Document:

Exhibit 4.2

  
 Exhibit 4.2

  
 REGISTRATION RIGHTS AGREEMENT 
  
 THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”)
is made and entered into as of June 4, 2004, by and among JER INVESTORS TRUST INC., a Maryland corporation (the “Company”), JER COMMERCIAL DEBT ADVISORS LLC, a Delaware limited liability company (the
“Manager”), FRIEDMAN, BILLINGS, RAMSEY AND CO., INC., a Delaware corporation (“FBR”), and the HOLDERS (as defined below). 
  
 THE PARTIES ENTER THIS AGREEMENT on the basis of the following facts, understandings and intentions: 
  
 A. The Company and FBR entered into that certain Purchase/Placement
Agreement, dated as of May 27, 2004 (the “Purchase Agreement”), in connection with the offering and sale (the “Offering”) of 11,500,000 shares of common stock, par value $0.01 per share, of the Company
(“Common Stock”), including up to 1,500,000 shares of Common Stock that may be issued pursuant to an additional allotment option granted to FBR. 
  
 B. In order to induce the investors who are purchasing the Common Stock in the Offering to purchase such Common Stock and
FBR to enter into the Purchase Agreement, the Company has agreed to provide the registration rights provided for in this Agreement for the Holders and such investors have, by separate instrument, agreed to be bound by the terms and provisions
hereof. 
  
 C. The execution and delivery of this Agreement is a
condition to the closing of the transactions contemplated by the Purchase Agreement. 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants of the parties hereto, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows: 
  
 1. Definitions. As used in this
Agreement, the following terms have the following meanings: 
  
 Agreement: As defined in the preamble hereof. 
  
 Affiliate: As to any specified Person, (i) any Person that directly, or indirectly through one or more intermediaries or relationships, controls or is controlled by, or is under common control with, the specified Person, (ii) any
executive officer, director, trustee, managing member, general partner or Person in a similar capacity of the specified Person and (iii) any legal entity for which the specified Person acts as an executive officer, director, trustee, managing
member, general partner or Person in a similar capacity. For purposes of this definition, “control” (including the correlative meanings of the terms “controlled by” and “under common control with”), as used with respect
to any Person, shall mean the possession, directly, or indirectly 

  

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through one or more intermediaries or relationships, of the power to direct or cause the direction of the management and policies of such Person, whether by
contract, through the ownership of voting securities, partnership or member interests or other equity interests or otherwise. An indirect relationship includes, but is not limited to, circumstances in which a Person’s spouse, children, parents,
siblings or mother-, father-, sister- or brother-in-law is or has been associated with a Person. 
  
 Business Day: With respect to any act to be performed hereunder, each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which
banking institutions in New York, New York are authorized or obligated by applicable law, regulation or executive order, to close. 
  
 Closing Time: June 4, 2004, or such other time or such other date as FBR and the Company may agree in writing. 
  
 Commission: The Securities and Exchange Commission. 
  
 Common Stock: As defined in recital A hereof. 
  
 Company: As defined in the preamble hereof, and any successor thereto.

  
 Controlling Person. As defined in Section 6(a)
hereof. 
  
 End of Suspension Notice: As defined in
Section 5(b) hereof. 
  
 Exchange Act: The
Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated by the Commission thereunder. 
  
 FBR: As defined in the preamble hereof, and any successor thereto. 
  
 Holder: Each record owner of any Registrable Shares from time to time. 
  
 Indemnified Party: As defined in Section 6(c) hereof.

  
 Indemnifying Party: As defined in Section 6(c)
hereof. 
  
 IPO Registration Statement: As defined
in Section 2(a) hereof. 
  
 Liabilities: As defined
in Section 6(a) hereof. 
  
 NASD: The National
Association of Securities Dealers, Inc. 
  
 Offering: As
defined in recital A hereof. 
  
 Person: An individual,
partnership, corporation, trust, limited liability company, unincorporated organization, government or agency or political subdivision thereof, or any other legal entity. 
  

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 Proceeding: An action (including a class action), claim, suit, demand, arbitration or other
proceeding (including without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or, to the knowledge of the Person subject thereto, threatened. 
  
 Prospectus: The prospectus included in any Registration Statement, including any preliminary prospectus, and all
other amendments and supplements to any such prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference, if any, in such prospectus. 
  
 Purchase Agreement: As defined in recital A hereof, as amended from
time to time in accordance with the terms thereof. 
  
 Purchaser Indemnitee: As defined in Section 6(a) hereof. 
  
 Registrable Shares: Each of the Shares upon original issuance thereof and at all times subsequent thereto, and any Common Stock or other securities issued in respect of the Shares by reason of, or in connection
with, any stock dividend, stock distribution, stock split, or similar issuance, including upon the transfer thereof by the original holder or any subsequent holder, until, in the case of any such Shares, the earliest to occur of: 
  
 (i) the date on which all Registrable Shares have been sold
pursuant to a Registration Statement or sold, transferred or otherwise disposed of pursuant to Rule 144; 
  
 (ii) the date on which all Registrable Shares not held by Affiliates of the Company are eligible for sale without registration under the
Securities Act pursuant to subparagraph (k) of Rule 144; or 
  
 (iii) the second anniversary of the initial effective date of the Registration Statement. 
  
 Registration Expenses: Any and all expenses incident to the performance of or compliance with this Agreement, including, without limitation: (i)
all Commission, securities exchange, NASD or other registration, listing, inclusion and filing fees, (ii) all fees and expenses incurred in connection with compliance with international, federal or state securities or blue sky laws (including,
without limitation, any registration, listing and filing fees and reasonable fees and disbursements of counsel in connection with blue sky qualification of any of the Registrable Shares and the preparation of a blue sky memorandum and compliance
with the rules of the NASD), (iii) all expenses of any Persons in preparing or assisting in preparing, word processing, duplicating, printing, delivering and distributing any Registration Statement, any Prospectus, any amendments or supplements
thereto, any underwriting agreements, agreements among underwriters, securities sales agreements, certificates and any other documents relating to the performance under and compliance with this Agreement, (iv) all fees and expenses incurred in
connection with the listing or inclusion of any of the Registrable Shares on any securities exchange or national quotation system pursuant to Section 4(n) of this Agreement or otherwise, (v) the fees and disbursements of counsel for the Company and
of the independent public accountants of the Company (including, without limitation, the expenses of any special audit and “cold comfort” letters required by or incident to such performance), and the reasonable fees and disbursements of
one counsel and one accounting firm (as selected by FBR) for the selling 

  

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Holders to review any Registration Statement, and (vi) any fees and disbursements customarily paid by issuers in connection with issues and sales of
securities (including the fees and expenses of any experts retained by the Company in connection with any Registration Statement), provided, however, that Registration Expenses shall exclude brokers’ or underwriters’ discounts and
commissions and transfer taxes, if any, relating to the sale or disposition of Registrable Shares by a Holder and the fees and disbursements of any counsel to or accounting firm of the Holders other than as provided for in subparagraph (v) above.

  
 Registration Statement: Any Shelf Registration
Statement or the IPO Registration Statement (that covers the resale of any Registrable Shares), including 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, if any, in such registration statement. 
  
 Rule 144: Rule 144 promulgated by the Commission 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 Commission as a replacement thereto having substantially the same effect as such rule. 
  
 Rule 144A: Rule 144A promulgated by the Commission 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 Commission as a replacement thereto having substantially the same effect as such rule. 
  
 Rule 158: Rule 158 promulgated by the Commission 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 Commission as a replacement thereto having substantially the same effect as such rule. 
  
 Rule 415: Rule 415 promulgated by the Commission 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 Commission as a replacement thereto having substantially the same effect as such rule. 
  
 Rule 424: Rule 424 promulgated by the Commission 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 Commission as a replacement thereto having substantially the same effect as such rule. 
  
 Securities Act: The Securities Act of 1933, as amended, and the rules and regulations promulgated by the Commission thereunder. 
  
 Shares: As defined in the Purchase Agreement. 
  
 Shelf Registration Statement: As defined in Section 2 hereof.

  
 Suspension Event: As defined in Section 5(b) hereof.

  
 Suspension Notice: As defined in Section 5(b) hereof.

  
 Underwritten Offering: A sale of securities of the
Company to an underwriter or underwriters for reoffering to the public. 
  

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 2. Registration Rights. 
  

(a) General. As set forth in Section 4 hereof and in accordance therewith, the Company agrees to file with the Commission as soon as
practicable, but in no event later than nine (9) months from the date hereof, and to use its commercially reasonable efforts to cause to be declared effective by the Commission as promptly as practicable following such filing, either (i) a
registration statement on Form S-11 or such other form under the Securities Act then available to the Company providing for the initial public offering of shares of Common Stock, which registration statement will provide for the resale by the
Holders of any and all Registrable Shares (subject to Section 2(b) hereof) (including 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, if any, in such registration statement, the “IPO Registration Statement”) or (ii) subject to Section 2(c) hereof, a shelf registration statement on Form S-11 or
such other form under the Securities Act then available to the Company providing for the resale pursuant to Rule 415 from time to time by the Holders of any and all Registrable Shares (including the Prospectus, amendments and supplements to such
shelf 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, if any, in such shelf registration statement, the
“Shelf Registration Statement”). Such commercially reasonable efforts shall include, without limitation, responding to any comments issued by the staff of the Commission with respect to any Registration Statement and filing any related
amendment to such Registration Statement as promptly as practicable after receipt of such comments. 
  
 (b) IPO Registration. If the Company proposes to file an IPO Registration Statement, the Company will notify, in writing, each Holder of the
proposed filing and afford each Holder an opportunity to include in such IPO Registration Statement all or any part of the Registrable Shares then held by such Holder. Each Holder desiring to include in any such IPO Registration Statement all or
part of the Registrable Shares held by such Holder shall, within twenty (20) Business Days after receipt of the above-described written notice by the Company, so notify the Company in writing, and in such notice shall inform the Company of the
number of Registrable Shares such Holder wishes to include in such IPO Registration Statement. 
  
 (i) Right to Terminate or Delay IPO Registration. Subject to Section 10 hereof, the Company shall have the right to terminate or
withdraw any IPO Registration Statement referred to in this Section 2(b) prior to its effectiveness whether or not any Holder has elected to include Registrable Shares in such registration; provided, however, the Company must provide each
Holder that elected to include any Registrable Shares in such IPO Registration Statement prompt written notice of such termination. Furthermore, in the event the IPO Registration Statement is not declared effective by the Commission within ninety
(90) days following the initial filing of the IPO Registration Statement, the Company shall promptly provide a new written notice to all Holders giving them another opportunity to elect to include Registrable Shares in the pending IPO Registration
Statement. Each Holder receiving such notice shall have the same election rights afforded such Holder as described in clause (b) above. 
  
 (ii) Underwriting. The Company shall give written notice to the Holders who elected to be included in the IPO Registration
Statement of the managing underwriters for the 

  

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Underwritten Offering proposed under the IPO Registration Statement. The right of any such Holder’s Registrable Shares to be included in any IPO
Registration Statement pursuant to this Section 2(b) shall be conditioned upon such Holder’s participation in such Underwritten Offering and the inclusion of such Holder’s Registrable Shares in the Underwritten Offering to the extent
provided herein. All Holders proposing to distribute their Registrable Shares through such Underwritten Offering shall enter into an underwriting agreement in customary form with the managing underwriters selected by the Company (consistent with its
contractual obligations) for such underwriting and complete and execute, as reasonably requested as to scope and form, any questionnaires, powers of attorney, indemnities, lock-up agreements, securities escrow agreements and other documents
reasonably required under the terms of such underwriting, and furnish to the Company such information in writing as the Company may reasonably request for inclusion in the IPO Registration Statement; provided, however, that no Holder shall be
required to make any representations or warranties to, or agreements (including indemnities) with, the Company or the underwriters other than representations, warranties or agreements (including indemnities) as are customary and reasonably requested
by the underwriters with the understanding that the foregoing shall be several, not joint and several, and no such agreement (including indemnities) shall require any Holder to be liable for an amount in excess of the net proceeds received by such
Holder through such Underwritten Offering. Notwithstanding any other provision of this Agreement, if the managing underwriters determine in their sole discretion that marketing factors require a limitation on the number of shares to be included,
then the managing underwriters may exclude shares (including Registrable Shares) from the IPO Registration Statement and the Underwritten Offering and any Shares included in the IPO Registration Statement and the Underwritten Offering shall be
allocated, first, to the Company, and second, to each of the Holders requesting inclusion of their Registrable Shares in such IPO Registration Statement on a pro rata basis based on the total number of Registrable Shares then
requested for inclusion by each such Holder. If any Holder disapproves of the terms of any Underwritten Offering that is undertaken in compliance with the terms hereof, such Holder may elect to withdraw therefrom by written notice to the Company and
the underwriter, delivered at least five (5) Business Days prior to the effective date of the IPO Registration Statement. Any Registrable Shares excluded or withdrawn from such Underwritten Offering shall be excluded and withdrawn from the IPO
Registration Statement. 
  
 (iii) Hold-Back
Agreement. By electing to include Registrable Shares in the IPO Registration Statement, if any, the Holder shall be deemed to have agreed not to effect any sale or distribution of securities of the Company of the same or similar class or classes
of the securities included in the Registration Statement or any securities convertible into or exchangeable or exercisable for such securities, including a sale pursuant to Rule 144 or Rule 144A under the Securities Act, during such periods as
reasonably requested by the managing underwriter (but in no event for a period longer than thirty (30) days prior to, and ninety (90) days following, the effective date of the IPO Registration Statement provided each of the executive officers and
directors of the Company that hold shares of Common Stock of the Company or securities convertible into or exchangeable or exercisable for shares of Common Stock of the Company are subject to the same restriction for the entire time period required
of the Holders hereunder), if an Underwritten Offering. 
  
 (iv) Registrable Shares Not Sold Under IPO Registration Statement. If (a) the Company terminates or withdraws the IPO Registration Statement prior to its effectiveness or the 

  

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distribution of all Registrable Securities, if any, registered thereunder, (b) the underwriters exercise their right pursuant to Section 2(b)(ii) of this
Agreement to exclude any Registrable Shares from the IPO Registration Statement, (c) any Holder elects to withdraw or not to include any Registrable Shares in the IPO Registration Statement, or (d) any Registrable Shares are otherwise not registered
under and distributed pursuant to the IPO Registration Statement, then the Company shall file a Shelf Registration Statement relating to any Registrable Shares not registered under and distributed pursuant to an IPO Registration Statement as soon as
practicable, but in no event later than (1) in the case of the withdrawal or abandonment of the offering pursuant to the IPO Registration Statement, the date which is thirty (30) days after the earlier of the withdrawal or abandonment of the
offering pursuant to the IPO Registration Statement or (2) the date ninety (90) days after the consummation of the offering pursuant to the IPO Registration Statement. 
  
 (c) Shelf Registration. If the Company elects to file a Shelf Registration Statement or is otherwise required to file
a Shelf Registration Statement pursuant to this Section 2(b), it shall notify each Holder of the proposed filing and afford each Holder an opportunity to include in such Shelf Registration Statement all or any part of the Registrable Shares then
held by such Holder. Each Holder desiring to include in any such Shelf Registration Statement all or part of the Registrable Shares held by such Holder shall, within twenty (20) days after receipt of the above-described notice from the Company, so
notify the Company of the number of Registrable Shares such Holder wishes to include in such Shelf Registration Statement and complete, sign and return the selling stockholder questionnaire included with the notice. The Company shall use its
commercially reasonable efforts to cause the Shelf Registration Statement to be declared effective by the Commission as promptly as practicable following the filing of the Shelf Registration Statement. Any Shelf Registration Statement shall provide
for the resale from time of time, and pursuant to any method or combination of methods legally available (including, without limitation, an Underwritten Offering, a direct sale to purchasers, a sale through brokers or agents, or a sale over the
internet) by the Holders of any and all Registrable Shares. 
  
 (d) Expenses. The Company shall pay all Registration Expenses in connection with the registration of the Registrable Shares pursuant to this Agreement. Each Holder participating in a registration pursuant to this Section 2 shall bear
such Holder’s proportionate share (based on the total number of Registrable Shares sold in such registration) of all discounts and commissions payable to underwriters or brokers and all transfer taxes in connection with a registration of
Registrable Shares pursuant to this Agreement and any other expense of the Holders not allocated to the Company pursuant to this Agreement relating to the sale or disposition of such Holder’s Registrable Shares pursuant to any Registration
Statement. 
  
 3. Rules 144 and 144A Reporting. 
  
 With a view to making available the benefits of certain rules and regulations
of the Commission that may permit the sale of the Registrable Shares to the public without registration, the Company agrees to, until such date as no Holder owns any Registrable Shares: 
  
 (a) make and keep public information available, as those terms are understood and defined in Rule 144(c) under the
Securities Act, at all times after the effective date of the first 

  

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registration under the Securities Act filed by the Company for an offering of its securities to the general public; 
  
 (b) use its best efforts to timely file with the Commission all reports and
other documents required to be filed by the Company under the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements); 
  
 (c) if the Company is not required to file reports and other documents under the Securities Act and the Exchange Act, make
available other information as required by, and so long as necessary to permit sales of Registrable Shares pursuant to, Rule 144 and Rule 144A; and 
  
 (d) furnish to any Holder promptly upon request a written statement by the Company as to its compliance in all material respects with the reporting
requirements of Rule 144 (at any time after ninety (90) days after the effective date of the first Registration Statement filed by the Company for an offering of its securities to the general public) and of the Securities Act and the Exchange Act
(at any time after it has become subject to the reporting requirements of the Exchange Act), a copy of the most recent annual and quarterly report(s) of the Company, and such other reports, documents or shareholder communications of the Company, and
take such further actions consistent with this Section, as a Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing a Holder to sell any such Registrable Shares without registration. 
  
 4. Registration Procedures. 
  
 In connection with the obligations of the Company with respect to any
registration pursuant to this Agreement, the Company shall use its commercially reasonable efforts to effect or cause to be effected the registration of the Registrable Shares under the Securities Act to permit the public resale of such Registrable
Shares by the Holder or Holders in accordance with the Holders’ intended method or methods of resale and distribution, and the Company shall, without limitation: 
  
 (a) prepare and file with the Commission, as specified in this Agreement, a Registration Statement, which Registration
Statement shall comply as to form with the requirements of the applicable form and include all financial statements required by the Commission to be filed therewith, and use its commercially reasonable efforts to cause such Registration Statement to
become effective as promptly as practicable following such filing and to remain effective, subject to Section 5 hereof, until the earlier of (i) the date on which all Registrable Shares have been sold pursuant to a Registration Statement or sold,
transferred or otherwise disposed of pursuant to Rule 144, (ii) the date on which all Registrable Shares not held by Affiliates of the Company are eligible for sale without registration under the Securities Act pursuant to subparagraph (k) of Rule
144 or (iii) the second anniversary of the initial effective date of such Registration Statement (subject to extension as provided in Section 5(c) hereof); provided, however, that if the Company has an effective Registration Statement on Form
S-11 under the Securities Act and becomes eligible to use Form S-3 or such other short-form registration statement form under the Securities Act, the Company may, upon thirty (30) Business Days prior notice to all Holders of Registrable Shares,
register any Registrable Shares registered 

  

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but not yet distributed under the effective Registration Statement on such a short-form Registration Statement and, once the short-form Registration
Statement is declared effective, de-register such shares under the previous Registration Statement or transfer the filing fees from the previous Registration Statement (such transfer pursuant to Rule 429, if applicable) unless any Holder of
Registrable Shares registered under the initial Registration Statement notifies the Company within twenty (20) Business Days of receipt of the Company notice that such a registration under a new Registration Statement and de-registration of the
initial Registration Statement would interfere with its distribution of Registrable Shares already in progress; the Company shall furnish at a reasonable time prior to the filing thereof with the Commission, a copy of any Registration Statement and
each amendment or supplement, if any, to the Prospectus included therein (including any documents incorporated by reference therein) and shall use its best efforts to reflect in each such document, when so filed with the Commission, such comments as
FBR or such other representative of the Holders may reasonably propose; 
  
 (b) subject to Section 4(i) hereof, (i) prepare and file with the Commission such amendments and post-effective amendments to each such Registration Statement as may be necessary to keep such Registration Statement effective for the
period described in Section 4(a) hereof, (ii) cause each Prospectus contained therein to be supplemented by any required prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 or any similar rule that may be adopted
under the Securities Act, and (iii) comply with the provisions of the Securities Act with respect to the disposition of all securities covered by each Registration Statement during the applicable period in accordance with the intended method or
methods of distribution by the selling Holders thereof; 
  
 (c)
furnish to the Holders, without charge, as many copies of each Prospectus, including each preliminary Prospectus, and any amendment or supplement thereto and such other documents as such Holder may reasonably request, in order to facilitate the
public sale or other disposition of the Registrable Shares; the Company consents, subject to Section 5, to the use of such Prospectus, including each preliminary Prospectus, by the Holders in connection with the offering and sale of the
Registrable Shares covered by any such Prospectus; 
  
 (d) use its
commercially reasonable efforts to (i) register or qualify, or obtain exemption from registration or qualification for, all Registrable Shares by the time the applicable Registration Statement is declared effective by the Commission under all
applicable state securities or “blue sky” laws of such domestic United States jurisdictions as FBR or any Holder covered by a Registration Statement shall reasonably request in writing, (ii) keep each such registration or qualification or
exemption effective during the period such Registration Statement is required to be kept effective pursuant to Section 4(a) and (iii) do any and all other acts and things that may be reasonably necessary or advisable to enable such Holder to
consummate the disposition in each such jurisdiction of such Registrable Shares owned by such Holder; provided, however, that the Company shall not be required to (i) qualify generally to do business in any jurisdiction or to register as a
broker or dealer in such jurisdiction where it would not otherwise be required to qualify but for this Section 4(d), (ii) subject itself to taxation in any such jurisdiction, or (iii) submit to the general service of process in any such
jurisdiction; 
  
 (e) use its commercially reasonable efforts to
cause all Registrable Shares covered by such Registration Statement to be registered and approved by such other domestic state or local 

  

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governmental agencies or authorities in the United States, if any, as may be necessary to enable the Holders thereof to consummate the disposition of such
Registrable Shares; 
  
 (f) notify FBR and each Holder with
Registrable Shares covered by a Registration Statement promptly and, promptly confirm such advice in writing at the address determined in accordance with Section 10(c), (i) when such Registration Statement has become effective and when any
post-effective amendments thereto become effective or upon the filing of a supplement to any prospectus, (ii) of the issuance by the Commission or any state securities authority of any stop order suspending the effectiveness of such Registration
Statement or the initiation of any Proceedings for that purpose, (iii) of any request by the Commission or any other federal or state governmental authority for amendments or supplements to such Registration Statement or related Prospectus or for
additional information (such notice to be accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made), and (iv) of any reason, including, but not limited to, the happening of any event during the
period such Registration Statement is effective as a result of which such Registration Statement or the related Prospectus or any document incorporated by reference therein contains any untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary to make the statements therein not misleading (which information shall be accompanied by an instruction to suspend the use of the Registration Statement and the Prospectus until the requisite
changes have been made); 
  
 (g) during the period of time
referred to in Section 4(a) above, use its commercially reasonable efforts to avoid the issuance of, or if issued, to obtain the withdrawal of, any order enjoining or suspending the use or effectiveness of a Registration Statement or
suspending the qualification (or exemption from qualification) of any of the Registrable Shares for sale in any jurisdiction, as promptly as practicable; 
  
 (h) provide to FBR and its counsel within three (3) Business Days of receipt by the Company or its counsel, copies of any material correspondence (which
FBR may disclose to any other Holder) with or from the Commission or its staff with respect to a Registration Statement; and upon request, furnish to each requesting Holder with Registrable Shares covered by a Registration Statement, without charge,
at least one (1) conformed copy of such Registration Statement and any post-effective amendment or supplement thereto (without documents incorporated therein by reference or exhibits thereto, unless requested); 
  
 (i) except as provided in Section 5, upon the occurrence of any event
contemplated by Section 4(f)(iv) hereof, use its commercially reasonable efforts to promptly prepare a supplement or post-effective amendment to a Shelf Registration Statement or the related Prospectus or any document incorporated therein by
reference or file any other required document so that, as thereafter delivered to the purchasers of the Registrable Shares, such Prospectus will not contain any untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and, upon request and without charge, promptly furnish to each requesting Holder a reasonable number of copies
of each such supplement or post-effective amendment; 
  

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 (j) if reasonably requested by the representative of the underwriters, if any, or any Holders of
Registrable Shares being sold in connection with an Underwritten Offering, (i) promptly incorporate in a prospectus supplement or post-effective amendment such material information as the representative of the underwriters, if any, or such Holders
indicate in writing relates to them or otherwise reasonably request in writing be included therein and (ii) make all required filings of such prospectus supplement or such post-effective amendment as soon as practicable after the Company has
received written notification of the matters to be incorporated in such prospectus supplement or post-effective amendment; 
  
 (k) in the case of an Underwritten Offering, use its commercially reasonable efforts to furnish or caused to be furnished to each Holder of Registrable
Shares covered by such Registration Statement and the underwriters a signed counterpart, addressed to each such Holder and the underwriters, of: (i) an opinion of counsel for the Company, dated the date of each closing under the underwriting
agreement, reasonably satisfactory to such Holder; and (ii) a “comfort” letter, dated the effective date of such Registration Statement and the date of each closing under the underwriting agreement, signed by the independent public
accountants who have certified the Company’s financial statements included in such Registration Statement, covering substantially the same matters with respect to such Registration Statement (and the Prospectus included therein) and with
respect to events subsequent to the date of such financial statements, as are customarily covered in accountants’ letters delivered to underwriters in underwritten public offerings of securities and such other financial matters as such Holder
and the underwriters may reasonably request and customarily obtained by underwriters in underwritten offerings; 
  
 (l) enter into customary agreements (including in the case of an Underwritten Offering, an underwriting agreement in customary form) and take all other
action in connection therewith in order to expedite or facilitate the distribution of the Registrable Shares included in such Registration Statement and, in the case of an Underwritten Offering, make representations, warranties and agreements
(including indemnities) to the Holders of Registrable Shares covered by such Registration Statement and to the underwriters in such form and scope as are customarily made by issuers to underwriters and Holders in underwritten offerings and confirm
the same in writing to the extent customary if and when requested; 
  
 (m) in connection with an Underwritten Offering, make available for inspection by one representative appointed by the Holders of a majority of the Registrable Shares and the representative of any underwriters participating in any
disposition pursuant to a Registration Statement and any counsel and accounting firm retained by the Holders and underwriters, respectively, all financial and other records, pertinent corporate documents and properties of the Company and cause the
respective officers, directors, employees and agents of the Company to supply all information reasonably requested by any such representatives, the representative of the underwriters, counsel thereto or accountants in connection with a Registration
Statement; provided, however, that such records, documents or information that the Company determines, in good faith, to be confidential and notifies such representative of the Holders, representative of the underwriters, counsel thereto or
accountants thereto are confidential shall not be disclosed by the representatives, representative of the underwriters, counsel thereto or accountants unless (i) the disclosure of such records, documents or information is necessary to avoid or
correct a misstatement or omission in a Registration Statement or Prospectus, (ii) the release of such 

  

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records, documents or information is ordered pursuant to a subpoena or other order from a court of competent jurisdiction, or (iii) such records, documents
or information have been generally made available to the public; provided further, that to the extent practicable, the foregoing inspection and information gathering shall be coordinated on behalf of the Holders and the other parties entitled
thereto by one counsel designated by and on behalf of the Holders and the other parties. 
  
 (n) use its commercially reasonable efforts to qualify for, and list or include all Registrable Shares on, the New York Stock Exchange or the Nasdaq National Market as soon as practicable if the Company meets the
criteria for listing on such exchange or market (including, without limitation, seeking to cure in the Company’s listing or inclusion application any deficiencies cited by the exchange or market) and thereafter use commercially reasonable
efforts to maintain such listing; 
  
 (o) prepare and timely file
all documents, reports and certifications required by the Securities Act and the Exchange Act at all times beginning from the date the Company is first subject to such filing, reporting or certification requirements through the date no Holders hold
Registrable Shares; 
  
 (p) provide a CUSIP number for all
Registrable Shares, not later than the effective date of the Registration Statement; 
  
 (q) (i) otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission and, as applicable, the New York Stock Exchange, Nasdaq National Market or other listing
standard, (ii) make generally available to its stockholders, as soon as reasonably practicable, earnings statements covering at least twelve (12) months that satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 (or any similar
rule promulgated under the Securities Act ) thereunder, no later than forty-five (45) days after the end of each fiscal year of the Company and (iii) delay filing any Registration Statement or Prospectus or amendment or supplement to such
Registration Statement or Prospectus to which the Holders of a majority of Registrable Shares covered by any Registration Statement shall have reasonably objected on the grounds that such Registration Statement or Prospectus or amendment or
supplement does not comply in all material respects with the requirements of the Securities Act, such Holders having been furnished with a copy thereof at least five (5) Business Days prior to the filing thereof, provided that the Company may file
such Registration Statement or Prospectus or amendment or supplement following such time as the Company shall have made a good faith effort to resolve any such issue with the objecting Holders and shall have advised the Holders in writing of its
reasonable belief that such filing complies with the requirements of the Securities Act; 
  
 (r) provide and cause to be maintained a registrar and transfer agent for all Registrable Shares covered by any Registration Statement from and after a date not later than the effective date of such Registration
Statement; 
  
 (s) in connection with any sale or transfer of the
Registrable Shares (whether or not pursuant to a Registration Statement) that will result in the security being delivered no longer being Registrable Shares, cooperate with the Holders and the representative of the underwriters, 

  

 12 

 
if any, to facilitate the timely preparation and delivery of certificates representing the Registrable Shares to be sold, which certificates shall not bear
any transfer restrictive legends (other than as required by the Company’s Charter) and to enable such Registrable Shares to be in such denominations and registered in such names as the representative of the underwriters, if any, or the Holders
may request at least two (2) Business Days prior to any sale of the Registrable Shares; and 
  
 (t) upon effectiveness of the first Registration Statement filed by the Company, the Company will take such actions and make such filings as are necessary to effect the registration of the Common Stock under the
Exchange Act simultaneously with or as soon as practicable following the effectiveness of the Registration Statement. 
  
 The Company may require the Holders to furnish to the Company such information regarding the proposed distribution by such Holder as the Company may from
time to time reasonably request in writing or as shall be required to effect the registration of the Registrable Shares and no Holder shall be entitled to be named as a selling stockholder in any Registration Statement and no Holder shall be
entitled to use the Prospectus forming a part thereof if such Holder does not provide such reasonable information to the Company. Any Holder that sells Registrable Shares pursuant to a Registration Statement or as a selling stockholder pursuant to
an Underwritten Offering shall be required to be named as a selling stockholder in the related prospectus and to deliver a prospectus to purchasers. Each Holder further agrees to furnish promptly to the Company in writing all information required
from time to time to make the information previously furnished by such Holder not misleading and each Holder shall have a reasonable opportunity to review and comment upon the Registration Statement with respect to the accuracy of the information
provided by such Holder, which shall include at least five (5) Business Days after receipt of any Registration Statement to provide comments thereon to the Company or its counsel. The designated counsel, if any, for the Holders shall, on behalf of
the Holders, have the right to review and comment upon the Registration Statement prior to the time it is filed with the Commission, which shall include at least ten (10) Business Days after receipt of any Registration Statement to provide comments
thereon to the Company or its counsel. 
  
 Each Holder agrees
that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 4(f)(ii), 4(f)(iii) or (f)(iv) hereof, such Holder will immediately discontinue disposition of Registrable Shares pursuant
to a Registration Statement until such Holder’s receipt of copies of the supplemented or amended Prospectus. If so directed by the Company, such Holder will deliver to the Company (at the expense of the Company) all copies in its possession,
other than permanent file copies then in such Holder’s possession, of the Prospectus covering such Registrable Shares current at the time of receipt of such notice. 
  
 5. Black-Out Period. 
  
 (a) Subject to the provisions of this Section 5 and a good faith determination by a majority of the independent members of the Board of Directors of the
Company that it is in the best interests of the Company to suspend the use of the Registration Statement, following the effectiveness of a Registration Statement (and the filings with any international, federal or state securities commissions), the
Company, by written notice to FBR and the Holders, may direct the Holders to suspend sales of the Registrable Shares pursuant to a Registration Statement for such 

  

 13 

 
times as the Company reasonably may determine is necessary and advisable (but in no event for more than an aggregate of ninety (90)-days in any rolling
twelve (12)-month period commencing on the Closing Time, or thirty (30)-days in any rolling ninety (90)-day period, and no more than three (3) separate times in any rolling 12 month period) if any of the following events shall occur: (i) a primary
Underwritten Offering by the Company where the Company is advised by the representative of the underwriters for such Underwritten Offering that the sale of Registrable Shares pursuant to the Registration Statement would have a material adverse
effect on the Company’s Underwritten Offering; (ii) the majority of the independent members of the Board of Directors of the Company in good faith determine that (A) the offer or sale of any Registrable Shares would materially impede, delay or
interfere with any material proposed acquisition, merger, tender offer, business combination, corporate reorganization, consolidation or other similar material transaction involving the Company, (B) after the advice of counsel, sale of Registrable
Shares pursuant to the Registration Statement would require disclosure of non-public material information not otherwise required to be disclosed under applicable law, and (C) disclosure would have a material adverse effect on the Company or the
Company’s ability to consummate such transaction in each case under circumstances that would make it impracticable or inadvisable to cause the Registration Statement (or such filings) to become effective or to promptly amend or supplement the
Registration Statement on a post-effective basis, as applicable; or (iii) the majority of the independent members of the Board of Directors of the Company shall have determined in good faith, after the advice of counsel, that it is required by law,
rule or regulation to supplement the Registration Statement or file a post-effective amendment to the Registration Statement in order to incorporate information into the Registration Statement for the purpose of (A) including in the Registration
Statement any Prospectus required under Section 10(a)(3) of the Securities Act; (B) reflecting in the Prospectus included in the Registration Statement any facts or events arising after the effective date of the Registration Statement (or of the
most-recent post-effective amendment) that, individually or in the aggregate, represents a fundamental change in the information set forth therein; or (C) including in the Prospectus included in the Registration Statement any material information
with respect to the plan of distribution not disclosed in the Registration Statement or any material change to such information. Upon the occurrence of any such suspension, the Company shall use its commercially reasonable efforts to cause the
Registration Statement to become effective or to promptly amend or supplement the Registration Statement on a post-effective basis or to take such action as is necessary to permit resumed use of the Registration Statement as soon as possible.

  
 (b) In the case of an event that causes the Company to suspend
the use of a Registration Statement (a “Suspension Event”), the Company shall give written notice (a “Suspension Notice”) to the Holders and FBR to suspend sales of the Registrable Shares and such notice shall state
generally the basis for the notice and certify, by an officer of the Company, that such suspension shall continue only for so long as the Suspension Event or its effect is continuing and the Company is taking all reasonable steps to terminate
suspension of the use of the Registration Statement as promptly as possible. The Holders shall not effect any sales of the Registrable Shares pursuant to such Registration Statement (or such filings) at any time after receiving a Suspension Notice
from the Company and prior to receipt of an End of Suspension Notice (as defined below). If so directed by the Company, each Holder will deliver to the Company (at the expense of the Company) all copies other than permanent file copies then in such
Holder’s possession of the Prospectus covering the Registrable Shares at the time of 

  

 14 

 
receipt of the Suspension Notice. The Holders may recommence effecting sales of the Registrable Shares pursuant to the Registration Statement (or such
filings) following further notice to such effect (an “End of Suspension Notice”) from the Company, which End of Suspension Notice shall be given by the Company to the Holders and FBR in the manner described above promptly following
the conclusion of any Suspension Event and its effect. 
  
 (c)
Notwithstanding any provision herein to the contrary, if the Company shall give a Suspension Notice pursuant to this Section 5 with respect to any Registration Statement, the Company agrees that it shall extend the period of time during which such
Registration Statement shall be maintained effective pursuant to this Agreement by the number of days during the period from the date of the giving of a Suspension Notice to and including the date when Holders shall have received an End of
Suspension Notice and copies of the supplemented or amended Prospectus necessary to resume sales, with respect to each Suspension Event; provided such period of time shall not be extended beyond the date that Shares are not Registrable Shares.

  
 6. Indemnification and Contribution. 
  
 (a) The Company agrees to indemnify and hold harmless (i) FBR and each
Holder, (ii) each Person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act), any of the foregoing (any of the Persons referred to in this clause (ii) being hereinafter referred to as a
“Controlling Person”), and (iii) the respective officers, directors, partners, members, managers, employees, representatives and agents of FBR and each Holder or any Controlling Person (any Person referred to in clause (i), (ii) or
(iii) may hereinafter be referred to as a “Purchaser Indemnitee”) from and against any and all losses, damages, judgments, Proceedings, reasonable out-of-pocket expenses, and other liabilities (collectively, the
“Liabilities”), including, without limitation and as incurred, reimbursement of all reasonable costs of investigating, preparing, pursuing or defending any Proceeding by any governmental agency or body, commenced or threatened,
including to the extent hereinafter provided, the reasonable fees and expenses of outside counsel to any Purchaser Indemnitee, joint or several, directly or indirectly related to, based upon, arising out of or in connection with any untrue statement
or alleged untrue statement of a material fact contained in any Registration Statement or Prospectus (as amended or supplemented if the Company shall have furnished to such Purchaser Indemnitee any amendments or supplements thereto), or any
preliminary Prospectus or any other document prepared by the Company used to sell the Registrable Shares (provided that the Company will not be liable with respect to any such untrue statement or alleged untrue statement or omission or alleged
omission made in any preliminary Registration Statement or Prospectus that is corrected in a Prospectus) or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading, except to the extent such Liabilities arise out of or are based upon (i) any untrue statement or omission or alleged untrue statement or omission made in reliance upon and
in conformity with information relating to any Purchaser Indemnitee furnished to the Company or any underwriter in writing by such Purchaser Indemnitee expressly for use therein or (ii) any untrue statement contained in or omission from a
preliminary Prospectus if a copy of the Prospectus (as then amended or supplemented, if the Company shall have furnished to or on behalf of the Holder participating in the distribution relating to the relevant Registration Statement any amendments
or supplements thereto) was not sent or given by or on behalf of such Holder to the Person asserting any such 

  

 15 

 
Liabilities who purchased Shares, if such Prospectus (or Prospectus as amended or supplemented) is required by law to be sent or given at or prior to the
written confirmation of the sale of such Shares to such Person and the untrue statement contained in or omission from such preliminary Prospectus was corrected in the Prospectus (or the Prospectus as amended or supplemented if the Company shall have
furnished any amendments or supplements thereto). The indemnity provided for herein shall remain in full force and effect regardless of any investigation made by or on behalf of any Purchaser Indemnitee. 
  
 (b) In connection with any Registration Statement in which a Holder is
participating and as a condition to such participation, such Holder agrees, severally and not jointly, to indemnify and hold harmless the Company, each Person who controls the Company within the meaning of Section 15 of the Securities Act or Section
20(a) of the Exchange Act and the respective partners, directors, officers, members, representatives, employees and agents of the Company and each such Person to the same extent as the foregoing indemnity from the Company to each Purchaser
Indemnitee, but only with reference to untrue statements or omissions or alleged untrue statements or omissions made in reliance upon and in strict conformity with information relating to such Purchaser Indemnitee furnished to the Company in writing
by such Purchaser Indemnitee expressly for use in any Registration Statement or Prospectus, any amendment or supplement thereto, or any preliminary Prospectus. The liability of any Purchaser Indemnitee pursuant to this paragraph shall in no event
exceed the net proceeds received by such Purchaser Indemnitee from sales of Registrable Shares giving rise to such obligations. 
  
 (c) If any Proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against any Person in respect
of which indemnity may be sought pursuant to paragraph (a) or (b) above, such Person (the “Indemnified Party,” or if more than one Indemnified Party, the “Indemnified Parties”), shall promptly notify the Person
against whom such indemnity may be sought (the “Indemnifying Party”), in writing of the commencement thereof (but the failure to so notify an Indemnifying Party shall not relieve it from any liability which it may have under this
Section 6, except to the extent the Indemnifying Party is actually and materially prejudiced by the failure to give notice), and the Indemnifying Party, shall assume the defense of such Proceeding and retain counsel chosen by the Indemnifying Party
and approved by the Indemnified Party, which approval shall not be unreasonably withheld, to represent the Indemnified Party and any others the Indemnifying Party may reasonably designate in such Proceeding and shall pay the reasonable fees and
expenses actually incurred by such counsel related to such Proceeding. Notwithstanding the foregoing, in any such Proceeding, any Indemnified Party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at
the expense of such Indemnified Party, unless (i) the Indemnifying Party and the Indemnified Party shall have mutually agreed in writing to the contrary, (ii) the Indemnifying Party failed within a reasonable time after notice of commencement of the
Proceeding to assume the defense and engage counsel approved by the Indemnified Party as hereinabove provided, (iii) the Indemnifying Party and its counsel do not pursue in a reasonable manner the defense of such Proceeding, (iv) such Indemnified
Party shall have been reasonably advised by counsel that, either (x) there may be one or more legal defenses available to it which are different from or additional to those available to the Indemnifying Party or such affiliate of the Indemnifying
Party or (y) a conflict may exist between such Indemnified Party and the Indemnifying Party or such affiliate of the Indemnifying Party, then the 

  

 16 

 
Indemnifying Party shall not have the right to assume nor direct the defense of such Proceeding on behalf of such Indemnified Party, it being understood,
however, that the Indemnifying Party shall not, in connection with any one such Proceeding or separate but substantially similar or related Proceedings arising out of the same general allegations or circumstances, be liable for the fees and expenses
of more than one (1) separate firm of attorneys (in addition to any local counsel), for all such Indemnified Parties, which firm shall be designated in writing by those Indemnified Parties who sold a majority of Registrable Shares sold by all such
Indemnified Parties (excluding Registrable Shares sold by the Company at its Affiliates) and any such separate firm for the Company, the directors, the officers and such control Persons of the Company as shall be designated in writing by the
Company. The Indemnifying Party shall not be liable for any settlement of any Proceeding effected without its written consent, which consent shall not be unreasonably withheld or delayed, but if settled with such consent or if there be a final
judgment for the plaintiff, the Indemnifying Party agrees to indemnify any Indemnified Party from and against any loss or liability resulting from such settlement or judgment. No Indemnifying Party shall, without the prior written consent of the
Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which any Indemnified Party is a party or the subject thereof and indemnity could have been sought hereunder by such Indemnified Party, unless (i) such
settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding in a form satisfactory to the Indemnified Party and (ii) does not include a statement as to, or an
admission of, fault, culpability or a failure to act by or on behalf of the Indemnified Party. 
  
 (d) If the indemnification provided for in paragraphs (a) and (b) of this Section 6 is for any reason held to be unavailable to an Indemnified Party in respect of any Liabilities referred to therein (other than
by reason of the exceptions provided therein) or is insufficient to hold harmless a party indemnified thereunder, then each Indemnifying Party under such paragraphs, in lieu of indemnifying such Indemnified Party thereunder, shall contribute to the
amount paid or payable by such Indemnified Party as a result of such Liabilities in such proportion as is appropriate to reflect the relative fault of the Indemnifying Parties and the Indemnified Party, as well as any other relevant equitable
considerations. The relative fault of the Company, on the one hand, and any Purchaser Indemnitees, on the other, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the Company or by such Purchaser Indemnitees and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission. 
  
 (e) The parties agree that it would not
be just and equitable if contribution pursuant to this Section 6 were determined by pro rata allocation (even if such Indemnified Parties were treated as one entity for such purpose), or by any other method of allocation that does not take
account of the equitable considerations referred to in paragraph 6(d) above. The amount paid or payable by an Indemnified Party as a result of any Liabilities referred to paragraph 6(d) shall be deemed to include, subject to the limitations set
forth above, any reasonable legal or other expenses actually incurred by such Indemnified Party in connection with investigating or defending any such Proceeding. Notwithstanding the provisions of this Section 6, in no event shall a Purchaser
Indemnitee be required to contribute any amount in excess of the amount by which proceeds (net of any discounts or commissions) received by such Purchaser Indemnitee from sales of Registrable Shares exceeds the amount of any damages that such
Purchaser 

  

 17 

 
Indemnitee has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. For purposes of this
Section 6, each Person, if any, who controls (within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act) FBR or a Holder shall have the same rights to contribution as FBR or such Holder, as the case may be, and each
Person, if any, who controls (within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act) the Company, and each officer, director, partner, employee, representative, agent or manager of the Company shall have the same rights to
contribution as the Company. Any party entitled to contribution will, promptly after receipt of notice of commencement of any Proceeding against such party in respect of which a claim for contribution may be made against another party or parties,
notify each party or parties from whom contribution may be sought, but the omission to so notify such party or parties shall not relieve the party or parties from whom contribution may be sought from any obligation it or they may have under this
Section 6 or otherwise, except to the extent that any party is actually and materially prejudiced by the failure to give notice. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act), shall be
entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. 
  
 (f) The indemnity and contribution agreements contained in this Section 6 will be in addition to any liability which the Indemnifying Parties may
otherwise have to the Indemnified Parties referred to above. The Purchaser Indemnitee’s obligations to contribute pursuant to this Section 6 are several in proportion to the respective number of Shares sold by each of the Purchaser Indemnitees
hereunder and not joint. 
  
 7. Market Stand-off Agreement. 
  
 Each Holder hereby agrees that it shall not, to the extent requested in
writing by an underwriter of securities of the Company, directly or indirectly sell, offer to sell (including without limitation any short sale), grant any option or otherwise transfer or dispose of any Registrable Shares or other shares of Common
Stock of the Company or any securities convertible into or exchangeable or exercisable for shares of Common Stock of the Company then owned by such Holder (other than to donees or partners of the Holder who agree to be similarly bound) within thirty
(30) days prior to, and ninety (90) days following, either (x) the effective date of the IPO Registration Statement of the Company filed under the Securities Act or (y) the date of an Underwritten Offering by the Company pursuant to a shelf
registration statement of the Company filed under the Securities Act; provided, however, that: 
  
 (a) with respect to the up to the 90-day restriction that follows the effective date of the IPO Registration Statement, such agreement shall not be
applicable to Registrable Shares sold pursuant to such IPO Registration Statement; 
  
 (b) all executive officers and directors of the Company then holding shares of Common Stock or securities convertible into or exchangeable or exercisable for shares of Common Stock of the Company shall enter into
similar agreements for not less than the entire time period required of the Holders hereunder; and 
  
 (c) the Holders shall be allowed any concession or proportionate release allowed to any executive officer or director that entered into similar
agreements. 
  

 18 

 In order to enforce the foregoing covenant, the Company shall have the right to place restrictive legends
on the certificates representing the securities subject to this Section 7 and to impose stop transfer instructions with respect to the Registrable Shares and such other securities of each Holder (and the securities of every other Person subject to
the foregoing restriction) until the end of such period. 
  
 8. Termination of
the Company’s Obligations. 
  
 The Company shall have no
further obligations pursuant to this Agreement at such time as no Registrable Shares are outstanding, provided, however, that the Company’s obligations under Sections 6 and 10 of this Agreement shall remain in full force and effect
following such time. 
  
 9. Limitations on Subsequent Registration Rights.

  
 From and after the date of this Agreement, the Company shall
not, without the prior written consent of the Holders (other than Affiliates of the Company) of a majority of the then outstanding Registrable Shares, enter into any agreement with any holder or prospective holder of any securities of the Company
that would allow such holder or prospective holder to include such securities in any Registration Statement, filed pursuant to the terms hereof. 
  

	10.	Miscellaneous. 

  
 Remedies. If (i) the Company does not initially file the IPO Registration Statement or the Shelf Registration Statement with the Commission within nine (9) months from the date hereof, (ii) the Company does not
file a Shelf Registration Statement relating to any Registrable Shares not registered under and distributed pursuant to an IPO Registration Statement (a) in the case of the withdrawal or abandonment of the offering pursuant to the IPO Registration
Statement, the date which is thirty (30) days after the earlier of the withdrawal or abandonment of the offering pursuant to the IPO Registration Statement or (b) the date ninety (90) days after the consummation of the offering pursuant to the IPO
Registration Statement or (iii) the Company fails to comply with its obligations set forth in Sections 2 and 4 to file, when and as required, any documents or other materials necessary to effect, or maintain the effectiveness of, any Shelf
Registration Statement, the Manager (A) shall not be entitled to receive from the Company, and shall forfeit, any Incentive Fee (as defined in that certain Management Agreement, dated as of June 4, 2004, by and between the Company and the Manager
(the “Management Agreement”)) that may become payable to the Manager pursuant to the Management Agreement for the period of time that the Company has not complied with such obligations beginning on such date nine (9) months from the
date hereof and continuing only until such date as the Company complies with its obligations hereunder, at which time all amounts due to the Manager under the Management Agreement, including fees earned during the period in which the Company has not
complied with such obligations, shall become due and payable, and (B) the Manager shall forfeit one-half (1/2) of any shares of Common Stock (or any securities of the Company convertible into shares of Common Stock) granted to J.E. Robert Company,
Inc., or any Affiliate of J.E. Robert Company, Inc., including the Manager, by the Company pursuant to the Company’s stock incentive plan in connection with the transactions contemplated by the Purchase Agreement; provided,
however, that in no event shall the remedies specified in (B) of this Section 10(a) apply 

  

 19 

 
at any time when the Company has endeavored in good faith to file either the IPO Registration Statement or Shelf Registration Statement but is unable to make
such filing as of such date as a result of circumstances outside the reasonable control of the Company; and provided further that with respect to any remedies specified in (B) of this Section 10(a) that occur nine (9) months from the date
hereof, the Company shall have an additional two Business Day grace period to file either an IPO Registration Statement or Shelf Registration Statement before any such remedies shall be effected hereunder. The provisions set forth in this
Section 10(a) shall not limit the remedies of any party hereto with respect to the breach of any provisions of this Agreement. 
  
 (a) Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to or departures from the provisions hereof may not be given, without the written consent of the Company and Holders beneficially owning not less than fifty percent (50%) of the then outstanding Registrable
Shares; provided, however, that for purposes of this Agreement, Registrable Shares that are owned, directly or indirectly, by an Affiliate of the Company shall not be deemed to be outstanding. Notwithstanding the foregoing, a waiver or
consent to or departure from the provisions hereof with respect to a matter that relates exclusively to the rights of a Holder whose securities are being sold pursuant to a Registration Statement and that does not directly or indirectly affect,
impair, limit or compromise the rights of other Holders may be given by such Holder; provided that the provisions of this sentence may not be amended, modified or supplemented except in accordance with the provisions of the immediately
preceding sentence. 
  
 (b) Notices. All notices and other
communications, provided for or permitted hereunder shall be made in writing or delivered by facsimile (with receipt confirmed), overnight courier or registered or certified mail, return receipt requested, or by telegram 
  
 (i) if to a Holder, at the most current address given by the
transfer agent and registrar of the Shares to the Company; and 
  
 (ii) if to the Company, at the offices of the Company at 1650 Tysons Boulevard, Suite 1600, McLean, Virginia 22102, Attention: Chief Financial Officer, (fax (703) 714 -8102). 
  
 Receipt of any notice sent pursuant to this Agreement shall be deemed to occur three days
after mailing by the party giving such notice. The Company shall cause the transfer agent to use commercially reasonable efforts to maintain current addresses of the Holders. 
  
 (c) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and
permitted assigns of each of the parties hereto, including the Holders. The Company agrees that the Holders shall be parties to the agreements made hereunder and shall be entitled to the benefits and subject to the obligations hereof, and the
Company and each Holder shall have the right to enforce such agreements directly to the extent it deems such enforcement necessary or advisable to protect its rights hereunder. 
  

 20 

 (d) Stock Legend. In addition to any other legend that may appear on the stock certificates
evidencing the Registrable Shares, for so long as any Shares remain Registrable Shares each stock certificate evidencing such Registrable Shares shall contain a legend to the following effect: “THE SHARES EVIDENCED BY THIS CERTIFICATE ARE
SUBJECT TO AND ENTITLED TO THE BENEFITS OF A CERTAIN REGISTRATION RIGHTS AGREEMENT, DATED JUNE 4, 2004”. 
  
 (e) Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
  
 (f) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS
MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT OF NEW YORK OR ANY OTHER
NEW YORK STATE COURT SITTING IN NEW YORK IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF
THE AFORESAID COURTS. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR
PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 
  

(g) Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use
their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties hereto that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 
  
 (h) Entire Agreement. This Agreement, together with the Purchase
Agreement, is intended by the parties hereto as a final expression of their agreement, and is intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained
herein and therein. 
  

 21 

 (i) Registrable Shares Held by the Company or its Affiliates. Whenever the consent or approval of
Holders of a specified percentage of Registrable Shares is required hereunder, Registrable Shares held by the Company or its Affiliates shall not be counted in determining whether such consent or approval was given by the Holders of such required
percentage. 
  
 (j) Survival. This Agreement is intended to
survive the consummation of the transactions contemplated by the Purchase Agreement. The indemnification and contribution obligations under Section 6 of this Agreement shall survive the termination of the Company’s obligations under
Section 2 of this Agreement. 
  
 (k) Headings. The headings
in this Agreement are for convenience of reference only and shall not limit or otherwise affect the provisions of this Agreement. All references made in this Agreement to “Section” refer to such Section of this Agreement, unless expressly
stated otherwise. 
  
 (l) Attorneys’ Fees. In any
Proceeding brought to enforce any provision of this Agreement, or where any provision hereof is validly asserted as a defense, the prevailing party, as determined by the court, shall be entitled to recover its reasonable attorneys’ fees in
addition to any other available remedy. 
  
 [Signatures on the
Following Page] 
  

 22 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	JER INVESTORS TRUST INC.
		
	By:	 	 /s/ Tae-Sik Yoon

	 Name:
	 	 Tae-Sik Yoon

	 Its:
	 	 Executive Vice President

	
	JER COMMERCIAL DEBT ADVISORS LLC
		
	By:	 	 /s/ Daniel T Ward

	 Name:
	 	 Daniel T. Ward

	 Its:
	 	 Senior Managing Director

	
	FRIEDMAN, BILLINGS, RAMSEY & CO., INC.
		
	By:	 	 /s/ James R. Kleeblatt

	 Name:
	 	 James R. Kleeblatt

	 Its:
	 	 Senior Managing Director

  

 23Exhibit 10.1

 Exhibit 10.1 
  

  
 MANAGEMENT AGREEMENT 
  
 by and between

  
 JER INVESTORS TRUST INC. 
  
 and 
  
 JER COMMERCIAL DEBT ADVISORS LLC 
  
 Dated as of June 4 , 2004 
  

 MANAGEMENT AGREEMENT, dated as of June 4, 2004, by and between JER INVESTORS TRUST INC., a Maryland
corporation (the “Company”), and JER COMMERCIAL DEBT ADVISORS LLC, a Delaware limited liability company (the “Manager”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Company is a newly formed corporation which intends to invest primarily in a diversified portfolio of
commercial mortgage backed securities and other related loans issued in connection with securitizations and expects to qualify for the tax benefits accorded by Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the
“Code”); and 
  
 WHEREAS, the Company desires to retain
the Manager to manage the business and investment affairs of the Company, subject to the direction and oversight of the Board of Directors (as defined below) and to perform certain services for the Company in the manner and on the terms set forth
herein; 
  
 NOW THEREFORE, in consideration of the premises and
agreements hereinafter set forth, the parties hereto hereby agree as follows: 
  
 Section 1. Definitions The following terms shall have the meanings set forth in this Section 1(a): 
  
 “Affiliate”: (i) any Person directly or indirectly controlling, controlled by, or under common control with such other
Person, (ii) any officer or general partner of such other Person, and (iii) any legal entity for which such Person acts as an executive officer or general partner. 
  
 “Agreement”: this Management Agreement, as amended, supplemented or otherwise modified from
time to time. 
  
 “Base Management
Fee”: the base management fee, calculated and paid monthly in arrears, in an amount equal to one-twelfth of (i) 2.0% of the first $400 million of Equity, (ii) 1.5% of Equity in excess of $400 million and up to $800 million and (iii) 1.25%
of Equity in excess of $800 million. 
  
 “Board of Directors”: the board of directors of the Company. 
  
 “Business Day”: any day except a Saturday, a Sunday or a day on which banking institutions in New York, New York are not
required to be open. 
  
 “Change in
Control of the Manager”: shall be deemed to have occurred: (a) if any Person, other than Joseph E. Robert, Jr. (or his estate, heirs, testamentary trusts, executor, administrator, committee or other personal representative) or any Affiliate
of the Manager, the Company or J.E. Robert Company, Inc., becomes the beneficial owner, directly or indirectly, of securities of the Manager representing more than 50% of the aggregate voting power of all classes of the Manager’s then
outstanding voting securities 

  

 
or (b) upon approval by all requisite parties of (i) a plan of merger, consolidation, share exchange or similar transaction between the Manager and an entity
(other than an Affiliate of J.E. Robert Company, Inc. that executes this Agreement and agrees to bound by the provisions hereof), or (ii) a proposal with respect to the sale, lease, exchange or other disposal of all, or substantially all, of the
Manager’s assets to an entity (other than an Affiliate of J.E. Robert Company, Inc. that executes this Agreement and agrees to be bound by the provisions hereof). 
  
 “Closing Date”: the date of closing of the Initial Private Offering. 
  
 “Common Stock”: the common stock, par value
$0.01, of the Company. 
  
 “Conduit
CMBS”: commercial mortgage backed securities and other related loans issued in connection with a Conduit Securitization. 
  
 “Conduit Securitization”: any transaction involving the issuance of commercial mortgage backed securities collateralized
primarily by newly originated loans (i) issued for the purpose of securitizations, (ii) with fixed interest rates and maturities of 7 to 10 years and (iii) with loan-to-value ratios generally averaging approximately 75% and debt service coverage
ratios generally averaging 1.25 based on net cash flow from the underlying real estate, all as reasonably determined by the Manager, acting in good faith. 
  
 “Equity”: for purposes of calculating the Base Management Fee, Equity equals the month-end value, computed in accordance
with GAAP, of the Company’s stockholders’ equity, adjusted to exclude the effect of any unrealized gains, losses or other items that do not affect realized net income. 
  
 “Funds From Operations”: net income (computed in accordance with GAAP) excluding gains (or
losses) from debt restructuring and sales of property, plus depreciation and amortization on real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. For purposes of calculating the Incentive Fee, Funds From
Operations may be adjusted by a unanimous vote of the Unaffiliated Directors to exclude special one time events such as changes in GAAP pronouncements or other significant non-cash items. 
  
 “GAAP”: means generally accepted accounting
principles in effect in the U.S. on the date such principles are applied, consistently applied. 
  
 “Governing Instruments”: the articles of incorporation and bylaws in the case of a corporation, the partnership agreement
in the case of a partnership or the certificate of formation and operating agreement in the case of a limited liability company. 
  
 “Incentive Fee”: an incentive management fee payable each fiscal quarter in an amount, not less than zero, equal to the
product of: (i) 25% of the dollar amount by which (a) Funds From Operations of the Company for such quarter per share of Common Stock (based on the weighted average number of shares outstanding for such quarter) exceed (b) an amount equal to (1) the
weighted average of the price per share of Common Stock issued in the Initial Private Offering and the prices per share of Common Stock issued in 

  

 2 

 
any subsequent offerings by the Company multiplied by (2) the greater of (A) 2.25% and (B) .875% plus one fourth of the Ten-Year U.S. Treasury Rate for such
quarter, multiplied by (ii) the weighted average number of shares of Common Stock outstanding during such quarter. 
  
 “Initial Private Offering”: the sale by the Company to Friedman, Billings, Ramsey & Co., Inc., as initial purchaser
and placement agent, on June 4, 2004, of up to 11,500,000 shares of common stock in transactions exempt from registration under the Securities Act of 1933, as amended. 
  
 “JER”: J.E. Robert Company, Inc., the parent of the Manager. 
  
 “Other Services”: services provided by the
Manager or its Affiliates to the Company, including (i) due diligence and acquisition related services on assets acquired or considered for acquisition by the Company and (ii) legal, accounting, leasing, development, financial advisory, information
and technology, administration, human resources, appraisal, environmental, structural or asset management services, loan servicing, master or special servicing, property management services or securitization services with respect to assets acquired
by the Company, in each case subject to the direction and oversight of the Board of Directors. 
  
 “Person”: any natural person, corporation, partnership, association, limited liability company or any other legal entity.

  
 “Subsidiary”: any subsidiary
of the Company and any partnership, the general partner of which is the Company or any subsidiary of the Company. 
  
 “Ten Year U.S. Treasury Rate”: the arithmetic average of the weekly average yield to maturity for actively traded current
coupon U.S. Treasury fixed interest rate securities (adjusted to constant maturities of ten years) published by the Federal Reserve Board during a quarter, or, if such rate is not published by the Federal Reserve Board, any Federal Reserve Bank or
agency or department of the federal government selected by the Company. If the Company determines in good faith that the Ten Year U.S. Treasury Rate cannot be calculated as provided above, then the rate shall be the arithmetic average of the per
annum average yields to maturities, based upon closing asked prices on each Business Day during a quarter, for each actively traded marketable U.S. Treasury fixed interest rate security with a final maturity date not less than eight nor more than
twelve years from the date of the closing asked prices as chosen and quoted for each Business Day in each such quarter in New York City by at least three recognized dealers in U.S. government securities selected by the Company. 
  
 “Termination Fee”: a termination fee equal
to four times the sum of the Base Management Fee and the Incentive Fee in the 12 months preceding the date of termination, calculated as of the end of the last fiscal quarter prior to the date of termination. 
  
 “Unaffiliated Director”: a member of the
Board of Directors who is not an Affiliate of the Manager. 
  

 3 

 (a) As used herein, accounting terms relating to the Company and its Subsidiaries not defined in Section
1(a) and accounting terms partly defined in Section 1(a), to the extent not defined, shall have the respective meanings given to them under United States generally accepted accounting principles. 
  
 (b) The words “hereof”, “herein” and
“hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section references are to this Agreement unless otherwise specified.

  
 (c) The meanings given to terms defined herein shall be
equally applicable to both the singular and plural forms of such terms. The words include, includes and including shall be deemed to be followed by the phrase “without limitation”. 
  
 Section 2. Appointment and Duties of the Manager The Company hereby
appoints the Manager to manage the assets of the Company subject to the further terms and conditions set forth in this Agreement and the Manager hereby agrees to use its commercially reasonable efforts to perform each of the duties set forth herein.

  
 (b) The Manager at all times will be subject to the
supervision and direction of the Board of Directors and will have only such functions and authority as the Company may delegate to it. The Manager will be responsible for providing the following investment advisory services relating to the assets
and operations of the Company as may be appropriate: 
  
 (i) serving as the Company’s consultant with respect to the formulation of investment criteria and preparation of policy guidelines for approval by the Board of Directors; 
  
 (ii) counseling the Company in connection with policy decisions to be made by the Board of Directors;

  
 (iii) investigating, analyzing and selecting
potential investment opportunities for the Company; 
  
 (iv) serving as the Company’s consultant with respect to the evaluation, purchase, origination, negotiation, structuring, monitoring, and disposition of investments by the Company, including the accumulation of assets for
securitization; 
  
 (v) serving as the
Company’s consultant with respect to decisions regarding any financings, securitizations, hedging activities or borrowings undertaken by the Company or its Subsidiaries; 
  
 (vi) serving as the Company’s consultant with respect to arranging for the issuance of mortgage backed
securities from pools of mortgage loans or mortgage backed securities owned by the Company; 
  
 (vii) making available to the Company its knowledge and experience with respect to real estate, real estate related assets and real estate
operating companies; 
  

 4 

 (viii) coordinating and supervising, on behalf of the Company and at the Company’s
expense, independent contractors which provide real estate brokerage, legal, accounting, transfer agent, registrar and leasing services, master servicing, special servicing, mortgage brokerage, securities brokerage, banking, investment banking and
other financial services and such other services as may be required relating to the investments or potential investments of the Company; 
  
 (ix) coordinating and supervising, on behalf of the Company and at the Company’s expense, other service providers to the Company; and

  
 (x) providing certain general management
services to the Company relating to the day-to-day operations and administration of the Company (including, e.g., communicating with the holders of the equity and debt securities of the Company as required to satisfy the reporting and other
requirements of any governing bodies or agencies and to maintain effective relations with such holders, causing the Company to qualify to do business in all applicable jurisdictions, complying with all regulatory requirements applicable to the
Company in respect of its business activities, including preparing all financial statements required under applicable regulations and contractual undertakings and all reports and documents, if any, required under the Securities Exchange Act of 1934,
as amended, and causing the Company to comply with all applicable laws). 
  
 Section 3. Additional Activities of the Manager (a) Except as provided in the last sentence of this Section 3(a) and subject to the provisions of the JER Conflicts of Interests Policy (attached hereto as
Exhibit B), as the same may be amended from time to time in the sole discretion of JER, nothing in this Agreement shall (i) prevent the Manager or any of its Affiliates, officers, directors or employees, from engaging in other businesses or from
rendering services of any kind to any other Person or entity, including, without limitation, investing in, or rendering advisory services to others investing in, any type of Conduit CMBS or other mortgage loans (including, without limitation,
investments that meet the principal investment objectives of the Company), whether or not the investment objectives or policies of any such other Person or entity are similar to those of the Company or (ii) in any way bind or restrict the Manager or
any of its Affiliates, officers, directors or employees from buying, selling or trading any securities or commodities for their own accounts or for the account of others for whom the Manager or any of its Affiliates, officers, directors or employees
may be acting. While information and recommendations supplied to the Company shall, in the Manager’s reasonable and good faith judgment, be appropriate under the circumstances and in light of the investment objectives and policies of the
Company, they may be different from the information and recommendations supplied by the Manager or any Affiliate of the Manager to other investment companies, funds and advisory accounts. The Company shall be entitled to equitable treatment under
the circumstances in receiving information, recommendations and any other services, but the Company recognizes that it is not entitled to receive preferential treatment as compared with the treatment given by the Manager or any Affiliate of the
Manager to any investment company, fund or advisory account other than any fund or advisory account which contains only funds invested by the Manager, its Affiliates (and not any funds of any of their clients or customers) or
their officers and directors. Notwithstanding anything to the contrary in this Section 3(a), the Manager hereby agrees that neither the Manager nor any entity controlled by the Manager shall 

  

 5 

 
raise, sponsor or advise any new investment fund, company or vehicle (including any REIT) that invests primarily in Conduit CMBS and other related loan
products in the United States. The Company shall have the benefit of the Manager’s best judgment and effort in rendering services hereunder and, in furtherance of the foregoing, the Manager shall not undertake activities that, in its good faith
judgment, will adversely affect the performance of its obligations under this Agreement. 
  
 (b) Directors, officers, employees and agents of the Manager or Affiliates of the Manager may serve as directors, officers, employees, agents, nominees or signatories for the Company or any Subsidiary, to the extent
permitted by their Governing Instruments, as from time to time amended, or by any resolutions duly adopted by the Board of Directors pursuant to the Company’s Governing Instruments. When executing documents or otherwise acting in such
capacities for the Company, such Persons shall use their respective titles in the Company. 
  
 (c) The Manager is authorized, for and on behalf, and at the sole cost and expense of the Company, to employ such securities dealers for the purchase and sale of investment assets of the Company as may, in the good
faith judgment of the Manager, be necessary to obtain the best commercially available net results for the Company taking into account such factors as the policies of the Company, price, dealer spread, the size, type and difficulty of the transaction
involved, the firm’s general execution and operational facilities and the firm’s risk in positioning the securities involved. Consistent with this policy, the Manager is authorized to direct the execution of the Company’s portfolio
transactions to dealers and brokers furnishing statistical information or research deemed by the Manager to be useful or valuable to the performance of its investment advisory functions for the Company. 
  
 (d) The Company (including the Board of Directors) agrees to take all actions
reasonably required to permit and enable the Manager to carry out its duties and obligations under this Agreement, including, without limitation, all steps reasonably necessary to allow the Manager to file any registration statement on behalf of the
Company in a timely manner. The Company further agrees to use commercially reasonable efforts to make available to the Manager all resources, information and materials reasonably requested by the Manager to enable the Manager to satisfy its
obligations hereunder, including its obligations to deliver financial statements and any other information or reports with respect to the Company. If the Manager is not able to provide a service, or in the reasonable judgment of the Manager it is
not prudent to provide a service, without the approval of the Board of Directors or the Unaffiliated Directors, as applicable, then the Manager shall be excused from providing such service (and shall not be in breach of this Agreement) until the
applicable approval has been obtained. 
  
 Section 4. Bank
Accounts At the direction of the Board of Directors, the Manager may establish and maintain one or more bank accounts in the name of the Company or any Subsidiary, and may collect and deposit into any such account or accounts, and disburse funds
from any such account or accounts, under such terms and conditions as the Board of Directors may approve; and the Manager shall from time to time render appropriate accountings of such collections and payments to the Board of Directors and, upon
request, to the auditors of the Company or any Subsidiary. 
  

 6 

 Section 5. Records; Confidentiality The Manager shall maintain appropriate books of accounts and
records relating to services performed hereunder, and such books of account and records shall be accessible for inspection by representatives of the Company or any Subsidiary at any time during normal business hours. The Manager shall keep
confidential any and all non-public information, written or oral, obtained by it in connection with the services rendered hereunder (“Confidential Information”) and shall not disclose Confidential Information, in whole or in part,
to any Person other than to its Affiliates, officers, directors, employees, agents or representatives (collectively, “Representatives”) who need to know such Confidential Information for the purpose of rendering services hereunder
or with the consent of the Company. The Manager agrees to inform each of its Representatives of the non-public nature of the Confidential Information and to direct such Persons to treat such Confidential Information in accordance with the terms
hereof. Nothing herein shall prevent the Manager from disclosing Confidential Information (i) upon the order of any court or administrative agency, (ii) upon the request or demand of, or pursuant to any law or regulation, any regulatory agency or
authority, (iii) to the extent reasonably required in connection with the exercise of any remedy hereunder, or (iv) to its legal counsel or independent auditors; provided, however that with respect to clauses (i) and (ii), it is agreed that the
Manager will provide the Company with prompt written notice of such order, request or demand so that the Company may seek an appropriate protective order and/or waive the Manager’s compliance with the provisions of this Agreement. If, failing
the entry of a protective order or the receipt of a waiver hereunder, the Manager is, in the opinion of counsel, required to disclose Confidential Information, the Manager may disclose only that portion of such information that its counsel advises
is legally required without liability hereunder; provided, that the Manager agrees to exercise its best efforts to obtain reliable assurance that confidential treatment will be accorded such information. Notwithstanding anything herein to the
contrary, each of the following shall be deemed to be excluded from provisions hereof: any Confidential Information that (A) is available to the public from a source other than the Manager, (B) is released in writing by the Company to the public or
to persons who are not under similar obligation of confidentiality to the Company, or (C) is obtained by the Manager from a third-party without breach by such third-party of an obligation of confidence with respect to the Confidential Information
disclosed. 
  
 Section 6. Obligations of the Manager The
Manager shall take such action as it deems necessary or appropriate with regard to the protection of the Company’s investments. The Manager agrees to act in accordance with the terms of the Company’s guidelines (the
“Guidelines”), a copy of which is attached hereto as Exhibit A. The Manager acknowledges that the Company intends to conduct its operations so as not to become regulated as an investment company under the Investment Company Act of
1940, as amended (the “Investment Company Act”) and agrees to use commercially reasonable efforts to cooperate with its efforts to conduct its operations so as not to become regulated as an investment company under the Investment
Company Act. The Manager acknowledges that the Company intends to elect to be taxed as a real estate investment trust (a “REIT”) and agrees to use commercially reasonable efforts to cooperate with its efforts to conduct its
operations to qualify as a REIT. The Manager shall refrain from any action that, in its sole judgment made in good faith, would adversely affect the status of the Company as an entity that is not regulated as an investment company under the
Investment Company Act, would adversely affect the status of the Company as a REIT or that, in its sole judgment made in good faith, would violate any law, rule or regulation of any governmental body or agency having jurisdiction over the Company or
any Subsidiary or that 

  

 7 

 
would otherwise not be permitted by the Company’s or a Subsidiary’s Governing Instruments. If the Manager is ordered to take any action by the
Board of Directors, the Manager shall promptly notify the Board of Directors if it is the Manager’s judgment that such action would adversely affect such status or violate any such law, rule or regulation or the Governing Instruments.
Notwithstanding the foregoing, the Manager, its directors, officers, stockholders and employees shall not be liable to the Company, any Subsidiary, the Unaffiliated Directors, or the Company’s or a Subsidiary’s stockholders or partners for
any act or omission by the Manager, its directors, officers, stockholders or employees except as provided in Section 9 of this Agreement. 
  
 (b) The Manager shall not (i) consummate any transaction that would involve the acquisition by the Company of an asset in which the Manager or any of its
Affiliates has an ownership interest, or the sale by the Company of an asset to the Manager or any of its Affiliates, or (ii) under circumstances where the Manager is subject to an actual or potential conflict of interest because it manages both the
Company and another Person with which the Company has a contractual relationship, take any action constituting the granting to such Person of a waiver, forbearance or other relief, or the enforcement against such Person of remedies, under or with
respect to the applicable contract, unless such transaction or action, as the case may be, is approved by all of the Unaffiliated Directors. 
  
 (c) Except with respect to allocations of investments made pursuant to the Conflicts Policy in effect with respect to the Company and JER Fund III or
other Affiliates of the Company, the Company shall not otherwise invest in joint ventures with the Manager or any of its Affiliates, unless (i) such investment is made in accordance with the Guidelines and (ii) such investment is approved by all of
the Unaffiliated Directors. 
  
 (d) The Manager shall at all times
maintain a tangible net worth equal to or greater than $250,000. In addition, the Manager shall maintain “errors and omissions” insurance coverage and other insurance coverage that is customarily carried by property and asset and
investment managers performing functions similar to those provided by the Manager under this Agreement with respect to assets similar to assets of the Company, in an amount that is comparable to that customarily maintained by other managers or
servicers of similar assets. 
  
 Section 7. Compensation
(a) For the services rendered under this Agreement, the Company shall pay to the Manager the Base Management Fee and the Incentive Fee. 
  
 (b) The parties acknowledge that the Base Management Fee is intended to compensate the Manager for the costs and expenses of its executive officers and
employees and any related overhead incurred in providing to the Company the investment advisory services and certain general management services rendered under this Agreement. 
  
 (c) The Manager will not receive any compensation for the period prior to the Closing Date other than expenses incurred and
reimbursed pursuant to the provisions of Section 8 hereunder. 
  
 (d) The Base Management Fee shall be payable in arrears in cash, in monthly installments, and the Manager shall calculate each installment thereof, and deliver such 

  

 8 

 
calculation to the Board of Directors, within fifteen (15) days following the last day of each calendar month. The Company shall pay the Manager each
installment of the Base Management Fee (each, a “Management Fee Payment”) within twenty (20) days following the last day of the calendar month with respect to which such Management Fee Payment is payable. 
  
 (e) The Manager shall compute each installment of the Incentive Fee within 15
days after the end of the calendar quarter with respect to which such installment is payable. A copy of the computations made by the Manager to calculate such installment shall thereafter promptly be delivered to the Board of Directors and, upon
such delivery, payment of such installment of the Incentive Fee shown therein shall be due and payable no later than the earlier to occur of (i) the date which is 20 days after the end of the calendar quarter with respect to which such installment
is payable and (ii) the date which is two (2) business days after the date of delivery to the Board of Directors of such computations. 
  
 Section 8. Expenses of the Company; Other Services (a) The Manager shall be responsible for employment expenses of the JER employees dedicated to
the Manager (including the officers of the Company which are also JER employees dedicated to the Manager), including, without limitation, salaries, wages, payroll taxes and the cost of employee benefit plans of such personnel. 
  
 (b) The Company shall pay all of the costs and expenses of the Company,
excepting only those expenses that are specifically the responsibility of the Manager pursuant to Section 8(a) of this Agreement. Without limiting the generality of the foregoing, it is specifically agreed that the following costs and expenses of
the Company or any Subsidiary shall be paid by the Company and shall not be paid by the Manager and/or the Affiliates of the Manager: 
  
 (i) all costs and expenses associated with the formation and capital raising activities of the Company and its subsidiaries, including,
without limitation, the costs and expenses of any 144A transaction or private placement by the Company, the preparation of the Company’s registration statements, any and all costs and expenses of an initial public offering of the Company, any
subsequent offerings and any filing fees and costs of being a public company, including, without limitation, filings with the Securities and Exchange Commission, the National Association of Securities Dealers, Inc. and the New York Stock Exchange,
Inc. (and any other exchange or over-the-counter market), among other such entities; 
  
 (ii) all costs and expenses in connection with the acquisition, disposition, development, protection, maintenance, financing, hedging,
administration and ownership of the Company’s or any Subsidiary’s investment assets, including, without limitation, costs and expenses incurred in contracting with third parties, including Affiliates of the Manager, to provide such
services, such as legal fees, accounting fees, consulting fees, trustee fees, appraisal fees, insurance premiums, commitment fees, brokerage fees, guaranty fees, ad valorem taxes, costs of foreclosure, maintenance, repair and improvement of property
and premiums for insurance on property owned by the Company or any Subsidiary; 
  

 9 

 (iii) all legal, audit, accounting, underwriting, brokerage, listing, filing, custodian,
rating agency, registration and other fees and charges, printing, engraving, clerical, personnel and other expenses and taxes incurred in connection with the issuance, distribution, transfer, registration and stock exchange listing of the
Company’s or any Subsidiary’s equity securities or debt securities; 
  
 (iv) all costs and expenses in connection with legal, accounting, due diligence, asset management, securitization, property management, leasing tasks and other services performed by the Manager’s employees or
Affiliates that outside professionals or outside consultants otherwise would perform; 
  
 (v) all expenses of third parties relating to communications to holders of equity securities or debt securities issued by the Company or
any Subsidiary and the other bookkeeping and clerical work necessary in maintaining relations with holders of such securities and in complying with the continuous reporting and other requirements of governmental bodies or agencies, including any
costs of computer services in connection with this function, the cost of printing and mailing certificates for such securities and proxy solicitation materials and reports to holders of the Company’s or any Subsidiary’s securities and
reports to third parties required under any indenture to which the Company or any Subsidiary is a party; 
  
 (vi) all costs and expenses of money borrowed by the Company or its Subsidiaries, including, without limitation, principal, interest and
the costs associated with the establishment and maintenance of any credit facilities, warehouse loans and other indebtedness of the Company and its Subsidiaries (including commitment fees, legal fees, closing and other costs); 
  
 (vii) all taxes and license fees applicable to the Company
or any Subsidiary, including interest and penalties thereon; 
  
 (viii) all fees paid to and expenses of third-party advisors and independent contractors, consultants, managers and other agents engaged by the Company or any Subsidiary or by the Manager for the account of the
Company or any Subsidiary and all employment expenses of the personnel employed by the Company or any Subsidiary (excluding any personnel which are also employed by the Manager), including, without limitation, the salaries, wages, equity based
compensation of such personnel, payroll taxes and the incremental cost for administering employee benefit plans of the Manager which are used by such personnel; 
  
 (ix) all insurance costs incurred by the Company or any Subsidiary, including, without limitation, any costs
to obtain liability or other insurance to indemnify the Manager and underwriters of any securities of the Company; 
  
 (x) all costs and expenses relating to the acquisition of, and maintenance and upgrades to, the Company’s portfolio accounting
systems; 
  
 (xi) all compensation and fees paid
to directors of the Company or any Subsidiary (excluding those directors who are also employees of the Manager), all 

  

 10 

 
expenses of directors of the Company or any Subsidiary (including those directors who are also employees of the Manager), the cost of directors and officers
liability insurance and premiums for errors and omissions insurance, and any other insurance deemed necessary or advisable by the Board of Directors for the benefit of the Company and its directors and officers (including those directors who are
also employees of the Manager); 
  
 (xii) all
third-party legal, accounting and auditing fees and expenses and other similar services relating to the Company’s or any Subsidiary’s operations (including, without limitation, all quarterly and annual audit or tax fees and expenses);

  
 (xiii) all legal, expert and other fees and
expenses relating to any actions, proceedings, lawsuits, demands, causes of action and claims, whether actual or threatened, made by or against the Company, or which the Company is authorized or obligated to pay under applicable law or its Governing
Instruments or by the Board of Directors; 
  
 (xiv) any judgment or settlement of pending or threatened proceedings (whether civil, criminal or otherwise) against the Company or any Subsidiary, or against any trustee, director or officer of the Company or any Subsidiary in his capacity
as such for which the Company or any Subsidiary is required to indemnify such trustee, director or officer by any court or governmental agency, or settlement of pending or threatened proceedings; 
  
 (xv) all travel and related expenses of directors, officers
and employees of the Company and the Manager, incurred in connection with attending meetings of the Board of Directors or holders of securities of the Company or any Subsidiary or performing other business activities that relate to the Company or
any Subsidiary, including, without limitations, travel and expenses incurred in connection with the purchase, consideration for purchase, financing, refinancing, sale or other disposition of any investment or potential investment of the Company;
provided, however, that the Company shall only be responsible for a proportionate share of such expenses, as determined by the Manager in good faith, where such expenses were not incurred solely for the benefit of the Company; 
  
 (xvi) all expenses of organizing, modifying or dissolving
the Company or any Subsidiary and costs preparatory to entering into a business or activity, or of winding up or disposing of a business activity of the Company or its Subsidiaries; 
  
 (xvii) all expenses relating to payments of dividends or interest or distributions in cash or any other form
made or caused to be made by the Board of Directors to or on account of holders of the securities of the Company or any Subsidiary, including, without limitation, in connection with any dividend reinvestment plan; 
  
 (xviii) all expenses relating to any office or office
facilities maintained by the Company or any Subsidiary, exclusive of the main office of the Manager, including, without limitation, rent, telephone, utilities, office furniture, equipment, machinery and other office expenses for any persons employed
by the Company; 
  

 11 

 (xix) all costs and expenses related to the design and maintenance of the Company’s
web site or sites and associated with any computer software or hardware that is used primarily for the Company; 
  
 (xx) all other expenses actually incurred by the Manager or its Affiliates or their respective officers, employees, representatives or
agents, or any Affiliates thereof, which are reasonably necessary for the performance by the Manager of its duties and functions under this Agreement (including, without limitation, any fees or expenses relating to the Company’s compliance with
all governmental and regulatory matters); 
  
 (xxi) the Company’s pro rata portion of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses of the Manager and its Affiliates required for the Company’s operations,
which for the first twelve (12) months from the date hereof shall not exceed $1.2 million; and 
  
 (xxii) all other expenses of the Company or any Subsidiary that are not the responsibility of the Manager under Section 8(a) of this
Agreement. 
  
 (c) The Company may engage the Manager or its
Affiliates to provide the Other Services. The Manager or its Affiliates shall be paid or reimbursed for the costs of providing the Other Services; provided that such costs and reimbursements are at costs no greater than would be paid to
outside professionals, consultants or other third parties on an arm’s length basis. Such arrangements may also be made using an income sharing arrangement such as a joint venture. Payment or reimbursement in connection with the provision of
Other Services by the Manager or its Affiliates to the Company shall generally be payable monthly within 10 days after receipt of a statement prepared by the Manager documenting the payments, costs and reimbursements. 
  
 (d) Costs and expenses incurred by the Manager on behalf of the Company shall
be reimbursed monthly to the Manager. The Manager shall prepare a written statement in reasonable detail documenting the costs and expenses of the Company and those incurred by the Manager on behalf of the Company during each month, and shall
deliver such written statement to the Company, with a copy to the Board of Directors of the Company, within thirty (30) days after the end of each month. The Company shall pay all amounts payable to the Manager pursuant to this Section 8(d) within
three (3) business days after the receipt of the written statement without demand, deduction, offset or delay. Cost and expense reimbursement to the Manager shall be subject to adjustment at the end of each calendar year in connection with the
annual audit of the Company. 
  
 Section 9. Limits of the
Manager’s Responsibility The Manager assumes no responsibility under this Agreement other than to render the services called for hereunder in good faith and shall not be responsible for any action of the Board of Directors in following or
declining to follow any advice or recommendations of the Manager, including as set forth in Section 6 of this Agreement. The Manager and its Affiliates, and the directors, officers, employees and stockholders of the Manager and its Affiliates will
not be liable to the Company, any Subsidiary, the Unaffiliated Directors, the Company’s stockholders or any Subsidiary’s stockholders for any acts or omissions performed in accordance with and pursuant to this 

  

 12 

 
Agreement, except by reason of acts constituting bad faith, willful misconduct, gross negligence or reckless disregard of their duties under this Agreement.
The Company or a Subsidiary shall reimburse, indemnify and hold harmless the Manager, its Affiliates, and the directors, officers, employees and stockholders of the Manager and its Affiliates of and from any and all expenses, losses, damages,
liabilities, demands, charges and claims of any nature whatsoever, (including reasonable attorneys’ fees) (collectively “Losses”) in respect of or arising from any acts or omissions of the Manager, its Affiliates, and the directors,
officers, employees and stockholders of the Manager and its Affiliates performed in good faith under this Agreement and not constituting bad faith, willful misconduct, gross negligence or reckless disregard of its duties. 
  
 (b) The Manager shall reimburse, indemnify and hold harmless the Company, its
Affiliates, and the directors, officers, employees and stockholders of the Company and its Affiliates, of and from any and all Losses in respect of or arising from the Manager’s bad faith, willful misconduct, gross negligence or reckless
disregard for its duties under this Agreement. 
  
 Section 10.
No Joint Venture The Company and the Manager are not partners or joint venturers with each other and nothing herein shall be construed to make them such partners or joint venturers or impose any liability as such on either of them. 

 
 Section 11. Term; Termination Without Cause; Unfair Compensation
(a) Initial Term. This Agreement shall become effective on the Closing Date and shall continue in operation, unless terminated in accordance with the terms hereof, until the second anniversary of the Closing Date (the “Initial
Term”). 
  
 (b) Automatic Renewal Terms. After the
Initial Term, this Agreement shall be deemed renewed automatically each year for an additional one-year period (an “Automatic Renewal Term”) unless the Company or the Manager terminates the Agreement in accordance with Section 11(c) of
this Agreement. 
  
 (c) Termination or Nonrenewal of the
Manager Without Cause. Notwithstanding any other provision of this Agreement to the contrary, after the expiration of the Initial Term and upon 180 days’ prior written notice to the Manager (the “Company Termination
Notice”), the Company may, without cause, (i) terminate this Agreement or (ii) in connection with the expiration of the Initial Term or any Automatic Renewal Term, decline to renew this Agreement (any such termination or nonrenewal, a
“Termination Without Cause”); provided that the Company shall be obligated to pay the Manager the Termination Fee within 90 days of a Termination Without Cause. In the Company Termination Notice, the Company shall specify the
date, not less than 180 days from the date of the Company Termination Notice, on which this Agreement shall terminate (the “Effective Termination Date”). In the event of a Termination Without Cause, such termination or nonrenewal
shall be without any further liability or obligation of either party to the other, except as provided in Section 14 of this Agreement. 
  
 (d) Unfair Manager Compensation. The Company may terminate this Agreement or in connection with the expiration of the Initial Term or any Automatic
Renewal Term decline to renew this Agreement for any reason in accordance with the terms and provisions of Section 11(c). If such reason arises from a decision made by a majority vote of the Unaffiliated Directors that the Base Management Fee
payable to the Manager is unfair, the 

  

 13 

 
Company shall not have the foregoing termination right in the event the Manager agrees to continue to perform its duties hereunder at a fee that the
Unaffiliated Directors determine to be fair; provided, however, the Manager shall have the right to renegotiate the Management Fee by delivering to the Company, not less than 120 days prior to the pending Effective Termination Date, written notice
(a “Notice of Proposal to Negotiate”) of its intention to renegotiate the Base Management Fee. Thereupon, the Company and the Manager shall endeavor to negotiate the Base Management Fee in good faith. Provided that the Company and
the Manager agree to a revised Base Management Fee (or other compensation structure) within sixty (60) days following the Company’s receipt of the Notice of Proposal to Negotiate, the Company Termination Notice shall be deemed of no force and
effect, and this Agreement shall continue in full force and effect on the terms stated herein, except that the Base Management Fee (or other compensation structure) shall be the revised Base Management Fee (or other compensation structure) then
agreed upon by the Company and the Manager. The Company and the Manager agree to execute and deliver an amendment to this Agreement setting forth such revised Base Management Fee (or other compensation structure) promptly upon reaching an agreement
regarding same. In the event that the Company and the Manager are unable to agree to a revised Base Management Fee (or other compensation structure) during such sixty (60) day period, this Agreement shall terminate on the Effective Termination Date.
The Company’s obligation to pay the Termination Fee set forth in Section 11(c) shall survive the termination of this Agreement. 
  
 Section 12. Assignments This Agreement may not be assigned (within the meaning of the Investment Advisers Act of 1940, as amended, and the rules
and regulations thereunder) by either party hereto, in whole or in part, and shall terminate automatically (without the payment of the Termination Fee if the termination is the result of an assignment by the Manager) in the event of any such
assignment, unless such assignment is consented to in writing by the other party; provided, however, that the Manager may delegate to one or more of its Affiliates performance of any of its responsibilities hereunder so long as
it remains liable for any such Affiliate’s performance. 
  
 Section 13. Termination of the Manager for Cause At the option of the Company and at any time during the term of this Agreement, this Agreement shall be and become terminated upon 60 days’ written notice of termination from the
Board of Directors to the Manager, without payment of the Termination Fee, if any of the following events shall occur: 
  
 (i) the Manager shall commit a material breach of any provision of this Agreement (including the failure of the Manager to use reasonable
efforts to comply with the Company’s investment policy and guidelines), which such material breach continues uncured for a period of 60 days after written notice of such breach; 
  
 (ii) the Manager shall commit any act of fraud, misappropriation of funds, or embezzlement against the
Company in its corporate capacity (as distinguished from the acts of any employees of the Manager which are taken without the complicity of the board of directors or executive officers of the Manager) or shall be grossly negligent in the performance
of its duties under this Agreement; 
  

 14 

 (iii) (A) the Manager shall commence any case, proceeding or other action (1) under any
existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts, or (2) seeking appointment of a receiver, trustee, custodian, conservator or other
similar official for it or for all or any substantial part of its assets, or the Manager shall make a general assignment for the benefit of its creditors; or (B) there shall be commenced against the Manager any case, proceeding or other action of a
nature referred to in clause (A) above which (1) results in the entry of an order for relief or any such adjudication or appointment or (2) remains undismissed, undischarged or unbonded for a period of 90 days; or (C) the Manager shall take any
action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (A) or (B) above; or (D) the Manager shall generally not, or shall be unable to, or shall admit in writing its inability to,
pay its debts as they become due; or 
  
 (iv)
upon a Change of Control in the Manager. 
  
 If any of the events specified in the
preceding clause (ii) shall occur, the Manager shall give prompt written notice thereof to the Board of Directors. 
  
 Section 14. Action Upon Termination From and after the effective date of termination of this Agreement pursuant to Sections 11, 12, or 13 of this
Agreement, the Manager shall not be entitled to compensation for further services hereunder, but shall be paid all compensation accruing to the date of termination and, if terminated or not renewed, pursuant to Section 11, the Termination Fee. Upon
any such termination, the Manager shall forthwith: 
  
 (a) after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled, pay over to the Company or a Subsidiary all money collected and held for the account of the Company or a Subsidiary pursuant to
this Agreement; 
  
 (b) deliver to the Board of
Directors a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Board of Directors with respect to the
Company and any Subsidiaries; and 
  
 (c) deliver
to the Board of Directors all property and documents of the Company and any Subsidiaries then in the custody of the Manager. 
  
 Section 15. Release of Money or Other Property Upon Written Request The Manager agrees that any money or other property of the Company (which such
term, for the purposes of this Section, shall be deemed to include any and all of its Subsidiaries) held by the Manager shall be held by the Manager as custodian for the Company, and the Manager’s records shall be appropriately and clearly
marked to reflect the ownership of such money or other property by the Company. Upon the receipt by the Manager of a written request signed by a 

  

 15 

 
duly authorized officer of the Company requesting the Manager to release to the Company any money or other property then held by the Manager for the account
of the Company under this Agreement, the Manager shall release such money or other property to the Company within a reasonable period of time, but in no event later than 60 days following such request. The Manager shall not be liable to the Company,
the Unaffiliated Directors, or the Company’s or any Subsidiary’s stockholders or partners for any acts or omissions by the Company in connection with the money or other property released to the Company in accordance with this Section. The
Company shall indemnify the Manager, its directors, officers, stockholders, employees and agents against any and all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever, which arise in connection with the
Manager’s release of such money or other property to the Company in accordance with the terms of this Section 19. Indemnification pursuant to this provision shall be in addition to any right of the Manager to indemnification under Section 11 of
this Agreement. 
  
 Section 16. Representations and Warranties
(a) The Company hereby represents and warrants to the Manager as follows: 
  
 (i) The Company is duly organized, validly existing and in good standing under the laws of Delaware, has the corporate power and authority and the legal right to own and operate its assets, to lease the property it
operates as lessee and to conduct the business in which it is now engaged and is duly qualified as a foreign corporation and in good standing under the laws of each jurisdiction where its ownership or lease of property or the conduct of its business
requires such qualification, except for failures to be so qualified, authorized or licensed that could not in the aggregate have a material adverse effect on the business operations, assets or financial condition of the Company and its Subsidiaries,
taken as a whole. 
  
 (ii) The Company has the
corporate power and authority and the legal right to make, deliver and perform this Agreement and all obligations required hereunder and has taken all necessary corporate action to authorize this Agreement on the terms and conditions hereof and the
execution, delivery and performance of this Agreement and all obligations required hereunder. No consent of any other Person, including stockholders and creditors of the Company, and no license, permit, approval or authorization of, exemption by,
notice or report to, or registration, filing or declaration with, any governmental authority is required by the Company in connection with this Agreement or the execution, delivery, performance, validity or enforceability of this Agreement and all
obligations required hereunder. This Agreement has been, and each instrument or document required hereunder will be, executed and delivered by a duly authorized officer of the Company, and this Agreement constitutes, and each instrument or document
required hereunder when executed and delivered hereunder will constitute, the legally valid and binding obligation of the Company enforceable against the Company in accordance with its terms. 
  
 (iii) The execution, delivery and performance of this
Agreement and the documents or instruments required hereunder will not violate any provision of any existing law or regulation binding on the Company, or any order, judgment, award or decree of any court, arbitrator or governmental authority binding
on the Company, or the 

  

 16 

 
Governing Instruments of, or any securities issued by the Company or of any mortgage, indenture, lease, contract or other agreement, instrument or
undertaking to which the Company is a party or by which the Company or any of its assets may be bound, the violation of which would have a material adverse effect on the business operations, assets or financial condition of the Company and its
Subsidiaries taken as a whole, and will not result in, or require, the creation or imposition of any lien or any of its property, assets or revenues pursuant to the provisions of any such mortgage, indenture, lease, contract or other agreement,
instrument or undertaking. 
  
 (b) The Manager hereby represents
and warrants to the Company as follows: 
  
 (i)
The Manager is duly organized, validly existing and in good standing under the laws of Delaware, has the limited liability company power and authority and the legal right to own and operate its assets, to lease the property it operates as lessee and
to conduct the business in which it is now engaged and is duly qualified as a foreign limited liability company and in good standing under the laws of each jurisdiction where its ownership or lease of property or the conduct of its business requires
such qualification, except for failures to be so qualified, authorized or licensed that could not in the aggregate have a material adverse effect on the business operations, assets or financial condition of the Manager and its Subsidiaries, taken as
a whole. 
  
 (ii) The Manager has the limited
liability company power and authority and the legal right to make, deliver and perform this Agreement and all obligations required hereunder and has taken all necessary limited liability company action to authorize this Agreement on the terms and
conditions hereof and the execution, delivery and performance of this Agreement and all obligations required hereunder. No consent of any other Person, including members and creditors of the Manager, and no license, permit, approval or authorization
of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required by the Manager in connection with this Agreement or the execution, delivery, performance, validity or enforceability of this
Agreement and all obligations required hereunder. This Agreement has been, and each instrument or document required hereunder will be, executed and delivered by a duly authorized officer of the Manager, and this Agreement constitutes, and each
instrument or document required hereunder when executed and delivered hereunder will constitute, the legally valid and binding obligation of the Manager enforceable against the Manager in accordance with its terms. 
  
 (iii) The execution, delivery and performance of this
Agreement and the documents or instruments required hereunder will not violate any provision of any existing law or regulation binding on the Manager, or any order, judgment, award or decree of any court, arbitrator or governmental authority binding
on the Manager, or the Governing Instruments of, or any securities issued by the Manager or of any mortgage, indenture, lease, contract or other agreement, instrument or undertaking to which the Manager is a party or by which the Manager or any of
its assets may be bound, the violation of which would have a material adverse effect on the business operations, assets or financial condition of the Manager and its Subsidiaries taken as a whole, and will not result in, or require, the creation or
imposition of any lien or any of its property, assets or 

  

 17 

 
revenues pursuant to the provisions of any such mortgage, indenture, lease, contract or other agreement, instrument or undertaking. 
  
 Section 17. Miscellaneous. (a) Notices. All notices, requests
and demands to or upon the respective parties hereto to be effective shall be in writing (including by telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered, or three Business Days
after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when received, addressed as follows (or to such other address as may be hereafter notified by the respective parties hereto): 
  

			
		
	 The Company:
	 	 JER Investors Trust Inc.
 1650 Tysons Boulevard, Suite
1600
 McLean, Virginia 22102
 Attention: President
 Fax:

		
	 with a copy to:
	 	 Skadden, Arps, Slate, Meagher & Flom LLP
 4 Times
Square
 New York, New York 10036
 Attention: David J.
Goldschmidt, Esq.
 Fax: (212) 735-2000

		
	 The Manager:
	 	 JER Commercial Debt Advisors LLC
 1650 Tysons
Boulevard, Suite 1600
 McLean, Virginia 22102
 Attention:
Chairman and Chief Executive Officer Fax:

		
	 with a copy to:
	 	 Skadden, Arps, Slate, Meagher & Flom LLP
 4 Times
Square
 New York, New York 10036
 Attention: David J.
Goldschmidt, Esq.
 Fax: (212) 735-2000

  
 (b) Binding Nature
of Agreement; Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and assigns as provided herein. 
  
 (c) Integration. This Agreement contains the entire agreement and
understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with
respect to the subject matter hereof. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. 
  
 (d) Amendments. This Agreement, nor any terms hereof, may not be amended, supplemented or modified except in an
instrument in writing executed by the parties hereto. 
  

 18 

 (e) GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT
SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 
  
 (f) Survival of Representations and Warranties. All representations and warranties made hereunder, and in any document, certificate or statement
delivered pursuant hereto or in connection herewith shall survive the execution and delivery of this Agreement. 
  
 (g) No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of a party hereto, any right, remedy, power or
privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law. 
  
 (h) Costs and Expenses. Each party hereto shall bear its own costs and expenses (including the fees and disbursements
of counsel and accountants) incurred in connection with the negotiations and preparation of and the closing under this Agreement, and all matter incident thereto. 
  
 (i) Section Headings. The section and subsection headings in this Agreement are for convenience in reference only and
shall not deemed to alter or affect the interpretation of any provisions hereof. 
  
 (j) Counterparts. This Agreement may be executed by the parties to this Agreement on any number of separate counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to
constitute one and the same instrument. 
  
 (k)
Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  
 [rest of page intentionally left blank] 
  

 19 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

  

					
	 JER INVESTORS TRUST INC.

		
	 By:
	 	 /s/ Tae-Sik Yoon

	 	 	 Name:
	 	 Tae-Sik Yoon

	 	 	 Title:
	 	 Executive Vice President

	
	JER COMMERCIAL DEBT ADVISORS LLC
		
	 By:
	 	 /s/ Daniel T. Ward

	 	 	 Name:
	 	 Daniel T. Ward

	 	 	 Title:
	 	 Senior Managing Director

  

 20 

  
 Exhibit A 

 
 [Guidelines] 
  

 21 

  
 Exhibit B 

 
 [JER Conflicts policy] 
  

 22

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