Document:

Exhibit 10.1

      

      

      VOTING AND SUPPORT AGREEMENT

      

      

      This Voting and Support Agreement (this “Agreement”) is made and entered into as of January 10, 2020, by and among WESCO International, Inc., a Delaware corporation (“Parent”), and
        the stockholders of Anixter International Inc., a Delaware corporation (the “Company”), listed on Schedule A hereto (each, a “Stockholder” and, collectively, the “Stockholders”).

      

      

      RECITALS

      

      

      A.          Concurrently with the execution and delivery of this Agreement, the Company is terminating that certain Second Amended and Restated Agreement and Plan of Merger, by and among CD&R
        Arrow Parent, LLC, CD&R Arrow Merger Sub, Inc., and the Company, dated as of January 1, 2020 (the “CD&R Merger Agreement”) in accordance with its terms, and Parent will pay in full, on behalf of Warrior Merger Sub, Inc., a Delaware
        corporation and a wholly owned subsidiary of Parent (“Merger Sub”) and/or the Company, the Company Termination Fee (as defined in the CD&R Merger Agreement) to CD&R Arrow Parent pursuant to Section 6.06(b) of the CD&R Merger
        Agreement.

      

      

      B.          Concurrently with the execution and delivery of this Agreement, Parent, Merger Sub and the Company are entering into an Agreement and Plan of Merger (as it may be amended, supplemented
        or otherwise modified from time to time, the “Merger Agreement”) that, among other things and subject to the terms and conditions set forth therein, provides for the merger of Merger Sub with and into the Company, with the Company being the
        surviving entity in such merger (the “Merger”).

      

      

      C.          As of the date hereof, each Stockholder is the record and/or “beneficial owner” (within the meaning of Rule 13d-3 under the Exchange Act) of the number of shares of common stock, par
        value $0.01 per share, of the Company (the “Common Stock”) set forth next to such Stockholder’s name on Schedule A hereto, being all of the shares of Common Stock owned of record or beneficially by such Stockholder as of the date
        hereof (with respect to such Stockholder, the “Owned Shares”, and the Owned Shares together with any additional shares of Common Stock that such Stockholder may acquire record and/or beneficial ownership of after the date hereof, such
        Stockholder’s “Covered Shares”).

      

      

      D.          As an inducement and condition for Parent and Merger Sub to enter into the Merger Agreement, each Stockholder has agreed to enter into this Agreement with respect to such Stockholder’s
        Covered Shares.

      
        
          

      

      NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth below and for other good and valuable consideration, the receipt
        and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, do hereby agree as follows:

      

      

      1.          Definitions.  Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Merger Agreement.  When used in this
        Agreement, the following terms shall have the meanings assigned to them in this Section 1.

      

      

      “Expiration Time” shall mean the earlier to occur of (a) the Effective Time and (b) such date and time as the Merger Agreement shall be validly terminated pursuant to Article VIII thereof.

      

      

      “Transfer” shall mean (a) any direct or indirect offer, sale, assignment, encumbrance, pledge, hypothecation, disposition, loan or other transfer (by operation of Law or otherwise), either
        voluntary or involuntary, or entry into any option or other Contract, arrangement or understanding with respect to any offer, sale, assignment, encumbrance, pledge, hypothecation, disposition, loan or other transfer (by operation of Law or
        otherwise), of any Covered Shares or any interest in any Covered Shares (in each case other than this Agreement), (b) the deposit of such Covered Shares into a voting trust, the entry into a voting agreement or arrangement (other than this
        Agreement) with respect to such Covered Shares or the grant of any proxy or power of attorney (other than this Agreement) with respect to such Covered Shares, (c) entry into any hedge, swap or other transaction or Contract which is designed to (or
        is reasonably expected to lead to or result in) a transfer of the economic consequences of ownership of any Covered Shares, whether any such transaction is to be settled by delivery of Covered Shares, in cash or otherwise or (d) any Contract or
        commitment (whether or not in writing) to take any of the actions referred to in the foregoing clauses (a), (b) or (c) above.

      

      

      2.          Agreement to Not Transfer the Covered Shares.

       

      

      2.1         No Transfer of Covered Shares.  Until the Expiration Time, each Stockholder agrees not to Transfer or cause or permit the Transfer of any of such Stockholder’s Covered Shares,
        other than (i) with the prior written consent of Parent (to be granted or withheld in Parent’s sole discretion) or (ii) with respect to the Covered Shares set forth on Schedule A hereto, pursuant to and as currently required by pledge
        arrangements with a third party banking institution in existence as of the date of this Agreement.  Any Transfer or attempted Transfer of any Covered Shares in violation of this Section 2.1 shall be null and void and of no effect
        whatsoever; provided, however, that any Stockholder may Transfer any such Covered Shares to (i) any other Stockholder or any Affiliate of any such Stockholder, (ii) any family member (including a trust for
        such family member’s benefit) of such Stockholder or (iii) any charitable foundation or organization, in each case only if the transferee of such Covered Shares evidences in a writing reasonably satisfactory to Parent such transferee’s agreement to
        be bound by and subject to the terms and provisions hereof to the same effect as such transferring Stockholder; provided, however, that notwithstanding anything to the contrary herein, Stockholders shall be
        permitted to Transfer by gift an aggregate of not more than 600,000 Covered Shares to any charitable foundations or organizations without any restrictions hereunder; provided further, that any such Transfers after the date hereof by any Stockholder
        to the Zell Family Foundation shall not be deemed to be Covered Shares and shall not be subject to the terms and conditions of this Agreement.

      

      

      2.2          Update of Beneficial Ownership Information.  Promptly following the written request of Parent, or upon a Stockholder’s or any of its Affiliates’ acquisition of beneficial (as
        defined in Rule 13d-3 under the Exchange Act) or record ownership of additional shares of Common Stock after the date hereof, such Stockholder will send to Parent a written notice setting forth the number of Covered Shares beneficially owned by
        such Stockholder or any of its Affiliates and indicating the capacity in which such Covered Shares are owned.  Each Stockholder agrees to cause any of its Affiliates that acquires any shares of Common Stock on or after the date hereof to execute an
        agreement in a form reasonably acceptable to Parent to be bound with respect to this Agreement with respect to such shares to the same extent such shares would be subject to this Agreement had they been acquired by such Stockholder.

      
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      3.          Agreement to Vote the Covered Shares.

      

      

      3.1         Until the Expiration Time, at every meeting of the Company’s stockholders at which any of the following matters are to be voted on (and at every adjournment or postponement thereof),
        and on any action or approval of Company’s stockholders by written consent with respect to any of the following matters, each Stockholder shall vote (including via proxy) all of such Stockholder’s Covered Shares (or cause the holder of record on
        any applicable record date to vote (including via proxy) all of such Stockholder’s Covered Shares):

      

      

        (a)          in favor of the adoption of the Merger Agreement; and

      

      

        (b)          against (A) any action or agreement that would reasonably be expected to result in a breach of the Merger Agreement or result in any condition set forth in Article VII of the Merger
        Agreement not being satisfied on a timely basis, (B) any Company Takeover Proposal, or any other proposal made in opposition to, in competition with, or inconsistent with the Merger Agreement, the Merger or the transactions contemplated by the
        Merger Agreement and (C) any other action, agreement or proposal which could reasonably be expected to delay, postpone or adversely affect consummation of the Merger and the other transactions contemplated by the Merger Agreement.

      

      

      3.2          Until the Expiration Time, at every meeting of the Company’s stockholders (and at every adjournment or postponement thereof), each Stockholder shall be represented in person or by
        proxy at such meeting (or cause the holders of record on any applicable record date to be represented in person or by proxy at such meeting) in order for the Covered Shares to be counted as present for purposes of establishing a quorum.

      

      

      3.3       Each Stockholder shall execute and deliver (or cause the holders of record to execute and deliver), within 48 hours of receipt, any proxy card or voting instructions it receives that is
        sent to stockholders of the Company soliciting proxies with respect to any matter described in Section 3.1, which shall be voted in the manner described in Section 3.1 (with Parent to be promptly notified (and provided reasonable
        evidence of) such execution and delivery of such proxy card or voting instructions).

      

      

      3.4        Notwithstanding anything to the contrary in this Agreement, if at any time following the date hereof and prior to the Expiration Time, a Governmental Entity enters an order restraining,
        enjoining or otherwise prohibiting the Stockholders or their Affiliates from taking any action pursuant to Section 3.1, Section 3.2 or Section 3.3 of this Agreement, then (i) the obligations of each Stockholder set forth in
        Section 3.1, Section 3.2 or Section 3.3 of this Agreement shall be of no force and effect for so long as such order is in effect solely to the extent such order restrains, enjoins or otherwise prohibits such Stockholder from
        taking any such action, and (ii) each Stockholder shall cause the Covered Shares to not be represented in person or by proxy at any meeting at which a vote of such Stockholder on the Merger Agreement or the transactions contemplated thereby is
        sought or requested.

      

      

      3.5          Without limiting the obligations of the Stockholders under this Agreement, but only in the event and in each case that such Stockholder fails to be counted as present or fails to vote
        all of such Stockholder’s Covered Shares in accordance with this Agreement or except as provided in Section 3.4 above, then in such event each Stockholder hereby irrevocably appoints as its proxy and attorney-in-fact the officers of Parent,
        and any individual who shall hereafter succeed to any such officer of Parent, and any other Person designated in writing by Parent (collectively, the “Proxy Holders”), each of them individually, with full power of substitution, to vote such
        Stockholder’s Covered Shares in accordance with this Agreement and, in the discretion of the Proxy Holders, with respect to any proposed postponements or adjournments of meetings of the Company’s stockholders at which any of the matters described
        in this Agreement are to be considered. This proxy is coupled with an interest and shall be irrevocable, and each Stockholder shall take such further action or execute such other instruments as may be reasonably necessary to effectuate the intent
        of this proxy and hereby revokes any proxy previously granted by such Stockholder with respect to such Stockholder’s Covered Shares.  Notwithstanding anything to the contrary in this Agreement, the proxy granted by this Section 3.4 shall
        terminate and be of no further force and effect upon the Expiration Time.

      
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      4.         Waiver of Appraisal Rights.  Each Stockholder hereby waives all appraisal rights under Section 262 of the DGCL with respect to all of such Stockholder’s Covered Shares owned
        (beneficially or of record) by such Stockholder.

      

      

      5.          No Solicitation.

      

      

      5.1       From and after the date of this Agreement until the Expiration Time, each Stockholder (solely in the capacity as a stockholder of the Company) shall, and shall cause its Representatives
        to, immediately cease and cause to be terminated any activities, discussions or negotiations being conducted with any persons other than Parent with respect to any Company Takeover Proposal.  In addition, each Stockholder (solely in the capacity as
        a stockholder of the Company) agrees to be subject to Section 5.03 of the Merger Agreement as if each were the “Company” thereunder (including with respect to the obligations to notify Parent promptly, and in any event within 24 hours of
        receipt, in writing of any Company Takeover Proposal or any inquiry with respect to, or that could reasonably be expected to lead to, any Company Takeover Proposal and the identity of the Person or group of Persons making such Company Takeover
        Proposal or inquiry and to provide unredacted copies of all material correspondence and proposed transaction documents, including any financing documents, received by such Stockholder in connection with such Company Takeover Proposal or inquiry,
        or, if communicated orally, a summary of the material terms of such oral communication, and to otherwise keep Parent informed on a current basis of the status of any such Company Takeover Proposal or inquiry, including any material developments or
        change to the material terms thereof).

      

      

      5.2          Notwithstanding the foregoing, from and after the date of the Merger Agreement until the Expiration Time and if the Company is permitted, pursuant to Sections 5.03(b) or 5.03(c)
        of the Merger Agreement, to have discussions or negotiations in response to a Company Takeover Proposal that did not result from a breach (other than a breach that is immaterial and unintentional) of Section 5.03(b) of the Merger Agreement,
        each Stockholder and its Representatives shall be permitted to participate in such discussions or negotiations with such person making such Company Takeover Proposal, to the same extent as the Company is permitted to do so under Sections
          5.03(b) or 5.03(c) of the Merger Agreement, subject to compliance by such Stockholder with the last sentence of Section 5.1 above.

      

      

      6.          No Legal Action.  Each Stockholder shall not, and shall cause its Representatives not to, bring, commence, institute, maintain, prosecute or voluntarily aid any claim, appeal, or
        proceeding which (a) challenges the validity of or seeks to enjoin the operation of any provision of this Agreement or (b) alleges that the execution and delivery of this Agreement by any of the Stockholders (or their performance hereunder solely
        in the capacity as a stockholder of the Company) breaches any fiduciary duty of the Company Board (or any member thereof) or any duty that any of the Stockholders have (or may be alleged to have) to the Company or to the other holders of the Common
        Stock.

      

      

      7.         Fiduciary Duties.  Each Stockholder is entering into this Agreement solely in its capacity as the record holder or beneficial owner of such Stockholder’s Covered Shares.  Nothing
        in this Agreement shall in any way, or shall require any Stockholder to attempt to limit or affect any actions taken by any of Stockholder’s designee(s) serving on the Company Board or any such Stockholder in his or her capacity as a director,
        officer or employee of the Company or any of its Affiliates, from complying with his or her fiduciary obligations while acting in such designee’s capacity as a director of the Company.  No action taken (or omitted to be taken) in any such capacity
        as director, officer or employee shall be deemed to constitute a breach of this Agreement.

      

      

      8.          Notice of Certain Events.  Each Stockholder shall notify Parent in writing promptly of (a) any fact, event or circumstance that would cause, or reasonably be expected to cause or
        constitute, a breach of the representations and warranties of such Stockholder under this Agreement or (b) the receipt by such Stockholder of any notice or other communication from any Person alleging that the consent of such Person is or may be
        required in connection with this Agreement.

      
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      9.          Representations and Warranties of the Stockholder.  Each Stockholder hereby represents and warrants to Parent that:

      

      

      9.1         Due Authority.  The Stockholder has the full power and capacity to make, enter into and carry out the terms of this Agreement and to grant the irrevocable proxy as set forth in
        Section 3.5 hereof.  If the Stockholder is not a natural person, (a) the Stockholder is duly organized, validly existing and in good standing in accordance with the laws of its jurisdiction of formation, as applicable and (b) the execution
        and delivery of this Agreement, the performance of the Stockholder’s obligations hereunder, and the consummation of the transactions contemplated hereby have been validly authorized, and no other consents or authorizations are required to give
        effect to this Agreement or the transactions contemplated by this Agreement. This Agreement has been duly and validly executed and delivered by the Stockholder and constitutes a valid and binding obligation of the Stockholder enforceable against it
        in accordance with its terms, except as enforcement may be limited by general principles of equity whether applied in a court of law or a court of equity and by bankruptcy, insolvency and similar Laws affecting creditors’ rights and remedies
        generally.

      

      

      9.2          Ownership of the Covered Shares.  (a) The Stockholder is, as of the date hereof, the beneficial or record owner of such Stockholder’s Covered Shares, free and clear of any and
        all Liens, other than those (i) created by this Agreement or (ii) as disclosed on Schedule A hereto, and (b) the Stockholder has sole voting power over all of the Covered Shares beneficially owned by the Stockholder.  Except for the Covered
        Shares subject to the pledge arrangements as set forth on Schedule A hereto, the Stockholder has not entered into any agreement to Transfer any Covered Shares.  As of the date hereof, the Stockholder does not own, beneficially or of record,
        any shares of Common Stock or other voting shares of the Company (or any securities convertible, exercisable or exchangeable for, or rights to purchase or acquire, any shares of Common Stock or other voting shares of the Company) other than the
        Owned Shares.

      

      

      9.3          No Conflict; Consents.

      

      

        (a)          The execution and delivery of this Agreement by the Stockholder does not, and the performance by the Stockholder of its obligations under this Agreement and the compliance by the
        Stockholder with any provisions hereof does not and will not:  (a) conflict with or violate any Laws applicable to the Stockholder, or (b) result in any breach of or constitute a default (or an event that with notice or lapse of time or both would
        become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, or result in the creation of a Lien on any of the Covered Shares beneficially owned by the Stockholder pursuant to any Contract or
        obligation to which the Stockholder is a party or by which the Stockholder is subject; provided, however, that the parties acknowledge and agree that a portion of the Covered Shares are subject to existing
        pledge arrangements (as set forth on Schedule A hereto) and may be subject to Transfer in the event of a default under such pledge arrangements. As of the date hereof, there is no event of default (or event that with notice or lapse of time or both
        would become a default) under any such pledge arrangements.

      

      

        (b)          No consent, approval, order or authorization of, or registration, declaration or, except as required by the rules and regulations promulgated under the Exchange Act, filing with,
        any Governmental Entity or any other Person, is required by or with respect to the Stockholder in connection with the execution and delivery of this Agreement or the consummation by them of the transactions contemplated hereby.

      

      

      9.4          Absence of Litigation.  As of the date hereof, there is no legal action pending against, or, to the knowledge of the Stockholder, threatened against or affecting the Stockholder
        that would reasonably be expected to materially impair the ability of the Stockholder to perform its obligations hereunder or to consummate the transactions contemplated hereby on a timely basis.

      
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      10.        Representations and Warranties of Parent.  Parent hereby represents and warrants to the Stockholder that:

      

      

      10.1        Due Authority.  Parent has the full power and capacity to make, enter into and carry out the terms of this Agreement.  Parent is duly organized, validly existing and in good
        standing in accordance with the laws of its jurisdiction of formation.  The execution and delivery of this Agreement, the performance of Parent’s obligations hereunder, and the consummation of the transactions contemplated hereby has been validly
        authorized, and no other consents or authorizations are required to give effect to this Agreement or the transactions contemplated by this Agreement.  This Agreement has been duly and validly executed and delivered by Parent and constitutes a valid
        and binding obligation of Parent enforceable against it in accordance with its terms, except as enforcement may be limited by general principles of equity whether applied in a court of law or a court of equity and by bankruptcy, insolvency and
        similar Laws affecting creditors’ rights and remedies generally.

      

      

      10.2         No Conflict; Consents.

      

      

        (a)          The execution and delivery of this Agreement by Parent does not, and the performance by Parent of its obligations under this Agreement and the compliance by Parent with the
        provisions hereof do not and will not:  (a) conflict with or violate any Laws applicable to Parent, or (b) result in any breach of or constitute a default (or an event that with notice or lapse of time or both would become a material default)
        under, or give to others any rights of termination, amendment, acceleration or cancellation of, pursuant to any Contract or obligation to which Parent is a party or by which Parent is subject.

      

      

        (b)          No consent, approval, order or authorization of, or registration, declaration or, except as required by the rules and regulations promulgated under the Exchange Act, filing with,
        any Governmental Entity or any other Person, is required by or with respect to Parent in connection with the execution and delivery of this Agreement or the consummation by Parent of the transactions contemplated hereby.

      

      

      10.3        Absence of Litigation.  As of the date hereof, there is no legal action pending against, or, to the knowledge of Parent, threatened against or affecting Parent that would
        reasonably be expected to materially impair the ability of Parent to perform its obligations hereunder or to consummate the transactions contemplated hereby on a timely basis.

      

      

      11.        Miscellaneous.

      

      

      11.1        No Ownership Interest.  Nothing contained in this Agreement shall be deemed to vest in Parent any direct or indirect ownership or incidence of ownership of or with respect to
        the Covered Shares.  All rights, ownership and economic benefits of and relating to the Covered Shares shall remain vested in and belong to the Stockholder, and Parent shall have no authority to direct the Stockholder in the voting or disposition
        of any of the Covered Shares, except as otherwise provided herein.

      

      

      11.2         Certain Adjustments.  In the event of a stock split, stock dividend or distribution, or any change in the Common Stock by reason of any split-up, reverse stock split,
        recapitalization, combination, reclassification, exchange of shares or the like, the terms “Common Stock” and “Covered Shares” shall be deemed to refer to and include such shares as well as all such stock dividends and distributions and any
        securities into which or for which any or all of such shares may be changed or exchanged or which are received in such transaction.

      

      

      11.3        Amendments and Modifications.  This Agreement may not be modified, amended, altered or supplemented except upon the execution and delivery of a written agreement executed by all
        of the parties hereto.

      

      

      11.4         Expenses.  All costs and expenses incurred in connection with this Agreement shall be paid by the party incurring such cost or expense.

      
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      11.5      Notices.  All notices, requests, claims, demands and other communications under this Agreement shall be in writing, shall be sent by e-mail of a .pdf attachment (providing
        confirmation of transmission), by reliable overnight delivery service (with proof of service) or by hand delivery, and shall be deemed given upon receipt by the parties at the following addresses (or at such other address for a party as shall be
        specified by like notice); provided, however that any notice received by e-mail transmission or otherwise at the addressee’s location on any Business Day after 5:00
        p.m. (addressee’s local time) shall be deemed to have been received at 9:00 a.m. (addressee’s local time) on the next Business Day:

      

      

        (i)          if to the Stockholder, to the address for notice set forth on Schedule A hereto, with a copy to:

      

      

      Equity Group Investments

      2 N. Riverside Plaza, Suite 600

      Chicago, IL  60606

      Attn:  Joseph Miron

      Email:  jmiron@egii.com

      

      

      and

      

      

      Neal, Gerber & Eisenberg LLP

      2 N. LaSalle Street, Suite 1700

      Chicago, IL  60602

      Attn:  David S. Stone

      Email:  dstone@nge.com

      

      

        (ii)          if to Parent, to:

      

      

      WESCO International, Inc.

      225 West Station Square Drive, Suite 700

      Pittsburgh, Pennsylvania 15219

      Attn:  Diane Lazzaris

      Email:  dlazzaris@wescodist.com

      

      

      with a copy to:

      

      

      Wachtell, Lipton, Rosen & Katz

      51 West 52nd Street

      New York, NY 10019

      Email:  AOEmmerich@wlrk.com; JLRobinson@wlrk.com

      Attention:  Adam O. Emmerich; John L. Robinson

      

      

        (iii)          if to Company, to:

      

      

      Anixter International Inc.

      2301 Patriot Blvd

      Glenview, IL  60026

      Email:  justin.choi@anixter.com

      Attention:  Justin Choi

      

      

      with a copy to:

      

      

      Sidley Austin LLP

      787 7th Avenue

      New York, NY  10019

      Email:  irotter@sidley.com; gsaltarelli@sidley.com

      Attention:  Irving L. Rotter; Gabriel Saltarelli

      
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      11.6         Venue; Waiver of Jury Trial.

      

      

        (a)          Each of the parties (i) irrevocably submits itself to the personal jurisdiction of all state and federal courts sitting in the State of Delaware, including to the jurisdiction of
        all courts to which an appeal may be taken from such courts, in any Proceeding arising out of or relating to this Agreement, any of the transactions contemplated hereby or any facts and circumstances leading to its execution or performance, (ii)
        agrees that all claims in respect of any such Proceeding must be brought, heard and determined exclusively in the Court of Chancery of the State of Delaware (provided that, in the event subject matter jurisdiction is declined by or unavailable in
        the Court of Chancery, then such Proceeding will be heard and determined exclusively in any other state or federal court sitting in the State of Delaware), (iii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion
        or other request for leave from such courts, (iv) agrees not to bring any Proceeding against any other party arising out of or relating to this Agreement, any of the transactions contemplated hereby or any facts and circumstances leading to its
        execution or performance in any other court and (v) waives any defense of inconvenient forum to the maintenance of any Proceeding so brought. The parties agree that a final judgment in any such Proceeding shall be conclusive and may be enforced in
        other jurisdictions by suit on the judgment or in any other manner provided by applicable Law.  Each of the parties agrees to waive any bond, surety or other security that might be required of any other party with respect to any such Proceeding,
        including any appeal thereof.

      

      

        (b)          Each of the parties agrees that service of any process, summons, notice or document in accordance with Section 11.5 will be effective service of process for any Proceeding
        brought against it by the other party in connection with this Section 11.6; provided, however, that nothing contained herein will affect the right of any
        party to serve legal process in any other manner permitted by applicable Law.  Notwithstanding the foregoing, the consents to jurisdiction set forth in this Section 11.6 will not constitute general consents to service of process in the
        State of Delaware and shall have no effect for any purpose except as provided in this Section 11.6 and will not be deemed to confer rights on any Person other than the parties.

      

      

        (c)          EACH OF THE PARTIES HERETO HEREBY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY IS LIKELY
        TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ALL RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) DIRECTLY OR INDIRECTLY
        ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY OR THE FACTS OR CIRCUMSTANCES LEADING TO ITS EXECUTION OR PERFORMANCE. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO PARTY OR REPRESENTATIVE OR AFFILIATE THEREOF
        HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVER, (iii) IT MAKES SUCH WAIVER KNOWINGLY
        AND VOLUNTARILY AND (iv) IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED IN THIS PARAGRAPH.

      

      

      11.7        Documentation and Information.  Each Stockholder consents to and authorizes the publication and disclosure by Parent and the Company of such Stockholder’s identity and holding
        of the Covered Shares, and the terms of this Agreement (including, for the avoidance of doubt, the disclosure of this Agreement), in any press release, the Proxy Statement and any other disclosure document required in connection with the Merger
        Agreement, the Merger and the transactions contemplated by the Merger Agreement.

      

      

      11.8       Further Assurances.  Each Stockholder agrees, from time to time, at the reasonable request of Parent and without further consideration, to execute and deliver such additional
        documents and take all such further action as may be reasonable required to consummate and make effective, in the most expeditious manner practicable, the transactions contemplated by this Agreement.

      
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      11.9        Stop Transfer Instructions. At all times commencing with the execution and delivery of this Agreement and continuing until the Expiration Time, in furtherance of this Agreement,
        the Stockholder hereby authorizes the Company or its counsel to notify the Company’s transfer agent that there is a stop transfer order with respect to all of the Covered Shares (and that this Agreement places limits on the voting and transfer of
        the Covered Shares), subject to the provisions hereof and provided that any such stop transfer order and notice will immediately be withdrawn and terminated by the Company following the Expiration Time.

      

      

      11.10       Enforcement.  The parties 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 an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement,
        this being in addition to any other remedy to which they are entitled at law or in equity.

      

      

      11.11      Entire Agreement.  This Agreement, including the Schedules hereto, constitutes the entire agreement, and supersede all prior agreements and understandings, both written and oral,
        among the parties with respect to such subject matter.  For the avoidance of doubt, nothing in this Agreement shall be deemed to amend, alter or modify, in any respect, any of the provisions of the Merger Agreement.

      

      

      11.12      Reliance.  Each Stockholder understands and acknowledges that Parent and Merger Sub are entering into the Merger Agreement in reliance upon the Stockholders’ execution and
        delivery of this Agreement.

      

      

      11.13      Interpretation.  When a reference is made in this Agreement to a Section, such reference shall be to a Section of this Agreement unless otherwise indicated.  Headings contained
        in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to be
        followed by the words “without limiting the generality of the foregoing”.  When used in this Agreement, the term “or” shall be construed in the inclusive sense of “and/or”.  Any agreement, instrument or statute defined or referred to herein or in
        any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of
        statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments incorporated therein.  References to a Person are also to its permitted successors and assigns.  The parties hereto agree that they
        have been represented by counsel during the negotiation, drafting, preparation and execution of this Agreement and, therefore, waive the application of any Law or rule of construction providing that ambiguities in an agreement or other document
        will be construed against the party drafting such agreement or document.

      

      

      11.14      Assignment.  Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by operation of law or otherwise
        by any of the parties without the prior written consent of the other parties.  Any purported assignment without such consent shall be void.  Subject to the preceding sentences, this Agreement will be binding upon, inure to the benefit of, and be
        enforceable by, the parties and their respective successors and assigns.

      

      

      11.15     Severability.  If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule or Law, or public policy, all other conditions and
        provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party.  Upon such
        determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible
        in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the extent possible.

      
        9

        
          

      

      11.16      Counterparts.  This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more
        counterparts have been signed by each of the parties and delivered to the other parties.

      

      

      11.17      Governing Law.  THIS AGREEMENT, AND ALL CLAIMS OR CAUSES OF ACTION (WHETHER IN CONTRACT OR TORT) THAT MAY BE BASED UPON, ARISE OUT OF OR RELATE TO THIS AGREEMENT, OR THE
        NEGOTIATION, EXECUTION OR PERFORMANCE OF THIS AGREEMENT (INCLUDING ANY CLAIM OR CAUSE OF ACTION BASED UPON, ARISING OUT OF OR RELATED TO ANY REPRESENTATION OR WARRANTY MADE IN OR IN CONNECTION WITH THIS AGREEMENT OR AS AN INDUCEMENT TO ENTER INTO
        THIS AGREEMENT), SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF DELAWARE APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR RULES OF CONFLICT OF LAWS TO THE EXTENT SUCH
        PRINCIPLES OR RULES ARE NOT MANDATORILY APPLICABLE BY STATUTE AND WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

      

      

      11.18       Non-survival of Representations and Warranties.  None of the representations and warranties in this Agreement or in any schedule, instrument or other document delivered pursuant
        to this Agreement shall survive the Effective Time or the termination of this Agreement.  This Section 11.18 shall not limit any covenant or agreement contained in this Agreement that by its terms is to be performed in whole or in part
        after the Effective Time or the termination of this Agreement.

      

      

      11.19      Termination.  This Agreement shall automatically terminate without further action by any of the parties hereto and shall have no further force or effect as of the earliest to
        occur of (i) the Expiration Time or (ii) with respect to any Stockholder, the election of such Stockholder in its sole discretion to terminate this Agreement promptly following any amendment of any term or provision of the original unamended Merger
        Agreement dated as of the date hereof that reduces or changes the form of consideration payable pursuant to such Merger Agreement; provided that the provisions of this Article XI shall survive any such termination. Notwithstanding
        the foregoing, termination of this Agreement shall not prevent any party from seeking any remedies (at law or in equity) against any other party for that party’s breach of any of the terms of this Agreement prior to the date of termination.

      

      

      [Signature page follows]

      
        10

        
          

      

      IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered on the date and year first above written.

      

      

      	 	
              WESCO INTERNATIONAL, INC.

            
	 	 	 
	 	
              By:

            	
              /s/ David S. Schulz

            
	 	 	
              Name: David S. Schulz

            
	 	 	
              Title: Senior Vice President and Chief Financial Officer

            
	 	 	 
	 	
              SAMUEL ZELL REVOCABLE TRUST

            
	 	 	 
	 	
              By:

            	
              /s/ Samuel Zell

            
	 	 	
              Name: Samuel Zell

            
	 	 	
              Title: Trustee

            
	 	 	 
	 	
              ZELL FAMILY FOUNDATION

            
	 	 	 
	 	
              By:

            	
              /s/ Samuel Zell

            
	 	 	
              Name: Samuel Zell

            
	 	 	
              Title: President

            
	 	 	 
	 	
              SAMSTOCK/SZRT, L.L.C.

            
	 	 	 
	 	
              By:

            	
              /s/ Philip G. Tinkler

            
	 	 	
              Name: Philip G. Tinkler

            
	 	 	
              Title: Vice President

            
	 	 	 
	 	
              SAMSTOCK/SIT, L.L.C.

            
	 	 	 
	 	
              By:  

            	
              /s/ Philip G. Tinkler

            
	 	 	
              Name: Philip G. Tinkler

            
	 	 	
              Title: Vice President

            
	 	 	 
	 	
              SAMSTOCK/ZFT, L.L.C.

            
	 	 	 
	 	
              By:

            	
              /s/ Philip G. Tinkler

            
	 	 	
              Name: Philip G. Tinkler

            
	 	 	
              Title: Vice President

            
	 	 	 
	 	
              SAMSTOCK/ALPHA, L.L.C.

            
	 	 	 
	 	
              By:

            	
              /s/ Philip G. Tinkler

            
	 	 	
              Name: Philip G. Tinkler

            
	 	 	
              Title: Vice President

            
	 	 	 
	 	
              KMJZ INVESTMENTS L.L.C.

            
	 	 	 
	 	
              By:

            	
              /s/ Philip G. Tinkler

            
	 	 	
              Name: Philip G. Tinkler

            
	 	 	
              Title: Vice President

            
	 	 	 
	 	
              SZ INTERVIVOS QTIP TRUST

            
	 	 	 
	 	
              By:

            	
              Chai Trust Company, LLC, its Trustee

            
	 	 	 
	 	
              By:

            	
              /s/ Philip G. Tinkler

            
	 	 	
              Name:  Philip G. Tinkler

            
	 	 	
              Title:  Vice President

            

      

      

      
        
          

      

      Schedule A

      

      

      	
              Name

            	 	
              Owned Shares*

            	 	
              Address

            	 	
              Shares Subject to 

              Pledge Arrangement**

            	 
	
              Samuel Zell Revocable Trust

            	 	 	
              14,666

            	 	
              2 N. Riverside Plaza, Suite 600, Chicago, IL  60606

            	 	 	
              7,333

            	 
	
              Samstock/SZRT, L.L.C.

            	 	 	
              1,449,432

            	 	
              2 N. Riverside Plaza, Suite 600, Chicago, IL  60606

            	 	 	
              724,716

            	 
	
              Samstock/SIT, L.L.C.

            	 	 	
              362,147

            	 	
              2 N. Riverside Plaza, Suite 600, Chicago, IL  60606

            	 	 	
              330,634

            	 
	
              KMJZ Investments L.L.C.

            	 	 	
              526,277

            	 	
              2 N. Riverside Plaza, Suite 600, Chicago, IL  60606

            	 	 	
              0

            	 
	
              Samstock/ZFT, L.L.C.

            	 	 	
              55,588

            	 	
              2 N. Riverside Plaza, Suite 600, Chicago, IL  60606

            	 	 	
              55,588

            	 
	
              Samstock/Alpha, L.L.C.

            	 	 	
              55,587

            	 	
              2 N. Riverside Plaza, Suite 600, Chicago, IL  60606

            	 	 	
              55,587

            	 
	
              SZ Intervivos QTIP Trust

            	 	 	
              28,700

            	 	
              2 N. Riverside Plaza, Suite 600, Chicago, IL  60606

            	 	 	
              0

            	 
	
              Zell Family Foundation

            	 	 	
              1,147,940

            	 	
              2 N. Riverside Plaza, Suite 600, Chicago, IL  60606

            	 	 	
              0

            	 

      

      

      
        

      *If any additional shares of Common Stock are owned by any of the Stockholders as of the date of this Agreement, such shares shall be automatically deemed to be “Owned Shares” notwithstanding the contents of this
        Schedule A other than any additional shares of Common Stock acquired by the Zell Family Foundation after the date of this Agreement.

      

      

      **The shares of Common Stock set forth in this column are subject to existing pledge arrangements entered into by the applicable Stockholders in connection with stock loan agreements prior to the date of this
        Agreement.Exhibit 4.2

 

Amendment
No. 1

to
the Indenture

 

In
accordance with Section 9.1 of the Indenture dated as of March 22, 2019 (the “Indenture”) between Shepherd’s
Finance, LLC, a Delaware limited liability company (“Company”), and U.S. Bank National Association, a national
banking association (“Trustee”), the Indenture is hereby amended by this Amendment No. 1 (this “Amendment”)
as of __________, 2020. Capitalized terms used and not otherwise defined in this Amendment shall have the meanings set
forth in the Indenture.

 

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

 

A.
Amendment to § 3.9 of the Indenture. Section 3.9 of the Indenture is hereby replaced in its entirety with the following:

 

Section
3.9. Redemption Option at Request of Holder.

 

	 	(a)	Beginning
    180 days after the issuance date, at the written request of the Holder delivered to the Company at any time, the Company may,
    at its option and subject to the restrictions in Article 10 below, but shall not be required to, redeem the Note for a redemption
    price equal to the principal amount plus an amount equal to the unpaid interest thereon for the Note, as adjusted, at the
    stated rate to the redemption date minus an amount equal to the interest that would be payable thereon at the rate stated
    above over the last 180 days immediately prior to the redemption date.
	 	 	 
	 	(b)	Notwithstanding
    the foregoing Section 3.9(a), subject to the restrictions in Article 10 below, at the written request of a Holder of a Note
    that (i) on the Date of Issue had a duration of 36 months, and (ii) had a Date of Issue of __________, 2020 or after,
    such Holder may require the Company to redeem all or a portion of such Note for a redemption price equal to the principal
    amount plus an amount equal to the unpaid interest thereon for such Note, at the stated rate to the redemption date, as follows:

 

	 	(1)	The
    Company shall redeem up to $10,000 of such Note within 7 days of the redemption request;
	 	 	 
	 	(2)	The
    Company shall redeem up to an additional $90,000 of such Note within 30 days of the redemption request;
	 	 	 
	 	(3)	The
    Company shall redeem any remaining amount of such Note requested to be redeemed within 90 days of the redemption request;
    and
	 	 	 
	 	(4)	The
    Company shall redeem all or a portion of such Note if requested by the Holder, regardless of amount, within 1 business day
    but only if the Holder immediately upon redemption invests the entirety of the proceeds from such redemption in another security
    then-offered by the Company.

 

    	 

    	 

    

 

For
purposes of determining the length of time within which the Company must redeem all or a portion of a Note under this Section,
3.9(b), the dollar amount of a given redemption request will be added to any amount or amounts of such Note previously requested
to be redeemed that were redeemed by the Company.

 

B.
Amendment of the Form of Note. Exhibit A to the Indenture, titled “FORM OF FIXED RATE SUBORDINATED NOTE OF
SHEPHERD’S FINANCE, LLC” is hereby replaced in its entirety with Exhibit A to this Amendment in order to reflect
the foregoing changes to the Indenture and to clarify the previous language related to renewals of Notes upon maturity.

 

C.
Continuation of Indenture. The Indenture and this Amendment shall be read together and shall have the same force and effect
as if the provisions of the Indenture and this Amendment were contained in one document. Any provisions of the Indenture not amended
by this Amendment shall remain in full force and effect as provided in the Indenture immediately prior to the date hereof. In
the event of a conflict between the provisions of this Amendment and the Indenture, the provisions of this Amendment shall control,
provided, however, that if any provision of this Amendment limits, qualifies, or conflicts with another provision which
is required to be included in this Amendment by the TIA, the required provision shall control.

 

D.
Governing Law. The internal laws of the State of Delaware shall govern this Amendment.

 

E.
Counterparts. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which
together shall be deemed to be one and the same agreement. A signed copy of this Amendment delivered by facsimile, e-mail, or
other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of
this Amendment. The signature pages to this Amendment shall be deemed and may be used as counterpart signature pages to the Indenture.

 

[Signatures
on following page]

 

    	 	2	 

    	 

    

 

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

 

	 	COMPANY:
	 	 	 
	 	SHEPHERD’S
    FINANCE, LLC
	 	 
	 	By:

        
	
	 	 	Daniel
    M. Wallach, Chief Executive Officer
	 	 	 
	 	TRUSTEE:
	 	 	 
	 	U.S.
                                         BANK NATIONAL ASSOCIATION

        

	 	 	 
	 	By:

        
	 
	 	 	April
    Bright, Assistant Vice President

 

    	 	3	 

    	 

    

 

Exhibit
A

 

FORM
OF FIXED RATE SUBORDINATED NOTE

 

OF

 

SHEPHERD’S
FINANCE, LLC

 

    	 

    	 

    

 

Fixed
Rate Subordinated Note

 

	 	 	___________
    __, 20__
	 	 	 	 
	No.
    ____ 	 	Jacksonville,
    Florida	 

 

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

 

This
is one of a duly authorized issue of Fixed Rate Subordinated Notes of the Company (the “Notes”) issued under and subject
in all respects to the terms of an Indenture dated as of March 22, 2019 (the “Indenture”), between the Company and
U.S. Bank National Association, as trustee (the “Trustee”). Reference is hereby made to the Indenture and all supplemental
indentures for a statement of the respective rights of the Company, the Trustee, the agents of the Company, and the Trustee and
the holders of the Notes. All capitalized terms used, but not defined, in this Note have the meanings assigned to them in the
Indenture. No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation
of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note in the manner herein prescribed.

 

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

 

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

 

    	 

    	 

    

 

3.
Redemption at Request of Noteholder.

 

	 	(a)	BEGINNING
    180 DAYS AFTER THE ISSUANCE DATE, AT THE WRITTEN REQUEST OF THE NOTEHOLDER DELIVERED TO THE COMPANY, THE COMPANY MAY, AT ITS
    OPTION AND SUBJECT TO THE RESTRICTIONS OF SECTION 6 BELOW, BUT SHALL NOT BE REQUIRED TO, REDEEM THIS NOTE for a redemption
    price equal to the principal amount plus an amount equal to the unpaid interest thereon for this Note, as adjusted, at the
    stated rate to the redemption date minus an amount equal to the interest that would be payable thereon at the rate stated
    above for a 180-day period.
	 	 	 
	 	(b)	NOTWITHSTANDING
    THE FOREGOING SECTION 3(a), IF THIS NOTE (i) ON THE DATE OF ISSUE HAD A DURATION OF 36 MONTHS, AND (ii) HAS A DATE OF ISSUE
    OF __________, 2020 OR AFTER, THEN, AT THE WRITTEN REQUEST DELIVERED TO THE COMPANY BY THE NOTEHOLDER, THE COMPANY
    SHALL, SUBJECT TO THE RESTRICTIONS OF SECTION 6 BELOW, REDEEM ALL OR A PORTION OF THIS NOTE (AS REQUESTED BY THE NOTEHOLDER)
    for a redemption price equal to the principal amount plus an amount equal to the unpaid interest thereon for this Note at
    the stated rate to the redemption date, as follows:

 

(1)
The Company shall redeem up to $10,000 of this Note within 7 days of the redemption request;

 

(2)
The Company shall redeem up to an additional $90,000 of this Note within 30 days of the redemption request;

 

(3)
The Company shall redeem any remaining amount of this Note requested to be redeemed within 90 days of the redemption request;
and

 

(4)
The Company shall redeem all or a portion of this Note if requested by the Noteholder, regardless of amount, within 1 business
day but only if the Noteholder immediately upon redemption invests the entirety of the proceeds from such redemption in another
security then-offered by the Company.

 

For
purposes of determining the length of time within which the Company must redeem all or a portion of this Note under this Section
3(b), the dollar amount of a given redemption request will be added to any amount or amounts of this Note previously requested
to be redeemed that were redeemed by the Company.

 

    	 

    	 

    

 

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

 

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

 

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

 

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

 

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

 

    	 

    	 

    

 

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

 

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

 

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

 

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

 

    	 

    	 

    

 

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

 

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

 

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

 

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

 

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

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