Document:

Exhibit 10.2

 

EXECUTION VERSION

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated as of October 27, 2020, by and among MEDALIST DIVERSIFIED
REIT, INC., a company formed and existing under the laws of Maryland(the “Company”), and YA II PN, Ltd.,
a Cayman Islands exempt limited partnership (the “Investor”).

 

WHEREAS:

 

A.            In
connection with the Securities Purchase Agreement by and among the parties hereto of even date herewith (the “Securities
Purchase Agreement”), the Company has agreed, upon the terms and subject to the conditions of the Securities Purchase
Agreement, to issue and sell to the Investor up to $5,000,000 of convertible debentures (the “Convertible Debentures”),
which shall be convertible into the Company’s Common Stock, par value $0.01 per share (the “Common Stock”)
(as converted, the “Conversion Shares”). Capitalized terms not defined herein shall have the meaning ascribed
to them in the Securities Purchase Agreement.

 

B.            To
induce the Investors to execute and deliver the Securities Purchase Agreement, the Company has agreed to provide certain registration
rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively,
the “Securities Act”), and applicable state securities laws and other rights as provided for herein.

 

NOW, THEREFORE,
in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and the Investors hereby agree as follows:

 

1.            DEFINITIONS.

 

As used in this Agreement,
the following terms shall have the following meanings:

 

(a)            “Filing
Deadline means, with respect to a Registration Statement required hereunder, 45 days from the date hereof.

 

(b)            “Person”
means a corporation, a limited liability company, an association, a partnership, an organization, a business, an individual, a
governmental or political subdivision thereof or a governmental agency.

 

(c)            “Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A or Rule 430B
promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements
to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated
by reference in such Prospectus.

 

     

     

    

 

(d)            “Registrable
Securities” means all of (i) the shares of Common Stock issuable upon conversion of the Convertible Debentures,
(ii) shares of Common Stock issuable in connection with any anti-dilution provisions of the Convertible Debentures (without
giving effect to any limitations on exercise set forth in the Convertible Debentures), (iii) any shares of Common Stock issued
or issuable with respect to the Conversion Shares as a result of any stock split, dividend or other distribution, recapitalization
or similar event or otherwise (in each case without giving effect to any limitations on exercise set forth in the Convertible Debentures),
and (iv) the Commitment Shares (as defined in the Securities Purchase Agreement).

 

(e)            “Registration
Statement” means a registration statement required to be filed hereunder, including (in each case) the Prospectus, amendments
and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto,
and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.

 

(f)            “Required
Registration Amount” means (i) with respect to the initial Registration Statement at least 1,000,000 shares of Common
Stock issued or to be issued upon conversion of the Convertible Debentures and the Commitment Shares, and (ii) with respect
to subsequent Registration Statements at least such number shares of Common Stock as shall equal the maximum number of shares of
shares issuable upon conversion of all Convertible Debentures then outstanding (assuming for purposes hereof that (x) such
Convertible Debentures are convertible at the Conversion Price (as defined therein) in effect as of the date of determination,
and (y) any such conversion shall not take into account any limitations on the conversion of the Convertible Debentures set
forth in Section 5(c) of the Convertible Debentures), in each case subject to any cutback set forth in Section 2(d).

 

(g)            “Rule 415”
means Rule 415 promulgated by the U.S. Securities and Exchange Commission (“SEC”) pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC having
substantially the same purpose and effect as such Rule.

 

(h)            “Trading
Day” shall have the meaning set forth in the Convertible Debentures.

 

2.            REGISTRATION.

 

(a)            The
Company’s registration obligations set forth in this Section 2 including its obligations to file one or more Registration
Statements, obtain effectiveness of such Registration Statements, and maintain the continuous effectiveness of such Registration
Statements that have been declared effective shall begin on the date hereof and continue until all the Registrable Securities have
been sold or may permanently be sold without any restrictions pursuant to Rule 144, as determined by the counsel to the Company
pursuant to a written opinion letter to such effect, addressed and acceptable to the Company’s transfer agent and the affected
Holders (the “Registration Period”).

 

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(b)            Subject
to the terms and conditions of this Agreement, the Company shall, on or prior to the Filing Deadline, prepare and file with the
SEC a Registration Statement on Form S-11 or Form S-3 covering the resale by the Investor of Registrable Securities.
Each Registration Statement prepared pursuant hereto shall register for resale at least the number of shares of Common Stock equal
to the Required Registration Amount as of date the Registration Statement is initially filed with the SEC. Each Registration Statement
shall contain the “Selling Stockholders” and “Plan of Distribution”. The Company shall use
its best efforts to have each Registration Statement declared effective by the SEC as soon as practicable. By 9:30 am (New York
time) on the date following the date of effectiveness, the Company shall file with the SEC in accordance with Rule 424 under
the 1933 Act the final Prospectus to be used in connection with sales pursuant to such Registration Statement. Prior to the filing
of the Registration Statement with the SEC, the Company shall furnish a draft of the Registration Statement to the Investor for
their review and comment in accordance with the procedures set forth in Section 3(a) hereof. The Investor shall furnish
comments (if any) on the Registration Statement to the Company within twenty-four (24) hours of the receipt thereof from the Company.

 

(c)            During
the Registration Period the Company shall (i) promptly prepare and file with the SEC such amendments (including post-effective
amendments) and supplements to each Registration Statement and Prospectus used in connection with a Registration Statement, which
Prospectus is to be filed pursuant to Rule 424 promulgated under the Securities Act, as may be necessary to keep each such
Registration Statement effective at all times during the applicable times in the Registration Period, (ii) prepare and file
with the SEC additional Registration Statements in order to register for resale under the Securities Act all of the Registrable
Securities (to the extent not previously covered by a Registration Statement filed and declared effective in the applicable times
in the Registration Period)); (iii) cause the Prospectus for each Registration Statement filed and declared effective in the
applicable times in the Registration Period to be amended or supplemented by any required Prospectus supplement (subject to the
terms of this Agreement), and as so supplemented or amended to be filed pursuant to Rule 424; (iv) respond as promptly
as reasonably possible to any comments received from the SEC with respect to a Registration Statement or any amendment thereto
and as promptly as reasonably possible provide the Investors true and complete copies of all correspondence from and to the SEC
relating to a Registration Statement (provided that the Company may excise any information contained therein which would constitute
material non-public information as to any Investor which has not executed a confidentiality agreement with the Company); and (v) comply
with the provisions of the Securities Act with respect to the disposition of all Registrable Securities of the Company covered
by each effective Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance
with the intended methods of disposition by the seller or sellers thereof as set forth in such Registration Statement. In the case
of amendments and supplements to a Registration Statement which are required to be filed pursuant to this Agreement (including
pursuant to this Section 2(c)) by reason of the Company’s filing a report on Form 10-K, or Form 8-K or any
analogous report under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company shall
incorporate such report by reference into the Registration Statement, if applicable, or shall file such amendments or supplements
with the SEC on the same day on which the Exchange Act report is filed which created the requirement for the Company to amend or
supplement the Registration Statement.

 

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(d)            Reduction
of Registrable Securities Included in a Registration Statement. Notwithstanding anything contained herein, in the event that
the SEC requires the Company to reduce the number of Registrable Securities to be included in a Registration Statement in order
to allow the Company to rely on Rule 415 with respect to a Registration Statement, then the Company shall be obligated to
include in such Registration Statement (which may be a subsequent Registration Statement if the Company needs to withdraw a Registration
Statement and refile a new Registration Statement in order to rely on Rule 415) only such limited portion of the Registrable
Securities as the SEC shall permit. Any Registrable Securities that are excluded in accordance with the foregoing terms are hereinafter
referred to as “Cut Back Securities.” To the extent Cut Back Securities exist, as soon as may be permitted by
the SEC, the Company shall be required to file a Registration Statement covering the resale of the Cut Back Securities (subject
also to the terms of this Section) and shall use best efforts to cause such Registration Statement to be declared effective as
promptly as practicable thereafter.

 

3.            RELATED
OBLIGATIONS.

 

(a)            The
Company shall, not less than three (3) Trading Days prior to the filing of each Registration Statement and not less than one
(1) Trading Day prior to the filing of any related amendments and supplements to all Registration Statements (except for annual
reports on Form 10-K), furnish to each Investor copies of all such documents proposed to be filed, which documents (other
than those incorporated or deemed to be incorporated by reference) will be subject to the reasonable and prompt review of such
Investors. The Company shall not file a Registration Statement or any such Prospectus or any amendments or supplements thereto
to which the Investors shall reasonably object in good faith; provided that, the Company is notified of such objection in
writing no later than two (2) Trading Days after the Investors have been so furnished copies of such document.

 

(b)            The
Company shall use its best efforts to (i) register and qualify the Registrable Securities covered by a Registration Statement
under such other securities or “blue sky” laws of such jurisdictions in the United States as any Investor reasonably
requests, (ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements
to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period,
(iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times
during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable
Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or
as a condition thereto to (w) make any change to its articles of incorporation or by-laws, (x) qualify to do business
in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(b), (y) subject itself
to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction.
The Company shall promptly notify each Investor who holds Registrable Securities of the receipt by the Company of any notification
with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities
or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threat
of any proceeding for such purpose.

 

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(c)            As
promptly as practicable after becoming aware of such event or development, the Company shall notify each Investor in writing of
the happening of any event as a result of which the Prospectus included in a Registration Statement, as then in effect, includes
an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not misleading (provided that in no event shall
such notice contain any material, nonpublic information), and promptly prepare a supplement or amendment to such Registration Statement
to correct such untrue statement or omission, and deliver ten (10) copies of such supplement or amendment to each Investor.
The Company shall also promptly notify each Investor in writing (i) when a Prospectus or any Prospectus supplement or post-effective
amendment has been filed, and when a Registration Statement or any post-effective amendment has become effective (notification
of such effectiveness shall be delivered to each Investor by facsimile on the same day of such effectiveness), (ii) of any
request by the SEC for amendments or supplements to a Registration Statement or related prospectus or related information, and
(iii) of the Company’s reasonable determination that a post-effective amendment to a Registration Statement would be
appropriate.

 

(d)            The
Company shall use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration
Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction within the
United States of America and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at
the earliest possible moment and to notify each Investor who holds Registrable Securities being sold of the issuance of such order
and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

(e)            If,
after the execution of this Agreement, an Investor believes, after consultation with its legal counsel, that it could reasonably
be deemed to be an underwriter of Registrable Securities, at the request of any Investor, the Company shall furnish to such Investor,
on the date of the effectiveness of the Registration Statement and thereafter from time to time on such dates as an Investor may
reasonably request (i) a letter, dated such date, from the Company’s independent certified public accountants in form
and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering,
and (ii) an opinion, dated as of such date, of counsel representing the Company for purposes of such Registration Statement,
in form, scope and substance as is customarily given in an underwritten public offering, addressed to the Investors. Upon the request
of the documents discussed above pursuant to this Section 3(e), the Investor shall provide documents to the Company typically
provided by an underwriter of its securities in form, scope and substance as is customarily given in an underwritten public offering,
including an opinion of counsel representing the Investor for purposes of such Registration Statement, addressed to the Company.

 

(f)            If,
after the execution of this Agreement, an Investor believes, after consultation with its legal counsel, that it could reasonably
be deemed to be an underwriter of Registrable Securities, at the request of any Investor, the Company shall make available for
inspection by (i) any Investor and (ii) one (1) firm of accountants or other agents retained by the Investors (collectively,
the “Inspectors”) all pertinent financial and other records, and pertinent corporate documents and properties
of the Company (collectively, the “Records”), as shall be reasonably deemed necessary by each Inspector, and
cause the Company’s officers, directors and employees to supply all information which any Inspector may reasonably request;
provided, however, that each Inspector shall agree, and each Investor hereby agrees, to hold in strict confidence and shall not
make any disclosure (except to an Investor) or use any Record or other information which the Company determines in good faith to
be confidential, and of which determination the Inspectors are so notified, unless (a) the disclosure of such Records is necessary
to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required under the Securities Act,
(b) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government
body of competent jurisdiction, or (c) the information in such Records has been made generally available to the public other
than by disclosure in violation of this or any other agreement of which the Inspector and the Investor has knowledge. Each Investor
agrees that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental body of competent
jurisdiction or through other means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate
action to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential.

 

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(g)            The
Company shall hold in confidence and not make any disclosure of information concerning the Investor provided to the Company unless
(i) disclosure of such information is necessary to comply with U.S. federal or state securities laws, (ii) the disclosure
of such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release
of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of
competent jurisdiction, or (iv) such information has been made generally available to the public other than by disclosure
in violation of this Agreement or any other agreement. The Company agrees that it shall, upon learning that disclosure of such
information concerning an Investor is sought in or by a court or governmental body of competent jurisdiction or through other means,
give prompt written notice to such Investor and allow such Investor, at the Investor’s expense, to undertake appropriate
action to prevent disclosure of, or to obtain a protective order for, such information.

 

(h)            The
Company shall either cause all the Registrable Securities covered by a Registration Statement (i) to be listed on each securities
exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such
Registrable Securities is then permitted under the rules of such exchange or (ii) to be included for quotation on the
Nasdaq Capital Markets for such Registrable Securities.

 

(i)            The
Company shall cooperate with each Investor who holds Registrable Securities being offered and, to the extent applicable, to facilitate
the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities
to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts, as the
case may be, as the Investors may reasonably request and registered in such names as the Investors may request. The Company shall
pay all fees and expenses in connection with satisfying its obligation under this Section 3(i).

 

(j)            The
Company shall use its best efforts to cause the Registrable Securities covered by the applicable Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable
Securities.

 

(k)            The
Company shall otherwise use its best efforts to comply with all applicable rules and regulations of the SEC in connection
with any registration hereunder.

 

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(l)            Within
two (2) business days after a Registration Statement which covers Registrable Securities is declared effective by the SEC,
the Company shall deliver to the transfer agent for such Registrable Securities (with copies to the Investor whose Registrable
Securities are included in such Registration Statement) confirmation that such Registration Statement has been declared effective
by the SEC in the form attached hereto as Exhibit A.

 

(m)            The
Company shall take all other reasonable actions necessary to expedite and facilitate disposition by each Investor of Registrable
Securities pursuant to a Registration Statement.

 

4.            OBLIGATIONS
OF THE INVESTORS.

 

(a)            The
Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 3(c) such
Investor will immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement covering such
Registrable Securities until the Investor’s receipt of the copies of the supplemented or amended prospectus contemplated
by Section 3(c) or receipt of notice that no supplement or amendment is required. Notwithstanding anything to the contrary,
the Company shall cause its transfer agent to deliver unlegended certificates for shares to a transferee of an Investor in accordance
with the terms of the Securities Purchase Agreement in connection with any sale of Registrable Securities with respect to which
an Investor has entered into a contract for sale prior to the Investor’s receipt of a notice from the Company of the happening
of any event of the kind described in Section 3(c) and for which the Investor has not yet settled.

 

(b)            The
Investor covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable
to it or an exemption therefrom in connection with sales of Registrable Securities pursuant to the Registration Statement.

 

5.            EXPENSES
OF REGISTRATION.

 

All expenses incurred
in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration,
listing and qualifications fees, printers, legal and accounting fees, except (i) legal fees of Investor’s counsel associated
with the review of the Registration Statement and any comment letters issued by the SEC relating to such Registration Statement
or (ii) fees incurred by any Inspectors associated with their review of Records as contemplated in Section 3(f), shall
be paid by the Company.

 

6.            INDEMNIFICATION.

 

With respect to Registrable
Securities which are included in a Registration Statement under this Agreement:

 

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(a)            To
the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, the directors,
officers, partners, employees, and each Person, if any, who controls any Investor within the meaning of the Securities Act or the
Exchange Act (each, an “Indemnified Person”), against any losses, claims, damages, liabilities, judgments, fines,
penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement or expenses, joint or several (collectively,
 “Claims”) incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation
or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the
SEC, whether pending or threatened, whether or not an indemnified party is or may be a party thereto (“Indemnified Damages”),
to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in
respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in
a Registration Statement or any post-effective amendment thereto or in any filing made in connection with the qualification of
the offering under the securities or other “blue sky” laws of any jurisdiction in which Registrable Securities are
offered (“Blue Sky Filing”), or the omission or alleged omission to state a material fact required to be
stated therein or necessary to make the statements therein not misleading; (ii) any untrue statement or alleged untrue statement
of a material fact contained in any final Prospectus (as amended or supplemented, if the Company files any amendment thereof or
supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements
made therein, in light of the circumstances under which the statements therein were made, not misleading; or (iii) any violation
or alleged violation by the Company of the Securities Act, the Exchange Act, any other law, including, without limitation, any
state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant
to a Registration Statement (the matters in the foregoing clauses (i) through (iii) being, collectively, “Violations”).
The Company shall reimburse the Investors and each such controlling person promptly as such expenses are incurred and are due and
payable, for any legal fees or disbursements or other reasonable expenses incurred by them in connection with investigating or
defending any such Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in
this Section 6(a): (x) shall not apply to a Claim by an Indemnified Person arising out of or based upon a Violation which
occurs in reliance upon and in conformity with information furnished in writing to the Company by such Indemnified Person expressly
for use in connection with the preparation of the Registration Statement or any such amendment thereof or supplement or Prospectus
related thereto; (y) shall not be available to the extent such Claim is based on a failure of the Investor to deliver or to
cause to be delivered the Prospectus made available by the Company, if such Prospectus was timely made available by the Company
pursuant to Section 3(b); and (z) shall not apply to amounts paid in settlement of any Claim if such settlement is effected
without the prior written consent of the Company, which consent shall not be unreasonably withheld. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person.

 

(b)            In
connection with a Registration Statement, the Investor agrees to severally and not jointly indemnify, hold harmless and defend,
to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each of its
officers, employees, representatives, or agents and each Person, if any, who controls the Company within the meaning of the Securities
Act or the Exchange Act (each an “Indemnified Party”), against any Claim or Indemnified Damages to which any
of them may become subject, under the Securities Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified Damages
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 to the Company by such Investor expressly for use in connection
with such Registration Statement; and, subject to Section 6(d), such Investor will reimburse any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such Claim; provided, however, that the indemnity agreement
contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply
to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of such Investor, which
consent shall not be unreasonably withheld; provided, further, however, that the Investor shall be liable under this Section 6(b) for
only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to such Investor as a result of the sale
of Registrable Securities pursuant to such Registration Statement. Such indemnity shall remain in full force and effect regardless
of any investigation made by or on behalf of such Indemnified Party. Notwithstanding anything to the contrary contained herein,
the indemnification agreement contained in this Section 6(b) with respect to any prospectus shall not inure to the benefit
of any Indemnified Party if the untrue statement or omission of material fact contained in the prospectus was corrected and such
new prospectus was delivered to each Investor prior to such Investor’s use of the prospectus to which the Claim relates.

 

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(c)            Promptly
after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action
or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party
shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement thereof, 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 control of
the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its
own counsel with the reasonable fees and expenses of not more than one (1) counsel for such Indemnified Person or Indemnified
Party to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation
by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual
or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such counsel
in such proceeding. The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party in connection
with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party
all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or claim. The
indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times as to the status of the defense
or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim
or proceeding effected without its prior written consent; provided, however, that the indemnifying party shall not unreasonably
withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent of the Indemnified Party
or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include
as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release
from all liability in respect to such claim or litigation. Following indemnification as provided for hereunder, the indemnifying
party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying
party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability
to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced
in its ability to defend such action.

 

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(d)            The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

(e)            The
indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified
Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may
be subject to pursuant to the law.

 

7.            CONTRIBUTION.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however,
that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any seller of Registrable Securities who was not guilty of fraudulent
misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount
of proceeds received by such seller from the sale of such Registrable Securities.

 

8.            REPORTS
UNDER THE EXCHANGE ACT.

 

With a view to making
available to the Investors the benefits of Rule 144 promulgated under the Securities Act or any similar rule or regulation
of the SEC that may at any time permit the Investors to sell securities of the Company to the public without registration (“Rule 144”),
and as a material inducement to the Investor’s purchase of the Convertible Debentures, the Company represents, warrants,
and covenants to the following:

 

(a)            The
Company is subject to the reporting requirements of section 13 or 15(d) of the Exchange Act and has filed all required reports
under section 13 or 15(d) of the Exchange Act during the 12 months prior to the date hereof (or for such shorter period that
the issuer was required to file such reports), other than Form 8-K reports.

 

(b)            During
the Registration Period, the Company shall file with the SEC in a timely manner all required reports under section 13 or 15(d) of
the Exchange Act (it being understood that nothing herein shall limit the Company’s obligations under the Securities Purchase
Agreement) and such reports shall conform to the requirements of the Exchange Act and the SEC for filing thereunder.

 

(c)            The
Company shall furnish to the Investor so long as such Investor owns Registrable Securities, promptly upon request, (i) a written
statement by the Company that it has complied with the reporting requirements of Rule 144, (ii) a copy of the most recent
annual report of the Company and such other reports and documents so filed by the Company, and (iii) such other information
as may be reasonably requested to permit the Investors to sell such securities pursuant to Rule 144 without registration.

 

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9.            AMENDMENT
OF REGISTRATION RIGHTS.

 

Provisions of this
Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively
or prospectively), only with the written consent of the Company and Investors who then hold at least two-thirds (2/3) of the Registrable
Securities. Any amendment or waiver effected in accordance with this Section 9 shall be binding upon each Investor and the
Company. No such amendment shall be effective to the extent that it applies to fewer than all of the holders of the Registrable
Securities. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision
of this Agreement unless the same consideration also is offered to all of the parties to this Agreement.

 

10.            MISCELLANEOUS.

 

(a)            A
Person is deemed to be a holder of Registrable Securities whenever such Person owns such Registrable Securities. If the Company
receives conflicting instructions, notices or elections from two (2) or more Persons with respect to the same Registrable
Securities, the Company shall act upon the basis of instructions, notice or election received from the registered owner of such
Registrable Securities.

 

(b)            Piggy-Back
Registrations. If at any time there is not an effective Registration Statement covering all of the Registrable Securities and
the Company shall determine to prepare and file with the SEC a registration statement relating to an offering for its own account
or the account of others under the Securities Act of its Common Stock, other than on Form S-4 or Form S-8 (each as promulgated
under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection with any acquisition
of any entity or business or equity securities issuable in connection with stock option or other employee benefit plans, then the
Company shall send to each Investor a written notice of such determination and, if within fifteen (15) days after the date of such
notice, any such Investor shall so request in writing, the Company shall include in such registration statement all or any part
of such Registrable Securities such Investor requests to be registered; provided, however, that, the Company shall
not be required to register any Registrable Securities pursuant to this Section 10(b) that are eligible for resale pursuant
to Rule 144 promulgated under the Securities Act or that are the subject of a then effective Registration Statement.

 

(c)            Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt,
when sent by email (provided confirmation of transmission is electronically generated and kept on file by the sending party); or
(iii) one (1) business day after deposit with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and email for such communications shall be:

 

    - 11 -

     

    

 

	If to the Company, to:	MEDALIST DIVERSIFIED REIT, INC.
	 	
        Three James Center

        1051 E. Cary Street, Suite 601

        Richmond, VA 23219

         

        Telephone:  804-344-4435

        Attention:  Thomas E. Messier

        E-Mail:  tmessier@medalistprop.com

         

	With Copy to:	
        Kaplan Voekler Cunningham & Frank PLC

        1401 E. Cary Street

        Richmond, VA 23219

         

        Attention: Thomas Voekler

        Telephone: 804-823-4001

        Email: tvoekler@kv-legal.com.

	 	 
	If to the Investor(s):	YA II PN, Ltd.
	 	1012 Springfield Avenue
	 	Mountainside, NJ 07092
	 	Attention:      Mark Angelo
	 	Portfolio Manager
	 	Telephone:    (201) 985-8300 
	 	
        Email: mangelo@yorkvilleadvisors.com

         

	
        With a Copy (which shall not

        Constitute notice or delivery of process) to:
	 
	 	
        David Fine, Esq.

        1012 Springfield Avenue

	 	Mountainside, NJ 07092
	 	Telephone:    (201) 985-8300
	 	Email:              legal@yorkvilleadvisors.com

 

or to such other address and/or email and/or
to the attention of such other person as the recipient party has specified by written notice given to each other party five (5) days
prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent,
waiver or other communication, (B) electronically generated by the sender’s email service provider containing the time,
date, and recipient email or (C) provided by a courier or overnight courier service shall be rebuttable evidence of personal
service, receipt by e-mail or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or
(iii) above, respectively.

 

    - 12 -

     

    

 

(d)            Failure
of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

 

(e)            The
laws of New York shall govern all issues concerning the relative rights of the Company and the Investors as its shareholders. All
other questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether
of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than
the State of New York. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the Supreme Court of the State
of New York, sitting in New York County, New York and federal courts for the Southern District of New York sitting in New York,
New York, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or
discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it
is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at
the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service
of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner
permitted by law. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the
validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(f)            This
Agreement shall inure to the benefit of and be binding upon the permitted successors and assigns of each of the parties hereto.

 

(g)            The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

(h)            This
Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto as an attachment
to an email of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

(i)            Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

    - 13 -

     

    

 

(j)            The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules of
strict construction will be applied against any party.

 

(k)            This
Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for
the benefit of, nor may any provision hereof be enforced by, any other Person.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

 

    - 14 -

     

    

 

IN WITNESS WHEREOF,
the Investor and the Company have caused their signature page to this Registration Rights Agreement to be duly executed as
of the date first above written.

 

	 	COMPANY:
	 	Medalist Diversified REIT, Inc.
	 	 
	 	By:	/s/ Thomas E. Messier
	 	Name:  	Thomas E. Messier
	 	Title:	Chairman and Chief Executive Officer
	 	 
	 	INVESTOR:
	 	YA II PN, Ltd.
	 	 
	 	By:	Yorkville Advisors Global, LP
	 	Its:	Investment Manager
	 	 	 
	 	 	By:	Yorkville Advisors Global II, LLC
	 	 	Its:	General Partner
	 	 	 	 
	 		By:	/s/ David Gonzalez
	 	 	Name:   David
    Gonzalez
	 	 	Title:     Member

 

    - 15 -

     

    

 

EXECUTION VERSION

 

EXHIBIT A

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

Attention:

 

		Re:	MEDALIST DIVERSIFIED REIT, INC.

 

Ladies and Gentlemen:

 

We are U.S. counsel
to MEDALIST DIVERSIFIED REIT, INC., a company formed and existing under the laws of the State of Maryland (the “Company”),
and have represented the Company in connection with that certain Securities Purchase Agreement (the “Securities Purchase
Agreement”) entered into by and among the Company and the Investors named therein (collectively, the “Investors”)
pursuant to which the Company issued to the Investors up to $5,000,000 of convertible debentures (the “Convertible Debentures”),
which are convertible into the Company’s Common Stock, par value $0.01 per share (the “Common Stock”)
(as converted, the “Conversion Shares”). Pursuant to the Securities Purchase Agreement, the Company also has
entered into a Registration Rights Agreement with the Investors (the “Registration Rights Agreement”) pursuant
to which the Company agreed, among other things, to register the Registrable Securities (as defined in the Registration Rights
Agreement) under the Securities Act of 1933, as amended (the “Securities Act”). In connection with the Company’s
obligations under the Registration Rights Agreement, on ____________ ____, the Company filed a Registration Statement on Form ________
(File No. 333-_____________) (the “Registration Statement”) with the Securities and Exchange Commission (the
 “SEC”) relating to the Registrable Securities which names each of the Investors as a selling stockholder thereunder.

 

In connection with
the foregoing, we advise you that a member of the SEC’s staff has advised us by telephone that the SEC has entered an order
declaring the Registration Statement effective under the Securities Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE
OF EFFECTIVENESS] and we have no knowledge, after telephonic inquiry of a member of the SEC’s staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the
SEC and the Registrable Securities are available for resale under the Securities Act pursuant to the Registration Statement.

 

	 	Very
    truly yours,
	 	 
	 	[Law
    Firm]
	 	 
	 	By:	       

 

cc:          [LIST
NAMES OF Investors]Exhibit
4.3

 

Form
of Subscription Agreement

 

SUBSCRIPTION
AGREEMENT

 

SUBSCRIPTION
AGREEMENT (the “Agreement”), dated as of __________ __, 20__, by and among iCap Vault 1, LLC, a limited
liability company, with principal executive offices located at 3535 Factoria Blvd. SE, Suite 500, Bellevue, Washington 98006 (the
“Company”), Vault Holding 1, LLC, a limited liability company, with principal executive offices located at
3535 Factoria Blvd. SE, Suite 500, Bellevue, Washington 98006 (the “Guarantor”), and the buyer identified on
the signature page hereto (“Buyer”).

 

WHEREAS:

 

A.
The Company, the Guarantor and the Buyer desire to enter into this transaction to purchase a Note (as defined below) in the iCap
Vault Demand Note Program (the “Program”) pursuant to the Registration Statement (as defined below) which has
been declared effective in accordance with the Securities Act of 1933, as amended (the “Securities Act”), by
the United States Securities and Exchange Commission (the “SEC”).

 

B.
The Company and the Guarantor have authorized the issuance of Variable Denomination Floating Rate Demand Notes of the Company,
the payment of which is fully and unconditionally guaranteed by the Guarantor, in the form attached hereto as Exhibit A,
issued under an indenture (“Indenture”), dated as of September 18, 2020, among the Company, as issuer of the
Notes, the Guarantor, as guarantor of the Notes, and American Stock Transfer & Trust Company, LLC, as the indenture trustee,
in the form attached hereto as Exhibit B.

 

C.
The Buyer wishes to purchase, and the Company and Guarantor wishes to sell, the principal amount of the Variable Denomination
Floating Rate Demand Notes of the Company, the payment of which is fully and unconditionally guaranteed by the Guarantor, set
forth below such Buyer’s name on the Buyer’s signature page (collectively, the “Notes”).

 

NOW,
THEREFORE, the Company, the Guarantor and the Buyer hereby agree as follows:

 

1.
PURCHASE AND SALE OF NOTES.

 

(a)
Subscription for Note. The Buyer hereby subscribes for and agrees to purchase, subject to the terms and conditions of this
Agreement, the Note in the principal amount set forth upon the signature page hereof. This subscription and agreement represent
an irrevocable offer by the Buyer to subscribe for said Note, except as expressly provided herein. This Agreement, subject to
the terms hereof, shall become a contract for the sale of said Note upon the acceptance hereof by the Company and the Guarantor.

 

(b)
Purchase Price. The purchase price for the Note to be purchased by Buyer (the “Purchase Price”) shall
be the amount set forth below the Buyer’s name on the Buyer’s signature page.

 

(c)
Right to Accept or Reject. The Company and the Guarantor reserves the unrestricted right to accept or reject this or any
other subscription, in whole or in part, to borrow less than the principal amount of the Note subscribed for herein, and to withdraw
its offer at any time.

 

(d)
Form of Payment. The Buyer shall pay its Purchase Price to the Company, in the manner set forth in Exhibit C attached
hereto

 

(e)
Manner of Settlement. The Note will be issued in book entry form, which means that no physical note will be created. Evidence
of the Buyer’s ownership of the Note is provided by written confirmation. The Buyer will not receive or be entitled to receive
any physical delivery of a certificated security or negotiable instrument that evidences the Note. The issuance and transfer of
the Note will be accomplished exclusively through the crediting and debiting of the appropriate accounts in the Company or its
designee’s book-entry registration and transfer system

 

    	1

     

    

 

(f)
Effectiveness of Obligations. Notwithstanding anything herein to the contrary, no offer by the Buyer to purchase the Notes
will be accepted and no part of the Purchase Price will be delivered to the Company until such Buyer has been provided the Disclosure
Package (as defined below) and the Company and Guarantor have accepted such offer by countersigning a copy of this Agreement;
any such offer may be withdrawn or revoked without obligation or commitment of any kind, at any time prior to the Company and
the Guarantor (or any of their agents on behalf of the Company and the Guarantor) sending (orally, in writing or by electronic
mail or other electronic means) notice of its acceptance of such offer. An offer to buy or indication of interest will involve
no obligation or commitment of any kind until such Buyer has been provided the Disclosure Package and this Agreement is accepted
and countersigned by or on behalf of the Company and the Guarantor.

 

 (g)
Investor Advised to Seek Representation. Nothing in this Agreement or any other materials made available to the Buyer in
connection with the purchase and sale of the Notes constitutes legal, tax or investment advice. The Buyer should consult its own
legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase
of Notes. 

 

2.
BUYER’S REPRESENTATIONS AND WARRANTIES. The Buyer represents and warrants to the Company and the Guarantor with respect
to only itself that:

 

(a)
Organization; Authority. If the Buyer is not a natural person, the Buyer is an entity duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization with the requisite power and authority to enter into
and to consummate the transactions contemplated by the applicable Transaction Documents (as defined below) to which it is a party
and otherwise to carry out its obligations hereunder and thereunder. The execution, delivery and performance by such Buyer of
the transactions contemplated by this Agreement has been duly authorized by all necessary action on the part of such Buyer. This
Agreement has been duly executed and delivered by such Buyer, and constitutes the valid and legally binding obligation of such
Buyer, enforceable against it in accordance with its terms, except as such enforceability may be limited by general principles
of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting
generally, the enforcement of applicable creditors’ rights and remedies.

 

(b)
No Conflicts. The execution, delivery and performance by such Buyer of this Agreement and the consummation by such Buyer
of the transactions contemplated hereby will not (i) result in a violation of the organizational documents of the Buyer if it
is not a natural person or (ii) conflict with, or constitute a default (or an event which 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, any agreement,
indenture or instrument to which such Buyer is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment
or decree (including federal and state securities laws) applicable to such Buyer, except in the case of clauses (ii) and (iii)
above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected
to have a material adverse effect on the ability of such Buyer to perform its obligations hereunder. Since the date on which such
Buyer was first informed about the offering of the Notes, such Buyer has not disclosed any information regarding the offering
to any third parties (other than its legal, accounting and other advisors) and has not engaged in any purchases or sales involving
the securities of the Company (including, without limitation, any short sales involving the Company’s securities). Such
Buyer covenants that it will not engage in any purchases or sales involving the securities of the Company (including short sales)
prior to the time that the transactions contemplated by this Agreement are publicly disclosed by the Company. Such Buyer agrees
that it will not use any of the Notes acquired pursuant to this Agreement to cover any short position if doing so would be in
violation of applicable securities laws.

 

(c)
No Distribution. Such Buyer is not an underwriter, as defined in Section 2(a)(11) of the Securities Act, with respect to
the Notes.

 

    	2

     

    

 

 (d)
 Disclosure Package. Such Buyer acknowledges that the
prospectus contained in the Registration Statement, the Company’s and the Guarantor’s other filings with the SEC incorporated
by reference therein and the representations and warranties of the Company and Guarantor contained herein (collectively, the “Disclosure
Package”) had been made available to such Buyer before this Agreement (or any contractual obligation of such Buyer to
purchase the Notes) was deemed to be effective.

 

 (e)
 Residency. Such Buyer is a resident of the jurisdiction
specified under its address on the Buyer’s signature page.

 

 (f)
 Suitability Standards for Certain States. If such Buyer
is a resident of one of the following states, Buyer represents and warrants that Buyer satisfies the suitability standards set
forth under the applicable state below:

 

Alabama

 

Buyers
that are residents of Alabama must have either (i) a net worth of at least $250,000 (exclusive of home, furnishings and automobiles)
or (ii) a gross annual income of at least $70,000 and a net worth of at least $70,000 (exclusive of home, furnishings and automobiles).
In addition, such Buyers must have a liquid net worth of at least 10 times the Purchase Price for the Notes.

 

Arizona

 

Buyers
that are residents of Arizona must have either (i) a minimum of $150,000 (or $200,000 when combined with spouse) in gross income
during the prior year and a reasonable expectation that the investor will have such income in the current year; or (ii) minimum
net worth (exclusive of home, furnishings and automobiles) of $350,000 (or $400,000 when combined with spouse) with the Purchase
Price for the Notes not exceeding 10% of the net worth of the Buyer (together with a spouse, if applicable).

 

Arkansas

 

Buyers that are
residents of Arkansas must have either (i) a minimum annual gross income of at least $80,000 and a minimum net worth of at least
$80,000 (exclusive of automobile, home and home furnishings) or (ii) a net worth of at least $280,000 (exclusive of automobile,
home and home furnishings).

 

California

 

Buyers
that are residents of California must have either (i) an estimated gross income of at least $65,000 during the current tax year
and a net worth of at least $250,000 (exclusive of home, furnishings and automobiles); or (ii) a net worth of at least $500,000
(exclusive of home, furnishings and automobiles). In addition, and in either case, the Purchase Price for the Notes must not exceed
10% of the Buyer’s net worth (exclusive of home, furnishings and automobiles).

 

Idaho

 

Buyers
that are residents of Idaho must have either (i) a liquid net worth of $85,000 and annual gross income of $85,000 or (ii) a liquid
net worth of $300,000. Additionally, such Buyer’s Purchase Price shall not exceed 10% of his or her liquid net worth. “Liquid
net worth” is defined as that portion of net worth consisting of cash, cash equivalents and readily marketable securities.

 

 Kentucky 

   

 Buyers that are
residents of Kentucky must have either (i) annual gross income of at least $70,000 and a liquid net worth of at least $70,000
or (ii) a liquid net worth of $250,000. Liquid net worth is defined as that portion of net worth consisting of cash, cash equivalents
and readily marketable securities. Additionally, a Kentucky investor’s total investment in us shall not exceed 10% of his
or her liquid net worth. 

 

Missouri

 

The
Purchase Price for the Notes of Buyers that are residents of Missouri may not exceed ten percent (10%) of such Buyer’s Liquid
Net Worth.

 

Nebraska

 

Buyers that are residents
of Nebraska must have either (i) annual gross income of at least $70,000 and a net worth of at least $70,000 (exclusive of home,
furnishings and automobiles) or (ii) a net worth of $250,000 (exclusive of home, furnishings and automobiles). Additionally, Nebraska
investors must limit their aggregate investment in this offering and in the securities of other non-publicly traded programs to
10% of such investor’s net worth (exclusive of home, furnishings and automobiles). Investors who are accredited investors
as defined in Regulation D under the Securities Act of 1933, as amended, are not subject to the foregoing investment concentration
limit.

 

 New Jersey 

   

 Buyers that are residents of New Jersey must have either (a)
a minimum liquid net worth of at least $250,000 and a minimum annual gross income of not less than $85,000, or (b) a minimum liquid
net worth of at least $500,000. For these purposes, “liquid net worth” is defined as that portion of net worth (total
assets exclusive of home, home furnishings, and automobiles, minus total liability) that consists of cash, cash equivalent and
readily marketable securities. In addition, New Jersey investors must limit their investment in us, our affiliates and other similar
programs, including non-publicly traded direct investment programs (including real estate investment trusts, business development
companies, oil and gas programs, equipment leasing programs, and commodity pools, but excluding unregistered, federally and state
exempt private offerings) to 10% of their liquid net worth. 

  

New
Mexico

 

Buyers
that are residents of New Mexico must have either (i) a minimum net worth of at least $250,000 or (ii) an annual gross income
of at least $70,000 and a net worth of at least $70,000 (exclusive of home, furnishings and automobiles). In addition, such Buyer’s
Purchase Price for the Notes shall not exceed ten percent (10%) of his or her Liquid Net Worth. Liquid net worth is defined as
that portion of net worth which consists of cash, cash equivalents, and readily marketable securities. 

 

    	3

     

    

 

North Carolina

 

Buyers that are
residents of North Carolina must have either (i) a minimum annual gross income of $70,000 and a minimum net worth of $70,000 (exclusive
of home, home furnishings and automobiles) or (ii) a minimum net worth of $250,000 (exclusive of home, home furnishings and automobiles).

 

Oregon

 

We
have established suitability standards for Oregon investors, which require such investors to have either (i) a minimum annual
gross income of at least $80,000 and a minimum net worth of at least $80,000 (exclusive of automobile, home and home furnishings)
or (ii) a net worth of at least $280,000 (exclusive of automobile, home and home furnishings). Additionally, an Oregon investor’s
total investment in us shall not exceed 10% of his or her liquid net worth. Liquid net worth is defined as that portion of net
worth consisting of cash, cash equivalents and readily marketable securities. 

 

Pennsylvania

 

Buyers
that are residents of Pennsylvania must have either (i) an annual gross income of at least $80,000 and a net worth of at least
$80,000 (exclusive of home, furnishings and automobiles) or (ii) a net worth of at least $280,000 (exclusive of home, furnishings
and automobiles).

 

 Texas 

   

 Buyers that are
residents of Texas must have either (i) a minimum annual gross income of $85,000 and a minimum net worth of $85,000 (exclusive
of home, home furnishings and automobiles) or (ii) a minimum net worth of $330,000 (exclusive of home, home furnishings and automobiles).
In addition, a Texas investor’s total investment in the Notes shall not exceed ten percent (10%) of the investor’s
liquid net worth (net worth is exclusive of home, home furnishings, and automobiles and liquid net worth is defined as that portion
of net worth which consists of cash, cash equivalents, and readily marketable securities). 

   

 Washington 

   

 Buyers that are residents of Washington must have either (i) a minimum annual gross
income of $80,000 and a minimum net worth of $80,000 (exclusive of home, home furnishings and automobiles) or (ii) a minimum net
worth of $280,000 (exclusive of home, home furnishings and automobiles). 

 

Any or all of the quantitative
standards listed in the suitability standards above may be more restrictive pursuant to Regulation Best Interest.

 

(h)
Reliance. The representations, warranties and agreements of the Buyer contained herein are true and correct as of the date
hereof and may be relied upon by the Company and the Guarantor, and the Buyer will notify the Company immediately of any adverse
change in any such representations and warranties which may occur prior to the acceptance of the subscription and will promptly
send the Company written confirmation thereof. The representations, warranties and agreements of the Buyer contained herein shall
survive the execution and delivery of this Agreement and the purchase of the Notes.

 

3.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE GUARANTOR. Each of the Company and the Guarantor represents and warrants,
as applicable, to the Buyer that:

 

(a)
Organization. The Company and the Guarantor have been duly organized and are validly existing as a corporation in good
standing under the laws of the State of Delaware, with corporate power and authority to own or lease its properties and carry
on their business as presently conducted. The Company, the Guarantor and each of their subsidiaries are duly qualified to transact
business in all jurisdictions in which the conduct of their business requires such qualification, except where the failure to
be so qualified would not reasonably be expected to have a material adverse effect on the Company, the Guarantor and such subsidiaries
taken as a whole.

 

(b)
Authorization; Enforcement; Validity. The Company and the Guarantor have the requisite corporate power and authority to
enter into and perform its obligations under this Agreement, the Notes and each of the other agreements entered into by the parties
hereto in connection with the transactions contemplated by this Agreement (collectively, the “Transaction Documents”)
and to issue the Notes in accordance with the terms hereof and thereof. The execution and delivery of the Transaction Documents
by the Company and the Guarantor and the consummation by the Company and the Guarantor of the transactions contemplated hereby
and thereby, including, without limitation, the issuance of the Notes, have been duly authorized by the Company’s and the
Guarantor’s Board of Directors. This Agreement has been duly executed and delivered by the Company and the Guarantor, and
constitutes the legal, valid and binding obligation of the Company and the Guarantor, enforceable against the Company and the
Guarantor in accordance with its terms, except as such enforceability may be limited by general principles of equity or applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement
of applicable creditors’ rights and remedies.

 

    	4

     

    

 

(c)
No Conflicts. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby
will not (i) result in a violation of the organizational documents of the Company, the Guarantor or any of their subsidiaries
or (ii) conflict with, or constitute a default (or an event which 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, any agreement, indenture or instrument
to which the Company, the Guarantor or any of their subsidiaries is a party, or (iii) result in a violation of any law, rule,
regulation, order, judgment or decree (including federal and state securities laws) applicable to the Company, the Guarantor or
any of their subsidiaries, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations
which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of
the Company and the Guarantor to perform their obligations hereunder.

 

4.
REGISTER. The Company and the Guarantor shall maintain at its principal executive offices (or such other office or agency
of the Company as it may designate by notice to each holder of Notes), a register for the Notes in which the Company shall record
the name and address of the person in whose name the Notes have been issued (including the name and address of each transferee)
and the principal amount of Notes held by such person.

 

5.
INDEMNIFICATION. The Buyer agrees to indemnify and hold the Company, the Guarantor and their agents, representatives and
employees harmless from and against all liability, damage, loss, cost and expense (including reasonable attorneys’ fees)
which they may incur by reason of the failure of the Buyer to fulfill any of the terms or conditions of this Agreement, or by
reason of any inaccuracy or omission in the information furnished by the Buyer herein or any breach of the representations and
warranties made by the Buyer herein or in any document provided by the Buyer to the Company and the Guarantor.

 

6.
AGREEMENT TO TRANSACTION DOCUMENTS. The Buyer hereby joins in and becomes a Holder under that certain Collateral Agent Agreement
dated as of September 18, 2020 between iCap Vault 1, LLC, a Delaware limited liability company and Marketplace Realty Advisors,
LLC, in the form attached hereto as Exhibit D.

 

7.
MISCELLANEOUS.

 

(a)
This Agreement has been duly and validly authorized, executed and delivered by the Buyer and constitutes the valid, binding and
enforceable agreement of the Buyer. If this Agreement is being completed on behalf of an entity it has been completed and executed
by an authorized party.

 

(b)
Within five (5) days after receipt of a written request from the Company, the Buyer agrees to provide such information, to execute
and deliver such documents and to take, or forbear from taking, such actions or provide such further assurances as reasonably
may be necessary to correct any errors in documentation or to comply with any and all laws to which the Company is subject.

 

(c)
The Company shall be notified immediately of any change in any of the information contained above occurring prior to the Buyer’s
purchase of the Notes or at any time thereafter for so long as the Buyer is a holder of the Notes.

 

(d)
Termination of Agreement; Return of Funds. In the event that, for any reason, this Agreement is rejected in its entirety
by the Company or the Guarantor, this Agreement shall be null and void and of no further force and effect, and no party shall
have any rights against any other party hereunder. In the event that the Company or the Guarantor rejects this Agreement, the
Company shall promptly return or cause to be returned to Subscriber any money tendered hereunder without interest or deduction.

 

    	5

     

    

 

(e)
Governing Law; Jurisdiction; Waiver of Jury Trial. All questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by the laws of the State of Delaware, without regard to principles of conflicts
of laws. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in King County,
Washington, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that
it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service
of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party
at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service
of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any
manner permitted by law. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY. THIS WAIVER OF RIGHTS TO A JURY TRIAL AND EXCLUSIVE FORUM
PROVISION DO NOT APPLY TO CLAIMS MADE UNDER THE FEDERAL AND STATE SECURITIES LAWS. EACH PARTY HERETO (A) CERTIFIES THAT NO AGENT,
ATTORNEY, REPRESENTATIVE OR ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT SEEK TO
ENFORCE THE FOREGOING WAIVER IN THE EVENT OF LITIGATION, 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.

 

(f)
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one
and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party; provided that a facsimile signature or other electronic signature (including portable document format) shall be considered
due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original,
not a facsimile or electronic signature.

 

(g)
Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement.

 

(h)
Severability. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable
by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed
amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such
provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified
continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the
prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective
expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred
upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s)
with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable
provision(s).

 

(i)
Entire Agreement; Amendments. This Agreement and the other Transaction Documents supersede all other prior oral or written
agreements between the Buyer, the Company, the Guarantor, their affiliates and persons acting on their behalf with respect to
the matters discussed herein, and this Agreement, the other Transaction Documents and the instruments referenced herein and therein
contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically
set forth herein or therein, neither the Company, the Guarantor nor the Buyer makes any representation, warranty, covenant or
undertaking with respect to such matters. No provision of this Agreement may be amended, modified or waived other than by an instrument
in writing signed by the Company, the Guarantor and the Buyer, and any amendment, modification or waiver to this Agreement made
in conformity with the provisions of this Section 6(e) shall be binding on such Buyer and holder of Notes as applicable. The Company
and the Guarantor have not, directly or indirectly, made any agreements with the Buyer relating to the terms or conditions of
the transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents.

 

    	6

     

    

 

(j)
Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon
receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on
file by the sending party); or (iii) one (1) business day after deposit with an overnight courier service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

 

If
to the Company and the Guarantor:

 

iCap
Vault 1, LLC

3535
Factoria Blvd. SE, Suite 500

Bellevue,
WA 98006

Telephone:
(425) 278-9030

Attention:
Investor Relations Department

 

with
a copy (for informational purposes only) to:

 

Anthony
L.G., PLLC

625
N. Flagler Drive, Suite 600

West
Palm Beach, FL 33401

Telephone:
(561) 514-0936

 

If
to the Buyer, to its address and facsimile number set forth on the Buyer’s signature page, with copies to such Buyer’s
representatives as set forth on the Buyer’s signature page, or to such other address and/or facsimile number and/or to the
attention of such other person as the recipient party has specified by written notice given to each other party five (5) business
days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent,
waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing
the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided by an overnight
courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight courier service
in accordance with clause (i), (ii) or (iii) above, respectively.

 

(k)
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns, including any purchasers of the Notes. The Company and the Guarantor shall not assign this Agreement or
any rights or obligations hereunder without the prior written consent of the Buyer. The Buyer may not assign this Agreement or
any rights or obligations hereunder without the prior written consent of the Company and the Guarantor.

 

(l)
No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

(m)
Survival. The representations, warranties and covenants of the Company, the Guarantor and the Buyer contained in this Agreement
shall survive.

 

(n)
Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as are reasonably necessary
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

(o)
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party.

 

[The
remainder of page intentionally left blank; Signature page follow]

 

    	7

     

    

 

iCap
Vault 1, LLC

Investor
Profile

(Must
be completed by the Buyer)

 

Section
A - Personal Investor Information

 

	Investor
    Name(s):	 

 

	Individual
    executing Profile or Trustee:	 

 

	Social
    Security Numbers / Federal I.D. Number:	 

 

	Date
    of Birth:	 	 	Marital
    Status:	 
	Joint
    Party Date of Birth:	 	 	Investment
    Experience (Years):	 
	Annual
    Income:	 	 	 	 

 

	Home
    Street Address:	 
	 	 
	Home
    City, State & Zip Code:	 

 

	Home
    Phone:	 	 	Home
    Fax:	 	 	Home
    Email:	 

 

	Outside
    Broker/Dealer: 	 	 

 

    	8

     

    

 

INDIVIDUALS

 

IN
WITNESS WHEREOF, the Buyer has executed this Subscription Agreement , 2020.

 

	 	 
	 	(Signature
    of the Buyer)

 

	 	PRINT
    NAME:	 

 

	 	COMPANY
    NAME (IF APPLICABLE):
	 	 	 
	 	 	 
	 	TITLE
    OF SIGNER (IF APPLICABLE):
	 	 	 
	 	 	 
	 	TAXPAYER
    IDENTIFICATION OR SOCIAL

 

	 	SECURITY
    NO.:	 

 

	 	RESIDENCE
    OR BUSINESS ADDRESS:
	 	 	 
	 	 	 
	 	Street	 

 

	 	 	 	 
	 	City	State	Zip

 

	 	MAILING
    ADDRESS (If different from business address):
	 	 	 
	 	 	 
	 	Street	 

 

	 	 	 	 
	 	City	State	Zip

 

	 	PRINCIPAL
                                         AMOUNT OF

        NOTES
        SUBSCRIBED FOR:
	 
	 	 	 
	 	PURCHASE
    PRICE OF NOTES: 	 

 

ACCEPTED
AND AGREED TO:

 

iCap
Vault 1, LLC:

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

	Date:	 	,
    2020

 

Vault
Holding 1, LLC, as guarantor:

 

	By:
    	 	 
	Name:
    	 	 
	Title:
    	 	 

 

	Date:
    	 	,
    2020 

 

    	9

     

    

 

CORPORATIONS,
PARTNERSHIPS, TRUSTS OR OTHER ENTITIES

 

IN
WITNESS WHEREOF, the Buyer has executed this Subscription Agreement________________, 2020.

 

	 	 
	 	NAME
    OF THE BUYER

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

	 	Date:	 	,
    2020

 

	 	 	 
	 	TAXPAYER
    IDENTIFICATION OR SOCIAL

 

	 	SECURITY
    NO.:	 

 

	 	RESIDENCE
    OR BUSINESS ADDRESS:
	 	 	 
	 	 	 
	 	Street	 

 

	 	 	 	 
	 	City	State	Zip

 

	 	MAILING
    ADDRESS (If different from business address):
	 	 	 
	 	 	 
	 	Street	 

 

	 	 	 	 
	 	City	State	Zip

 

	 	PRINCIPAL
                                         AMOUNT OF

        NOTES
        SUBSCRIBED FOR:
	 
	 	 	 
	 	PURCHASE
    PRICE OF NOTES:	 

 

ACCEPTED
AND AGREED TO:

 

iCap
Vault 1, LLC:

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

	Date:	 	,
    2020

 

Vault
Holding 1, LLC, as guarantor:

 

	By:
    	 	 
	Name:
    	 	 
	Title:
    	 	 

 

	Date:
    	 	,
    2020 

 

    	10

     

    

 

EXHIBIT
A

 

Form
of Notes

 

EXHIBIT
B

 

Indenture

 

EXHIBIT
C

 

Methods
of Payment

 

How
to Make an Initial Investment

 

Prior
to making an initial investment, you should read the prospectus which forms a part of the Company’s registration statement
on Form S-11, as amended (File Nos. 333-236458 and 333-236458-01), pursuant to which the Notes are being offered.
To make an initial investment, you must set up an account and complete the onboarding process at the Company’s website at
www.icapequity.com/vault. Please refer to the website for instructions, requirements and guidelines with respect to online
account setup and initial investments. Certain eligibility rules apply. You will be required to read and accept the Terms of Use
before submitting completing this process online.

 

Currently,
the minimum initial investment is $25; however, the Company can waive the minimum initial investment requirement on a case to
case basis in its sole discretion. Your initial investment will be made using an ACH transfer from a U.S. bank account you have
successfully linked during the online onboarding process. You must verify your ownership of the linked U.S. bank account by completing
the bank account verification process online. Funds received as part of your initial investment cannot be redeemed until three
business days after such amounts are credited. You may not make an initial investment by wire transfer or by using cash or a check.
**Note that this is only for the initial investment and account linking.

 

How
to Make Additional Investments

 

After
your initial investment in the Notes, you may make additional investments at any time, without charge to you, in any amount, by
the methods described below or by such other means as the Company from time to time determines. There is no required minimum amount
for subsequent investments. All investments must be made in U.S. dollars unless otherwise designated by the Company.

 

BY
ACH INVESTMENT. You may use the Company website or call us at (425) 453-7497 at any time to withdraw any amount of funds from
your linked U.S. bank account to invest in the Notes through an ACH transfer. You may also set up automatic recurring ACH investment
transactions from a linked U.S. bank account. See “—BY AUTOMATIC MONTHLY INVESTMENT” below. If you set
up automatic recurring ACH investment transactions, the Company will prepare automatic electronic transfers using the transfer
dates each month for the amount authorized and on the business day you have requested. If an automatic transfer day falls on a
day that is not a business day, the transfer will be initiated on the next business day; provided, however, if an ACH automatic
investment is set for the last weekend of a month, the investment will be made on the last business day of that month. Investments
made by ACH transfer are invested in your Notes and begin to accrue interest on the same day your money is credited. In the case
of a one-time transfer, the Company will prepare an electronic transfer for the amount authorized and on the business day you
have requested. One-time ACH investment requests made prior to 7:30 a.m. Pacific Time generally will be posted to the Note on
the next business day and requests made at or after 7:30 a.m. Pacific Time generally will be posted two business days following
the request. Investments made by ACH cannot be redeemed until three business days after such amounts are credited to the Notes.
You may change or terminate any automatic investments at any time. You can confirm the date your investment was made by accessing
the Company website at www.icapequity.com/vault or by calling us at (425) 453-7497. We charge no fees for the receipt of
ACH transfers; however, your commercial bank or financial institution may charge you a fee if you make an investment by ACH transfer.

 

    	11

     

    

 

BY
WIRE INVESTMENT. You may make additional investments by wire transfer. The wire transfer must include the information provided
by the Company’s designated bank and come from a bank account in your name. Wires may only be originated from a bank located
in the U.S. and must be payable in U.S. dollars. Your investment will be credited and you will begin earning interest on the same
business day the wire is received provided that the funds have been received by 1:00 p.m. Pacific Time. Funds received at or after
1:00 p.m. Pacific Time are invested and begin to accrue interest on the next business day. Investments made by wire are available
for redemption beginning the day such investments are credited to the Notes. Investments by wire transfer may incur a charge from
your bank or financial institution. See “Description of the Notes— Account Fees and Charges.” Neither the Company
nor its designated bank is responsible for delays in acting on your request for authorization to make a wire transfer or in the
transfer and wiring of funds. You can confirm the date your investment was made by accessing the Company’s website at www.icapequity.com/vault
or by calling us at (425) 453-7497. If for any reason your wire request is declined, the Company will advise you of that fact
and give you instructions for how to make the additional investment through the ACH process.

 

BY
AUTOMATIC MONTHLY INVESTMENT. You may select to make additional investments via ACH on a monthly basis in a specified amount.
Automatic monthly investments may not be made by wire transfer. If you set up automatic recurring ACH investment transactions,
the Company’s designated bank will prepare automatic electronic transfers using the transfer dates each month for the amount
authorized and on the business day you have requested. If an automatic transfer day falls on a day that is not a business day,
the transfer will be initiated on the next business day; provided, however, if an ACH automatic investment is set for the last
weekend of a month, the investment will be made on the last business day of that month. Investments made by ACH transfer are invested
in your Notes and begin to accrue interest on the same day your money is credited. Investments made by ACH cannot be redeemed
until three business days after such amounts are credited to the Notes. You may request, modify or terminate the Automatic Monthly
Investment Option through the Company’s website at www.icapequity.com/vault or by calling us at (425) 453-7497. Such
notice is effective as soon as practicable after receipt by the Company’s designated bank. You can confirm the date your
investment was made by accessing the Company’s website at www.icapequity.com/vault or by calling us at (425) 453-7497.
We charge no fees for the receipt of ACH transfers; however, your commercial bank or financial institution may charge you a fee
if you make an investment by ACH transfer.

 

BY
CASH. You may invest in Notes by delivering cash to us at our executive offices located at 3535 Factoria Blvd. SE, Suite 500,
Bellevue, WA 98006. Investments in Notes made with cash begin to accrue interest as of the date the investment is made at our
executive offices.

 

BY
CHECK. You may invest in Notes by check delivered to our executive offices located at 3535 Factoria Blvd. SE, Suite 500,
Bellevue, WA 98006. Checks must be drawn in U.S. dollars on a U.S. bank. Investments made by check begin to accrue interest on
the date funds are credited to Company’s designated bank account.

 

We
reserve the right to reject any investment application and return the funds to a potential investor for any reason, including
if any investments are not preceded or accompanied by documentation satisfactory to us to establish that the potential investor
meets any applicable eligibility criteria.

 

EXHIBIT
D

Collateral
Agent Agreement

 

    	12

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