Document:

ex10-ac.htm

Exhibit 10-ac

TRUSTMARK CORPORATION

FORM OF

PERFORMANCE-BASED RESTRICTED STOCK AGREEMENT

(Associate)

Granted <<grant date>>

This Performance-Based Restricted Stock Agreement (“Agreement”) is entered into as of <<grant date>> (the “Award Date”) pursuant to the Trustmark Corporation 2005 Stock and Incentive Compensation Plan (the “Plan”), and evidences the grant of Restricted Stock and Restricted Stock Units (the “Award”) by Trustmark Corporation (the “Company”) and the terms, conditions and restrictions pertaining thereto, to the Participant.

WHEREAS, the Company maintains the Plan under which the Committee may, among other things, award shares of the Company’s common stock (“Stock”) to such key associates of the Company and its Subsidiaries as the Committee may determine, subject to terms, conditions and restrictions as it may deem appropriate; and

WHEREAS, pursuant to the Plan, the Company, upon recommendation by the Committee and approval by the Company’s Board of Directors, has granted to the Participant a restricted stock and restricted stock unit award conditioned upon the execution by the Company and acceptance by the Participant of a Performance-Based Restricted Stock Agreement setting forth all the terms and conditions applicable to such award;

NOW THEREFORE, in consideration of the benefits which the Company expects to be derived from the services rendered to it and its Subsidiaries by the Participant and of the covenants contained herein, the parties hereby agree as follows:

1.           Award.  Under the terms of the Plan, the Company, upon recommendation by the Committee and approval by the Company’s Board of Directors on the Award Date, awarded to the Participant the Award of Restricted Stock, effective on the Award Date, covering the number of shares of the Company’s Stock specified with respect to the Award on the Participant’s summary page for performance stock awards on the internet hosting website designated by the Company and in the Company’s records (the “Award Shares”) and an equal number of Restricted Stock Units (the “Restricted Stock Units”), subject to the terms, conditions, and restrictions set forth in this Agreement.

2.           Period of Restriction and Vesting.

	
  

	
(a)

	
Subject to earlier vesting or forfeiture as provided below, the period of restriction (the “Period of Restriction”) applicable to the Award Shares and the Restricted Stock Units is the period from the Award Date through <<vesting date>>, with vesting being determined by the Company’s return on average tangible equity (“ROATE”) and total shareholder return (“TSR”) ranking for the <<number>> calendar quarters beginning <<beginning of performance period>> and ending <<end of performance period>> (the “Performance Period”) compared to the ROATE and TSR for the Peer Group (see Attachment A) as follows, where vesting in the Award Shares is equal to the number of the Award Shares multiplied by the sum of the vesting percentage in (A) and the vesting percentage in (B) below:

	  	
(A)

	  	  	
(B)

	
ROATE

	
ROATE

	  	
TSR

	
TSR

	
Ranking

	
Vesting Percentage

	  	
Ranking

	
Vesting Percentage

	  	  	  	  	  
	
<<rank>> Percentile

	
100%

	
+

	
<<rank>> Percentile

	
100%

	
<<rank>> Percentile

	
90%

	
+

	
<<rank>> Percentile

	
90%

	  	  	  	  	  
	
<<rank>> Percentile

	
70%

	
+

	
<<rank>> Percentile

	
70%

	
<<rank>> Percentile

	
50%

	
+

	
<<rank>> Percentile

	
50%

	
<<rank>> Percentile

	
32.5%

	
+

	
<<rank>> Percentile

	
32.5%

	
<<rank>> Percentile

	
22.5%

	
+

	
<<rank>> Percentile

	
22.5%

	
<<rank>> Percentile

	
17.5%

	
+

	
<<rank>> Percentile

	
17.5%

	
Less than <<rank>>

	
0%

	
+

	
Less than <<rank>>

	
0%

If the Company’s ranking is above the <<rank>> percentile, but less than the <<rank>> percentile, then the vesting percentage shall be determined by straight line interpolation (rounded, where not otherwise resulting in a whole or half percent, to the next lowest whole or half percent) where the ranking falls between identified percentile tiers (for example, if the ranking is in the <<rank>> percentile, then the vesting percentage is <<%>>).

  

155

  

If the aggregate vesting exceeds 100%, all Award Shares shall be vested and additional shares of the Company’s Stock (“Achievement Shares”) shall be issued to the Participant, in settlement of the vested Restricted Stock Units, in a number equal to the excess of the aggregate vesting pursuant to this Paragraph 2(a) over 100% multiplied by the number of Restricted Stock Units (as adjusted by the Committee pursuant to Section 4.4 of the Plan to reflect such events as stock dividends, stock splits, recapitalizations, mergers, consolidations or reorganizations of or by the Company). The Achievement Shares shall be unrestricted, 100% vested and freely transferable as of their date of issuance and shall have full voting rights and otherwise possess all rights of Shares from their date of issuance.

Except as contemplated in Paragraph 2(b), neither the Award Shares nor the Restricted Stock Units may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, otherwise than by will or by the laws of descent and distribution, during the Period of Restriction.  Except as otherwise provided pursuant to Paragraph 2(b), the vested portion of the Award Shares as determined pursuant to this Paragraph 2(a) shall become freely transferable by the Participant as of the last day of the Period of Restriction, and any unvested balance of the Award Shares and Restricted Stock Units at that time shall be forfeited.

All determinations regarding vesting and entitlement to the Award Shares, the Restricted Stock Units and any Achievement Shares under this Paragraph 2(a) shall be made and certified to in writing by the Committee, and all such shares and units shall be settled or issued, as applicable, during the 2-1/2 month period following the end of the Performance Period.

	
  

	
(b)

	
Subject to earlier forfeiture as provided below, in the event a Vesting Acceleration Event occurs while the Participant is an employee of the Company or one of its Subsidiaries and after the first calendar quarter in, but prior to the last day of, the Performance Period, then the ROATE and the TSR of the Company and the Peer Group shall be determined for all calendar quarters in the Performance Period ending on or prior to the date of the first such Vesting Acceleration Event and the vesting provisions set forth in Paragraph 2(a) shall be applied to a time-weighted portion of the Award Shares (determined by multiplying the number of Award Shares by a fraction (not to exceed one), the numerator of which is the number of complete calendar months from the beginning of the Performance Period to and including the Vesting Acceleration Event, and the denominator of which is <<number of calendar months in performance period>>) based on such ROATE and the TSR.  In such event, the Period of Restriction shall end, the restrictions applicable to the Award Shares shall automatically terminate, and the Award Shares shall be free of restrictions and freely transferable, all to the extent of the vested Award Shares as so determined, on the date of such Vesting Acceleration Event. In such event, any balance of the Award Shares and Restricted Stock Units which are not vested shall be immediately forfeited.  If the aggregate time-weighted vesting exceeds 100%, Achievement Shares shall be issued to the Participant, in settlement of the vested Restricted Stock Units, in a number equal to the excess of the aggregate time-weighted vesting pursuant to this Paragraph 2(b) over 100% multiplied by the number of Restricted Stock Units (as adjusted by the Committee pursuant to Section 4.4 of the Plan to reflect such events as stock dividends, stock splits, recapitalizations, mergers, consolidations or reorganizations of or by the Company).  The Achievement Shares shall be unrestricted, 100% vested and freely transferable as of their date of issuance and shall have full voting rights and otherwise possess all rights of Shares from their date of issuance. All determinations regarding vesting and entitlement to the Award Shares, the Restricted Stock Units and any Achievement Shares under this Paragraph 2(b) shall be made and certified to in writing by the Committee, and all such shares and units shall be settled or issued, as applicable, within 2-1/2 months following the date of the Vesting Acceleration Event (subject to any delay in issuance of the Achievement Shares required by Section 409A of the Internal Revenue Code).

	
  

	
(c)

	
The following terms have the following meanings for purposes hereof:

	
  

	
(i)

	
“Cause” means that the Participant (A) has committed an act of personal dishonesty, embezzlement or fraud, (B) has misused alcohol or drugs, (C) has failed to pay any obligation owed to the Company or any affiliate, (D) has breached a fiduciary duty or deliberately disregarded any rule of the Company or any affiliate, (E) has committed an act of willful misconduct, or the intentional failure to perform stated duties, (F) has willfully violated any law, rule or regulation (other than misdemeanors, traffic violations or similar offenses) or any final cease-and-desist order, (G) has disclosed without authorization any confidential information of the Company or any affiliate, (H) has engaged in any conduct constituting unfair competition, (I) has induced any customer of the Company or any affiliate to breach a contract with the Company or any affiliate, (J) has been convicted of, or has entered a guilty plea or plea of no contest to, any felony or misdemeanor involving moral turpitude, (K) has failed to perform substantially his duties with and responsibilities to the Company (other than any such failure resulting from incapacity due to disability), (L) has violated in any material respect the Company’s or any affiliate's policies or procedures, including without limitation, the Code of Ethics, or (M) has engaged in conduct that has resulted, or if it became known by any regulatory or governmental agency or the public is reasonably likely to result, in the good faith judgment of the Board of Directors, in material injury to the Company or any affiliate, whether monetary, reputational or otherwise.

  

156

  

	
  

	
(ii)

	
“Peer Group” means the financial institutions listed on Attachment A hereto; provided that subject to any restrictions and limitations under Section 162(m) of the Internal Revenue Code, any listed financial institution shall be eliminated if it is acquired or otherwise changes its structure or business such that it is no longer reasonably comparable to the Company (as determined by the Committee), and in the case of any such elimination, the Committee may or may not replace the eliminated financial institution with another financial institution which it considers reasonably comparable to the Company.

	
  

	
(iii)

	
“ROATE” means the cumulative net earnings after taxes available to common shareholders, adjusted for tax-affected amortization of intangibles, for the calendar quarters in each calendar year in a specified period of time divided by average shareholders’ tangible common equity (which is the excess of the difference between the total assets, excluding total identifiable intangible assets and goodwill, and the sum of total liabilities and preferred equity, averaged for the calendar quarters in each calendar year in the specified period), all as determined in accordance with generally accepted accounting principles and as reported in the Company’s financial statements provided to shareholders and converted to an annual rate by dividing by the number of years and partial years (expressed in quarters) in the specified period.

	
  

	
(iv)

	
“TSR” means the return a holder of common stock earns over a specified period of time, expressed as a percentage and including changes in Average Market Value of, and dividends or other distributions with respect to, the stock and converted to an annual rate by dividing the calculated percentage for the specified period by the number of years and partial years (expressed in quarters) in the specified period.  TSR return shall be determined as the sum of (A) the Ending Average Market Value reduced by the Beginning Average Market Value and (B) dividends or other distributions with respect to a share paid during the specified period and with such dividends and other distributions deemed reinvested in Stock (based on Market Share Price on the date of payment where not paid in Stock), and (C) with such sum being divided by the Beginning Average Market Value.  TSR, including the value of reinvested dividends and other distributions, shall be determined on the basis of the appropriate total shareholder return model of Bloomberg L.P. or any affiliate thereof or such other authoritative source as the Committee may determine.  For purposes hereof:

	
  

	
(A)

	
“Average Market Value” means the average of the closing sale price of such stock for the applicable ten trading days beginning or ending on a specified date for which such closing sales price is reported by Bloomberg L.P. or any affiliate thereof or such other authoritative source as the Committee may determine.

	
  

	
(B)

	
“Beginning Average Market Value” means the Average Market Value based on the first ten trading days of the Performance Period.

	
  

	
(C)

	
“Ending Average Market Value” means the Average Market Value based on the last ten trading days of the Performance Period (or other period as of which Ending Average Market Value is calculated).

	
  

	
(D)

	
“Market Share Price” means the closing sale price for the specified day (or the last preceding day thereto for which reported) as reported by Bloomberg L.P. or any affiliate thereof or such other authoritative source as the Committee may determine.

	
  

	
(v)

	
“Vesting Acceleration Event” means the Participant’s death, the Participant’s retirement after <<date>>, with the consent of the Committee or its delegate, at or after age sixty-five (65) where there is no Cause (as defined herein) for the Company to terminate the Participant’s employment, the termination after <<date>> of the Participant’s employment with the Company and its Subsidiaries by the Company other than for Cause (as defined herein), the occurrence of a Change in Control which with respect to the Participant is a change in the ownership or effective control of the Company or in the ownership of a substantial portion of its assets (as defined in Section 409A of the Internal Revenue Code), or

  

157

  

	
  

	
(A)

	
if the Participant does not have an Employment Agreement, the Participant’s termination of employment due to becoming disabled (as defined for purposes of Section 22(e)(3) of the Internal Revenue Code), or

	
  

	
(B)

	
if the Participant has an Employment Agreement, the Participant’s termination of employment due to becoming disabled (as defined in his or her Employment Agreement or, if not so defined, as defined for purposes of Section 22(e)(3) of the Internal Revenue Code), or the Participant’s termination of employment with the Company and its Subsidiaries after <<date>> at his or her own initiative for Good Reason (as defined in his or her Employment Agreement, but only if defined therein).

For purposes of determining a Vesting Acceleration Event, an “Employment Agreement” means a written individual employment agreement, or if there is no employment agreement, then a written individual change in control agreement, as in effect on the Award Date between the Participant and the Company or one of its Subsidiaries.  If a Participant does not have such a written individual employment agreement or change in control agreement, the Participant is considered not to have an Employment Agreement for purposes hereof.

	
3.

	
Stock Certificates.

	
  

	
(a)

	
The Company shall issue the Award Shares and Achievement Shares, if any, either: (i) in certificate form as provided in Paragraph 3(b) below; or (ii) in book entry form, registered in the name of the Participant with notations regarding any applicable restrictions on transfer imposed under this Agreement.

	
  

	
(b)

	
Any certificates representing Award Shares shall be held by the Company until such time as the restrictions hereunder lapse and such shares become transferable, or are forfeited hereunder.  Any Award Shares issued in book entry form shall be subject to the following legend and any certificates representing the Award Shares shall bear the following legend, until such time as the restrictions hereunder lapse and such shares become transferable:

The sale or other transfer of the Shares of Stock represented by this certificate, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer set forth in the Trustmark Corporation 2005 Stock and Incentive Compensation Plan, in the rules and administrative procedures adopted pursuant to such Plan, and in a Performance-Based Restricted Stock Agreement dated <<grant date>>. A copy of the Plan, such rules and procedures, and such Performance-Based Restricted Stock Agreement may be obtained from the Secretary of Trustmark Corporation.

	
  

	
(c)

	
Promptly after the lapse of the restrictions with respect to any of the Award Shares, the Company shall, as applicable, either remove the notations on the Award Shares issued in book entry form as to which the restrictions have lapsed or deliver to the Participant a certificate or certificates evidencing the number of Award Shares as to which the restrictions have lapsed.

	
  

	
(d)

	
The Committee may require, concurrently with the Participant’s electronic acceptance of this Agreement, the Participant to submit to the Company an executed stock power, in blank, with respect to the Award Shares or Achievement Shares.  The Participant, by acceptance of the Award, shall be deemed to appoint, and does so appoint, the Company and each of its authorized representatives as the Participant’s attorney(s) in fact to effect any transfer of forfeited shares (or shares otherwise reacquired or withheld by the Company hereunder) to the Company as may be required pursuant to the Plan or this Agreement and to execute such documents as the Company or such representatives deem necessary or advisable in connection with any such transfer.

4.           Voting Rights.  During the Period of Restriction, the Participant may exercise full voting rights with respect to the Award Shares but shall have no voting rights with respect to the Restricted Stock Units.  The Participant shall have no voting rights with respect to the Achievement Shares until their date of issuance.

5.           Dividends and Other Distributions.  During the Period of Restriction, all dividends and other distributions paid with respect to the Award Shares (whether in cash, property or shares of the Company’s Stock) shall be registered in the name of the Participant and held by the Company until payable or forfeited pursuant hereto.  Such dividends and other distributions shall be subject to the same restrictions on transferability and vesting as the Award Shares with respect to which they were paid and shall, to the extent vested, be paid when and to the extent the underlying Award Shares are vested and freed of restrictions (subject to any delay in payment required by Section 409A of the Internal Revenue Code). No dividends or other distributions shall be paid with respect to the Restricted Stock Units. Dividends and other distributions shall only be paid with respect to the Achievement Shares beginning on the date of issuance of the Achievement Shares.

  

158

  

6.           Termination of Employment.  If the Participant’s employment with the Company and its Subsidiaries ceases prior to the end of the Performance Period and Paragraph 2(b) does not apply or has not applied, then any Award Shares and Restricted Stock Units subject to restrictions at the date of such cessation of employment shall be automatically forfeited to the Company and no Achievement Shares shall be issued to the Participant. If the Participant’s employment with the Company and its Subsidiaries ceases after the end of the Performance Period but prior to the date of issuance of the Achievement Shares, where there is Cause (as defined above) for the Company to terminate Participant’s employment, then all Restricted Stock Units shall be forfeited to the Company and no Achievement Shares shall be issued to the Participant.  For purposes of this Agreement, transfer of employment among the Company and its Subsidiaries shall not be considered a termination or cessation of employment.

7.           Withholding Taxes.  The Company, or any of its Subsidiaries, shall have the right to retain and withhold the amount of taxes required by any government to be withheld or otherwise deducted and paid with respect to the Award Shares, the Restricted Stock Units and the Achievement Shares.  The Committee may require the Participant or any successor in interest to pay or reimburse the Company, or any of its Subsidiaries, for any such taxes required to be withheld by the Company, or any of its Subsidiaries, and to withhold any distribution in whole or in part until the Company, or any of its Subsidiaries, is so paid or reimbursed.  In lieu thereof, the Company, or any of its Subsidiaries, shall have the right to withhold from any other cash amounts due to or to become due from the Company, or any of its Subsidiaries, to or with respect to the Participant an amount equal to such taxes required to be withheld by the Company, or any of its Subsidiaries, to pay or reimburse the Company, or any of its Subsidiaries, for any such taxes or to retain and withhold a number of shares of the Company’s Stock having a market value not less than the amount of such taxes and cancel any such shares so withheld in order to pay or reimburse the Company, or any of its Subsidiaries, for any such taxes.  The Participant or any successor in interest is authorized to deliver shares of the Company’s Stock in satisfaction of minimum statutorily required tax withholding obligations (whether or not such shares have been held for more than six months and including shares acquired pursuant to this Award if the restrictions thereon have lapsed).

8.           Administration of Plan.  The Plan is administered by the Committee appointed by the Company’s Board of Directors.  The Committee has the authority to construe and interpret the Plan, to make rules of general application relating to the Plan, to amend outstanding awards pursuant to the Plan, and to require of any person receiving an award, at the time of such receipt or lapse of restrictions, the execution of any paper or the making of any representation or the giving of any commitment that the Committee shall, in its discretion, deem necessary or advisable by reason of the securities laws of the United States or any State, or the execution of any paper or the payment of any sum of money in respect of taxes or the undertaking to pay or have paid any such sum that the Committee shall in its discretion, deem necessary by reason of the Internal Revenue Code or any rule or regulation thereunder, or by reason of the tax laws of any State.

9.           Plan and Prospectus.  This Award is granted pursuant to the Plan and is subject to the terms thereof (including all applicable vesting, forfeiture, settlement and other provisions).  A copy of the Plan, as well as a prospectus for the Plan, has been provided to the Participant, and the Participant acknowledges receipt thereof.

10.           Notices.  Any notice to the Company required under or relating to this Agreement shall be in writing and addressed to:

	
  

	
Trustmark Corporation

	
Mailing Address

	
  

	
248 E. Capitol Street

	
P.O. Box 291

	
  

	
Jackson, MS  39201

	
Jackson, MS  39205

Attention:  Secretary

Any notice to the Participant required under or relating to this Agreement shall be in writing and addressed to the Participant at his or her address as it appears on the records of the Company. Alternatively, any notice to the Company or the Participant required under or relating to this Agreement may be delivered via the internet hosting website designated by the Company.

11.           Construction and Capitalized Terms.  This Agreement shall be administered, interpreted and construed in accordance with the applicable provisions of the Plan and in accordance with both the Award Shares and the Restricted Stock Units (which are settleable in Achievement Shares) being a Performance-Based Compensation Award and “performance-based compensation” within the meaning of Section 162(m)(4)(C) of the Internal Revenue Code.  Capitalized terms in this Agreement have the meaning assigned to them in the Plan, unless this Agreement provides, or the context requires, otherwise.

  

159

  

12.           Compliance with Section 409A of the Internal Revenue Code.

	
  

	
(a)

	
It is intended that any right or benefit which is provided pursuant to or in connection with this Award which is considered to be nonqualified deferred compensation subject to Section 409A (“Section 409A”) of the Internal Revenue Code (a “409A benefit”) shall be provided and paid in a manner, and at such time (i.e., at the applicable payment event described herein if a Section 409A payment event or otherwise at the first Section 409A payment event thereafter consisting of a fixed time (here, the 2-1/2 month period from <<vesting determination period>> for cash dividends on the Award Shares and for Achievement Shares), a Section 409A disability, a Section 409A separation from service (as described below), or a Section 409A change with respect to the Participant in the ownership or effective control of the Company or in the ownership of a substantial portion of its assets of the Company and including, in the discretion of the Committee or its delegate, any applicable Section 409A de minimis limited cashout payment permitted under Treasury Reg. Section 1.409A-3(j)(4)(v)) and in such form, as complies with the applicable requirements of Section 409A to avoid the unfavorable tax consequences provided therein for non-compliance.  Consequently, this Agreement is intended to be administered, interpreted and construed in accordance with the applicable requirements of Section 409A.  Notwithstanding the foregoing, the Participant and his or her successor in interest shall be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on the Participant or his or her successor in interest in connection with this Agreement (including any taxes and penalties under Section 409A); and neither the Company nor any of its affiliates shall have any obligation to indemnify or otherwise hold the Participant or his or her successor in interest harmless from any or all of such taxes or penalties.

	
  

	
(b)

	
Except as permitted under Section 409A, any 409A benefit payable to the Participant or for his or her benefit with respect to the Award may not be reduced by, or offset against, any amount owing by the Participant to the Company or any of its affiliates.

	
  

	
(c)

	
To the extent that entitlement to payment of any 409A benefit occurs due to termination or cessation of employment, termination or cessation of employment shall be read to mean “separation from service” (within the meaning of Section 409A and as applicable to the Company and its affiliates).  Where entitlement to payment occurs by reason of such termination or cessation of employment and the Participant is a “specified employee” (within the meaning of Section 409A, as applicable to the Company and its affiliates and using the identification methodology selected by the Company from time to time in accordance with Section 409A) on the date of his or her “separation from service”, then payment of such 409A benefit shall be delayed (without interest) until the first business day after the end of the six month delay period required under Section 409A or, if earlier, after the Participant’s death.  In determining separation from service, separation from service is determined based on the “Separation from Service” definition in the Trustmark Corporation Deferred Compensation Plan (as in effect on <<date>>), which provides, in part, that in determining separation from service as an employee, separation from service occurs when it is reasonably anticipated that no further services would be performed after that date or that the level of services the Participant would perform after that date (whether as an employee or independent contractor) would permanently decrease to less than 50% of the average level of bona fide services performed over the immediately preceding <<months>> month period.

13.           Clawback.  The Participant agrees that the Award is subject to clawback by the Company as required by applicable federal law and on such basis as the Board of Directors of the Company determines.

To evidence its grant of the Award and the terms, conditions and restrictions thereof, the Company has signed this Agreement as of the Award Date. This Agreement shall not become legally binding unless the Participant has accepted this Agreement by the Agreement due date noted with respect to the Award on the Participant’s summary page for performance stock awards on the internet hosting website designated by the Company (or such later date as the Chairman of the Committee may accept) pursuant to such means as the Committee may permit.  If the Participant fails to timely accept this Agreement, the Award shall be cancelled and forfeited ab initio.

	  	
COMPANY:

	  	  
	  	
TRUSTMARK CORPORATION

	  	  	  
	  	
By:

	  
	  	
Its:

	  

  

160

  

Attachment A

Listing of Peer Group

<<list of peer financial institutions>>Exhibit 10.1

 

FIRST AMENDMENT TO SECOND AMENDED AND
RESTATED 

CREDIT AGREEMENT 

 

FIRST AMENDMENT TO SECOND
AMENDED AND RESTATED CREDIT AGREEMENT dated as of February 22, 2013 (this “Amendment”) among Campus Crest
Communities Operating Partnership, LP, a Delaware limited partnership (the “Borrower”), Campus Crest
Communities, Inc., a Maryland corporation (the “Parent Guarantor”), the entities listed on the signature
pages hereof as the subsidiary guarantors (together with any Additional Guarantors (as defined in the Credit Agreement (as hereinafter
defined)) acceding thereto pursuant to Section 5.01(j) or 7.05 of the Credit Agreement, as amended hereby, the “Subsidiary
Guarantors” and, together with the Parent Guarantor, the “Guarantors”), the banks, financial
institutions and other institutional lenders listed on the signature pages hereof as the initial lenders (the “Initial
Lenders”), the Swing Line Bank (as defined in the Credit Agreement), CITIBANK, N.A. (“Citibank”),
as the initial issuer of Letters of Credit (as defined in the Credit Agreement) (the “Initial Issuing Bank”),
and CITIBANK, as administrative agent (together with any successor administrative agent appointed pursuant to Article VIII,
the “Administrative Agent”) for the Lender Parties (as defined in the Credit Agreement).

 

R E C I T A L S:

 

WHEREAS, the Borrower,
the Guarantors, the Initial Lenders, Citibank, the Initial Issuing Bank, and the Administrative Agent entered into that certain
Second Amended and Restated Credit Agreement dated as of January 8, 2013 (the “Credit Agreement”; capitalized
terms used but not defined herein shall have the respective meanings ascribed to such terms in the Credit Agreement, as amended
hereby).

 

WHEREAS, Borrower and
Guarantors propose to make the Investment described on Schedule 1 attached hereto (such Investment, the “Copper Beech
Investment”).

 

WHEREAS, the parties
wish to amend the Credit Agreement as more specifically set forth herein.

 

NOW, THEREFORE, in consideration
of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties
hereto hereby covenant, agree, represent and warrant that the Credit Agreement is hereby amended as follows, effective as of the
date hereof:

 

Section
1.               
Amendments to Credit Agreement. Notwithstanding anything to the contrary in the Credit Agreement:

 

1.1             For
so long as the Copper Beech Investment constitutes an Investment in a Joint Venture of a Loan Party under the Credit Agreement,
then for purposes of the calculation of the negative covenants set forth in Section 5.02(f)(iv)(y) and Section 5.02(f)(iv)(z)(B),
of the Credit Agreement, the Copper Beech Investment shall be excluded.

  

 

First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
 

1.2             In
the event the Copper Beech Investment becomes an Investment in a Subsidiary that is not wholly-owned by a Loan Party, then such
Investment shall be permitted under Section 5.02(f) of the Credit Agreement.

 

1.3             For
purposes of the calculation of the financial covenant set forth in Section 5.04(a)(iii) of the Credit Agreement, the Copper Beech
Investment shall be excluded.

 

1.4             For
purposes of the calculation of the negative covenants set forth in Section 5.02(f)(iv)(y) and Section 5.02(f)(iv)(z)(C), Investments
shall include the “Partnership Loan” (as such term is defined in Schedule 1 attached hereto).

 

1.5             Section
5.03(d)(i) of the Credit Agreement is hereby amended and restated as follows:

 

“As
soon as available and in any event within 45 days after the end of each calendar quarter (or, with respect to the calendar quarter
that corresponds to the end of each Fiscal Year, 90 days after the end of such calendar quarter)”.

 

Section
2.               
Omnibus Amendment to Loan Documents.

 

2.1             Any references to the Credit Agreement in the Loan Documents shall hereinafter refer to the Credit Agreement as modified
by this Amendment.

 

Section
3.               
Covenants, Representations and Warranties of Loan Parties.

 

3.1             Each Loan Party hereby reaffirms all terms and covenants made in the Loan Documents as amended hereby and acknowledges
that this Amendment is a Loan Document.

 

3.2             Each Loan Party hereby represents and warrants that this Amendment has been duly executed and delivered by each Loan
Party and general partner, manager or managing member (if any) of each Loan Party. This Amendment is the legal, valid and binding
obligation of each Loan Party and general partner, manager or managing member (if any) of each Loan Party, enforceable against
such Loan Party, general partner, manager or managing member, as the case may be, in accordance with its terms.

 

3.3             Each
Loan Party hereby represents and warrants that as of the date hereof, (x) the representations and warranties contained in each
Loan Document are true and correct in all material respects (except to the extent that such representations and warranties specifically
refer to an earlier date, in which case they are true and correct as of such earlier date) and (y) to the best of its knowledge,
no Event of Default has occurred and is continuing, and no Event of Default will occur as a result of the execution, delivery
and performance by the Loan Parties of this Amendment.

 

 

First Amendment to Second A&R Credit Agreement

    	2

    	 

    
 

Section
4.               
Effect Upon Loan Documents.

 

4.1             Each
Loan Party hereby ratifies and confirms as of the date hereof that all of the terms, covenants, indemnifications and provisions
of the Credit Agreement and the other Loan Documents are and shall remain in full force and effect without change except as otherwise
expressly and specifically modified by this Amendment.

 

4.2             The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or
remedy of the Initial Lenders, the Administrative Agent, Citibank or the Initial Issuing Bank under the Loan Documents, or any
other document, instrument or agreement executed and/or delivered in connection therewith.

 

4.3             Each Loan Party acknowledges that nothing contained herein shall be construed to relieve any Loan Party from its
obligations under any Loan Document except as otherwise expressly and specifically modified by this Amendment.

 

Section
5.               
Ratification of Guarantors. Each Guarantor hereby:

 

		1.	ratifies, confirms and reaffirms all of the terms, conditions and obligations set forth in the
Guaranty;

 

		2.	consents to the terms and provisions of this Amendment;

 

		3.	acknowledges and agrees that the execution and delivery of this Amendment and the terms and provisions
contained therein shall not in any way affect, impair, reduce or terminate Guarantor’s liability or obligations under the
Guaranty;

 

		4.	acknowledges and agrees that the Guaranty is and shall remain in full force and effect notwithstanding
the execution and delivery of this Amendment on the date hereof;

 

		5.	represents and warrants that there has been no material adverse change in the financial condition
of Guarantor since the Closing Date; and

 

		6.	acknowledges and agrees that the Initial Lenders, the Administrative Agent, Citibank and the Initial
Issuing Bank are specifically relying upon the reaffirmations, consents, acknowledgements, agreements, representations and warranties
contained herein in agreeing to enter into this Amendment.

 

Section
6.               No Oral Modification. This Amendment may not be modified, amended, waived, changed or terminated orally,
but only by an agreement in writing signed by the party against whom the enforcement of the modification, amendment, waiver, change
or termination is sought.

 

Section
7.               
Binding Effect. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

 

 

First Amendment to Second A&R Credit Agreement

    	3

    	 

    
 

Section
8.               
Counterparts. This Amendment may be executed in any number of duplicate originals and each such duplicate
original shall be deemed to constitute but one and the same instrument.

 

Section
9.               
Invalidity. If any term, covenant or condition of this Amendment shall be held to be invalid, illegal or unenforceable
in any respect, this Amendment shall be construed without such provision.

 

Section
10.              Governing
Law. This Amendment shall be governed by and construed in accordance with Section 9.13 of the Credit Agreement as amended hereby.

 

Section
11.             No
Novation. This Amendment does not, and shall not be construed to, constitute the creation of a new indebtedness or the satisfaction,
discharge or extinguishment of the debt secured by the Loan Documents, nor does it in any way affect or impair the lien of the
Loan Documents. No action undertaken pursuant to this Amendment shall constitute a waiver or a novation of Lender’s rights
under the Loan Documents.

 

Section
12.             Costs.
Borrower hereby acknowledges and agrees that it shall be responsible for the payment of any out-of-pocket costs, fees and expenses
of Citibank incurred in connection with the preparation, negotiation, execution or delivery of this Amendment (including, without
limitation, the reasonable fees and disbursements of counsel to Citibank).

 

 

 

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appear on following pages]

 

 

First Amendment to Second A&R Credit Agreement

    	4

    	 

    
  

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be duly executed by their duly authorized representatives, all as of the day and year first above written.

 

   

	 	BORROWER:	 
	 	 	 
	 	CAMPUS CREST COMMUNITIES OPERATING PARTNERSHIP, LP	 
	 	 	 	 	 	 
	 	By:	Campus Crest Communities GP, LLC,	 
	 	 	Its General Partner	 
	 	 	 	 	 	 
	 	 	By:	Campus Crest Communities,
Inc.	 
	 	 	 	Its Sole Member	 
	 	 	 	 	 	 
	 	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
		 	 	 	Title: Chief Financial Officer	 

  

 

  

	 	PARENT GUARANTOR:	 
	 	 	 
	 	CAMPUS CREST COMMUNITIES, INC.	 
	 	 	 	 
	 	By:	 /s/ Donald L. Bobbitt, Jr.	 
	 	 	Name: Donald L. Bobbitt, Jr. 
	 
	 	 	Title: Chief Financial Officer	 

 

 

  

	 	SUBSIDIARY GUARANTORS:	 
	 	 	 
	 	CAMPUS CREST AT STEPHENVILLE, LP	 
	 	 	 	 	 
	 	By:	Campus Crest GP II, LLC	 
	 	 	Its General Partner	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

  

 

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First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
  

	 	CAMPUS CREST  AT LUBBOCK, LP	 
	 	 	 	 	 
	 	By:	Campus Crest GP II, LLC	 
	 	 	Its General Partner	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

 

	 	CAMPUS CREST AT WACO, LP	 
	 	 	 	 	 
	 	By:	Campus Crest GP II, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

  

	 	CAMPUS CREST AT WICHITA FALLS, LP	 
	 	 	 	 	 
	 	By:	Campus Crest GP II, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

 

	 	CAMPUS CREST AT SAN MARCOS, LP	 
	 	 	 	 	 
	 	By:	Campus Crest GP II, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

 

	 	CAMPUS CREST AT JACKSONVILLE, AL, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

 

 

 

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First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
 

	 	CAMPUS CREST  AT ABILENE, LP	 
	 	 	 	 	 
	 	By:	Campus Crest GP II, LLC	 
	 	 	Its General Partner	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

 

	 	CAMPUS CREST AT CHENEY, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

  

	 	CAMPUS CREST AT JONESBORO, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

 

	 	CAMPUS CREST AT TROY, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

 

 

 

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First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
  

	 	CAMPUS CREST  AT MURFREESBORO, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

 

	 	CAMPUS CREST AT WICHITA, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

  

	 	CAMPUS CREST STEPHENVILLE LESSOR, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

 

	 	CAMPUS CREST WACO LESSOR, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

 

 

 

  

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First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
 

	 	CAMPUS CREST  WICHITA FALLS LESSOR, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

 

	 	CAMPUS CREST CHENEY LESSOR, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

  

	 	CAMPUS CREST JONESBORO LESSOR, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

 

	 	CAMPUS CREST TROY LESSOR, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

 

 

 

 

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First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
 

	 	CAMPUS CREST  MURFREESBORO LESSOR, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

 

	 	CAMPUS CREST WICHITA LESSOR, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

  

	 	CAMPUS CREST AT MOBILE PHASE II, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

 

	 	CAMPUS CREST AT MOBILE, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

 

 

  

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First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
  

	 	CAMPUS CREST AT AMES, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

 

	 	CAMPUS CREST AT FORT WAYNE, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

  

	 	CAMPUS CREST AT HUNTSVILLE I, LP	 
	 	 	 	 	 	 
	 	By:	Campus Crest at Huntsville I GP, LLC	 
	 	 	Its General Partner	 
	 	 	 	 	 	 
	 	 	By:	Campus Crest Properties, LLC	 
	 	 	 	Its Manager	 
	 	 	 	 	 	 
	 	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
		 	 	 	Title: Manager	 

  

	 	CAMPUS CREST AT AT MOSCOW, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
		 	 	Title: Manager	 

 

 

 

 

 

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First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
 

	 	CAMPUS CREST AT VALDOSTA, LLC	 
	 	 	 	 	 
	 	By:	Campus Crest Properties, LLC	 
	 	 	Its Manager	 
	 	 	 	 	 
	 	 	By:	/s/ Donald L. Bobbitt, Jr.	 
	 	 	 	Name:  Donald L. Bobbitt, Jr.	 
	 	 	 	Title: Manager	 

 

 

 

 

 

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First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
  

	 	SWING LINE BANK: 	 
	 	 	 
	 	CITIBANK, N.A.	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 /s/ Michael Chlopak	 
	 	 	Name: Michael Chlopak	 
	 	 	Title: Vice President	 

 

 

 

	 	INITIAL ISSUING BANK:	 
	 	 	 
	 	CITIBANK, N.A. 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 /s/ Michael Chlopak	 
	 	 	Name: Michael Chlopak	 
	 	 	Title: Vice President	 

 

 

 

	 	ADMINISTRATIVE AGENT:	 
	 	 	 
	 	CITIBANK, N.A. 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 /s/ Michael Chlopak	 
	 	 	Name: Michael Chlopak	 
	 	 	Title: Vice President	 

 

 

 

 

 

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First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
 

	 	INITIAL LENDERS:	 
	 	 	 
	 	BARCLAYS BANK PLC	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 /s/ Craig J. Malloy	 
	 	 	Name: Craig J. Malloy	 
	 	 	Title: Director	 

 

 

 

 

 

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First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
 

	 	CITIBANK, N.A.	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 /s/ Michael Chlopak	 
	 	 	Name: Michael Chlopak	 
	 	 	Title: Vice President	 

 

 

 

 

 

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First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
  

	 	RAYMOND JAMES BANK, N.A.	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 /s/ James M. Armstrong	 
	 	 	Name: James M. Armstrong	 
	 	 	Title: Senior Vice President	 

 

 

 

 

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First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
 

	 	ROYAL BANK OF CANADA	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 /s/ Joshua Freedman	 
	 	 	Name: Joshua Freedman	 
	 	 	Title: Authorized Signatory	 

 

 

 

  

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First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
 

	 	BANK OF AMERICA, N.A.	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 /s/ Kurt L. Mathison	 
	 	 	Name: Kurt L. Mathison	 
	 	 	Title: Vice President	 

 

 

 

  

 

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First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
 

	 	BANK OF THE WEST,	 
	 	a California banking corporation	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	  /s/ Lynn Foster	 
	 	 	Name:  Lynn Foster	 
	 	 	Title: Vice President	 

 

	 		 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 /s/ Chuck Weerasoorlya	 
	 	 	Name: Chuck Weerasoorlya	 
	 	 	Title: Senior Vice President	 

 

 

 

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First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
 

	 	COMPASS BANK	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 /s/ S. Kent Gorman	 
	 	 	Name: S. Kent Gorman	 
	 	 	Title: Senior Vice President	 

 

 

 

 

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	 	CAPITAL ONE, NATIONAL ASSOCIATION	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	 	Name: 	 
	 	 	Title: 	 

 

 

 

 

  

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First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
 

	 	NATIONAL BANK OF ARIZONA,	 
	 	a national banking association	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	 	Name: 	 
	 	 	Title: 	 

 

 

 

  

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First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
 

	 	PNC BANK, NATIONAL ASSOCIATION	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Andrew T. White	 
	 	 	Name: Andrew T. White	 
	 	 	Title: Senior Vice President	 

 

 

 

 

 

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First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
 

	 	CITIZENS BANK OF PENNSYLVANIA	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Charles Cook	 
	 	 	Name: Charles Cook	 
	 	 	Title: Senior Vice President	 

 

 

First Amendment to Second A&R Credit Agreement

    	 

    	 	

    
 

Schedule I

 

COPPER BEECH INVESTMENT

 

The Borrower is pursuing the acquisition
of a 48% interest in Copper Beech Townhome Communities (“Copper Beech” or “CBTC”). The Borrower will invest
$264 million in CBTC, structured as a $232 million participating preferred with 5.6% preferred dividend to obtain the 48% interest
and a $32 million 2-year loan (with an 8.5% coupon) (the “Partnership Loan”) secured by a pool of unencumbered properties
which will allow the buyout of several minority owners’ stakes. The transaction will be structured with the option, but not
the obligation, for the Borrower to purchase the remaining equity in CBTC within 3 years. CBTC will manage the day-to-day operations
until the Borrower obtains a 75% ownership interest; however, major decisions will be subject to unanimous approval of the CBTC
board, which will have equal Borrower and CBTC representation. The transaction will be leverage-neutral for the Borrower with $107
million of pre-payable secured debt repaid at closing, and over the next 3 years, the secured balance will continue to be reduced
by amortization and pay-downs. Projected NTM NOI implies a nominal cap rate of ~6.7% for the acquisition. The transaction sources
and uses are below:

 

 

 

 

 

 

 

 

First Amendment to Second A&R Credit Agreement

    	Sched. I-1

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