Document:

Exhibit

FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT 
AND GUARANTY AGREEMENT

This First Amendment to Amended and Restated Credit and Guaranty Agreement (this “Amendment”) is made as of this 23rd day of July, 2019, by and among CTR PARTNERSHIP, L.P., a Delaware limited partnership (the “Borrower”), CARETRUST REIT, INC., a Maryland corporation (the “REIT Guarantor”), the other Guarantors identified herein, KEYBANK NATIONAL ASSOCIATION, as Administrative Agent (the “Administrative Agent”), on behalf of itself and certain other lenders (each a “Lender” and collectively, the “Lenders”) and the Lenders party hereto. Unless otherwise defined herein, terms defined in the Credit Agreement set forth below shall have the same meaning herein.
W I T N E S S E T H:
WHEREAS, the Borrower, the REIT Guarantor and the other Guarantors party thereto, the Administrative Agent and certain of the Lenders have entered into a certain Amended and Restated Credit and Guaranty Agreement dated as of February 8, 2019 (the “Credit Agreement”); and 
WHEREAS, the Borrower, the Guarantors, the Administrative Agent and the Lenders have agreed to amend the Credit Agreement as set forth herein. 
NOW, THEREFORE, in consideration of the mutual promises and agreements herein contained, the parties hereto hereby agree as follows:
1.Pricing.  The Administrative Agent and Lenders acknowledge and agree that, notwithstanding the actual Consolidated Leverage Ratio as of March 31, 2019, the Applicable Margin under the Credit Agreement shall remain at Level 1 in the Pricing Grid until such date as the financial statements and Compliance Certificate are delivered (or were required to be delivered) for the quarter ending June 30, 2019.  The agreement of the Administrative Agent and Lenders with respect to the above pricing level shall be deemed to be a one-time agreement, and the Applicable Margin under the Credit Agreement shall at all times hereafter be determined based requirements set forth in the Credit Agreement.
2.    Amendment to Credit Agreement.
(a)    The following definition is hereby inserted in Article I of the Credit Agreement in appropriate alphabetical order:
“Fitch shall mean Fitch Ratings, Inc. and any successor thereto.”
(b)    The paragraph in the definition of Applicable Margin immediately preceding the IGR Pricing Grid is hereby deleted in its entirety and shall be replaced by the following:
“Notwithstanding the foregoing, in the event that, following the Closing Date, the REIT Guarantor obtains a credit rating of BBB-/Baa3 or higher from S&P or Moody’s (each such rating, an “Investment Grade Rating”) on its senior long term 

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unsecured debt, then at the election of the Borrower, which election shall be irrevocable if made, then the Pricing Grid set forth above shall be replaced in its entirety with, and the Applicable Margin shall thereafter be determined by reference to, the grid set forth below (the “IGR Pricing Grid”).  In the event that the REIT Guarantor obtains two Investment Grade Ratings (which, for the purposes of this sentence only, shall include a credit rating from Fitch) and the Borrower elects to replace the Pricing Grid with the IGR Pricing Grid, then the Applicable Margin shall be determined by reference to the IGR Pricing Grid as follows: (i) if the lower of the two Investment Grade Ratings is one level below the higher of the Investment Grade Ratings as set forth in the IGR Pricing Grid, then the Applicable Margin shall be the higher of the two Investment Grade Ratings, and (ii) if the lower of the two Investment Grade Ratings is two or more levels below the higher of the Investment Grade Ratings as set forth in the IGR Pricing Grid, then the Applicable Margin shall be the level of the IGR Pricing Grid that is one level below the highest Investment Grade Rating received by the REIT Guarantor.  If at any time when the REIT Guarantor has three (3) Investment Grade Ratings (which, for the purposes of this sentence only, shall include a credit rating from Fitch), such Investment Grade Ratings are not equivalent, then (A) if the difference between the highest and the lowest of such Investment Grade Ratings is one ratings category (e.g. Baa2 by Moody’s and BBB- by S&P or Fitch), the Applicable Margin shall be the level of the IGR Pricing Grid based on the highest of the Investment Grade Ratings, and (B) if the difference between such Investment Grade Ratings is two ratings categories (e.g. Baa1 by Moody’s and BBB- by S&P or Fitch) or more, the Ratings-Based Applicable Margin shall be the level of the IGR Pricing Grid based on the average of the two (2) highest Investment Grade Ratings, provided that if such average is not a recognized rating category, then the Applicable Margin shall be the level of the IGR Pricing Grid based on the second highest Investment Grade Rating.  If the REIT Guarantor has neither a Credit Rating from Moody’s nor S&P, then the highest pricing will apply.”
3.    Representations and Warranties.  
(a)    The Loan Parties hereby represent, warrant and covenant with Administrative Agent and Lenders that, as of the date hereof:
		
	(i)
	All representations and warranties made in the Credit Agreement and other Loan Documents are true and correct in all material respects on and as of the Effective Date with the  same effect as though made on and as of such date, except to the extent that such representations and warranties expressly refer to an earlier date, in which case they shall be true and correct in all material respects of such earlier date (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case such representations and warranties shall be true and correct in all respects).  

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	(ii)
	There exists no Default or Event of Default under any of the Loan Documents.

4.    Conditions to Effectiveness.  This Amendment shall not be effective (the “First Amendment Effective Date”) until each of the following conditions precedent has been fulfilled to the reasonable satisfaction of the Administrative Agent:
(a)    This Amendment shall have been duly executed and delivered by the Loan Parties, the Administrative Agent and the Lenders.
(b)    All action on the part of the Loan Parties necessary for the valid execution, delivery and performance by the Loan Parties of this Amendment shall have been duly and effectively taken.  The Lenders shall have received such customary corporate resolutions, certificates and other customary corporate documents as the Administrative Agent shall reasonably request.
(c)    After giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing.
5.    This Amendment, which may be executed in multiple counterparts, constitutes the entire agreement of the parties regarding the matters contained herein and shall not be modified by any prior oral or written discussions.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic imaging transmission (e.g. PDF by email) shall be effective as delivery of a manually executed counterpart of this Amendment.  The Loan Parties hereby ratify, confirm and reaffirm all of the terms and conditions of the Credit Agreement, and each of the other Loan Documents, and further acknowledges and agrees that all of the terms and conditions of the Credit Agreement shall remain in full force and effect except as expressly provided in this Amendment.  This Amendment constitutes a Loan Document for all purposes under the Credit Agreement.
6.    Any determination that any provision of this Amendment or any application hereof is invalid, illegal or unenforceable in any respect and in any instance shall not affect the validity, legality or enforceability of such provision in any other instance, or the validity, legality or enforceability of any other provisions of this Amendment.
7.    This Agreement shall be governed by and construed in accordance with the laws of the State of New York.
[SIGNATURES ON FOLLOWING PAGE]

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It is intended that this Amendment take effect as an instrument under seal as of the date first written above.
	
		
	 
	 

	 
	CTR PARTNERSHIP, L.P., a Delaware limited partnership
By:   CareTrust GP, LLC, its general partner
   
By:   CareTrust REIT, Inc., its sole member

By:    /s/ William M. Wagner___ 
Name:    William M. Wagner 
Title:    Chief Financial Officer,          Treasurer and Secretary 

         

	 
	CARETRUST REIT, INC., a Maryland corporation

By:    /s/ William M. Wagner_______________ 
Name:   William M. Wagner 
Title:   Chief Financial Officer, Treasurer and Secretary

	 
	CARETRUST CAPITAL CORP., a Delaware corporation

By:    /s/ William M. Wagner_______________ 
Name:    William M. Wagner 
Title:    Chief Financial Officer, Treasurer and Secretary

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

[Signature page to First Amendment to Amended and Restated Credit and Guaranty Agreement]

	
		
	 
	CARETRUST GP, LLC
CTR ARVADA PREFERRED, LLC
CTR CASCADIA PREFERRED, LLC, each a Delaware limited liability company

By:   /s/ William M. Wagner_______________ 
Name:   William M. Wagner 
Title:    Chief Financial Officer, Treasurer and Secretary

	 
	4TH STREET HOLDINGS LLC
18TH PLACE HEALTH HOLDINGS LLC
49TH STREET HEALTH HOLDINGS LLC
51ST AVENUE HEALTH HOLDINGS LLC 
ANSON HEALTH HOLDINGS LLC
ARAPAHOE HEALTH HOLDINGS LLC 
ARROW TREE HEALTH HOLDINGS LLC 
AVENUE N HOLDINGS LLC
BIG SIOUX RIVER HEALTH HOLDINGS LLC
BOARDWALK HEALTH HOLDINGS LLC 
BOGARDUS HEALTH HOLDINGS LLC 
BURLEY HEALTHCARE HOLDINGS LLC 
CASA LINDA RETIREMENT LLC 
CEDAR AVENUE HOLDINGS LLC
CHERRY HEALTH HOLDINGS LLC
CM HEALTH HOLDINGS LLC
COTTONWOOD HEALTH HOLDINGS LLC 
DALLAS INDEPENDENCE LLC
DIXIE HEALTH HOLDINGS LLC
EMMETT HEALTHCARE HOLDINGS LLC 
ENSIGN BELLFLOWER LLC
ENSIGN HIGHLAND LLC
ENSIGN SOUTHLAND LLC
EVERGLADES HEALTH HOLDINGS LLC 
EXPO PARK HEALTH HOLDINGS LLC 
EXPRESSWAY HEALTH HOLDINGS LLC 
FALLS CITY HEALTH HOLDINGS LLC 
FIFTH EAST HOLDINGS LLC
FIG STREET HEALTH HOLDINGS LLC
FLAMINGO HEALTH HOLDINGS LLC 
FORT STREET HEALTH HOLDINGS LLC 
GAZEBO PARK HEALTH HOLDINGS LLC 
GILLETTE PARK HEALTH HOLDINGS LLC

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

[Signature page to First Amendment to Amended and Restated Credit and Guaranty Agreement]

 

	
		
	 
	GOLFVIEW HOLDINGS LLC
GRANADA INVESTMENTS LLC
GUADALUPE HEALTH HOLDINGS LLC
HILLENDAHL HEALTH HOLDINGS LLC 
HILLVIEW HEALTH HOLDINGS LLC 
IRVING HEALTH HOLDINGS LLC
IVES HEALTH HOLDINGS LLC 
JEFFERSON RALSTON HOLDINGS LLC 
JORDAN HEALTH PROPERTIES LLC
JOSEY RANCH HEALTHCARE HOLDINGS LLC
KINGS COURT HEALTH HOLDINGS LLC 
LAFAYETTE HEALTH HOLDINGS LLC
LEMON RIVER HOLDINGS LLC 
LOCKWOOD HEALTH HOLDINGS LLC 
LONG BEACH HEALTH ASSOCIATES LLC 
LOWELL HEALTH HOLDINGS LLC 
LOWELL LAKE HEALTH HOLDINGS LLC 
LUFKIN HEALTH HOLDINGS LLC 
MEADOWBROOK HEALTH ASSOCIATES LLC
MEMORIAL HEALTH HOLDINGS LLC 
MESQUITE HEALTH HOLDINGS LLC 
MISSION CCRC LLC
MOENIUM HOLDINGS LLC
MOUNTAINVIEW COMMUNITYCARE LLC
NORTHSHORE HEALTHCARE HOLDINGS LLC
OLESON PARK HEALTH HOLDINGS LLC 
OREM HEALTH HOLDINGS LLC 
PAREDES HEALTH HOLDINGS LLC 
PLAZA HEALTH HOLDINGS LLC
POLK HEALTH HOLDINGS LLC
PRAIRIE HEALTH HOLDINGS LLC 
PRICE HEALTH HOLDINGS LLC
QUEEN CITY HEALTH HOLDINGS LLC
QUEENSWAY HEALTH HOLDINGS LLC 
RB HEIGHTS HEALTH HOLDINGS LLC 
REGAL ROAD HEALTH HOLDINGS LLC 
RENEE AVENUE HEALTH HOLDINGS LLC 
RILLITO HOLDINGS LLC
RIO GRANDE HEALTH HOLDINGS LLC 
SALMON RIVER HEALTH HOLDINGS LLC 
SALT LAKE INDEPENDENCE LLC
SAN CORRINE HEALTH HOLDINGS LLC 
SARATOGA HEALTH HOLDINGS LLC
SILVER LAKE HEALTH HOLDINGS LLC 
SILVERADA HEALTH HOLDINGS LLC 
SKY HOLDINGS AZ LLC

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

[Signature page to First Amendment to Amended and Restated Credit and Guaranty Agreement]

 

	
		
	 
	SNOHOMISH HEALTH HOLDINGS LLC
SOUTH DORA HEALTH HOLDINGS LLC 
STILLHOUSE HEALTH HOLDINGS LLC 
TEMPLE HEALTH HOLDINGS LLC 
TENTH EAST HOLDINGS LLC
TERRACE HOLDINGS AZ LLC
TRINITY MILL HOLDINGS LLC 
TROUSDALE HEALTH HOLDINGS LLC
TULALIP BAY HEALTH HOLDINGS LLC
VALLEY HEALTH HOLDINGS LLC 
VERDE VILLA HOLDINGS LLC
WAYNE HEALTH HOLDINGS LLC
WILLITS HEALTH HOLDINGS LLC 
WILLOWS HEALTH HOLDINGS LLC
WISTERIA HEALTH HOLDINGS LLC, each a Nevada limited liability company

By:   /s/ William M. Wagner_______________ 
Name:   William M. Wagner 
Title:    Chief Financial Officer, Treasurer and Secretary

[Signature page to First Amendment to Amended and Restated Credit and Guaranty Agreement]

 

	
		
	 
	ADMINISTRATIVE AGENT AND LENDERS:

	 
	KEYBANK NATIONAL ASSOCIATION, as the Administrative Agent, as the Issuing Bank, as the Swingline Lender and as a Lender

By:    /s/ Eric Hafertepen________________
Name: Eric Hafertepen
Title:   Vice President, Real Estate Capital  

	 
	 

[Signature page to First Amendment to Amended and Restated Credit and Guaranty Agreement]

 

	
		
	 
	BMO HARRIS BANK N.A., as a Lender

By:    /s/ Lloyd Baron__________________
Name:   Lloyd Baron
Title:   Director 

[Signature page to First Amendment to Amended and Restated Credit and Guaranty Agreement]

 

	
		
	 
	CAPITAL ONE, NATIONAL ASSOCIATION, as a Lender

By:    /s/ Bruce Chen___________________
Name:   Bruce Chen
Title:   Authorized Signatory

[Signature page to First Amendment to Amended and Restated Credit and Guaranty Agreement]

 

	
		
	 
	WELLS FARGO BANK, N.A., as a Lender

By:    /s/ Darin Mullis_________________
Name:   Darin Mullis
Title:   Managing Director

[Signature page to First Amendment to Amended and Restated Credit and Guaranty Agreement]

 

	
		
	 
	BARCLAYS BANK PLC, as a Lender

By:    /s/ Craig Malloy_______________
Name:   Craig Malloy
Title:   Director

[Signature page to First Amendment to Amended and Restated Credit and Guaranty Agreement]

 

	
		
	 
	RAYMOND JAMES BANK, N.A., as a Lender

By:    /s/ Matt Stein____________________
Name:   Matt Stein
Title:   Senior Vice President

[Signature page to First Amendment to Amended and Restated Credit and Guaranty Agreement]

 

	
		
	 
	FIFTH THIRD BANK, as a Lender

By:    /s/ Thomas Avery_____________
Name:   Thomas Avery
Title:   Director

[Signature page to First Amendment to Amended and Restated Credit and Guaranty Agreement]

 

	
		
	 
	THE HUNTINGTON NATIONAL BANK, as a Lender

By:    /s/ Eva S. McQuillen______________
Name:   Eva S. McQuillen
Title:   Vice President

[Signature page to First Amendment to Amended and Restated Credit and Guaranty Agreement]

 

	
		
	 
	FIRST BANK, A MISSOURI STATE CHARTERED BANK, as a Lender

By:    /s/ Phillip M. Lykens____________
Name:   Phillip M. Lykens
Title:   Senior Vice President

[Signature page to First Amendment to Amended and Restated Credit and Guaranty Agreement]

 

	
		
	 
	BANK OF AMERICA, N.A., as a Lender

By:    /s/ Sebastian Lurie_______________
Name:   Sebastian Lurie
Title:   Senior Vice President

[Signature page to First Amendment to Amended and Restated Credit and Guaranty Agreement]EX-10.1

 Exhibit 10.1 

[STAR III LETTERHEAD] 
 August 5, 2019 

Steadfast Apartment Advisor III, LLC 
 18100 Von Karman Avenue,
Suite 500 
 Irvine, California 92612 

Re:    Steadfast Apartment REIT III, Inc. – Advisory Agreement 

Ladies and Gentlemen: 
 This letter agreement
sets forth certain agreements and understandings that each of Steadfast Apartment Advisor III, LLC (the “Advisor”) and Steadfast Apartment REIT III, Inc. (the “Company”) has agreed to undertake in connection with
the Company’s proposed business combination with Steadfast Apartment REIT, Inc. (the “Merger”) pursuant to the Agreement and Plan of Merger among them and certain affiliated entities dated as of the date hereof (the
“Merger Agreement”). Capitalized terms used but not defined herein shall have the respective meanings given to such terms in the Amended and Restated Advisory Agreement among the Company, its operating partnership and the Advisor,
dated July 25, 2016, as amended. 
 1.    Disposition Fees. 

(a)    The Advisor hereby waives any claim for a Disposition Fee in connection with the proposed Merger. 

(b)    In the event the Company completes a Final Liquidity Event in connection with a Superior Proposal (as defined in
the Merger Agreement), the amount of the Disposition Fee shall be 1.0% of the total consideration received by the holders of the Company’s common stock in a Final Liquidity Event; provided, however, that such Disposition Fee shall be 1.5% if,
in the good faith determination of the Independent Directors, the Advisor is deemed to have used its reasonable best efforts (i) to assist the special committee of the Company’s board of directors to enter into the Alternative Acquisition
Agreement (as defined in the Merger Agreement) with respect to a Superior Proposal, and (ii) to facilitate (x) the prompt preparation, filing and finalization of a proxy statement relating to the Superior Proposal, (y) the holding of
the stockholder’s meeting to approve the transaction that is the subject of the Superior Proposal as soon as practicable and (z) the solicitation of stockholder approval of such transaction. 

2.    “Dead Deal” Costs. In the event the Company’s stockholders reject the Merger at a duly convened meeting of
stockholders, any of the costs of the Company associated with the attempted Merger shall be borne by the Advisor. 

3.    Termination. The Advisor and the Company hereby terminate the Advisory Agreement, effective upon consummation of the Merger.

 4.    New Convertible Stock. Pursuant to Section 7.11 of the Merger
Agreement, if prior to the closing of the Merger, Steadfast Apartment Advisor, LLC (“STAR Advisor”) requests that, in lieu of the incentive and performance fees provided for in the Amended and Restated STAR Advisory Agreement (as
defined in the Merger Agreement), Steadfast Apartment REIT, Inc. (“STAR”) issue, at the closing of the Merger, convertible stock (the “New Convertible Stock”) in exchange for the convertible stock currently owned by
STAR Advisor (such exchange, the “Exchange”), the Company, upon the approval of the special committee of its board of directors, shall consent (which consent shall not be unreasonably withheld, delayed or conditioned) and shall take
all necessary actions (including amending the Merger Agreement) to provide for the Exchange, including amending the Amended and Restated STAR Advisory Agreement to delete the incentive and performance fees and issuing the New Convertible Stock in
the Exchange. The New Convertible Stock shall have terms and conditions regarding conversion that are substantially similar to the terms set forth in the Amended and Restated STAR Advisory Agreement regarding incentive and performance fees. 

5.    Successors and Assigns. No party shall assign (voluntarily, by operation of law or otherwise) this letter agreement or any
right, interest or benefit under this letter agreement without the prior written consent of each other party. Subject to the foregoing, this letter agreement shall be fully binding upon, inure to the benefit of, and be enforceable by, the parties
hereto and their respective successors and assigns. 
 6.    Invalid Provision. The invalidity or unenforceability of any
provision of this letter agreement shall not affect the other provisions hereof, and this letter agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted. 

7.    Applicable Law. This letter agreement and any disputes relative to the interpretation or enforcement hereto shall be governed
by and construed under the internal laws, as opposed to the conflicts of laws provisions, of the State of California. 

8.    Waiver. EACH OF THE PARTIES HERETO WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM (WHETHER
BASED UPON CONTRACT, TORT OR OTHERWISE) RELATED TO OR ARISING OUT OF THIS LETTER AGREEMENT. The parties hereto each hereby irrevocably submits to the exclusive jurisdiction of the courts of the State of California and the Federal courts of the
United States of America located in Los Angeles, California, in respect of the interpretation and enforcement of the terms of this letter agreement, and in respect of the transactions contemplated hereby, and each hereby waives, and agrees not to
assert, as a defense in any action, suit or proceeding for the interpretation or enforcement hereof, that it is not subject thereto or that such action, suit or proceeding may not be brought or is not maintainable in said courts or that the venue
thereof may not be appropriate or that this letter agreement may not be enforced in or by such courts, and the parties hereto each hereby irrevocably agrees that all claims with respect to such action or proceeding shall be heard and determined in
such a California State or Federal court. 
 9.    Attorneys’ Fees. If a dispute arises concerning the performance, meaning
or interpretation of any provision of this letter agreement or any document executed in connection with this letter agreement, then the prevailing party in such dispute shall be awarded any and all 

  
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costs and expenses incurred by the prevailing party in enforcing, defending or establishing its rights hereunder or thereunder, including, without limitation, court costs and attorneys and expert
witness fees. In addition to the foregoing award of costs and fees, the prevailing also shall be entitled to recover its attorneys’ fees incurred in any post-judgment proceedings to collect or enforce any judgment. 

10.    Entire Agreement. This letter agreement contains the entire agreement and understanding between the parties hereto with
respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The
express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. This letter agreement may not be amended or supplemented other than by an agreement in writing signed by the
parties hereto. 
 11.    Nonwaiver. The failure of any party to insist upon or enforce strict performance by any other party of
any provision of this letter agreement or to exercise any right under this letter agreement shall not be construed as a waiver or relinquishment to any extent of such party’s right to assert or rely upon any such provision or right in that or
any other instance; rather, such provision or right shall be and remain in full force and effect. 
 12.    Counterparts. This
letter agreement may be executed (including by facsimile transmission) with counterpart signature pages or in counterpart copies, each of which shall be deemed an original but all of which together shall constitute one and the same instrument
comprising this letter agreement. 
 [Signatures Follow] 

  
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 If the foregoing accurately sets forth your understanding of our agreement, please sign and
return the enclosed copy of this letter agreement. 
  

			
	Very truly yours,
	
	STEADFAST APARTMENT REIT III, INC.
		
	By:	 	 /s/ Rodney F. Emery

	Name:	 	Rodney F. Emery
	Title:	 	Chief Executive Officer

  

			
	 Acknowledged and Agreed to
 as of
the date first written above:

	
	STEADFAST APARTMENT ADVISOR III, LLC
		
	By:	 	 /s/ Ella Shaw Neyland

	Name:	 	Ella Shaw Neyland
	Title:	 	President

  
 [Signature Page to
Termination Agreement]

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