal to:

 

(a)
on or prior to December 31, 2016, the product of (i) the Borrowing Base Value for all Borrowing Base Properties multiplied by
(ii) seventy percent (70%); and

 

(b)
on January 1, 2017 and at all times thereafter, the product of (i) the Borrowing Base Value for all Borrowing Base Properties
multiplied by (ii) sixty percent (60%).

 

“Available
Amount Certificate” means the certificate in the form of Exhibit I hereto, or in such other form reasonably acceptable
to the Administrative Agent, to be delivered to the Administrative Agent pursuant to Sections 7.2(j), 7.3, 8.5 and 8.25 hereof.

 

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

 

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

 

    	-24-

    	 

    

 

“Bank
Products” means treasury management services (including, without limitation, controlled disbursement, automated clearinghouse
transactions, return items, overdrafts and interstate depository network services) provided to the Borrower or any Guarantor by
any Lender or any of its Affiliates.

 

“Bank
Product Obligations” of the Borrower and the Guarantors means any and all of their obligations, whether absolute or
contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications
thereof and substitutions therefor) in connection with Bank Products.

 

“Bankruptcy
Event” means, with respect to any Person, any event of the type described in clause (j) or (k) of Section 9.1 hereof
with respect to such Person.

 

“Base
Rate” is defined in Section 1.4(a) hereof.

 

“Base
Rate Loan” means a Loan bearing interest at a rate specified in Section 1.4(a) hereof.

 

“Borrower”
is defined in the introductory paragraph of this Agreement.

 

“Borrowing”
means the total of Loans of a single type advanced, continued for an additional Interest Period, or converted from a different
type into such type by the Lenders on a single date and, in the case of Eurodollar Loans, for a single Interest Period. Borrowings
of Loans are made and maintained ratably from each of the Lenders according to their Percentages. A Borrowing is “advanced”
on the day Lenders advance funds comprising such Borrowing to the Borrower, is “continued” on the date
a new Interest Period for the same type of Loans commences for such Borrowing, and is “converted” when such
Borrowing is changed from one type of Loans to the other, all as determined pursuant to Section 1.6 hereof.

 

“Borrowing
Base Determination Date” means each date on which the Available Amount is certified in writing to the Administrative
Agent, which shall occur as follows:

 

(a)
Quarterly. For quarterly certifications, as of the last day of each Fiscal Quarter.

 

(b)
Property Adjustments. Following each addition or deletion of an Eligible Property, promptly following such addition or
deletion.

 

“Borrowing
Base Property” means, as at any date of determination, any Eligible Property which is taken into account in calculating
the Borrowing Base Value.

 

“Borrowing
Base Requirements” means with respect to the calculation of the Borrowing Base Value, collectively, that:

 

    	-25-

    	 

    

 

(a)
no more than 20% of the Borrowing Base Value may be comprised of any one Borrowing Base Property; and

 

(b)
with the exception of the Borrower’s Tenant, FedEx Corporation and/or its subsidiaries, no other single tenant’s NOI
shall exceed more than 20% of the consolidated NOI used to determine the Borrowing Base Value.

 

“Borrowing
Base Value” means, an amount equal to (x) (A) the consolidated NOI of all Borrowing Base Properties multiplied by
(B) four (4), divided by (y) the Capitalization Rate.

 

“Business
Day” means any day (other than a Saturday or Sunday) on which banks are not authorized or required to close in Chicago,
Illinois and, if the applicable Business Day relates to the advance or continuation of, or conversion into, or payment of a Eurodollar
Loan, on which banks are dealing in U.S. Dollar deposits in the interbank eurodollar market in London, England.

 

“Capital
Lease” means any lease of Property which in accordance with GAAP is required to be capitalized on the balance sheet
of the lessee.

 

“Capitalization
Rate” means 7.00% for all Real Properties.

 

“Capitalized
Lease Obligation” means, for any Person, the amount of the liability shown on the balance sheet of such Person in respect
of a Capital Lease determined in accordance with GAAP.

 

“Cash
Equivalents” means, as to any Person, (a) securities issued, or directly, unconditionally and fully guaranteed or insured,
by the United States or any agency or instrumentality thereof (provided that the full faith and credit of the United States
is pledged in support thereof) having maturities of not more than one year from the date of acquisition by such Person; (b) time
deposits and certificates of deposit of any Lender or any commercial bank having, or which is the principal banking subsidiary
of a bank holding company organized under the Laws of the United States, any state thereof or the District of Columbia having,
capital and surplus aggregating in excess of $500,000,000 and a rating of “A-2” (or such other similar equivalent
rating) or higher by at least one nationally recognized statistical rating organization (as defined in Rule 436 under the Securities
Act) with maturities of not more than one year from the date of acquisition by such Person; (c) repurchase obligations with a
term of not more than 30 days for underlying securities of the types described in clause (a) above entered into with any bank
meeting the qualifications specified in clause (b) above, which repurchase obligations are secured by a valid perfected security
interest in the underlying securities; (d) commercial paper issued by any Person incorporated in the United States rated at least
“A-2” or the equivalent thereof by S&P or at least “P-2” or the equivalent thereof by Moody’s
and in each case maturing not more than one year after the date of acquisition by such Person; (e) investments in money market
funds substantially all of whose assets are comprised of securities of the types described in clauses (a) through (d) above; and
(f) demand deposit accounts maintained in the ordinary course of business.

 

    	-26-

    	 

    

 

“Cash
Collateralize” means, to pledge and deposit with or deliver to the Administrative Agent, for the benefit of one or more
of the L/C Issuer or Lenders, as collateral for L/C Obligations or obligations of Lenders to fund participations in respect of
L/C Obligations, cash or deposit account balances subject to a first priority perfected security interest in favor of the Administrative
Agent or, if the Administrative Agent and each applicable L/C Issuer shall agree in their sole discretion, other credit support,
in each case pursuant to documentation in form and substance satisfactory to the Administrative Agent and each applicable L/C
Issuer. “Cash Collateral” shall have a meaning correlative to the foregoing and shall include the proceeds
of such cash collateral and other credit support.

 

“CERCLA”
means the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Amendments
and Reauthorization Act of 1986, 42 U.S.C. §§9601 et seq., and any future amendments.

 

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

 

“Change
of Control” (a) Any “person” or “group” (as such terms are used in Sections 13(d) and 14(d)
of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person
or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall
be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire (such
right, an “option right”), whether such right is exercisable immediately or only after the passage of time),
directly or indirectly, of 25% or more of the voting interests of the Borrower on a fully-diluted basis (and taking into account
all such securities that such person or group has the right to acquire pursuant to any option right); or

 

(b)
during any period of twelve (12) consecutive months, a majority of the members of the board of directors or other equivalent governing
body of the Borrower cease to be composed of individuals (i) who were members of that board or equivalent governing body on the
first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals
referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent
governing body, or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals
referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that
board or equivalent governing body (excluding, in the case of both clause (ii) and clause (iii), any individual whose initial
nomination for, or assumption of office as, a member of that board or equivalent governing body occurs as a result of solicitation
of proxies or consents for the election or removal of one or more directors by any person or group other than a solicitation for
the election of one or more directors by or on behalf of the board of directors).

 

    	-27-

    	 

    

 

“Closing
Date” means the date of this Agreement.

 

“Code”
means the Internal Revenue Code of 1986, as amended, and any successor statute thereto.

 

“Collateral
Account” is defined in Section 9.4 hereof.

 

“Commitment”
means, as to any Lender, the obligation of such Lender to make Loans and to participate in Letters of Credit issued for the
account of the Borrower hereunder in an aggregate principal or face amount at any one time outstanding not to exceed the amount
set forth opposite such Lender’s name on Schedule 1 attached hereto and made a part hereof, as the same may be reduced or
modified at any time or from time to time pursuant to the terms hereof. The Borrower and the Lenders acknowledge and agree that
the Commitments of the Lenders, in the aggregate, are equal to $130,000,000200,000,000
on the First Amendment Closing Date.

 

“Commitment
Amount Increase” is defined in Section 1.15 hereof.

 

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

 

“Compliance
Certificate” is defined in Section 8.5 hereof.

 

“Connection
Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that
are franchise Taxes or branch profit Taxes.

 

“Controlled
Group” means all members of a controlled group of corporations and all trades or businesses (whether or not incorporated)
under common control which, together with the Borrower, are treated as a single employer under Section 414 of the Code.

 

“Corporate
Debt Yield” means, with reference to any period, the ratio of (a) the consolidated NOI of all Real Estate Assets to
(b) Total Indebtedness, expressed as a percentage.

 

“Credit”
means the credit facility for making Loans and issuing Letters of Credit described in Sections 1.1 and 1.3 hereof.

 

“Credit
Availability” means, as of any time the same is to be determined, the amount (if any) by which (a) the lesser of (1)
the Available Amount as then determined and computed in accordance with this Agreement, and (2) the Commitments as then in effect,
exceeds (b) the aggregate principal amount of Loans and L/C Obligations then outstanding.

 

    	-28-

    	 

    

 

“Credit
Event” means the advancing of any Loan, or the issuance of, or extension of the expiration date or increase in the amount
of, any Letter of Credit.

 

“Credit
Rating” means the rating assigned by a Rating Agency to the Borrower for the senior unsecured long term indebtedness
of the Borrower.

 

“Customary
Recourse Exceptions” means, with respect to any Indebtedness, personal recourse that is limited to fraud, misrepresentation,
misapplication of cash, waste, Environmental Claims and liabilities, prohibited transfers, violations of single purpose entity
covenants and/or similar non-recourse carveouts.

 

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

 

“Debt
Service Coverage Ratio” means as of any date of determination, (a) the consolidated NOI from all Real Estate Assets
divided by (b) the sum of all principal and/or interest payments due from Borrower (whether paid or unpaid, but excluding
all balloon principal payments) on all Indebtedness during the most recent Fiscal Quarter, annualized.

 

“Default”
means any event or condition the occurrence of which would, with the passage of time or the giving of notice, or both, constitute
an Event of Default.

 

“Defaulting
Lender” means, subject to Section 1.14(b), any Lender that (a) has failed to (i) fund all or any portion of its Loans
within two (2) Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative
Agent and the Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions
precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified
in such writing) has not been satisfied, or (ii) pay to the Administrative Agent, any L/C Issuer or any other Lender any other
amount required to be paid by it hereunder (including in respect of its participation in Letters of Credit) within two (2) Business
Days of the date when due, (b) has notified the Borrower, the Administrative Agent or any L/C Issuer in writing that it does not
intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or
public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on
such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable
default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three
(3) Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative
Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender
shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative
Agent and the Borrower), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding
under any Debtor Relief Law, or (ii) had appointed for it a receiver, custodian,
conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation
of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority
acting in such a capacity or (iii) become the subject of a Bail-In Action; provided
that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in
that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does
not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement
of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate,
disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender
is a Defaulting Lender under clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender
shall be deemed to be a Defaulting Lender (subject to Section 1.14(b)) upon delivery of written notice of such determination to
the Borrower, the L/C Issuer and each Lender.

 

    	-29-

    	 

    

 

“EEA
Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country
which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which
is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA
Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated
supervision with its parent.

 

“EEA
Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA
Resolution Authority” means any public administrative authority or any person entrusted with public administrative
authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“Eligible
Assignee” means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund, and (d) any other Person (other than
a natural person) approved by (i) the Administrative Agent, (ii) in the case of any assignment of a Commitment and the L/C Issuer
as provided for in Section 12.12 hereof, (iii) unless an Event of Default has occurred and is continuing, the Borrower (each such
approval not to be unreasonably withheld, conditioned or delayed); provided that notwithstanding the foregoing, “Eligible
Assignee” shall not include the Borrower, any Subsidiary or any other Affiliate of the Borrower or any Subsidiary.

 

“Eligible
Property” means, as of any Borrowing Base Determination Date, any Real Property which satisfies the following conditions:

 

(a)
is wholly owned by Borrower or a Guarantor and is fully developed and operational principally as an industrial, manufacturing,
or distribution building;

 

(b)
is not subject to any lien, encumbrance, or negative pledge, other than a Permitted Lien, nor is any equity interest held by the
Borrower or any Guarantor in the Subsidiary that owns said Real Property subject to any lien, pledge or encumbrance or negative
pledge, other than a Permitted Lien;

 

    	-30-

    	 

    

 

(c)
is free of major structural defects and architectural deficiencies, title defects, environmental conditions or other adverse matters,
except for defects, deficiencies, conditions or other matters individually or collectively which are not material to the profitable
operation of such property; and

 

(d)
is located in the contiguous United States, including the District of Columbia.

 

“Environmental
Claim” means any investigation, notice, violation, demand, allegation, action, suit, injunction, judgment, order, consent
decree, penalty, fine, lien, proceeding or claim (whether administrative, judicial or private in nature) arising (a) pursuant
to, or in connection with an actual or alleged violation of, any Environmental Law, (b) in connection with any Hazardous Material,
(c) from any abatement, removal, remedial, corrective or response action in connection with a Hazardous Material, Environmental
Law or order of a Governmental Authority or (d) from any actual or alleged damage, injury, threat or harm to health, safety, natural
resources or the environment.

 

“Environmental
Law” means any current or future Legal Requirement pertaining to (a) the protection of health, safety and the indoor
or outdoor environment, (b) the conservation, management or use of natural resources and wildlife, (c) the protection or use of
surface water or groundwater, (d) the management, manufacture, possession, presence, use, generation, transportation, treatment,
storage, disposal, Release, threatened Release, abatement, removal, remediation or handling of, or exposure to, any Hazardous
Material or (e) pollution (including any Release to air, land, surface water or groundwater), and any amendment, rule, regulation,
order or directive issued thereunder.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, or any successor statute thereto.

 

“EU
Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association
(or any successor person), as in effect from time to time.

 

“Eurodollar
Loan” means a Loan bearing interest at the rate specified in Section 1.4(b) hereof.

 

“Eurodollar
Reserve Percentage” is defined in Section 1.4(b) hereof.

 

“Event
of Default” means any event or condition identified as such in Section 9.1 hereof.

 

“Excluded
Swap Obligation” means, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion
of the Guarantee of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or
any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity
Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s
failure for any reason not to constitute an “eligible contract participant” as defined in the Commodity Exchange Act
and the regulations thereunder at the time the Guarantee of such Guarantor or the grant of such security interest becomes effective
with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such
exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guarantee or security
interest is or becomes illegal.

 

    	-31-

    	 

    

 

“Excluded
Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted
from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch
profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal
office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political
subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed
on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant
to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant
to an assignment request by the Borrower under Section 1.13 hereof) or (ii) such Lender changes its lending office, except in
each case to the extent that, pursuant to Section 12.1 amounts with respect to such Taxes were payable either to such Lender’s
assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office,
(c) Taxes attributable to such Recipient’s failure to comply with Section 12.1(b) or Section 12.1(d), and (d) any U.S. federal
withholding Taxes imposed under FATCA.

 

“Extension
Fee” means an extension fee payable by the Borrower to the Administrative Agent for the ratable benefit of the Lenders
as a condition to the extension of the Initial Termination Date pursuant to Section 1.16 hereto in an amount equal to 0.15% of
the Commitments then in effect.

 

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

 

“Federal
Funds Rate” means the fluctuating interest rate per annum described in part (i) of clause (b) of the definition of Base
Rate appearing in Section 1.4(a) hereof.

 

“FIRREA”
means the Federal Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended, and all regulations promulgated
pursuant thereto.

 

“First
Amendment Closing Date” means September 30, 2016.

 

“Fiscal
Quarter” means each of the three-month periods ending on March 31, June 30, September 30 and December 31 of each Fiscal
Year.

 

“Fiscal
Year” means each twelve-month period ending on September 30.

 

“Fitch”
means Fitch Ratings, or any successor thereto.

 

    	-32-

    	 

    

 

“Foreign
Lender” means a Lender that is not any Person that is a “United States Person” as defined in Section 7701(a)(30)
of the Code.

 

“Fronting
Exposure” means, at any time there is a Defaulting Lender, with respect to any L/C Issuer, such Defaulting Lender’s
Percentage of the outstanding L/C Obligations with respect to Letters of Credit issued by such L/C Issuer other than L/C Obligations
as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized
in accordance with the terms hereof.

 

“Fund”
means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing
in commercial loans and similar extensions of credit in the ordinary course of its business.

 

“GAAP”
means generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the U.S. accounting
profession), which are applicable to the circumstances as of the date of determination.

 

“Governmental
Authority” means the government of the United States of America or any other nation, or of any political subdivision
thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government
(including any supra-national bodies such as the European Union or the European Central Bank).

 

“Ground
Lease” means a ground lease of Real Property.

 

“Guarantee”
of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing
or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to
purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof,
(c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor
so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any
letter of credit or letter of guaranty issued to support such Indebtedness or obligation; provided, that the term Guarantee
shall not include endorsements for collection or deposit in the ordinary course of business.

 

“Guarantor”
and “Guarantors” are defined in Section 4.1 hereof.

 

    	-33-

    	 

    

 

“Hazardous
Material” means any substance, chemical, compound, product, solid, gas, liquid, waste, byproduct, pollutant, contaminant
or material which is hazardous or toxic, and includes, without limitation, (a) asbestos, polychlorinated biphenyls and petroleum
(including crude oil or any fraction thereof) and (b) any material classified or regulated as “hazardous” or “toxic”
or words of like import pursuant to an Environmental Law.

 

“Hazardous
Material Activity” means any activity, event or occurrence involving a Hazardous Material, including, without limitation,
the manufacture, possession, presence, use, generation, transportation, treatment, storage, disposal, Release, threatened Release,
abatement, removal, remediation, handling of or corrective or response action to any Hazardous Material.

 

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

 

“Hedging
Liability” means the liability of the Borrower or any Guarantor to any of the Lenders, or any Affiliates of such Lenders
in respect of any Hedging Agreement as the Borrower or such Guarantor, as the case may be, may from time to time enter into with
any one or more of the Lenders party to this Agreement or their Affiliates, whether absolute or contingent and howsoever and whensoever
created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor).

 

“Indebtedness”
means obligations, contingent and otherwise (without double-counting), of the following types: (a) the Obligations; (b) all
debt and similar monetary obligations for borrowed money, whether direct or indirect; (c) all liabilities secured by any mortgage,
pledge, negative pledge, security interest, lien, negative lien, charge, or other encumbrance existing on property owned or acquired
subject thereto, whether or not the liability secured thereby shall have been assumed; (d) all guarantees, endorsements and other
contingent obligations whether direct or indirect in respect of indebtedness or obligations of others, including any obligation
to supply funds to or in any manner to invest in, directly or indirectly, the debtor, to purchase indebtedness, or to assure the
owner of indebtedness against loss, through an agreement to purchase goods, supplies, or services for the purpose of enabling
the debtor to make payment of the indebtedness held by such owner or otherwise, and the obligations to reimburse the issuer in
respect of any letters of credit and bankers’ acceptances; (e) all obligations under Capitalized Leases; (f) all obligations
under so-called forward equity purchase contracts to the extent such obligations are not payable solely in equity interests; (g)
all uncollateralized obligations in respect of Hedging Agreements, financial derivatives contracts, and foreign exchange contracts;
(h) all obligations in respect of any so-called synthetic leases (i.e., a lease of property which is treated as an operating
lease under GAAP and as a loan for U.S. income tax purposes; and (i) such obligor’s pro-rata share of liabilities, contingent
or otherwise of the type set forth in (a) through (h) above, under any joint venture, limited liability company or partnership
agreement.

 

    	-34-

    	 

    

 

“Indemnified
Taxes” means (a) all Taxes other than Excluded Taxes and (b) to the extent not otherwise described in (a), Other Taxes.

 

“Initial
Borrowing Base Properties” means, collectively, the Real Property listed on Schedule 1.1 and “Initial Borrowing
Base Property” means any individual Real Property listed on Schedule 1.1.

 

“Initial
Termination Date” means August 27, 2019.September
30, 2020.

 

“Interest
Expense” means, with respect to a Person for any period of time, the interest expense whether paid, accrued or capitalized
(without deduction of consolidated interest income) of such Person for such period. Interest Expense shall exclude any amortization
of (i) deferred financing fees, including the write-off of such fees relating to the early retirement of the related Indebtedness,
and (ii) debt premiums and discounts.

 

“Interest
Payment Date” means (a) with respect to any Eurodollar Loan, the last day of each Interest Period with respect to such
Eurodollar Loan and, if the applicable Interest Period is longer than (3) three months, each day occurring every three (3) months
after the commencement of such Interest Period, (b) with respect to any Base Rate Loan, the last day of every calendar quarter,
and (c) with respect to any Eurodollar Loan and/or any Base Rate Loan, the Termination Date.

 

“Interest
Period” means the period commencing on the date a Borrowing of Eurodollar Loans is advanced, continued, or created by
conversion and ending in the case of Eurodollar Loans, 1, 2, 3, or 6 months thereafter, provided, however, that:

 

(i)
no Interest Period shall extend beyond the Termination Date;

 

(ii)
whenever the last day of any Interest Period would otherwise be a day that is not a Business Day, the last day of such Interest
Period shall be extended to the next succeeding Business Day, provided that, if such extension would cause the last day
of an Interest Period for a Borrowing of Eurodollar Loans to occur in the following calendar month, the last day of such Interest
Period shall be the immediately preceding Business Day; and

 

(iii)
for purposes of determining an Interest Period for a Borrowing of Eurodollar Loans, a month means a period starting on one day
in a calendar month and ending on the numerically corresponding day in the next calendar month; provided, however, that
if there is no numerically corresponding day in the month in which such an Interest Period is to end or if such an Interest Period
begins on the last Business Day of a calendar month, then such Interest Period shall end on the last Business Day of the calendar
month in which such Interest Period is to end.

 

    	-35-

    	 

    

 

“Interest
Rate Election Date” is defined in Section 1.4(d) hereof.

 

“Investment
Grade Credit Rating” means, with respect to the Borrower, a Credit Rating of at least BBB- by S&P, Baa3 by
Moody’s or BBB- by Fitch, and such rating shall not be accompanied by (a) in the case of S&P, a negative outlook, creditwatch
negative or the equivalent thereof, (b) in the case of Moody’s, a negative outlook, a review for possible downgrade or the
equivalent thereof or (c) in the case of Fitch, a negative watch or the equivalent thereof.

 

“Investment
Grade Notice” means a written notice to the Administrative Agent from the Borrower stating that the Borrower
has received an Investment Grade Credit Rating from either S&P or Moody’s, accompanied by reasonably acceptable evidence
of such Investment Grade Credit Rating.

 

“L/C
Issuer” means Bank of Montreal, in its capacity as the issuer of Letters of Credit hereunder, and its successors in
such capacity as provided in Section 1.3(h) hereof.

 

“L/C
Obligations” means the aggregate undrawn face amounts of all outstanding Letters of Credit and all unpaid Reimbursement
Obligations.

 

“L/C
Participation Fee” is defined in Section 2.1(bc)
hereof.

 

“L/C
Sublimit” means $5,000,000, as such amount may be reduced pursuant to the terms hereof.

 

“Lease”
means each existing or future lease, sublease (to the extent of any property owner’s rights thereunder), license, or
other similar agreement under the terms of which any Person has or acquires any right to occupy or use any Real Property or any
part thereof, or interest therein, as the same may be amended, supplemented or modified.

 

“Legal
Requirement” means any treaty, convention, statute, law, regulation, ordinance, license, permit, governmental approval,
injunction, judgment, order, consent decree or other requirement of any Governmental Authority, whether federal, state, or local.

 

“Lenders”
means and includes Bank of Montreal and the other financial institutions from time to time party to this Agreement, including
each assignee Lender pursuant to Section 12.12 hereof.

 

“Lending
Office” is defined in Section 10.4 hereof.

 

“Letter
of Credit” is defined in Section 1.3(a) hereof.

 

“Leverage
Ratio” means, as of any date of determination, the ratio of (i) Total Indebtedness as of such date to (ii) Total Asset
Value as of such date.

 

“LIBOR”
is defined in Section 1.4(b) hereof.

 

“LIBOR
Index Rate” is defined in Section 1.4(b) hereof.

 

    	-36-

    	 

    

 

“LIBOR
Quoted Rate” is defined in Section 1.4(a) hereof.

 

“LIBOR01
Page” is defined in Section 1.4(b) hereof. 

 

“Lien”
means any mortgage, lien, security interest, pledge, charge or encumbrance of any kind in respect of any Property, including
the interests of a vendor or lessor under any conditional sale, Capital Lease or other title retention arrangement.

 

“Loan”
is defined in Section 1.1 hereof and, as so defined, includes a Base Rate Loan or a Eurodollar Loan, each of which is a “type”
of Loan hereunder.

 

“Loan
Documents” means this Agreement, the Notes (if any), the Applications, the Subsidiary Guaranties, if any, and each other
instrument or document to be delivered hereunder or thereunder or otherwise in connection therewith.

 

“Material
Adverse Effect” means (a) a material adverse change in, or material adverse effect upon, the operations, performance,
business, Property or condition (financial or otherwise), results of operations or prospects of the Borrower and its Subsidiaries
taken as a whole, (b) a material impairment of the ability of the Borrower or any Guarantor, taken as a whole, to perform its
obligations under any Loan Document or (c) a material adverse effect upon the legality, validity, binding effect or enforceability
against the Borrower or any Guarantor of any Loan Document or the rights and remedies of the Administrative Agent and the Lenders
thereunder.

 

“Minimum
Collateral Amount” means, at any time, (i) with respect to Cash Collateral consisting of cash or deposit account balances,
an amount equal to 103% of the Fronting Exposure of the L/C Issuers with respect to Letters of Credit issued and outstanding at
such time and (ii) otherwise, an amount determined by the Administrative Agent and the L/C Issuer in their sole discretion except
as otherwise provided for herein.

 

“Moody’s”
means Moody’s Investors Service, Inc., or any successor thereof.

 

“Mortgage
Receivable” means a promissory note secured by a mortgage, deed of trust, deed to secure debt or similar security interest
made by a Person owning an interest in real estate granting a Lien on such interest in real estate as security for the payment
of Indebtedness of which Borrower, a Guarantor or other Subsidiary is the holder and retains the rights of collection of all payments
thereunder

 

“NOI”
means, for the most recent Fiscal Quarter ended, annualized, with respect to any wholly owned property of the Borrower, each
Guarantor and the Subsidiaries, all rental and other income (as determined by GAAP) attributable to such property accruing for
such period (adjusted to eliminate (a) the straight lining of rents, (b) income from tenants in bankruptcy whose leases have not
been affirmed by the bankruptcy court, and (c) income from tenants operating under default leases after expiration of any applicable
notice and cure periods with respect to the default in question) minus the amount of all expenses (as determined in accordance
with GAAP) incurred in connection with and directly attributable to the ownership and operation of such property for such period,
including, without limitation, actual management fees and amounts accrued for the payment of real estate taxes and insurance premiums,
but excluding any general and administrative expenses related to the operation of the Borrower, any Guarantor or any Subsidiary,
any interest expense or other debt service charges and any non-cash charges such as depreciation or amortization of financing
costs.

 

    	-37-

    	 

    

 

“Non-Defaulting
Lender” means, at any time, each Lender that is not a Defaulting Lender at such time.

 

“Note”
and “Notes” are defined in Section 1.10 hereof.

 

“Obligations”
means all obligations of the Borrower to pay principal and interest on the Loans, all Reimbursement Obligations owing under
the Applications, all fees and charges payable hereunder, and all other payment obligations of the Borrower or any Guarantor arising
under or in relation to any Loan Document, in each case whether now existing or hereafter arising, due or to become due, direct
or indirect, absolute or contingent, and howsoever evidenced, held or acquired.

 

“OFAC”
means the United States Department of Treasury Office of Foreign Assets Control.

 

“OFAC
Event” means the event specified in Section 8.13(c) hereof.

 

“OFAC
Sanctions Programs” means all laws, regulations, and Executive Orders administered by OFAC, including without limitation,
the Bank Secrecy Act, anti-money laundering laws (including, without limitation, the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56 (a/k/a the USA Patriot Act)), and all
economic and trade sanction programs administered by OFAC, any and all similar United States federal laws, regulations or Executive
Orders, and any similar laws, regulations or orders adopted by any State within the United States.

 

“OFAC
SDN List” means the list of the Specially Designated Nationals and Blocked Persons maintained by OFAC.

 

“Other
Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection
between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed,
delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest
under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan
or Loan Document).

 

“Other
Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that
arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt
or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other
Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 1.13 hereof).

 

    	-38-

    	 

    

 

“Participating
Interest” is defined in Section 1.3(e) hereof.

 

“Participating
Lender” is defined in Section 1.3(e) hereof.

 

“Patriot
Act” is defined in Section 7.2(q) hereof.

 

“PBGC”
means the Pension Benefit Guaranty Corporation or any Person succeeding to any or all of its functions under ERISA.

 

“Percentage”
means, for each Lender, the percentage of the Commitments represented by such Lender’s Commitment or, if the Commitments
have been terminated, the percentage held by such Lender (including through participation interests in Reimbursement Obligations)
of the aggregate principal amount of all Loans and L/C Obligations then outstanding.

 

“Permitted
Acquisition” means the acquisition by Borrower, any Guarantor or any Subsidiary of Real Estate Assets which, in the
aggregate, are primarily leased or intended to be leased primarily for industrial, manufacturing or distribution purposes (including
“flex” and warehouse uses) or other similar commercial purposes of a type consistent with the Borrower’s business
strategy, whether such acquisition is accomplished by a direct purchase of such Real Estate Assets or by a merger or acquisition
of stock or other ownership interests or debt securities such that the owner of such Real Estate becomes a Subsidiary.

 

“Permitted
Liens” The following Liens, security interests and other encumbrances:

 

(a)
Liens in favor of Administrative Agent;

 

(b)
Liens to secure taxes, assessments and other governmental charges which are not delinquent or which are being contested in good
faith and for which a reserve shall have been established in accordance with GAAP;

 

(c)
other than with respect to Borrowing Base Properties, Liens that do not create a violation of Section 8.20 hereof;

 

(d)
deposits or pledges made in connection with, or to secure payment of, workmen’s compensation, unemployment insurance, old
age pensions or other social security obligations, and deposits with utility companies and other similar deposits made in the
ordinary course of business;

 

(e)
Liens approved in writing by the Administrative Agent prior to their creation based upon a written request of the Borrower or
any Guarantor;

 

(f)
encumbrances consisting of easements, rights of way, restrictions on the use of real property, minor defects and irregularities
in the title thereto, and similar or minor Liens or encumbrances, none of which in the reasonable opinion of the Agent interferes
materially and adversely with the ordinary conduct of the business of the Borrower, and which matters neither (x) individually
or in the aggregate could have a Material Adverse Effect nor (xx) individually or in the aggregate could have a Material Adverse
Effect on the value of a Borrowing Base Property;

 

    	-39-

    	 

    

 

(g)
other than with respect to Borrowing Base Properties, Liens that do not create a violation of any term or provision of this Agreement
or any document, instrument or agreement related to the Indebtedness of any Real Estate Asset; or

 

(h)
Leases entered into in the ordinary course of business.

 

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

 

“Plan”
means any employee pension benefit plan covered by Title IV of ERISA or subject to the minimum funding standards under Section
412 of the Code that either (a) is maintained by a member of the Controlled Group for employees of a member of the Controlled
Group or (b) is maintained pursuant to a collective bargaining agreement or any other arrangement under which more than one employer
makes contributions and to which a member of the Controlled Group is then making or accruing an obligation to make contributions
or has within the preceding five plan years made contributions.

 

“Property”
or “Properties” means, as to any Person, all types of real (including the Real Property), personal, tangible,
intangible or mixed property, including leasehold estates created by Ground Leases, owned by such Person whether or not included
in the most recent balance sheet of such Person and its subsidiaries under GAAP, including, as to any Subsidiary, any Real Property
owned by it.

 

“Qualified
ECP Guarantor” means, in respect of any Swap Obligation, each Guarantor that has total assets exceeding $10,000,000
at the time the relevant Guarantee or grant of the relevant security interest becomes effective with respect to such Swap Obligation
or such other person as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations
promulgated thereunder and can cause another person to qualify as an “eligible contract participant” at such time
by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

“Rating
Agency” means S&P, Fitch or Moody’s, as applicable.

 

“RCRA”
means the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976 and Hazardous and Solid
Waste Amendments of 1984, 42 U.S.C. §§6901 et seq., and any future amendments.

 

“Real
Estate Assets” means those fixed and tangible properties consisting of land, buildings and/or other improvements owned
by the Borrower, any Guarantor or any Subsidiary at the relevant time of reference thereto, but excluding all leasehold interests
other than leaseholds under Ground Leases which either have an unexpired term of at least twenty-five (25) years or contain a
purchase option for nominal consideration.

 

“Real
Property” or “Real Properties” means the real property owned by the Borrower or any of its Subsidiaries.

 

    	-40-

    	 

    

 

“Recipient”
means (a) the Administrative Agent, (b) any Lender, and (c) any L/C Issuer, as applicable.

 

“Reimbursement
Obligation” is defined in Section 1.3(c) hereof.

 

“REIT”
means a “real estate investment trust” in accordance with Section 856 of the Code.

 

“Release”
means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, migration,
dumping, or disposing into the indoor or outdoor environment, including, without limitation, the abandonment or discarding of
barrels, drums, containers, tanks or other receptacles containing or previously containing any Hazardous Material.

 

“Required
Lenders” means, as of the date of determination thereof, Lenders whose outstanding Loans, interests in Letters of Credit
and Unused Commitments constitute more than 50% of the sum of the total outstanding Loans, interests in Letters of Credit, and
Unused Commitments of the Lenders provided however, that, in no event shall Required Lenders include fewer than
two (2) unaffiliated Lenders at any time when there are two (2) or more unaffiliated Lenders.

 

“Responsible
Officer” means, with respect to Borrower, the chief executive officer, president, chief financial officer, chief accounting
officer, treasurer, assistant treasurer, controller, general counsel or chief legal officer or the chief operating officer of
such Person.

 

“Restricted
Payments” means dividends on or other distributions in respect of any class or series of Stock, Stock Equivalents or
other equity interests of the Borrower or its Subsidiaries or the direct or indirect purchase, redemption, acquisition, or retirement
of any of the Borrower’s or a Subsidiaries’ Stock, Stock Equivalents or other equity interest.

 

“S&P”
means Standard & Poor’s Ratings Services Group, a division of The McGraw-Hill Companies, Inc.

 

“Stock”
means shares of capital stock, beneficial or partnership interests, participations or other equivalents (regardless of how
designated) of or in a corporation or equivalent entity, whether voting or non-voting, and includes, without limitation, common
stock, but excluding any preferred stock or other preferred equity securities.

 

“Stock
Equivalents” means all securities (other than Stock) convertible into or exchangeable for Stock at the option of the
holder, and all warrants, options or other rights to purchase or subscribe for any stock, whether or not presently convertible,
exchangeable or exercisable.

 

“Subsidiary”
means, as to any particular parent corporation or organization, any other corporation or organization more than 50% of the
outstanding Voting Stock of which is at the time directly or indirectly owned by such parent corporation or organization or by
any one or more other entities which are themselves subsidiaries of such parent corporation or organization. Unless otherwise
expressly noted herein, the term “Subsidiary” means a Subsidiary of the Borrower or of any of its direct or
indirect Subsidiaries.

 

    	-41-

    	 

    

 

“Subsidiary
Guaranty” and “Subsidiary Guaranties” are defined in Section 4.1 hereof.

 

“Swap
Obligation” means, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or
transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.

 

“Tangible
Net Worth” means, of any date of determination, the consolidated stockholders’ equity of Borrower, plus
accumulated depreciation and amortization, minus (to the extent included when determining stockholders’ equity):
(a) the amount of any write-up in the book value of any assets reflected in any balance sheet resulting from revaluation thereof
or any write up in excess of the cost of such assets acquired, and (b) the aggregate of all amounts appearing on the assets side
of any such balance sheet for franchises, licenses, permits, patents, patent applications, copyrights, trademarks, service marks,
trade names, goodwill, treasury stock, experimental or organizational expenses and other like assets which would be classified
as intangible assets under GAAP, all determined on a consolidated basis.

 

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

 

“Tenant”
means any Person leasing, subleasing or otherwise occupying any portion of a Real Property under a Lease.

 

“Termination
Date” means the earliest of (i) the Initial Termination Date, as such date may be extended pursuant to Section 1.16,
and (ii) the date on which the Commitments are terminated in whole pursuant to Section 1.12, 9.2 or 9.3 hereof.

 

“Threshold
Available Amount” means, at any date of its determination, an amount equal to (a) the consolidated Borrowing Base Value
for all Borrowing Base Properties multiplied by (b) seventy percent (70%).

 

“Total
Asset Value” means the sum of (a) Total Real Estate Asset Value, (b) Borrower’s consolidated cash and Cash Equivalents,
and (c) Borrower’s consolidated marketable securities available for sale.

 

“Total
Indebtedness” means, as of a given date, the sum of (a) Borrower’s consolidated Indebtedness including all recourse
and non-recourse mortgage debt, letters of credit, net obligations under uncovered Hedging Agreements, contingent obligations
to the extent the obligations are binding, unsecured debt, Capitalized Lease obligations (including Ground Leases), guarantees
of Indebtedness (excluding traditional carve-outs relating to non-recourse debt obligations), subordinated debt, all consolidated
secured debt of the Borrower, (b) the aggregate outstanding principal amount of Loans and L/C Obligations, and (c) amounts outstanding
under any margin line facilities of the Borrower.

 

    	-42-

    	 

    

 

“Total
Real Estate Asset Value” means the value derived by taking the aggregate consolidated NOI from the Real Estate Assets
and capitalizing it by using the Capitalization Rate.

 

“Total
Secured Recourse Indebtedness” means, as of any date of determination, the amount of Total Indebtedness (including the
face amount of all outstanding letters of credit) which is recourse to, or has a deficiency guaranty provided by, the Borrower
(directly or by a guaranty thereof, but without duplication) and is secured by a Lien, but excluding Customary Recourse Exceptions.
For the avoidance of doubt, if any such Indebtedness is partially guaranteed by the Borrower, then solely the portion of such
Indebtedness that is so guaranteed shall constitute Total Secured Recourse Indebtedness for purposes of this definition.

 

“Total
Unencumbered Asset Value” means the sum of (a) Total Unencumbered Real Estate Asset Value, (b) Borrower’s consolidated
cash and Cash Equivalents that are not subject to any Lien, and (c) Borrower’s consolidated marketable securities available
for sale that are not subject to any Lien.

 

“Total
Unencumbered Real Estate Asset Value” means the value derived by taking the aggregate consolidated NOI from the Unencumbered
Real Estate Assets and capitalizing it by using the Capitalization Rate.

 

“Total
Unsecured Indebtedness” means, as of the date of determination, the amount of Total Indebtedness (including the face
amount of all outstanding letters of credit) which is not secured by any Lien.

 

“UCC”
means the Uniform Commercial Code as in effect in the State of New York.

 

“Unencumbered
Real Estate Asset” means, as of any date of determination, any Real Estate Asset that is not subject to a Lien and is
owned by a Borrower or Subsidiary whose equity interest is not subject to any Lien.

 

“Unfunded
Vested Liabilities” means, for any Plan at any time, the amount (if any) by which the present value of all vested nonforfeitable
accrued benefits under such Plan exceeds the fair market value of all Plan assets allocable to such benefits, all determined as
of the then most recent valuation date for such Plan, but only to the extent that such excess represents a potential liability
of a member of the Controlled Group to the PBGC or the Plan under Title IV of ERISA.

 

“Unsecured
Leverage Ratio” means, as at any date of determination, the ratio of (i) Total Unsecured Indebtedness as of such date
to (ii) Total Unencumbered Asset Value as of such date.

 

“Unused
Commitments” means, at any time, the difference between the Commitments then in effect and the aggregate outstanding
principal amount of Loans and L/C Obligations.

 

“U.S.
Dollars” and “$” each means the lawful currency of the United States of America.

 

“U.S.
Person” means any Person that is a “United States Person” as defined in Section 7701(a)(30) of the Code.

 

    	-43-

    	 

    

 

“Voting
Stock” of any Person means capital stock or other equity interests of any class or classes (however designated) having
ordinary power for the election of directors or other similar governing body of such Person, other than stock or other equity
interests having such power only by reason of the happening of a contingency.

 

“Welfare
Plan” means a “welfare plan” as defined in Section 3(1) of ERISA.

 

“Withholding
Agent” means the Borrower and the Administrative Agent.

 

“Write-Down
and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers
of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which
write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

 

Section
5.2. Interpretation. The foregoing definitions are equally applicable to both the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words
“include,” “includes” and “including” shall be deemed to be followed by the phrase “without
limitation.” The word “will” shall be construed to have the same meaning and effect as the word “shall.”
Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein
shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or
otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference
herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein,”
“hereof” and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in
its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules
shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any
law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented
from time to time, and (f) the words “asset” and “property” shall be construed to have the same meaning
and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and
contract rights. All references to time of day herein are references to Chicago, Illinois, time unless otherwise specifically
provided. Where the character or amount of any asset or liability or item of income or expense is required to be determined or
any consolidation or other accounting computation is required to be made for the purposes of this Agreement, it shall be done
in accordance with GAAP except where such principles are inconsistent with the specific provisions of this Agreement.

 

Section
5.3. Change in Accounting Principles. If, after the date of this Agreement, there shall occur any change in GAAP from those
used in the preparation of the financial statements referred to in Section 6.5 hereof and such change shall result in a change
in the method of calculation of any financial covenant, standard or term found in this Agreement, either the Borrower or the Required
Lenders may, by written notice to the Lenders and the Borrower, respectively, require that the Lenders and the Borrower negotiate
in good faith to amend such covenants, standards, and terms so as equitably to reflect such change in accounting principles, with
the desired result being that the criteria for evaluating the financial condition of the Borrower and its Subsidiaries shall be
the same as if such change had not been made. No delay by the Borrower or the Required Lenders in requiring such negotiation shall
limit their right to so require such a negotiation at any time after such a change in accounting principles. Until any such covenant,
standard, or term is amended in accordance with this Section 5.3, financial covenants shall be computed and determined in accordance
with GAAP in effect prior to such change in accounting principles. Without limiting the generality of the foregoing, the Borrower
shall neither be deemed to be in compliance with any financial covenant hereunder nor out of compliance with any financial covenant
hereunder if such state of compliance or noncompliance, as the case may be, would not exist but for the occurrence of a change
in accounting principles after the Closing Date.

 

    	-44-

    	 

    

 

Section
6. Representations and Warranties.

 

The
Borrower and each Guarantor represents and warrants to the Administrative Agent, the Lenders, and the L/C Issuer as follows:

 

Section
6.1. Organization and Qualification. The Borrower is duly organized, validly existing, and in good standing as a corporation
under the laws of the State of Maryland. The Borrower has full and adequate power to own its Property and conduct its business
as now conducted, and is duly licensed or qualified and in good standing in each jurisdiction in which the nature of the business
conducted by it or the nature of the Property owned or leased by it requires such licensing or qualifying; except to the extent
that the failure to do so would not have a Material Adverse Effect.

 

Section
6.2. Subsidiaries. Each Subsidiary is (a) duly organized, validly existing, and in good standing under the laws of the jurisdiction
in which it is organized and (b) has full and adequate power to own its Property and conduct its business as now conducted, and
is duly licensed or qualified and in good standing in each jurisdiction in which the nature of the business conducted by it or
the nature of the Property owned or leased by it requires such licensing or qualifying; except in each case referred to in clause
(b) to the extent that the failure to do so would not have a Material Adverse Effect. Schedule 6.2 hereto is a correct and complete
copy of the organizational chart of Borrower and its Subsidiaries as of the First Amendment
Closing Date (including with respect to future periods as to which this representation is required to be remade, as updated from
time to time as provided in Section 8.5(l)) and identifies the jurisdiction of organization of Borrower and each Subsidiary. All
of the outstanding shares of capital stock and other equity interests of each Subsidiary are validly issued and outstanding and,
with respect to Subsidiaries that are corporations, fully paid and nonassessable, and all such shares and other equity interests
indicated on Schedule 6.2 as owned by Borrower or a Subsidiary are owned, beneficially and of record, by Borrower or such Subsidiary
free and clear of all Liens (other than Permitted Liens). There are no outstanding commitments or other obligations of the Borrower
or any Subsidiary of the Borrower to issue, and no options, warrants or other rights of any Person to acquire, any shares of any
class of capital stock or other equity interests of the Borrower or any Subsidiary of the Borrower.

 

Section
6.3. Authority and Validity of Obligations. The Borrower has full right and authority to enter into this Agreement and the
other Loan Documents executed by it, to make the borrowings herein provided for, and to perform all of its obligations hereunder
and under the other Loan Documents executed by it. Each Guarantor has full right and authority to enter into the Loan Documents
executed by it, to guarantee the Obligations, Hedging Liability, and Bank Product Obligations, and to perform all of its obligations
under the Loan Documents executed by it. The Loan Documents delivered by the Borrower and each Guarantor have been duly authorized,
executed, and delivered by such Persons and constitute valid and binding obligations of the Borrower and each Guarantor enforceable
against them in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance
or similar laws affecting creditors’ rights generally and general principles of equity (regardless of whether the application
of such principles is considered in a proceeding in equity or at law); and this Agreement and the other Loan Documents do not,
nor does the performance or observance by the Borrower or any Guarantor of any of the matters and things herein or therein provided
for, (a) contravene or constitute a default under any provision of law or any judgment, injunction, order or decree binding upon
the Borrower or any Guarantor or any provision of the organizational documents (e.g., charter, certificate or articles
of incorporation and bylaws, certificate or articles of association and operating agreement, partnership agreement, or other similar
organizational documents) of the Borrower or any Guarantor, (b) contravene or constitute a default under any covenant, indenture
or agreement of or affecting the Borrower or any Guarantor or any of their Property, in each case where such contravention or
default, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect, or (c) result in the
creation or imposition of any Lien on any Property of the Borrower or any Guarantor (other than in favor of the Administrative
Agent for its benefit and/or the benefit of the Lenders and the L/C Issuer).

 

    	-45-

    	 

    

 

Section
6.4. Use of Proceeds; Margin Stock. The Borrower shall use the proceeds of the Credit to refinance existing indebtedness,
to fund acquisitions, to finance capital expenditures and working capital, for general corporate purposes and to fund certain
fees and expenses due to the Administrative Agent and/or Lenders as contemplated herein. Neither the Borrower nor any Guarantor
is engaged in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation
U of the Board of Governors of the Federal Reserve System), and no part of the proceeds of any Loan or any other extension of
credit made hereunder will be used to purchase or carry any such margin stock or to extend credit to others for the purpose of
purchasing or carrying any such margin stock. Margin stock (as hereinabove defined) constitutes less than 25% of the assets of
the Borrower and the Guarantors.

 

Section
6.5. Financial Reports. The consolidated balance sheet of the Borrower and its Subsidiaries as of September 30, 2014, and
the related consolidated statements of income, retained earnings and cash flows of Borrower and its Subsidiaries for the Fiscal
Year then ended, and the consolidated balance sheet of the Borrower and its Subsidiaries as of June 30, 2015, and the related
consolidated statements of income, retained earnings and cash flows of Borrower and its Subsidiaries for the Fiscal Quarter then
ended, and accompanying notes thereto, which financial statements are accompanied by the unqualified audit report of independent
public accountants heretofore furnished to the Administrative Agent and the Lenders, fairly present, in all material respects,
the consolidated financial condition of Borrower and its Subsidiaries as at said dates and the consolidated results of their operations
and cash flows for the periods then ended in conformity with GAAP applied on a consistent basis. None of the Borrower or any Subsidiary
has contingent liabilities which are material to it other than as indicated on such financial statements or with respect to future
periods, on the financial statements furnished pursuant to Section 8.5 hereof).

 

    	-46-

    	 

    

 

Section
6.6. No Material Adverse Change. Since September 30, 2014, there has been no change in the business, financial condition,
operations, performance or properties of the Borrower or any Subsidiary, which would reasonably be expected to have a Material
Adverse Effect.

 

Section
6.7. Full Disclosure. The statements and information furnished to the Administrative Agent and the Lenders in connection with
the negotiation of this Agreement and the other Loan Documents and the commitments by the Lenders to provide all or part of the
financing contemplated hereby do not contain any untrue statements of a material fact or omit a material fact necessary to make
the material statements contained herein or therein, not misleading, the Administrative Agent and the Lenders acknowledging that
as to any projections furnished to the Administrative Agent and the Lenders, the Borrower only represents that the same were prepared
on the basis of information and estimates the Borrower believed to be reasonable.

 

Section
6.8. Trademavrks, Franchises, and Licenses. The Borrower and its Subsidiaries own, possess, or have the right to use all patents,
licenses, franchises, trademarks, trade names, trade styles, copyrights, trade secrets, know how, and confidential commercial
and proprietary information to conduct their businesses as now conducted, without known conflict with any patent, license, franchise,
trademark, trade name, trade style, copyright or other proprietary right of any other Person except, in each case, where the failure
to do so would not have a Material Adverse Effect.

 

Section
6.9. Governmental Authority and Licensing. The Borrower and its Subsidiaries have received all licenses, permits, and approvals
of all federal, state, and local governmental authorities, if any, necessary to conduct their businesses, in each case where the
failure to obtain or maintain the same would reasonably be expected to have a Material Adverse Effect. No investigation or proceeding,
which, if adversely determined, could reasonably be expected to result in revocation or denial of any material license, permit
or approval, is pending or, to the knowledge of the Borrower, threatened except where such revocation or denial would not reasonably
be expected to have a Material Adverse Effect.

 

Section
6.10. Good Title. The Borrower and its Subsidiaries have good and defensible title (or valid leasehold interests) to their
assets as reflected on the most recent consolidated balance sheet of the Borrower and its Subsidiaries furnished to the Administrative
Agent and the Lenders (except for sales of assets in the ordinary course of business). The assets owned by the Borrower and each
Guarantor are subject to no Liens, other than Permitted Liens.

 

Section
6.11. Litigation and Other Controversies. There is no litigation or governmental or arbitration proceeding or labor controversy
pending, nor to the knowledge of the Borrower threatened, against the Borrower or any Subsidiary or any of their Property which
if adversely determined, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect other
than as set forth on Schedule 6.11.

 

    	-47-

    	 

    

 

Section
6.12. Taxes. All tax returns required to be filed by the Borrower or any Subsidiary in any jurisdiction have, in fact, been
filed, and all Taxes upon the Borrower or any Subsidiary or upon any of its Property, income or franchises, which are shown to
be due and payable in such returns, have been paid, except such taxes, assessments, fees and governmental charges, if any, as
are being contested in good faith and by appropriate proceedings which prevent enforcement of the matter under contest and as
to which adequate reserves established in accordance with GAAP have been provided. Adequate provisions in accordance with GAAP
for material taxes on the books of the Borrower and each Subsidiary have been made for all open years, and for its current fiscal
period.

 

Section
6.13. Approvals. No authorization, consent, license or exemption from, or filing or registration with, any court or governmental
department, agency or instrumentality, nor any approval or consent of any other Person, is or will be necessary to the valid execution,
delivery or performance by the Borrower or any Guarantor of any Loan Document.

 

Section
6.14. Affiliate Transactions. Except as permitted by Section 8.14 hereof, neither the Borrower nor any Subsidiary is a party
to any contracts or agreements with any of its Affiliates on terms and conditions which are less favorable to the Borrower or
such Subsidiary than would be usual and customary in similar contracts or agreements between Persons not affiliated with each
other.

 

Section
6.15. Investment Company. Neither the Borrower nor any Subsidiary is an “investment company” or a company “controlled”
by an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

Section
6.16. ERISA. The Borrower and each other member of its Controlled Group has fulfilled its obligations under the minimum funding
standards of and is in compliance in all material respects with ERISA and the Code to the extent applicable to it and has not
incurred any liability to the PBGC or a Plan under Title IV of ERISA other than a liability to the PBGC for premiums under Section
4007 of ERISA. Neither the Borrower nor any Subsidiary has any contingent liabilities with respect to any post-retirement benefits
under a Welfare Plan, other than liability for continuation coverage described in article 6 of Title I of ERISA.

 

Section
6.17. Compliance with Laws. (a) The Borrower and its Subsidiaries are in compliance with the requirements of all Legal Requirements
applicable to or pertaining to their Property or business operations (including, without limitation, the Occupational Safety and
Health Act of 1970, the Americans with Disabilities Act of 1990, zoning regulations and laws and regulations establishing quality
criteria and standards for air, water, land and toxic or hazardous wastes and substances), where any such non-compliance, individually
or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

 

(b)
Without limiting the representations and warranties set forth in Section 6.17(a) above, except for such matters, individually
or in the aggregate, which would not reasonably be expected to result in a Material Adverse Effect, the Borrower represents and
warrants that: (i) the Borrower and its Subsidiaries, and each of the Real Properties, comply in all material respects with all
applicable Environmental Laws; (ii) the Borrower and its Subsidiaries have obtained all governmental approvals required for their
operations and each of the Real Properties by any applicable Environmental Law; (iii) the Borrower and its Subsidiaries have not,
and the Borrower has no knowledge of any other Person who has, caused any Release, threatened Release or disposal of any Hazardous
Material at, on, about, or off any of the Real Properties in any material quantity and, to the knowledge of the Borrower, none
of the Real Properties are adversely affected by any Release, threatened Release or disposal of a Hazardous Material originating
or emanating from any other property; (iv) the Borrower and its Subsidiaries have no notice or knowledge that the Real Properties
contain or have contained any: (1) underground storage tank or material amounts of asbestos containing building material, (2)
landfills or dumps, (3) hazardous waste management facility as defined pursuant to RCRA or any comparable state law, or (4) site
on or nominated for the National Priority List promulgated pursuant to CERCLA or any state remedial priority list promulgated
or published pursuant to any comparable state law; (v) the Borrower and its Subsidiaries have not used a material quantity of
any Hazardous Material and have conducted no Hazardous Material Activity at any of the Real Properties; (vi) the Borrower and
its Subsidiaries have no material liability for response or corrective action, natural resource damage or other harm pursuant
to CERCLA, RCRA or any comparable state law; (vii) the Borrower and its Subsidiaries are not subject to, have no notice or knowledge
of and are not required to give any notice of any Environmental Claim involving the Borrower or any Subsidiary or any of the Real
Properties, and there are no conditions or occurrences at any of the Real Properties which could reasonably be anticipated to
form the basis for an Environmental Claim against the Borrower or any Subsidiary or such Real Properties; (viii) none of the Real
Properties are subject to any, and the Borrower has no knowledge of any imminent restriction on the ownership, occupancy, use
or transferability of the Real Properties in connection with any (1) Environmental Law or (2) Release, threatened Release or disposal
of a Hazardous Material; and (ix) there are no conditions or circumstances at any of the Real Properties which pose an unreasonable
risk to the environment or the health or safety of Persons.

 

    	-48-

    	 

    

 

Section
6.18. OFAC. (a) The Borrower is in compliance with the requirements of all OFAC Sanctions Programs applicable to it, (b) each
Subsidiary is in compliance with the requirements of all OFAC Sanctions Programs applicable to such Subsidiary, (c) the Borrower
has provided to the Administrative Agent, the L/C Issuer, and the Lenders all information regarding the Borrower, the Subsidiaries
and other Affiliates of the Borrower necessary for the Administrative Agent, the L/C Issuer, and the Lenders to comply with all
applicable OFAC Sanctions Programs, and (d) to the Borrower’s knowledge, neither the Borrower nor any of the Subsidiaries
or other Affiliates of the Borrower is, as of the Closing Date, named on the current OFAC SDN List.

 

Section
6.19. Other Agreements. Neither the Borrower nor any Subsidiary is in default under the terms of any covenant, indenture or
agreement of or affecting such Person or any of its Property, which default, if uncured, would reasonably be expected to have
a Material Adverse Effect.

 

Section
6.20. Solvency. The Borrower and its Subsidiaries are solvent, able to pay their debts as they become due, and have sufficient
capital to carry on their business and all businesses which are currently contemplated to be undertaken by them.

 

    	-49-

    	 

    

 

Section
6.21. No Default. No Default or Event of Default has occurred and is continuing.

 

Section
6.22. No Broker Fees. No broker’s or finder’s fee or commission will be payable with respect hereto or any of
the transactions contemplated thereby; and the Borrower hereby agrees to indemnify the Administrative Agent and the Lenders against,
and agrees that it will hold the Administrative Agent and the Lenders harmless from, any such claim, demand, or liability for
any such broker’s or finder’s fees alleged to have been incurred by the Borrower in connection herewith or therewith
and any out-of-pocket expenses (including reasonable attorneys’ fees) arising in connection with any such claim, demand,
or liability.

 

Section
6.23. Condition of Property; Casualties; Condemnation. Except to the extent that the same would not reasonably be expected
to result in a Material Adverse Effect, each Real Property, (a) is in good repair, working order and condition, normal wear and
tear excepted, (b) is free of structural defects, (c) is not subject to material deferred maintenance, (d) has and will have all
building systems contained therein in good repair, working order and condition, normal wear and tear excepted and (e) is not located
in a flood plain or flood hazard area, or if located in a flood plain or flood hazard area is covered by full replacement cost
(or otherwise in compliance with the Federal Flood Disaster Protection Act of 1973 or any successor statute thereto) flood insurance.
For the avoidance of doubt, in no event shall the representations contained in the foregoing clause (a) through (d) be deemed
to be applicable to any Property owned by a Tenant. None of the Real Properties is currently materially adversely affected as
a result of any fire, explosion, earthquake, flood, drought, windstorm, accident, strike or other labor disturbance, embargo,
requisition or taking of property or cancellation of contracts, permits or concessions by a Governmental Authority, riot, activities
of armed forces or acts of God or of any public enemy which is not in the process of being repaired. No condemnation or other
like proceedings that has had, or would reasonably be expected to result in, a Material Adverse Effect, is pending, served or,
to the knowledge of the Borrower, threatened against any Real Property. Promptly after the request of the Administrative Agent,
the Borrower shall deliver a current property condition report, in form and substance reasonably acceptable to Administrative
Agent from an independent engineering or architectural firm reasonably acceptable to Administrative Agent, with respect to any
Borrowing Base Property specified by Administrative Agent that, in the reasonable determination of the Administrative Agent, has
a maintenance or structural issue that would materially and adversely affect the value or use of such Eligible Property.

 

Section
6.24. Legal Requirements and Zoning. Except where the failure of any of the following to be true and correct would not have
a Material Adverse Effect, the use and operation of each Real Property constitutes a legal use (including legally nonconforming
use) under applicable zoning regulations (as the same may be modified by special use permits or the granting of variances) and
complies in all material respects with all Legal Requirements, and does not violate in any material respect any approvals, restrictions
of record or any material agreement affecting any such Real Property (or any portion thereof).

 

Section
6.25. REIT Status. The Borrower (a) is a REIT, (b) has not revoked its election to be a REIT, and (c) for its current “tax
year” as defined in the Code is and for all prior tax years subsequent to its election to be a REIT has been entitled to
a dividends paid deduction which meets the requirements of Section 857 of the Code.

 

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Section
6.26. EEA Financial Institution. No Borrower or Guarantor is an EEA Financial Institution.

 

Section
7. Conditions Precedent.

 

Section
7.1. All Credit Events. At the time of each Credit Event:

 

(a)
each of the representations and warranties set forth herein and in the other Loan Documents shall be and remain true and correct
in all material respects where not already qualified by materiality or Material Adverse Effect, otherwise in all respects as of
said time, except to the extent the same expressly relate to an earlier date, in which case the same shall be true and correct
in all material respects where not already qualified by materiality or Material Adverse Effect, otherwise in all respects as of
such earlier date;

 

(b)
no Default or Event of Default shall have occurred and be continuing or would occur as a result of such Credit Event and, after
giving effect to such extension of credit, the Credit Availability, as then determined and computed, shall be no less than $0;

 

(c)
in the case of a Borrowing, the Administrative Agent shall have received the notice required by Section 1.6 hereof, and the L/C
Issuer shall have received (i) in the case of the issuance of any Letter of Credit, a duly completed Application for such Letter
of Credit together with any fees called for by Section 2.1 hereof, and (ii) in the case of an extension or increase in the amount
of a Letter of Credit, a written request therefor, in a form acceptable to the L/C Issuer, together with any fees called for by
Section 2.1 hereof; and

 

(d)
such Credit Event shall not violate any order, judgment or decree of any court or other authority or any provision of law or regulation
applicable to the Administrative Agent, the L/C Issuer or any Lender (including, without limitation, Regulation U of the Board
of Governors of the Federal Reserve System) as then in effect.

 

Each
request for a Borrowing hereunder and each request for the issuance of, increase in the amount of, or extension of the expiration
date of, a Letter of Credit shall be deemed to be a representation and warranty by the Borrower on the date on such Credit Event
as to the facts specified in subsections (a) through (c), inclusive, of this Section 7.1; provided, however, that the Lenders
may continue to make advances under the Credit, in the sole discretion of the Lenders, notwithstanding the failure of the Borrower
to satisfy one or more of the conditions set forth above and any such advances so made shall not be deemed a waiver of any Default
or Event of Default or other condition set forth above that may then exist.

 

Section
7.2. Initial Credit Event. Before or concurrently with the initial Credit Event:

 

(a)
the Administrative Agent shall have received this Agreement duly executed by the Borrower, each Guarantor, and the Lenders;

 

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(b)
if requested by any Lender, the Administrative Agent shall have received, a Note payable to such Lender and duly executed Note
of the Borrower dated the Closing Date and otherwise in compliance with the provisions of Section 1.10 hereof;

 

(c)
the Administrative Agent shall have received evidence of insurance required to be maintained under the Loan Documents;

 

(d)
the Administrative Agent shall have received certified copies of the Borrower’s and each Guarantor’s articles of incorporation
and bylaws (or comparable organizational documents) and any amendments thereto;

 

(e)
the Administrative Agent shall have received certified copies of resolutions authorizing the execution, delivery and performance
by the Borrower and each Guarantor of this Agreement and the other Loan Documents to which it is a party and the consummation
of the transactions contemplated hereby and thereby, together with specimen signatures of the persons authorized to execute such
documents on the Borrower’s and each Guarantor’s behalf;

 

(f)
the Administrative Agent shall have received copies of the certificates of good standing for the Borrower and each Guarantor (dated
no earlier than thirty (30) days prior to the Closing Date) from the office of the secretary of the state (or similar office)
of its incorporation or organization and of each state in which an Initial Borrowing Base Property is located where its ownership,
lease or operation of properties or the conduct of its business requires such qualification, except to the extent that the failure
to do so would not have a Material Adverse Effect;

 

(g)
the Administrative Agent shall have received a list of the Borrower’s Authorized Representatives;

 

(h)
the Administrative Agent shall have received the initial fees called for by Section 2.1 hereof;

 

(i)
the capital and organizational structure of the Borrower and its Subsidiaries shall be reasonably satisfactory to the Administrative
Agent;

 

(j)
the Administrative Agent shall have received (i) a copy of the audited consolidated balance sheet of Borrower and its Subsidiaries
for the Fiscal Year ended September 30, 2014 and the consolidated statements of income, retained earnings, and cash flows of the
Borrower and its Subsidiaries for such Fiscal Year, and accompanying notes thereto, each in reasonable detail showing in comparative
form the figures for the previous Fiscal Year, (ii) a copy of the Borrower’s projections for the following two Fiscal Years
including consolidated projections of revenues, expenses and balance sheet on a quarter-by-quarter basis, with such projections
in reasonable detail prepared by the Borrower (which shall include a summary of all significant assumptions made in preparing
such projections), and (iii) an Available Amount Certificate showing the computation of the Available Amount with the inclusion
of the Initial Borrowing Base Properties, each in form and substance reasonably acceptable to the Administrative Agent;

 

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(k)
intentionally omitted;

 

(l)
the Administrative Agent shall have received financing statement, tax, and judgment lien search results against the Borrower and
each Guarantor evidencing the absence of Liens on its Property except for Permitted Liens or as otherwise permitted by Section
8.7 hereof;

 

(m)
the Administrative Agent shall have received a written opinion of counsel to the Borrower and each Guarantor, in form and substance
reasonably acceptable to the Administrative Agent;

 

(n)
the Administrative Agent shall have received a fully executed Internal Revenue Service Form W-9 for the Borrower and each Guarantor;
and the Administrative Agent and the Borrower shall have received the Internal Revenue Service Forms and any applicable attachments
required by Section 12.1(g)(ii);

 

(o)
the Administrative Agent shall have received such other agreements, instruments, documents, certificates, and opinions as the
Administrative Agent may reasonably request; and

 

(p)
the Administrative Agent and any Lender shall have received any information or materials reasonably required by the Administrative
Agent or such Lender in order to assist the Administrative Agent or such Lender in maintaining compliance with (i) the USA Patriot
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”) and (ii) any applicable
“know your customer” or similar rules and regulations.

 

Section
7.3. Eligible Property Additions and Deletions of Borrowing Base Properties.

 

(a)
As of the Closing Date, the Borrower represents and warrants to the Lenders and the Administrative Agent that the Initial Borrowing
Base Properties qualify as Eligible Properties and that the information provided on Schedule 1.1 is true and correct.

 

(b)
Upon not less than ten (10) Business Days prior written notice from the Borrower to the Administrative Agent, the Borrower may,
from time to time, request that a Real Property be added (subject to the other requirements for a Real Property qualifying as
an Eligible Property) as a Borrowing Base Property, and such Real Property shall be added as a Borrowing Base Property upon Administrative
Agent’s satisfaction that the following conditions have been met (collectively, the “Eligibility Conditions”):

 

(1)
the Administrative Agent shall have received an Available Amount Certificate including the addition of such Real Property to the
Borrowing Base Value on a pro forma basis;

 

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(2)
if the Subsidiary owning such Real Property is not a Guarantor (each, a “New Guarantor”) the Administrative
Agent shall have received a duly executed Additional Guarantor Supplement from such New Guarantor, together with the following:

 

(A)
the Administrative Agent shall have received copies of such New Guarantor’s articles of incorporation and bylaws (or comparable
organizational documents) and any amendments thereto, certified in each instance by its Secretary or Assistant Secretary;

 

(B)
the Administrative Agent shall have received copies of resolutions of such New Guarantor’s Board of Directors (or similar
governing body) authorizing the execution, delivery and performance of the Loan Documents to which it is a party and the consummation
of the transactions contemplated thereby, together with specimen signatures of the persons authorized to execute such documents
on such New Guarantor’s behalf, all certified in each instance by its Secretary or Assistant Secretary or other Authorized
Representative;

 

(C)
the Administrative Agent shall have received copies of the certificates of good standing for such New Guarantor from the office
of the secretary of the state (or similar office) of its incorporation or organization and of each state in which a Borrowing
Base Property is located; and

 

(D)
the Administrative Agent shall have received a fully executed Internal Revenue Service Form W-9 for such New Guarantor;

 

(3)
the Administrative Agent shall have received financing statement, tax, and judgment lien search results against any such New Guarantor
and such Real Property evidencing the absence of Liens, except for Permitted Liens or as otherwise permitted by Section 8.7 hereof;
and

 

(4)
the Administrative Agent shall have received a certificate evidencing compliance with the Borrowing Base Requirements on a pro
forma basis.

 

(c)
In the event that any Borrowing Base Property shall at any time cease to constitute an Eligible Property, (i) the Borrower shall,
as soon as reasonably possible after obtaining knowledge thereof, notify the Administrative Agent in writing of the same and (ii)
such Real Property shall automatically cease to constitute a Borrowing Base Property from the date that the same ceased to constitute
an Eligible Property until such time as the same again qualifies as an Eligible Property and is added by the Borrower as a Borrowing
Base Property in accordance with the preceding paragraph. Similarly, in the event that the Borrowing Base Requirements shall at
any time be violated, (A) the Borrower shall, within five (5) Business Days after obtaining knowledge of such failure, notify
the Administrative Agent in writing of the same, which written notice shall include a designation by the Borrower of any Real
Property or Real Properties to be deleted as Borrowing Base Properties in order to restore compliance with the Borrowing Base
Requirements, and (B) each such Real Property shall automatically cease to constitute a Borrowing Base Property from the date
of such written notice until such time as the same is again added by the Borrower as a Borrowing Base Property in accordance with
such preceding paragraph (provided that the addition does not result in a violation of the Borrowing Base Requirements).

 

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(d)
Upon not less than three (3) Business Days prior written notice from Borrower to the Administrative Agent, the Borrower may, from
time to time, designate that a Real Property be deleted as a Borrowing Base Property. Such notice shall be accompanied by an Available
Amount Certificate setting forth the components of the Available Amount as of the deletion of the designated Real Property as
a Borrowing Base Property, and Borrower’s certification in such detail as reasonably required by the Administrative Agent
that no Default or Event of Default is then continuing (including after taking into account the deletion of such Borrowing Base
Property), and Borrower’s certification in such detail as reasonably required by the Administrative Agent that no Default
or Event of Default is then continuing (including after taking into account the deletion of such Borrowing Base Property) and
that such deletion shall not result in a violation of the Borrowing Base Requirements. Upon the deletion of a Real Property as
a Borrowing Base Property (whether automatically or as a result of an election by the Borrower, as described above), the Guarantor
which owned such Real Property, but that does not otherwise own any other Borrowing Base Property, shall, upon the Borrower’s
written request, be released from its obligations under this Agreement or, if applicable, its separate Subsidiary Guaranty and
any other Loan Documents pursuant to lien releases and other documentation reasonably acceptable to the Borrower and the Administrative
Agent.

 

Section
8. Covenants.

 

The
Borrower and each Guarantor agrees that, so long as any credit is available to or in use by the Borrower hereunder, except to
the extent compliance in any case or cases is cured or waived in writing pursuant to the terms of Section 12.13 hereof:

 

Section
8.1. Maintenance of Existence. The Borrower shall, and shall cause each Guarantor to, preserve and maintain its existence,
except as otherwise provided in Section 8.10(c) hereof. The Borrower shall, and shall cause each Guarantor to, preserve and keep
in force and effect all licenses, permits, franchises, approvals, patents, trademarks, trade names, trade styles, copyrights,
and other proprietary rights necessary to the proper conduct of its business, except where the failure to do so would not reasonably
be expected to have a Material Adverse Effect.

 

Section
8.2. Maintenance of Properties. The Borrower shall, and shall cause each Guarantor to, maintain, preserve, and keep all of
its Property in working condition and order (ordinary wear and tear and damage by casualty excepted), and the Borrower and each
Guarantor shall, from time to time, make all necessary repairs, renewals, replacements, additions, and betterments to its Property
so that such Property shall at all times be fully preserved and maintained, except (i) to the extent that, in the reasonable business
judgment of such Person, any such Property is no longer necessary for the proper conduct of the business of such Person and (ii)
where the failure to do so would not reasonably be expected to have, either individually or in the aggregate, a Material Adverse
Effect. The Borrower shall not, and shall not permit any Guarantor to, amend, modify or terminate any material contract or agreement
to which it is a party if such amendment, modification or termination or waiver would reasonably be expected to cause a Material
Adverse Effect.

 

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Section
8.3. Taxes and Assessments. The Borrower and each Guarantor shall, or shall cause its Tenants to, duly pay and discharge all
Taxes, rates, assessments, fees, and governmental charges upon or against it or its Property, in each case before the same become
delinquent and before penalties accrue thereon, unless and to the extent that the same are being contested in good faith and by
appropriate proceedings which prevent enforcement of the matter under contest and adequate reserves established in accordance
with GAAP are provided therefor.

 

Section
8.4. Insurance. The Borrower shall insure and keep insured, and shall cause each Subsidiary to insure and keep insured, with
financially sound and reputable insurance companies all insurable Property owned by it which is of a character usually insured
by Persons similarly situated and operating like Properties against loss or damage from such hazards and risks, and in such amounts,
as are insured by Persons similarly situated and operating like Properties; and the Borrower shall insure, and shall cause each
Subsidiary to insure, such other hazards and risks (including, without limitation, business interruption, employers’ and
public liability risks) with financially sound and reputable insurance companies as and to the extent usually insured by Persons
similarly situated and conducting similar businesses. The Borrower shall, upon the request of the Administrative Agent, furnish
to the Administrative Agent and the Lenders a certificate setting forth in summary form the nature and extent of the insurance
maintained pursuant to this Section 8.4.

 

Section
8.5. Financial Reports. The Borrower shall, and shall cause each Subsidiary to, maintain proper books of records and accounts
reasonably necessary to prepare financial statements required to be delivered pursuant to this Section 8.5 in accordance with
GAAP and shall furnish to the Administrative Agent, each Lender, the L/C Issuer and each of their duly authorized representatives
such information respecting the business and financial condition of the Borrower and each Subsidiary as the Administrative Agent
or such Lender may reasonably request; and without any request, shall furnish to the Administrative Agent, the Lenders and L/C
Issuer:

 

(a)
as soon as available, and in any event no later than ninety (90) days after the last day each Fiscal Year of the Borrower, a copy
of the audited consolidated balance sheet of the Borrower and its Subsidiaries as of the last day of the Fiscal Year then ended
and the consolidated statements of income, retained earnings, and cash flows of the Borrower and its Subsidiaries for the Fiscal
Year then ended, and accompanying notes thereto, each in reasonable detail showing in comparative form the figures for the previous
Fiscal Year, accompanied by an unqualified opinion of PKF O’Connor Davies or any other independent public accountants of
recognized national standing, selected by the Borrower and Agent reasonably satisfactory to the Administrative, to the effect
that the consolidated financial statements have been prepared in accordance with GAAP and present fairly in all material respects
in accordance with GAAP the consolidated financial condition of the Borrower and its Subsidiaries as of the close of such Fiscal
Year and the results of their operations and cash flows for the Fiscal Year then ended and that an examination of such accounts
in connection with such financial statements has been made in accordance with generally accepted auditing standards;

 

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(b)
within the period provided in subsection (a) above, the written statement of the accountants who certified the audit report thereby
required that in the course of their audit they have obtained no knowledge of any Default or Event of Default, or, if such accountants
have obtained knowledge of any such Default or Event of Default, they shall disclose in such statement the nature and period of
the existence thereof;

 

(c)
as soon as available, and in any event no later than forty-five (45) days after the last day of each of the first three Fiscal
Quarters of each Fiscal Year of the Borrower (commencing with the Fiscal Quarter ending on December 31, 2015), a copy of the consolidated
balance sheet of the Borrower and its Subsidiaries as of the last day of such Fiscal Quarter and the consolidated statements of
income, retained earnings, and cash flows of the Borrower and its Subsidiaries for the Fiscal Quarter and for the Fiscal Year-to-date
period then ended, each in reasonable detail showing, in comparative form, the figures for the corresponding date and period in
the previous Fiscal Year, prepared by the Borrower in accordance with GAAP (subject to the absence of footnote disclosures and
year-end audit adjustments) and certified to by its chief financial officer or another officer of the Borrower reasonably acceptable
to the Administrative Agent;

 

(d)
together with the financial statements delivered pursuant to clauses (a) and (c) of this Section, an Available Amount Certificate
showing the computation of the Available Amount in reasonable detail as of the close of business on the last day of such Fiscal
Quarter, prepared by the Borrower and certified to by its chief financial officer or another officer of the Borrower reasonably
acceptable to the Administrative Agent;

 

(e)
with each of the financial statements delivered pursuant to subsections (a) and (c) above, a compliance certificate (“Compliance
Certificate”) in the form attached hereto as Exhibit E signed by the chief executive officer, chief financial officer,
treasurer or controller of the Borrower or another officer of the Borrower reasonably acceptable to the Administrative Agent to
the effect that to such officer’s knowledge and belief no Default or Event of Default has occurred during the period covered
by such statements or, if any such Default or Event of Default has occurred during such period, setting forth a description of
such Default or Event of Default and specifying the action, if any, taken or being taken by the Borrower or any Subsidiary to
remedy the same. Such certificate shall also set forth the calculations supporting such statements in respect of Section 8.20
hereof;

 

(f)
promptly after receipt thereof, any additional written reports, management letters or other detailed information contained in
writing concerning significant aspects of the Borrower’s, the Borrower’s or any Subsidiary’s operations and
financial affairs given to it by its independent public accountants and submitted to the board of directors (or similar governing
body) of the Borrower;

 

    	-57-

    	 

    

 

(g)
promptly after the sending or filing thereof, copies of each financial statement, report, notice or proxy statement sent by Borrower
or any Subsidiary to its stockholders or other equity holders, and copies of each regular, periodic or special report, registration
statement or prospectus (including all Form 10-K, Form 10-Q and Form 8-K reports) filed by the Borrower or any Subsidiary with
any securities exchange or the Securities and Exchange Commission or any successor agency;

 

(h)
promptly after receipt thereof, if any, a copy of each audit made by any regulatory agency of the books and records of the Borrower
or any Subsidiary or of notice of any material noncompliance with any applicable Legal Requirements relating to the Borrower or
any Subsidiary, or its business;

 

(i)
as soon as available, and in any event within sixty (60) days after the end of each Fiscal Year of the Borrower, a copy of the
Borrower’s projections for the following year including consolidated projections of revenues, expenses and balance sheet
on a quarter-by-quarter basis, with such projections in reasonable detail prepared by the Borrower and in form satisfactory to
the Administrative Agent (which shall include a summary of all significant assumptions made in preparing such projections);

 

(j)
notice of any Change of Control;

 

(k)
promptly after any knowledge thereof shall have come to the attention of any responsible officer of the Borrower, written notice
of (i) any threatened (in writing) or pending litigation or governmental or arbitration proceeding or labor controversy against
the Borrower or any Subsidiary or any of their Property which, if adversely determined, could reasonably be expected to have a
Material Adverse Effect, (ii) the occurrence of any other matter which would reasonably be expected to have a Material Adverse
Effect or (iii) the occurrence of any Default or Event of Default;

 

(l)
with each of the financial statements delivered pursuant to subsections (a) and (c) above, if there have been any changes to the
organizational list of the Borrower and the Subsidiaries during the most recently ended Fiscal Quarter, a revised organizational
list, together with a summary of the changes; and 

 

(m)
promptly after the request the Administrative Agent or the Required Lenders, any other information or report reasonably requested
by such Person(s); and

 

(n)
promptly and in any event within 5 Business Days after knowledge thereof, a written notice to the Administrative Agent of any
change of its Credit Rating from any Rating Agency.

 

Section
8.6. Inspection. The Borrower shall, and shall cause each Subsidiary to, permit the Administrative Agent, each Lender, the
L/C Issuer, and its duly authorized representatives and agents to visit and inspect any of its Property, corporate books, and
financial records, to examine and make copies of its books of accounts and other financial records, and to discuss its affairs,
finances, and accounts with, and to be advised as to the same by, its officers, employees and independent public accountants (and
by this provision the Borrower hereby authorizes such accountants to discuss with the Administrative Agent, such Lenders and L/C
Issuers (or any of their affiliates) the finances and affairs of the Borrower and its Subsidiaries) at such reasonable times as
the Administrative Agent may designate, with reasonable prior notice to the Borrower, provided, that the Borrower shall
not be required to pay the Administrative Agent for such inspections no more often than once in any period of twelve (12) consecutive
months unless an Event of Default has occurred and is continuing. The Administrative Agent shall use reasonable efforts to coordinate
inspections undertaken in accordance with this Section 8.6 to (i) minimize the administrative burden of such inspections on the
Borrower and their Subsidiaries, (ii) minimize the interference with the business of the Borrower and their Subsidiaries and (iii)
not disturb the occupancy of any Real Property by any Tenant.

 

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Section
8.7. Liens. The Borrower shall not, nor shall it permit any Guarantor to, create, incur or permit to exist any Lien of any
kind on any Property owned by any such Person, other than (a) Permitted Liens and (b) Liens existing on the First
Amendment Closing Date and listed in Schedule 8.7 hereto and any modification, replacement, renewal or extensions (but
not increases thereof).

 

Section
8.8. Investments, Acquisitions, Loans and Advances. The Borrower shall not, nor shall it permit any Subsidiary to (i) directly
or indirectly, make, retain or have outstanding any investments (whether through the purchase of stock or obligations or otherwise)
in any Person, real property or improvements on real property, or any loans, advances, lines of credit, mortgage loans or other
financings (including pursuant to sale/leaseback transactions) to any other Person, or (ii) acquire any real property, improvements
on real property or all or any substantial part of the assets or business of any other Person or division thereof; provided,
however, that the foregoing shall not apply to nor operate to prevent, with respect to the Borrower or any Subsidiary, any
of the following:

 

(a)
investment in Cash Equivalents;

 

(b)
investments existing or contemplated on the date hereof and listed on Schedule 8.8 hereto;

 

(c)
investments in derivatives and hedges made in the ordinary course of the such Person’s business in connection with managing
risk for which the Borrower, any Guarantor or any Subsidiary has actual exposure (and not for speculative purposes) including,
without limitation, Hedging Agreements;

 

(d)
investments in Permitted Acquisitions;

 

(e)
investments by the Borrower in one or more Guarantors or by a Guarantor in the Borrower or one or more other Guarantors;

 

(f)
investments in Mortgage Receivables not to exceed $5,000,000 in the aggregate;

 

    	-59-

    	 

    

 

(g)
investments in marketable securities available for sale; or

 

(h)
any other investments otherwise approved by the Required Lenders.

 

In
determining the amount of investments, acquisitions, loans, and advances permitted under this Section, investments and acquisitions
shall always be taken at the book value (as defined in GAAP) thereof, and loans and advances shall be taken at the principal amount
thereof then remaining unpaid.

 

Section
8.9. Mergers, Consolidations and Sales. Except with respect to an acquisition of an Eligible Property or otherwise with the
prior written consent of the Required Lenders (which shall not be unreasonably withheld, conditioned or delayed), the Borrower
shall not, nor shall it permit any Subsidiary to, be a party to any merger or consolidation, or sell, transfer, lease or otherwise
dispose of all or any part of its Property, including any disposition of Property as part of a sale and leaseback transaction,
or enter into any joint venture; provided, however, so long as no Default or Event of Default is then continuing, this
Section shall not apply to nor operate to prevent:

 

(a)
the sale, transfer, lease or other disposition of Property of the Borrower or any of its Subsidiaries to one another in the ordinary
course of its business;

 

(b)
the merger of any Subsidiary with and into the Borrower or any other Subsidiary, provided that, in the case of any merger
involving the Borrower, the Borrower is the entity surviving the merger;

 

(c)
the sale, transfer or other disposition of any tangible personal property in the ordinary course of business;

 

(d)
Leases of portions of any Real Property to Tenants;

 

(e)
any sale, transfer, lease or other disposition of Property of the Borrower or any Subsidiary (including any disposition of Property
as part of a sale and leaseback transaction) that is not otherwise expressly permitted by the foregoing clauses and for net consideration
that is not more than twenty percent (20%) of the Total Asset Value on the last day of the Fiscal Quarter immediately preceding
such sale, transfer, lease or other disposition;

 

(f)
the Borrower may issue or sell equity interests; provided that the Borrower shall remain in compliance with the definition
of Change of Control; and

 

(g)
to the extent constituting an Investment, transactions expressly permitted under Section 8.8, and the sale or disposition thereof,
including, without limitation, Borrower’s portfolio of securities investments.

 

Section
8.10. Maintenance of Subsidiaries. The Borrower shall not assign, sell or transfer, nor shall it permit any of its Subsidiaries
to issue, assign, sell or transfer, any shares of capital stock or other equity interests of any of the Borrower’s Subsidiaries
that are Guarantors to any Person that is not a wholly-owned direct or indirect subsidiary of the Borrower; provided, however,
that the foregoing shall not operate to prevent (a) Liens on the capital stock or other equity interests of Guarantors granted
to the Administrative Agent, (b) the issuance, sale and transfer to any Person of any shares of capital stock of a Guarantor solely
for the purpose of qualifying, and to the extent legally necessary to qualify, such person as a director of such Guarantor, and
(c) any transaction permitted by Section 8.9(b) above.

 

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Section
8.11. ERISA. The Borrower shall, and shall cause each Subsidiary to, promptly pay and discharge all obligations and liabilities
arising under ERISA of a character which if unpaid or unperformed could reasonably be expected to result in the imposition of
a Lien against any of its Property. The Borrower shall, and shall cause each Subsidiary to, promptly notify the Administrative
Agent and each Lender of: (a) the occurrence of any reportable event (as defined in Section 4043 of ERISA) with respect to a Plan,
(b) receipt of any notice from the PBGC of its intention to seek termination of any Plan or appointment of a trustee therefor,
(c) its intention to terminate or withdraw from any Plan, and (d) the occurrence of any event with respect to any Plan which would
result in the incurrence by the Borrower or any Subsidiary of any material liability, fine or penalty, or any material increase
in the contingent liability of the Borrower or any Subsidiary with respect to any post-retirement Welfare Plan benefit. The Borrower
shall not, and shall not permit any Subsidiary to, permit any of its respective assets to become or be deemed to be “plan
assets” within the meaning of ERISA, the Code or any of the respective regulations promulgated thereunder.

 

Section
8.12. Compliance with Laws. (a) The Borrower shall, and shall cause each Subsidiary to, comply in all respects with all Legal
Requirements applicable to or pertaining to its Property or business operations, where any such noncompliance, individually or
in the aggregate, would reasonably be expected to have a Material Adverse Effect.

 

(b)
The Borrower shall, and shall cause each Subsidiary to, at all times, do the following to the extent the failure to do so, individually
or in the aggregate, would reasonably be expected to have a Material Adverse Effect: (i) comply in all material respects with,
and maintain each of the Real Properties in compliance in all material respects with, all applicable Environmental Laws; (ii)
require that each Tenant of any of the Real Properties or any part thereof comply in all material respects with all applicable
Environmental Laws; (iii) obtain and maintain in full force and effect all material governmental approvals required by any applicable
Environmental Law for operations at each of the Real Properties; (iv) cure any material violation of applicable Environmental
Laws by it or at any of the Real Properties; (v) not allow the presence or operation at any of the Real Properties of any (1)
landfill or dump or (2) hazardous waste management facility or solid waste disposal facility as defined pursuant to RCRA or any
comparable state law; (vi) not manufacture, use, generate, transport, treat, store, release, dispose or handle any Hazardous Material
at any of the Properties except in the ordinary course of its business and in de minimis amounts; (vii) within ten (10)
Business Days after receipt of written notice of the same in connection with the Borrower, any Subsidiary or any of the Real Properties,
notify the Administrative Agent in writing of, and provide any reasonably requested documents with respect to, any of the following:
(1) any material liability for response or corrective action, natural resource damage or other harm pursuant to CERCLA, RCRA or
any comparable state law; (2) any material Environmental Claim; (3) any material violation of an Environmental Law or material
Release, threatened Release or disposal of a Hazardous Material; (4) any restriction on the ownership, occupancy, use or transferability
arising pursuant to any (x) Release, threatened Release or disposal of a Hazardous Material or (y) Environmental Law; or (5) any
environmental, natural resource, health or safety condition which would reasonably be expected to have a Material Adverse Effect;
(viii) conduct, at its expense, any investigation, study, sampling, testing, abatement, cleanup, removal, remediation or other
response action necessary to remove, remediate, clean up or abate any material Release, threatened Release or disposal of a Hazardous
Material as required to be performed by any applicable Environmental Law, (ix) abide by and observe any restrictions on the use
of the Real Properties imposed by any Governmental Authority as set forth in a deed or other instrument affecting the Borrower’s
or any Subsidiary’s interest therein; (x) promptly provide or otherwise make available to the Administrative Agent any reasonably
requested environmental record concerning the Real Properties which the Borrower or any Subsidiary possesses or can reasonably
obtain; and (xi) perform, satisfy, and implement any operation or maintenance actions required by any Governmental Authority or
Environmental Law or included in any no further action letter or covenant not to sue issued by any Governmental Authority under
any Environmental Law.

 

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Section
8.13. Compliance with OFAC Sanctions Programs. (a) The Borrower shall at all times comply with the requirements of all OFAC
Sanctions Programs applicable to the Borrower and shall cause each of its Subsidiaries to comply with the requirements of all
OFAC Sanctions Programs applicable to such Subsidiary.

 

(b)
The Borrower shall provide the Administrative Agent, the L/C Issuer, and the Lenders any information regarding the Borrower, its
Subsidiaries and each of its other Affiliates necessary for the Administrative Agent, the L/C Issuer, and the Lenders to comply
with all applicable OFAC Sanctions Programs; subject, however, in the case of Affiliates (other than the Subsidiaries), to the
Borrower’s ability to provide information applicable to them.

 

(c)
If the Borrower obtains actual knowledge or receives any written notice that the Borrower, any Subsidiary or any other Affiliate
of the Borrower is named on the then current OFAC SDN List (such occurrence, an “OFAC Event”), the Borrower
shall promptly (i) give written notice to the Administrative Agent, the L/C Issuer, and the Lenders of such OFAC Event, and (ii)
comply with all applicable Legal Requirements with respect to such OFAC Event (regardless of whether the party included on the
OFAC SDN List is located within the jurisdiction of the United States of America), including the OFAC Sanctions Programs, and
the Borrower hereby authorizes and consents to the Administrative Agent, the L/C Issuer, and the Lenders taking any and all steps
the Administrative Agent, the L/C Issuer, or the Lenders deem necessary, in their sole but reasonable discretion, to avoid violation
of all applicable Legal Requirements with respect to any such OFAC Event, including the requirements of the OFAC Sanctions Programs
(including the freezing and/or blocking of assets and reporting such action to OFAC).

 

Section
8.14. Burdensome Contracts With Affiliates. The Borrower shall not, nor shall it permit any Subsidiary to, enter into any
contract, agreement or business arrangement with any of its Affiliates on terms and conditions which are less favorable to the
Borrower or such Subsidiary than would be usual and customary in similar contracts, agreements or business arrangements between
Persons not affiliated with each other.

 

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Section
8.15.No Changes in Fiscal Year. The Fiscal Year of the Borrower and its Subsidiaries ends on September 30 of each year;
and the Borrower shall not, nor shall it permit any Subsidiary to, change its Fiscal Year from its present basis.

 

Section
8.16.Formation of Subsidiaries. Promptly upon the formation or acquisition of any Guarantor, the Borrower shall provide
the Administrative Agent and the Lenders notice thereof and timely comply with the requirements of Section 4.2 hereof.

 

Section
8.17.Change in the Nature of Business. The Borrower shall not, nor shall it permit any Subsidiary to, engage in any business
or activity if, as a result thereof, the general nature of the business of any Subsidiary would be changed in any material respect
from the general nature of the business engaged in by it as of the Closing Date.

 

Section
8.18.Use of Proceeds. The Borrower shall use the credit extended under this Agreement solely for the purposes set forth
in, or otherwise permitted by, Section 6.4 hereof.

 

Section
8.19.No Restrictions. Except as provided herein, the Borrower shall not, nor shall it permit any Guarantor to, directly
or indirectly create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of any
kind on the ability of the Borrower or any Guarantor to: (a) pay dividends or make any other distribution on any capital stock
or other equity interests owned by the Borrower or any other Subsidiary, (b) pay any indebtedness owed to the Borrower or any
other Subsidiary, or (c) guarantee the Obligations, Hedging Liability, and Bank Product Obligations and/or grant Liens on its
assets to the Administrative Agent.

 

Section
8.20.Financial Covenants.

 

(a)Maximum
Leverage Ratio. As of the last day of each Fiscal Quarter of the Borrower commencing with the Fiscal Quarter ending September
30, 2015, the Borrower shall not permit the Leverage Ratio to be greater than 0.60 to 1.00.

 

(b)Minimum
Debt Service Coverage Ratio. As of the last day of each Fiscal Quarter of the Borrower commencing with the Fiscal Quarter
ending September 30, 2015, the Borrower shall not permit the Debt Service Coverage Ratio to be less than 1.25 to 1.00.

 

(c)Maximum
Total Secured Recourse Indebtedness to Total Asset Value Ratio. The Borrower shall not, as of the last day of each Fiscal
Quarter of the Borrower commencing with the Fiscal Quarter ending September 30, 2015, permit the ratio of (i) Total Secured Recourse
Indebtedness as of the last day of such Fiscal Quarter to (ii) Total Asset Value as of such date to be greater than 0.10 to 1.00.

 

(d)Unsecured
Leverage Ratio. As of the last day of each Fiscal Quarter of the Borrower (i) occurring during the period commencing on the
Closing Date through and including December 31, 2016, the Borrower shall not permit the Unsecured Leverage Ratio to be greater
than 0.70 to 1.00 and (ii) during the period ending on March 31, 2017 or at any time thereafter, the Borrower shall not permit
the Unsecured Leverage Ratio to be greater than 0.60 to 1.00.

 

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(e)Maintenance
of Tangible Net Worth. The Borrower shall at all times maintain Tangible Net Worth of not less than the sum of (a) $475,000,000
plus (b) 75% of the aggregate net proceeds received by the Borrower or any of its Subsidiaries after the Closing Date in
connection with any offering of Stock or Stock Equivalents.

 

(f)Corporate
Debt Yield. As of the last day of each Fiscal Quarter of the Borrower commencing with the Fiscal Quarter ending September
30, 2015, the Borrower shall maintain a Corporate Debt Yield of not less than eleven percent (11%).

 

Section
8.21.Electronic Delivery of Certain Information. (a) Documents, including financial reports to be delivered pursuant to
Section 8.5 hereof, required to be delivered pursuant to this Agreement may be delivered by electronic communication and delivery,
including, the Internet, including the website maintained by the Securities and Exchange Commission, e-mail or intranet websites
to which the Administrative Agent and each Lender have access (including a commercial, third-party website or a website sponsored
or hosted by the Administrative Agent) provided that the foregoing shall not apply to (i) notices to any Lender (or the
L/C Issuer) pursuant to Section 1. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and
other communications to it hereunder by electronic delivery pursuant to procedures approved by it for all or particular notices
or communications. Documents or notices delivered electronically shall be deemed to have been delivered on the date and time on
which the Administrative Agent or the Borrower posts such documents or the documents become available on a commercial website
and the Borrower notifies the Administrative Agent of said posting by causing an e-mail notification to be sent to an e-mail address
specified from time to time by the Administrative Agent and provides a link thereto; provided if such notice or other communication
is not sent or posted during the normal business hours of the recipient on a Business Day, said posting date and time shall be
deemed to have commenced as of 9:00 a.m. Chicago time on the opening of business on the next Business Day for the recipient. Notwithstanding
anything contained herein, in every instance the Borrower shall be required to provide paper copies of the certificates required
by Sections 8.5(d) and 8.5(e) to the Administrative Agent. Except for the certificates required by Sections 8.5(d) and 8.5(e),
the Administrative Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents delivered
electronically, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request for
delivery.

 

(b)Documents
required to be delivered pursuant to Section 1 may be delivered electronically to a website provided for such purpose by the Administrative
Agent pursuant to the procedures provided to the Borrower by the Administrative Agent.

 

Section
8.22.REIT Status. The Borrower shall maintain its status as a REIT and all of the representations and warranties set forth
in Section 6.25 shall remain true and correct at all times.

 

Section
8.23.Restricted Payments. Borrower and its Subsidiaries shall be permitted to declare and pay distributions, dividends
or redemptions from time to time in amounts determined by the Borrower; provided, however if any Default described in Section
9.1(a), (j) or (k) or Event of Default has occurred and is continuing, the Borrower and its Subsidiaries may only pay dividends
as are necessary to maintain Monmouth REIT’s status as a real estate investment trust under applicable Legal Requirements.

 

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Section
8.24. Depository Bank. Within ninety (90) days of the Closing Date, the Borrower shall transfer its operating and depository
accounts to the Administrative Agent (or one of its Affiliates, as designated in writing by the Administrative Agent to the Borrower).
Within sixty (60) days of the date on which the Borrower transfers its operating and depository accounts to the Administrative
Agent pursuant to the immediately preceding sentence, the Borrower shall notify each Tenant that all payments due under Leases
shall be directed to such operating and depository accounts. Following such transfer and until the Termination Date, the Borrower
shall maintain its operating and depository accounts with the Administrative Agent (or such designated Affiliate). 

 

Section
8.25.Borrowing Base Requirements. The Borrower shall cause the Borrowing Base to at all times comply with the Borrowing
Base Requirements; provided that if the requirements of the definition of Borrowing Base Requirements are not met at any
time, then within five (5) Business Days after obtaining knowledge of such failure (i) the Borrower shall have cured such failure
in accordance with Section 7.3(c) hereof and (ii) the Borrower shall have delivered an updated Available Amount Certificate in
form and substance reasonably acceptable to the Administrative Agent evidencing the removal of any applicable Eligible Property’s
Borrowing Base Value from the Borrowing Base to the extent necessary to cause such failure to no longer exist.

 

Section
9.Events of Default and Remedies.

 

Section
9.1.Events of Default. Any one or more of the following shall constitute an “Event of Default”
hereunder:

 

(a)default
in the payment when due of (i) all or any part of the principal of any Loan (whether at the stated maturity thereof or at any
other time provided for in this Agreement, including a mandatory prepayment required by Section 1.8(b)), (ii) any Reimbursement
Obligation (except in any case in which a Loan has been made in the amount of the Reimbursement Obligations then due and the proceeds
thereof applied to pay such Reimbursement Obligations as contemplated by Section 1.2(c)) (iii) any interest for a period of three
(3) days after such payment is due or (iv) any fee or other Obligation payable hereunder or under any other Loan Document for
a period of five (5) Business Days after such payment is due;

 

(b)default
in the observance or performance of any covenant set forth in Sections 8.1, 8.5, 8.7, 8.8, 8.9, 8.10, 8.11, 8.20, 8.21, 8.23 or
8.25 hereof;

 

(c)default
in the observance or performance of any other provision hereof or of any other Loan Document which is not remedied within thirty
(30) days after the earlier of (i) the date on which such failure shall first become known to any Responsible Officer of the Borrower
and (ii) written notice thereof is given to the Borrower by the Administrative Agent (or such longer period of time, not to exceed
thirty (30) days, so long as Borrower and/or the applicable Subsidiary(ies) are diligently and expeditiously pursuing a cure for
same);

 

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(d)any
representation or warranty made herein or in any other Loan Document or in any certificate furnished to the Administrative Agent
or the Lenders pursuant hereto or thereto or in connection with any transaction contemplated hereby or thereby proves untrue in
any material respect (where not already qualified by materiality or Material Adverse Effect, otherwise in any respect) as of the
date of the issuance or making or deemed making thereof;

 

(e)(i)
any event occurs or condition exists (other than those described in subsections (a) through (d) above) which is specified as an
event of default under any of the other Loan Documents (and the related grace and/or cure period, if any, shall have expired),
or any of the Loan Documents shall for any reason not be or shall cease to be in full force and effect or is declared to be null
and void and a substitute document is not executed and delivered to Administrative Agent that is acceptable, in Administrative
Agent’s sole discretion, within three (3) Business Days; or (ii) the Borrower or any Guarantor takes any action for the
purpose of terminating, repudiating or rescinding any Loan Document executed by it or any of its obligations thereunder;

 

(f)default
(with expiration of any grace and/or cure periods related thereto) shall occur under any Indebtedness issued, assumed or guaranteed
by the Borrower or any Guarantor aggregating in excess of $15,000,000 in the aggregate, or a default (with expiration of any grace
and/or cure periods related thereto) shall occur with respect to any Indebtedness issued, assumed or guaranteed by the Borrower
or any Guarantor, and such default shall continue for a period of time sufficient to permit the acceleration of the maturity of
any such Indebtedness (whether or not such maturity is in fact accelerated) or any such Indebtedness shall not be paid when due
(whether by demand, lapse of time, acceleration or otherwise;

 

(g)any
judgment or judgments, writ or writs or warrant or warrants of attachment, or any similar process or processes, shall be entered
or filed against the Borrower or any Guarantor, or against any of its respective Property, in an aggregate amount in excess of
$15,000,000 (except to the extent fully covered by insurance pursuant to which the insurer has accepted liability therefor in
writing), and which remains undischarged, unvacated, unbonded or unstayed for a period of sixty (60) days;

 

(h)the
Borrower or any Guarantor, or any member of its Controlled Group, shall fail to pay when due an amount or amounts aggregating
in excess of $10,000,000 which it shall have become liable to pay to the PBGC or to a Plan under Title IV of ERISA; or notice
of intent to terminate a Plan or Plans having aggregate Unfunded Vested Liabilities in excess of $10,000,000 (collectively, a
“Material Plan”) shall be filed under Title IV of ERISA by the Borrower or any Guarantor, or any other member
of its Controlled Group, any plan administrator or any combination of the foregoing; or the PBGC shall institute proceedings under
Title IV of ERISA to terminate or to cause a trustee to be appointed to administer any Material Plan or a proceeding shall be
instituted by a fiduciary of any Material Plan against the Borrower or any Guarantor, or any member of its Controlled Group, to
enforce Section 515 or 4219(c)(5) of ERISA and such proceeding shall not have been dismissed within thirty (30) days thereafter;
or a condition shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating that any Material Plan
must be terminated;

 

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(i)any
Change of Control shall occur;

 

(j)the
Borrower or any Guarantor shall (i) have entered involuntarily against it an order for relief under the United States Bankruptcy
Code, as amended, (ii) not pay or admit in writing its inability to pay, its debts generally as they become due, (iii) make an
assignment for the benefit of creditors, (iv) apply for, seek, consent to or acquiesce in, the appointment of a receiver, custodian,
trustee, examiner, liquidator or similar official for it or any substantial part of its Property, (v) institute any proceeding
seeking to have entered against it an order for relief under the United States Bankruptcy Code, as amended, to adjudicate it insolvent,
or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts under
any law relating to bankruptcy, insolvency or reorganization or relief of debtors or fail to file an answer or other pleading
denying the material allegations of any such proceeding filed against it within sixty (60) days, (vi) take any board of director
or shareholder action (including the convening of a meeting) in furtherance of any matter described in parts (i) through (v) above,
or (vii) fail to contest in good faith any appointment or proceeding described in Section 9.1(k) hereof; and

 

(k)a
custodian, receiver, trustee, examiner, liquidator or similar official shall be appointed for the Borrower or any Guarantor, or
any substantial part of its Property, or a proceeding described in Section 9.1(j)(v) shall be instituted against the Borrower
or any Subsidiary, and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period
of sixty (60) days.

 

Section
9.2.Non-Bankruptcy Defaults. When any Event of Default (other than those described in subsection (j) or (k) of
Section 9.1 hereof with respect to the Borrower) has occurred and is continuing, the Administrative Agent shall, by written notice
to the Borrower: (a) if so directed by the Required Lenders, terminate the remaining Commitments and all other obligations of
the Lenders hereunder on the date stated in such notice (which may be the date thereof); (b) if so directed by the Required Lenders,
declare the principal of and the accrued interest on all outstanding Loans to be forthwith due and payable and thereupon all outstanding
Loans, including both principal and interest thereon, shall be and become immediately due and payable together with all other
amounts payable under the Loan Documents without further demand, presentment, protest or notice of any kind; and (c) if so directed
by the Required Lenders, demand that, with respect to each Letter of Credit then outstanding, the Borrower immediately either
(i) pay to the Administrative Agent the full amount then available for drawing thereunder, (ii) deliver to the Administrative
Agent Cash Collateral in an amount equal to 105% of the aggregate amount thereof or (iii) return or cause to be returned to L/C
Issuer such Letter of Credit for cancellation, and the Borrower agrees to immediately take such action and acknowledges and agrees
that the Lenders would not have an adequate remedy at law for failure by the Borrower to honor any such demand and that the Administrative
Agent, for the benefit of the Lenders, shall have the right to require the Borrower to specifically perform such undertaking whether
or not any drawings or other demands for payment have been made under any Letter of Credit. The Administrative Agent, after giving
notice to the Borrower pursuant to Section 9.1(c) or this Section 9.2, shall also promptly send a copy of such notice to the other
Lenders, but the failure to do so shall not impair or annul the effect of such notice.

 

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Section
9.3.Bankruptcy Defaults. When any Event of Default described in subsections (j) or (k) of Section 9.1 hereof with respect
to the Borrower has occurred and is continuing, all outstanding Loans shall immediately become due and payable together with all
other amounts payable under the Loan Documents without presentment, demand, protest or notice of any kind, the obligation of the
Lenders to extend further credit pursuant to any of the terms hereof shall immediately terminate and, with respect to each Letter
of Credit then outstanding, the Borrower immediately either (i) pay to the Administrative Agent the full amount then available
for drawing thereunder, (ii) deliver to the Administrative Agent Cash Collateral in an amount equal to 105% of the aggregate amount
thereof or (iii) return or cause to be returned to L/C Issuer such Letter of Credit for cancellation, the Borrower acknowledging
and agreeing that the Lenders would not have an adequate remedy at law for failure by the Borrower to honor any such demand and
that the Lenders, and the Administrative Agent on their behalf, shall have the right to require the Borrower to specifically perform
such undertaking whether or not any draws or other demands for payment have been made under any of the Letters of Credit.

 

Section
9.4.Collateral for Undrawn Letters of Credit. (a) If the prepayment of the amount available for drawing under any or all
outstanding Letters of Credit is required under Section 1.8(b), Section 1.14, Section 9.2 or Section 9.3 above, the Borrower shall
forthwith pay the amount required to be so prepaid, to be held by the Administrative Agent as provided in subsection (b) below.

 

(b)All
amounts prepaid pursuant to subsection (a) above shall be held by the Administrative Agent in one or more separate collateral
accounts (each such account, and the credit balances, properties, and any investments from time to time held therein, and any
substitutions for such account, any certificate of deposit or other instrument evidencing any of the foregoing and all proceeds
of and earnings on any of the foregoing being collectively called the “Collateral Account”) as security for,
and for application by the Administrative Agent (to the extent available) to, the reimbursement of any payment under any Letter
of Credit then or thereafter made by the L/C Issuer, and to the payment of the unpaid balance of all other Obligations (and to
all Hedging Liability and Bank Product Obligations). The Collateral Account shall be held in the name of and subject to the exclusive
dominion and control of the Administrative Agent for the benefit of the Administrative Agent, the Lenders, and the L/C Issuer.
If and when requested by the Borrower, the Administrative Agent shall invest funds held in the Collateral Account from time to
time in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United
States of America with a remaining maturity of one year or less, provided that the Administrative Agent is irrevocably
authorized to sell investments held in the Collateral Account when and as required to make payments out of the Collateral Account
for application to amounts then due and owing from the Borrower to the L/C Issuer, the Administrative Agent or the Lenders. If
the Borrower shall have made payment of all obligations referred to in subsection (a) above required under Section 1.8(b) hereof,
if any, at the request of the Borrower the Administrative Agent shall release to the Borrower amounts held in the Collateral Account
so long as at the time of the release and after giving effect thereto no Default or Event of Default is then continuing. If the
Borrower shall have made payment of all obligations referred to in subsection (a) above required under Section 9.2 or 9.3 hereof,
so long as no Letters of Credit, Commitments, Loans or other Obligations, Hedging Liability, or Bank Product Obligations remain
outstanding, at the request of the Borrower the Administrative Agent shall release to the Borrower any remaining amounts held
in the Collateral Account.

 

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(c)At
any time that there shall exist a Defaulting Lender, within five (5) calendar days following the written request of the Administrative
Agent or any L/C Issuer (with a copy to the Administrative Agent), the Borrower shall Cash Collateralize the L/C Issuers’
Fronting Exposure with respect to such Defaulting Lender (determined after giving effect to Section 1.14(a)(iv) and any Cash Collateral
provided by such Defaulting Lender) in an amount not less than the Minimum Collateral Amount.

 

(i)Grant
of Security Interest. The Borrower, and to the extent provided by any Defaulting Lender, such Defaulting Lender, hereby grant
to the Administrative Agent, for the benefit of the L/C Issuers, and agree to maintain, a first priority security interest in
all such Cash Collateral as security for such Defaulting Lender’s obligation to fund participations in respect of L/C Obligations,
to be applied pursuant to clause (ii) below. If at any time the Administrative Agent determines that Cash Collateral is subject
to any right or claim of any Person other than the Administrative Agent and the L/C Issuer as herein provided, or that the total
amount of such Cash Collateral is less than the Minimum Collateral Amount, the Borrower shall, promptly upon demand by the Administrative
Agent, pay or provide to the Administrative Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency
(after giving effect to any Cash Collateral provided by the Defaulting Lender).

 

(ii)Application.
Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under this Section 9.4 or Section
1.14 in respect of Letters of Credit shall be applied to the satisfaction of the Defaulting Lender’s obligation to fund
participations in respect of L/C Obligations (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued
on such obligation) for which the Cash Collateral was so provided, prior to any other application of such property as may otherwise
be provided for herein.

 

(iii)Termination
of Requirement. Cash Collateral (or the appropriate portion thereof) provided to reduce any L/C Issuer’s Fronting Exposure
shall no longer be required to be held as Cash Collateral pursuant to this Section 9.4(c) following (A) the elimination of the
applicable Fronting Exposure (including by the termination of Defaulting Lender status of the applicable Lender), or (B) the determination
by the Administrative Agent and the L/C Issuer that there exists excess Cash Collateral; provided that, subject to Section
1.14 the Person providing Cash Collateral and the L/C Issuer may agree (but shall not be obligated to) that Cash Collateral shall
be held to support future anticipated Fronting Exposure or other obligations and provided further that to the extent that
such Cash Collateral was provided by the Borrower, such Cash Collateral shall remain subject to the security interest granted
pursuant to the Loan Documents.

 

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Section
10.Change in Circumstances.

 

Section
10.1.Change of Law. Notwithstanding any other provisions of this Agreement or any other Loan Document, if at any time
any Change in Law makes it unlawful for any Lender to make or continue to maintain any Eurodollar Loans or to perform its obligations
as contemplated hereby, such Lender shall promptly give notice thereof to the Borrower and such Lender’s obligations to
make or maintain Eurodollar Loans under this Agreement shall be suspended until it is no longer unlawful for such Lender to make
or maintain Eurodollar Loans. The Borrower shall prepay promptly following demand the outstanding principal amount of any such
affected Eurodollar Loans, together with all interest accrued thereon and all other amounts then due and payable to such Lender
under this Agreement; provided, however, subject to all of the terms and conditions of this Agreement, the Borrower may
then elect to borrow the principal amount of the affected Eurodollar Loans from such Lender by means of Base Rate Loans from such
Lender, which Base Rate Loans shall not be made ratably by the Lenders but only from such affected Lender.

 

Section
10.2.Unavailability of Deposits or Inability to Ascertain, or Inadequacy of, LIBOR. If on or prior to the first day of
any Interest Period for any Borrowing of Eurodollar Loans:

 

(a)the
Administrative Agent determines that deposits in U.S. Dollars (in the applicable amounts) are not being offered to it in the interbank
eurodollar market for such Interest Period, or that by reason of circumstances affecting the interbank eurodollar market adequate
and reasonable means do not exist for ascertaining the applicable LIBOR, or

 

(b)the
Required Lenders advise the Administrative Agent that (i) LIBOR as determined by the Administrative Agent will not adequately
and fairly reflect the cost to such Lenders of funding their Eurodollar Loans for such Interest Period or (ii) that the making
or funding of Eurodollar Loans becomes impracticable,

 

then
the Administrative Agent shall forthwith give notice thereof to the Borrower and the Lenders, whereupon until the Administrative
Agent notifies the Borrower that the circumstances giving rise to such suspension no longer exist, the obligations of the Lenders
to make Eurodollar Loans shall be suspended.

 

Section
10.3.Increased Cost and Reduced Return. (a) If any Change in Law shall:

 

(i)subject
any Lender (or its Lending Office) or the L/C Issuer to any Tax (other than (A) Indemnified Taxes, (B) Taxes described in clauses
(b) through (d) of the definition of Excluded Taxes, and (C) Connection Income Taxes) with respect to its Eurodollar Loans, its
Notes, its Letter(s) of Credit, or its participation in any thereof, any Reimbursement Obligations owed to it or its obligation
to make Eurodollar Loans, issue a Letter of Credit, or to participate therein; or

 

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(ii)impose,
modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement (including, without
limitation, any such requirement imposed by the Board of Governors of the Federal Reserve System, but excluding with respect to
any Eurodollar Loans any such requirement included in an applicable Eurodollar Reserve Percentage) against assets of, deposits
with or for the account of, or credit extended by, any Lender (or its Lending Office) or the L/C Issuer or shall impose on any
Lender (or its Lending Office) or the L/C Issuer or on the interbank market any other condition affecting its Eurodollar Loans,
its Notes, its Letter(s) of Credit, or its participation in any thereof, any Reimbursement Obligation owed to it, or its obligation
to make Eurodollar Loans, or to issue a Letter of Credit, or to participate therein;

 

and
the result of any of the foregoing is to increase the cost to such Lender (or its Lending Office) or the L/C Issuer of making
or maintaining any Eurodollar Loan, issuing or maintaining a Letter of Credit, or participating therein, or to reduce the amount
of any sum received or receivable by such Lender (or its Lending Office) or the L/C Issuer under this Agreement or under any other
Loan Document with respect thereto, by an amount deemed by such Lender or L/C Issuer to be material, then, within 15 days after
demand by such Lender or L/C Issuer (with a copy to the Administrative Agent), the Borrower shall be obligated to pay to such
Lender or L/C Issuer such additional amount or amounts as will compensate such Lender or L/C Issuer for such increased cost or
reduction.

 

(b)If
any Lender or L/C Issuer determines that any Change in Law affecting such Lender or L/C Issuer or any lending office of such Lender
or such Lender’s or L/C Issuer’s holding company, if any, regarding capital or liquidity requirements, has or would
have the effect of reducing the rate of return on such Lender’s or L/C Issuer’s capital or on the capital of such
Lender’s or L/C Issuer’s holding company, if any, as a consequence of this Agreement, the Commitments of such Lender
or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by any L/C
Issuer, to a level below that which such Lender or L/C Issuer or such Lender’s or L/C Issuer’s holding company could
have achieved but for such Change in Law (taking into consideration such Lender’s or L/C Issuer’s policies and the
policies of such Lender’s or L/C Issuer’s holding company with respect to capital adequacy), then from time to time,
within 15 days after demand by such Lender or L/C Issuer (with a copy to the Administrative Agent), the Borrower shall pay to
such Lender or L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or L/C Issuer
or such Lender’s or L/C Issuer’s holding company for any such reduction suffered.

 

(c)A
certificate of a Lender or L/C Issuer claiming compensation under this Section 10.3 and setting forth the additional amount or
amounts to be paid to it hereunder shall be conclusive if reasonably determined. In determining such amount, such Lender or L/C
Issuer may use any reasonable averaging and attribution methods.

 

(d)The
Borrower shall not be required to compensate a Lender or L/C Issuer pursuant to this Section for any increased costs incurred
or reductions suffered more than six (6) months prior to the date that such Lender or L/C Issuer, as the case may be, notifies
the Borrower of the Change in Law giving rise to such increased costs or reductions, and of such Lender’s or L/C Issuer’s
intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions
is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof).

 

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Section
10.4.Lending Offices. Each Lender may, at its option, elect to make its Loans hereunder at the branch, office or affiliate
specified on the appropriate signature page hereof (each a “Lending Office”) for each type of Loan available
hereunder or at such other of its branches, offices or affiliates as it may from time to time elect and designate in a written
notice to the Borrower and the Administrative Agent. To the extent reasonably possible, a Lender shall designate an alternative
branch or funding office with respect to its Eurodollar Loans to reduce any liability of the Borrower to such Lender under Section
10.3 hereof or to avoid the unavailability of Eurodollar Loans under Section 10.2 hereof, so long as such designation is not otherwise
disadvantageous to the Lender.

 

Section
10.5.Discretion of Lender as to Manner of Funding. Notwithstanding any other provision of this Agreement, each Lender
shall be entitled to fund and maintain its funding of all or any part of its Loans in any manner it sees fit, it being understood,
however, that for the purposes of this Agreement all determinations hereunder with respect to Eurodollar Loans shall be made as
if each Lender had actually funded and maintained each Eurodollar Loan through the purchase of deposits in the interbank eurodollar
market having a maturity corresponding to such Loanメs Interest Period, and bearing an interest rate equal to LIBOR for
such Interest Period.

 

Section
11. The Administrative Agent.

 

Section
11.1.Appointment and Authorization of Administrative Agent. Each Lender and the L/C Issuer hereby appoints Bank of Montreal
as the Administrative Agent under the Loan Documents and hereby authorizes the Administrative Agent to take such action as Administrative
Agent on its behalf and to exercise such powers under the Loan Documents as are delegated to the Administrative Agent by the terms
thereof, together with such powers as are reasonably incidental thereto. The Lenders and L/C Issuer expressly agree that the Administrative
Agent is not acting as a fiduciary of the Lenders or the L/C Issuer in respect of the Loan Documents, the Borrower or otherwise,
and nothing herein or in any of the other Loan Documents shall result in any duties or obligations on the Administrative Agent
or any of the Lenders or L/C Issuer except as expressly set forth herein.

 

Section
11.2.Administrative Agent and its Affiliates. The Administrative Agent shall have the same rights and powers under this
Agreement and the other Loan Documents as any other Lender and may exercise or refrain from exercising such rights and power as
though it were not the Administrative Agent, and the Administrative Agent and its affiliates may accept deposits from, lend money
to, and generally engage in any kind of business with the Borrower or any Affiliate of the Borrower as if it were not the Administrative
Agent under the Loan Documents. The term “Lender” as used herein and in all other Loan Documents, unless the
context otherwise clearly requires, includes the Administrative Agent in its capacity as a Lender (if applicable).

 

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Section
11.3.Action by Administrative Agent. If the Administrative Agent receives from the Borrower a written notice of an Event
of Default pursuant to Section 8.5(k) hereof, the Administrative Agent shall promptly give each of the Lenders and L/C Issuer
written notice thereof. The obligations of the Administrative Agent under the Loan Documents are only those expressly set forth
therein. Without limiting the generality of the foregoing, the Administrative Agent shall not be required to take any action hereunder
with respect to any Default or Event of Default, except as expressly provided in Sections 9.2 and 9.5. Upon the occurrence of
an Event of Default, unless and until the Required Lenders give such direction, the Administrative Agent may (but shall not be
obligated to) take or refrain from taking such actions as it deems appropriate and in the best interest of all the Lenders and
L/C Issuer. In no event, however, shall the Administrative Agent be required to take any action in violation of applicable Legal
Requirements or of any provision of any Loan Document, and the Administrative Agent shall in all cases be fully justified in failing
or refusing to act hereunder or under any other Loan Document unless it first receives any further assurances of its indemnification
from the Lenders that it may require, including prepayment of any related expenses and any other protection it requires against
any and all costs, expenses, and liabilities which may be incurred by it by reason of taking or continuing to take any such action.
The Administrative Agent shall be entitled to assume that no Default or Event of Default exists unless notified in writing to
the contrary by a Lender, the L/C Issuer, or the Borrower. In all cases in which the Loan Documents do not require the Administrative
Agent to take specific action, the Administrative Agent shall be fully justified in using its discretion in failing to take or
in taking any action thereunder. Any instructions of the Required Lenders, or of any other group of Lenders called for under the
specific provisions of the Loan Documents, shall be binding upon all the Lenders and the holders of the Obligations.

 

Section
11.4.Consultation with Experts. The Administrative Agent may consult with legal counsel, independent public accountants,
and other experts selected by it and shall not be liable for any action taken or omitted to be taken by it in good faith in accordance
with the advice of such counsel, accountants or experts.

 

Section
11.5.Liability of Administrative Agent; Credit Decision. Neither the Administrative Agent nor any of its directors, officers,
agents or employees shall be liable for any action taken or not taken by it in connection with the Loan Documents: (i) with the
consent or at the request of the Required Lenders (or of any other group of Lenders called for under the specific provisions of
the Loan Documents) or (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of competent
jurisdiction by final non-appealable judgment. Neither the Administrative Agent nor any of its directors, officers, agents or
employees shall be responsible for or have any duty to ascertain, inquire into or verify: (i) any statement, warranty or representation
made in connection with this Agreement, any other Loan Document or any Credit Event; (ii) the performance or observance of any
of the covenants or agreements of the Borrower or any Subsidiary contained herein or in any other Loan Document; (iii) the satisfaction
of any condition specified in Section 7 hereof, except receipt of items required to be delivered to the Administrative Agent;
or (iv) the validity, effectiveness, genuineness, enforceability, perfection, value, worth or collectability hereof or of any
other Loan Document or of any other documents or writing furnished in connection with any Loan Document; and the Administrative
Agent makes no representation of any kind or character with respect to any such matter mentioned in this sentence. The Administrative
Agent may execute any of its duties under any of the Loan Documents by or through employees, agents, and attorneys-in-fact and
shall not be answerable to the Lenders, the L/C Issuer, the Borrower, or any other Person for the default or misconduct of any
such agents or attorneys-in-fact selected with reasonable care. The Administrative Agent shall not incur any liability by acting
in reliance upon any notice, consent, certificate, other document or statement (whether written or oral) believed by it to be
genuine or to be sent by the proper party or parties. In particular and without limiting any of the foregoing, the Administrative
Agent shall have no responsibility for confirming the accuracy of any Compliance Certificate or other document or instrument received
by it under the Loan Documents. The Administrative Agent may treat the payee of any Obligation as the holder thereof until written
notice of transfer shall have been filed with the Administrative Agent signed by such payee in form satisfactory to the Administrative
Agent. Each Lender and L/C Issuer acknowledges that it has independently and without reliance on the Administrative Agent or any
other Lender or L/C Issuer, and based upon such information, investigations and inquiries as it deems appropriate, made its own
credit analysis and decision to extend credit to the Borrower in the manner set forth in the Loan Documents. It shall be the responsibility
of each Lender and L/C Issuer to keep itself informed as to the creditworthiness of the Borrower and its Subsidiaries, and the
Administrative Agent shall have no liability to any Lender or L/C Issuer with respect thereto.

 

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Section
11.6.Indemnity. The Lenders shall ratably, in accordance with their respective Percentages, indemnify and hold the Administrative
Agent, and its directors, officers, employees, agents, and representatives harmless from and against any liabilities, losses,
costs or expenses suffered or incurred by it under any Loan Document or in connection with the transactions contemplated thereby,
regardless of when asserted or arising, except to the extent they are promptly reimbursed for the same by the Borrower and except
to the extent that any event giving rise to a claim was caused by the gross negligence or willful misconduct of the party seeking
to be indemnified as determined by a court of competent jurisdiction by final non-appealable judgment. The obligations of the
Lenders under this Section 11.6 shall survive termination of this Agreement. The Administrative Agent shall be entitled to offset
amounts received for the account of a Lender under this Agreement against unpaid amounts due from such Lender to the Administrative
Agent or any L/C Issuer (whether as fundings of participations, indemnities or otherwise, and with any amounts offset for the
benefit of the Administrative Agent to be held by it for its own account and with any amounts offset for the benefit of a L/C
Issuer to be remitted by the Administrative Agent to or for the account of such L/C Issuer), but shall not be entitled to offset
against amounts owed to the Administrative Agent or any L/C Issuer by any Lender arising outside of this Agreement and the other
Loan Documents.

 

Section
11.7.Resignation and Removal of Administrative Agent and Successor Administrative Agent. (a) The Administrative Agent
may resign at any time by giving written notice thereof to the Lenders, the L/C Issuer, and the Borrower. Upon any such resignation
of the Administrative Agent, the Required Lenders shall have the right to appoint a successor Administrative Agent, which shall
so long as no Event of Default has occurred and is continuing, be reasonably acceptable to the Borrower. If no successor Administrative
Agent shall have been so appointed by the Required Lenders, and shall have accepted such appointment, within 30 days after the
retiring Administrative Agent’s giving of notice of resignation then the retiring Administrative Agent may, on behalf of
the Lenders, appoint a successor Administrative Agent, which shall so long as no Event of Default has occurred and is continuing,
be reasonably acceptable to the Borrower, and which may be any Lender hereunder or any commercial bank, or an Affiliate of a commercial
bank, having an office in the United States of America and having a combined capital and surplus of at least $200,000,000.

 

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(b)
If the Person serving as Administrative Agent is a Defaulting Lender pursuant to clause (d) of the definition thereof, the Required
Lenders shall have the right to appoint a successor Administrative Agent, which shall so long as no Event of Default has occurred
and is continuing, be reasonably acceptable to the Borrower. If no such successor shall have been so appointed by the Required
Lenders and shall have accepted such appointment within 30 days (or such earlier day as shall be agreed by the Required Lenders)
(the “Removal Effective Date”), then such removal shall nonetheless become effective in accordance with such
notice on the Removal Effective Date.

 

(c)
Upon the acceptance of its appointment as the Administrative Agent hereunder, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights and duties of the prior Administrative Agent under the Loan Documents, and the
prior Administrative Agent shall be discharged from its duties and obligations thereunder. After any Administrative Agent’s
resignation or removal hereunder as Administrative Agent, the provisions of this Section 11 and all protective provisions of the
other Loan Documents shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative
Agent, but no successor Administrative Agent shall in any event be liable or responsible for any actions of its predecessor. If
the Administrative Agent resigns or is removed and no successor is appointed, the rights and obligations of such Administrative
Agent shall be automatically assumed by the Required Lenders and the Borrower shall be directed to make all payments due each
Lender and L/C Issuer hereunder directly to such Lender or L/C Issuer.

 

Section
11.8.L/C Issuer. The L/C Issuer shall act on behalf of the Lenders with respect to any Letters of Credit issued by it
and the documents associated therewith. The L/C Issuer shall have all of the benefits and immunities (i) provided to the Administrative
Agent in this Section 11 with respect to any acts taken or omissions suffered by the L/C Issuer in connection with Letters of
Credit issued by it or proposed to be issued by it and the Applications pertaining to such Letters of Credit made or to be made
hereunder as fully as if the term “Administrative Agent”, as used in this Section 11, included the L/C Issuer with
respect to such acts or omissions and (ii) as additionally provided in this Agreement with respect to such L/C Issuer, as applicable.

 

Section
11.9.Hedging Liability and Bank Product Obligations. By virtue of a Lender’s execution of this Agreement or an assignment
agreement pursuant to Section 12.12 hereof, as the case may be, any Affiliate of such Lender with whom the Borrower or any Subsidiary
has entered into an agreement creating Hedging Liability or Bank Product Obligations shall be deemed a Lender party hereto for
purposes of any reference in a Loan Document to the parties for whom the Administrative Agent is acting, it being understood and
agreed that the rights and benefits of such Affiliate under the Loan Documents consist exclusively of such Affiliate’s right
to share in payments and collections out of the Subsidiary Guaranties as more fully set forth in Section 3.1 hereof. In connection
with any such distribution of payments and collections, or any request for the release of the Subsidiary Guaranties and the Administrative
Agent’s Liens in connection with the termination of the Commitments and the payment in full of the Obligations, the Administrative
Agent shall be entitled to assume no amounts are due to any Lender or its Affiliate with respect to Hedging Liability or Bank
Product Obligations unless such Lender has notified the Administrative Agent in writing of the amount of any such liability owed
to it or its Affiliate prior to such distribution or payment or release of Subsidiary Guaranties.

 

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Section
11.10.Designation of Additional Agents. The Administrative Agent shall have the continuing right, for purposes hereof,
at any time and from time to time to designate one or more of the Lenders (and/or its or their Affiliates) as “syndication
agents,” “documentation agents,” “book runners,” “lead arrangers,” “arrangers”
or other designations for purposes hereto, but such designation shall have no substantive effect, and such Lenders and their Affiliates
shall have no additional powers, duties or responsibilities as a result thereof.

 

Section
12.Miscellaneous.

 

Section
12.1.Taxes.

 

(a)Certain
Defined Terms. For purposes of this Section, the term “Lender” includes the L/C Issuer and the term “applicable
law” includes FATCA.

 

(b)Payments
Free of Taxes. Any and all payments by or on account of any obligation of the Borrower under any Loan Document shall be made
without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law (as determined in
the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment
by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall
timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and,
if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction
or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section)
the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been
made.

 

(c)Payment
of Other Taxes by the Borrower. The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable
law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

 

(d)Indemnification
by the Borrower. The Borrower shall indemnify each Recipient, within ten (10) Business Days after demand therefor, for the
full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under
this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any
reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered
to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on
behalf of a Lender, shall be conclusive absent manifest error.

 

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(e)Indemnification
by the Lenders. Each Lender shall severally indemnify the Administrative Agent, within ten (10) Business Days after demand
therefor, for (i) any Indemnified Taxes or Other Taxes attributable to such Lender (but only to the extent that the Borrower has
not already indemnified the Administrative Agent for such Indemnified Taxes or Other Taxes and without limiting the obligation
of the Borrower to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section
12.11 relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each
case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising
therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall
be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts
at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any
other source against any amount due to the Administrative Agent under this subsection (e).

 

(f)Evidence
of Payments. As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this
Section, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory
to the Administrative Agent.

 

(g)Status
of Lenders. (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments
made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested
by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower
or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In
addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation
prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or
the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.
Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation
(other than such documentation set forth in Section 12.1(g)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the
Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed
cost or expense or would materially prejudice the legal or commercial position of such Lender.

 

(ii)Without
limiting the generality of the foregoing,

 

(A)any
Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such
Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or
the Administrative Agent), executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding
tax;

 

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(B)any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in
such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent),
whichever of the following is applicable:

 

(i)in
the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect
to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN establishing an exemption from, or reduction
of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any
other applicable payments under any Loan Document, IRS Form W-8BEN establishing an exemption from, or reduction of, U.S. federal
withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;

 

(ii)executed
originals of IRS Form W-8ECI;

 

(iii)in
the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x)
a certificate substantially in the form of Exhibit J-1 to the effect that such Foreign Lender is not a “bank” within
the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of
Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code
(a “U.S. Tax Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN; or

 

(iv)to
the extent a Foreign Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI,
IRS Form W-8BEN, a U.S. Tax Compliance Certificate substantially in the form of Exhibit J-2 or Exhibit J-3, IRS Form W-9, and/or
other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership
and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign
Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit J-4 on behalf of each such direct and
indirect partner;

 

(C)any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in
such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent),
executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S.
federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law
to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

 

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(D)if
a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender
were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b)
of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed
by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed
by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably
requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply
with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA
or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (D), “FATCA”
shall include any amendments made to FATCA after the date of this Agreement.

 

Each
Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect,
it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal
inability to do so.

 

(h)Treatment
of Certain Refunds. If any party determines, in its sole discretion exercised in good faith, that it has received a refund
of any Taxes as to which it has been indemnified pursuant to this Section (including by the payment of additional amounts pursuant
to this Section), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments
made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes)
of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect
to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the
amount paid over pursuant to this subsection (h) (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority.
Notwithstanding anything to the contrary in this subsection (h), in no event will the indemnified party be required to pay any
amount to an indemnifying party pursuant to this subsection (h) the payment of which would place the indemnified party in a less
favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification had not been
deducted, withheld or otherwise imposed and the indemnification payments or additional amounts giving rise to such refund had
never been paid. This subsection shall not be construed to require any indemnified party to make available its Tax returns (or
any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

 

(i)Survival.
Each party’s obligations under this Section shall survive the resignation or replacement of the Administrative Agent
or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction
or discharge of all obligations under any Loan Document.

 

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Section
12.2.Other Taxes. The Borrower agrees to pay promptly following demand, and indemnify and hold the Administrative Agent,
the Lenders, and the L/C Issuer harmless from, any Other Taxes payable in respect of this Agreement or any other Loan Document,
including interest and penalties, in the event any such taxes are assessed, irrespective of when such assessment is made and whether
or not any credit is then in use or available hereunder.

 

Section
12.3.No Waiver, Cumulative Remedies. No delay or failure on the part of the Administrative Agent, the L/C Issuer, or any
Lender, or on the part of the holder or holders of any of the Obligations, in the exercise of any power or right under any Loan
Document shall operate as a waiver thereof or as an acquiescence in any default, nor shall any single or partial exercise of any
power or right preclude any other or further exercise thereof or the exercise of any other power or right. The rights and remedies
hereunder of the Administrative Agent, the L/C Issuer, the Lenders, and of the holder or holders of any of the Obligations are
cumulative to, and not exclusive of, any rights or remedies which any of them would otherwise have.

 

Section
12.4.Non-Business Days. If any payment hereunder becomes due and payable on a day which is not a Business Day, the due
date of such payment shall be extended to the next succeeding Business Day on which date such payment shall be due and payable.
In the case of any payment of principal falling due on a day which is not a Business Day, interest on such principal amount shall
continue to accrue during such extension at the rate per annum then in effect, which accrued amount shall be due and payable on
the next scheduled date for the payment of interest.

 

Section
12.5.Survival of Representations. All representations and warranties made herein or in any other Loan Document or in certificates
given pursuant hereto or thereto shall survive the execution and delivery of this Agreement and the other Loan Documents, and
shall continue in full force and effect with respect to the date as of which they were made as long as any credit is in use or
available hereunder.

 

Section
12.6.Survival of Indemnities. All indemnities and other provisions relative to reimbursement to the Lenders and
L/C Issuer of amounts sufficient to protect the yield of the Lenders and L/C Issuer with respect to the Loans and Letters of Credit,
including, but not limited to, Sections 1.11, 10.3, and 12.15 hereof, shall survive the termination of this Agreement and the
other Loan Documents and the payment of the Obligations.

 

Section
12.7.Sharing of Set-Off. Each Lender agrees with each other Lender a party hereto that if such Lender shall receive and
retain any payment, whether by set-off or application of deposit balances or otherwise, on any of the Loans or Reimbursement Obligations
in excess of its ratable share of payments on all such Obligations then outstanding to the Lenders, then such Lender shall purchase
for cash at face value, but without recourse, ratably from each of the other Lenders such amount of the Loans or Reimbursement
Obligations, or participations therein, held by each such other Lenders (or interest therein) as shall be necessary to cause such
Lender to share such excess payment ratably with all the other Lenders; provided, however, that if any such purchase is
made by any Lender, and if such excess payment or part thereof is thereafter recovered from such purchasing Lender, the related
purchases from the other Lenders shall be rescinded ratably and the purchase price restored as to the portion of such excess payment
so recovered, but without interest. For purposes of this Section 12.7, amounts owed to or recovered by the L/C Issuer in connection
with Reimbursement Obligations in which Lenders have been required to fund their participation shall be treated as amounts owed
to or recovered by the L/C Issuer as a Lender hereunder.

 

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Section
12.8.Notices. Except as otherwise specified herein, all notices, requests, demands and other communications hereunder
and under the other Loan Documents shall be in writing (including, without limitation, notice by telecopy) and shall be given
to the relevant party at its address or facsimile number set forth below, or such other address or facsimile number as such party
may hereafter specify by notice to the Administrative Agent and the Borrower given by courier, by United States certified or registered
mail, by telecopy or by other telecommunication device capable of creating a written record of such notice and its receipt. Notices
under the Loan Documents to any Lender shall be addressed to its address or facsimile number set forth on its Administrative Questionnaire;
and notices under the Loan Documents to the Borrower, any Guarantor, the Administrative Agent, or L/C Issuer shall be addressed
to its respective address or facsimile number set forth below:

 

	to
                                         the Borrower or any Guarantor:

         

        Monmouth
        Real Estate Investment Corporation

        3499
        Route 9 North Suite 3-C Freehold, New Jersey 07728

        Attention:
        Chief Financial Officer and Legal Counsel Fax: (732) 577-9981

         

        with
        a copy to:

         

        Baker,
        Donelson, Bearman, Caldwell & Berkowitz, PC

        211
        Commerce, Suite 800

        Baker
        Donelson Center

        Nashville,
        Tennessee 37201

        Attention:
        Matthew T. Harris Fax: (615) 726-5759
	 	to
                                         the Administrative Agent or L/C Issuer:

         

        Bank
        of Montreal

        100
        High Street, 26th Floor

        Boston,
        MA 02110

        Attention:Lloyd
        Baron

        Telephone:(617)
        960-2372

        Email:lloyd.baron@bmo.com

 

Each
such notice, request or other communication shall be effective (i) if given by facsimile, when such facsimile is delivered to
the facsimile number specified in this Section 12.8 or in the relevant Administrative Questionnaire and a confirmation of such
facsimile has been received by the sender, (ii) if given by mail, upon receipt or first refusal of delivery or (iii) if given
by any other means, when delivered at the addresses specified in this Section 12.8 or in the relevant Administrative Questionnaire;
provided that any notice given pursuant to Section 1 hereof shall be effective only upon receipt.

 

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Section
12.9.Counterparts; Integration; Effectiveness.

 

(a)Counterparts;
Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts),
each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement
and the other Loan Documents, and any separate letter agreements with respect to fees payable to the Administrative Agent, constitute
the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 7.2, this Agreement shall
become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received
counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed
counterpart of a signature page of this Agreement by facsimile or in electronic (e.g., “pdf” or “tif”)
format shall be effective as delivery of a manually executed counterpart of this Agreement. For purposes of determining compliance
with the conditions specified in Section 7.2 hereof, each Lender and L/C Issuer that has signed this Agreement shall be deemed
to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to a Lender or L/C Issuer unless the Administrative Agent shall have received
notice from such Lender or L/C Issuer prior to the Closing Date specifying its objection thereto.

 

(b)Electronic
Execution of Assignments. The words “execution,” “signed,” “signature,” and words of like
import in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of records in electronic
form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use
of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Legal Requirements,
including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and
Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

 

Section
12.10.Successors and Assigns. This Agreement shall be binding upon the Borrower and the Guarantors and their successors
and assigns, and shall inure to the benefit of the Administrative Agent, the L/CᅠIssuer, and each of the Lenders, and the
benefit of their respective successors and assigns, including any subsequent holder of any of the Obligations. The Borrower and
the Guarantors may not assign any of their rights or obligations under any Loan Document without the written consent of all of
the Lenders and, with respect to any Letter of Credit or the Application therefor, the L/C Issuer.

 

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Section
12.11. Participants. Each Lender shall have the right at its own cost to grant participations (to be evidenced by one or more
agreements or certificates of participation) in the Loans made and Reimbursement Obligations and/or Commitments held by such Lender
at any time and from time to time to one or more other Persons; provided that no such participation shall relieve any Lender
of any of its obligations under this Agreement, and, provided, further that no such participant shall have any rights under
this Agreement except as provided in this Section 12.11, and the Administrative Agent shall have no obligation or responsibility
to such participant. Any agreement pursuant to which such participation is granted shall provide that the granting Lender shall
retain the sole right and responsibility to enforce the obligations of the Borrower under this Agreement and the other Loan Documents
including, without limitation, the right to approve any amendment, modification or waiver of any provision of the Loan Documents,
except that such agreement may provide that such Lender will not agree to any modification, amendment or waiver of the Loan Documents
that would reduce the amount of or postpone any fixed date for payment of any Obligation in which such participant has an interest.
Any party to which such a participation has been granted shall have the benefits of Section 1.11 and Section 10.3 hereof. The
Borrower and each Guarantor authorizes each Lender to disclose to any participant or prospective participant under this Section
12.11 any financial or other information pertaining to each Guarantor, the Borrower or any Subsidiary, provided that such
participant or prospective participant shall be subject to the provisions of Section 12.25.

 

Section
12.12. Assignments. (a) Any Lender may at any time assign to one or more Eligible Assignees all or a portion of such Lender’s
rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it);
provided that any such assignment shall be subject to the following conditions:

 

(i)
Minimum Amounts. (A) In the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment
and the Loans and participation interest in L/C Obligations at the time owing to it or in the case of an assignment to a Lender,
an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and (B) in any case not described in subsection
(a)(i)(A) of this Section 12.12, the aggregate amount of the Commitment (which for this purpose includes Loans and participation
interest in L/C Obligations outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding
balance of the Loans and participation interest in L/C Obligations of the assigning Lender subject to each such assignment (determined
as of the date the Assignment and Acceptance with respect to such assignment is delivered to the Administrative Agent or, if “Effective
Date” is specified in the Assignment and Acceptance, as of the Effective Date specified in such Assignment and Acceptance)
shall not be less than $5,000,000 unless each of the Administrative Agent and, so long as no Event of Default has occurred and
is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed);

 

(ii)
Proportionate Amounts. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning
Lender’s rights and obligations under this Agreement with respect to the Loans or the Commitments assigned.

 

(iii)
Required Consents. No consent shall be required for any assignment except to the extent required by Section 12.12(a)(i)(B)
and, in addition:

 

(a)
the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) an Event of
Default has occurred and is continuing at the time of such assignment or (y) such assignment is to a Lender, an Affiliate of a
Lender or an Approved Fund; provided that the Borrower shall be deemed to have consented to any such assignment unless
it shall object thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice
thereof;

 

    	-83-

    	 

    

 

(b)
the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required if such assignment
is to a Person that is not a Lender with a Commitment, an Affiliate of such Lender or an Approved Fund with respect to such Lender;
and

 

(c)
the consent of the L/C Issuer (such consent not to be unreasonably withheld or delayed) shall be required for any assignment that
increases the obligation of the assignee to participate in exposure under one or more Letters of Credit (whether or not then outstanding).

 

(iv)
Assignment and Acceptance. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment
and Acceptance, together with a processing and recordation fee of $3,500 (to be paid as allocated between the assignor and assignee)
and the assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

 

(v)
No Assignment to Borrower, Guarantors, Affiliates or Defaulting Lenders. No such assignment shall be made to (A) the Borrower,
any Subsidiary or any other Affiliate of the Borrower or (B) to a Defaulting Lender or any of its Subsidiaries or any Person,
who, upon becoming a Lender hereunder would constitute any of the foregoing Persons described in this clause (B).

 

(vi)
No Assignment to Natural Persons. No such assignment shall be made to a natural person.

 

(vii)
Certain Additional Payments. In connection with any assignment of rights and obligations of any Defaulting Lender hereunder,
no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties
to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution
thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other
compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata
share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor
hereby irrevocably consent) to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the
Administrative Agent, the L/C Issuer and each other Lender hereunder (and interest accrued thereon) and (y) acquire (and fund
as appropriate) its full pro rata share of all Loans and participations in Letters of Credit in accordance with its Percentage.
Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall
become effective under applicable law without compliance with the provisions of this paragraph, then the assignee of such interest
shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

 

    	-84-

    	 

    

 

Subject
to acceptance and recording thereof by the Administrative Agent pursuant to Section 12.12(b) hereof, from and after the effective
date specified in each Assignment and Acceptance, the assignee thereunder shall be a party to this Agreement and, to the extent
of the interest assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be released
from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to
the benefits of Sections 12.6 and 12.15 with respect to facts and circumstances occurring prior to the effective date of such
assignment; provided that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting
Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a
Defaulting Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with
this Section shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations
in accordance with Section 12.11 hereof.

 

(b)
Register. The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at one of
its offices in Chicago, Illinois, a copy of each Assignment and Acceptance delivered to it and a register for the recordation
of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans owing
to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register
shall be conclusive absent manifest error, and the Borrower, the Administrative Agent, and the Lenders may treat each Person whose
name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding
notice to the contrary. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time
and from time to time upon reasonable prior notice. Each Lender or L/C Issuer that grants a participation as described in Section
12.11 shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address
of each participant and the principal amounts (and stated interest) of each participant’s interest in the Loans made and
Reimbursement Obligations and/or Commitments or other obligations under this Agreement (the “Participant Register”);
provided that no Lender or L/C Issuer shall have any obligation to disclose all or any portion of the Participant Register
to any Person (including the identity of any participant or any information relating to a participant’s interest in any
Loans made and Reimbursement Obligations and/or Commitments or other obligations under this Agreement) except to the extent that
such disclosure is necessary to establish that such Obligation or Commitment is in registered form under Section 5f.103-1(c) of
the Treasury Regulations or is otherwise required by this Agreement. The entries in the Participant Register shall be conclusive
absent manifest error, and such Lender or L/C Issuer shall treat each person whose name is recorded in the Participant Register
as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.

 

(c)
Any Lender may at any time pledge or grant a security interest in all or any portion of its rights under this Agreement to secure
obligations of such Lender, including any such pledge or grant to a Federal Reserve Bank, and this Section 12.12 shall not apply
to any such pledge or grant of a security interest; provided that no such pledge or grant of a security interest shall
release a Lender from any of its obligations hereunder or substitute any such pledgee or secured party for such Lender as a party
hereto; provided further, however, the right of any such pledgee or grantee (other than any Federal Reserve Bank) to further
transfer all or any portion of the rights pledged or granted to it, whether by means of foreclosure or otherwise, shall be at
all times subject to the terms of this Agreement.

 

    	-85-

    	 

    

 

Section
12.13. Amendments.  Any provision of this Agreement or the other Loan Documents may be amended or waived if, but only if,
such amendment or waiver is in writing and is signed by (a) the Borrower, (b) the Required Lenders, and (c) if the rights or duties
of the Administrative Agent or the L/C Issuer are affected thereby, the Administrative Agent or the L/C Issuer, as applicable;
provided that:

 

(i)
no amendment or waiver pursuant to this Section 12.13 shall (A) increase any Commitment of any Lender without the consent of such
Lender or (B) reduce the amount of or postpone the date for any scheduled payment of any principal of or interest on any Loan
or of any Reimbursement Obligation or of any fee payable hereunder without the consent of the Lender to which such payment is
owing or which has committed to make such Loan or Letter of Credit (or participate therein) hereunder;

 

(ii)
no amendment or waiver pursuant to this Section 12.13 shall, unless signed by each Lender, extend the Termination Date, release
the Borrower or any Guarantor (expect as provided for in this Agreement), change the definition of Required Lenders, change the
provisions of this Section 12.13, or affect the number of Lenders required to take any action hereunder or under any other Loan
Document; and

 

(iii)
no amendment to Section 13 hereof shall be made without the consent of the Guarantors affected thereby.

 

Notwithstanding
anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent
hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Lenders or each affected Lender
may be effected with the consent of the applicable Lenders other than Defaulting Lenders), except that (x) the Commitment of any
Defaulting Lender may not be increased or extended without the consent of such Lender and (y) any waiver, amendment or modification
requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender more adversely than
other affected Lenders shall require the consent of such Defaulting Lender.

 

Section
12.14. Headings. Section headings used in this Agreement are for reference only and shall not affect the construction of this
Agreement.

 

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Section
12.15. Costs and Expenses; Indemnification. (a) The Borrower agrees to pay all reasonable out-of-pocket costs and expenses
of the Administrative Agent in connection with the preparation, due diligence, investigation (including third party expenses)
negotiation, syndication, and administration of the Loan Documents, including, without limitation, the reasonable out-of-pocket
fees and disbursements of counsel to the Administrative Agent), in connection with the preparation and execution of the Loan Documents,
and any amendment, waiver or consent related thereto, whether or not the transactions contemplated herein are consummated. The
Borrower agrees to pay to the Administrative Agent, the L/C Issuer, each Lender, and any other holder of any Obligations outstanding
hereunder, all out-of-pocket costs and expenses reasonably incurred or paid by the Administrative Agent, the L/C Issuer, such
Lender, or any such holder, including reasonable and out-of-pocket attorneysメ fees and disbursements and court costs, in
connection with any Default or Event of Default hereunder or in connection with the enforcement of any of the Loan Documents (including
all such costs and expenses incurred in connection with any proceeding under the United States Bankruptcy Code involving the Borrower
or any Guarantor as a debtor thereunder). The Borrower further agrees to indemnify the Administrative Agent, the L/C Issuer, each
Lender, and any security trustee therefor, and their respective directors, officers, employees, agents, and, if engaged by the
Administrative Agent in connection with the enforcement of rights under the Loan Documents, financial advisors, and consultants
(each such Person being called an “Indemnitee”) against all losses, claims, damages, penalties, judgments,
liabilities and expenses (including, without limitation, all reasonable and out-of-pocket fees and disbursements of counsel for
any such Indemnitee and all reasonable and out-of-pocket expenses of litigation or preparation therefor, whether or not the Indemnitee
is a party thereto, or any settlement arrangement arising from or relating to any such litigation) which any of them may pay or
incur arising out of or relating to any Loan Document or any of the transactions contemplated thereby or the direct or indirect
application or proposed application of the proceeds of any Loan or Letter of Credit, other than those which arise from the gross
negligence or willful misconduct of the party claiming indemnification as determined by a court of competent jurisdiction by final
and non-appealable judgment. The Borrower, promptly following demand by the Administrative Agent, the L/C Issuer, or a Lender
at any time, shall reimburse the Administrative Agent, the L/C Issuer, or such Lender for any reasonable legal or other out-of-pocket
expenses (including, without limitation, all reasonable fees and disbursements of counsel for any such Indemnitee) incurred in
connection with investigating or defending against any of the foregoing (including any settlement costs relating to the foregoing)
except to the extent the same is due to the gross negligence or willful misconduct of the party to be indemnified as determined
by a court of competent jurisdiction by final and non-appealable judgment. To the extent permitted by applicable Legal Requirements,
the Borrower and the Guarantors shall not assert, and each hereby waives, any claim against any Indemnitee, on any theory of liability,
for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection
with, or as a result of, this Agreement or the other Loan Documents or any agreement or instrument contemplated hereby or thereby,
the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof. The obligations
of the parties under this Section 12.15 shall survive the termination of this Agreement.

 

(b)
The Borrower unconditionally agrees to indemnify, defend and hold harmless, and covenants not to sue for any claim for contribution
against, each Indemnitee for any damages, loss or reasonable and documented out-of-pocket costs and expenses, including without
limitation, response, remedial or removal costs and all reasonable and documented out-of-pocket fees and disbursements of counsel
for any such Indemnitee, arising out of any of the following: (i) any Hazardous Material Activity at any of the Real Properties,
(ii) the violation of any Environmental Law by the Borrower or any Subsidiary or otherwise occurring on or with respect to any
Real Property, (iii) any claim for personal injury or property damage in connection with the Borrower or any Subsidiary or otherwise
occurring on or with respect to any Real Property, and (iv) the inaccuracy or breach of any environmental representation, warranty
or covenant by the Borrower or any Subsidiary made herein or in any other Loan Document evidencing or securing any Obligations
or setting forth terms and conditions applicable thereto or otherwise relating thereto, except for damages arising from the willful
misconduct, bad faith or gross negligence of the relevant Indemnitee. This indemnification shall survive the payment and satisfaction
of all Obligations and the termination of this Agreement, and shall remain in force through and until the expiration of any applicable
statute of limitations and payment or satisfaction in full of any single claim under this indemnification. This indemnification
shall be binding upon the successors and assigns of the Borrower and shall inure to the benefit of each Indemnitee and its successors
and assigns.

 

    	-87-

    	 

    

 

Section
12.16. Set-off. In addition to any rights now or hereafter granted under the Loan Documents or applicable Legal Requirements
and not by way of limitation of any such rights, upon the occurrence of any Event of Default, with the prior written consent of
the Administrative Agent, each Lender, the L/C Issuer, each subsequent holder of any Obligation, and each of their respective
affiliates, is hereby authorized by the Borrower and each Guarantor at any time or from time to time, without notice to the Borrower
or such Guarantor or to any other Person, any such notice being hereby expressly waived, to set-off and to appropriate and to
apply any and all deposits (general or special, including, but not limited to, indebtedness evidenced by certificates of deposit,
whether matured or unmatured, and in whatever currency denominated, but not including trust accounts) and any other indebtedness
at any time held or owing by that Lender, L/C Issuer, subsequent holder, or affiliate, to or for the credit or the account of
the Borrower or such Guarantor, whether or not matured, against and on account of the Obligations then due to that Lender, L/C
Issuer, or subsequent holder under the Loan Documents, including, but not limited to, all claims of any nature or description
arising out of or connected with the Loan Documents, irrespective of whether or not (a) that Lender, L/C Issuer, or subsequent
holder shall have made any demand hereunder or (b) the principal of or the interest on the Loans and other amounts due hereunder
shall have become due and payable pursuant to Section 9 and although said obligations and liabilities, or any of them, may be
contingent or unmatured; provided that in the event that any Defaulting Lender shall exercise any such right of setoff,
(x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with
the provisions of Section 1.14 and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and
deemed held in trust for the benefit of the Administrative Agent, the L/C Issuer and the Lenders and (y) the Defaulting Lender
shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting
Lender as to which it exercised such right of setoff.

 

Section
12.17. Entire Agreement. The Loan Documents constitute the entire understanding of the parties thereto with respect to the
subject matter thereof and any prior agreements, whether written or oral, with respect thereto are superseded hereby.

 

Section
12.18. Waiver of Jury Trial. Each party hereto hereby irrevocably waives, to the fullest
extent permitted by applicable Legal Requirements, any right it may have to a trial by jury in any legal proceeding directly or
indirectly arising out of or relating to any Loan Document or the transactions contemplated thereby (whether based on contract,
tort or any other theory). Each party hereto (a) certifies that no representative, agent or attorney of any other party has represented,
expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and
(b) acknowledges that it and the other parties hereto have been induced to enter into this Agreement by, among other things, the
mutual waivers and certifications in this Section.

 

    	-88-

    	 

    

 

Section
12.19. Severability of Provisions. Any provision of any Loan Document which is unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such unenforceability without invalidating the remaining provisions hereof
or affecting the validity or enforceability of such provision in any other jurisdiction. All rights, remedies and powers provided
in this Agreement and the other Loan Documents may be exercised only to the extent that the exercise thereof does not violate
any applicable mandatory provisions of law, and all the provisions of this Agreement and other Loan Documents are intended to
be subject to all applicable mandatory provisions of law which may be controlling and to be limited to the extent necessary so
that they will not render this Agreement or any of the other Loan Documents invalid or unenforceable.

 

Section
12.20. Excess Interest. Notwithstanding any provision to the contrary contained herein or in any other Loan Document, no such
provision shall require the payment or permit the collection of any amount of interest in excess of the maximum amount of interest
permitted by applicable Legal Requirements to be charged for the use or detention, or the forbearance in the collection, of all
or any portion of the Loans or other obligations outstanding under this Agreement or any other Loan Document (“Excess
Interest”). If any Excess Interest is provided for, or is adjudicated to be provided for, herein or in any other Loan
Document, then in such event (a) the provisions of this Section 12.20 shall govern and control, (b) neither the Borrower nor any
guarantor or endorser shall be obligated to pay any Excess Interest, (c) any Excess Interest that the Administrative Agent or
any Lender may have received hereunder shall, at the option of the Administrative Agent, be (i) applied as a credit against the
then outstanding principal amount of Obligations hereunder and accrued and unpaid interest thereon (not to exceed the maximum
amount permitted by applicable Legal Requirements), (ii) refunded to the Borrower, or (iii) any combination of the foregoing,
(d) the interest rate payable hereunder or under any other Loan Document shall be automatically subject to reduction to the maximum
lawful contract rate allowed under applicable usury laws (the “Maximum Rate”), and this Agreement and the other
Loan Documents shall be deemed to have been, and shall be, reformed and modified to reflect such reduction in the relevant interest
rate, and (e) neither the Borrower nor any guarantor or endorser shall have any action against the Administrative Agent or any
Lender for any damages whatsoever arising out of the payment or collection of any Excess Interest. Notwithstanding the foregoing,
if for any period of time interest on any of Borrower’s Obligations is calculated at the Maximum Rate rather than the applicable
rate under this Agreement, and thereafter such applicable rate becomes less than the Maximum Rate, the rate of interest payable
on the Borrower’s Obligations shall remain at the Maximum Rate until the Lenders have received the amount of interest which
such Lenders would have received during such period on the Borrower’s Obligations had the rate of interest not been limited
to the Maximum Rate during such period.

 

Section
12.21. Construction. The parties acknowledge and agree that the Loan Documents shall not be construed more favorably in favor
of any party hereto based upon which party drafted the same, it being acknowledged that all parties hereto contributed substantially
to the negotiation of the Loan Documents. The provisions of this Agreement relating to Subsidiaries shall only apply during such
times as the Borrower has one or more Subsidiaries.

 

Section
12.22. Lender’s and L/C Issuer’s Obligations Several. The obligations of the Lenders and L/C Issuer hereunder
are several and not joint. Nothing contained in this Agreement and no action taken by the Lenders or L/C Issuer pursuant hereto
shall be deemed to constitute the Lenders and L/C Issuer a partnership, association, joint venture or other entity.

 

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Section
12.23. Governing Law; Jurisdiction; Consent to Service of Process. (a) This agreement,
the Notes and the other Loan Documents (except as otherwise specified therein), and the rights and duties of the parties hereto,
shall be construed and determined in accordance with the laws of the State of New York (including Section 5-1401 and Section 5-1402
of the General Obligations law of the State of New York) without regard to conflicts of law principles that would require application
of the laws of another jurisdiction.

 

(b)
Each party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction
of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern
District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to any
Loan Document, or for recognition or enforcement of any judgment, and each party hereto hereby irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State court or,
to the extent permitted by applicable Legal Requirements, in such federal court. Each party hereto hereby agrees that a final
judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by applicable Legal Requirements. Nothing in this Agreement or any other Loan Document or otherwise
shall affect any right that any party hereto may otherwise have to bring any action or proceeding relating to this Agreement or
any other Loan Document against the Borrower or any Guarantor or its respective properties in the courts of any jurisdiction.

 

(c)
Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent permitted by applicable Legal Requirements,
any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating
to this Agreement or any other Loan Document in any court referred to in Section 12.23(b). Each party hereto hereby irrevocably
waives, to the fullest extent permitted by applicable Legal Requirements, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court.

 

(d)
Each party to this Agreement irrevocably consents to service of process in any action or proceeding arising out of or relating
to any Loan Document, in the manner provided for notices (other than telecopy or e-mail) in Section 12.8. Nothing in this Agreement
or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted
by applicable Legal Requirements.

 

Section
12.24. USA Patriot Act. Each Lender and L/C Issuer that is subject to the requirements of the USA Patriot Act (Title III of
Pub. L 107-56 (signed into law October 26, 2001)) (the “Act”) hereby notifies the Borrower that pursuant to
the requirements of the Act, it is required to obtain, verify, and record information that identifies the Borrower, which information
includes the name and address of the Borrower and other information that will allow such Lender or L/C Issuer to identify the
Borrower in accordance with the Act.

 

    	-90-

    	 

    

 

Section
12.25. Confidentiality. Each of the Administrative Agent, the Lenders, and the L/C Issuer severally agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’
directors, officers, employees and agents, including accountants, legal counsel and other advisors to the extent any such Person
has a need to know such Information (it being understood that the Persons to whom such disclosure is made will first be informed
of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested
by any regulatory authority (including any self-regulatory authority, such as the National Association of Insurance Commissioners),
(c) to the extent required by applicable Legal Requirements or by any subpoena or similar legal process, (d) to any other party
hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any suit, action or
proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject
to an agreement containing provisions substantially the same as those of this Section 12.25, to (A) any assignee of or participant
in, or any prospective assignee of or participant in, any of its rights or obligations under this Agreement or (B) any actual
or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower or any Subsidiary
and its obligations, (g) with the prior written consent of the Borrower, (h) to the extent such Information (A) becomes publicly
available other than as a result of a breach of this Section 12.25 or (B) becomes available to the Administrative Agent, any Lender
or the L/C Issuer on a non-confidential basis from a source other than the Borrower or any Subsidiary or any of their directors,
officers, employees or agents, including accountants, legal counsel and other advisors; (i) on a confidential basis to rating
agencies if requested or required by such agencies in connection with a rating relating to the Loans or the Commitments hereunder,
(j) so long as the Borrower’s report on Form 8-K (or its equivalent) has been filed with the SEC, Gold Sheets and other
similar bank trade publications (such information to consist solely of deal terms and other information regarding the credit facilities
evidenced by this Agreement customarily found in such publications), or (k) so long as the Borrower’s report on Form 8-K
(or its equivalent) has been filed with the SEC, to entities which compile and publish information about the syndicated loan market,
provided that only basic information about the pricing and structure of the transaction evidenced hereby may be disclosed
pursuant to this subsection (k). For purposes of this Section 12.25, “Information” means all information received
from the Borrower or any of the Subsidiaries or from any other Person on behalf of the Borrower or any Subsidiary relating to
the Borrower or any Subsidiary or any of their respective businesses, other than any such information that is available to the
Administrative Agent, any Lender or the L/C Issuer on a non-confidential basis prior to disclosure by the Borrower or any of its
Subsidiaries or from any other Person on behalf of the Borrower or any of the Subsidiaries.

 

Section
12.26. Acknowledgement and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary
in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges
that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured,
may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges
and agrees to be bound by:

 

    	-91-

    	 

    

 

(a)
the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder
which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b)
the effects of any Bail-in Action on any such liability, including, if applicable:

 

(i)
a reduction in full or in part or cancellation of any such liability;

 

(ii)
a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution,
its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or
other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement
or any other Loan Document; or

 

(iii)
the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA
Resolution Authority.

 

Section
13. The Guarantees.

 

Section
13.1. The Guarantees. To induce the Lenders to provide the credits described herein and in consideration of benefits expected
to accrue to the Borrower by reason of the Commitments and for other good and valuable consideration, receipt of which is hereby
acknowledged, each Guarantor party hereto (including any Guarantor formed or acquired after the Closing Date executing an separate
Subsidiary Guaranty or an Additional Guarantor Supplement in the form attached hereto as Exhibit G or such other form acceptable
to the Administrative Agent) hereby unconditionally and irrevocably guarantees, jointly and severally, to the Administrative Agent,
the Lenders, and their Affiliates, the due and punctual payment of all present and future Obligations, Hedging Liability and Bank
Product Obligations, including, but not limited to, the due and punctual payment of principal of and interest on the Loans, the
Reimbursement Obligations, Hedging Liability, and Bank Product Obligations, and the due and punctual payment of all other obligations
now or hereafter owed by the Borrower under the Loan Documents as and when the same shall become due and payable, whether at stated
maturity, by acceleration, or otherwise, according to the terms hereof and thereof (including all interest, costs, fees, and charges
after the entry of an order for relief against the Borrower or such other obligor in a case under the United States Bankruptcy
Code, the Canadian Bankruptcy Legislation or any similar proceeding, whether or not such interest, costs, fees and charges would
be an allowed claim against the Borrower or any such obligor in any such proceeding); provided, however, that with respect
to any Guarantor, its Guarantee of Hedging Liability of the Borrower or any Guarantor shall exclude all Excluded Swap Obligations.
In case of failure by the Borrower or other obligor punctually to pay any obligations guaranteed hereby, each Guarantor hereby
unconditionally agrees to make such payment or to cause such payment to be made punctually as and when the same shall become due
and payable, whether at stated maturity, by acceleration, or otherwise, and as if such payment were made by the Borrower or such
obligor.

 

    	-92-

    	 

    

 

Section
13.2. Guarantee Unconditional. The obligations of each Guarantor under this Section 13 shall be unconditional and absolute
and, without limiting the generality of the foregoing, shall not be released, discharged, or otherwise affected by:

 

(a)
any extension, renewal, settlement, compromise, waiver, or release in respect of any obligation of the Borrower or other obligor
or of any other guarantor under this Agreement or any other Loan Document or by operation of law or otherwise;

 

(b)
any modification or amendment of or supplement to this Agreement or any other Loan Document or any agreement relating to Hedging
Liability or Bank Product Obligations;

 

(c)
any change in the corporate existence, structure, or ownership of, or any insolvency, bankruptcy, reorganization, or other similar
proceeding affecting, the Borrower or other obligor, any other guarantor, or any of their respective assets, or any resulting
release or discharge of any obligation of the Borrower or other obligor or of any other guarantor contained in any Loan Document;

 

(d)
the existence of any claim, set-off, or other rights which the Borrower or other obligor or any other guarantor may have at any
time against the Administrative Agent, any Lender, or any other Person, whether or not arising in connection herewith;

 

(e)
any failure to assert, or any assertion of, any claim or demand or any exercise of, or failure to exercise, any rights or remedies
against the Borrower or other obligor, any other guarantor, or any other Person or Property;

 

(f)
any application of any sums by whomsoever paid or howsoever realized to any obligation of the Borrower or other obligor, regardless
of what obligations of the Borrower or other obligor remain unpaid;

 

(g)
any invalidity or unenforceability relating to or against the Borrower or other obligor or any other guarantor for any reason
of this Agreement or of any other Loan Document or any agreement relating to Hedging Liability or Bank Product Obligations, or
any provision of applicable Legal Requirements purporting to prohibit the payment by the Borrower or other obligor or any other
guarantor of the principal of or interest on any Loan or any Reimbursement Obligation or any other amount payable under the Loan
Documents or any agreement relating to Hedging Liability or Bank Product Obligations; or

 

(h)
any other act or omission to act or delay of any kind by the Administrative Agent, any Lender, or any other Person or any other
circumstance whatsoever that might, but for the provisions of this paragraph, constitute a legal or equitable discharge of the
obligations of any Guarantor under this Section 13.

 

    	-93-

    	 

    

 

Section
13.3. Discharge Only upon Payment in Full; Reinstatement in Certain Circumstances. Each Guarantor’s obligations under
this Section 13 shall remain in full force and effect until the Commitments are terminated, all Letters of Credit have expired,
and the principal of and interest on the Loans and all other amounts payable by the Borrower and the Guarantors under this Agreement
and all other Loan Documents and, if then outstanding and unpaid, all Hedging Liability and Bank Product Obligations have been
paid in full. If at any time any payment of the principal of or interest on any Loan or any Reimbursement Obligation or any other
amount payable by the Borrower or other obligor or any Guarantor under the Loan Documents or any agreement relating to Hedging
Liability or Bank Product Obligations is rescinded or must be otherwise restored or returned upon the insolvency, bankruptcy,
or reorganization of the Borrower or other obligor or of any guarantor, or otherwise, each Guarantor’s obligations under
this Section 13 with respect to such payment shall be reinstated at such time as though such payment had become due but had not
been made at such time.

 

Section
13.4. Subrogation. Each Guarantor agrees it will not exercise any rights which it may acquire by way of subrogation by any
payment made hereunder, or otherwise, until all the obligations guaranteed hereby shall have been paid in full subsequent to the
termination of all the Commitments and expiration of all Letters of Credit. If any amount shall be paid to a Guarantor on account
of such subrogation rights at any time prior to the later of (x) the payment in full of the Obligations, Bank Product Obligations
and Hedging Liability and all other amounts payable by the Borrower hereunder and under the other Loan Documents and (y) the termination
of the Commitments and expiration of all Letters of Credit, such amount shall be held in trust for the benefit of the Administrative
Agent and the Lenders (and their Affiliates) and shall forthwith be paid to the Administrative Agent for the benefit of the Lenders
(and their Affiliates) or be credited and applied upon the Obligations, Bank Product Obligations and Hedging Liability, whether
matured or unmatured, in accordance with the terms of this Agreement.

 

Section
13.5. Waivers. Each Guarantor irrevocably waives acceptance hereof, presentment, demand, protest, and any notice except as
specifically provided for herein, as well as any requirement that at any time any action be taken by the Administrative Agent,
any Lender, or any other Person against the Borrower or other obligor, another guarantor, or any other Person.

 

Section
13.6. Limit on Recovery. Notwithstanding any other provision hereof, the right of recovery against each Guarantor under this
Section 13 shall not exceed $1.00 less than the lowest amount which would render such Guarantor’s obligations under this
Section 13 void or voidable under applicable Legal Requirements, including, without limitation, fraudulent conveyance law.

 

Section
13.7. Stay of Acceleration. If acceleration of the time for payment of any amount payable by the Borrower or other obligor
under this Agreement or any other Loan Document or any agreement relating to Hedging Liability or Bank Product Obligations, is
stayed upon the insolvency, bankruptcy or reorganization of the Borrower or such obligor, all such amounts otherwise subject to
acceleration under the terms of this Agreement or the other Loan Documents or any agreement relating to Hedging Liability or Bank
Product Obligations, shall nonetheless be payable by the Guarantors hereunder forthwith on demand by the Administrative Agent
made at the request of the Required Lenders.

 

    	-94-

    	 

    

 

Section
13.8. Benefit to Guarantors. The Borrower and the Guarantors are engaged in related businesses and integrated to such an extent
that the financial strength and flexibility of the Borrower has a direct impact on the success of each Guarantor. Each Guarantor
will derive substantial direct and indirect benefit from the extensions of credit hereunder.

 

Section
13.9. Guarantor Covenants. Each Guarantor shall take such action as the Borrower is required by this Agreement to cause such
Guarantor to take, and shall refrain from taking such action as the Borrower is required by this Agreement to prohibit such Guarantor
from taking.

 

Section
13.10. Subordination. Each Guarantor (each referred to herein as a “Subordinated Creditor”) hereby subordinates
the payment of all indebtedness, obligations, and liabilities of the Borrower or any other Guarantor owing to such Subordinated
Creditor, whether now existing or hereafter arising, to the indefeasible payment in full in cash of all Obligations, Hedging Liability,
and Bank Product Obligations. During the continuance of any Event of Default or Default under Sections 9.1 (a), (j) or (k), subject
to Section 13.4, any such indebtedness, obligation, or liability of the Borrower or any other Guarantor owing to such Subordinated
Creditor shall be enforced and performance received by such Subordinated Creditor as trustee for the benefit of the holders of
the Obligations, Hedging Liability, and Bank Product Obligations and, upon the acceleration of the Indebtedness under Section
9.2 or 9.3 hereof, the proceeds thereof shall be paid over to the Administrative Agent for application to the Obligations, Hedging
Liability, and Bank Product Obligations (whether or not then due), but without reducing or affecting in any manner the liability
of such Guarantor under this Section 13.

 

Section
13.11. Keepwell. Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes
to provide such funds or other support as may be needed from time to time by the Borrower and each other Guarantor to honor all
of its obligations in respect of Swap Obligations (provided, however, that each Qualified ECP Guarantor shall only be liable
under this Section for the maximum amount of such liability that can be hereby incurred without rendering its obligations under
this Section as it relates to such Borrower or other Guarantor, voidable under applicable Legal Requirements relating to fraudulent
conveyance or fraudulent transfer, and not for any greater amount). The obligations of each Qualified ECP Guarantor under this
Section shall remain in full force and effect until discharged in accordance with Section 13.3. Each Qualified ECP Guarantor intends
that this Section constitute, and this Section shall be deemed to constitute, a “keepwell, support, or other agreement”
for the benefit of the Borrower and each other Guarantor for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange
Act.

 

[Signature
Pages to Follow]

 

    	-95-

    	 

    

 

This
Credit Agreement is entered into between us for the uses and purposes hereinabove set forth as of the date first above written.

 

	 	“Borrower”
	 	 
	 	Monmouth
    Real Estate Investment 

        Corporation
	 	 
	 	By:	                     	
	 	Name:	 
	 	Title:	 
	 	 	 
	 	“Administrative
    Agent and L/C Issuer”
	 	 
	 	Bank
    of Montreal, as L/C Issuer and as 

       Administrative Agent
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

[Signature
Page
to Credit
Agreement-Monmouth
Real
Estate
Investment
Corporation] 

 

    	 

    	 		 

    

 

	 	“Lenders”
	 	 
	 	Bank
    of Montreal, as a Lender
	 	 
	 	By:	             
	 	Name:	 
	 	Title:	 

 

[Signature
Page
to Credit
Agreement-Monmouth
Real
Estate
Investment
Corporation]

 

    	 

    	 		 

    

 

	 	JP
    Morgan Chase Bank, N.A., as a Lender
	 	 
	 	By:	      
	 	Name:	 
	 	Title:	 

 

[Signature
Page
to Credit
Agreement-Monmouth
Real
Estate
Investment
Corporation]

 

    	 

    	 		 

    

 

	 	Royal
    Bank of Canada, as a Lender
	 	 
	 	By:	       
	 	Name:	 
	 	Title:	 

 

[Signature
Page
to Credit
Agreement-Monmouth
Real
Estate
Investment
Corporation] 

 

    	 

    	 		 

    

 

	 	“Guarantors”
    
	 	 
	 	MREIC
    Illinois, LLC, an Illinois limited 

        liability company
	 	 
	 	By:
    	Monmouth
    Real Estate Investment Corporation
	 	Its:	Sole
    Member
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Monmouth
    Capital Corporation, a New 

        Jersey corporation
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	MREIC
    PA Monaca, LLC, a Pennsylvania 

        limited liability company
	 	 
	 	By:	Monmouth
    Real Estate Investment Corporation
	 	Its:
    	Sole
    Member
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

[Signature
Page
to Credit
Agreement-Monmouth
Real
Estate
Investment
Corporation] 

 

    	 

    	 		 

    

 

	 	MREIC
    O’Fallon MO, LLC, a Missouri limited
    

        liability company
	 	 
	 	By:	Monmouth
    Real Estate Investment Corporation
	 	Its:
    	Sole
    Member
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	MREIC
    Orangeburg NY, LLC, a New York 

        limited liability company
	 	 
	 	By:
    	Monmouth
    Real Estate Investment Corporation
	 	Its:	Sole
    Member
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	MREIC
    Richland MS, LLC, a Mississippi 

        limited liability company
	 	 
	 	By:
    	Monmouth
    Real Estate Investment Corporation
	 	Its:
    	Sole
    Member
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

[Signature
Page
to Credit
Agreement-Monmouth
Real
Estate
Investment
Corporation] 

 

    	 

    	 		 

    

 

	 	MREIC
    Ridgeland MS, LLC, a Mississippi 

        limited liability company
	 	 
	 	By:	Monmouth
    Real Estate Investment Corporation
	 	Its:
    	Sole
    Member
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	MREIC
    Rockford IL, LLC, an Illinois limited 

        liability company
	 	 
	 	By:
    	Monmouth
    Real Estate Investment Corporation
	 	Its:
    	Sole
    Member
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	MREIC
    Urbandale IA, LLC, an Iowa limited 

        liability company
	 	 
	 	By:
    	Monmouth
    Real Estate Investment Corporation
	 	Its:
    	Sole
    Member
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

[Signature
Page
to Credit
Agreement-Monmouth
Real
Estate
Investment
Corporation] 

 

    	 

    	 		 

    

 

	 	MRC
                                         I, LLC, a
                                         Wisconsin limited liability

            company

	 	 
	 	By:	Monmouth
    Real Estate Investment Corporation
	 	Its:
    	Sole
    Member
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

[Signature
Page
to Credit
Agreement-Monmouth
Real
Estate
Investment
Corporation] 

 

    	 

    	 		 

    

 

Exhibit
A

 

Notice
of Payment Request

 

[Date]

[Name
of Lender]

[Address]

 

Attention:

 

Reference
is made to the Credit Agreement, dated as of August 27, 2015, among Monmouth Real Estate Investment Corporation, the Guarantors
from time to time party thereto, the Lenders from time to time party thereto and Bank of Montreal, as Administrative Agent (as
extended, renewed, amended or restated from time to time, the “Credit Agreement”). Capitalized terms used herein
and not defined herein have the meanings assigned to them in the Credit Agreement. [The Borrower has failed to pay its Reimbursement
Obligation in the amount of $____________. Your Percentage of the unpaid Reimbursement Obligation is $_____________] or [__________________________
has been required to return a payment by the Borrower of a Reimbursement Obligation in the amount of $_______________. Your Percentage
of the returned Reimbursement Obligation is $_______________.]

 

	 	Very
    truly yours,
	 	 
	 	Bank
    of Montreal, as L/C Issuer 
	 	 	 
	 	By:	           
	 	Name:	 
	 	Title:	 

 

    	 

    	 		 

    

 

Exhibit
B

 

Notice
of Borrowing

 

Date:
_____________, ____

 

	To:
    	Bank
    of Montreal, as Administrative Agent for the Lenders from time to time parties to the Credit Agreement, dated as of August
    27, 2015 (as extended, renewed, amended or restated from time to time, the “Credit Agreement”), among Monmouth
    Real Estate Investment Corporation, the Guarantors from time to time party thereto, the Lenders from time to time party thereto
    and Bank of Montreal, as Administrative Agent

 

Ladies
and Gentlemen:

 

The
undersigned, Monmouth Real Estate Investment Corporation (the “Borrower”), refers to the Credit Agreement,
the terms defined therein being used herein as therein defined, and hereby gives you notice irrevocably, pursuant to Section 1.6
of the Credit Agreement, of the Borrowing specified below:

 

1.
The Business Day of the proposed Borrowing is ___________, ____.

 

2.
The aggregate amount of the proposed Borrowing is $______________.

 

3.
The Borrowing is being advanced under the Credit.

 

4.
The Borrowing is to be comprised of $___________ of [Base Rate] [Eurodollar] Loans.

 

[5.
The duration of the Interest Period for the Eurodollar Loans included in the Borrowing shall be ____________ months.]

 

The
undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed
Borrowing, before and after giving effect thereto and to the application of the proceeds therefrom:

 

(a)
the representations and warranties of the Borrower contained in Section 6 of the Credit Agreement are true and correct in all
material respects (where not already qualified by materiality or Material Adverse Effect, otherwise in all respects) as though
made on and as of such date (except to the extent the same expressly relate to an earlier date, in which case they shall be true
and correct in all material respects (where not already qualified by materiality or Material Adverse Effect, otherwise in all
respects) as of such earlier date); and

 

(b)
no Default or Event of Default has occurred and is continuing or would result from such proposed Borrowing.

 

	 	Monmouth
    Real Estate Investment 

        Corporation
	 	 	 
	 	By:
    	                    
	 	Name:
    	 
	 	Title:
    	 

 

    	 

    	 		 

    

 

Exhibit
C

 

Notice
of Continuation/Conversion

 

Date:
____________, ____

 

	To:
    	Bank
    of Montreal, as Administrative Agent for the Lenders from time to time parties to the Credit Agreement dated as of August
    27, 2015 (as extended, renewed, amended or restated from time to time, the “Credit Agreement”), among Monmouth
    Real Estate Investment Corporation, the Guarantors from time to time party thereto, the Lenders from time to time party thereto
    and Bank of Montreal, as Administrative Agent

 

Ladies
and Gentlemen:

 

The
undersigned, Monmouth Real Estate Investment Corporation (the “Borrower”), refers to the Credit Agreement,
the terms defined therein being used herein as therein defined, and hereby gives you notice irrevocably, pursuant to Section 1.6
of the Credit Agreement, of the [conversion] [continuation] of the Loans specified herein, that:

 

1.
The conversion/continuation Date is __________, ____.

 

2.
The aggregate amount of the Loans to be [converted] [continued] is $______________.

 

3.
The Loans are to be [converted into] [continued as] [Eurodollar] [Base Rate] Loans.

 

4.
[If applicable:] The duration of the Interest Period for the Loans included in the [conversion] [continuation] shall
be _________ months.

 

The
undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the proposed conversion/continuation
date, before and after giving effect thereto and to the application of the proceeds therefrom:

 

(a)
the representations and warranties of the Borrower contained in Section 6 of the Credit Agreement are true and correct in all
material respects (where not already qualified by materiality or Material Adverse Effect, otherwise in all respects) as though
made on and as of such date (except to the extent the same expressly relate to an earlier date, in which case they shall be true
and correct in all material respects (where not already qualified by materiality or Material Adverse Effect, otherwise in all
respects) as of such earlier date); and

 

(b)
no Default or Event of Default has occurred and is continuing, or would result from such proposed [conversion] [continuation].

 

	 	Monmouth
    Real Estate Investment 

        Corporation
	 	 
	 	By:	                     
	 	Name:	 
	 	Title:	 

 

    	 

    	 		 

    

 

Exhibit
D

 

[Amended
and Restated] Note

 

	U.S.
    $_______________ 	________
    __, 201__

 

For
Value Received, the undersigned, Monmouth Real
Estate Investment Corporation, a Maryland corporation (the “Borrower”), hereby promises to pay to ____________________
(the “Lender”) or its permitted assigns on the Termination Date of the hereinafter defined Credit Agreement,
at the principal office of the Administrative Agent in Chicago, Illinois (or such other location as the Administrative Agent may
designate to the Borrower), in immediately available funds, the principal sum of ___________________ Dollars ($__________) or,
if less, the aggregate unpaid principal amount of all Loans made by the Lender to the Borrower pursuant to the Credit Agreement,
together with interest on the principal amount of each Loan from time to time outstanding hereunder at the rates, and payable
in the manner and on the dates, specified in the Credit Agreement.

 

[This
Note (this “Note”) is one of the Notes referred to in the Credit Agreement dated as of August 27, 2015, among
the Borrower, the Guarantors party thereto, the Lenders party thereto, the L/C Issuer and Bank of Montreal, as Administrative
Agent (as extended, renewed, amended, supplemented or restated from time to time, the “Credit Agreement”),
and this Note and the holder hereof are entitled to all the benefits and security provided for thereby or referred to therein,
to which Credit Agreement reference is hereby made for a statement thereof. All defined terms used in this Note, except terms
otherwise defined herein, shall have the same meaning as in the Credit Agreement. This Note shall be governed by and construed
in accordance with the internal laws of the State of New York (including Section 5-1401 and Section 5-1402 of the General Obligations
law of the State of New York).]

 

[This
Amended and Restated Note (this “Note”) amends and restates that certain note dated [_________] made by the
Borrower in favor of the Lender (the “Original Note”) and is one of the Notes referred to in the Credit Agreement
dated as of August 27, 2015, among the Borrower, the Guarantors party thereto, the Lenders party thereto, the L/C Issuer and Bank
of Montreal, as Administrative Agent (as extended, renewed, amended, supplemented or restated from time to time, the “Credit
Agreement”), and this Note and the holder hereof are entitled to all the benefits and security provided for thereby
or referred to therein, to which Credit Agreement reference is hereby made for a statement thereof. This Note is issued in replacement
and substitution for, and supersedes, the Original Note. All defined terms used in this Note, except terms otherwise defined herein,
shall have the same meaning as in the Credit Agreement. This Note shall be governed by and construed in accordance with the internal
laws of the State of New York (including Section 5-1401 and Section 5-1402 of the General Obligations law of the State of New
York).]

 

Voluntary
prepayments may be made hereon, certain prepayments are required to be made hereon, and this Note may be declared due prior to
the expressed maturity hereof, all in the events, on the terms and in the manner as provided for in the Credit Agreement.

 

The
Borrower hereby waives demand, presentment, protest or notice of any kind hereunder.

 

	 	Monmouth
                                         Real Estate Investment

                                                                        
                                         Corporation

	 	 
	 	By:	                   
	 	Name:	 
	 	Title:	 

 

    	 

    	 		 

    

 

Exhibit
E

 

Compliance
Certificate

 

	To:
    	Bank
    of Montreal, as Administrative

    Agent under, and the Lenders party to,

    the Credit Agreement described below

 

This
Compliance Certificate is furnished to the Administrative Agent and the Lenders pursuant to that certain Credit Agreement dated
as of August 27, 2015, among Monmouth Real Estate Investment Corporation, as Borrower, the Guarantors signatory thereto, RegionsJPMorgan
Chase Bank, N.A. and SunTrustRoyal
Bank of Canada, as Syndication Agents, the Administrative Agent and the Lenders
party thereto (the “Credit Agreement”). Unless otherwise defined herein, the terms used in this Compliance
Certificate have the meanings ascribed thereto in the Credit Agreement.

 

The
Undersigned hereby certifies that:

 

1.
I am the duly elected ____________ of Monmouth Real Estate Investment Corporation;

 

2.
I have reviewed the terms of the Credit Agreement and I have made, or have caused to be made under my supervision, a detailed
review of the transactions and conditions of the Borrower and its Subsidiaries during the accounting period covered by the attached
financial statements;

 

3.
Except to the extent previously disclosed pursuant to the requirements of Section 8.5(e) of the Credit Agreement, the examinations
described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or the occurrence of any
event which constitutes a Default or Event of Default during or at the end of the accounting period covered by the attached financial
statements or as of the date of this Compliance Certificate, except as set forth below;

 

4.
The financial statements required by Section 8.5 of the Credit Agreement and being furnished to you concurrently with this Compliance
Certificate are true, correct and complete in all material respects as of the date and for the periods covered thereby; and

 

5.
The Schedule I hereto sets forth financial data and computations evidencing the Borrower’s compliance with certain covenants
of the Credit Agreement, all of which data and computations are, to the best of my knowledge, true, complete and correct and have
been made in accordance with the relevant Sections of the Credit Agreement.

 

    	 

    	 		 

    

 

Described
below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or event, the period during
which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition
or event:

 

 

 

 

 

 

 

 

 

The
foregoing certifications, together with the computations set forth in Schedule I hereto and the financial statements delivered
with this Certificate in support hereof, are made and delivered this ______ day of __________________ 201__.

 

	 	Monmouth
    Real Estate Investment 

        Corporation
	 	 
	 	By:	                   
	 	Name:	 
	 	Title:	 

 

    	-2-

    	 

    

 

Schedule
I

 to
Compliance Certificate

 

 

 

Compliance
Calculations

for
Credit Agreement dated as of August 27, 2015

 

Calculations
as of _____________, _______

 

	A.
    Maximum Leverage Ratio (Section 8.20(a))	 	 	 	 
	1.
    Total Indebtedness	 	$	 	 
	2.
    Total Asset Value as calculated on Exhibit A hereto	 	 	 	 
	3.
    Ratio of Line A1 to Line A2	 	 	____:1.0	 
	4.
    Line A3 must not exceed	 	 	0.60:1.0	 
	5.
    The Borrower is in compliance (circle yes or no)	 	 	yes/no	 
	B.
    Minimum Debt Service Coverage Ratio (Section 8.20(b))	 	 	 	 
	1.
    NOI for all Properties as calculated on Exhibit B hereto	 	$	 	 
	2.
    All principal and/or interest payments due (whether paid or unpaid, but excluding all balloon principal payments)	 	$	 	 
	3.
    Ratio of Line B1 to Line B2	 	 	____:1.0	 
	4.
    Line B3 shall not be less than	 	 	1.25:1.0	 
	5.
    The Borrower is in compliance (circle yes or no)	 	 	yes/no	 
	C.
    Maximum Total Secured Recourse Indebtedness to Total Asset Value Ratio (Section 8.20(c))	 	 	 	 
	1.
    Total Secured Recourse Indebtedness	 	$		 
	2.
    Total Asset Value as calculated on Exhibit A hereto	 	 		 
	3.
    Ratio of Line C1 to Line C2	 	 	____:1.0	 
	4.
    Line C3 shall not exceed	 	 	0.10:1.0	 
	5.
    The Borrower is in compliance (circle yes or no)	 	 	yes/no	 
	D.
    Unsecured Leverage Ratio (Section 8.20(d))	 	 	 	 
	1.
    Total Unsecured Indebtedness	 	$		 
	2.
    Total Unencumbered Asset Value as calculated on Exhibit A hereto	 	 		 
	3.
    Ratio of Line D1 to Line D2	 	 	____:1.0	 
	4.
    Line D3 must not exceed	 	 	Period
                                         ending on or Prior to 12/31/16:
 0.70:1.0
 Period
                                         ending on or After 1/1/2017:
 0.60:1.0
	 
	5.
    The Borrower is in compliance (circle yes or no)	 	 	yes/no	 

 

    	-3-

    	 

    

 

	E.
    Maintenance of Tangible Net Worth (Section 8.20(e))	 	 	 	 
	1.
    Tangible Net Worth	 	$		 
	2.
    Aggregate net proceeds received by Borrower or any of its Subsidiaries after June 30, 2015 in connection with any offering
    of Stock or Stock Equivalents	 	 		 
	3.
    75% of Line E2	 	$		 
	4.
    $475,000,000 plus Line E3 	 	$		 
	5.
    Line E1 shall not be less than Line E4	 	 	 	 
	6.
    The Borrower is in compliance (circle yes or no)	 	 	yes/no	 
	F.
    Corporate Debt Yield (Section 8.20(f)	 	 	 	 
	1.
    NOI as calculated on Exhibit B hereto	 	$		 
	2.
    Total Indebtedness	 	 		 
	3.
    Ratio of Line F1 to Line F2, expressed as a percentage	 	 	__%	 
	4.
    Line F3 must equal or exceed	 	 	11%	
	5.
    The Borrower is in compliance (circle yes or no)	 	 	yes/no	 

 

    	-4-

    	 

    

 

Exhibit
A to Schedule I

to
Compliance Certificate

of
Monmouth Real Estate Investment Corporation

 

This
Exhibit A is attached to Schedule I to the Compliance Certificate of Monmouth Real Estate Investment Corporation dated [________],
201__ and delivered to Bank of Montreal, as Administrative Agent, and the Lenders party to the Credit Agreement referred to therein.
The undersigned hereby certifies that the following is a true, correct and complete calculation of Total Asset Value as of the
last day of the Fiscal Quarter most recently ended:

 

1.
           Total
Real Estate Asset Value

 

	Property	 	A.
    NOI (as calculated on Exhibit
    B)	 	B.  Capitalization
    Rate	 	C.  A
    multiplied by four (4)	 	C
    divided by B
		 	$	 	 	 	 	7.00	%	 	$	 	 	 	$	 	 
	 	 	$	 	 	 	 	7.00	%	 	$	 	 	 	$	 	 
	 	 	$	 	 	 	 	7.00	%	 	$	 	 	 	$	 	 
	 	 	$	 	 	 	 	7.00	%	 	$	 	 	 	$	 	 
	 	 	 	 	 	 	 	 	 	 	 	Total:	 	 	$	 	 

 

2.
           Aggregate
consolidated cash and Cash Equivalents equals: $______________.

 

3.
           Aggregate
consolidated marketable securities available for sale equals: $______________.

 

Total
Asset Value (sum of 1, 2, and 3) equals:
$_________________________.

 

	 	Monmouth
    Real Estate Investment 

        Corporation
	 	 
	 	By:	                    
	 	Name:	 
	 	Title:	 

 

    	-5-

    	 

    

 

Exhibit
B to Schedule I

to
Compliance Certificate

of
Monmouth Real Estate Investment Corporation

 

This
Exhibit B is attached to Schedule I to the Compliance Certificate of Monmouth Real Estate Investment Corporation dated [________],
20__ and delivered to Bank of Montreal, as Administrative Agent, and the Lenders party to the Credit Agreement referred to therein.
The undersigned hereby certifies that the following is a true, correct and complete calculation of NOI for all Properties for
the Fiscal Quarter most recently ended:

 

	Property	 	Rental
    and Other Income	 	Minus	 	Rental
    Income arising from (a) Straight
    Lining of Rents,
    (b) Bankrupt Tenants
    and (c) Defaulted Tenants	 	Minus	 	Expenses
    incurred in connection with Property (including management
    fees, real estate taxes and insurance premiums)	 	equals	 	NOI
	 		 	 	$		 	 	 	-  	 	 	$		 	 	 	-	 	 	$		 	 	 	=		 	$	1	 
	 	 	 	 	$		 	 	 	-  	 	 	$		 	 	 	-	 	 	$		 	 	 	=		 	$		 
	 	 	 	 	$		 	 	 	-  	 	 	$		 	 	 	-	 	 	$		 	 	 	=		 	$		 
	 	 	 	 	$	1	 	 	 	-  	 	 	$		 	 	 	-	 	 	$		 	 	 	=		 	$		 

 

	NOI
    for all Properties:	$_____________

 

	 	Monmouth
                                         Real Estate Investment

                                                                        
                                         Corporation

	 	 
	 	By:	                  
	 	Name:	 
	 	Title:	 

 

    	-6-

    	 

    

 

Exhibit
F

 

Assignment
and Acceptance

 

Dated
_____________, _______

 

Reference
is made to the Credit Agreement dated as of August 27, 2015 (as extended, renewed, amended or restated from time to time, the
“Credit Agreement”) among Monmouth Real Estate Investment Corporation, the Guarantors from time to time party
thereto, the Lenders and L/C Issuer party thereto and Bank of Montreal, as Administrative Agent (the “Administrative
Agent”). Terms defined in the Credit Agreement are used herein with the same meaning.

 

______________________________________________________
(the “Assignor”) and _________________________ (the “Assignee”) agree as follows:

 

1.
The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases and assumes from the Assignor, the amount
and specified percentage interest shown on Annex I hereto of the Assignor’s rights and obligations under the Credit Agreement
as of the Effective Date (as defined below), including, without limitation, the Assignor’s Commitments as in effect on the
Effective Date and the Loans, if any, owing to the Assignor on the Effective Date and the Assignor’s Percentage of any outstanding
L/C Obligations.

 

2.
The Assignor (i) represents and warrants that it is the legal and beneficial owner of the interest being assigned by it hereunder
and that such interest is free and clear of any adverse claim, lien, or encumbrance of any kind; (ii) makes no representation
or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection
with the Credit Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit
Agreement or any other instrument or document furnished pursuant thereto; and (iii) makes no representation or warranty and assumes
no responsibility with respect to the financial condition of the Borrower or any Subsidiary or the performance or observance by
the Borrower or any Subsidiary of any of their respective obligations under the Credit Agreement or any other instrument or document
furnished pursuant thereto.

 

3.
The Assignee (i) confirms that it has received a copy of the Credit Agreement, together with copies of the most recent financial
statements delivered to the Lenders pursuant to Section 8.5(a) and (c) thereof and such other documents and information as it
has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Acceptance; (ii) agrees
that it will, independently and without reliance upon the Administrative Agent, the Assignor or any other Lender and based on
such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Credit Agreement; (iii) appoints and authorizes the Administrative Agent to take such action as Administrative
Agent on its behalf and to exercise such powers under the Credit Agreement and the other Loan Documents as are delegated to the
Administrative Agent by the terms thereof, together with such powers as are reasonably incidental thereto; (iv) agrees that it
will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement are required to
be performed by it as a Lender; and (v) specifies as its lending office (and address for notices) the offices set forth on its
Administrative Questionnaire.

 

    	 

    	 		 

    

 

4.
As consideration for the assignment and sale contemplated in Annex I hereof, the Assignee shall pay to the Assignor on the Effective
Date in Federal funds the amount agreed upon between them. It is understood that commitment and/or letter of credit fees accrued
to the Effective Date with respect to the interest assigned hereby are for the account of the Assignor and such fees accruing
from and including the Effective Date are for the account of the Assignee. Each of the Assignor and the Assignee hereby agrees
that if it receives any amount under the Credit Agreement which is for the account of the other party hereto, it shall receive
the same for the account of such other party to the extent of such other party’s interest therein and shall promptly pay
the same to such other party.

 

5.
The effective date for this Assignment and Acceptance shall be ___________ (the “Effective Date”). Following
the execution of this Assignment and Acceptance, it will be delivered to the Administrative Agent for acceptance and recording
by the Administrative Agent and, if required, the Borrower.

 

6.
Upon such acceptance and recording, as of the Effective Date, (i) the Assignee shall be a party to the Credit Agreement and, to
the extent provided in this Assignment and Acceptance, have the rights and obligations of a Lender thereunder and (ii) the Assignor
shall, to the extent provided in this Assignment and Acceptance, relinquish its rights and be released from its obligations under
the Credit Agreement.

 

7.
Upon such acceptance and recording, from and after the Effective Date, the Administrative Agent shall make all payments under
the Credit Agreement in respect of the interest assigned hereby (including, without limitation, all payments of principal, interest
and commitment fees with respect thereto) to the Assignee. The Assignor and Assignee shall make all appropriate adjustments in
payments under the Credit Agreement for periods prior to the Effective Date directly between themselves.

 

    	-2-

    	 

    

 

8.
This Assignment and Acceptance shall be governed by, and construed in accordance with, the internal laws of the State of New York
(including Section 5-1401 and Section 5-1402 of the General Obligations law of the State of New York).

 

	 	[Assignor
    Lender]
	 	 
	 	By:	            
	 	Name:	 
	 	Title:	 
	 	 	 
	 	[Assignee
    Lender]
	 	 
	 	By
    :	 
	 	Name:	 
	 	Title
    :	 

 

	[Accepted
    and consented this
	____
    day of _____________
	 	 
	Monmouth
    Real Estate Investment Corporation
	 	 
	By:	              	 
	Name:	 	 
	Title
    	 	]
	 	 
	Accepted
    and consented to by the Administrative
	  Agent
    and L/C Issuer this ___ day of ________
	 	 
	Bank
        of Montreal, as Administrative Agent and

           L/C
        Issuer

	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

 

    	-3-

    	 

    

 

Annex
I

 

to
Assignment and Acceptance

 

The
Assignee hereby purchases and assumes from the Assignor the following interest in and to all of the Assignor’s rights and
obligations under the Credit Agreement as of the effective date.

 

	Facility
    Assigned	 	Aggregate

    Commitment/Loans
 for All Lenders	 	Amount
    of
 Commitment/Loans
 Assigned	 	Percentage
    Assigned
 of Commitment/Loans
	Credit	 	$		 	 	$		 	 	 		%

 

    	-4-

    	 

    

 

Exhibit
G

 

Additional
Guarantor Supplement

______________,
___

 

Bank
of Montreal, as Administrative Agent for the Lenders named in the Credit Agreement dated as of August 27, 2015, among Monmouth
Real Estate Investment Corporation, as Borrower, the Guarantors from time to time party thereto, the Lenders from time to time
party thereto, the L/C Issuer, and the Administrative Agent (the “Credit Agreement”)

 

Ladies
and Gentlemen:

 

Reference
is made to the Credit Agreement described above. Terms not defined herein which are defined in the Credit Agreement shall have
for the purposes hereof the meaning provided therein.

 

The
undersigned, [name of Subsidiary Guarantor], a [jurisdiction of incorporation or organization] hereby elects to
be a “Guarantor” for all purposes of the Credit Agreement, effective from the date hereof. The undersigned
confirms that each of the representations and warranties set forth in Section 6 of the Credit Agreement in respect of a Guarantor
are true and correct in all material respects (where not already qualified by materiality or Material Adverse Effect, otherwise
in all respects) as to the undersigned as of the date hereof and the undersigned shall comply with and perform each of the covenants
and obligations set forth in, and to be bound in all respects by the terms of, the Credit Agreement that are applicable to a Guarantor,
including, without limitation, the provisions of Sections 8 and 13 of the Credit Agreement that are applicable to a Guarantor,
in each case, to the same extent and with the same force and effect as if the undersigned were a signatory party thereto.

 

The
undersigned acknowledges that this Agreement shall be effective upon its execution and delivery by the undersigned to the Administrative
Agent, and it shall not be necessary for the Administrative Agent or any Lender, or any of their Affiliates entitled to the benefits
hereof, to execute this Agreement or any other acceptance hereof. This Agreement shall be construed in accordance with and governed
by the internal laws of the State of New York (including Section 5-1401 and Section 5-1402 of the General Obligations law of the
State of New York).

 

	 	Very
    truly yours,
	 	 
	 	[Name
    of Subsidiary Guarantor]
	 	 
	 	By:	              
	 	Name:	 
	 	Title:	 

 

    	 

    	 		 

    

 

Exhibit
H

 

Commitment
Amount Increase Request

_______________,
____

 

	To:
    	Bank
    of Montreal, as Administrative Agent for the Lenders party to the Credit Agreement dated as of August 27, 2015 (as extended,
    renewed, amended or restated from time to time, the “Credit Agreement”), among Monmouth Real Estate Investment
    Corporation, the Guarantors from time to time party thereto, certain Lenders party thereto, the L/C Issuer, and Bank of Montreal,
    as Administrative Agent

 

Ladies
and Gentlemen:

 

The
undersigned, Monmouth Real Estate Investment Corporation (the “Borrower”) hereby refers to the Credit Agreement
and requests that the Administrative Agent consent to an increase in the aggregate Commitments (the “Commitment Amount
Increase”), in accordance with Section 1.15 of the Credit Agreement, to be effected by [an increase in the Commitment
of [name of existing Lender] [the addition of [name of new Lender] (the “New Lender”) as a Lender under the
terms of the Credit Agreement]. Capitalized terms used herein without definition shall have the same meanings herein as such
terms have in the Credit Agreement.

 

After
giving effect to such Commitment Amount Increase, the Commitment of the [Lender] [New Lender] shall be $_____________.

 

[Include
paragraphs 1-4 for a New Lender]

 

1.
The New Lender hereby confirms that it has received a copy of the Loan Documents and the exhibits related thereto, together with
copies of the documents which were required to be delivered under the Credit Agreement as a condition to the making of the Loans
and other extensions of credit thereunder. The New Lender acknowledges and agrees that it has made and will continue to make,
independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information
as it has deemed appropriate, its own credit analysis and decisions relating to the Credit Agreement. The New Lender further acknowledges
and agrees that the Administrative Agent has not made any representations or warranties about the credit worthiness of the Borrower
or any other party to the Credit Agreement or any other Loan Document or with respect to the legality, validity, sufficiency or
enforceability of the Credit Agreement or any other Loan Document or the value of any security therefor.

 

2.
Except as otherwise provided in the Credit Agreement, effective as of the date of acceptance hereof by the Administrative Agent,
the New Lender (i) shall be deemed automatically to have become a party to the Credit Agreement and have all the rights and obligations
of a “Lender” under the Credit Agreement as if it were an original signatory thereto and (ii) agrees to be
bound by the terms and conditions set forth in the Credit Agreement as if it were an original signatory thereto.

 

    	 

    	 		 

    

 

3.
The New Lender shall deliver to the Administrative Agent an Administrative Questionnaire.

 

[4.
The New Lender has delivered, if appropriate, to the Borrower and the Administrative Agent (or is delivering to the Borrower and
the Administrative Agent concurrently herewith) the tax forms referred to in [Section 12.1] of the Credit Agreement.]*

 

This
Agreement shall be deemed to be a contractual obligation under, and shall be governed by and construed in accordance with, the
internal laws of the state of New York (including Section 5-1401 and Section 5-1402 of the General Obligations law of the State
of New York).

 

The
Commitment Amount Increase shall be effective when the executed consent of the Administrative Agent is received or otherwise in
accordance with Section 1.15 of the Credit Agreement, but not in any case prior to ___________________, ____. It shall be a condition
to the effectiveness of the Commitment Amount Increase that all expenses referred to in Section 1.15 of the Credit Agreement shall
have been paid.

 

The
Borrower hereby certifies that no Default or Event of Default has occurred and is continuing.

 

 

*
Insert bracketed paragraph if New Lender is organized under the law of a jurisdiction other than the United States of America
or a state thereof.

 

    	-2-

    	 

    

 

Please
indicate the Administrative Agent’s consent to such Commitment Amount Increase by signing the enclosed copy of this letter
in the space provided below.

 

	 	Very
    truly yours,
	 	 
	 	Monmouth
                                         Real Estate Investment

                                                                        
                                         Corporation

	 	 
	 	By:
    	                       
	 	Name:
    	 
	 	Title:
    	 
	 	 	 
	 	[New
    or existing Lender Increasing 

        Commitments]
	 	 
	 	By:
    	 
	 	Name:
    	 
	 	Title:
    	 

 

	The
    undersigned hereby consents on 

    this __ day of _____________, _____

    to the above-requested Commitment

    Amount Increase.
	 	 
	Bank
    of Montreal,	 
	   as
    Administrative Agent	 
	 	 	 
	By:	             	 
	Name:	 	 
	Title:	 	 

 

    	-3-

    	 

    

 

Exhibit
I

 

Available
Amount Certificate

 

	To:
    	Bank
    of Montreal, as Administrative

    Agent under, and the Lenders party to,

    the Credit Agreement described below.

 

Pursuant
to the terms of the Credit Agreement dated as of August 27, 2015, among us (the “Credit Agreement”), we submit
this Available Amount Certificate to you and certify that the calculation of the Available Amount set forth below and on any Exhibits
or attachments to this Certificate is true, correct and complete as of the Borrowing Base Determination Date.

 

[Signature
Page Follows]

 

    	 

    	 		 

    

 

The
foregoing certifications, together with the computations set forth in Schedule I hereto are made and delivered this ______ day
of __________________ 201__.

 

	 	Monmouth
    Real Estate Investment 

        Corporation
	 	 
	 	By:
    	                    
	 	Name:
    	 
	 	Title:
    	 

 

    	-5-

    	 

    

 

Schedule
I to Available Amount Certificate

 

 

 

Calculation
of Available Amount and Credit Availability

 

A.
Borrowing Base Determination Date: __________________ ____, 201__.

 

B.
The Available Amount and Credit Availability as of the Borrowing Base Determination Date is calculated as:

 

On
or prior to December 31, 2016:

 

	1.
    Borrowing Base Value as calculated on Exhibit A	 	$		 
	2.
    70% of Line 1 (the “Available Amount”)	 	$		 
	3.
    Commitments	 	$		 
	4.
    Lesser of Line 2 and Line 3	 	$		 
	5.
    Aggregate principal amount of outstanding Loans and L/C Obligations	 	$		 
	6.
    Line 4 minus Line 5 (the “Credit Availability”)	 	$	 

	 

 

On
January 1, 2017 and at all times thereafter:

 

	1.
    Borrowing Base Value as calculated on Exhibit A	 	$		 
	2.
    60% of Line 1	 	$		 
	3.
    Commitments	 	$		 
	4.
    Lesser of Line 2 and Line 3	 	$		 
	5.
    Aggregate principal amount of outstanding Loans and L/C Obligations	 	$		 
	6.
    Line 4 minus Line 5 (the “Credit Availability”)	 	$	 

	 

 

    	-6-

    	 

    

 

Concentration
Limits:

 

	1.
    The percentage of Borrowing Base Value for each Borrowing Base Property is set forth on the attached Schedule	 	 		 
	2.
    No Borrowing Base  Property comprises more than 20% of Borrowing Base Value	 	 	 	 
	3.
    The Borrower is in compliance (circle yes or no)	 	 	yes/no	 
	4.
    The percentage of consolidated Property NOI used to determine the Borrowing Base Value for each Tenant is set forth on the
    attached Schedule	 	 	 	 
	5.
    Except for FedEx Corporation and/or its subsidiaries, no Tenant comprises more than 20% of the consolidated Property NOI used
    to determine the Borrowing Base Value	 	 	 	 
	6.
    The Borrower is in compliance (circle yes or no)	 	 	yes/no	 

 

    	-7-

    	 

    

 

Exhibit
A to Schedule I to Available Amount Certificate

of
Monmouth Real Estate Investment Corporation

 

This
Exhibit A is attached to the Available Amount Certificate of Monmouth Real Estate Investment Corporation for the Borrowing Base
Determination Date of [________], 20__ and delivered to Bank of Montreal, as Administrative Agent, and the Lenders party to the
Credit Agreement referred to therein. The undersigned hereby certifies that the following is a true, correct and complete calculation
of Borrowing Base Value as of the Borrowing Base Determination Date set forth above:

 

	Borrowing
    Base Value of all Eligible Properties: 	$__________    

 

	Property	 	A.
    NOI (as calculated on Exhibit
    B)	 	B.  Capitalization
    Rate	 	C.  A
    multiplied by four (4)	 	C
    divided by B
	 		 	 	$		 	 	 	7.00	%	 	$		 	 	$	 	 
	 	 	 	 	$		 	 	 	7.00	%	 	$		 	 	$		 
	 	 	 	 	$		 	 	 	7.00	%	 	$		 	 	$		 
	 	 	 	 	$		 	 	 	7.00	%	 	$		 	 	$		 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Total:	 	 	$		 

 

    	-8-

    	 

    

 

Exhibit
B to Schedule I to Available Amount Certificate

of
Monmouth Real Estate Investment Corporation

 

This
Exhibit B is attached to the Available Amount Certificate of Monmouth Real Estate Investment Corporation for the Borrowing Base
Determination Date of [________], 20__ and delivered to Bank of Montreal, as Administrative Agent, and the Lenders party to the
Credit Agreement referred to therein. The undersigned hereby certifies that the following is a true, correct and complete calculation
of NOI for all Properties for the Fiscal Quarter most recently ended:

 

	Property	 	Rental
    and Other Income	 	Minus	 	Rental
    Income arising from (a) Straight
    Lining of Rents,
    (b) Bankrupt
    Tenants and (c)
    Defaulted Tenants	 	Minus	 	Expenses
    incurred in connection with Property (including management
    fees, real estate taxes and insurance premiums)	 	equals	 	NOI
	 		 	 	$		 	 	 	- 	 	 	$		 	 	 	-	 	 	$		 	 	 	=		 	$		 
	 	 	 	 	$	 	 	 	 	- 	 	 	$		 	 	 	-	 	 	$		 	 	 	=		 	$		 
	 	 	 	 	$	 	 	 	 	- 	 	 	$		 	 	 	-	 	 	$		 	 	 	=		 	$		 
	 	 	 	 	$	 	 	 	 	- 	 	 	$		 	 	 	-	 	 	$		 	 	 	=		 	$		 

 

	NOI
    for all Properties:	$_____________

 

	 	Monmouth
    Real Estate Investment 

        Corporation
	 	 
	 	By:
    	                    
	 	Name:
    	 
	 	Title:
    	 

 

    	 

    	 		 

    

 

Exhibit
J-1

 

[Form
of]

U.S.
Tax Compliance Certificate

(For
Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

 

Reference
is made to the Credit Agreement dated as of August 27, 2015 (as extended, renewed, amended or restated from time to time, the
“Credit Agreement”) among Monmouth Real Estate Investment Corporation,
the Guarantors from time to time party thereto, the Lenders from time to time party thereto, the L/C Issuer and Bank of Montreal,
as Administrative Agent (the “Administrative Agent”). Terms defined in the Credit Agreement are used
herein with the same meaning.

 

Pursuant
to the provisions of Section 12.1 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and
beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate,
(ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the
Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to
the Borrower as described in Section 881(c)(3)(C) of the Code.

 

The
undersigned has furnished the Administrative Agent and the Borrower with a certificate of its non-U.S. Person status on IRS Form
W-8BEN. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes,
the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all
times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either
the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such
payments.

 

	 	[Name
    of Lender]
	 	 
	 	By:
    	     
	 	Name:
    	 
	 	Title:
    	 

 

	 	Date:		,
    20[_]

 

    	-2-

    	 

    

 

Exhibit
J-2

 

[Form
of]

U.S.
Tax Compliance Certificate

(For
Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

 

Reference
is made to the Credit Agreement dated as of August 27, 2015 (as extended, renewed, amended or restated from time to time, the
“Credit Agreement”) among Monmouth Real Estate Investment Corporation,
the Guarantors from time to time party thereto, the Lenders from time to time party thereto, the L/C Issuer and Bank of Montreal,
as Administrative Agent (the “Administrative Agent”). Terms defined in the Credit Agreement are used
herein with the same meaning.

 

Pursuant
to the provisions of Section 12.1 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and
beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning
of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B)
of the Code, and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C)
of the Code.

 

The
undersigned has furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN. By executing
this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall
promptly so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with a properly
completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned,
or in either of the two calendar years preceding such payments.

 

	 	[Name
    of Participant]
	 	 
	 	By:
    	            
	 	Name:
    	 
	 	Title:
    	 

 

	 	Date:		,
    20[_]

 

    	 

    	 		 

    

 

Exhibit
J-3

 

[Form
of]

U.S.
Tax Compliance Certificate

(For
Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

 

Reference
is made to the Credit Agreement dated as of August 27, 2015 (as extended, renewed, amended or restated from time to time, the
“Credit Agreement”) among Monmouth Real Estate Investment Corporation,
the Guarantors from time to time party thereto, the Lenders from time to time party thereto, the L/C Issuer and Bank of Montreal,
as Administrative Agent (the “Administrative Agent”). Terms defined in the Credit Agreement are used
herein with the same meaning.

 

Pursuant
to the provisions of Section 12.1 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner
of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the
sole beneficial owners of such participation, (iii) with respect such participation, neither the undersigned nor any of its direct
or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its
trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members
is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct
or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C)
of the Code.

 

The
undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of
its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or (ii) an IRS Form W-8IMY accompanied
by an IRS Form W-8BEN from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest
exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes,
the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with
a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the
undersigned, or in either of the two calendar years preceding such payments.

 

	 	[Name
    of Participant]
	 	 
	 	By:
    	            
	 	Name:
    	 
	 	Title:
    	 

 

	 	Date:		,
    20[_]

 

    	 

    	 		 

    

 

Exhibit
J-4

 

[Form
of]

U.S.
Tax Compliance Certificate

(For
Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

 

Reference
is made to the Credit Agreement dated as of August 27, 2015 (as extended, renewed, amended or restated from time to time, the
“Credit Agreement”) among Monmouth Real Estate Investment Corporation,
the Guarantors from time to time party thereto, the Lenders from time to time party thereto, the L/C Issuer and Bank of Montreal,
as Administrative Agent (the “Administrative Agent”). Terms defined in the Credit Agreement are used
herein with the same meaning.

 

Pursuant
to the provisions of Section 12.1 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner
of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its
direct or indirect partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)),
(iii) with respect to the extension of credit pursuant to this Credit Agreement or any other Loan Document, neither the undersigned
nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the
ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect
partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none
of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section
881(c)(3)(C) of the Code.

 

The
undersigned has furnished the Administrative Agent and the Borrower with IRS Form W-8IMY accompanied by one of the following forms
from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or (ii) an IRS Form
W-8IMY accompanied by an IRS Form W-8BEN from each of such partner’s/member’s beneficial owners that is claiming the
portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this
certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned
shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective
certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar
years preceding such payments.

 

	 	[Name
    of Lender]
	 	 
	 	By:
    	     
	 	Name:
    	 
	 	Title:
    	 

 

	 	Date:		,
    20[_]

 

    	 

    	 		 

    

 

Schedule
1

 

Commitments

 

	Lender	 	Commitment
 

	 	 	 
	Bank
    of Montreal	 	$	60,000,00090,000,000	 
	JPMorgan
    Chase Bank, N.A.	 	$	35,000,00055,000,000	 
	Royal
    Bank of Canada	 	$	35,000,00055,000,000	 
	Total:	 	$	130,000,000200,000,000	 

 

    	 

    	 		 

    

 

Schedule
1.1

 

Initial
Borrowing Base Properties

 

	#	Entity	State
    of formation	Principal
    Place of Business	Location
	 	 	 	 	 
	1.
    	Monmouth

    Capital Corporation	NJ	Monmouth
    County, NJ	1078
                                         Bertram Road

        Augusta,
        GA

        Richmond
        County

        (FedEx
        Express)

        

	 	 	 	 	 
	2.
    	Monmouth

    Capital Corporation	NJ	Monmouth
    County, NJ	1900
                                         Interstate Boulevard

        Lakeland,
        FL

        Polk
        County

        (Fed
        Ex Express)

        

	 	 	 	 	 
	3.
    	Monmouth

    Capital Corporation	NJ	Monmouth
    County, NJ	1000
                                         Knell Road

        Montgomery,
        IL

        Kane
        County

        (Home
        Depot)

        

	 	 	 	 	 
	4.
    	Monmouth

    Capital Corporation	NJ	Monmouth
    County, NJ	2300
                                         Westmoreland Street

        Richmond,
        VA

        Henrico
        County

        (Carrier
        Sales )

        

	 	 	 	 	 
	5.
    	Monmouth

    Capital Corporation	NJ	Monmouth
    County, NJ	3404
                                         Cragmont Drive

        Tampa,
        FL

        Hillsborough
        County

        (Tampa
        Bay Grand Prix)

        

	 	 	 	 	 
	6.
    	Monmouth
    Real Estate

    Investment Corporation	MD	Monmouth
    County, NJ	7019
                                         High Grove Boulevard

        Burr
        Ridge, IL

        DuPage
        County

        (Sherwin
        Williams)

        

	 	 	 	 	 
	7.
    	Monmouth
    Real Estate

    Investment Corporation	MD	Monmouth
    County, NJ	1122
                                         Stony Ridge Road

        Charlottesville,
        VA

        Albemarle
        County

        (FedEx
        Express)

        

	 	 	 	 	 
	8.
    	Monmouth
    Real Estate

    Investment Corporation	MD	Monmouth
    County, NJ	2670
                                         Colonial Boulevard

        Ft
        Myers, FL

        Lee
        County

        (FedEx
        Ground)

        

 

    	 

    	 		 

    

 

	9.
    	Monmouth
                                         Real Estate

                                                                                Investment
                                         Corporation
	MD	Monmouth
    County, NJ	2901
                                         Heartland Drive

        Liberty,
        MO

        Clay
        County

        (Holland
        1916 Inc.)

        

	 	 	 	 	 
	10.
    	Monmouth
    Real Estate

    Investment Corporation	MD	Monmouth
    County, NJ	50
                                         Hollow Tree Lane

        Newington,
        CT

        Hartford
        County

        (Kellogg
        Sales Co.)

        

	 	 	 	 	 
	11.
    	Monmouth
    Real Estate

    Investment Corporation	MD	Monmouth
    County, NJ	7130
                                         Q Street

        Omaha,
        NE

        Omaha
        County

        (FedEx
        Express)

        

	 	 	 	 	 
	12.
    	Monmouth
    Real Estate

    Investment Corporation	MD	Monmouth
    County, NJ	8800
                                         Studley Road

        Mechanicsville
        (Richmond), VA

        Hanover
        County

        (FedEx
        Express)

        

	 	 	 	 	 
	13.
    	Monmouth
    Real Estate

    Investment Corporation	MD	Monmouth
    County, NJ	1270
                                         Wilkening Road

        Schaumberg,
        IL

        Cook
        County

        (FedEx
        Express)

        

	 	 	 	 	 
	14.
    	MRC
    I, LLC	WI	Monmouth
    County, NJ	5300
                                         International Drive

        Cudahy,
        WI

        Milwaukee
        County

        (FedEx
        Ground)

        

	 	 	 	 	 
	15.
    	MREIC
    Ridgeland MS, LLC	MS	Monmouth
    County, NJ	105
                                         Business Park Drive

        Ridgeland,
        MS (Jackson)

        Madison
        County

        (Graybar
        Electric Company)

        

	 	 	 	 	 
	16.
    	MREIC
    PA Monaca, LLC	PA	Monmouth
    County, NJ	1729
                                         Pennsylvania Avenue

        Monaca,
        PA

        Beaver
        County

        (NF&M
        International)

        

	 	 	 	 	 
	17.
    	MREIC
    O'Fallon MO, LLC	MO	Monmouth
    County, NJ	831
                                         Lone Star Drive

        O’Fallon,
        MO

        St.
        Charles County

        (Pittsburg
        Glass Works)

        

 

    	-2-

    	 

    

 

	18.
    	MREIC
    Orangeburg

    NY, LLC	NY	Monmouth
    County, NJ	29
                                         Corporate Drive

        Orangeburg,
        NY

        Rockland
        County

        (Kellogg
        Sales Co.)

        

	 	 	 	 	 
	19.
    	MREIC

                                         Richland MS,

                                                                             LLC
	MS	Monmouth
    County, NJ	440
                                         US Highway 49 S.

        Richland
        (Jackson), MS

        Rankin
        County

        (FedEx
        Express)

        

	 	 	 	 	 
	20.
    	MREIC
    Rockford IL, LLC	IL	Monmouth
    County, NJ	5795
                                         Logistics Parkway

        Rockford,
        IL

        Winnebago
        County

        (BE
        Aerospace, Inc.)

        

	 	 	 	 	 
	21.
    	MREIC
    Illinois, LLC	IL	Monmouth
    County, NJ	4472
                                         Technology Drive

        Rockford,
        IL

        Winnebago
        County

        (Sherwin
        Williams)

        

	 	 	 	 	 
	22.
    	MREIC

                                         Urbandale IA,

                                                                             LLC
	IA	Monmouth
    County, NJ	4401
                                         112th Street

        Urbandale,
        IA

        Polk
        County

        (Keystone
        Automotive)

        

 

    	-3-

    	 

    

 

Schedule
6.2

 

[To
be updated by Borrower]

 

Subsidiaries

 

	 	 	Entity	 	State
    of Formation
	1.
    	 	Monmouth
    Capital Corporation	 	New
    Jersey
	2.
    	 	MRC
    I LLC	 	Wisconsin
	3.
    	 	MREIC
    South Carolina, LLC	 	South
    Carolina
	4.
    	 	MREIC
    Illinois, LLC	 	Illinois
	5.
    	 	MREIC
    Lebanon TN, LLC	 	Tennessee
	6.
    	 	BB
    Streetsboro OH, LLC	 	Ohio
	7.
    	 	MREIC
    Lebanon OH, LLC	 	Ohio
	8.
    	 	MREIC
    El Paso TX, LLC	 	Texas
	9.
    	 	MREIC
    Edinburg, TX	 	Texas
	10.
    	 	MREIC
    Corpus Christi TX, LLC	 	Texas
	11.
    	 	MREIC
    Waco TX, LLC	 	Texas
	12.
    	 	Hemingway
    at Halfmoon, LLC	 	Ohio
	13.
    	 	MREIC
    Olive Branch MS, LLC	 	Mississippi
	14.
    	 	MREIC
    Oklahoma City OK, LLC	 	Oklahoma
	15.
    	 	MREIC
    Olive Branch MS II, LLC	 	Mississippi
	16.
    	 	MREIC
    Spring TX, LLC	 	Texas
	17.
    	 	MREIC
    Buckner KY, LLC	 	Kentucky
	18.
    	 	MREIC
    Livonia MI, LLC	 	Michigian
	19.
    	 	MREIC
    Roanoke VA, LLC	 	Virgina
	20.
    	 	MREIC
    Rochester MN, LLC	 	Delaware
	21.
    	 	MRECI
    Green Bay WI, LLC	 	Delaware
	22.
    	 	MREIC
    PA Altoona, LLC	 	Delaware
    
	23.
    	 	MREIC
    Edwardsville KS, LLC	 	Kansas
	24.
    	 	MREIC
    O'Fallon MO, LLC	 	Missouri
	25.
    	 	MREIC
    Richland MS, LLC	 	Mississippi
	26.
    	 	MREIC
    Ridgeland MS, LLC	 	Mississippi
	27.
    	 	MREIC
    Urbandale IA, LLC	 	Iowa
	28.
    	 	MREIC
    Orangeburg NY, LLC	 	New
    York
	29.
    	 	MREIC
    Winston Salem NC, LLC	 	North
    Carolina
	30.
    	 	MREIC
    Richfield OH, LLC	 	Ohio
	31.
    	 	MREIC
    Tulsa OK, LLC	 	Delaware
	32.
    	 	MREIC
    Sauget IL, LLC	 	Delaware
	33.
    	 	MREIC
    Indianapolis IN, LLC	 	Delaware
	34.
    	 	MREIC
    Tyler TX, LLC	 	Delaware
	35.
    	 	MREIC
    PA Monaca, LLC	 	Pennsylvania
    

 

    	 

    	 		 

    

 

	36.
    	 	MREIC
    Jacksonville FLA, LLC	 	Florida
	37.
    	 	MREIC
    Kansas City MO, LLC	 	Missouri
	38.
    	 	MREIC
    Frankfort KY, LLC	 	Kentucky
	39.
    	 	MREIC
    Rockford IL, LLC	 	Illinois
	40.
    	 	MREIC
    Indianapolis IN II, LLC	 	Indianapolis
	41.
    	 	MREIC
    Monroe OH, LLC	 	Ohio
	42.
    	 	MREIC
    Concord NC, LLC	 	North
    Carolina
	43.
    	 	MREIC
    Fort Worth TX, LLC	 	Delaware
	44.
    	 	MREIC
    Orlando FL, LLC	 	Delaware
	45.
    	 	MREIC
    Covington LA, LLC	 	Delaware
	46.
    	 	MREIC
    Everett WA, LLC	 	Delaware
	47.
    	 	MREIC
    Olathe KS LLC	 	Delaware
	48.
    	 	MREIC
    Cincinnati OH LLC	 	Ohio
	49.
    	 	MREIC
    Buffalo NY, LLC	 	Delaware
	50.
    	 	MREIC
    Fort Myers FL, LLC	 	Delaware
	51.
    	 	MREIC
    Grand Rapids MI, LLC	 	Delaware
	52.
    	 	MRIEC
    PA Pittsburgh, LLC	 	Pennsylvania
    
	53.
    	 	MREIC
    Colorado Springs CO, LLC	 	Colorado
	54.
    	 	MREIC
    Louisville KY, LLC	 	Kentucky
	55.
    	 	MREIC
    Concord NC II, LLC	 	North
    Carolina
	56.
    	 	MREIC
    Miami FL, LLC	 	Florida
	57.
    	 	MREIC
    Aiken SC, LLC	 	Delaware

 

    	-2-

    	 

    

 

Schedule
6.11

 

Litigation

 

[None]

 

    	 

    	 		 

    

 

Schedule
8.7

 

Liens

The
following constitute Liens existing on the First Amendment Closing Date on Properties
owned by Borrower or a Guarantor, which Properties are not included in the Borrowing Base Value and which secure the debt described
herein:

 

	#	 	Debtor	 	Recourse/non
    or no

    guaranty	 	Property
    Locations	 	Principal

    Balance
    (as

    of
    June
    2015)	 	Maturity
    Date
	1.	 	Monmouth
    Real Estate Investment Corporation (“MREIC”)	 	Non-Recourse	 	St.
    Joseph MOGriffin,
    GA	 	661,223	 	3/1/2016
	2.	 	MREIC	 	Non-Recourse	 	Beltsville
    Jacksonville, FL	 	576,481	 	5/1/2016
	 	 	MREIC	 	Recourse	 	Beltsville,
    MD (SUN)	 	4,816,807	 	5/1/2016
	 	 	MREIC	 	Non-Recourse	 	Jacksonville,
    FL (interest only)	 	 	 	 
	3.	 	MREIC	 	Non-Recourse	 	Griffin
    GAMonroe, NC	 	7,135,091	 	10/1/2016
	4.	 	MREIC	 	Non-Recourse	 	Granite
    CityElgin,
    IL	 	1,386,461	 	11/1/2016
	5.	 	MREIC	 	Non-Recourse	 	Jacksonville
    FLHanahan, SC (Norton)	 	483,998	 	12/1/2016
	6.	 	MREIC	 	Non-Recourse	 	Orion,
    MI	 	 	 	 
	 	 	MREIC	 	Non-Recourse	 	Jacksonville,
    FL (interest only)	 	1,300,000	 	12/1/2016
	7.
    6.	 	MREIC	 	Non-Recourse	 	Monroe
    NCPunta Gorda, FL	 	624,024	 	12/1/2016
	8.
    7.	 	MREIC	 	Non-Recourse	 	Elgin
    ILCocoa, FL	 	963,165	 	5/1/2017
	8.	 	MREIC	 	Non-Recourse	 	Hanahan,
    SC (Norton)	 	6,019,330	 	5/1/2017
	9.	 	MREIC	 	Non-Recourse	 	West
    Chester Twp, OH	 	 	 	 
	10.
    9.	 	MREIC	 	Non-Recourse	 	Orion
    MIOrlando, FL	 	9,219,028	 	8/1/2017
	11.
    10.	 	MREIC	 	Non-Recourse	 	Punta
    Gorda FLDenver,
    CO	 	2,140,264	 	10/1/2017
	11.		MREIC		Non-Recourse		Cocoa,
    FL		5,436,332		12/1/2017
	12.		MREIC		Non-Recourse		West
    Chester Twp, OH		2,361,098		6/1/2018
	13.		MREIC		Non-Recourse		Orlando,
    FL		4,625,697		10/1/2018
	14.		MREIC		Non-Recourse		Denver,
    CO		1,425,198		11/1/2019
	12.
    15.	 	MREIC	 	Non-Recourse	 	Hanahan,
    SC (FDX Gr)	 	1,405,972		1/21/2020
	13.
    16.	 	MREIC	 	Non-Recourse	 	Colorado
    Springs, CO	 	1,666,175	 	1/1/2021
	17.		MREIC		Recourse
    - will be paid off shortly after LOC closes		Romulus,
    MI		2,311,845		7/1/2021
	14.
    18.	 	MREIC	 	Non-Recourse	 	Topeka,
    KS	 	1,645,653	 	8/10/2021
	15.
    19.	 	MREIC	 	Non-Recourse	 	Houston,
    TX	 	3,629,269	 	9/10/2022
	16.
    20.	 	MREIC	 	Non-Recourse	 	Tolleson,
    AZ	 	6,225,250	 	11/1/2022
	17.
    21.	 	MREIC	 	Non-Recourse	 	Memphis,
    TN	 	7,601,089	 	1/1/2024
	18.
    22.	 	MREIC	 	Non-Recourse	 	Carrolton/Dallas,
    TX	 	8,803,688	 	2/1/2025
	19.
    23.	 	Monmouth
    Capital Corporation (“MCC”)	 	Non-Recourse	 	Bedford
    Heights, OH	 	2,905,350	 	4/1/2017
	20.
    24.	 	MCC	 	Non-Recourse	 	Chattanooga,
    TN	 	1,828,394	 	5/1/2017
	21.
    25.	 	MCC	 	Non-Recourse	 	Cheektowaga,
    NY	 	709,912	 	10/1/2017
	22.
    26.	 	MCC	 	Non-Recourse	 	Kansas
    City, MO	 	2,415,661	 	8/1/2017
	23.
    27.	 	MREIC	 	Recourse
    – 10% of then principal if FDX vacates	 	Tampa,
    FL (FDX) (Royal Neighbors)	 	4,188,527	 	4/1/2018
	24.
    28.	 	MREIC	 	Non-Recourse	 	Tampa,
    FL (FDX Gr)	 	7,476,966	 	3/1/2019
	25.
    29.	 	MREIC	 	Non-Recourse	 	Augusta,
    GA (FDX Gr)	 	1,022,709	 	2/1/2020
	26.
    30.	 	MREIC	 	Non-Recourse	 	Roanoke,
    VA	 	2,891,930	 	5/30/2017
	27.
    31.	 	MREIC	 	Non-Recourse	 	Edwardsville,
    KS	 	1,013,206	 	7/1/2017
	28.
    32.	 	MREIC	 	Non-Recourse	 	Richfield,
    OH	 	3,495,926	 	1/1/2018
	29.
    33.	 	MREIC	 	Non-Recourse	 	Huntsville,
    AL	 	1,038,308	 	3/1/2020
	30.
    34.	 	MREIC	 	Recourse	 	500,000
    shares of UMH Properties, Inc. common stock	 	2,668,708	 	3/9/2017
	31.
    35.	 	MREIC	 	Recourse	 	200,000
    shares of UMH Properties, Inc. Series A preferred stock	 	2,423,391	 	11/29/2016

 

    	 

    	 		 

    

 

Schedule
8.8

 

Investments

 

	 	 	Type
    of Investment	 	Name	 	Number
    of Equity 

    Securities Purchased
	1	 	Preferred
    Stock	 	Campus
    Crest Cmntys SrA	 	10,000
    
	2	 	Preferred
    Stock	 	CBL
    & Assoc 7.375% PFD Ser D	 	30,000
    
	3	 	Preferred
    Stock	 	CBL
    & Assoc 6.625% PFD Ser E	 	70,000
    
	4	 	Preferred
    Stock	 	Cedar
    Realty Trust Inc Ser B Pfd	 	30,600
    
	5	 	Preferred
    Stock	 	Chesapeake
    Lodging 7.75 Pfd Ser A	 	20,000
    
	6	 	Preferred
    Stock	 	Corporate
    Office 7.375 Pfd Ser L	 	26,688
    
	7	 	Preferred
    Stock	 	Dynex
    Captial Ser A Cum Pfd 8.5	 	10,000
    
	8	 	Preferred
    Stock	 	EPR
    Properties 6.625%	 	30,000
    
	9	 	Preferred
    Stock	 	General
    Growth Prop 6.375%	 	30,000
    
	10	 	Preferred
    Stock	 	Grace
    Acqu I Pfd B	 	29,000
    
	11	 	Preferred
    Stock	 	Investors
    Real Estate 7.95% Pfd Series B	 	20,000
    
	12	 	Preferred
    Stock	 	Istar
    Financial 7.875SrE	 	3,400
    
	13	 	Preferred
    Stock	 	Istar
    Financial  In Pfd D	 	3,468
    
	14	 	Preferred
    Stock	 	Istar
    Financial SR F	 	20,000
    
	15	 	Preferred
    Stock	 	Istar
    Financial 7.5%	 	41,383
    
	16	 	Preferred
    Stock	 	Kilroy
    Realty 6.375% Pfd Series H	 	40,000
    
	17	 	Preferred
    Stock	 	Pennsylvania
    REIT 8.25 Series A	 	44,000
    
	18	 	Preferred
    Stock	 	Pennsylvania
    REIT 7.375 Series B	 	30,455
    
	19	 	Preferred
    Stock	 	SL
    Green Realty 6.5 Pfd Series I	 	40,000
    
	20	 	Preferred
    Stock	 	Stag
    Industrial Inc. 6.625%	 	40,000
    
	21	 	Preferred
    Stock	 	Summit
    Hotel 7.875%	 	10,000
    
	22	 	Preferred
    Stock	 	Sun
    Communities 7.125% Ser A	 	20,000
    
	23	 	Preferred
    Stock	 	Supertel
    Hospitality SR A	 	17,000
    
	24	 	Preferred
    Stock	 	Taubman
    Centers 6.5% PFD Series J	 	50,000
    
	25	 	Preferred
    Stock	 	UMH
    PPTYS - Sr A	 	200,000
    
	26	 	Common
    Stock	 	Getty
    Realty Corp New	 	50,000
    
	27	 	Common
    Stock	 	Gladstone
    Commercial Corp	 	65,000
    
	28	 	Common
    Stock	 	Gov't
    Properties Income Trust	 	270,000
    
	29	 	Common
    Stock	 	Mack
    Cali Realty Corp(CLI	 	130,000
    
	30	 	Common
    Stock	 	One
    Liberty PPTYS Inc	 	10,000
    
	31	 	Common
    Stock	 	Select
    Income REIT	 	270,000
    
	32	 	Common
    Stock	 	Senior
    Housing Prop Trust	 	178,000
    
	33	 	Common
    Stock	 	UMH
    Properties	 	893,491Exhibit 4.5

 

 

GDS HOLDINGS LIMITED

 

SIXTH AMENDED AND RESTATED

MEMBERS AGREEMENT

 

 

May 19, 2016

 

 

GDS HOLDINGS LIMITED
 SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

This Sixth Amended and Restated Members Agreement (the “Agreement”) is made as of May 19, 2016 by and among GDS Holdings Limited, a company organized and existing under the laws of the Cayman Islands (the “Company”) and the shareholders of the Company (which shall comprise of the Series A Shareholders, Series B Shareholders, the Series A* Shareholders, the Series B1 Shareholders, the Series B2 Shareholders, the Series B4 Shareholder, the Series B5 Shareholder, the Key Founders, the Series C Shareholder and the Other Shareholders) (each as defined below).

 

RECITALS

 

A.            The Company, the Series C Shareholder, other Preferred Shareholders, the Key Founders and the Best Million Group Limited, entered into a Fifth Amended and Restated Members Agreement on December 18, 2014 (the “Original Agreement”).

 

B.            Brilliant Wise Holdings Limited (“Brilliant Wise”) has agreed to repurchase certain shares of Brilliant Wise held by its shareholders and in consideration, Brilliant Wise shall transfer all the shares held by Brilliant Wise in the Company to the shareholders of Brilliant Wise in accordance with the terms and conditions of a Share Swap Agreement entered into by and among the Company, Brilliant Wise Holdings Limited and the shareholders of Brilliant Wise Holdings Limited on May 19, 2016 (the “Share Swap Agreement”).

 

C.            Best Million Group Limited has agreed to transfer certain number of shares held by Best Million Group Limited in the Company to Fortune Million International Corporation and Linmax Asia Limited (the “Share Transfer”).

 

D.            Upon completion of the Share Transfer and the transaction contemplated by the Share Swap Agreement, Brilliant Wise Holdings Limited shall no longer be shareholder of the Company, and whereas certain Persons, which include, EDC Group Limited, GDS Enterprises Limited, SBGD Investment Limited, Ofira Capital Limited, Fortune Million International Corporation and Linmax Asia Limited shall become new shareholders of the Company, and, the parties hereto desire to enter into this Agreement, which shall amend, restate and supersede the Original Agreement in its entirety.

 

NOW, THEREFORE, in consideration of the foregoing premises and certain other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1

 

1.              Definitions

 

1.1                       Certain Defined Terms.  As used in this Agreement, the following terms shall have the following respective meanings:

 

“Affiliate” shall mean, in respect of a Person, any other Person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Person, and (i) in the case of a natural person, shall include, without limitation, such Person’s spouse, parents, children, siblings, mother-in-law and father-in-law and brothers and sisters-in-law, (ii) in the case of a Preferred Shareholder, shall include (A) any Person who holds shares as a nominee for such Preferred Shareholder, (B) any shareholder of such Preferred Shareholder, (C) any Person which has a direct and indirect interest in such Preferred Shareholder (including, if applicable, any general partner or limited partner) or any fund manager thereof; (D) any Person that directly or indirectly controls, is controlled by, under common control with, or is managed by such Preferred Shareholder or its fund manager, (E) the relatives of any individual referred to in (B) above, and (F) any trust controlled by or held for the benefit of such individuals.  For the purpose of this definition, “control” (and correlative terms) shall mean the direct or indirect power, whether by contract, equity ownership or otherwise, to direct the policies or management of a Person; provided that the direct or indirect ownership of twenty-five percent (25%) or more of the voting power of a Person is deemed to constitute control of that Person.

 

“Articles” shall mean the Company’s Articles of Association, as amended from time to time.

 

“Audit Committee” shall have the meaning as defined in Section 2.11(b).

 

“Board” and “Board of Directors” shall mean the Board of Directors of the Company.

 

“Business” shall have the meaning as defined in Section 2.14(b).

 

“Business Day” shall have the meaning as defined in the Articles.

 

“Buyer” shall have the meaning as defined in Section 2.5.

 

“CEO” shall mean the chief executive officer of the Company.

 

“Claim Notice” shall have the meaning as defined in Section 3.10(c).

 

2

 

“Closing” shall mean completion of the Share Transfer and the transaction contemplated by the Share Swap Agreement.

 

“Code” shall mean the Internal Revenue Code of 1986, U.S.A. as amended from time to time.

 

“Commission” shall mean the United States Securities and Exchange Commission or any other federal agency at the time administering the Securities Act or other governmental agency administering the securities laws in the jurisdiction in which the Company’s securities are registered or being registered.

 

“Conversion Price” shall have the meaning as defined in the Articles.

 

“Conversion Shares” shall mean the Ordinary Shares issued or issuable pursuant to conversion of the Preferred Shares.

 

“Convertible Securities” shall have the meaning as defined in the Articles.

 

“Disclosing Party” shall have the meaning as defined in Section 6.4.

 

“Dispute” shall mean any dispute, controversy or claim arising out of or in connection with this Agreement (including any issue as to the existence, validity, interpretation, construction, performance, breach or termination of this Agreement.

 

“D&O Insurance” shall have the meaning as defined in Section 2.2.

 

“Drag-Along Sale” shall have the meaning as defined in Section 2.5.

 

“Drag Completion Date” shall have the meaning as defined in Section 2.5.

 

“Drag Notice” shall have the meaning as defined in Section 2.5.

 

“Dragged Member” shall have the meaning as defined in Section 2.5.

 

“Dragged Shares” shall have the meaning as defined in Section 2.5.

 

“EBITDA” shall mean earnings before interest, taxes, depreciation and amortization.

 

“ESOP” shall have the meaning as defined in Section 2.12.

 

3

 

“Everbright” shall mean Seabright SOF (I) Paper Limited and Forebright Management Limited.

 

“Exchange Act” shall mean the United States Securities Exchange Act of 1934, as amended.

 

“Executive Committee” shall have the meaning as defined in Section 2.11(d).

 

“Executive Committee Members” shall have the meaning as defined in Section 2.11(d).

 

“Existing Preferred Share Director” shall have the meaning as defined in Section 2.11(a).

 

“Existing Preferred Shareholders” shall mean all the holders of the then outstanding Existing Preferred Shares from time to time; and “Existing Preferred Shareholder” shall mean any of them.

 

“Existing Preferred Shares” shall mean Series A Shares, Series A* Shares, Series B Shares, Series B1 Shares, Series B2 Shares, Series B4 Shares, and Series B5 Shares of the Company, issued and outstanding immediately following the Closing.

 

“Form S-3/F-3” shall have the meaning as defined in Section 3.5(a)(iii).

 

“Fully Participating Preferred Shareholders” shall have the meaning as defined in Section 4.1(b)(ii).

 

“Group Company” shall mean the Company or a Subsidiary, including those listed in Exhibit D attached hereto, and “Group Companies” shall mean all of them.

 

“HKIAC” shall mean the Hong Kong International Arbitration Centre.

 

“Holder” shall mean (i) any Preferred Shareholder holding Registrable Securities, and (ii) any Person holding Registrable Securities to whom the rights under Section 3 have been transferred in accordance with Section 3.17 hereof; provided, however, that for the purpose of this Agreement, a holder of the Preferred Shares shall be deemed to be a Holder of the Registrable Securities issuable upon conversion of such Preferred Shares, as the case may be, and that Holders of Registrable Securities shall not be required by this Agreement to convert their Preferred Shares into Ordinary

 

4

 

Shares in order to exercise registration rights hereunder, until immediately prior to the closing of the relevant offering to which the registration relates.

 

“Hong Kong” shall mean the Hong Kong Special Administrative Region of the People’s Republic of China.

 

“IFRS” shall mean the International Financial Reporting Standards.

 

“Initiating Holders” shall mean any Holders who in the aggregate hold at least twenty percent (20%) of the outstanding Registrable Securities.

 

“IPO” shall mean the Company’s first public offering of any of its securities to the general public pursuant to (i) a registration statement filed under the Securities Act, or (ii) the securities laws applicable to an offering of securities in another jurisdiction pursuant to which such securities will be listed.

 

“IT’ shall have the meaning as defined in Section 2.14(b).

 

“Key Founders” shall mean the individual and entities listed on Exhibit B attached hereto.

 

“Key Founders’ Shares” shall mean the Ordinary Shares held on record and/or beneficially by the Key Founders as of the date of this Agreement, or subsequently acquired by the Key Founders, as applicable.

 

“Members” shall mean both the Preferred Shareholders and the Ordinary Shareholders.

 

“Memorandum” shall mean the Company’s Memorandum of Association as amended from time to time.

 

“New Securities” shall have the meaning as defined in Section 4.1.

 

“Non-Disclosing Parties” shall have the meaning as defined in Section 6.4.

 

“Notice” shall have the meaning as defined in Section 4.1(a).

 

“Option” shall have the meaning as defined in the Articles.

 

“Ordinary Shareholders” shall mean the holders of the Ordinary Shares.

 

“Ordinary Shares” shall mean Ordinary Shares of the Company.

 

5

 

“Ordinary Share Director(s)” shall have the meaning as defined in Section 2.11(a).

 

“Original Agreement” shall have the meaning as defined in Recital A.

 

“Original Purchase Price” shall have the meaning as defined in the Articles.

 

“Other Shareholders” shall mean the entities as identified in Exhibit C hereto.

 

“Overallotment New Securities” shall have the meaning as defined in Section 4.1(b) (ii).

 

“Overallotment Notice” shall have the meaning as defined in Section 4.1(b)(ii).

 

“Permitted Disclosees” shall have the meaning as defined in Section 6.3(c)(i).

 

“Person” shall mean an individual, corporation, partnership, limited liability company, association, trust, unincorporated organization, or other entity.

 

“PFIC” shall mean a passive foreign investment company.

 

“PRC” shall mean the People’s Republic of China excluding, for the purpose of this Agreement, the Special Administrative Regions of Hong Kong and Macau and the territory of Taiwan.

 

“Preferred Shareholders” shall mean both the Existing Preferred Shareholders and the Series C Shareholder.

 

“Preferred Shares” shall mean both the Series C Shares and the Existing Preferred Shares.

 

“Preferred Share Director(s)” shall have the meaning as defined in Section 2.11(a).

 

“Qualified IPO” shall mean a firm commitment underwritten IPO on an internationally recognized securities exchange (i) with gross cash proceeds to the Company of at least US$100 million, (ii) at an issue price per share being not less than twenty-five percent (25%) above US$1.036522, as adjusted for any Recapitalization from time to time, and (iii) resulting in a

 

6

 

free float of not less than twenty percent (20%) of the Company’s share capital.

 

“Recapitalization” shall mean any share split, share dividend, share combination or consolidation, recapitalization, reclassification or other similar event in relation to the shares of the Company.

 

“Refusal Period” shall have the meaning as defined in Section 4.1(b)(i).

 

“Registrable Securities” shall mean (i) Conversion Shares; (ii) Ordinary Shares of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, any of the foregoing; (iii) any other Ordinary Shares owned or hereafter acquired by any Preferred Shareholder; (iv) Ordinary Shares issued or issuable in respect of the Ordinary Shares described in (i) to (iii) above upon any Recapitalization or otherwise issued or issuable with respect to such Ordinary Shares; and (v) any depositary receipts issued by an institutional depositary upon deposit of any of the foregoing.  Notwithstanding the foregoing, “Registrable Securities” shall not include any Registrable Securities sold by a Person in a transaction in which rights under Section 3 are not assigned in accordance with this Agreement or any Registrable Securities sold in a public offering, whether sold pursuant to Rule 144, or in a registered offering, or otherwise.

 

“Registrable Securities then outstanding” (and similar expressions herein) shall mean the number of Ordinary Shares that are Registrable Securities that are then (i) issued and outstanding, or (ii) issuable pursuant to the conversion of then outstanding Preferred Shares.

 

“register,” “registered” and “registration” shall refer to (i) a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering of the effectiveness of such registration statement, or (ii) in the context of a public offering in a jurisdiction other than the United States, a registration, qualification or filing under the applicable securities laws of such other jurisdiction.

 

“Registration Expenses” shall mean all expenses incurred by the Company in complying with Sections 3.5, 3.6 and 3.7 hereof, including, without limitation, all registration, qualification and filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company, blue sky fees and expenses, the expense of any special audits incident to or required by any such registration and the reasonable fees and disbursements of one counsel for all Holders, and any fee charged by any depositary bank,

 

7

 

transfer agent or share registrar, but excluding Selling Expenses.  For the avoidance of doubt and subject to Section 3.5(d), the Company shall pay all expenses incurred in connection with a registration pursuant to Section 3 notwithstanding the cancellation or delay of the registration proceeding for any reason.

 

“Related Party” shall mean any Person (i) that holds a Material Interest in any Group Company, (ii) in which a Group Company holds a Material Interest, (iii) that is otherwise an Affiliate of any Group Company, (iv) that serves (or has within the past twelve (12) months served) as a director, officer or employee of any Group Company, or (v) who is a member of the family of any individual included in any of the foregoing.  For the purpose of this definition, “Material Interest” shall mean a direct or indirect ownership of voting shares representing at least one percent (1%) of the outstanding voting power or equity of any Group Company.

 

“Remuneration Committee” shall have the meaning as defined in Section 2.11.

 

“Request Notice” shall have the meaning as defined in Section 3.5(a).

 

“Restricted Securities” shall mean the securities of the Company required to bear the legend set forth in Section 3.3 hereof.

 

“Rule 144” shall have the meaning as defined in Section 3.4.

 

“Rule 145” shall have the meaning as defined in Section 3.5(a)(i).

 

“Rules” shall mean the Hong Kong International Arbitration Centre Administered Arbitration Rules.

 

“Sale Agreement” shall have the meaning as defined in Section 2.5.

 

“Sale Transaction” shall have the meaning as defined in the Articles.

 

“SBCVC” shall mean collectively SBCVC Fund II, L.P., SBCVC Venture Capital (软库博辰创业投资企业), SBCVC Fund III, L.P., SBCVC Fund II-Annex, L.P., and SBCVC Company Limited.

 

“Seabright SOF” shall mean Seabright SOF (I) Paper Limited.

 

“Securities Act” shall mean the United States Securities Act of 1933 as amended from time to time, also as the “Act”.

 

8

 

“Selling Expenses” shall mean all underwriting discounts and selling commissions.

 

“Selling Member” shall have the meaning as defined in Section 2.5.

 

“Senior Management Personnel” shall mean CEO, the chief financial officer, and all other senior officers of each Group Company reporting directly to the CEO.

 

“Series A Shareholders” shall mean the holders of Series A Shares of the Company as listed in Exhibit A attached hereto.

 

“Series A Shares” shall mean shares in the capital of the Company of US$0.00005 nominal or par value designated as Series A Preferred Shares and having the rights provided for in the Articles.

 

“Series A* Shareholders” shall mean the holders of Series A* Shares of the Company as listed in Exhibit A-2 attached hereto.

 

“Series A* Shares” shall mean shares in the capital of the Company of US$0.00005 nominal or par value designated as Series A* Preferred Shares and having the rights provided for in the Articles.

 

“Series B Shareholders” shall mean the holders of Series B Shares of the Company as listed in Exhibit A-1 attached hereto.

 

“Series B Shares” shall mean shares in the capital of the Company of US$0.00005 nominal or par value designated as Series B Preferred Shares and having the rights provided for in the Articles.

 

“Series B1 Shareholders” shall mean the holders of Series B1 Shares of the Company as listed in Exhibit A-3 attached hereto.

 

“Series B1 Shares” shall mean shares in the capital of the Company of US$0.00005 nominal or par value designated as Series B1 Preferred Shares, and having the rights provided for in the Articles.

 

“Series B2 Shareholders” shall mean the holders of Series B2 Shares of the Company as listed in Exhibit A-3 attached hereto.

 

“Series B2 Shares” shall mean shares in the capital of the Company of US$0.00005 nominal or par value designated as Series B2 Preferred Shares, and having the rights provided for in the Articles.

 

9

 

“Series B4 Shareholder” shall mean the holder of Series B4 Shares of the Company as listed in Exhibit A-3 attached hereto.

 

“Series B4 Shares” shall mean shares in the capital of the Company of US$0.00005 nominal or par value designated as Series B4 Preferred Shares, and having the rights provided for in the Articles.

 

“Series B5 Shareholder” shall mean the holder of Series B5 Shares of the Company as listed in Exhibit A-3 attached hereto.

 

“Series B5 Shares” shall mean the series B5 preferred shares of the Company.

 

“Series C Director(s)” shall have the meaning as defined in Section 2.11(a).

 

“Series C Shareholder” shall mean the holder of the Series C Shares of the Company as listed in Exhibit A-4 attached hereto.

 

“Series C Shares” shall mean the shares in the capital of the Company of US$0.00005 nominal or par value designated as Series C Preferred Shares, and having the rights provided for in the Articles.

 

“Share Swap Agreement” shall have the meaning as defined in Recital B.

 

“Shares” shall mean both the Ordinary Shares and the Preferred Shares; and “Share” shall mean any one of them.

 

“Share Transfer” shall have the meaning as defined in Recital C.

 

“STTC” shall mean STT Communications Ltd., a company incorporated with limited liability in Singapore.

 

“Subsidiary” shall mean any corporation, partnership, trust or other entity of which the Company directly or indirectly owns at the time shares or interests representing a majority of the voting power of such corporation, partnership, trust or other entity ( including those listed in Exhibit D attached hereto and “Subsidiaries” shall mean those subsidiaries.

 

“Subsidiary Board” shall have the meaning as defined in Section 2.11(e).

 

“Terms” shall have the meaning as defined in Section 6.1.

 

“Territory” shall have the meaning as defined in Section 5.2(a)(i).

 

10

 

“Transaction Agreements” shall mean this Agreement, the Sixth Amended and Restated Right of First Refusal and Co-Sale Agreement, the Sixth Amended and Restated Voting Agreement, respectively dated on May 19, 2016, and the Series C Preferred Shares Subscription and Purchase Agreement dated July 29, 2014.

 

“Tribunal” shall have the meaning as defined in Section 7.3.

 

“U.S. GAAP” shall mean the generally accepted accounting principles in the United States.

 

“VIE Entities” shall mean collectively, (i) Beijing Wanguo Chang’An Science & Technology Co., Ltd. (北京万国长安科技有限公司), and (ii) Shanghai Shu’An Data Solutions Co., Ltd. (上海曙安数据服务有限公司), a company incorporated and existing under the laws of PRC, and a “VIE Entity” shall mean either of these VIE Entities.

 

“Violation” shall have the meaning as defined in Section 3.10(a).

 

2.                  Covenants of the Group Companies.

 

2.1                    Financial Information; Inspection Rights.

 

(a)                 Financial Information.  The Company covenants and agrees that, commencing on the date of Closing, and for so long as any Preferred Shareholder holds any Preferred Shares or any Ordinary Shares issued upon conversion of any Preferred Shares, the Company will deliver (in accordance with the provisions set forth in Section 7.7 hereof) to such Preferred Shareholder the following with respect to each Group Company and any other corporation, partnership, trust or other entity of which any of the Group Companies directly or indirectly owns at the time shares or interests representing a majority of the voting power of such corporation, partnership, trust or other entity:

 

(i)                                     As soon as practicable after the end of each fiscal year, and in any event within ninety (90) days thereafter, annual consolidated financial statements (including a balance sheet, income statement and cash flow statement) of the Group Companies for or as of the end of such fiscal year, prepared in accordance with the U.S. GAAP or with the IFRS and audited and certified by an accounting firm that is one of the “Big-4”

 

11

 

international accounting firms and is acceptable to all the Preferred Share Directors.

 

(ii)                                  As soon as practicable, and in any event within thirty (30) days, after the end of each quarterly accounting period in each fiscal year of the Company, unaudited consolidated quarterly financial statements (including a balance sheet, income statement and cash flow statement) of the Group Companies.

 

(iii)                               As soon as practicable, and in any event within thirty (30) days, after the end of each month, unaudited consolidated monthly financial statements (including a balance sheet, income statement and cash flow statement) of the Group Companies, including details of sales, capital expenditure, cash balance and net income; provided that such monthly financial statements shall be subject to normal year-end audit adjustments in the ordinary course.

 

(iv)                              As soon as practicable, and in any event at least thirty (30) days prior to the beginning of each fiscal year, an annual, consolidated budget of the Group Companies for such fiscal year.

 

All financial statements to be provided to the Preferred Shareholders pursuant to this Section 2.1 shall be prepared in the English language in accordance with the accounting standard under which the Company prepares audited financial statements to be delivered pursuant to Section 2.1(a)(i) above and shall consolidate all of the consolidated financial results of the Group Companies.

 

(b)                Other Information and Inspection Rights.  The Company covenants and agrees that, commencing from Closing, and for so long as any Preferred Shares are outstanding, the Company will, upon receipt of a prior written notice, afford to each Preferred Shareholder and to such Preferred Shareholder’s accountants, counsel and other representatives reasonably acceptable to the Company, reasonable access during normal business hours to each Group Company’s respective properties, books and records, and to afford each such Preferred Shareholder the right to discuss the business, operations and conditions of each Group Company with their respective officers, directors, key employees, accountants (including internal and external auditors), counsel and other representatives.  Each such Preferred Shareholder shall have such other access to management (including advisors and internal and external auditors) of, and information regarding, the Group Companies

 

12

 

as may be requested, whether for it to comply with its (i) obligations under applicable laws and regulations, (ii) financial and internal reporting and accounting requirements, and (iii) as required by any governmental or regulatory bodies, or otherwise.  The Preferred Shareholders may exercise their rights under this Section 2.1(b) only for the purpose reasonably related to their interests under this Agreement and related agreements.

 

(c)                 The Preferred Shareholders’ rights under this Section 2.1 may be assigned to (i) a transferee or assignee in connection with any transfer or assignment by such Preferred Shareholder, (ii) any partner or retired partner of any such Preferred Shareholder which is a partnership (or any member or retired member of any such Preferred Shareholder which is a limited liability company), (iii) any affiliated fund (United States based or non-United States based) of any such Preferred Shareholder, (iv) any family member or trust for the benefit of any such Preferred Shareholder which is an individual, or (v) any Affiliate of such Preferred Shareholder; provided in each case that: (A) such transfer may otherwise be effected in accordance with applicable securities laws, the Articles and the Sixth Amended and Restated Right of First Refusal and Co-Sale Agreement entered into between the Existing Preferred Shareholders, the Series C Shareholder, the Company and other parties on or about the date hereof (as amended and restated from time to time) (B) the Company is given prompt notice of the transfer, and (C) such assignee or transferee executes a Deed of Adherence (in the same form and substance as set out in Schedule 1 hereto) confirming to the other Members that it shall be bound by this Agreement as a Member.

 

(d)                Notification.  The Company undertakes and agrees that the Company shall furnish to each Preferred Shareholder (from the date of this Agreement) prompt notification upon becoming aware of any: (i) litigation or investigations or proceedings which have or may reasonably be expected to have a materially adverse effect on the assets, business operations or financial conditions of any Group Company or the Group Companies as a whole, or on the ability of any Group Company to comply with its obligations under this Agreement, or other Transaction Agreements to which it is a party, and (ii) any criminal investigations or proceedings against the Company or any Related Party, and any such notification shall specify the nature of the action or proceeding and any steps the Company proposes to take in response to the same.

 

2.2                Directors’ and Officers’ Liability Insurance.

 

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At all times, the Company shall ensure that it maintains customary directors and officers liability insurance (“D&O Insurance”) for the directors, and alternate directors of the Company and the Subsidiary Boards (as defined below), covering an amount of at least US$15,000,000 or such other amount as is approved by the holders representing more than seventy-five percent (75%) of the then outstanding Preferred Shares or shares resulting from conversion or exchange thereof. The Company shall maintain D&O Insurance to the extent deemed appropriate by the Board (including all the Preferred Share Directors). Such policy shall not be cancelled by the Company without unanimous prior approval of the Board then in office.

 

2.3                 Memorandum of Association and Articles of Association.

 

The Company shall abide by, and take all actions necessary to achieve the economic effect of all of its obligations under the Memorandum and the Articles, including, but not limited to, the provisions related to the conversion of the Preferred Shares, the adjustment to the conversion prices of the Preferred Shares, the declaration and payment of dividends, the winding up of the Company and payment of liquidation preference on the Preferred Shares.  The Company shall, and the Board shall procure that the Company shall, increase the authorized number of Ordinary Shares and/or Preferred Shares, as applicable and necessary, issue such additional shares to the holders of Ordinary Shares or Preferred Shares, as applicable, and readjust the conversion price of the Preferred Shares in accordance with Article 29 of the Articles.  In furtherance of the foregoing, the Company and each of the Members hereby agree to take all actions necessary to amend the Memorandum and the Articles, increase the authorized share capital of the Company, issue the additional shares and adjust the conversion price of the Preferred Shares to effectuate the terms of Article 29 of the Articles, including, but not limited to, providing any vote or written consent in favor thereof.

 

2.4                Incorporation of Certain Provisions from the Articles.

 

(a)         The following provisions of the Company’s Articles shall be incorporated by reference into this Agreement and shall be enforceable as if such provisions were part of this Agreement.

 

	
(i)
    	
Article 6 (Issue of Shares);
    
	
(ii)
    	
Article 18 (Variation of Rights of Shares);
    
	
(iii)
    	
Articles 19-24 (Conversion of Preferred Shares);
    
	
(iv)
    	
Articles 25-31 (Adjustments to Conversion Prices);
    
	
(v)
    	
Articles 39-40 (General Meetings of Members);
    
	
(vi)
    	
Article 41 (Notice of General Meetings of   Members);
    

 

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(vii)
    	
Articles 42-50 (Proceedings at General Meetings of   Members);
    
	
(viii)
    	
Articles 51-58 (Votes of Members);
    
	
(ix)
    	
Articles 59-61 (Record Dates);
    
	
(x)
    	
Articles 62-66 (Proxies);
    
	
(xi)
    	
Articles 68-75 (Directors; Alternate Directors;   Proxies);
    
	
(xii)
    	
Articles 76-80 (Powers and Duties of Directors);
    
	
(xiii)
    	
Article 81 (Protective Provisions);
    
	
(xiv)
    	
Article 82 (Management and Committees of the Board   of Directors);
    
	
(xv)
    	
Articles 83-92 (Proceedings of Board of Directors);
    
	
(xvi)
    	
Article 93 (Appointment and Removal of   Directors);
    
	
(xvii)
    	
Articles 94-98 (Director Resignation, Removals and   Vacancies);
    
	
(xviii)
    	
Article 101 (Redemption and Repurchase);
    
	
(xix)
    	
Articles 102-103 (Redemption of Preferred Shares);
    
	
(xx)
    	
Articles 104-111 (Dividends);
    
	
(xxi)
    	
Articles 124-126 (Winding Up); and
    
	
(xxii)
    	
Article 127 (Indemnity).
    

 

(b)         Notwithstanding anything to the contrary in this Agreement, (i) any amendment or waiver of any of the foregoing provisions of the Articles may be effected in accordance with the terms of the Articles and applicable laws without regard to any terms of this Agreement (including without limitation the amendment or waiver provisions of this Agreement), (ii) no amendment or waiver of any provision of the Articles shall result in an amendment or waiver of any provision of this Agreement unless the amendment or waiver provisions of this Agreement have also been satisfied with respect thereto and (iii) no amendment or waiver of any provision of this Agreement (including without limitation this Section 2.4) shall be deemed to effect an amendment or waiver of any provision of the Articles.  In the event of any conflict or inconsistency between the provisions of this Agreement and the provisions of the Articles, the parties shall, notwithstanding the conflict or inconsistency, act so as to effect the intent of this Agreement to the greatest extent possible under the circumstances and shall promptly amend the conflicting constitutional documents to conform to this Agreement to the greatest extent possible.

 

2.5                   Drag-Along Rights.

 

(a)         Subject to the provisions of the Articles (including, without limitation, Article 81 of the Articles) and prior to the closing of a Qualified IPO, if (i) any Preferred Shareholders (the “Selling Member”) receives a bona fide offer from and agrees to the terms for the sale of all of its shares

 

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with a third party buyer which is not an Affiliate of the Selling Member (the “Buyer”) (the “Drag-Along Sale”), and (ii) holders representing not less than eighty-five percent (85%) of the then outstanding Existing Preferred Shares (voting together as a separate class) and holders representing not less than seventy-five percent (75%) of the then outstanding Series C Shares and the holders of at least fifty percent (50%) of the then outstanding Ordinary Shares, vote in favor of, or consent in writing to, or otherwise agree in writing to sell or transfer all of their Shares in the Drag-Along Sale, then the Selling Member may require all other Members to participate in the proposed Drag-Along Sale in accordance with and subject to the conditions set forth in this Section 2.5.  However, the Series C Shareholder shall be exempted from being required to participate in the proposed Drag-Along Sale and for the avoidance of doubt, the Series C Shareholder shall not be a Dragged Member.  Notwithstanding the foregoing, if such Series C Shareholder votes for the Drag-Along Sale, such Series C Shareholder (as the case may be) shall be deemed to have forfeited rights not to be a Dragged Member for this particular Drag-along Sale only.

 

(b)         The Selling Member may, following execution of a binding agreement with the Buyer (whether conditional or unconditional) for the Drag-Along Sale (directly or indirectly) of the Shares (the “Sale Agreement”), by serving a notice in writing (a “Drag Notice”) on each of the other Members who are subject to or have agreed to participate in the Drag-Along Sale and who is not a party to the Sale Agreement (each a “Dragged Member”), require each Dragged Member to transfer all of its Shares  (the “Dragged Shares”) to the Buyer at the price set out in Section 2.5(c) below on the date indicated in the Drag Notice as being the date of completion of the Sale Agreement (the “Drag Completion Date”), being not less than thirty (30) days after the date of the Drag Notice, and on the terms and subject to the conditions set out in this Section 2.5.  If the Drag-Along Sale contemplated in the Sale Agreement does not complete, the Drag Notice shall lapse.

 

(c)          The price for each Dragged Share shall:

 

(i)                          be equal to the higher of (A) two point five (2.5) times of the highest Original Purchase Price (as defined in the Articles) and (B) the highest consideration offered for each Share in the Company in the Sale Agreement;

 

(ii)                       be in the same form as that offered for each Share in the Company in the Sale Agreement; and

 

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(iii)                    be paid at the same time as the consideration is payable under the Sale Agreement (or, if later, on the Drag Completion Date) and shall be subject to the same payment terms.

 

(d)         For the avoidance of doubt, the Preferred Shareholders’ rights under this Section 2.5 to transfer the Dragged Shares shall apply regardless of whether the Dragged Shares are of the same class or type of Shares of the Company which the Selling Member proposes to sell.

 

(e)          Any sale made by a Dragged Member shall be made on substantially the same terms and conditions as described in the Sale Agreement.  However, the Dragged Members shall not be required to make any representation or warranty to the Buyer, other than as to good title to any Dragged Shares, absence of liens with respect to such Dragged Shares, the Dragged Member’s power and authority to undertake the proposed sale, and the validity and enforceability of the Dragged Member’s obligations in connection with it.

 

(f)           Each Dragged Member’s indemnification obligations, if any, in connection with the Drag-Along Sale shall only apply with respect to a breach of their own respective representations and warranties and shall be limited (A) to a period of twelve (12) months after consummation of the Drag-Along Sale and (B) to the net sale proceeds received by such Dragged Member in the Drag-Along Sale. The Selling Member shall use its best efforts to ensure that the Buyer in the Drag-Along Sale is a Person of good reputation acceptable to the Preferred Shareholders.

 

(g)          Any duly appointed attorney of any Dragged Member, including any director of the Company, may act on such Dragged Member’s behalf to fulfill its obligations hereunder on any Drag-Along Sale where any such Dragged Member refused to act.

 

2.6                   Passive Foreign Investment Company.

 

Upon a determination by the Company, any Preferred Shareholder or any taxing authority that, any of the Group Companies has been or is likely to become a PFIC as defined in Section 1297 of the Code, the Company will promptly notify each Preferred Shareholder of such determination and will provide as soon as practicable (but in no event later than ninety (90) days following the end of each taxable year) each Preferred Shareholder with all information reasonably available to the Group Companies to permit such Preferred Shareholder to (i) accurately prepare all tax returns and comply with any reporting requirements as a result of such determination, (ii) make any election (including, without limitation, a “qualified electing fund”

 

17

 

election under Section 1295 of the Code), with respect to the any Group Company, and comply with any reporting or other requirements incident to such election, and (iii) file a “protective statement” pursuant to Section 1295 of the Code with respect to any Group Company, and comply with any reporting or other requirements incident to such statement.  Upon request from a Preferred Shareholder, the Company shall provide the Preferred Shareholders with a completed “PFIC Annual Information Statement” as required by the U.S. Treasury Regulation Section 1295 and otherwise comply with applicable Treasury Regulation requirements.  The Company will promptly notify the Preferred Shareholders of any assertion by the Internal Revenue Service that any Group Company is, or is likely to become, a PFIC.

 

2.7                   Controlled Foreign Corporation.

 

The Company will provide prompt written notice to the Preferred Shareholders if at any time the Company becomes aware that any Group Company has become a “controlled foreign corporation” (as defined in the Code).  Upon request of a Preferred Shareholder from time to time, subject to obtaining the consent of its shareholders to release such information, the Company will promptly provide in writing such information in its possession concerning its shareholders and, to the Company’s actual knowledge, the direct and indirect interest holders in each shareholder reasonably sufficient for such Preferred Shareholder to determine that each Group Company is not a “controlled foreign corporation.”  The Company shall provide Preferred Shareholders with reasonable access to all Group Company information as the Company may then have available to it as may reasonably be required by a Preferred Shareholder to determine any Group Company’s status as a “controlled foreign corporation” to determine whether such Preferred Shareholder is required to report its pro rata portion of the Company’s “Subpart F income” (as defined in the Code) on its United States federal income tax return, or to allow such Preferred Shareholder to otherwise comply with applicable United States federal income tax law.  The parties hereto shall use commercially reasonable efforts to prevent any future issuance of securities by any Group Company to the extent that such issuance would result in such shareholder or any direct or indirect investor in such shareholder being considered a “United States shareholder” of such Group Company within the meaning of Section 951(b) of the Code.  Without limiting the Company’s obligations as set forth in this Section 2.7, for the avoidance of doubt, the Company and the Key Founders are not responsible for any tax filings of the Preferred Shareholders or for any associated or related costs incurred in connection with such tax filings.

 

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2.8                   Control of Subsidiaries.

 

The Company shall institute and shall keep in place arrangements reasonably satisfactory to all the Preferred Share Directors such that the Company (i) will control the operations of any Subsidiary of, or entity controlled by, the Company, and (ii) will be permitted to properly consolidate the financial results of all the Subsidiaries and VIE Entities in the consolidated financial statements for the Company. The Company shall, and shall cause each of its Subsidiaries, and each entity it controls (including the VIE Entities), to comply with the Company’s policy on compliance with the U.S. Foreign Corrupt Practices Act, as amended.  The Company shall take all necessary actions to maintain any Subsidiary, whether now in existence or formed in the future, as is necessary to conduct the Company’s business as conducted or as proposed to be conducted. The Company shall cause each Subsidiary of, or entity controlled by, the Company, whether now in existence or formed in the future, to comply in all material respects with all applicable laws, rules and regulations.

 

2.9                   Foreign Corrupt Practices Act.

 

The Company shall maintain a policy consistent with the U.S. Foreign Corrupt Practices Act, as amended, applicable to the Group Companies, which policy shall be reasonably satisfactory to all Preferred Shareholders.

 

2.10            UBTI Covenant.

 

The Company will take such steps as are necessary to cause the Company to be treated, at all times, as an association taxable as a corporation for United States federal income tax purposes.

 

2.11            Board Matters.

 

(a)              Board Composition.

 

At Closing, there shall be a Board of Directors consisting of nine (9) Directors.  Holders of seventy-five percent (75%) of the then outstanding Existing Preferred Shares, voting together as a separate class on an as-converted basis, may appoint two (2) Directors (each an “Existing Preferred Share Director”), and may in like manner remove with or without cause any Existing Preferred Share Director so appointed and may in like manner appoint another Person in his stead.  The Series C Shareholder  may appoint four (4) Directors (the “Series C Directors, and collectively with the Existing Preferred Share Directors, the “Preferred Share Directors”) and may in like manner

 

19

 

remove with or without cause any Series C Director so appointed and may in like manner appoint another Person in his stead. The holders of a majority of the then outstanding Ordinary Shares, voting as a separate class, may appoint three (3) Directors (the “Ordinary Share Directors”) and may in like manner remove with or without cause any Ordinary Share Director so appointed and may in like manner appoint another Person in his stead.  For the avoidance of doubt, any votes “on an as-converted basis” as referred to in this Agreement shall be construed and calculated in accordance with the Articles.

 

Subsequently to Closing, in the event of any transfers or redemption of shares among the holders of the Ordinary Shares, the Existing Preferred Shareholders and the Series C Shareholders, the composition and size of the Board of Directors shall be determined as follows:

 

(i)                           the holders of a majority of the then outstanding Ordinary Shares, voting as a separate class, shall be entitled to appoint one (1) Director for every ten percent (10%) of the issued share capital of the Company plus one Share held by holders of Ordinary Shares from time to time, and may in like manner remove with or without cause any Ordinary Share Director so appointed and may in like manner appoint another Person in his stead;

 

(ii)                        the holders of seventy-five percent (75%) of the then outstanding Existing Preferred Shares, voting together as a separate class on an as-converted basis, shall be entitled to appoint one (1) Director for every ten percent (10%) of the issued share capital of the Company plus one Share held by the holders of Existing Preferred Shares from time to time and may in like manner remove with or without cause any Existing Preferred Director so appointed and may in like manner appoint another Person in his stead; and

 

(iii)                     the holders of a majority of the then outstanding Series C Shares shall be entitled to appoint one (1) Director for every ten percent (10%) of the issued share capital of the Company plus one Share held by the holders of Series C Shares from time to time and may in like manner remove with or without cause any Series C Director so appointed and may in like manner appoint another Person in his stead;

 

provided, however, that there shall be no adjustment to the composition of the Board until and unless any of (A) the holders of a majority of the then outstanding Ordinary Shares, (B) the holders of

 

20

 

seventy-five percent (75%) of the then outstanding Existing Preferred Shares, or (C) the holders of a majority of the then outstanding Series C Shares are entitled pursuant to Section 2.11(a)(i), (ii) or (iii) respectively to appoint a higher number of Directors than its Director appointment rights set out in the first paragraph of Section 2.11(a).

 

There shall be at least three (3) committees under the Board, which are the Audit Committee, the Remuneration Committee, and the Executive Committee.

 

(b)        Audit Committee.  The audit committee (the “Audit Committee”) shall be vested with oversight functions for financial and accounting matters of the Group Companies, including, but not limited to, preparation of budgets, performance and oversight of internal auditing.  The Audit Committee shall consist of five (5) members, (3) of which are Preferred Share Directors, including two (2) Series C Directors and one (1) Existing Preferred Share Director.  A Series C Director in the Audit Committee shall serve as the chairman thereof, who shall not have any casting vote.  The remaining two (2) members of the Audit Committee shall be the Ordinary Share Directors.  All decisions of the Audit Committee must be approved by a majority of the members of the Audit Committee, including at least one (1) Series C Director and one (1) Existing Preferred Share Director.

 

(c)         Remuneration Committee.  The remuneration committee (the “Remuneration Committee”) shall be vested with oversight functions for remuneration matters of the Group Companies, including but not limited to, establishment and approval of the compensation plan for employees and Senior Management Personnel and non-executive directors of the Group Companies, and administration of the Group Companies’ equity incentive plans.  The Remuneration Committee shall consist of five (5) members, three (3) of which are Preferred Share Directors, including two (2) Series C Directors and one (1) Existing Preferred Share Director.  A Series C Director in the Remuneration Committee shall serve as the chairman thereof, who shall not have any casting vote.  The remaining two (2) members of the Remuneration Committee shall be the Ordinary Share Directors.  All decisions of the Remuneration Committee must be approved by a majority of the members of the Remuneration Committee, including at least one (1) Series C Director and one (1) Existing Preferred Share Director.

 

(d)         Executive Committee.  The executive committee (the “Executive Committee”) shall function primarily as an advisory body to the Board and provide consultation and recommendations to the Board on

 

21

 

operating and strategic matters for any of the Group Companies, including the matters set forth as follows:

 

(i)                                     operational performance of any of Group Companies (against budgets, strategic business plans and contractual obligations e.g., debt covenants);

 

(ii)                                  appropriate strategies for any of the Group Companies;

 

(iii)                               strategic business and financing plan(s) and annual budget of any of the Group Companies (including but not limited to any changes to the same);

 

(iv)                              acquisitions, dispositions, investments and other potential growth and expansion opportunities (including but not limited to the identification, evaluation of new sites and new building opportunities) for any of the Group Companies;

 

(v)                                 capital structure and financing strategy of Group Companies, including but not limited to any debt, equity or equity-linked financing transactions, as well as any issuance, repurchase, conversion or redemption of any equity interests or debt of any of the Group Companies;

 

(vi)                              any material litigation or other legal or administrative proceedings to which any of the Group Companies is a party;

 

(vii)                           entry into any material contracts exceeding the approval authority of the Senior Management Personnel;

 

(viii)                        enter into or agree to any transaction between any Group Company and any Member, director, officer or Affiliate of the Company or of any Affiliate thereof; and

 

(ix)                              any other responsibilities as are delegated to the Executive Committee by the Board from time to time.

 

For efficiency, the Board may delegate certain decision making authority to the Executive Committee (including but not limited to approving capital and operational expenditure and changes to any strategic or business plan(s)) within appropriate perimeters approved by the Board.  To the extent that the Executive Committee is delegated such authority from the Board, the Executive Committee shall function as an executive body of the Board in respect of the matters so delegated.

 

22

 

The Executive Committee shall comprise of five (5) members (who may or may not be members of the Board) (the “Executive Committee Members”), of whom two (2) Executive Committee Members shall be nominated by the Series C Shareholder, one (1) Executive Committee member shall be nominated by the Existing Preferred Shareholders (approved by the holders of at least fifty percent (50%) of the then outstanding Existing Preferred Shares) (voting as a separate class).  The remaining two (2) Executive Committee Members shall comprise the CEO and such other person as nominated by the CEO or the Ordinary Shareholders (voting as a separate class).  The Chairman of the Executive Committee shall be the CEO of the Company and the deputy Chairman of the Executive Committee shall be one of the two Executive Committee Members nominated by the Series C Shareholder. Neither the Chairman nor the deputy Chairman of the Executive Committee shall have a casting vote.  All recommendations or decisions (as the case may be) of the Executive Committee must be approved by a majority of the Executive Committee Members, including at least one (1) Executive Committee Member nominated by the Series C Shareholder and one (1) Executive Committee Member nominated by the Existing Preferred Shareholders (approved by the holders of at least fifty percent (50%) of the then outstanding Existing Preferred Shares, voting as a separate class).

 

(e)          Board Composition of Subsidiaries.  Each Group Company (as applicable) shall, upon the written request of the Series C Shareholder, appoint such person as nominated by the Series C Shareholder to the relevant Subsidiary(ies) and at all times maintain the composition of the board of directors, supervisory board or similar governing body of each of its Subsidiaries as requested by the Series C Shareholder (each, a “Subsidiary Board”) such that each Subsidiary Board shall have three (3) members including at least one (1) director appointed by the Series C Shareholder.  Within sixty (60) days of the giving of such written request by the Series C Shareholder, each Group Company shall file with the appropriate governmental authorities its amended articles of association or other applicable constitutional document which shall reflect the aforesaid composition of the Subsidiary Board.

 

2.12     Reserved Employee Shares.

 

Before Closing, the Company shall maintain an employee stock option plan (the “ESOP”) and reserve up to 29,240,000 Ordinary Shares for the ESOP (as adjusted for any Recapitalization).  Stock options under the ESOP shall be granted to Persons nominated by the CEO of the Company, subject to

 

23

 

the approval of a simple majority vote of the Board or the Remuneration Committee or its equivalent under authorization by the Board.

 

2.13     Key Employees.

 

Subject to the Articles, the Board (including all Preferred Share Directors) shall be entitled to designate, appoint, or remove the Senior Management Personnel of the Group Companies, including, without limitation, the CEO, chief operating officer, chief financial officer and chief technical officer (if applicable).

 

The Series C Shareholder shall be entitled to nominate candidates as each Group Company’s chief financial officer and senior operations manager in consultation with the CEO.  The Company shall consider each such nomination by the Series C Shareholder in good faith, and if any such nominee is not appointed, the Series C Shareholder shall be entitled to nominate a different individual in consultation with the CEO.  The Series C Shareholder shall be entitled to provide any suggestion on operational performance of any of the Group Companies (including product lines and management strategies) and the Company shall consider in good faith such suggestions.

 

2.14     Business and Operations.

 

(a)               The Company and each other Group Company undertake, and shall procure each of the Key Founders, employees, agents, contractors and subcontractors, to ensure that its business, activities and investments are undertaken in compliance with (i) every law, regulation, rule, judgment, order, license, agreement, directive, guideline, requirement, whether in effect as of the date hereof or thereafter and in each case as amended, applicable to it, and (ii) the terms and conditions of the Articles and the Transaction Agreements.

 

(b)               The Company shall act as a holding company of the other Group Companies and shall carry out, and shall cause each of the other Group Companies to carry out the business within the scope of building a professional, national network of enterprise-class data centers in the PRC, and providing data center infrastructure facility services and professional operation management services to information technology (“IT”) service providers and enterprises or organizations (the “Business”), and the Business shall be conducted in accordance with good and commercial business practice and in accordance with the business plan approved by the Board.

 

24

 

(c)                The Company shall adopt and maintain a policy, in form and substance satisfactory to each of the Preferred Shareholders, designed to maximize its ownership of Intellectual Property (as defined below) developed or acquired in the course of its operations, which policy shall require the Company to (i) cause all material technological developments, patentable or unpatentable, inventions, discoveries or improvements by the Company’s or any of its Subsidiaries’ officers or employees to be documented in accordance with the appropriate professional standards; and (ii) cause all officers and key employees, and to the extent practicable, consultants of the Company and its Group Companies, to enter into non-disclosure and proprietary rights agreement in customary form, approved by the Board.  For the purpose of this Section 2.14, “Intellectual Property” shall mean any and all intellectual property, including, without limitation, patents, trademarks, trade names, copyrights, proprietary information and rights, service marks, domain names, mask works, trade secrets, know-how, business processes, all computer software including the codes, inventions, information, processes, formulas, applications, design, drawings, technical data and all documentation related to any of the foregoing.

 

2.15     Fiscal Control.

 

The Company shall adopt a Management of Fiscal Affairs Policy applicable to the Group Companies, which policy shall be reasonably satisfactory to a majority in interest of the holders of the then outstanding Preferred Shares.

 

2.16     Reservation of Shares.

 

The Company shall, and the Board shall procure that the Company shall, maintain and reserve a sufficient number of Ordinary Shares at all times for issuance upon conversion of the Preferred Shares at the effective conversion rate as in effect from time to time (taking into account any outstanding options or convertible securities exercisable or convertible into Ordinary Shares).  In furtherance of the foregoing, the Company shall take all actions necessary for such reservation including, but not limited to, solicitation of Board and/or shareholder approvals as necessary to increase the authorized share capital of the Company and the authorized number of Ordinary Shares authorized for issuance.

 

2.17     Termination of Covenants.

 

The covenants set forth in Section 2 (other than Sections 2.1(b) (Other information and Inspection Rights), Sections 2.2 (Directors’ and Officers’ Liability Insurance), Section 2.5 (Drag-Along Rights), Section 2.8 (Control

 

25

 

of Subsidiaries), Section 2.9 (Foreign Corrupt Practices Act), Section 2.10 (UBTI Covenant), and 2.17 (Termination of Covenants)) shall terminate and be of no further force or effect immediately prior to the effectiveness of the registration statement for a Qualified IPO or, with respect to Section 2.1 only, the date on which the Company is required to file reports with the Commission pursuant to Section 13 or 15(d) of the Exchange Act.

 

3.      Registration Rights.

 

3.1       Restrictions on Transferability and Applicability of Rights.

 

(a)              Transfer Restrictions.  The Restricted Securities shall not be sold, assigned, transferred or pledged except upon the conditions specified in this Section 3, which conditions are intended to ensure compliance with the provisions of applicable securities laws.  Each holder of Restricted Securities will cause any proposed purchaser, assignee, transferee or pledgee of any such shares held by such holder to agree in writing to take and hold such securities subject to the provisions and upon the conditions specified in this Agreement.

 

(b)              Applicability of Rights.  The holders of Preferred Shares and Conversion Shares shall be entitled to the following rights with respect to any potential public offering of Ordinary Shares in the United States, and to any analogous or equivalent rights with respect to any other offering of shares in any other jurisdiction pursuant to which the Company undertakes to publicly offer or list such securities for trading on a recognized securities exchange.

 

3.2       [intentionally omitted].

 

3.3       Restrictive Legend; Execution by the Company.

 

Each certificate representing (i) Preferred Shares, (ii) Conversion Shares, (iii) Key Founders’ Shares, (iv) any Other Shareholders’ Shares, and (v) any other securities issued in respect of the Preferred Shares, Conversion Shares or Key Founders’ Shares upon any Recapitalization, shall (unless otherwise permitted by the provisions of Section 3.4 below) be stamped or otherwise imprinted with legends substantially in the following form (in addition to any legend required under applicable federal, state, local or non-United States law):

 

(a)              “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  SUCH SECURITIES MAY NOT BE TRANSFERRED UNLESS (A) A REGISTRATION

 

26

 

STATEMENT UNDER THE ACT IS EFFECTIVE AS TO SUCH TRANSFER OR (B) PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE ACT.”

 

(b)              “THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO AND MAY ONLY BE SOLD, DISPOSED OF OR OTHERWISE TRANSFERRED IN COMPLIANCE WITH A MEMBERS AGREEMENT, AND/OR A RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT, AND/OR A VOTING AGREEMENT DATED MAY 19, 2016, ENTERED INTO BY THE HOLDER OF THESE SHARES, THE COMPANY AND CERTAIN SHAREHOLDERS OF THE COMPANY AS APPLICABLE.  A COPY OF SUCH AGREEMENTS IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY.  SUCH LOCK-UP PERIOD, RIGHTS OF FIRST REFUSAL AND RIGHTS OF CO-SALE ARE BINDING ON TRANSFEREES OF THESE SHARES. BY ACCEPTING ANY INTEREST IN SUCH SHARES THE PERSON ACCEPTING SUCH INTEREST SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF SAID VOTING AGREEMENT AS APPLICABLE.”

 

Each of the Preferred Shareholders, Holders, Key Founders and Other Shareholders consents to the Company making a notation on its records and giving instructions to any transfer agent of the Restricted Securities in order to implement the restrictions on transfer established in this Section 3.

 

The Company, by its execution in the space provided below, agrees that it will cause the certificates evidencing the Shares to bear the legend required by this Section 3.3, and it shall supply, free of charge, a copy of this Agreement to any holder of a certificate evidencing Shares containing such legend upon written request from such holder to the Company at its principal office.  The parties hereto do hereby agree that the failure to cause the certificates evidencing the appropriate Shares to bear the legend required by this Section 3.3 and/or failure of the Company to supply, free of charge, a copy of this Agreement as provided under this Section 3.3 shall not affect the validity or enforcement of this Agreement.

 

3.4       Notice of Proposed Transfers.

 

The holder of each certificate representing Restricted Securities by acceptance thereof agrees to comply in all respects with the provisions of this Section 3.4.  Prior to any proposed sale, assignment, transfer or pledge of any Restricted Securities (other than (i) a transfer not involving a change

 

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in beneficial ownership, (ii) in transactions involving the distribution without consideration of Restricted Securities by the holder to any of its partners, members, or retired partners or members, or to the estate of any of its partners or members or retired partners or members, (iii) in transactions in compliance with Rule 144 promulgated under the Securities Act (“Rule 144”), (iv) transfers by members that are entities to affiliated entities or funds (United States based or non-United States based), and (v) transfers to the Company by any holder of Restricted Securities pursuant to the Company’s repurchase option set forth in any agreement entered into after the date hereof if such agreement is approved by a majority of the Board, including at least one (1) Preferred Share Director, unless there is in effect a registration statement under the Securities Act covering the proposed transfer), the holder thereof shall give written notice to the Company of such holder’s intention to effect such transfer, sale, assignment or pledge.  Each such notice shall describe the manner and circumstances of the proposed transfer, sale, assignment or pledge in sufficient detail, and if reasonably requested by the Company, shall be accompanied, at such holder’s expense, by either (i) a written opinion of legal counsel who shall be, and whose legal opinion shall be, reasonably satisfactory to the Company addressed to the Company, to the effect that the proposed transfer of the Restricted Securities may be effected without registration under the Securities Act, or (ii) a “no action” letter from the Commission to the effect that the transfer of such securities without registration will not result in a recommendation by the staff of the Commission that action be taken with respect thereto, whereupon the holder of such Restricted Securities shall be entitled to transfer such Restricted Securities in accordance with the terms of the notice delivered by the holder to the Company.  For the avoidance of doubt, it shall not be reasonable for the Company to request that a notice be accompanied by any such opinion or “no action” letter if, among other things, both the transferor and the transferee have certified in writing that each of them is not a U.S. Person (as defined under Rule 902 of Regulation S promulgated under the Securities Act).  Notwithstanding any of the foregoing exceptions to the notice requirements, all transferees shall be bound by the obligations of the transferor in this Agreement and other shareholder agreements, including the market standoff set forth in Section 3.14 below.  Each certificate evidencing the Restricted Securities transferred as above provided shall bear, except if such transfer is made pursuant to Rule 144, the appropriate restrictive legends set forth in Section 3.3 above, except that such certificate shall not bear such restrictive legends if in the opinion of counsel for such holder and the Company such legend is not required in order to establish compliance with any provision of the Securities Act.

 

3.5       Demand Registration.

 

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(a)              Request by Holders.  If the Company shall at any time after the earlier of six (6) months after the closing of an IPO, or three (3) years after Closing receive a written request from Initiating Holders that the Company effect a registration, qualification or compliance with respect to the Registrable Securities pursuant to this Section 3.5, then the Company shall, within ten (10) Business Days of the receipt of such written request, give written notice of such request (the “Request Notice”) to all Holders, and use its best efforts to effect, as soon as practicable, such registration, qualification or compliance (including, without limitation, appropriate qualification under applicable blue sky or other state securities laws and appropriate compliance with applicable regulations issued under the Securities Act and any other governmental requirements or regulations) as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any Holder or Holders joining in such request as are specified in a written request received by the Company within twenty (20) days after receipt of the Request Notice, subject only to the limitations of this Section 3.5; provided that the Company shall not be obligated to effect any such registration:

 

(i)                                     During the period starting with the date sixty (60) days prior to the Company’s estimated date of filing of, and ending on the date six (6) months immediately following the effective date of, any registration statement pertaining to securities of the Company (other than a registration of securities in a transaction under Rule 145 promulgated under the Securities Act (“Rule 145”) or with respect to an employee benefit plan), provided that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective;

 

(ii)                                  After the Company has effected two (2) such registrations pursuant to this Section 3.5(a), and such registration has been declared or ordered effective; or

 

(iii)                               If the Initiating Holders may dispose of shares of Registrable Securities pursuant to a registration statement on Form S-3 or Form F-3 under the Securities Act as in effect on the date hereof or any successor form under the Securities Act (“Form S-3/F-3”) pursuant to a request made under Section 3.7 hereof.

 

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(b)              Underwriting.  If the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, then they shall so advise the Company as a part of their request made pursuant to this Section 3.5 and the Company shall include such information in the Request Notice referred to in Section 3.5(a).  In the event of an underwritten offering, the right of any Holder to include its Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting (unless otherwise mutually agreed by a majority in interest of the Initiating Holders and such Holder) to the extent provided herein.  All Holders proposing to distribute their securities through such underwriting shall enter into an underwriting agreement in customary form with the managing underwriter or underwriters selected for such underwriting by the Holders of a majority of the Registrable Securities being registered and reasonably acceptable to the Company.  Notwithstanding any other provision of this Section 3.5, if the underwriter(s) advise(s) the Company in writing that marketing factors require a limitation of the number of securities to be underwritten, then the Company shall so advise all Holders of Registrable Securities which would otherwise be registered and underwritten pursuant hereto, and the number of Registrable Securities that may be included in the underwriting shall be reduced as required by the underwriter(s) and allocated among the Holders of Registrable Securities on a pro rata basis according to the number of Registrable Securities then held by each Holder requesting registration (including the Initiating Holders); provided, however, that the number of shares of Registrable Securities to be included in such underwriting and registration shall not be reduced unless all other securities are first entirely excluded from the underwriting and registration including, without limitation, all shares that are not Registrable Securities and are held by any other Person, including, without limitation, any Person who is an employee, officer or director of any of the Group Companies.  If any Holder disapproves of the terms of any such underwriting, such Holder may elect to withdraw therefrom by written notice to the Company and the underwriter(s), delivered at least ten (10) Business Days prior to the effective date of the registration statement.  Any Registrable Securities and/or other securities so excluded or withdrawn from such underwriting shall be excluded and withdrawn from the registration.  For any Holder that is a partnership, the Holder and the partners and retired partners of such Holder, or the estates and family members of any such partners and retired partners and any trusts for the benefit of any of the foregoing Persons, and for any Holder that is a corporation, the Holder and all corporations that are Affiliates of such Holder, shall be deemed to be a single “Holder,” and any pro rata reduction with respect to such “Holder” shall be

 

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based upon the aggregate amount of shares carrying registration rights owned by all entities and individuals included in such “Holder,” as defined in this sentence.

 

(c)               Deferral.  Notwithstanding the foregoing, if the Company shall furnish to Holders requesting the filing of a registration statement pursuant to this Section 3.5, a certificate signed by CEO of the Company stating that in the good faith judgment of the Board (including all the Preferred Share Directors then serving on the Board), it would be materially detrimental to the Company and its shareholders for such registration statement to be filed, then the Company shall have the right to defer such filing for a period of not more than ninety (90) days after receipt of the request of the Initiating Holders; provided, however, that the Company may not utilize this right more than once in any twelve (12) month period; provided further that during such ninety (90) day period, the Company shall not file any registration statement pertaining to the public offering of any securities of the Company.

 

(d)              Expenses.  The Company shall pay all Registration Expenses. Each Holder participating in a registration pursuant to this Section 3.5 shall bear such Holder’s proportionate share (based on the total number of shares sold in such registration other than for the account of the Company) of all Selling Expenses incurred in connection with such registration of securities on behalf of the Holders.  Notwithstanding the foregoing, the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to this Section 3.5 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered, unless the Holders of a majority of the Registrable Securities then outstanding agree that such registration constitutes the use by the Holders of one (1) demand registration pursuant to this Section 3.5 (in which case such registration shall also constitute the use by all Holders of Registrable Securities of one (l) such demand registration); provided further, however, that if at the time of such withdrawal, the Holders have learned of a material adverse change in the condition, business, or prospects of the Company not known to the Holders at the time of their request for such registration and have withdrawn their request for registration with reasonable promptness after learning of such material adverse change, then the Holders shall not be required to pay any of such expenses and such registration shall not constitute the use of a demand registration pursuant to this Section 3.5.

 

3.6       Piggyback Registrations.

 

(a)               Notice of Registration.  The Company shall notify all Holders of Registrable Securities in writing at least thirty (30) days prior to

 

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registration of any of its securities, either for its own account or the account of a security holder or holders (including, but not limited to, registration statements relating to secondary offerings of securities of the Company, but excluding registration statements relating to (i) any registration under Section 3.5 or Section 3.7 of this Agreement, (ii) any employee benefit plan, or (iii) and corporate reorganization) and will afford each such Holder an opportunity to include in such registration all or any part of the Registrable Securities then held by such Holder.  Each Holder desiring to include in any such registration (and any related qualifications under blue sky laws or other compliance) and in any underwriting involved therein, all or any part of the Registrable Securities held by such Holder shall within twenty (20) days after receipt of the above-described notice from the Company, so notify the Company in writing, and in such notice shall inform the Company of the number of Registrable Securities such Holder wishes to include in such registration statement.  If a Holder decides not to include all of its Registrable Securities in any registration statement thereafter filed by the Company, such Holder shall nevertheless continue to have the right to include any Registrable Securities in any subsequent registration statement or registration statements as may be filed by the Company with respect to offerings of its securities, all upon the terms and conditions set forth herein.

 

(b)              Underwriting.  If a registration under which the Company gives notice under this Section 3.6 is for an underwritten offering, then the Company shall so advise the Holders of Registrable Securities.  In such event, the right of any such Holder’s Registrable Securities to be included in a registration pursuant to this Section 3.6 shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein.  All Holders proposing to distribute their Registrable Securities through such underwriting shall enter into an underwriting agreement in customary form with the managing underwriter or underwriters selected by the Company for such underwriting.  Notwithstanding any other provision of this Agreement, if the managing underwriter(s) determine(s) in good faith that marketing factors require a limitation of the number of shares to be underwritten, then the managing underwriter(s) may exclude shares from the registration and the underwriting, and the number of shares that may be included in the registration and the underwriting shall be allocated, first to the Company, and second, to each of the Holders requesting inclusion of their Registrable Securities in such registration statement on a pro rata basis based on the total number of Registrable Securities then held by each such Holder; provided, however, that the

 

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right of the underwriter(s) to exclude shares (including Registrable Securities) from the registration and underwriting as described above shall be restricted so that (i) the number of Registrable Securities included in any such registration is not reduced below thirty percent (30%) of the aggregate number of Registrable Securities for which inclusion has been requested, even if this will cause the Company to reduce the number of shares it wishes to offer; and (ii) all shares that are not Registrable Securities and are held by any other Person, including, without limitation, any Person who is an employee, officer or director of any of the Group Companies shall first be excluded from such registration and underwriting before any Registrable Securities are so excluded.  Notwithstanding the foregoing, if such offering is the Qualified IPO, any or all of the Registrable Securities of the Holders may be excluded in accordance with this Section 3.6(b), provided that any and all securities of the Company to be sold by other selling shareholders are also excluded.  If any Holder disapproves of the terms of any such underwriting, such Holder may elect to withdraw therefrom by written notice to the Company and the underwriter(s), delivered at least ten (10) Business Days prior to the effective date of the registration statement.  Any Registrable Securities excluded or withdrawn from such underwriting shall be excluded and withdrawn from the registration.  For any Holder that is a partnership, the Holder and the partners and retired partners of such Holder, or the estates and family members of any such partners and retired partners and any trusts for the benefit of any of the foregoing Persons, and for any Holder that is a corporation, the Holder and all corporations that are Affiliates of such Holder, shall be deemed to be a single “Holder,” and any pro rata reduction with respect to such “Holder” shall be based upon the aggregate amount of shares carrying registration rights owned by all entities and individuals included in such “Holder,” as defined in this sentence.

 

(c)               Expenses.  The Company shall pay all Registration Expenses incurred in connection with each registration under this Section 3.6.  Each Holder participating in a registration pursuant to this Section 3.6 shall bear such Holder’s proportionate share (based upon the total number of shares sold in such registration other than for the account of the Company) of all Selling Expenses incurred in connection with such registration of securities on behalf of the Holders.

 

(d)              Not a Demand Registration.  Registration pursuant to this Section 3.6 shall not be deemed to be a demand registration as described in Section 3.5 above.  Except as otherwise provided herein, there shall be no limit

 

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on the number of times the Holders may request registration of Registrable Securities under this Section 3.6.

 

3.7       Form S-3/F-3 Registration.

 

(a)               After its IPO, the Company shall use its best efforts to qualify for registration on Form S-3/F-3 or any comparable or successor form as early as possible and use best efforts to maintain such qualification thereafter.  If the Company is qualified to use Form S-3/F-3, any Holder or Holders shall have a right to request at such time from time to time (such request shall be in writing) that the Company effect a registration on either Form S-3/F-3 and any related qualification or compliance with respect to all or a part of the Registrable Securities owned by such Holder or Holders, and upon receipt of each such request, the Company will:

 

(i)                                     Notice.  Promptly give written notice of the proposed registration and the Holder’s or Holders’ request therefor, and any related qualification or compliance, to all other Holders of Registrable Securities; and

 

(ii)                                Registration.  As soon as practicable, effect such registration and all such qualifications and compliances as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Holders or Holders’ Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any other Holder or Holders joining in such request as are specified in a written request given within twenty (20) days after the Company provides the notice contemplated by Section 3.7(a)(i); provided, however, that the Company shall not be obligated to effect any such registration, qualification or compliance pursuant to this Section 3.7:

 

(1)                                 if Form S-3/F-3 becomes unavailable for such offering by the Holders;

 

(2)                                 if the Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an aggregate price to the public of less than US$1,000,000; or

 

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(3)                                 if the Company has effected a registration pursuant to this Section 3.7 during the preceding (6) month period.

 

(b)               Expenses.  The Company shall pay all Registration Expenses incurred in connection with each registration requested pursuant to this Section 3.7.  Each Holder participating in a registration pursuant to this Section 3.7 shall bear such Holder’s proportionate share (based upon the total number of shares sold in such registration other than for the account of the Company) of all Selling Expenses incurred in connection with such registration of securities on behalf of the Holders.

 

(c)                Maximum Frequency.  Except as otherwise provided herein, there shall be no limit on the number of times the Holders may request registration of Registrable Securities under this Section 3.7.

 

(d)               Deferral.  Notwithstanding the foregoing, if the Company shall furnish to Holders requesting the filing of a registration statement pursuant to this Section 3.7, a certificate signed by the CEO of the Company stating that in the good faith judgment of the Board (including all the Preferred Share Directors then serving on the Board), it would be materially detrimental to the Company and its shareholders for such Form S-3/F-3 registration statement to be filed, then the Company shall have the right to defer such filing for a period of not more than ninety (90) days after receipt of the request of the initiating Holders; provided, however, that the Company may not utilize this right more than once in any twelve (12) month period; provided further that during such ninety (90) day period, the Company shall not file any registration statement pertaining to the public offering of any securities of the Company.

 

(e)                Not Demand Registration.  Form S-3/F-3 registrations shall not be deemed to be demand registrations as described in Section 3.5 above.

 

(f)                 Underwriting.  If the requested registration under this Section 3.7 is for an underwritten offering, the provisions of Section 3.5(b) shall apply.

 

3.8       Obligations of the Company.

 

Whenever required to effect the registration of any Registrable Securities under this Agreement, the Company shall keep each Holder advised in writing as to the initiation of such registration and as to the completion thereof, and shall, at its expense and as expeditiously and as reasonably possible:

 

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(a)               Registration Statement.  Prepare and file with the Commission a registration statement with respect to such Registrable Securities and use its best efforts to cause such registration statement to become effective, and keep any such registration statement effective for a period of one hundred twenty (120) days or until the Holder or Holders have completed the distribution described in the registration statement relating thereto, whichever occurs first.

 

(b)              Amendments and Supplements.  Prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act or other applicable securities laws with respect to the disposition of all securities covered by such registration statement.

 

(c)               Registration Statements and Prospectuses.  Furnish to the Holders such number of copies of registration statements and prospectuses, including a preliminary prospectus, in conformity with the requirements of the Securities Act or other applicable securities laws, and such other documents as they may reasonably request in order to facilitate the disposition of the Registrable Securities owned by them that are included in such registration.

 

(d)              Blue Sky.  Use its best efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders, provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions.

 

(e)               Deposit Agreement.  If the registration relates to an offering of depositary shares or other securities representing Ordinary Shares deposited pursuant to a deposit agreement or similar facility, cause the depositary under such agreement or facility to accept for deposit under such agreement or facility all Registrable Securities requested by each Holder to be included in such registration in accordance with this Section 3.

 

(f)                Underwriting.  In the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement in usual and customary form, with the managing underwriter(s) of such offering.  Each Holder participating in such underwriting shall also enter into and perform its obligations under such an agreement.

 

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(g)               Notification.  Notify each Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act or other applicable securities laws of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing.

 

(h)              Opinion and Comfort Letter.  Furnish, at the request of any Holder requesting registration of Registrable Securities, on the date that such Registrable Securities are delivered to the underwriter(s) for sale, if such securities are being sold through underwriters, or, if such securities are not being sold through underwriters, on the date that the registration statement with respect to such securities becomes effective, (i) an opinion, dated as of such date, of the counsel representing the Company for the purpose of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering and reasonably satisfactory to a majority in interest of the Holders requesting registration, addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities and (ii) a “comfort” letter dated as of such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering and reasonably satisfactory to a majority in interest of the Holders requesting registration, addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities.

 

(i)                  Listing on Securities Exchange(s).  Cause all such Registrable Securities registered pursuant hereunder to be listed on each securities exchange on which similar securities issued by the Company are then listed or, in the case of the IPO, on a U.S. national or internationally- recognized securities exchange.

 

If the Company fails to perform any of the Company’s obligations set forth above in this Section 3.8 relating to a demand registration made pursuant to Section 3.5, such registration shall not constitute the use of a demand registration under Section 3.5.

 

3.9       Furnish Information.

 

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It shall be a condition precedent to the obligations of the Company to take any action pursuant to Sections 3.5, 3.6 or 3.7 with respect to the Registrable Securities of any Holder, that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of such securities as shall be reasonably requested in writing by the Company to timely effect the registration of its Registrable Securities.

 

3.10     Indemnification.

 

The following indemnification provisions shall apply in the event any Registrable Securities are included in a registration statement under Sections 3.5, 3.6 or 3.7:

 

(a)               By the Company.  To the extent permitted by law, the Company will indemnify and hold harmless each Holder, its partners, officers, directors, employees, trustees, legal counsel and any underwriter (as determined in the Securities Act) for such Holder and each Person, if any, who controls such Holder or underwriter within the meaning of Section 15 of the Securities Act against any expenses, losses, claims, damages, or liabilities (joint or several) (or actions in respect thereof) to which they may become subject under the Securities Act, the Exchange Act or other applicable law, insofar as such expenses, losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (each a “Violation”):

 

(i)                                     any untrue statement or alleged untrue statement of a material fact contained in any registration statement, offering circular, preliminary prospectus, final prospectus or other document, or any amendments or supplements thereto;

 

(ii)                                the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, or

 

(iii)                             any violation or alleged violation of the Securities Act, the Exchange Act, any federal or state or foreign securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or other applicable securities law in connection with the offering covered by such registration statement;

 

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and the Company will reimburse each such Holder, its partner, officer, director, employee, legal counsel, underwriter or controlling Person for any legal or other expenses reasonably incurred by them, as incurred, in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this Section 3.10(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by such Holder, underwriter or controlling Person of such Holder.

 

(b)               By Selling Holders.  To the extent permitted by law, each selling Holder will indemnify and hold harmless the Company, each of its directors, each of its officers who have signed the registration statement, each Person, if any, who controls the Company within the meaning of Section 15 of the Securities Act, any underwriter (as determined in the Securities Act) and any other Holder selling securities under such registration statement or any of such other Holder’s partners, directors, officers, employees, trustees, legal counsel and any underwriter (as determined in the Securities Act) for such Holder and each Person, if any, who controls such Holder within the meaning of Section 15 of the Securities Act, against any expenses, losses, claims, damages or liabilities (joint or several) (or actions in respect thereof) to which the Company or any such director, officer, employee, trustee, legal counsel, controlling Person, underwriter or other such Holder, partner or director, officer, employee or controlling Person of such other Holder may become subject under the Securities Act, the Exchange Act or other applicable law, insofar as such expenses, losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder expressly for use in connection with such registration; and each such Holder will reimburse any legal or other expenses reasonably incurred by the Company or any such director, officer, employee, controlling Person, underwriter or other Holder, partner, officer, employee, director or controlling Person of such other Holder in connection with investigating or defending any such loss, claim, damage, liability or action: provided, however, that the indemnity agreement contained in this Section 3.10(b) shall not apply to amounts

 

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paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; and provided further that the total amounts payable in indemnity by a Holder under this Section 3.10(b) plus any amount under Section 3.10(e) in respect of any Violation shall not exceed the net proceeds received by such Holder in the registered offering out of which such Violation arises.

 

(c)                Notice.  Promptly after receipt by an indemnified party under this Section 3.10 of notice of the commencement of any claim or action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 3.10, deliver to the indemnifying party a written notice of the commencement thereof (a “Claim Notice”) and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and expenses to be paid by the indemnifying party, (i) during the period from the delivery of a Claim Notice until retention of counsel by the indemnifying party; and (ii) if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential conflict of interests between such indemnified party and any other party represented by such counsel in such proceeding.  The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying party of liability to the indemnified party under this Section 3.10 to the extent the indemnifying party is prejudiced as a result thereof, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 3.10.

 

(d)               Defect Eliminated in Final Prospectus.  The foregoing indemnity agreements of the Company and Holders are subject to the condition that, insofar as they relate to any untrue statement, alleged untrue statement, omission or alleged omission made in a preliminary prospectus or free writing prospectus on file with the Commission at the time the registration statement becomes effective, such indemnity agreement shall not inure to the benefit of any Person if an amended prospectus is filed with the Commission and delivered pursuant to the Securities Act at or prior to the time of sale (including, without limitation, a contract of sale, and as further contemplated by Rule 159 promulgated under the Securities Act) to the Person asserting the loss, liability, claim or damage.

 

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(e)                Contribution.  In order to provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (i) any Holder exercising rights under this Agreement, or any controlling Person of any such Holder, makes a claim for indemnification pursuant to this Section 3.10 but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that this Section 3.10 provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any such selling Holder or any such controlling Person in circumstances for which indemnification is provided under this Section 3.10; then, and in each such case, the Company and such Holder will contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (after contribution from others) in such proportion so that such Holder is responsible for the portion represented by the percentage that the public offering price of its Registrable Securities offered by and sold under the registration statement bears to the public offering price of all securities offered by and sold under such registration statement, and the Company and other selling Holders are responsible for the remaining portion; provided, however, that, in any such case: (A) no such Holder will be required to contribute any amount in excess of the public offering price of all such Registrable Securities offered and sold by such Holder pursuant to such registration statement; and (B) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

 

(f)                 Survival.  The obligations of the Company and Holders under this Section 3.10 shall survive until the fifth (5th) anniversary of the completion of any offering of Registrable Securities in a registration statement, regardless of the expiration of any statutes of limitation or extensions of such statutes.

 

3.11              Rule 144 Reporting.

 

With a view to making available to the Holders the benefits of certain rules and regulations of the Commission which may permit the sale of the Restricted Securities to the public without registration, the Company agrees to use its best efforts to:

 

(a)              Make and keep public information available, as those terms are understood and defined in Rule 144 or any similar or analogous rule promulgated under the Securities Act, at all times after the effective

 

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date of the first registration filed by the Company for an offering of its securities to the general public;

 

(b)              File with the Commission, in a timely manner, all reports and other documents required of the Company under the Securities Act or the Exchange Act, at all times after the effective date of the first registration under the Securities Act filed by the Company; and

 

(c)               So long as a Holder owns any Restricted Securities, furnish to such Holder forthwith upon request, (i) a written statement by the Company as to its compliance with the reporting requirements of said Rule 144, and of the Exchange Act (at any time after it has become subject to such reporting requirements, (ii) a copy of the most recent annual, interim, quarterly or other report of the Company, and (iii) such other reports and documents as a Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing it to sell any such securities without registration.

 

3.12              Termination of the Company’s Obligations.

 

Notwithstanding the foregoing, the Company shall have no obligations pursuant to Sections 3.5, 3.6 or 3.7 with respect to any Registrable Securities proposed to be sold by a Holder in a registered public offering (i) five (5) years after the consummation of a Qualified IPO, or (ii), if, in the opinion of counsel to the Company, all such Registrable Securities proposed to be sold by a Holder may then be sold under Rule 144 in one three month period without exceeding the volume limitations thereunder.  For the avoidance of doubt, Sections 3.5 to 3.17 shall survive and remain in full force and effect notwithstanding the consummation by the Company of an IPO.

 

3.13              No Registration Rights to Third Parties.

 

Without the prior written consent of the Holders of more than seventy percent (70%) of the Registrable Securities then outstanding, the Company covenants and agrees that it shall not grant, or cause or permit to be created, for the benefit of any Person any registration rights of any kind (whether similar to the demand, “piggyback” or Form S-3/F-3 registration rights described in this Section 3, or otherwise) relating to any shares or other securities of the Company, other than rights that are subordinate to the rights of the Holders hereunder.

 

3.14              “Market Stand-Off” Agreement.

 

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Each Member hereby agrees that, if and to the extent requested by the lead underwriter of securities of the Company in connection with a registration relating to a specific proposed public offering (other than a registration on Form S-8 or a related or successor form relating solely to an employee benefit plan or a registration on Form S-4 or a related or successor form relating solely to a transaction under Rule 145), such Member will, subject to the following conditions, enter into a lock-up or standoff agreement in customary form (subject to the following conditions) under which such Member agrees not to sell or otherwise transfer or dispose of any Registrable Securities or other shares of the Company owned by such Member as of the date of such registration for up to one hundred eighty (180) days following the effective date of the related registration statement.  The obligations of each Member under this Section 3.14 are subject to the following conditions:  (i) the lockup or standoff agreement applies only to the first registration statement of the Company which covers securities to be sold on its behalf to the public in an underwritten offering, but not to Registrable Securities actually sold pursuant to such registration statement; (ii) such Member is reasonably satisfied that all directors, officers, and holders of 1% or more of any class of securities of the Company are bound by substantially identical restrictions; (iii) the lockup or standoff agreement provides that if any securities of the Company are to be excluded or released in whole or part from such restrictions, the underwriter shall so notify each Member and each Member shall be excluded or released, in proportionate amounts to the extent of the exclusion or release with respect to any other holder of Company’s securities, including director, officer, or holder of 1% or more of any class of securities of the Company subject to such restrictions; and (iv) the lockup or standoff agreement by its terms permits transfers of Registrable Securities by any Member to any Affiliate of such Member during the restricted period, provided that such Affiliate executes a lock-up or standoff agreement substantively identical to that signed by the transferring Member.  The Company may impose a stop-transfer instruction with respect to Registrable Securities subject to any such lockup or standoff agreement but shall remove such instruction immediately upon expiration of the underlying restrictions.

 

3.15              Public Offering Rights (Non-U.S. Offerings).

 

If shares of the Company are offered in an underwritten public offering (whether or not a Qualified IPO) outside the United States for the account of any Key Founder or other shareholders, each Holder shall have the right to include a pro-rata number of shares (based on the number of shares (on an as-converted basis) then held by such holder and all other shareholders

 

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of the Company selling in the offering) in the offering on terms and conditions no less favorable to the Holders than to any other selling shareholder.

 

3.16              Re-Sale Rights.

 

The Company shall use its best efforts to assist each Holder in the sale or disposition of its Registrable Securities after an IPO, including the prompt delivery of applicable instruction letters by the Company and legal opinions from the Company’s counsels in forms reasonably satisfactory to the Holder’s counsel.  In the event the Company has depositary receipts listed or traded on any stock exchange or inter-dealer quotation system, the Company shall pay all costs and fees related to such depositary facility, including conversion fees and maintenance fees for Registrable Securities held by the Holders.

 

3.17              Transfer of Registration Rights.

 

The rights to cause the Company to register securities granted to a Holder under Sections 3.5, 3.6 and 3.7 may be assigned to a transferee or assignee in connection with any transfer or assignment of Registrable Securities by the Holder; provided that: (a) such transfer may otherwise be effected in accordance with applicable securities laws, (b) the Company is given prompt notice of the transfer, (c) such assignee or transferee agrees to be bound by the terms of this Agreement by executing and delivering a Deed of Adherence (in the same form and substance as set out in Schedule 1 hereto), (d) such assignee or transferee is not a competitor of the Company, and (e) such assignee or transferee is (i) any partner or retired partner of any Holder which is a partnership (or any member or retired member of any Holder which is a limited liability company), (ii) any Affiliate or affiliated fund (United States based or non-United States based) of any Holder, (iii) any family member or trust for the benefit of any individual Holder, or (iv) any transferee of at least five percent (5%) of the Registrable Securities originally issued to the Holder (as adjusted for Recapitalization).

 

4.                  Pre-emptive Right.

 

4.1                     Pre-emptive Right.

 

Subject to the terms and conditions specified in this Section 4.1, the Company hereby grants to each Preferred Shareholder a pre-emptive right to subscribe for its Pro Rata Share (as hereinafter defined) (in whole or in part) with respect to future issuances by the Company of New Securities (as

 

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hereinafter defined).  For the purpose of this Section 4.1, a Preferred Shareholder’s “Pro Rata Share” shall mean that number of New Securities (as defined below) that equals the total number of such New Securities to be issued by the Company, multiplied by a fraction, the numerator of which is (i) the number of Ordinary Shares (assuming conversion of all securities that are outstanding that are convertible into Ordinary Shares) held by such Preferred Shareholder and the denominator of which is (ii) the total number of Ordinary Shares (assuming conversion of all securities that are outstanding that are convertible into Ordinary Shares) of the Company, outstanding immediately prior to the issuance of New Securities giving rise to the pre-emptive right.

 

Subject to Section 4.1(d), each time the Company proposes to offer any shares of, or securities convertible into or exercisable for any shares of, any class of its shares (“New Securities”), the Company shall first make an offering of such New Securities to each Preferred Shareholder in accordance with the following provisions:

 

(a)               The Company shall deliver a written notice (“Notice”) pursuant to Section 7.7 hereof to each of the Preferred Shareholders stating (i) its bona fide intention to offer such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and a summary of the terms, if any, upon which it proposes to offer such New Securities.

 

(b)               (i)                                     By written notification received by the Company within fifteen (15) Business Days after delivery of the Notice (the “Refusal Period”), each Preferred Shareholder may elect to purchase or obtain, at the price and on the terms specified in the Notice, up to its Pro Rata Share of such New Securities.

 

(ii)                                  In the event that any Preferred Shareholder elects not to purchase its full Pro Rata Share of the New Securities available to it pursuant to Section 4.1(b)(i) above within the Refusal Period, then the Company shall promptly give written notice (the “Overallotment Notice”) to each of the Preferred Shareholders that has elected to purchase its full Pro Rata Share (the “Fully Participating Preferred Shareholders”), which notice shall set forth the number of New Securities not purchased by the other Preferred Shareholders (such shares, the “Overallotment New Securities”), and shall offer the Fully Participating Preferred Shareholders the right to purchase its Pro Rata Share of the Overallotment New Securities.  By written notification received by the Company within five (5) Business Days after delivery of the Overallotment Notice, each

 

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Fully Participating Preferred Shareholder may elect to purchase or obtain at the price and terms specified in the Notice, up to its Pro Rata Share of the Overallotment New Securities.  For the purpose of this Section 4.1(b)(ii), each Fully Participating Preferred Shareholder’s Pro Rata Share shall be the number of Overallotment New Securities multiplied by a fraction, the numerator of which shall be the number of Ordinary Shares (assuming conversion of all securities that are outstanding that are convertible into Ordinary Shares) held by such Fully Participating Preferred Shareholder on the date of the Notice and the denominator of which shall be the total number of Ordinary Shares (assuming conversion of all securities that are outstanding that are convertible into Ordinary Shares) held by all Fully Participating Preferred Shareholders on the date of the Notice.

 

(c)                In the event that not all New Securities specified in the Notice are acquired by the Preferred Shareholders pursuant to Section 4.1(b) hereof, the Company may, during the ninety (90) day period following the expiration of the period provided in Section 4.1(b) hereof, offer the remaining unsubscribed portion of such New Securities to any Person(s) approved by holders representing at least eighty-five percent (85%) of the Existing Preferred Shares (voting together as a separate class) and holders representing at least seventy-five percent (75%) of the Series C Shares, at a price not less than, and upon terms no more favorable than those specified in the Notice to such Person(s).  If the Company does not enter into an agreement for the sale of the New Securities within such period, or if such agreement is not consummated within sixty (60) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the Preferred Shareholders in accordance herewith.

 

(d)              Notwithstanding the foregoing, New Securities does not include the Ordinary Shares, Options or other Convertible Securities issued or issuable (or deemed to be issued or issuable pursuant to Article 26 of the Articles):

 

(i)                                     upon conversion of Preferred Shares;

 

(ii)                                  in the aggregate up to 29,240,000 Ordinary Shares upon exercise or conversion of Options or Convertible Securities issued from time to time, as approved by the Board, to employees, officers, directors or consultants of the Group

 

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Companies pursuant to option plans, restricted stock plans or other arrangements, each such plan, arrangement or issuance (as applicable) having been approved pursuant to Article 81 of the Articles;

 

(iii)                               as a dividend or distribution on Preferred Shares;

 

(iv)                              pursuant to Recapitalization subject to Article 29 of the Articles;

 

(v)                                 pursuant to any acquisition of the Company or of another entity by the Company by merger, purchase of substantially all of the assets, reorganization or similar transaction, approved by the Board, including all the Preferred Share Directors;

 

(vi)                              pursuant to transactions with financial institutions or lessors in connection with loans, credit arrangements, equipment financings or similar transactions approved by the Board, including all the Preferred Share Directors;

 

(vii)                           in a registered public offering under the Securities Act or pursuant to the securities laws applicable to an offering of securities in another jurisdiction pursuant to which such securities will be listed on an internationally recognized securities exchange which has been approved by the Board, including all the Preferred Share Directors; and

 

(viii)                        pursuant to other transactions expressly excluded from the definition of “New Securities” by approval of at least seventy-five percent (75%) of the then outstanding Preferred Shares, voting as a separate class on an as-converted basis.

 

The pre-emptive right is not assignable except to an Affiliate of such Preferred Shareholder.

 

4.2                     Termination of Right.

 

The pre-emptive right granted under Section 4.1 shall expire immediately prior to the first to occur of the following: (i) the closing of the Qualified IPO, and (ii) the effectiveness of a Sale Transaction.

 

5.              Representations and Warranties, Covenants and Other Agreements of the Key Founders.

 

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5.1                     Full Time Commitment of the Key Founders.

 

Each Key Founder warrants, undertakes and covenants to the Preferred Shareholders that, for such time as such Key Founder continues to provide services to any of the Group Companies, he/it shall commit all of his/its efforts to furthering the business of the Group Companies and shall not, either on his/its own account or through any of his/its Affiliates, or in conjunction with or on behalf of any other Person, carry on or be engaged, concerned or interested directly or indirectly whether as shareholder, director, employee, partner, agent or otherwise carry on any business other than the business of the Group Companies.

 

5.2                     Non-Competition.

 

(a)               Each Key Founder undertakes to each of the Preferred Shareholders that for a period of twenty-four (24) months after he/it ceases to be employed by any Group Company, or such Key Founder ceases to hold any equity interest in any Group Company he/it will not, without the prior written consent of all Preferred Shareholders:

 

(i)                                   in the territory of the PRC, Macau, Taiwan and Hong Kong (the “Territory”) either on his/its own account or through any of his/its Affiliates, or in conjunction with or on behalf of any other Person, carry on or be engaged, concerned or interested, directly or indirectly, whether as shareholder, director, employee, partner, agent or otherwise carry on any business in competition with the business of any of the Group Companies;

 

(ii)                                  either on his/its own account or through any of his/its Affiliates or in conjunction with or on behalf of any other Person solicit or entice away or attempt to solicit or entice away from any of the Group Companies, any Person who is or shall at any time within twenty-four (24) months prior to such cessation have been a customer, client, representative, agent or correspondent of such Group Company or in the habit of dealing with such Group Company;

 

(iii)                               either on his/its own account or through any of his/its Affiliates or in conjunction with or on behalf of any other Person, employ or engage from any Group Company any Person who is or shall have been at the date of or within twelve (12) months prior to such cessation of employment an officer, manager, consultant or employee of any such of the Group Companies whether or

 

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not such Person would commit a breach of contract by reason of leaving such employment;

 

(iv)                              either on his/its own account or through any of his/its Affiliates or in conjunction with or on behalf of any other Person, solicit or entice away, or attempt to employ or engage, solicit or entice away from any Group Company any Person who is or shall have been at the date of or within twelve (12) months prior to such cessation of employment an officer, manager, consultant or employee of any such of the Group Companies whether or not such Person would commit a breach of contract by reason of leaving such employment; and

 

(v)                                 either he/it or any of his/its Affiliates will at any time hereafter, in relation to any trade, business or company use a name or any other words hereafter used by any of the Group Companies in its name or in the name of any of its products, services or their derivative terms, or the Chinese or English equivalent or any similar word in such a way as to be capable of or likely to be confused with the name of any Group Company or the product or services or any other products or services of any Group Company, and shall use all reasonable endeavors to procure that no such name shall be used by any of his Affiliates or otherwise by any Person with which he is connected.

 

(b)               Each and every obligation under Section 5.2(a) shall be treated as a separate obligation and shall be severally enforceable as such and in the event of any obligation or obligations being or becoming unenforceable in whole or in part, such part or parts which are unenforceable shall be deleted from such section and any such deletion shall not affect the enforceability of the remainder parts of such section.

 

(c)                The parties agree that in light of the circumstances, the restrictive covenants contained in Section 5.2(a) are reasonable and necessary for the protection of the Group Companies and the Preferred Shareholders, and further agree that having regard to those circumstances the said covenants and are not excessive or unduly onerous upon the Key Founders.  However, it is recognized that restrictions of the nature in question may fail for technical reasons currently unforeseen and accordingly it is hereby agreed and declared that if any of such restrictions shall be adjudged to be void as going beyond what is

 

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reasonable, in light of the circumstances, for the protection of the Group Companies or the Preferred Shareholders, but would be valid if part of the wording thereof were deleted or the periods thereof reduced or the range of activities or area dealt with thereby reduced in scope, the said restriction shall apply with such modification as may be necessary to make it valid and effective.

 

5.3                     IPO.

 

(a)         The parties to this Agreement agree that:

 

(i)                                     In the event of any IPO, the priority of such IPO shall be to raise new funds for the Company’s capital expenditure and working capital, and such priority shall always take precedence over any Member’s desire to exit its investment in the Company; and

 

(ii)                                  the Company shall not initiate the formal preparation of any IPO prior to January 1, 2015.

 

Subject to this Section 5.3(a), the Company shall consider undertaking an IPO at an appropriate time subject to the Company achieving a critical size in terms of revenue, EBITDA and visibility of free cash.

 

(b)         Without prejudice to any Member’s rights and interests hereunder or under any agreement to which such Member is a party, the parties hereto (other than the Company) agree to use their respective commercially reasonable efforts to cooperate with the Company to work towards achieving a Qualified IPO after January 1, 2015.

 

(c)          The Company shall, and the Key Founders shall procure that the Company will, consult with the Preferred Shareholders on the pricing of the Qualified IPO and allow the Preferred Shareholders a reasonable opportunity to attend and participate in all meetings and discussions with the underwriter(s) and other advisers at which pricing of the Qualified IPO is to be discussed or determined.

 

6.                  Confidentiality and Announcements.

 

6.1                    Disclosure of Terms.

 

Each party hereto acknowledges that the terms and conditions (collectively, the “Terms”) of this Agreement, the other Transaction Agreements, and all exhibits, restatements and amendments hereto and thereto, shall be

 

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considered as confidential information and shall not be disclosed by it to any third party except in accordance with the provisions set forth below.  Each Preferred Shareholder agrees with the Company that such Preferred Shareholder will keep confidential and will not disclose or divulge, any written information that is clearly and conspicuously identified as “Confidential” which such Preferred Shareholder obtains from the Company, pursuant to financial statements, reports, presentations, correspondence, and any other materials provided by the Company to, or written communications between the Company and such Preferred Shareholder, or pursuant to information rights granted under this Agreement or any other related documents, unless the information is known, or until the information becomes known, to the public through no fault of such Preferred Shareholder, or unless the Company gives its written consent to such Preferred Shareholder’s release of the information.

 

6.2                     Press Releases.

 

Within sixty (60) days after Closing, the Company may issue a press release disclosing that the Preferred Shareholders have invested in the Company provided that (a) the release does not disclose any of the Terms, (b) the press release does not disclose the amount or other specific terms of the investment, and (c) the final form of the press release is approved in advance in writing by each Preferred Shareholder mentioned therein.  Preferred Shareholders’ names and the fact that Preferred Shareholders are shareholders in the Company can be included in a reusable press release boilerplate statement, so long as each Preferred Shareholder has given the Company its initial approval of such boilerplate statement and the boilerplate statement is reproduced in exactly the form in which it was approved.  No other announcement regarding any Preferred Shareholder in a press release, conference, advertisement, announcement, professional or trade publication, mass marketing materials or otherwise to the general public may be made without such Preferred Shareholder’s prior written consent, which consent may be withheld at such Preferred Shareholder’s sole discretion.

 

6.3                     Permitted Disclosures.

 

Notwithstanding anything in the foregoing to the contrary:

 

(a)               The Company may disclose any of the Terms to its current or bona fide prospective investors, directors, officers, employees, shareholders, investment bankers, lenders, accountants, auditors, insurers, business or financial advisors, and attorneys, in each case only if such Persons are under appropriate nondisclosure obligations imposed by professional ethics, law or otherwise;

 

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(b)               Each Preferred Shareholder may, without disclosing the identities of the other Preferred Shareholders or the Terms of their respective investments in the Company without their consent, disclose such Preferred Shareholder’s investment in the Company to third parties or to the public at its sole discretion and, if it does so, the other parties shall have the right to disclose to third parties any such information disclosed in a press release or other public announcement by such Preferred Shareholder;

 

(c)                Each party shall have the right to disclose:

 

(i)                                       any information to such party’s and/or its Affiliate’s legal counsel, auditor, insurer, accountant, consultant, rating agency, or to an officer, director, general partner, limited partner, its shareholder, investment counsel or advisor, or employee of such party and/or its Affiliate (the “Permitted Disclosees”); provided, however, that any counsel, auditor, insurer, accountant, consultant, rating agency, officer, director, general partner, limited partner, shareholder, investment counsel or advisor, or employee shall only be disclosed with such information on a need-to-know basis and shall be advised of the confidential nature of the information and are under appropriate non-disclosure obligation imposed by professional ethics, law or otherwise; provided further that, notwithstanding the foregoing, any disclosure of information to a limited partner, shareholder or any other Permitted Disclosee that is a competitor of the Company shall require the prior written consent of the Company;

 

(ii)                                    any information as required by law, government authorities, exchanges and/or regulatory bodies, including by the Securities and Futures Commission of the Hong Kong Special Administrative Region, the China Securities and Regulatory Commission of the PRC or the Securities and Exchange Commission of the United States (or equivalent for other venues);

 

(iii)                                 any information to bona fide prospective purchasers/investors of any share, security or other interests in the Company, provided that (i) the Company has been informed of such disclosure and (ii) the prospective purchaser/investor has agreed to keep Company information confidential, and/or

 

(iv)                                any information contained in press releases or public announcements of the Company pursuant to Section 6.2 above.

 

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(d)               The confidentiality obligations set out in this Section 6 do not apply to:

 

(i)                                       information which was in the public domain or otherwise known to the relevant party before it was furnished to it by another party hereto or, after it was furnished to that party, entered the public domain otherwise than as a result of (i) a breach by that party of this Section 6, or (ii) a breach of a confidentiality obligation by the discloser, where the breach was known to that party;

 

(ii)                                    information the disclosure of which is necessary in order to comply with any applicable law, governmental rule or regulation, the order of any court, tribunal or regulatory authority or pursuant to other legal process, the requirements of a stock exchange or to obtain tax or other clearances or consents from any relevant authority; or

 

(ii)                                    information disclosed by any director of the Company to its appointer or any of its Affiliates or otherwise in accordance with the foregoing provisions of this Section 6.3.

 

6.4                     Legally Compelled Disclosure.

 

In the event that any party is requested or becomes legally compelled (including without limitation pursuant to any securities laws and regulations) to disclose the existence of this Agreement, any other Transaction Agreement or any Terms in contravention of the provisions of this Section 6, such party (the “Disclosing Party”) shall provide the other parties (the “Non-Disclosing Parties”) with a prompt written notice of that fact so that the appropriate party may seek (with the cooperation and reasonable efforts of the other parties) a protective order, confidential treatment or other appropriate remedy.  In such event, the Disclosing Party shall furnish only that portion of the information that is legally required and shall exercise reasonable efforts to obtain reliable assurance that confidential treatment will be accorded such information to the extent as reasonably requested by any Non-Disclosing Party.

 

6.5                     Other Nondisclosure Agreements.

 

Notwithstanding the provisions set forth below in Section 7.6 hereof, the provisions of this Section 6 shall be in addition to, and not in substitution for, the provisions of the separate nondisclosure agreements if any executed by the Company with any Preferred Shareholder with respect to the transactions contemplated herein.  The provisions of this Sections 6.1 to 6.4 shall terminate with respect to a Preferred Shareholder on the earlier of (a) the termination of this Agreement and (b) the date such Preferred Shareholder ceases to hold any Preferred Shares.

 

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6.6                     Use of Names or Logos.

 

(a)               Use of “SBCVC” Name or Logo.  Without the prior written consent of SBCVC and whether or not SBCVC is then a shareholder of the Company, no other party hereto shall use, publish or reproduce the name “SBCVC” or any similar name, trademark or logo in any of their marketing, advertising or promotion materials or otherwise for any marketing, advertising or promotional purposes.

 

(b)               Use of “Seabright”, “Forebright” or “China Everbright” Name or Logo.  Without the prior written consent of Everbright, and whether or not Everbright is then a shareholder of the Company, no other party hereto shall use, publish or reproduce the name “Seabright”, “Forebright” or “China Everbright” or any similar name, trademark or logo in any of their marketing, advertising or promotion materials or otherwise for any marketing, advertising or promotional purposes.

 

(c)                Use of “STT”, “STTC”, “STT Communications”, “ST Telemedia”, “Singapore Technologies Telemedia”, “GDC” or “APDC” Name or Logo.  Without the prior written consent of the Series C Shareholder (for so long as it is controlled by STTC), and whether or not the Series C Shareholder is then a shareholder of the Company, no other party hereto shall, for any marketing, advertising or promotional purposes, use, publish or reproduce the name “STT”, “STTC”, “STT Communications”, “ST Telemedia”, “Singapore Technologies Telemedia”, “GDC” or “APDC” or any similar name, trademark or logo in any of their marketing, advertising or promotion materials or any other trade name or logo to be used for STTC’s data center related businesses or operations as may be notified by the Series C Shareholder to the Company from time to time.

 

7.                  Miscellaneous.

 

7.1                     Term and Termination.

 

This Agreement shall become effective on the date of Closing. Section 2 shall terminate in accordance with Section 2.17; the registration rights granted pursuant to Sections 3.5, 3.6 and 3.7 shall terminate in accordance with Section 3.12; and Section 4 shall terminate in accordance with Section 4.2.

 

7.2                     Waivers and Amendments.

 

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Neither this Agreement nor any term hereof, may be changed, waived, discharged or terminated orally or in writing, except that any term of this Agreement may be amended and the observance of such terms may be waived (either generally or in a particular instance and either retroactively or prospectively) with (but only with) (i) the written consent of the Company, (ii) the holders of at least eighty-five percent (85%) of the then outstanding Existing Preferred Shares (voting together as a separate class) and (iii) the holders of at least seventy-five percent (75%) of the then outstanding Series C Shares; provided, however, that no such amendment or waiver shall extend to or affect any obligation not expressly waived or impair any right consequent therein.  Any party may waive any of its rights or the obligations of the Company hereunder without obtaining the consent of any other parties of this Agreement.  However, any amendments or waivers to rights of, or benefits to, SBCVC under this Agreement shall not be made without prior consent of SBCVC, and any amendments or waivers to rights of, or benefits to, the Series C Shareholder under this Agreement shall not be made without prior consent of the Series C Shareholder.  No consent shall be required from any Shareholder hereunder for a permitted transferee of any Equity Securities hereunder to sign a counterpart signature page to this Agreement; provided that such permitted transferee of any Equity Securities shall duly execute a Deed of Adherence (in the same form and substance as set out in Schedule 1 hereto) confirming to the other Members that it shall be bound by this Agreement as a Member.

 

7.3                     Governing Law.

 

This Agreement shall be governed by and construed in accordance with the laws of Hong Kong without regard to principles of conflicts of laws.  Each of the parties hereto irrevocably agrees that any Dispute, shall be referred to and finally resolved by binding arbitration administered by the HKIAC in accordance with the Rules in force when the notice of arbitration is submitted in accordance with these Rules, which Rules are deemed to be incorporated by reference into this section and as may be amended by the rest of this section. The arbitration tribunal shall consist of three (3) arbitrators (the “Tribunal”).  The parties agree that the three arbitrators can be selected from outside the HKIAC’s panel(s) of arbitrators. The claimant and the respondent shall each designate one (1) arbitrator in accordance with the Rules. The HKIAC shall appoint the third and presiding arbitrator, who shall be qualified to practice Law in Hong Kong. The seat of the arbitration shall be Hong Kong.  The language of the arbitration proceedings shall be English. Any award of the Tribunal shall be made in writing and shall be final, conclusive and binding on the parties to the arbitration from the day it is made.

 

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7.4                     Other Remedies; Specific Performance.

 

Except as otherwise provided herein, any and all remedies herein expressly conferred upon a party will be deemed cumulative with and not exclusive of any other remedy conferred hereby, or by law or equity upon such party, and the exercise by a party of any one remedy will not preclude the exercise of any other remedy.  The parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.  It is accordingly agreed that the parties shall be entitled to seek an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof, this being in addition to any other remedy to which they are entitled at law or in equity.

 

7.5                     Successors and Assigns.

 

Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors, assigns, heirs, executors and administrators.  No party hereto may delegate, assign or otherwise transfer any of its rights or obligations under this Agreement except in connection with the permitted transfer of securities in accordance with the terms hereof or as provided in Section 2.1(c) hereof.  Additionally, neither the Company nor any of the Group Companies may assign or delegate any of its rights or obligations under this Agreement without the prior written consent of all the Preferred Shareholders.

 

7.6                     Entire Agreement.

 

This Agreement and the documents referred to herein constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof, and supersede any and all other prior written or oral agreements relating to the subject matter hereof existing between the parties hereto.

 

7.7                     Notices.

 

All notices and other communications required or permitted hereunder shall be in writing and shall be sent by facsimile or mailed by electronic, registered or certified mail or by overnight courier or otherwise delivered by hand or by messenger, addressed: (i) if to an Existing Preferred Shareholder, at the Preferred Shareholder’s address, as shown on Exhibit A, Exhibit A-1, Exhibit A-2, Exhibit A-3 hereto, or at such other address as the Existing Preferred Shareholder shall have furnished to the Company in

 

56

 

writing, (ii) if to the Series C Shareholder, at the Series C Shareholder’s address, as shown on Exhibit A-4 hereto, (iii) if to a Key Founder, at the address as shown on Exhibit B hereto, or at such other address as the Key Founder shall have furnished to the Company in writing, (iv) if to one of the Other Shareholders, at the address as shown on Exhibit C hereto, or at such other address as the Key Founder shall have furnished to the Company in writing, or, until any such holder so furnishes an address to the Company, then to and at the address of the last holder of such shares who has so furnished an address to the Company, or (v) if to any of the Group Companies, at the address set forth on the respective signature pages attached hereto (attention: CEO), or at such other address as such Group Company shall have furnished to the Preferred Shareholders.

 

Where a notice is sent by mail, service of the notice shall be deemed to be effected by properly addressing, pre-paying and mailing a letter containing the notice, and to have been effected at the expiration of five (5) Business Days after the letter containing the same is mailed as aforesaid.

 

Where a notice is sent by overnight courier, service of the notice shall be deemed to be effected by properly addressing, and sending such notice through an internationally recognized express courier service, delivery fees pre-paid, and to have been effected three (3) Business Days following the day the same is sent as aforesaid.  Notwithstanding anything to the contrary in this Agreement, notice sent to the Series C Shareholder (and its permitted assigns) shall only be delivered by internationally recognized express courier service pursuant to this paragraph.

 

Where a notice is delivered by facsimile, electronic mail, by hand or by messenger, service of the notice shall be deemed to be effected upon delivery or successful transmission record being generated by the sender’s machine.

 

7.8                     Severability.

 

If any provision of this Agreement shall be determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

7.9                     Titles and Subtitles.

 

The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.  All references in this Agreement to sections, paragraphs and exhibits shall, unless otherwise provided, refer to sections and paragraphs hereof and exhibits attached hereto.

 

57

 

7.10              Counterparts; Facsimiles.

 

This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.  A facsimile, telecopy or other reproduction of this Agreement may be executed by one or more parties hereto and delivered by such party by facsimile or any similar electronic transmission device pursuant to which the signature of or on behalf of such party can be seen.  Such execution and delivery shall be considered valid, binding and effective for all purposes.  At the request of any party hereto, all parties hereto agree to execute and deliver an original of this Agreement as well as any facsimile, telecopy or other reproduction hereof.

 

7.11              Delays or Omissions.

 

It is agreed that no delay or omission to exercise any right, power or remedy accruing to any Preferred Shareholder, upon any breach or default of the Company under this Agreement, shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such breach or default, or any acquiescence therein, or of any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring.  It is further agreed that any waiver, permit, consent or approval of any kind or character by any Preferred Shareholder of any breach or default under this Agreement, or any waiver by any Preferred Shareholder of any provisions or conditions of this Agreement must be in writing and shall be effective only to the extent specifically set forth in writing and that all remedies, either under this Agreement, or by law or otherwise afforded to the Preferred Shareholder, shall be cumulative and not alternative.

 

7.12              Share Splits.

 

All references to the number of shares in this Agreement shall be appropriately adjusted to reflect any Recapitalization, which may be made by the Company after Closing.

 

7.13              Aggregation of Stock.

 

All shares of the Company held or acquired by affiliated Persons shall be aggregated together for the purpose of determining the availability of any rights under this Agreement.

 

7.14              Several Liabilities of the Preferred Shareholders.

 

58

 

Each Preferred Shareholder shall be severally (and not jointly and severally or jointly with any other Person) liable for its own obligations under this Agreement.

 

7.15              Further Understanding and Agreement

 

It is understood and agreed by all parties to this Agreement that the Share Swap Agreement dated on June 12, 2014, entered into by the Company, EDC Holding Limited, Brilliant Wise Holdings Limited, and certain other entities, and the shares issued pursuant to such agreement and relevant resolutions are made for an inter-group restructuring purpose, and will not trigger the adjustment of the Conversion Price.

 

[Remainder of Page Intentionally Left Blank]

 

59

 

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

 

	
 
    	
“THE COMPANY”
    
	
 
    	
GDS HOLDINGS LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ 黄伟
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
   Authorized Signatory:
    	
William Wei   Huang (黄伟)
    
	
 
    	
Title of
   Authorized Signatory:
    	
Director
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

	
 
    	
“PREFERRED SHAREHOLDERS”
    
	
 
    	
STT GDC   PTE. LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Bruno Lopez
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
   Authorized Signatory:
    	
Bruno Lopez
    
	
 
    	
Title of
   Authorized Signatory:
    	
Director
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

	
 
    	
“PREFERRED   SHAREHOLDERS”
    
	
 
    	
SBCVC COMPANY LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ping Hua
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
   Authorized Signatory:
    	
Ping Hua
    
	
 
    	
Title of
   Authorized Signatory:
    	
Director
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

	
 
    	
“PREFERRED   SHAREHOLDERS”
    
	
 
    	
SBCVC FUND II, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ping Hua
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
   Authorized Signatory:
    	
Ping Hua
    
	
 
    	
Title of
   Authorized Signatory:
    	
Managing   Partner
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

	
 
    	
“PREFERRED   SHAREHOLDERS”
    
	
 
    	
SBCVC   VENTURE CAPITAL
    
	
 
    	
(软库博辰创业投资企业)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ping Hua
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
   Authorized Signatory:
    	
Ping Hua
    
	
 
    	
Title of
   Authorized Signatory:
    	
Member of the   Joint
    
	
 
    	
 
    	
Management   Committee
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

	
 
    	
“PREFERRED   SHAREHOLDERS”
    
	
 
    	
SBCVC FUND II-ANNEX, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ping Hua
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
   Authorized Signatory:
    	
Ping Hua
    
	
 
    	
Title of
   Authorized Signatory:
    	
Managing   Partner
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

	
 
    	
“PREFERRED   SHAREHOLDERS”
    
	
 
    	
SBCVC FUND III L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ping Hua
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
   Authorized Signatory:
    	
Ping Hua
    
	
 
    	
Title of
   Authorized Signatory:
    	
Managing   Partner
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

	
 
    	
“PREFERRED   SHAREHOLDERS”
    
	
 
    	
SEABRIGHT SOF   (I) PAPER LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Tang Chi   Chun
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
   Authorized Signatory:
    	
Tang Chi Chun
    
	
 
    	
Title of
   Authorized Signatory:
    	
Director
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

 

	
 
    	
“PREFERRED   SHAREHOLDERS”
    FOREBRIGHT MANAGEMENT  LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ HE Ling
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
    	
 
    
	
 
    	
Authorized Signatory:
    	
HE Ling
    
	
 
    	
Title of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Director
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

 

	
 
    	
“PREFERRED SHAREHOLDERS”

MAXPOINT DEVELOPMENT LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Changgen Wu
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Changgen Wu
    
	
 
    	
Title of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Director
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

 

	
 
    	
“KEY   FOUNDERS”
    SBGD INVESTMENT LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Luo Zhi Ping
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Luo Zhi Ping
    
	
 
    	
Title of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Director
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

 

	
 
    	
“KEY   FOUNDERS”
    EDC GROUP LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ 黄伟
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
    	
 
    
	
 
    	
Authorized Signatory:
    	
William Wei Huang (黄伟)
    
	
 
    	
Title of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Director
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

 

	
 
    	
“KEY   FOUNDERS”
    GDS ENTERPRISES LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ 
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
    	
 
    
	
 
    	
Authorized Signatory:
    	
William Wei Huang ()
    
	
 
    	
Title of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Director
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

 

	
 
    	
“KEY   FOUNDERS”
    OFIRA CAPITAL LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Daniel Antony Newman
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Daniel Antony NEWMAN
    
	
 
    	
Title of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Director
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

 

	
 
    	
“KEY FOUNDERS”
    EXCEL PRAYER LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Shi Lan
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Shi Lan
    
	
 
    	
Title of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Director
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

 

	
 
    	
“KEY FOUNDERS”
    SOLUTION LEISURE INVESTMENT LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ 黄伟
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
    	
 
    
	
 
    	
Authorized Signatory:
    	
William Wei Huang (黄伟)
    
	
 
    	
Title of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Director
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

 

	
 
    	
“KEY FOUNDERS”
    GLOBAL DATA SOLUTIONS LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ 黄伟
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
    	
 
    
	
 
    	
Authorized Signatory:
    	
William Wei Huang (黄伟)
    
	
 
    	
Title of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Director
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

 

	
 
    	
“KEY FOUNDERS”
    WILLIAM WEI HUANG (黄伟)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ 黄伟
    

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

 

	
 
    	
“OTHER SHAREHOLDERS”
    BEST MILLION GROUP   LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Yang Juan
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Yang Juan
    
	
 
    	
Title of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Director
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

 

	
 
    	
“OTHER SHAREHOLDERS”
    FORTUNE MILLION INTERNATIONAL CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lu Ronghan
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Lu Ronghan
    
	
 
    	
Title of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Director 
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

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

 

 

	
 
    	
“OTHER SHAREHOLDERS”
    LINMAX ASIA LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lim Ah Doo
    
	
 
    	
 
    	
 
    
	
 
    	
Print Name of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Lim Ah Doo
    
	
 
    	
Title of
    	
 
    
	
 
    	
Authorized Signatory:
    	
Director 
    
				

 

SIGNATURE PAGE TO SIXTH AMENDED AND RESTATED MEMBERS AGREEMENT

 

 

EXHIBIT A

 

SERIES A SHAREHOLDERS

 

	
Name and Address of Series A Shareholder
    
	
 
    
	
SBCVC Fund II, L.P.
   (a partnership with limited liability registered and existing under the laws   of the Cayman Islands with registered number CT-17141)
    
   Cricket Square, Hutchins Drive
   P.O.Box 2681
   Grand Cayman KYI-1111
   Cayman Islands
   Attn: Peter Hua
   Fax: (8621) 5240-0700
   Email: peterhua@sbcvc.com
    
	
 
    
	
Seabright SOF(I) Paper Limited
   (a company incorporated and existing under the laws of the British Virgin   Islands with registered number 1030636)
    
   40/F., Far East Finance Centre
   6 Harcourt Road
   Hong Kong
   Attn: Ip Kun Wan, Kiril
   Fax: +852 2520 5125
   Email: kiril.ip@forebrightcapital.com
    
	
 
    
	
Maxpoint Development Limited
   (a company incorporated and existing under the laws of British Virgin   Islands, with registered number: 1061834)
    
   40th Floor Bank of China Tower 1 Garden Road
   Hong Kong
   Attn: CG.Wu
   Fax: 852 2103 0808
   Email: changgen.wu@morganstanley.com
    

 

 

	
Name and Address of Series A Shareholder
    
	
 
    
	
Forebright Management Limited
   (a company incorporated and existing under the laws of the British Virgin   Islands with registered number 1019522)
    
   Suite 3720, Jardine House, 1 Connaught Place,
   Central, Hong Kong
   Attn: Ip Kun Wan, Kiril
   Fax: +852 2520 5125
   Email: kiril.ip@forebrightcapital.com
    

 

 

EXHIBIT A-1

 

SERIES B SHAREHOLDERS

 

 

Name and Address of Series B Shareholder

SBCVC Fund II-Annex, L.P.

(a partnership with limited liability registered and existing under the laws of the Cayman Islands with registered number CT-23170)

 

Codan Trust Company (Cayman) Limited
 Cricket Square, Hutchins Drive
 P.O.Box 2681
 Grand Cayman KYI-1111

Cayman Islands

Attn: Peter Hua

Fax: (8621) 5240-0700

Email: peterhua@sbcvc.com

 

 

EXHIBIT A-2

 

SERIES A* SHAREHOLDERS

 

Name and Address of Series A* Shareholder

SBCVC Company Limited

(a company incorporated and existing under the laws of Hong Kong with registered number 1144947)

 

Unit 12

19th Floor, Tower B, Southmark

11 Yip Hing Street, Wong Chuk Hang

Hong Kong

Attn:       Ping Hua
 Fax:        (8621) 5240-0366
 Email:    peterhua@sbcvc.com

 

 

EXHIBIT A-3

 

SERIES B1 SHAREHOLDERS

 

Name and Address of Series B1 Shareholder

SBCVC Company Limited

(a company incorporated and existing under the laws of Hong Kong with registered number 1144947)

 

Unit 12, 19th Floor, Tower B, Southmark, 11 Yip Hing Street, Wong Chuk Hang, Hong Kong

 

Attn:       Peter Hua

Fax:        (8621) 5240-0366

Email:    peterhua@sbcvc.com

 

SBCVC Venture Capital (软库博辰创业投资企业)

(a co-operative joint venture enterprise incorporated and existing under the laws of PRC with registered number 320594500004043)

 

15A-C, Hua Min Empire Plaza
 728 Yan An Road (West)
 Shanghai, 200050

China

 

Attn:       Peter Hua

Fax:        (8621) 5240-0366

Email:    peterhua@sbcvc.com

 

 

EXHIBIT A-3

 

SERIES B2 SHAREHOLDERS

 

Name and Address of Series B2 Shareholder

SBCVC Company Limited

(a company incorporated and existing under the laws of Hong Kong with registered number 1144947)

 

Unit 12, 19th Floor, Tower B, Southmark, 11 Yip Hing Street, Wong Chuk Hang, Hong Kong

 

Attn:       Peter Hua

Fax:        (8621) 5240-0366

Email:    peterhua@sbcvc.com

 

 

EXHIBIT A-3

 

SERIES B4 SHAREHOLDER

 

Name and Address of Series B4 Shareholder

SBCVC Fund III L.P.

(a partnership with limited liability registered and existing under the laws of the Cayman Islands with registered number CT-24546)

 

Cricket Square, Hutchins Drive
 P.O.Box 2681
 Grand Cayman KYI-1111
 CAYMAN ISLANDS

 

Attn:       Peter Hua

Fax:        (8621) 5240-0366

Email:    peterhua@sbcvc.com

 

 

EXHIBIT A-3

 

SERIES B5 SHAREHOLDER

 

Name and Address of Series B5 Shareholder 

SBCVC Fund III L.P.

(a partnership with limited liability registered and existing under the laws of the Cayman Islands with registered number CT-24546)

 

Cricket Square, Hutchins Drive
 P.O.Box 2681
 Grand Cayman KYI-1111
 CAYMAN ISLANDS

 

Attn:       Peter Hua

Fax:        (8621) 5240-0366

Email:    peterhua@sbcvc.com

 

 

EXHIBIT A-4

 

SERIES C SHAREHOLDER

 

Name and Address of the Series C Shareholder

 

STT GDC Pte. Ltd.

(a company incorporated and existing under the laws of the Republic of Singapore with registered number 201228542D)

1 Temasek Avenue

#33-01 Millenia Tower

Singapore 039192

Attn: Company Secretary

Fax: +65 6720 7220

 

 

 

EXHIBIT B

 

KEY FOUNDERS

 

Name and Address of Key Founders

Excel Prayer Limited

(a company incorporated and existing under the laws of the British Virgin Islands with registered number 555554)

 

Room 304

Chang Feng Er Cun 110#

Jin Sha Jiang Road

Shanghai 200062 P.R.China

 

Global Data Solutions Limited

(a company incorporated and existing under the laws of the Cayman Islands with registered number CT 128826)

 

Cricket Square, Hutchins Drive

P.O.Box 2681

Grand Cayman KY1-1111

Cayman Islands

 

SBGD Investment Limited

(a company incorporated and existing under the laws of the British Virgin Islands with registered number 1628587)

 

OMC Chambers, Wickhams Cay 1,

Road Town, Tortola,

British Virgin Islands

 

EDC Group Limited

(a company incorporated and existing under the laws of the British Virgin Islands with registered number 1628788)

 

OMC Chambers, Wickhams Cay 1,

Road Town, Tortola,

British Virgin Islands

 

 

Name and Address of Key Founders

 

GDS Enterprises Limited

(a company incorporated and existing under the laws of the British Virgin Islands with registered number 1628589)

 

OMC Chambers, Wickhams Cay 1,

Road Town, Tortola,

British Virgin Islands

 

OFIRA CAPITAL LIMITED

(a company incorporated and existing under the laws of the British Virgin Islands with registered number 1567746)

 

263 Main Street,

Road Town, Tortola,

British Virgin Islands

 

Solution Leisure Investment Ltd.

(a company incorporated and existing under the laws of the British Virgin Islands with registered number 551497)

 

2/F, Tower 2, Youyou Century Place, 428 South Yanggao Road,

Pudong, Shanghai 200127, P.R.C.

Attn:       William Wei Huang (黄伟)

Fax:        86-21-20330202

Email:    huangwei@gds-services.com

 

William Wei Huang (黄伟)

 

2/F, Tower 2, Youyou Century Place, 428 South Yanggao Road,

Pudong, Shanghai 200127, P.R.C.

Attn:       William Wei Huang (黄伟)

Fax:        86-21-20330202

Email:    huangwei@gds-services.com

 

 

EXHIBIT C

 

OTHER SHAREHOLDERS

 

Name and Address of Other Shareholders

Best Million Group Limited

(a company incorporated and existing under the laws of the British Virgin Islands with registered number 1634472)

 

2/F, Tower 2, Youyou Century Place, 428 South Yanggao Road,

Pudong, Shanghai 200127, P.R.C.

Attn:       William Wei Huang (黄伟)

Fax:        86-21-20330202

Email:    huangwei@gds-services.com

 

Fortune Million International Corporation

(a company incorporated and existing under the laws of the British Virgin Islands with registered number 1910205)

 

OMC Chambers, Wickham Cay 1, Road Town, Tortola, British Virgin Islands

Attn: Lu Ronghan

Email: crescent.lu@fosmail.com

 

Linmax Asia Limited

(a company incorporated and existing under the laws of the British Virgin Islands with registered number 1903042)

 

Portcullis TrustNet Chambers,

4th Floor, Ellen Skelton Building,

3076 Sir Francis Drake Highway, Road Town,

Tortola, British Virgin Islands

Attn: Lim Ah Doo

Email: adlim311@gmail.com

 

 

EXHIBIT D

 

SCHEDULE OF GROUP COMPANIES

 

The Company

 

(1)        GDS Holdings Limited

 

The Subsidiaries (including the VIE Entities)

 

(2)        EDC Holding Limited

 

(3)        Further Success Limited

 

(4)        EDC China Holdings Limited

 

(5)        EDE I (HK) Limited

 

(6)        EDE II (HK) Limited

 

(7)        EDE III (HK) Limited

 

(8)        EDB (HK) Limited

 

(9)        EDB II (HK) Limited

 

(10)      FEP (HK) Limited

 

(11)      EDCQ (HK) Limited

 

(12)      EDH (HK) Limited

 

(13)      EDS (HK) Limited

 

(14)      Megaport International Limited

 

(15)      GDS (Hong Kong) Limited

 

(16)      EDCD (HK) Limited

 

(17)      EDKS (HK) Limited

 

(18)      EDSUZ (HK) Limited

 

(19)      GDS Data Services Company Ltd. (located in Macau)

 

(20)      GDS Services Limited

 

(21)      GDS Services (Hong Kong) Limited

 

(22)      Global Data Solutions Co., Ltd. 万国数据服务有限公司

 

(23)      EDC (Chengdu) Industry Co., Ltd. 万国数据(成都)实业有限公司

 

(24)                EDC Technology (Kunshan) Co., Ltd. 万国数据科技发展(昆山)有限公司

 

(25)                EDC Technology (Suzhou) Co., Ltd. 万国数据科技发展(苏州)有限公司

 

(26)                Shanghai Waigaoqiao EDC Technology Co., Ltd. 上海外高桥万国数据科技发展有限公司

 

(27)                Guojin Technology (Kunshan) Co., Ltd. 国金数据科技发展(昆

 

 

山)有限公司

 

(28)                Shanghai Yungang EDC Technology Co., Ltd. 上海云港万国数据科技发展有限公司

 

(29)                Shenzhen Yungang EDC Technology Co., Ltd. 深圳云港万国数据科技发展有限公司

 

(30)                Beijing Wan’guo Chang’an Science & Technology Co., Ltd. 北京万国长安科技有限公司

 

(31)                Shanghai Shu’an Data Services Ltd. 上海曙安数据服务有限公司

 

(32)                Beijing Hengpu’an Digital Technology Development Co., Ltd. 北京恒普安数码科技发展有限公司

 

(33)                Beijing Wanguo Shu’an Science & Technology Development Co., Ltd. 北京万国曙安科技发展有限公司

 

(34)                Shanghai Free Trade Zone GDS Management Co., Ltd. 上海自贸区万国数据管理有限公司

 

(35)                Shanghai Puchang Data Science & Technology Development Co., Ltd. 上海普长数据科技发展有限公司

 

(36)                Shenzhen Pingshan New Area Global Data Science & Technology Development Co., Ltd. 深圳市坪山新区万国数据科技发展有限公司

 

(37)                Kunshan Wanyu Data Service Co., Ltd. 昆山万宇数据服务有限公司

 

 

SCHEDULE 1

 

FORM OF DEED OF ADHERENCE

 

THIS DEED is made the      day of         20[ ] by [ ] of [ ] (the “New Member”) and is supplemental to the Sixth Amended and Restated Members Agreement of GDS Holdings Limited dated [•], 2016 made between GDS Holdings Limited (the “Company”), William Wei Huang, Global Data Solutions Limited, STT GDC Pte. Ltd. and other Members of the Company (such agreement as amended, restated or supplemented from time to time, the “Members Agreement”).

 

WITNESSETH as follows:

 

The New Member confirms that it has been provided with a copy of the Members Agreement and all amendments, restatements and supplements thereto and hereby covenants with each of the parties to the Members Agreement from time to time to observe, perform and be bound by all the terms and conditions of the Members Agreement which are capable of applying to the New Member to the intent and effect that the New Member shall be deemed as and with effect from the date hereof to be a party to the Members Agreement and to be a Member (as defined in the Members Agreement).

 

The address and facsimile number at which notices are to be served on the New Member under the Members Agreement and the person for whose attention notices are to be addressed are as follows:

 

[to insert the contact details]

 

Words and expressions defined in the Members Agreement shall have the same meaning in this Deed.  This Deed shall be governed by and construed in accordance with the laws of Hong Kong.

 

This Deed shall take effect as a deed poll for the benefit of the Company, William Wei Huang, Global Data Solutions Limited, STT GDC Pte. Ltd. and other parties to the Members Agreement.

 

IN WITNESS whereof the New Member has executed this Deed the day and year first above written.

 

THE COMMON SEAL of [ ])

 

was hereunto affixed          )

 

in the presence of:               )

 

	
 
    	
 
    
	
(Director)
    	
 
    
	
 
    	
 
    
	
(Director/Secretary)

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