Document:

Exhibit

Exhibit 10.1
Confidential materials omitted and filed separately
with the Securities and Exchange Commission.
Asterisks denote omissions.

LOAN AGREEMENT
Dated as of December 4, 2017
between
LEXICON PHARMACEUTICALS, INC.
(as Borrower),
the GUARANTOR SUBSIDIARIES from time to time party hereto,
(as Guarantors),
BIOPHARMA CREDIT PLC
(as Collateral Agent and a Lender)
and
BIOPHARMA CREDIT INVESTMENTS IV SUB LP
(as a Lender)

Confidential materials omitted and filed separately
with the Securities and Exchange Commission.
Asterisks denote omissions.

TABLE OF CONTENTS
1.    ACCOUNTING AND OTHER TERMS    1

2.    LOANS AND TERMS OF PAYMENT    1
2.1    Promise to Pay    1
2.2    Term Loans    1
2.3    Payment of Interest on the Credit Extensions    3
2.4    Expenses    4
2.5    Requirements of Law; Increased Costs    4
2.6    Taxes; Withholding, etc.    5
2.7    Additional Consideration    8
2.8    Evidence of Debt; Register; Lender’s Books and Records; Term Loan
Notes    8

3.    CONDITIONS OF TERM LOANS    9
3.1    Conditions Precedent to Effective Date    9
3.2    Conditions Precedent to Tranche A Loan and Tranche B Loan    10
3.3    Additional Conditions Precedent to Term Loans    11
3.4    Covenant to Deliver    12
3.5    Procedures for Borrowing    12

4.    REPRESENTATIONS AND WARRANTIES    12
4.1    Due Organization, Power and Authority    12
4.2    Equity Interests    13
4.3    Authorization; No Conflict; Material Contracts    13
4.4    Government Consents; Third Party Consents    14
4.5    Binding Obligation    14
4.6    Collateral    14
4.7    Adverse Proceedings, Compliance with Laws    18
4.8    Exchange Act Documents; Financial Statements; Financial
Condition; No Material Adverse Change; Books and Records    19
4.9    Solvency    19
4.10    Payment of Taxes    20
4.11    Environmental Matters    20
4.12    Regulatory Compliance    20
4.13    Margin Stock    21
4.14    Subsidiaries    21
4.15    Employee Matters    21
4.16    Use of Proceeds    21
4.17    Full Disclosure    22
4.18    FCPA; Patriot Act; OFAC    22
4.19    Insurance Contracts    23
4.20    Health Care Matters    23
4.21    Regulatory Approvals    25
4.22    Supply and Manufacturing    26

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4.23    Additional Representations and Warranties    27

5.    AFFIRMATIVE COVENANTS    27
5.1    Maintenance of Existence    27
5.2    Financial Statements, Reports, Certificates    28
5.3    Inventory; Maintenance of Properties    31
5.4    Taxes    31
5.5    Insurance    31
5.6    Operating Accounts    31
5.7    Compliance with Laws    32
5.8    Protection of Intellectual Property Rights    32
5.9    Books and Records    33
5.10    Access to Collateral; Audits    33
5.11    Use of Proceeds    34
5.12    Environmental Disclosure    34
5.13    Further Assurances    35
5.14    Additional Collateral; Guarantors    35
5.15    Formation or Acquisition of Subsidiaries    36
5.16    Post-Closing Requirements    36

6.    NEGATIVE COVENANTS    37
6.1    Dispositions    37
6.2    Fundamental Changes    37
6.3    Mergers, Liquidations or Dissolutions    38
6.4    Indebtedness    39
6.5    Encumbrance    39
6.6    No Further Negative Pledges; Negative Pledge    39
6.7    Maintenance of Collateral Accounts    41
6.8    Distributions; Investments    41
6.9    Restrictions on Subsidiary Distributions    43
6.10    Transactions with Affiliates    45
6.11    Subordinated Debt; Existing Notes    46
6.12    Amendments or Waivers of Organizational Documents    46
6.13    Fiscal Year    46
6.14    Compliance    46
6.15    Compliance with Anti-Terrorism Laws    47
6.16    Amendments or Waivers of Current Company IP Agreements and
Material Contracts    47

7.    EVENTS OF DEFAULT    48
7.1    Payment Default    48
7.2    Covenant Default    48
7.3    Material Adverse Change    48
7.4    Insolvency    48
7.5    Other Agreements    49

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7.6    Judgments; Attachment; Levy; Restraint on Business    49
7.7    Misrepresentations    50
7.8    Loan Documents; Collateral    50
7.9    Subordinated Debt    50
7.10    Change of Control    50
7.11    ERISA Event    50

8.    RIGHTS AND REMEDIES UPON AN EVENT OF DEFAULT    50
8.1    Rights and Remedies    50
8.2    Application of Payments and Proceeds Upon Default    52
8.3    Protective Advances    52
8.4    Power of Attorney    52
8.5    Collateral Agent’s Liability for Collateral    53
8.6    No Waiver; Remedies Cumulative    53
8.7    Demand Waiver; Makewhole Amount; Prepayment Premium    53

9.    NOTICES.    54

10.    CHOICE OF LAW, VENUE, AND JURY TRIAL WAIVER    56

11.    GENERAL PROVISIONS    56
11.1    Successors and Assigns    56
11.2    Indemnification; Costs and Expenses    57
11.3    Severability of Provisions    58
11.4    Correction of Loan Documents    58
11.5    Amendments in Writing; Integration    59
11.6    Counterparts    59
11.7    Survival    59
11.8    Confidentiality    59
11.9    Right of Set-Off    60
11.10    Marshalling; Payments Set Aside    60
11.11    Electronic Execution of Documents    60
11.12    Captions    61
11.13    Construction of Agreement    61
11.14    Third Parties    61
11.15    No Advisory or Fiduciary Duty    61

12.    COLLATERAL AGENT    62
12.1    Appointment and Authority    62
12.2    Rights as a Lender    62
12.3    Exculpatory Provisions    62
12.4    Reliance by Collateral Agent    63
12.5    Delegation of Duties    63
12.6    Resignation of Collateral Agent    63
12.7    Non-Reliance on Collateral Agent and Other Lenders    64

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12.8    Collateral and Guaranty Matters    64
12.9    Reimbursement by Lenders    65
12.10    Notices and Items to Lenders    66

13.    DEFINITIONS    66
13.1    Definitions    66

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LOAN AGREEMENT
THIS LOAN AGREEMENT (this “Agreement”), dated as of December 4, 2017 by and among LEXICON PHARMACEUTICALS, INC. (f/k/a Lexicon Genetics Incorporated), a Delaware corporation (as “Borrower”), the GUARANTOR SUBSIDIARIES from time to time party hereto, as Guarantors, BIOPHARMA CREDIT PLC, a public limited company incorporated under the laws of England and Wales (as “Collateral Agent” and a “Lender”) and BIOPHARMA CREDIT INVESTMENTS IV SUB LP, a Cayman Islands limited partnership (as a “Lender”), provides the terms on which each Lender shall make, and Borrower shall repay, the Credit Extensions (as hereinafter defined).  The parties hereto agree as follows:
1.ACCOUNTING AND OTHER TERMS
Except as otherwise expressly provided herein, all accounting terms not otherwise defined in this Agreement shall have the meanings assigned to them in conformity with Applicable Accounting Standards.  Calculations and determinations must be made following Applicable Accounting Standards.  No change in the accounting principles used in the preparation of any financial statement hereafter adopted by Borrower (including any change in Applicable Accounting Standards that would require leases that would be classified as operating leases under Applicable Accounting Standards on the Effective Date to be reclassified as capital leases) shall be given effect for purposes of measuring compliance with any provision of Section 6 unless Borrower and the Collateral Agent agree to modify such provisions of Section 6 to reflect such changes in Applicable Accounting Standards and such provisions are so modified, in which case all financial statements, Compliance Certificates and similar documents provided hereunder shall, solely with respect to the first delivery after such change, be provided together with a reconciliation between the calculations and amounts set forth therein before and after giving effect to such change in Applicable Accounting Standards.  Capitalized terms defined in this Agreement shall have the meanings set forth in Section 13, unless otherwise indicated herein.
2.LOANS AND TERMS OF PAYMENT
2.1    Promise to Pay.
Borrower hereby unconditionally promises to pay Lenders, the outstanding principal amount of the Term Loans advanced to Borrower by Lenders and accrued and unpaid interest thereon and any other amounts due hereunder as and when due in accordance with this Agreement.
2.2    Term Loans.
(a)Availability.  Subject to the terms and conditions of this Agreement (including Sections 3.1, 3.2, 3.3 and 3.5, as applicable):
(i)Tranche A Loan.  Each Lender severally agrees to make a term loan to Borrower on the Tranche A Closing Date (collectively, the “Tranche A Loan”) in a principal amount equal to such Lender’s Tranche A Commitment; and

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(ii)Tranche B Loan.  At Borrower’s option, each Lender severally agrees to make a term loan to Borrower on the Tranche B Closing Date (collectively, the “Tranche B Loan”) in a principal amount equal to such Lender’s Tranche B Commitment.
No portion of a Term Loan may be re-borrowed once repaid.
(b)Repayment.  The Term Loans, including all unpaid principal thereunder, are due and payable in full on the Term Loan Maturity Date.  The Term Loans may be prepaid only in accordance with Section 2.2(c), except as provided in Section 8.1.
(c)Prepayment of Term Loans.
(i)Borrower shall have the option, at any time after the Tranche A Closing Date, to prepay, in whole and not in part, the Term Loans advanced by Lenders under this Agreement, provided that (A) Borrower shall provide written notice to the Collateral Agent of its election (which shall be irrevocable unless (i) the written notice with respect to such prepayment states that such prepayment is conditioned upon the consummation of a particular transaction or set of transactions and such transaction or transactions are not consummated or are otherwise delayed or (ii) the Collateral Agent otherwise consents in writing) to prepay all of the Term Loans, which such notice shall include the amount of the Tranche A Loan and the amount of the Tranche B Loan to be prepaid, at least five (5) Business Days prior to such prepayment and (B) such prepayment shall be accompanied by any and all accrued and unpaid interest on the principal amount to be prepaid to the date of prepayment and any amounts payable pursuant to Section 2.2(e) or Section 2.2(f) (as applicable) and all other amounts payable or accrued and not yet paid under this Agreement and the other Loan Documents.  The Collateral Agent will promptly notify each Lender of its receipt of each such notice, and the amount of such Lender’s Applicable Percentage of such prepayment.
(ii)Upon a Change of Control, Borrower shall promptly, and in any event no later than ten (10) days after the consummation of such Change of Control, notify the Collateral Agent in writing of the occurrence of a Change of Control, which notice shall include reasonable detail as to the nature, timing and other circumstances of such Change of Control (such notice, a “Change of Control Notice”).  Borrower shall prepay the Term Loans in full, no later than ten (10) Business Days after delivery to Lender of the Change of Control Notice, in an amount equal to (A) the sum of all unpaid principal and any and all accrued and unpaid interest with respect to the Term Loans, and (B) such prepayment shall be accompanied by any amounts payable pursuant to Section 2.2(e) or Section 2.2(f) (as applicable) and all other amounts payable or accrued and not yet paid under this Agreement and the other Loan Documents.  The Collateral Agent will promptly notify each Lender of its receipt of the Change of Control Notice, and the amount of such Lender’s Applicable Percentage of such prepayment.
(iii)Upon a non-ordinary course Transfer permitted under Section 6.1(f) with respect to which any Credit Party receives net cash proceeds, individually or when aggregated with any other such Transfers, in excess of $10,000,000, Borrower shall promptly

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, and in any event no later than ten (10) days after the consummation of such Transfer, notify the Collateral Agent in writing of the occurrence of such Transfer, which notice shall include reasonable detail as to the nature, timing and other circumstances of such Transfer (such notice, a “Non-Ordinary Course Transfer Notice”).  Borrower shall prepay the Term Loans, in whole or in part, no later than ten (10) Business Days after delivery to the Collateral Agent of the Non-Ordinary Course Transfer Notice, in an amount equal to the sum of all net cash proceeds of such Transfer or Transfers (as the case may be); provided that such net cash proceeds shall be applied to any amounts payable pursuant to Section 2.2(e) or Section 2.2(f) (as applicable) and all other amounts payable or accrued and not yet paid under this Agreement and the other Loan Documents in accordance with clause (d) below.  The Collateral Agent will promptly notify each Lender of its receipt of a Non-Ordinary Course Transfer Notice, and the amount of such Lender’s Applicable Percentage of such prepayment.
(d)Prepayment Application.  Any prepayment of the Term Loans pursuant to Section 2.2(c) (together with the accompanying Makewhole Amount or Prepayment Premium that is payable pursuant to Section 2.2(e) or Section 2.2(f), as applicable) shall be paid to Lenders in accordance with their respective Applicable Percentages for application to the Obligations in the following order:  (i) first, to due and unpaid Lender Expenses, (ii) second, to accrued and unpaid interest at the Default Rate (as applicable), (iii) third, to accrued and unpaid interest at the non-Default Rate, (iv) fourth, to the Prepayment Premium, if applicable, (v) fifth, to the Makewhole Amount, if applicable, (vi) sixth, to the outstanding principal amount of the Term Loans being prepaid and (vii) seventh, to any remaining Obligations then due and payable under this Agreement.  For the avoidance of doubt, to the extent there is any surplus after Payment in Full, such surplus shall be retained by Borrower (or returned by the Lenders to the Borrower, as the case may be) and shall not be payable hereunder, and to the extent such prepayment is not sufficient for Payment in Full, any deficiency shall continue to constitute Obligations hereunder.
(e)Makewhole Amount.  Any prepayment of the Term Loans by Borrower (i) pursuant to Section 2.2(c) or (ii) as a result of the acceleration of the maturity of the Term Loans pursuant to Section 8.1(a) occurring prior to the 36th-month anniversary of the Tranche A Closing Date shall, in any such case, be accompanied by payment of an amount equal to the Makewhole Amount.
(f)Prepayment Premium.  Any prepayment of the Term Loans by Borrower (i) pursuant to Section 2.2(c) or (ii) as a result of the acceleration of the maturity of the Term Loans pursuant to Section 8.1(a) shall, in any such case, be accompanied by payment of an amount equal to the Prepayment Premium.
2.3    Payment of Interest on the Credit Extensions.
(a)    Interest Rate.
(i)Subject to Section 2.3(b), the principal amount outstanding under the Term Loans shall accrue interest at a per annum rate (which rate shall be fixed for the duration 

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of each Term Loan) equal to nine percent (9.00%) per annum, which interest shall be payable quarterly in arrears in accordance with this Section 2.3.
(ii)Interest shall accrue on each Term Loan commencing on, and including, the day on which such Term Loan is made, and shall not accrue on such Term Loan, or any portion thereof, for the day on which such Term Loan or such portion is paid.
(b)    Default Rate.  Immediately upon the occurrence and during the continuance of an Event of Default (and without notice to Borrower or demand by the Collateral Agent or any Lender for payment thereof), the Obligations shall bear interest at a rate per annum which is [**] percentage points ([**]%) above the rate that is otherwise applicable thereto (the “Default Rate”), and such interest shall be payable entirely in cash on demand of the Collateral Agent or any Lender.  Payment or acceptance of the increased interest rate provided in this Section 2.3(b) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of the Collateral Agent or any Lender.
(c)    360-Day Year.  Interest shall be computed on the basis of a year of 360 days and the actual number of days elapsed.
(d)    Payments.  Except as otherwise expressly provided herein, all payments of the Term Loans by Borrower hereunder shall be made to such bank account of each Lender as such Lender (or the Collateral Agent on its behalf) may designate by notice from time to time to Borrower on the dates and at the times specified herein.  Interest is payable quarterly on each Payment Date.  Payments of principal or interest received after 2:00 p.m. on any Payment Date are considered received at the opening of business on the next Business Day.  When any payment is due on a Payment Date that falls on a day that is not a Business Day, such payment is due on the next Business Day thereafter and additional fees or interest, as applicable, shall continue to accrue until paid.  All payments to be made by Borrower hereunder or under any other Loan Document, including payments of principal and interest made hereunder and pursuant to any other Loan Document, and all fees, expenses, indemnities and reimbursements, shall be made without set-off, recoupment or counterclaim, in lawful money of the United States and in immediately available funds.
2.4    Expenses.  Borrower shall pay to each Lender and the Collateral Agent, as applicable, all of such Person’s Lender Expenses incurred through and after the Effective Date as provided in Section 3.2) and otherwise promptly, and in no event later than ten (10) Business Days after receipt of a written demand therefor by such Lender or the Collateral Agent (with, in a case of a demand by any Lender, a copy of such demand to the Collateral Agent) setting forth in reasonable detail such Person’s Lender Expenses.
2.5    Requirements of Law; Increased Costs.  In the event that any applicable Change in Law:
(a)    does or shall subject any Lender to any Tax of any kind whatsoever with respect to this Agreement or the Term Loans made hereunder (except, in each case, Indemnified Taxes, Taxes described in clause (b) through (d) of the definition of Excluded Taxes, and Connection Income Taxes);

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(b)    does or shall impose, modify or hold applicable any reserve, capital requirement, special deposit, compulsory loan or similar requirements against assets held by, or deposits or other liabilities in or for the account of, advances or loans by, or other credit extended by, or any other acquisition of funds by, any Lender; or
(c)    does or shall impose on any Lender any other condition (other than Taxes); and the result of any of the foregoing is to increase the cost to such Lender (as determined by such Lender in good faith using calculation methods customary in the industry) of making, renewing or maintaining the Term Loans or to reduce any amount receivable in respect thereof or to reduce the rate of return on the capital of such Lender or any Person controlling such Lender,
then, in any such case, Borrower shall promptly pay to the applicable Lender, upon its receipt of the certificate described below, any additional amounts necessary to compensate such Lender for such additional cost or reduced amounts receivable or rate of return as reasonably determined by such Lender with respect to this Agreement or the Term Loans made hereunder.  If any Lender becomes entitled to claim any additional amounts pursuant to this Section 2.5, it shall promptly notify Borrower in writing of the event by reason of which it has become so entitled (with a copy of such notice to the Collateral Agent), and a certificate as to any additional amounts payable pursuant to the foregoing sentence containing the calculation thereof in reasonable detail submitted by such Lender to Borrower (with a copy of such certificate to the Collateral Agent) shall be conclusive in the absence of manifest error.  The provisions hereof shall survive the termination of this Agreement and Payment in Full.  Failure or delay on the part of any Lender to demand compensation for any increased costs, reduction in amounts received or receivable, or reduction in return on capital under this Section 2.5 shall not constitute a waiver of such Lender’s right to demand such compensation; provided that Borrower shall not be under any obligation to compensate such Lender under this Section 2.5 with respect to any such amounts arising in any period for which notice is not delivered within 180 days; provided, however, that the foregoing limitation shall not apply to any increased costs or reductions arising out of the retroactive application of any Change in Law within such 180-day period.
2.6    Taxes; Withholding, etc.
(a)    All sums payable by any Credit Party hereunder and under the other Loan Documents shall (except to the extent required by Requirements of Law) be paid free and clear of, and without any deduction or withholding on account of, any Tax imposed, levied, collected, withheld or assessed by any Governmental Authority.  In addition, Borrower agrees to pay, and shall indemnify and hold each Lender harmless from, Other Taxes in accordance with clause (b) below and if paid by Borrower directly to such Governmental Authority, Borrower shall furnish to each Lender (as applicable, with a copy to the Collateral Agent) the original or certified copy of a receipt evidencing payment thereof or other evidence of such payment reasonably satisfactory to the Lenders promptly following the date of such payment.
(b)    If any Credit Party or any other Person is required by Requirements of Law to make any deduction or withholding on account of any Tax from any sum paid or payable by any Credit Party to any Lender under any of the Loan Documents: (i) Borrower shall notify such Lender in writing (with a copy to the Collateral Agent) of any such requirement or change in any such 

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requirement promptly after Borrower becomes aware of it; (ii) Borrower shall make any such withholding or deduction; (iii) Borrower shall pay any such Tax before the date on which penalties attach thereto, such payment to be made (if the liability to pay is imposed on any Credit Party) for its own account or (if that liability is imposed on Lender, as the case may be) on behalf of and in the name of such Lender in accordance with applicable Law; (iv) if the Tax is an Indemnified Tax, the sum payable by such Credit Party in respect of which the relevant deduction, withholding or payment of Indemnified Tax is required shall be increased to the extent necessary to ensure that, after the making of that deduction, withholding or payment (including any deductions for Indemnified Taxes applicable to additional sums payable under this Section 2.6(b)), such Lender receives on the due date a net sum equal to what it would have received had no such deduction, withholding or payment of Indemnified Tax been required or made; and (v) as soon as practicable Borrower shall deliver to such Lender (with a copy to the Collateral Agent) evidence reasonably satisfactory to such Lender of such deduction, withholding or payment and of the remittance thereof to the relevant taxing or other Governmental Authority.  Borrower shall indemnify each Lender for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section 2.6(b)) paid by such Lender and any liability (including penalties, interest and reasonable expenses) arising therefrom or with respect thereto whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  Any indemnification payment pursuant to this Section 2.6 shall be made to the applicable Lender within thirty (30) days from written demand therefor.
(c)    If any Lender is organized under the laws of the United States of America or any state thereof, such Lender shall deliver to Borrower two (2) properly completed and duly executed copies of Internal Revenue Service Form W-9.  If any Lender is not a “United States person” (as such term is defined in Section 7701(a)(30) of the IRC) for U.S. federal income Tax purposes, such Lender shall deliver, and shall cause each applicable assignee thereof to deliver, to Borrower, on or prior to, the Tranche A Closing Date and, the date on which a Lender Transfer occurs, as applicable, and at such other times as may be necessary in the determination of Borrower (in the reasonable exercise of its discretion), two (2) properly completed and duly executed copies of Internal Revenue Service Form W-8BEN, W-8BEN-E, W-8ECI or W-8IMY (along with Form W-9, W-8BEN-E or W-8BEN for each beneficial owner that will receive, directly or indirectly, a payment of principal, interest, fees or other amounts payable under any of the Loan Documents), or any successor forms, and such other documentation required under the IRC and reasonably requested by Borrower to establish the appropriate amount of any deduction or withholding of United States federal Tax, if any, with respect to any payments to such Lender of principal, interest, fees or other amounts payable under any of the Loan Documents, including any such additional documentation reasonably requested by Borrower as may be necessary for Borrower to comply with its obligations under FATCA.  If any Lender is required to deliver any forms, statements, certificates or other evidence with respect to United States federal Tax or backup withholding matters pursuant to this Section 2.6(c), such Lender hereby agrees, from time to time after the initial delivery by such Lender of such forms, certificates or other evidence, whenever a lapse in time, change in circumstances or law, or additional guidance by a Governmental Authority renders such forms, certificates or other evidence obsolete or inaccurate in any material respect, to promptly deliver to Borrower two (2) new original copies of Internal Revenue Service Form W-8BEN, W-8BEN-E W-8ECI, W-9 or W-8IMY (along with Internal Revenue Service Forms W-9, W-8BEN-E or 

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W-8BEN for each beneficial owner for whom it expects to receive a payment), or any successor form, as the case may be, properly completed and duly executed by such Lender, and such other documentation required under the IRC and reasonably requested by Borrower to confirm or establish the extent to which such Lender is or is not subject to deduction, backup withholding or withholding of United States federal Tax with respect to payments to such Lender under the Loan Documents, or notify Borrower of its inability under Requirements of Law to deliver any such forms, certificates or other evidence.  If any Lender is claiming an exemption from United States withholding Tax pursuant to the “portfolio interest exemption”, it shall provide Borrower with the applicable Internal Revenue Service Form W-8 and a certificate as reasonably requested by Borrower certifying such Lender’s entitlement thereto.  Borrower shall not be required to pay any additional amount to any Lender under Section 2.6(b)(iii) if such Lender shall have failed (1) to timely deliver to Borrower the forms, certificates or other evidence referred to in this Section 2.6(c) (each of which shall be complete, accurate and duly executed), or (2) to notify Borrower of its inability to deliver any such forms, certificates or other evidence, as the case may be; provided that, if such Lender shall have satisfied the requirements of the first sentence or the second sentence of this Section 2.6(c), as applicable, on the Tranche A Closing Date (or on the date such Lender initially acquires an interest in a Term Loan), nothing in this last sentence of this Section 2.6(c) shall relieve Borrower of its obligations to pay the applicable Lender any additional amounts pursuant to this Section 2.6 in the event that, solely as a result of any change in any Requirements of Law or any change in the interpretation, administration or application thereof by any applicable Governmental Authority, such Lender is no longer legally entitled to deliver forms, certificates or other evidence at a subsequent date establishing the fact that such Lender is not subject to withholding as described herein and in the forms, certificates or other evidence initially provided by such Lender.
(d)    If any party hereto determines that it has received a refund of any Taxes or a credit or offset for any Taxes as to which it has been indemnified pursuant to this Section 2.6 (including by the payment of additional amounts pursuant to this Section 2.6), it shall pay to the indemnifying party an amount equal to such refund, credit or offset (but only to the extent of indemnity payments made, or additional amounts paid, under this Section 2.6 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund).  Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this clause (d) in the event that such indemnified party is required to repay, credit or offset such refund to such Governmental Authority and the requirement to repay such refund to such Governmental Authority is not due to the indemnified party’s failure to timely provide complete and accurate Internal Revenue Service forms and other documentation required pursuant to Section 2.6(c) or Section 2.8.  Notwithstanding anything to the contrary in this clause (d), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this clause (d) if the payment of such amount would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the indemnification payments or additional amounts giving rise to such refund had never been paid.  This clause (d) shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

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2.7    Additional Consideration.  As additional consideration for the obligation to make the Term Loans and the making of one or both of the Term Loans, (a) on the Tranche A Closing Date, Borrower shall pay to each Lender an amount equal to such Lender’s Applicable Percentage of [**] Dollars ($[**]), and (ii) on the Tranche B Closing Date, Borrower shall pay to each Lender an amount equal to such Lender’s Applicable Percentage of [**] Dollars ($[**]) (collectively, the “Additional Consideration”).  The Additional Consideration shall be fully earned when paid and shall not be refundable for any reason whatsoever, and such Additional Consideration shall be treated as original issue discount for U.S. federal income tax purposes.
2.8    Evidence of Debt; Register; Lender’s Books and Records; Term Loan Notes.
(a)    Lenders’ Evidence of Debt; Register.  Notwithstanding anything herein to the contrary, Borrower hereby designates the Collateral Agent to serve as Borrower’s agent solely for purposes of maintaining at all times at the Collateral Agent’s principal office a “book entry system” as described in IRC Treasury Regulation Section 5f.103-1(c)(1)(ii) that identifies each beneficial owner that is entitled to a payment of principal and stated interest on the Term Loans (the “Register”) so that each Term Loan is at all times in “registered form” as described in IRC Treasury Regulations Section 5f.103-1(c).  The Collateral Agent is hereby authorized by Borrower to record in the manual or data processing records of the Collateral Agent, the date and amount of each advance and the amount of the outstanding Obligations and the date and amount of each repayment of principal and each payment of interest or otherwise on account of the Obligations.  Absent manifest error, such records of the Collateral Agent shall be conclusive as to the outstanding principal amount of the total outstanding Obligations, and the payment of interest, principal and other sums due hereunder; provided, however, that the failure of the Collateral Agent to make any such record entry with respect to any payment shall not limit or otherwise affect the obligations of Borrower under the Loan Documents.  Each Term Loan: (i) shall, pursuant to this clause (a), be also registered as to both principal and any stated interest with Borrower or its agent, and (ii) may be transferred by any Lender only by (1) surrender of the Note(s) issued to such Lender and either (x) the reissuance by Borrower of such Note(s) to the new Lender or (y) the issuance by Borrower of one or more new Note(s) to the new Lender, or (2) confirmation with Borrower that the right to the principal and stated interest on such Term Loan is maintained through the book entry system kept by the Collateral Agent.  Each Lender, severally and not jointly, represents that any interest that may become due and owing under this Agreement qualifies for the portfolio interest exception from withholding on interest payments pursuant to IRC Sections 871(h) and 881(c).
(b)    Term Loan Notes.  Borrower shall execute and deliver to each Lender (or, if applicable, to any Person who is an assignee of such Lender pursuant to Section 11.1 hereof) to evidence such Lender’s Term Loan(s) (i) on the Tranche A Closing Date, the Tranche A Note, and (ii) on the Tranche B Closing Date (if any), the Tranche B Note.  Upon Payment in Full, the Notes shall be deemed cancelled and of no further force and effect and shall be promptly returned to Borrower or otherwise destroyed by Lenders; provided that, if either the Tranche A Note or the Tranche B Note is repaid in full prior to Payment in Full, this sentence shall only apply to such Note repaid.

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3.CONDITIONS OF TERM LOANS
3.1    Conditions Precedent to Effective Date.  Each Lender’s obligation to advance its Applicable Percentage of the Tranche A Loan is subject to the satisfaction (or waiver in accordance with Section 11.5 hereof) of the following conditions:
(a)The Collateral Agent shall have received:
(i)copies of the Loan Documents (including the Disclosure Letter and the Collateral Documents but excluding any Control Agreements or bailee waivers, as applicable, described in Schedule 5.16 of the Disclosure Letter) executed and delivered by each applicable Credit Party, as applicable;
(ii)(x) true, correct and complete copies of the Operating Documents of each of the Credit Parties, and (y) a Secretary’s Certificate, dated the Effective Date, certifying that the foregoing copies are true, correct and complete (such Secretary’s Certificate to be in form and substance reasonably satisfactory to the Collateral Agent) and attaching Borrowing Resolutions with respect to the Loan Documents and the Term Loans for each Credit Party, in form and substance reasonably satisfactory to the Collateral Agent;
(iii)the Perfection Certificate for Borrower and its Subsidiaries, in form and substance reasonably satisfactory to the Collateral Agent;
(iv)a good standing certificate for each Credit Party, certified by the Secretary of State (or the equivalent thereof) of the State of incorporation (or formation if applicable) of such Credit Party as of a date no earlier than thirty (30) days prior to the Tranche A Closing Date;
(v)an opinion of Vinson & Elkins LLP, counsel to Borrower, addressed to the Collateral Agent and each Lender, in form and substance reasonably satisfactory to the Collateral Agent;
(vi)evidence that the insurance policies required by Section 5.5 hereof are in full force and effect, together with appropriate evidence showing loss payable or additional insured clauses or endorsements in favor of the Collateral Agent for the benefit of Lenders and the other Secured Parties (such evidence to be in form and substance reasonably satisfactory to the Collateral Agent, it being understood that “under written contract” or similar general endorsements shall be reasonably satisfactory to the Collateral Agent);
(vii)all documentation and other information required by bank regulatory authorities under applicable “know-your-customer” and anti-money laundering rules and regulations, including the U.S.A. Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”);

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(viii)a certificate of the Executive Vice President, Corporate and Administrative Affairs and Chief Financial Officer of Borrower, substantially in the form of Exhibit D attached hereto, attesting that, as of the Effective Date, after giving effect to the transactions occurring on such date, including the incurrence of Indebtedness under the Tranche A Note, that Borrower and its Subsidiaries, on a consolidated basis, are Solvent;
(ix)a certificate, dated the Effective Date and signed by a Responsible Officer of Borrower, confirming satisfaction of the conditions precedent set forth in this Section 3.1 (such certificate to be in form and substance reasonably satisfactory to the Collateral Agent);
(x)a certificate, dated the Effective Date and signed by a Responsible Officer of Borrower, confirming there is no litigation, public or private, or administrative proceeding, governmental investigation or other legal or regulatory development, pending or, to the Knowledge of Borrower, threatened, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Change, except as set forth on Schedule 4.7 of the Disclosure Letter (such certificate to be in form and substance reasonably satisfactory to the Collateral Agent); and
(xi)(i) the audited consolidated financial statements and the related audited consolidated statements of operations, cash flows and changes in equity of Borrower and its Subsidiaries as at December 31, 2016; (ii) the unaudited consolidated balance sheets and the related unaudited consolidated statements of operations, cash flows and changes in equity of Borrower and its Subsidiaries as of the fiscal quarters ended March 31, 2017, June 30, 2017 and September 30, 2017; and (iii) for the interim period from the most recent audited period to the Effective Date, the unaudited consolidated balance sheets (including the notes thereto) for each monthly period completed at least thirty (30) days prior to the Effective Date; provided, however, that the filing of the required financial statements on Form 10-K and Form 10-Q with, and in accordance with the requirements of the SEC by Borrower will constitute receipt by Lender of the financial statements described in clauses (i) and (ii) above.
(b)each Credit Party shall have obtained all Governmental Approvals and all consents of other Persons, in each case that are necessary or advisable in connection with the transactions contemplated by the Loan Documents and each of the foregoing shall be in full force and effect and in form and substance reasonably satisfactory to the Collateral Agent.  All applicable waiting periods shall have expired without any action being taken or threatened by any competent authority which would restrain, prevent or otherwise impose adverse conditions on the transactions contemplated by the Loan Documents or the financing thereof and no action, request for stay, petition for review or rehearing, reconsideration, or appeal with respect to any of the foregoing shall be pending, and the time for any applicable agency to take action to set aside its consent on its own motion shall have expired; and
3.2    Conditions Precedent to Tranche A Loan and Tranche B Loan.  Each Lender’s obligation to advance its Applicable Percentage of the Tranche A Loan and Tranche B Loan, as 

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applicable, is subject to the satisfaction (or waiver in accordance with Section 11.5 hereof) of the following conditions:
(a)    The Collateral Agent shall have received:
(i)The Tranche A Note or Tranche B Note, executed by Borrower, as applicable;
(ii)a Payment/Advance Form in accordance with Section 3.5, delivered (A) at least two (2) Business Days before the Tranche A Closing Date (or such shorter period as may be agreed to by the Collateral Agent) and (B) at least twenty (20) Business Days’ before the Tranche B Closing Date, as applicable;
(iii)solely as a condition to the Tranche B Closing Date: (A) a certificate, dated the Tranche B Closing Date and signed by a Responsible Officer of Borrower, confirming that there is no litigation, public or private, or administrative proceeding, governmental investigation or other legal or regulatory development pending or, to the Knowledge of Borrower, threatened, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Change, except as set forth on Schedule 4.7 of the Disclosure Letter (such certificate to be in form and substance reasonably satisfactory to the Collateral Agent); (B) Borrowing Resolutions with respect to the Tranche B Loans for Borrower, in form and substance reasonably satisfactory to the Collateral Agent; and (C) a certificate, dated the Tranche B Closing Date and signed by a Responsible Officer of Borrower, confirming satisfaction of the conditions precedent set forth in this Section 3.2 and Section 3.3 (such certificate to be in form and substance reasonably satisfactory to the Collateral Agent);
(iv)an update to the Disclosure Letter dated as of the Tranche A Closing Date or Tranche B Closing Date, as applicable, if and to the extent any update thereto is necessary; provided that, in no event, may the Disclosure Letter be updated in a manner that would constitute a Default under Section 4 or an Event of Default under Section 7.7 but for such update; and 
(b)    Lender Expenses and other fees then due as specified in Section 2.4 hereof shall have been paid to the extent invoiced at least one (1) Business Day prior to the Tranche A Closing Date and Tranche B Closing Date, as applicable.
3.3    Additional Conditions Precedent to Term Loans.  The obligation of each Lender to advance its Applicable Percentage of each Term Loan is subject to the following additional conditions precedent:
(a)    the representations and warranties made by the Credit Parties in Section 4 of this Agreement and in the other Loan Documents shall be true and correct in all material respects, unless any such representation or warranty is stated to relate to a specific earlier date, in which case such representation or warranty shall be true and correct in all material respects as of such earlier date (it being understood that any representation or warranty that is qualified as to “materiality,” 

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“Material Adverse Change,” or similar language shall be true and correct in all respects, in each case, on the date on which each Term Loan is made (both with and without giving effect to such Term Loan) or as of such earlier date, as applicable; and
(b)    there shall not have occurred (i) any Material Adverse Change or (ii) any Default or Event of Default.
3.4    Covenant to Deliver.  Borrower and each other Credit Party agrees to deliver to the Collateral Agent each item required to be delivered to the Collateral Agent under this Agreement as a condition precedent to any Credit Extension; provided, however, that any such items set forth on Schedule 5.16 of the Disclosure Letter shall be delivered to the Collateral Agent in the manner and within the time period prescribed therefor on such schedule.  Borrower and each other Credit Party expressly agrees that a Credit Extension made prior to the receipt by the Collateral Agent of any such item shall not constitute a waiver by the Collateral Agent or any Lender of the Credit Parties’ obligation to deliver such item, and the making of any Credit Extension in the absence of a required item shall be in the Collateral Agent’s sole discretion.
3.5    Procedures for Borrowing.  Subject to the prior satisfaction of all other applicable conditions to the making of each Term Loan set forth in this Agreement, to obtain any Term Loan, Borrower shall deliver to the Collateral Agent by electronic mail or facsimile a completed Payment/Advance Form in the form of Exhibit A hereto for such Term Loan executed by a Responsible Officer of Borrower, or his or her designee.
4.REPRESENTATIONS AND WARRANTIES
In order to induce each Lender and the Collateral Agent to enter into this Agreement and for Lenders to make the Credit Extensions to be made on the Tranche A Closing Date and, if applicable, the Tranche B Closing Date, each of Borrower and each other Credit Party, jointly and severally, represents and warrants to each Lender and the Collateral Agent that the following statements are true and correct as of the Effective Date and on the date on which each Term Loan is made (both with and without giving effect to the Term Loan):
4.1    Due Organization, Power and Authority.  Each Credit Party and each of its Subsidiaries (a) is duly incorporated, organized or formed, and validly existing and, where applicable, in good standing under the laws of its jurisdiction of incorporation, organization or formation identified on Schedule 4.1 of the most recently updated as required hereunder of (i) the Disclosure Letter and (ii) any Perfection Certificate updated in accordance with Section 4.6(a), (b) has all requisite power and authority to (i) own, lease, license and operate its assets and properties and to carry on its business as currently conducted and (ii) execute and deliver the Loan Documents to which it is a party and to perform its obligations thereunder and otherwise carry out the transactions contemplated thereby, (c) is duly qualified and, where applicable, in good standing under the laws of each jurisdiction where its ownership, lease, license or operation of assets or properties or the conduct of its business requires such qualification, and (d) has all requisite Governmental Approvals to operate its business as currently conducted; except for clause (a) (other than with respect to Borrower and any other Credit Party), (b)(i) or (c) or (d) above, to the extent that any failure to be 

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in compliance could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change.
4.2    Equity Interests.  All of the outstanding Equity Interests (other than Excluded Equity Interests) in Borrower and each of its Subsidiaries have been duly authorized and validly issued, are fully paid and, in the case of Equity Interests (other than Excluded Equity Interests) representing corporate interests, are non-assessable and, on the Tranche A Closing Date, all Equity Interests (other than Excluded Equity Interests) owned directly or indirectly by Borrower or any other Credit Party are owned free and clear of all Liens except for Permitted Liens.  As of the Tranche A Closing Date, Schedule 4.2 of the Disclosure Letter identifies each Person, the Equity Interests (other than Excluded Equity Interests) of which are required to be pledged on the Tranche A Closing Date pursuant to the Collateral Documents, and except as set forth on Schedule 4.2 of the Disclosure Letter, there is no existing option, warrant, call, right, commitment or other agreement to which Borrower or any of its Subsidiaries is a party requiring, and there is no membership interest or other Equity Interests (other than Excluded Equity Interests) of Borrower or any of its Subsidiaries outstanding which upon conversion or exchange would require, the issuance by such Person of any additional Equity Interests (other than Excluded Equity Interests).
4.3    Authorization; No Conflict; Material Contracts.  Except as set forth on Schedule 4.3(a) of the Disclosure Letter, the execution, delivery and performance by each Credit Party of the Loan Documents to which it is a party, and the consummation of the transactions contemplated thereby, (a) have been duly authorized by all necessary corporate or other organizational action and (b) do not and will not (i) contravene the terms of any of such Credit Party’s Operating Documents, (ii) conflict with or result in any breach or contravention of, or require any payment to be made under (A) any Material Contract or (B) any material order, writ, judgment, injunction, decree, determination or award of any Governmental Authority by which such Credit Party or any of its properties or assets are subject, (iii) result in the creation of any Lien (other than under the Loan Documents) or (iv) violate any material Requirements of Law, except, in the cases of clauses (b)(ii) and (b)(iv) above, to the extent that such conflict, breach, contravention, payment or violation could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Change.  After giving effect to the consummation of the transactions contemplated by this Agreement, except as described on Schedule 4.3(b) of the Disclosure Letter, each Material Contract is a valid and binding obligation of the applicable Credit Party or its Subsidiaries and, to the Knowledge of each Credit Party or any of its Subsidiaries, each other party thereto, and is in full force and effect, and neither the applicable Credit Party or Subsidiary nor, to the Knowledge of each Credit Party or any of its Subsidiaries, any other party thereto is in breach thereof or default thereunder that could, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change.  Except as set forth on Schedule 4.3(b) of the Disclosure Letter, no Credit Party or any of its Subsidiaries has received any written notice from any party thereto asserting or, to the Knowledge of each Credit Party or any of its Subsidiaries threatening to assert, the cancellation, termination or invalidation of any Material Contract.

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4.4    Government Consents; Third Party Consents.  No Governmental Approval or other approval, consent, exemption or authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with (a) the execution, delivery or performance by, or enforcement against, any Credit Party of this Agreement or any other Loan Document, or for the consummation of the transactions contemplated hereby or thereby, (b) the grant by any Credit Party of the Liens granted by it pursuant to the Collateral Documents, (c) the perfection or maintenance of the Liens created under the Collateral Documents (including the priority thereof) or (d) the exercise by the Collateral Agent or any Lender of its rights under the Loan Documents or the remedies in respect of the Collateral pursuant to the Collateral Documents, except for (i) filings necessary to perfect the Liens on the Collateral granted by the Credit Parties to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties, (ii) the approvals, consents, exemptions, authorizations, actions, notices and filings which have been duly obtained, taken, given or made and are in full force and effect and (iii) those approvals, consents, exemptions, authorizations or other actions, notices or filings, the failure of which to obtain or make could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change.
4.5    Binding Obligation.  Each Loan Document has been duly executed and delivered by each Credit Party that is a party thereto and constitutes a legal, valid and binding obligation of such Credit Party, enforceable against such Credit Party in accordance with its respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by general principles of equity.
4.6    Collateral.  In connection with this Agreement, each Credit Party has delivered to the Collateral Agent a completed certificate signed by such Credit Party (the “Perfection Certificate”), and:
(a)with respect to each Credit Party and each of its Subsidiaries, (i) its exact legal name is that indicated on the Perfection Certificate and on the signature page hereof; (ii) it is an organization of the type and is organized in the jurisdiction set forth in the Perfection Certificate; (iii) the Perfection Certificate accurately sets forth its organizational identification number or accurately states that it has none; (iv) the Perfection Certificate accurately sets forth its place of business, or, if more than one, its chief executive office as well as its mailing address (if different than its chief executive office); (v) it (and each of its predecessors) has not, in the past five (5) years, changed its jurisdiction of formation, organizational structure or type, or any organizational number assigned by its jurisdiction other than as set forth in the Perfection Certificate; and (vi) all other information set forth on the Perfection Certificate pertaining to it and each of its Subsidiaries is accurate and complete (it being understood and agreed that each Credit Party may from time to time update certain information in its Perfection Certificate after the Effective Date to reflect any subsequent changes).  If any Credit Party is not now a Registered Organization but later becomes one, it shall promptly notify the Collateral Agent of such occurrence and provide the Collateral Agent with such Credit Party’s organizational identification number.  The Collateral Agent hereby agrees that the Perfection Certificate shall be updated or deemed to be updated to reflect information provided in any notice delivered by any Credit Party to the Collateral Agent pursuant to 

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Section 6.2(b); provided that any such update to the Perfection Certificate shall not relieve any Credit Party of any other Obligation under this Agreement.
(b)(i) each Credit Party has good title to, has rights in, and the power to transfer each item of the Collateral upon which it purports to grant a Lien hereunder or under any Collateral Document, free and clear of any and all Liens except Permitted Liens, (ii) each Credit Party has no deposit accounts, securities accounts, commodity accounts or other investment accounts other than the deposit accounts, securities accounts, commodity accounts or other investment accounts described in the Perfection Certificate delivered to Lender in connection herewith, or of which such Credit Party has given the Collateral Agent written notice and taken such actions (unless such account is an Excluded Account) as are necessary to give the Collateral Agent, in favor and for the benefit of Lenders and the other Secured Parties, a perfected security interest therein (and upon delivery of such notice and taking such action, the Perfection Certificate will be deemed to be updated with the information contained in such notice), and (iii) Collateral is not in the possession of any third party bailee (such as a warehouse) except as otherwise provided in the Perfection Certificate or as permitted pursuant to Section 6.2(c).  None of the components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate or as permitted pursuant to Section 6.2(c).
(c)All Inventory of each Credit Party and each of its Subsidiaries of any Product is in all material respects of good and marketable quality, free from material defects.
(d)A true, correct and complete list of all pending, registered or issued Patents, Copyrights and Trademarks, relating to the manufacture, use, sale or supply of Products and which, as of the Effective Date, are owned by or exclusively licensed to any Credit Party or any of its Subsidiaries or that any Credit Party or any of its Subsidiaries has the right to acquire or license (the “Current Company IP”), including the name/title, current owner, registration or application number, and registration or application date (and such other information as reasonably requested by Lender, if any) is set forth on Schedule 4.6(d) of the Disclosure Letter.  Except as set forth on Schedule 4.6(d) of the Disclosure Letter, (i) to the Knowledge of Borrower, each item of Current Company IP which is owned by any Credit Party or any of its Subsidiaries is valid and subsisting and no such Intellectual Property has lapsed, expired, been cancelled or become abandoned and (ii) to the Knowledge of Borrower, each such item of Current Company IP which is licensed by any Credit Party or any of its Subsidiaries from another Person is valid and subsisting and has not been denied, rejected or invalidated, lapsed, expired, been cancelled or become abandoned.  To the Knowledge of Borrower, there are no published patents, patent applications, articles or prior art references that would reasonably be expected to materially adversely affect the validity or enforceability of any of the Patents within the Current Company IP.  Except as set forth on Schedule 4.6(d) of the Disclosure Letter, each Person who has or has had any ownership rights in or to any Current Company IP or any trade secrets owned by any Credit Party or any of its Subsidiaries, including each inventor named on the Patents within such Current Company IP filed by any Credit Party or any of its Subsidiaries, has executed an agreement assigning his, her or its entire right, title and interest in and to such Current Company IP and such trade secrets, and the inventions, improvements, ideas, discoveries, writings, works of authorship, information and other intellectual property embodied, described or claimed therein, to the stated owner thereof and, to the 

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Knowledge of Borrower, no such Person has any contractual or other obligation that would preclude or conflict with such assignment or the exploitation of any Product or entitle such Person to ongoing payments.
(e)Except for the Permitted Licenses: (i) each Credit Party or any of its Subsidiaries possesses sole, exclusive and valid title to the Current Company IP for which it is listed as the owner on Schedule 4.6(d) of the Disclosure Letter; and (ii) there are no Liens on or to any Current Company IP, other than Permitted Liens.
(f)There are no maintenance, annuity or renewal fees that are currently overdue beyond their allotted grace period for any of the Current Company IP which is owned by or exclusively licensed to any Credit Party or any of its Subsidiaries, nor, to the Knowledge of Borrower have any applications or registrations therefor lapsed or become abandoned, been cancelled or expired, in each case, other than as could not reasonably be expected to result in a Material Adverse Change.  To the Knowledge of Borrower, there are no maintenance, annuity or renewal fees that are currently overdue beyond their allotted grace for any of the Current Company IP which is not owned by or exclusively licensed to any Credit Party or any of its Subsidiaries, nor, to the Knowledge of Borrower, have any applications or registrations therefor lapsed or become abandoned, been cancelled or expired, in each case other than as could not reasonably be excepted to result in a Material Adverse Change.
(g)Schedule 4.6(g) of the Disclosure Letter sets forth a true, correct and complete list of all material agreements pursuant to which any Credit Party or any of its Subsidiaries has the legal right to exploit Current Company IP that is owned by another Person for the manufacture, use, sale or supply of any Product (the “Current Company IP Agreements”).  There are no unpaid fees or royalties under any Current Company IP Agreement that have become due, or are expected to become overdue, as of the Effective Date.  Each Current Company IP Agreement is in full force and effect and, to the Knowledge of Borrower, is legal, valid, binding, and enforceable in accordance with its respective terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability.  No Credit Party is in breach of or default under any Current Company IP Agreement to which it is a party and, to the Knowledge of Borrower, no circumstances or grounds exist that would give rise to a claim of breach or right of rescission, termination, non-renewal, revision, or amendment of any of the Current Company IP Agreements, including the execution, delivery and performance of this Agreement and the other Loan Documents.
(h)No payments by any Credit Party or any of its Subsidiaries are due to any other Person in respect of the Current Company IP, other than pursuant to the Current Company IP Agreements, the Permitted Licenses and those fees payable to patent offices in connection with the prosecution and maintenance of the Current Company IP and associated attorney fees.
(i)No Credit Party or any of its Subsidiaries has undertaken or omitted to undertake any acts, and, to the Knowledge of Borrower, no circumstance or grounds exist that would invalidate, reduce or eliminate, in whole or in part, (i) the enforceability or scope of any Current Company IP, or (ii) in the case of Current Company IP owned or exclusively licensed by any Credit Party or any of its Subsidiaries other than with respect to Permitted Liens and except as set forth 

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on Schedule 4.6(i) of the Disclosure Letter, such Credit Party’s or Subsidiary’s entitlement to exclusively own or license and exploit the Current Company IP.
(j)Except as set forth on Schedule 4.7 of the Disclosure Letter or advised pursuant to Section 5.2(b), there is no pending, decided or settled opposition, interference proceeding, reissue proceeding, reexamination proceeding, inter-partes review proceeding, post-grant review proceeding, cancellation proceeding, injunction, lawsuit, hearing, investigation, complaint, arbitration, mediation, demand, International Trade Commission investigation, decree, or any other dispute, disagreement, or claim, in each case alleged in writing to any Credit Party or any of its Subsidiaries (collectively referred to hereinafter as “Specified Disputes”), nor, to the Knowledge of Borrower, has any such Specified Dispute been threatened in writing, in each case challenging the legality, validity, enforceability or ownership of any Current Company IP.  Except as noted on Schedule 4.6(j) of the Disclosure Letter, to the Knowledge of Borrower, there is no patent or patent application of any third party that could potentially interfere with a Patent within the Current Company IP.
(k)Except as noted on Schedule 4.6(k) of the Disclosure Letter or for Restricted Licenses entered into in compliance with Section 5.8(b), no Credit Party or any of its Subsidiaries is a party to, nor is it bound by, any Restricted License.
(l)Except as noted on Schedule 4.6(l) of the Disclosure Letter, any and all Products made, used or sold under the Patents within the Current Company IP have been marked with the proper patent notice.
(m)In each case where a Patent within the Current Company IP is held by any Credit Party or any of its Subsidiaries by assignment, the assignment has been duly recorded with the U.S. Patent and Trademark Office and all similar offices and agencies anywhere in the world in which foreign counterparts are registered or issued.
(n)There are no material pending or, to the Knowledge of Borrower, threatened (in writing) claims against any Credit Party or any of its Subsidiaries alleging (i) that any of the operation of the business or any activity by any Credit Party or any of its Subsidiaries, or manufacture, sale, offer for sale, importation, or use of any Product infringes or violates (or in the past infringed or violated) the rights of others in or to any Intellectual Property (“Third Party IP”) or constitutes a misappropriation of (or in the past constituted a misappropriation of) any subject matter of any Third Party IP or that any of the Current Company IP is invalid or unenforceable, or (ii) that any Current Company IP is invalid or unenforceable.
(o)To the Knowledge of Borrower, neither the operation of the business or any activity by any Credit Party or any of its Subsidiaries, nor the manufacture, use, importation, offer for sale or sale of any Product, infringes or violates (or in the past infringed or violated) any Third Party IP (including any Patent within the Third Party IP) or constitutes a misappropriation of (or in the past constituted a misappropriation of) any subject matter of any Third Party IP, except as could not reasonably be expected to result in a Material Adverse Change.

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(p)Except as noted on Schedule 4.6(p) of the Disclosure Letter, no Credit Party or any of its Subsidiaries has entered into any agreement to indemnify any other Person against any claim of infringement or misappropriation of any Intellectual Property, except as could not reasonably be expected to result in a Material Adverse Change.
(q)Except as noted on Schedule 4.6(q) of the Disclosure Letter, there are no settlements, covenants not to sue, consents, judgments, or orders or similar obligations that: (i) restrict the rights of any Credit Party or any of its Subsidiaries to use any Company IP, (ii) restrict the business of any Credit Party or any of its Subsidiaries, in order to accommodate a third party’s Intellectual Property, or (iii) permit third parties to use any Company IP.
(r)To the Knowledge of Borrower, (i) there is no, nor has there been any, material infringement or violation by any Person of any of the Company IP or the rights therein or thereto of any Credit Party or any of its Subsidiaries, and (ii) there is no, nor has there been any, material misappropriation by any Person of any of the Company IP or the subject matter thereof.
(s)Each Credit Party each of and its Subsidiaries has taken all commercially reasonable security measures to protect the confidentiality and value of all trade secrets owned by such Credit Party or Subsidiary used or held for use by such Credit Party or Subsidiary in the business of such Credit Party or Subsidiary.
(t)Each Credit Party and each of its Subsidiaries, in connection with any collection or use of personally identifiable information, uses commercially reasonably efforts to comply with all applicable statutes and regulations in all relevant jurisdictions and its publicly available privacy policy (if any) relating to the collection, storage, use and onward transfer of all personally identifiable information collected by such Credit Party or Subsidiary or by third parties having authorized access to databases or other records of such Credit Party or Subsidiary.
(u)Each Credit Party and each of its Subsidiaries has security measures in place to protect information relating to its customers (“Customer Data”) under its and its service providers’ possession or control from unauthorized access; and, to the Knowledge of Borrower, each Credit Party’s, each of its Subsidiaries’ and each of its service providers’ hardware, software, encryption, systems, policies and procedures are sufficient to protect the security and confidentiality of all Customer Data, except to the extent that any failure to have such security measures in place could not reasonably be expected to result in a Material Adverse Change.  No Credit Party or any of its Subsidiaries, or, to the Knowledge of Borrower, any of its service providers, has suffered any material breach in security that has permitted any unauthorized access to Customer Data.
4.7    Adverse Proceedings, Compliance with Laws.  Except as set forth on Schedule 4.7 of the Disclosure Letter or advised pursuant to Section 5.2(b), there are no Adverse Proceedings pending or, to the Knowledge of Borrower, threatened in writing or contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or against any Credit Party or any of its Subsidiaries or against any of their respective assets or properties or revenues that, either individually or in the aggregate, could reasonably be expected to result in a Material Adverse Change.  Neither any Credit Party nor any of its Subsidiaries (a) is in violation of any Requirements of Law (including Environmental Laws) that, individually or in the aggregate, could reasonably be expected to result 

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in a Material Adverse Change, or (b) is subject to or in default with respect to any final judgments, orders, writs, injunctions, decrees, rules or regulations of any court or any federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Change.
4.8    Exchange Act Documents; Financial Statements; Financial Condition; No Material Adverse Change; Books and Records.
(a)    The documents filed by Borrower with the SEC pursuant to the Exchange Act since January 1, 2017 (the “Exchange Act Documents”), when they were filed with the SEC, conformed in all material respects to the requirements of the Exchange Act, and none of such documents contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
(b)    The financial statements (including the related notes thereto) of Borrower and its Subsidiaries included in the Exchange Act Documents comply in all material respects with the applicable requirements of the Securities Act and the Exchange Act, as applicable, and present fairly the consolidated financial condition of Borrower and such Subsidiaries and their consolidated results of operations as of the dates indicated and the results of their operations and the changes in their cash flows for the periods specified.  Such financial statements have been prepared in conformity with Applicable Accounting Standards applied on a consistent basis throughout the periods covered thereby, except as otherwise disclosed therein and, in the case of unaudited, interim financial statements, subject to normal year-end audit adjustments and the exclusion of certain footnotes, and any supporting schedules included in the Exchange Act Documents present fairly the information required to be stated therein.  The other financial information included in the Exchange Act Documents has been derived from the accounting records of Borrower and its Subsidiaries and presents fairly the information shown thereby.
(c)    Since December 31, 2016, there shall not have occurred or failed to occur any change or event that has had or could reasonably be expected to have, either alone or in conjunction with any other change(s), event(s) or failure(s), a Material Adverse Change, except as otherwise disclosed in the Exchange Act Documents.
(d)    The Books of Borrower and each of its Subsidiaries in existence immediately prior to the Effective Date contain full, true and correct entries of all dealings and transactions in relation to its business and activities in conformity with Applicable Accounting Standards and all Requirements of Law.
4.9    Solvency.  Borrower and its Subsidiaries, on a consolidated basis, are Solvent.

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4.10    Payment of Taxes.  All U.S. federal income Tax returns and other material Tax returns and reports (or extensions thereof) of each Credit Party and each of its Subsidiaries required to be filed by any of them have been timely filed and are correct in all material respects, and all material Taxes which are due and payable by any Credit Party or any of its Subsidiaries or upon their respective properties, assets, income, businesses and franchises which are due and payable have been paid when due and payable except where the validity or amount thereof is being contested in good faith by appropriate proceedings; provided that (a) the applicable Credit Party has set aside on its books adequate reserves therefor in conformity with Applicable Accounting Standards and (b) the failure to pay such Taxes, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change.  No Credit Party knows of any material proposed Tax deficiency or assessment against it or any of its Subsidiaries which is not being actively contested by it or such Subsidiary in good faith and by appropriate proceedings; provided that such reserves or other appropriate provisions, if any, as shall be required in conformity with Applicable Accounting Standards shall have been made or provided therefor. No material claim has been made by a Tax authority in writing in a jurisdiction where any Credit Party does not pay Taxes or file Tax returns that such Credit Party is subject to Taxes assessed by such jurisdiction.
4.11    Environmental Matters.  Neither any Credit Party nor any of its Subsidiaries nor any of their respective Facilities or operations are subject to any outstanding written order, consent decree or settlement agreement with any Person relating to any Environmental Law, any Environmental Claim, or any Hazardous Materials Activity that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Change.  Neither any Credit Party nor any of its Subsidiaries has received any letter or request for information under Section 104 of the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9604) or any comparable state law.  There are and, to the Knowledge of Borrower, have been, no conditions, occurrences, or Hazardous Materials Activities which could reasonably be expected to form the basis of an Environmental Claim against any Credit Party or any of its Subsidiaries that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Change.  Compliance by any Credit Party or any of its Subsidiaries with all current or reasonably foreseeable future requirements pursuant to or under Environmental Laws could not, individually or in the aggregate, be reasonably expected to result in a Material Adverse Change.  No event or condition has occurred or is occurring with respect to any Credit Party or any of its Subsidiaries relating to (i) any Environmental Law, (ii) any past or present Release of Hazardous Materials, or (iii) any past or present Hazardous Materials Activity which, in the case of each of clause (i), (ii) or (iii), individually or together with any other such event or condition, has resulted in, or could reasonably be expected to result in, a Material Adverse Change.
4.12    Regulatory Compliance.  No Credit Party is or is required to be an “investment company”, and no Credit Party is a company “controlled” by an “investment company”, under the Investment Company Act of 1940, as amended.  Each Credit Party has complied in all material respects with the Federal Fair Labor Standards Act.  Except as could not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Change, each Plan is in compliance with the applicable provisions of ERISA, the IRC and other U.S. federal or state Requirements of Law, respectively.  (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) neither any Credit Party nor any ERISA Affiliate has incurred, or reasonably expects to 

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incur, any liability (and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under Section 4201 et seq. of ERISA with respect to a Multiemployer Plan; and (iii) neither any Credit Party nor any ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or 4212(c) of ERISA, except, with respect to each of clauses (i), (ii) and (iii) above, as could not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Change.
4.13    Margin Stock.  No Credit Party is engaged, nor will it engage, principally or as one of its important activities, in the business of extending credit for the purpose of “purchasing” or “carrying” any “margin stock” as such terms are defined in Regulation U of the Federal Reserve Board as now and from time to time hereafter in effect (such securities being referred to herein as “Margin Stock”).  No Credit Party owns any Margin Stock, and no proceeds of the Credit Extensions will be used, directly or indirectly, for the purpose of purchasing or carrying any Margin Stock, for the purpose of reducing or retiring any Indebtedness that was originally incurred to purchase or carry any Margin Stock or for any other purpose that might cause the Term Loans or other extensions of credit under this Agreement to be considered a “purpose credit” within the meaning of Regulations T, U or X of the Federal Reserve Board.  No Credit Party or any of its Subsidiaries will take or permit to be taken any action that might cause any Loan Document to violate any regulation of the Federal Reserve Board.
4.14    Subsidiaries.  As of the Tranche A Closing Date, neither Borrower nor any other Credit Party has any Subsidiaries other than those specifically disclosed in Schedule 4.14 of the Disclosure Letter.  As of the Tranche A Closing Date, Schedule 4.14 of the Disclosure Letter (a) sets forth the name and jurisdiction of incorporation, organization or formation of each Subsidiary of Borrower and (b) sets forth the ownership interest of Borrower and any other Credit Party in each of their respective Subsidiaries, including the percentage of such ownership.
4.15    Employee Matters.  Neither any Credit Party nor any of its Subsidiaries is engaged in any unfair labor practice that could reasonably be expected to result in a Material Adverse Change.  There is (a) no unfair labor practice complaint pending against any Credit Party or any of its Subsidiaries, or to the Knowledge of Borrower, threatened in writing against any of them before the National Labor Relations Board and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement that is so pending against any Credit Party or any of its Subsidiaries or to the Knowledge of Borrower, threatened in writing against any of them, (b) no strike or work stoppage in existence or, to the Knowledge of Borrower, threatened in writing involving any Credit Party or any of its Subsidiaries, and (c) to the Knowledge of Borrower, no union representation question existing with respect to the employees of any Credit Party or any of its Subsidiaries and, to the Knowledge of Borrower, no union organization activity that is taking place that, individually or together with any other matter specified in clause (a) or (b) above or this clause (c), could reasonably be expected to result in a Material Adverse Change.
4.16    Use of Proceeds.  Borrower shall use the proceeds of the Credit Extensions for working capital and general corporate purposes and not for any other purposes.

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4.17    Full Disclosure.  No representation or warranty of any Credit Party contained in any Loan Document or in any other documents, certificates or written statements furnished to the Collateral Agent or any Lender by or on behalf of any Credit Party for use in connection with the transactions contemplated hereby contains any untrue statement of a material fact or omits to state a material fact (to the Knowledge of Borrower, in the case of any document not furnished by it) necessary in order to make the statements contained herein or therein, not misleading in light of the circumstances in which the same were made.  Any projections and pro forma financial information contained in such materials are based upon good faith estimates and assumptions believed by the Credit Party furnishing such materials to be reasonable at the time made; it being understood that (a) such projections are as to future events and are not to be viewed as facts and are subject to significant uncertainties and contingencies, many of which are beyond the control of such Credit Party, (b) no assurance can be given that any particular projections will be realized and that actual results during the period or periods covered by any such projections may differ significantly from the projected results and (c) such differences may be material.  To the Knowledge of Borrower, there are no facts (other than matters of a general economic nature) that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Change and that have not been disclosed herein or in such other documents, certificates and statements furnished to the Collateral Agent or Lenders for use in connection with the transactions contemplated hereby.
4.18    FCPA; Patriot Act; OFAC.
(a)    None of Borrower, its Subsidiaries or, to the Knowledge of Borrower, any director, officer, agent or employee or Borrower or any Subsidiary of Borrower has (i) used any corporate funds of Borrower or any of its Subsidiaries for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity, (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds of Borrower or any of its Subsidiaries, (iii) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment, and no part of the proceeds of any Credit Extension will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage or (iv) taken any other action, in each case, in violation of the FCPA.
(b)    (i) The operations of Borrower and its Subsidiaries are and have been conducted at all times in compliance in all material respects with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the Bank Secrecy Act of 1970, as amended by Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001 and the money laundering laws, rules and regulations of each jurisdiction (foreign or domestic) in which Borrower or any of its Subsidiaries is subject to such jurisdiction’s Requirements of Law (collectively, the “Money Laundering Laws”) and (ii) no non-frivolous action, suit or proceeding by or before any Governmental Authority or any arbitrator involving Borrower or any of its Subsidiaries with respect to the Money Laundering Laws is pending or threatened in writing.

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(c)    None of Borrower, its Subsidiaries or, to the Knowledge of Borrower, any director, officer, agent or employee of Borrower or any Subsidiary of Borrower is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”) or imposed by the Trading with the Enemy Act, 50 U.S.C. App. 1 et seq.  Borrower will not, directly or, to the Knowledge of Borrower, indirectly through an agent, use the proceeds of the Credit Extension, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other Person, for the purpose of financing the activities of any Person currently subject to any U.S. sanctions administered by OFAC.
4.19    Insurance Contracts.  Schedule 4.19 of the Disclosure Letter contains a true, correct and complete list of all insurance companies (which, for the avoidance of doubt, does not include TRICARE) with which any Credit Party or any of its Subsidiaries has agreed to contracted reimbursement pricing for any Product as of the Effective Date.
4.20    Health Care Matters.
(a)    Compliance with Health Care Laws.  Each Credit Party and each of its Subsidiaries and each of their respective officers, agents and employees acting on its behalf is in compliance in all material respects with all Health Care Laws applicable to such Credit Party or Subsidiary, its products and its properties or other assets or its business or operations.
(b)    Compliance with FDA Laws (and Foreign Equivalents).  Each Credit Party and each of its Subsidiaries is in compliance in all material respects with all applicable FDA Laws, including those related to the adulteration or misbranding of products within the meaning of Sections 501 and 502 of the Food Drug and Cosmetics Act (“FDCA”), and all applicable statutes, rules, and regulations administered or issued by any foreign Governmental Authority, relating to any Product.  (i) None of the Products currently being commercialized are articles which may not be introduced into interstate commerce pursuant to the requirements of the FDCA (or any applicable foreign equivalent), subject to obtaining the requisite approvals therefor, (ii) to the extent required by the FDCA (or any applicable foreign equivalent) each Product has been manufactured in all material respects in accordance with current FDA Good Manufacturing Practices (or any applicable foreign equivalent), and (iii) each Product required to be approved or cleared by the FDA pursuant to the FDCA has been so approved or cleared prior to the first commercial sale thereof.
(c)    Material Statements.  None of the Credit Parties, its Subsidiaries nor any officer, employee or agent thereof, has made an untrue statement of a material fact or fraudulent statement to any Governmental Authority, failed to disclose a material fact to any Governmental Authority, or committed an act, made a statement, or failed to make a statement that, at the time such disclosure was made, could reasonably be expected to constitute a material violation of any Health Care Law.
(d)    Proceedings; Audits.  To the Knowledge of Borrower, there are no facts, circumstances or conditions that would reasonably be expected to form the basis for any material investigation, suit, claim, audit, action (legal or regulatory) or proceeding (legal or regulatory) by a Governmental Authority pending or threatened in writing against any Credit Party relating to any 

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of the Health Care Laws, FDA Laws or any applicable statutes, rules, standards, policies, orders or regulations administered or issued by any foreign Governmental Authority.
(e)    Prohibited Transactions.  None of the Credit Parties, its Subsidiaries or any of their respective officers or employees, or, to the Knowledge of Borrower, any other Person acting on behalf of any Credit Party or any of its Subsidiaries, directly or indirectly: (i) offered or paid any remuneration, in cash or in kind, to, or made any financial arrangements with, any past, present or potential patient, supplier, physician, or contractor, in order to illegally obtain business or payments from such Person in material violation of any Health Care Law; (ii) has given or agreed to give, made, or is party to any illegal agreement to make, any illegal gift or gratuitous payment of any kind, nature or description (whether in money, property or services) to any past, present or potential patient, supplier, physician, contractor, or any other Person in material violation of any Health Care Law; (iii) made or agreed to make, or is party to any agreement to make on behalf of any Credit Party, any contribution, payment or gift of funds or property to, or for the private use of, any governmental official, employee or agent where either the contribution, payment or gift or the purpose of such contribution, payment or gift is or was a material violation of the laws of any Governmental Authority having jurisdiction over such payment, contribution or gift; (iv) established or maintained any unrecorded fund or asset for any purpose or made any materially misleading, false or artificial entries on any of its books or records for any reason; or (v) made, or agreed to make, or is party to any agreement to make, any payment to any Person with the intention or understanding that any part of such payment would be in material violation of any Health Care Law or that was used or given for any purpose other than that described in the documents supporting such payment.  To the Knowledge of Borrower, there are no actions pending or threatened (in writing) against any Credit Party or any of its Subsidiaries or any of their respective Affiliates under any federal or state whistleblower statute, including under the False Claims Act of 1863 (31 U.S.C. § 3729 et seq.).
(f)    Exclusion.  None of the Credit Parties or their Subsidiaries, nor any officer, agent or employee having authority to act on behalf of any Credit Party or any of its Subsidiaries has been, or, to the Knowledge of Borrower, has been threatened (unless such threat is frivolous, as reasonably determined in good faith by a Responsible Officer of Borrower) in writing to be, (i) excluded from any Governmental Payor Program pursuant to 42 U.S.C. § 1320a-7b and related regulations, (ii) “suspended” or “debarred” from selling any products to the U.S. government or its agencies pursuant to the Federal Acquisition Regulation, relating to debarment and suspension applicable to federal government agencies generally (42 C.F.R. Subpart 9.4), or other Requirements of Law, (iii) debarred, disqualified, suspended or excluded from participation in Medicare, Medicaid or any other health care program or is listed on the General Services Administration list of excluded parties, nor, to the Knowledge of Borrower, is any such debarment, disqualification, suspension or exclusion threatened or pending, or (iv) made a part to any other action by any Governmental Authority that may prohibit the applicable Credit Party or Subsidiary from selling any Products or providing any services to any governmental or other purchaser pursuant to any Health Care Laws.
(g)    HIPAA.  Each Credit Party and each of its Subsidiaries, to the extent applicable, is in material compliance with all applicable foreign, federal, state and local laws and regulations regarding the privacy and security of health information and electronic transactions, 

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including HIPAA, and the provisions of all business associate agreements (as such term is defined by HIPAA) to which it is a party and has implemented adequate policies, procedures and training designed to assure continued compliance and to detect non-compliance.  To the extent applicable to any Credit Party and for so long as (i) any Credit Party is a “covered entity” as defined in 45 C.F.R. § 160.103, (ii) any Credit Party is a “business associate” as defined in 45 C.F.R. § 160.103, (iii) any Credit Party is subject to or covered by the HIPAA Administrative Requirements codified at 45 C.F.R. Parts 160 & 162 or the HIPAA Security and Privacy Requirements codified at 45 C.F.R. Parts 160 & 164, or (iv) any Credit Party sponsors any “group health plans” as defined in 45 C.F.R. § 160.103, such Credit Party has: (A) completed thorough and detailed surveys, audits, inventories, reviews, analyses or assessments, including risk assessments, (collectively “Assessments”) of all material areas of its business and operations subject to HIPAA or that could be materially and adversely affected by the failure of such Credit Party, or any Person acting on behalf of any Credit Party, as the case may be, to the extent these Assessments are appropriate or required for such Credit Party, to be in material compliance with HIPAA; (B) developed a detailed plan and time line for becoming in material compliance with HIPAA (a “HIPAA Compliance Plan”); and (C) implemented those provisions of its HIPAA Compliance Plan necessary to ensure that such Credit Party is in material compliance with HIPAA.
(h)    Corporate Integrity Agreement.  No Credit Party or any of its Subsidiaries or, to the Knowledge of Borrower, any of their respective Affiliates, nor any officer, director, managing employee or, to the Knowledge of Borrower, agent (as those terms are defined in 42 C.F.R. § 1001.1001) thereof, is a party to, or bound by, any order, individual integrity agreement, or corporate integrity agreement with any Governmental Authority concerning compliance with any laws, rules, or regulations, issued under or in connection with a Governmental Payor Program.
4.21    Regulatory Approvals.
(a)    Each Credit Party and each of its Subsidiaries has all Regulatory Approvals necessary to conduct its business in the manner in which such business is currently conducted.  Except as made available in the Exchange Act Documents, Borrower has previously made available to Lender upon its request all Regulatory Approvals, all material correspondence with Regulatory Agencies (including the FDA and any foreign equivalent) with respect to such Regulatory Approvals, and all adverse event reports with respect to any Product and all requested documents related to any Product, in each case, in the possession and control of any Credit Party or any of its Subsidiaries.  Borrower has not withheld any document or information with respect to Product that would reasonably be considered to be material to Lender’s decision to provide the financing contemplated by this Agreement.
(b)    Each Credit Party and each of its Subsidiaries is in compliance with, and have complied with, all applicable federal, state, local and foreign laws, rules, and regulations, governing its business, including all regulations promulgated by each applicable Regulatory Agency, the failure of compliance with which could reasonably be expected to result in a Material Adverse Change.  No Credit Party or any of its Subsidiaries has received any written notice from any Regulatory Agency citing action or inaction by any Credit Party or any of its Subsidiaries that would 

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constitute a violation of any applicable federal, state, local and foreign laws, rules, or regulations, which could reasonably be expected to result in a Material Adverse Change.
(c)    Without limiting the generality of clause (b) above, to the Knowledge of Borrower, any and all studies, tests and clinical trials conducted relating to any Product have been, and are being, conducted in all material respects in accordance with current good clinical practices under FDA (and foreign equivalent) regulations (including the requirements set forth in 21 C.F.R. Part 11, Part 50, Part 54, Part 56, Part 312, Part 314, Part 320, Part 601, Part 812 and Part 814) and with other Requirements of Law at the time when conducted; the descriptions of the results of such studies, tests and clinical trials made available to Lender are accurate in all material respects; and no Credit Party or any of its Subsidiaries has received any notices or correspondence from any applicable Regulatory Agency or comparable authority requiring the termination, suspension, material modification or clinical hold of any such studies, tests or clinical trials conducted by or on behalf of a Credit Party or any of its Subsidiaries, which termination, suspension, material modification or clinical hold could reasonably be expected to result in a Material Adverse Change.
4.22    Supply and Manufacturing.
(a)    To the Knowledge of Borrower, the testing, manufacturing, production, storage, packaging, labeling and release to the market of each Product has at all times been (i) in compliance in all material respects with the final release quality specifications in effect for such Product and (ii) in compliance in all material respects with Requirements of Law.  Except as set forth on Schedule 4.22(a) of the Disclosure Letter, to the Knowledge of Borrower, no manufacturer of any Product has received in the past five (5) years a Form 483 directly relating to a Product or is currently subject to a Form 483 impacting any Product with respect to any facility manufacturing any Product and that, with respect to each such Form 483, all scientific and technical violations or other issues relating to good manufacturing practice requirements documented therein, and any disputes regarding any such violations or issues, have been corrected or otherwise resolved.  To the Knowledge of Borrower, each Product has at all times been manufactured in sufficient quantities and of a sufficient quality to satisfy demand of such Product, without the occurrence of any event causing inventory of such Product to have become exhausted prior to satisfying such demand or any other event in which the manufacture and release to the market of such Product does not satisfy the sales demand for such Product.
(b)    Schedule 4.22(b) of the Disclosure Letter contains a true, correct and complete list of all manufacturing and supply agreements entered into by any Credit Party with third parties for the commercial supply of any Product and the active pharmaceutical ingredient incorporated therein in effect as of the Effective Date (the “Manufacturing Agreements”).  Except as made available in the Exchange Act Documents, Borrower has made available to Lender upon its request true, correct and complete copies of each Manufacturing Agreement.  After giving effect to consummation of the transactions contemplated by this Agreement, except as described on Schedule 4.22(b) of the Disclosure Letter, each Manufacturing Agreement is a valid and binding obligation of the applicable Credit Party and is in full force and effect, and to the Knowledge of Borrower, is a valid and binding obligation of any other party thereto, and neither the applicable Credit Party nor, to the Knowledge of Borrower, any other party thereto is in breach thereof or 

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default thereunder.  No Credit Party has received any notice from any party thereto, oral or written, regarding (i) the cancellation, termination or invalidation of any such Manufacturing Agreement or (ii) any indication by or intent or threat of, such party, oral or written, to reduce or decrease the supply of any Product or the active pharmaceutical ingredient incorporated therein.
4.23    Additional Representations and Warranties.
(a)    There is no Indebtedness existing on the Effective Date that is senior in rank, order of priority or enforcement to the Term Loans or the security interest in and Lien upon the Collateral granted under the Security Agreement.
(b)    In connection with the Existing Senior Notes, the Borrower has not entered into any indenture or indentures supplemental to that certain Indenture, dated as of November 26, 2014, between Borrower and Wells Fargo Bank, National Association, as trustee, pursuant to Article 10 thereof, for the purpose (solely or among such other purposes) of (i) securing the Existing Senior Notes, or (ii) adding any guarantee with respect to the Existing Senior Notes that does not constitute Permitted Indebtedness hereunder.
(c)    Each Credit Party and each of its Subsidiaries has good and valid title to, or valid leasehold interests in, or easements or other limited property interests in, all assets and properties necessary in the ordinary conduct of its business, free and clear of all Liens except for minor defects in title that do not materially interfere with its ability to conduct its business or to utilize such assets for their intended purposes, Permitted Liens and any Liens and privileges arising mandatorily by Requirements of Law and, in each case, except where the failure to have such title or other interest could not reasonably be expected to result in, individually or in the aggregate, a Material Adverse Change.
(d)    No Default exists hereunder.
5.AFFIRMATIVE COVENANTS
Each Credit Party covenants and agrees that, until Payment in Full, such Credit Party shall, and shall cause each of its Subsidiaries to:
5.1    Maintenance of Existence.  (a) Preserve, renew and maintain in full force and effect its and all its Subsidiaries’ legal existence under the Requirements of Law in their respective jurisdictions of organization, incorporation or formation and (b) take all commercially reasonable action to maintain all rights, privileges (including its good standing), permits, licenses and franchises necessary or desirable for it and all of its Subsidiaries in the ordinary course of its business, except in the case of clause (a) (other than with respect to Borrower) and clause (b) above, (i) to the extent that failure to do so could not reasonably be expected to result in a Material Adverse Change or (ii) pursuant to a Transfer permitted by Section 6.1 or a transaction permitted by Section 6.3 hereof; and (c) comply with all Requirements of Law of any Governmental Authority to which it is subject, except where the failure to do so could not reasonably be expected to result, individually or in the aggregate, in a Material Adverse Change.

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5.2    Financial Statements, Reports, Certificates.  Solely in the case of Borrower, deliver to the Collateral Agent:
(a)Financial Statements; Compliance Certificate; Other Information.
(i)Annual Financial Statements.  As soon as available, but in any event within one hundred and twenty (120) days (or such earlier date on which Borrower is required to file a Form 10-K under the Exchange Act, if applicable) after the end of each fiscal year of Borrower, beginning with the fiscal year ending December 31, 2017, a consolidated balance sheet of Borrower and its Subsidiaries as of the end of such fiscal year, and the related consolidated statements of income, cash flows and stockholders’ equity for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all prepared in accordance with Applicable Accounting Standards, with such consolidated financial statements to be audited and accompanied by (x) a report and opinion of Borrower’s independent certified public accounting firm of recognized national standing (which report and opinion shall be prepared in accordance with Applicable Accounting Standards and shall not be subject to any qualification as to “going concern” or scope of audit other than a “going concern” or other qualification that results solely from the maturity of any Indebtedness under the Term Loans being scheduled to occur within one year from the time such opinion is delivered), stating that such financial statements fairly present, in all material respects, the consolidated financial condition, results of operations and cash flows of Borrower and its Subsidiaries as of the dates and for the periods specified in accordance with Applicable Accounting Standards, and (y) (if and only if Borrower is required to comply with the internal control provisions pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 requiring an attestation report of such independent certified public accounting firm) an attestation report of such independent certified public accounting firm as to Borrower’s internal controls pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 attesting that such internal controls meet the requirements of the Sarbanes-Oxley Act of 2002; provided, however, that Borrower shall be deemed to have made such delivery of such consolidated financial statements if such consolidated financial statements shall have been made available within the time period specified above on the SEC’s EDGAR system (or any successor system adopted by the SEC);
(ii)Quarterly Financial Statements.  As soon as available, but in any event within sixty (60) days (or such earlier date on which Borrower is required to file a Form 10-Q under the Exchange Act, if applicable) after the end of each of the first three (3) fiscal quarters of each fiscal year of Borrower, beginning with the fiscal quarter ending March 31, 2018, a consolidated balance sheet of Borrower and its Subsidiaries as of the end of such fiscal quarter, and the related consolidated statements of income and cash flows and for such fiscal quarter and (in respect of the second and third fiscal quarters of such fiscal year) for the then-elapsed portion of Borrower’s fiscal year, setting forth in each case in comparative form the figures for the comparable period or periods in the previous fiscal year, all prepared in accordance with Applicable Accounting Standards, subject to normal year-end audit adjustments and the absence of disclosures normally made in footnotes; provided, however, that Borrower shall be deemed to have made such delivery of such consolidated financial 

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statements if such consolidated financial statements shall have been made available within the time period specified above on the SEC’s EDGAR system (or any successor system adopted by the SEC);
(iii)Quarterly Compliance Certificate.  Upon delivery (or within five (5) Business Days of any deemed delivery) of financial statements pursuant to Section 5.2(a)(i) and (ii), a duly completed Compliance Certificate signed by a Responsible Officer, certifying, among other things, that (a) such financial statements fairly present, in all material respects, the consolidated financial condition, results of operations and cash flows of Borrower and its Subsidiaries as of applicable the dates and for the applicable periods in accordance with Applicable Accounting Standards consistently applied and (b) no Event of Default or Default has occurred or, if such an Event of Default or Default has occurred, specifying the nature and extent thereof and any corrective action taken or proposed to be taken with respect thereto; and
(iv)Information During Event of Default.  As promptly as practicable (and in any event within five (5) Business Days of the request therefor), such additional information regarding the business, legal, financial or corporate affairs of any Credit Party, or compliance with the terms of this Agreement, as Lender may from time to time reasonably request during the existence of any Event of Default (subject to reasonable requirements of confidentiality, including requirements imposed by law or contract; provided, that no Credit Party or any of its Subsidiaries shall be obligated to disclose any information that is subject to the assertion of attorney-client privilege);
All statements and certificates of Borrower and each of its Subsidiaries required to be delivered to Lender pursuant to this Section 5.2(a) will be prepared in conformity with Applicable Accounting Standards (other than any pro forma statements and projections provided to Lender which include adjustments from Applicable Accounting Standards, such adjusted pro forma statements and projections being in the same format as provided to the audit committee of the Board of Directors) and will fairly present in all material respects the consolidated financial condition of Borrower and its Subsidiaries and their consolidated results of operations.
(b)Legal Action Notice.  A prompt report of any legal action, litigation, investigation or proceeding pending or, in each case, threatened in writing against any Credit Party or any of its Subsidiaries, or any material development in any such legal action, litigation, investigation or proceeding, that could reasonably be expected to be determined adversely and, if so determined, to result in a Material Adverse Change;
(c)Notice of Defaults, Events of Default or Material Adverse Change.  Written notice in accordance with Section 9 hereof as promptly as practicable (and in any event within five (5) Business Days) after a Responsible Officer of Borrower or any other Credit Party shall become aware thereof, of the occurrence of (i) any Default or Event of Default, (ii) any event or circumstance that would render the representations or warranties in Section 4.8(c) untrue if made at such time, or (iii) ERISA Event that could reasonably be expected to have a Material Adverse Effect.

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(d)Intellectual Property; Regulatory.  Written notice in accordance with Section 9 hereof as promptly as practicable (and in any event no later than five (5) Business Days) after a Responsible Officer of Borrower or any other Credit Party shall have obtained Knowledge of any of the following:
(i)any material breach or default by Borrower or any of its Subsidiaries of any covenant, agreement or other provision of any Current Company IP Agreement or any Material Contract, or the termination or repudiation by Borrower or any of its Subsidiaries of any Current Company IP Agreement or Material Contract relating to any Product;
(ii)any license granted by any Credit Party or any of its Subsidiaries to a third party other than in the ordinary course of business under the Company IP to develop, manufacture, use or sell any Product anywhere in the Territory on its own behalf;
(iii)any material breach or default by a third party under any of the Current Company IP Agreements or any Material Contract relating to any Current Company IP, which could reasonably be expected to result in a Material Adverse Change, or the termination by a third party of any Current Company IP Agreement or Material Contract relating to any Product (irrespective of whether pursuant to the terms thereof);
(iv)the commencement of any action or proceeding against Borrower or any other Credit Party which challenges the validity of any claim in any Patent within the Company IP utilized in connection with any Product that could reasonably be expected to be determined adversely and, if so determined, to result in a Material Adverse Change;
(v)any notice that the FDA (or foreign equivalent) or other Regulatory Agency is limiting, suspending or revoking any Regulatory Approval, negatively changing the market classification or labeling of or otherwise materially restricting manufacture or sale of any Product;
(vi)any Credit Party or any of its Subsidiaries, becoming subject to any administrative or regulatory enforcement action, inspection or inspectional observation other than in the ordinary course of business, warning letter, or notice of violation letter from the FDA (or foreign equivalent) or other Regulatory Agency, or any Product being seized, withdrawn, recalled, detained, or subject to a suspension of manufacturing, or the commencement of any proceedings in the United States or any other jurisdiction seeking the withdrawal, recall, suspension, import detention, or seizure of any Product are pending or, to the Knowledge of Borrower, threatened in writing, against any Credit Party or any of its Subsidiaries; and
(vii)the occurrence of any other event (including the occurrence of a manufacturing disruption) with respect to any Product, or any component of such Product, which could reasonably be expected to result in a Material Adverse Change.

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5.3    Inventory; Maintenance of Properties.  (a) Keep all Inventory consisting of commercial drug supply in good and marketable condition, free from material defects and otherwise keep all such Inventory in material compliance with all applicable FDA Good Manufacturing Practices, (b) maintain, preserve and protect (or cause to be maintained, preserved and protected) all material tangible properties and Equipment constituting Collateral necessary in the operation of its business in good repair, working order and condition, ordinary wear and tear, casualty and condemnation excepted, and (c) make (or cause to be made) all necessary repairs, renewals, modifications, improvements, updates, extensions, additions or replacements thereof or thereto in accordance with prudent industry practice, in each case, except to the extent that any failure to do so could reasonably be expected to result in a Material Adverse Change.
5.4    Taxes.  Timely file all U.S. federal income Tax returns and other material Tax returns and reports or extensions therefor, which returns shall be correct in all material respects, and timely pay all material Taxes imposed upon it or any of its Subsidiaries or upon any of their respective properties, assets, income, businesses and franchises before any penalty or fine accrues thereon; provided, however, that no such Tax shall be required to be paid if (a) it is being contested in good faith by appropriate proceedings promptly instituted and diligently conducted, so long as adequate reserves with respect thereto have been maintained in accordance with Applicable Accounting Standards, and (b) solely in the case of a Tax that has or may become a Lien against any of the Collateral, such contest proceedings would not stay the sale of any portion of the Collateral.  No Credit Party will, nor will it permit any of its Subsidiaries to, file or consent to the filing of any consolidated income Tax return with any Person (other than Borrower or any of its Subsidiaries).
5.5    Insurance.  Maintain with financially sound and reputable insurance companies, insurance with respect to its properties and business against loss or damage of the kinds customarily insured against by Persons engaged in the same or similar business, of such types and in such amounts (after giving effect to any self-insurance reasonable and customary for similarly situated Persons engaged in the same or similar businesses as Borrower and its Subsidiaries) as are customarily carried under similar circumstances by such other Persons.  Any such insurance (excluding business interruption insurance and any customary limitations under any provider’s standard policies and procedures) maintained in the United States shall name the Collateral Agent as additional insured or loss payee, as applicable.
5.6.    Operating Accounts.  In the case of any Credit Party, not establish any new Collateral Account at or with any bank or financial institution unless substantially contemporaneously with such establishment, such account is subject to a Control Agreement that is reasonably acceptable to the Collateral Agent.  For each Collateral Account that each Credit Party at any time maintains, such Credit Party shall use commercially reasonable efforts to cause the applicable bank or financial institution at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect the Collateral; Agent’s Lien in favor and for the benefit of Lenders and the other Secured Parties in such Collateral Account in accordance with the terms hereunder, which Control Agreement may not be terminated until the earlier of (i) obtaining the prior written consent of the Collateral Agent or (ii) Payment in Full and the termination of this Agreement.  The provisions of the previous two (2) sentences shall not apply to any Accounts (i) exclusively used for payroll, payroll Taxes and 

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other employee wage and benefit payments to or for the benefit of any Credit Party’s employees, (ii) zero balance accounts, accounts (including trust accounts) used exclusively for escrow, customs, insurance or fiduciary purposes, merchant accounts, (iii) any Collateral Accounts with balances of less than $50,000 individually or $250,000 in the aggregate and (iv) accounts used exclusively for compliance with any Requirements of Law to the extent such Requirements of Law prohibit the granting of a Lien thereon (all such accounts, collectively, the “Excluded Accounts”); provided that, in each case, Borrower shall identify to the Collateral Agent all Collateral Accounts which constitute Excluded Accounts in the Perfection Certificate and each Compliance Certificate.  Notwithstanding the foregoing, the Credit Parties shall have until the date that is ninety (90) days following the closing date of a Permitted Acquisition or other Investment permitted hereunder to comply with the provisions of this Section 5.6 with regard to accounts of the Credit Parties acquired in connection with such Permitted Acquisition or other Investment.
5.7    Compliance with Laws.  Comply in all respects with the Requirements of Law and all orders, writs, injunctions, decrees and judgments application to it or to its business or its assets or properties (including Environmental Laws, ERISA, Money Laundering Laws, OFAC, FCPA and Health Care Laws), except if the failure to comply therewith could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change.
5.8    Protection of Intellectual Property Rights.
(a)    (i) Protect, defend and maintain the validity and enforceability of the Company IP material to its business; (ii) maintain the confidential nature of any material trade secrets and trade secret rights; (iii) promptly advise Lender by written notice in accordance with Section 9 hereof of material infringements, misappropriations or violations of Company IP owned by any Credit Party or any of its Subsidiaries; and (iv) not allow any Company IP material to its business to be abandoned, forfeited or dedicated to the public or any material Current Company IP Agreement to be terminated by any Credit Party or any of its Subsidiaries without the Collateral Agent’s prior written consent; provided, however, that with respect to Company IP that is not owned by any Credit Party or any of its Subsidiaries or exclusively licensed to a third party by any Credit Party or any of its Subsidiaries, the obligations in clauses (i), (ii) and (iv) above shall apply only to the extent any Credit Party or any of its Subsidiaries has the right to take such actions or to cause any licensee or other third party to take such actions pursuant to applicable agreements or contractual rights;
(b)    Provide written notice to the Collateral Agent in accordance with Section 9 hereof within thirty (30) days of entering or becoming bound by any Restricted License (other than relating to over-the-counter software that is commercially available to the public).  Each Credit Party and each of its Subsidiaries shall take such commercially reasonable steps as the Collateral Agent requests to obtain the consent of, or waiver by, any Person whose consent or waiver is necessary for (i) any Restricted License to, without giving effect to Section 9-408 of the Code, be deemed “Collateral” and for the Collateral Agent to have a security interest in favor and for the benefit of Lenders and the other Secured Parties in it that might otherwise be restricted or prohibited by Requirements of Law or by the terms of any such Restricted License, whether now existing or entered into in the future, and (ii) for the Collateral Agent to have the ability in the event of a 

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liquidation of any Collateral to dispose of such Collateral in accordance with the Collateral Agent’s and Lenders’ rights and remedies under this Agreement and the other Loan Documents; and
(c)    (i) Use commercially reasonable efforts, at its sole expense, either directly or indirectly, with respect to any licensee or licensor under the terms of any Credit Party’s or any of its Subsidiaries’ agreement with the respective licensee or licensor, as applicable, to take any and all actions (including taking legal action to specifically enforce the applicable terms of any license agreement) and prepare, execute, deliver and file agreements, documents or instruments which are necessary or desirable to (A) prosecute and maintain the Company IP material to its business and(B) diligently defend or assert the Company IP material to its business against material infringement, misappropriation, violation or interference by any other Persons and, in the case of Copyrights, Trademarks and Patents within the Company IP, against any claims of invalidity or unenforceability (including by bringing any legal action for infringement, dilution, violation or defending any counterclaim of invalidity or action of a non-Affiliate third party for declaratory judgment of non-infringement or non-interference); (ii) keep the Collateral Agent reasonably informed by written notice in accordance with Section 9 hereof of all of actions required under Section 5.8(c)(i)(B) and provide the Collateral Agent with the opportunity to meaningfully consult with Borrower with respect to the direction thereof and Borrower shall consider all of the Collateral Agent’s comments in good faith; provided, that such obligations shall be subject to any confidentiality obligations of any Credit Party or any of its Subsidiaries or any protective order binding upon any Credit Party or any of its Subsidiaries; provided, further that no Credit Party or Subsidiary shall be obligated to comply with this clause (ii) to the extent compliance would waive attorney-client privilege; and (iii) not, and shall use commercially reasonable efforts to cause any licensee or licensor of any Company IP not to, disclaim or abandon, or fail to take any action necessary or desirable to prevent the disclaimer or abandonment of such Company IP, in each case only if such disclaimer or abandonment could reasonably be expected to result in a Material Adverse Change and such Company IP constitutes Collateral.
5.9    Books and Records.  Maintain proper Books, in which entries that are full, true and correct in all material respects and are in conformity with Applicable Accounting Standards consistently applied shall be made of all material financial transactions and matters involving the assets, properties and business of such Credit Party (or such Subsidiary), as the case may be.
5.10    Access to Collateral; Audits.  Allow the Collateral Agent, or its agents or representatives, at reasonable times during normal business hours and upon reasonable advance notice, to visit and inspect the Collateral and inspect, copy and audit any Credit Party’s or any of its Subsidiaries’ Books; provided that such inspections shall be limited to premises owned by a Credit Party or any of its Subsidiaries and those locations where a Credit Party or any of its Subsidiaries has the right to freely access Collateral (solely to the extent such Credit Party or Subsidiary has such right without the need to obtain any additional consent or approval).  The reasonable and documented out-of-pocket expenses incurred by the Collateral Agent in respect of the foregoing inspections and audits shall be reimbursed as “Lender Expenses” as provided herein.  Such inspections or audits shall be conducted no more often than once every twelve (12) months unless an Event of Default has occurred and is continuing or such audit reveals the occurrence of an Event of Default.

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5.11    Use of Proceeds.  (a) Use the proceeds of the Term Loan for working capital and general corporate purposes and (b) not use the proceeds of the Term Loan to purchase or carry, or to reduce or retire or refinance any credit incurred to purchase or carry, any margin stock (within the meaning of Regulations U and X of the Board of Governors of the Federal Reserve System) or to extend credit to others for the purpose of purchasing or carrying any margin stock, in each case in violation of said Regulations.
5.12    Environmental Disclosure.
(a)    Deliver to the Collateral Agent as soon as practicable following receipt thereof, copies of all environmental audits, investigations, analyses and reports of any kind or character, whether prepared by personnel of any Credit Party or any of its Subsidiaries or by independent consultants, Governmental Authorities or any other Persons, with respect to significant environmental matters at any Facility or with respect to any material Environmental Claims;
(b)    Promptly upon a Responsible Officer of any Credit Party becoming aware of the occurrence thereof, deliver to the Collateral Agent written notice in accordance with Section 9 hereof describing in reasonable detail (i) any Release required to be reported to any federal, state or local Governmental Authority under any applicable Environmental Laws and (ii) any remedial action taken by any Credit Party or any of its Subsidiaries or any other Person in response to (A) any Hazardous Materials Activities, the existence of which could reasonably be expected to, individually or in the aggregate, result in one or more Environmental Claims which could reasonably be expected to, individually or in the aggregate, result in a Material Adverse Change, or (B) any Environmental Claims, the existence of which could reasonably be expected to, individually or in the aggregate, result in a Material Adverse Change;
(c)    As soon as practicable following the sending or receipt thereof by any Credit Party or any of its Subsidiaries, deliver to the Collateral Agent a copy of any and all significant written communications with respect to (i) any Environmental Claims, the existence of which could reasonably be expected to, individually or in the aggregate, result in a Material Adverse Change, (ii) any Release required to be reported to any federal, state or local Governmental Authority, and (iii) any request for information from any Governmental Authority that suggests such Governmental Authority is investigating whether any Credit Party or any of its Subsidiaries may be potentially responsible for any Hazardous Materials Activity that could reasonably be expected to, individually or in the aggregate, result in a Material Adverse Change; and
(d)    Deliver to the Collateral Agent prompt written notice in accordance with Section 9 hereof describing in reasonable detail (i) any proposed acquisition of stock, assets or properties by any Credit Party or any of its Subsidiaries that could reasonably be expected to, individually or in the aggregate, (A) expose any Credit Party or any of its Subsidiaries to, or result in, one or more Environmental Claims which could reasonably be expected to, individually or in the aggregate, result in a Material Adverse Change or (B) affect the ability of any Credit Party or any of its Subsidiaries to maintain in full force and effect all material Governmental Approvals required under any Environmental Laws for the operation of its business, and (ii) any proposed action to be taken by any Credit Party or any of its Subsidiaries to modify its current business operations in a manner which reasonably could be expected to, individually or in the aggregate, 

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subject any Credit Party or any of its Subsidiaries to any additional material obligations or requirements under any Environmental Laws.
(e)Use commercially reasonable efforts to promptly deliver to the Collateral Agent such other documents and information as the Collateral Agent may reasonably request in relation to any of the matters disclosed to the Collateral Agent pursuant to this Section 5.12.
(f)Promptly take any and all actions commercially reasonably necessary to (x) cure any violation of applicable Environmental Laws by such Credit Party or any of its Subsidiaries that could reasonably be expected to, individually or in the aggregate, result in a Material Adverse Change, and (y) make an appropriate response to any Environmental Claim against such Credit Party or any of its Subsidiaries and discharge any obligations it may have to any Person thereunder if the failure to do so could reasonably be expected to, individually or in the aggregate, result in a Material Adverse Change.
5.13    Further Assurances.  Promptly upon the reasonable request of the Collateral Agent, execute, acknowledge and deliver such further documents and do such other acts and things in order to effectuate or carry out more effectively the purposes of this Agreement and the other Loan Documents at its expense, including taking such steps as are reasonably deemed necessary or desirable by the Collateral Agent to maintain, protect and enforce the Collateral Agent’s Lien in favor and for the benefit of Lenders and the other Secured Parties on Collateral securing the Obligations created under the Security Agreement and the other Loan Documents.
5.14    Additional Collateral; Guarantors.  Without limiting the generality of Section 5.13 and except as otherwise approved in writing by Lender, Borrower shall cause each of its Guarantor Subsidiaries to guarantee the Obligations and to cause each such Guarantor Subsidiary to grant to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties a first priority security interest in and Lien upon, and pledge to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties, subject to Permitted Liens, the limitations set forth herein and the limitations set forth in the other Loan Documents, all of such Guarantor Subsidiary’s properties and assets (subject to the limitations herein and in the Security Agreement), whether now existing or hereafter acquired or existing, constituting Collateral to secure such guaranty.  Furthermore, without limiting the generality of Section 5.13 and except as otherwise approved in writing by the Collateral Agent, Borrower shall, and shall cause each other Credit Party to grant the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties a first priority security interest in and Lien upon, and pledge to Lender, subject to Permitted Liens, the limitations set forth herein and the limitations set forth in the other Loan Documents, all of the Equity Interests (other than Excluded Equity Interests) of each of its Subsidiaries that it directly holds.  In connection with each pledge of certificated Equity Interests required under the Loan Documents, the Credit Parties shall deliver, or cause to be delivered, to the Collateral Agent, such certificate(s) together with stock powers or assignments in blank, as applicable, properly endorsed for transfer to Lender or duly executed in blank, in each case reasonably satisfactory to the Collateral Agent.  In connection with each pledge of uncertificated Equity Interests of any Person, that, pursuant to its Operating Documents, has “opted-in” to the treatment of its Equity Interests as “securities” under Article 8 of the Code, required under the Loan Documents, the applicable Credit Party shall 

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deliver, or cause to be delivered, to the Collateral Agent such Equity Interests in accordance with Section 8-106(c)(1) of the Code or an executed uncertificated stock control agreement among the issuer, the registered owner and Lender in the form attached to the Security Agreement as Annex 4.
5.15    Formation or Acquisition of Subsidiaries.  If Borrower or other Credit Party at any time after the Effective Date forms or acquires a Subsidiary, concurrently therewith, Borrower will notify the Collateral Agent in writing in accordance with Section 9 hereof regarding such formation or acquisition and, as promptly as practicable by in no event later than thirty (30) days after such formation or acquisition: (a) if such Subsidiary is a Subsidiary that is not an Excluded Subsidiary, (i) Borrower will cause such Subsidiary to execute and deliver to the Collateral Agent a joinder to this Agreement, the Security Agreement and, if applicable, the IP Agreements and any other relevant Collateral Document; (b) without limiting clause (a) above, such Subsidiary will, and Borrower will cause such Subsidiary to, satisfy all conditions and requirements contained in this Agreement (including Section 5.14) and each other Loan Document (including the Security Agreement) if and to the extent applicable to such Subsidiary; (c) Borrower will deliver a certificate executed by a Responsible Officer of Borrower and such Subsidiary that all such conditions and requirements have been satisfied (such certificate to be in form and substance reasonably satisfactory to Lender); (d) Borrower will deliver to the Collateral Agent (i) true, correct and complete copies of the Operating Documents of such Subsidiary, (ii) a Secretary’s Certificate, certifying that the copies of such Operating Documents are true, correct and complete (such Secretary’s Certificate to be in form and substance reasonably satisfactory to the Collateral Agent) and (iii) a good standing certificate for such Subsidiary certified by the Secretary of State (or the equivalent thereof) of its jurisdiction of organization, incorporation or formation; and (e) Borrower will deliver to the Collateral Agent a supplement to the Perfection Certificate, reflecting the formation or acquisition of such Subsidiary.  Borrower, the Collateral Agent and Lenders hereby agree that, upon satisfaction of clause (a) above, any such Subsidiary shall constitute a Credit Party for all purposes hereunder as of the date of the formation or acquisition of such Subsidiary.  Any document, agreement or instrument executed or issued pursuant to this Section 5.15 shall be a Loan Document.
5.16    Post-Closing Requirements.  Each Credit Party will, and will cause each of its Subsidiaries (as applicable) to, take each of the actions set forth on Schedule 5.16 of the Disclosure Letter within the time period prescribed therefor on such schedule, which shall include, among other things: (a) use of commercially reasonable efforts to deliver to the Collateral Agent true, correct and complete copies of each Control Agreement required by the Collateral Agreement hereunder and executed and delivered by each applicable Credit Party (which shall be in form and substance reasonably satisfactory to the Collateral Agent) and (b) use of commercially reasonable efforts to deliver a landlord’s consent in favor of the Collateral Agent for each Credit Party’s leased locations owned by another Credit Party or its Subsidiary by the respective landlord thereof (which consent shall include an agreement by such landlord to permit reasonable access to such leased premises by the Collateral Agent or its agents upon an Event of Default for purposes of removal of any and all Collateral, if such leased premises is a warehouse, distribution center or other location at which a material amount of Collateral is located), together with the duly executed original signatures thereto.  All representations and warranties contained in this Agreement and the other Loan Documents shall be deemed modified to the extent necessary to accommodate the taking the 

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actions set forth on Schedule 5.16 of the Disclosure Letter within the time periods set forth therein, rather than elsewhere provided in the Loan Documents.
6.NEGATIVE COVENANTS
Each Credit Party covenants and agrees that, until Payment in Full, such Credit Party shall not, and shall cause each of its Subsidiaries not to:
6.1    Dispositions.  Convey, sell, lease, transfer, assign, exclusively license out, non-exclusively license out, agree to any covenant not to sue, enter into a co-existence agreement or otherwise dispose of (including any sale-leaseback or sale-license back), directly or indirectly and whether in one or a series of transactions (collectively, “Transfer”), all or any part of its or its Subsidiaries’ properties or assets constituting Collateral (other than cash or Cash Equivalents), other than (a) Transfers in the ordinary course of business and any sale of obsolete or worn out property, whether now owned or hereafter acquired, (b) sales of Inventory in the ordinary course of business, (c) any exclusive as to geography within Japan license out of rights to telotristat ethyl or sotagliflozin, (d) any exclusive as to geography anywhere in the world license out of the rights to any product or product candidate other than telotristat ethyl or sotagliflozin, (e) any non-exclusive license, or (f) any other Transfers outside the ordinary course of business in which such Credit Party or Subsidiary will receive cash proceeds in an amount equal to no less than seventy five percent (75%) of all Transfer consideration (fixed or contingent) paid or payable to such Credit Party or Subsidiary, but only so long as the net cash proceeds of such Transfer (to the extent such net cash proceeds are in excess of $10,000,000) are utilized to repay or prepay, in whole or in part, Indebtedness to Lenders under and in accordance with this Agreement and the other Loan Documents (including Section 2.2(d) hereof).  Notwithstanding anything herein to the contrary, any exclusive as to geography within the United States license out of rights to telotristat ethyl or sotagliflozin entered into after the Effective Date shall require the prior written consent of the Collateral Agent (which consent shall be obtained in accordance with the second sentence of the definition of “Permitted License”), and no Transfer of all or any part of the properties or assets of Borrower or any of its Subsidiaries constituting Collateral to any Person that is not a Credit Party after the Effective Date (other than Transfers described in clauses (a) through (f) above) shall be permitted hereunder without the prior written consent of the Collateral Agent.
6.2    Fundamental Changes.  (a) Engage in or permit any of its Subsidiaries to engage in any material line of business that is not substantially similar to the Company Lines of Business conducted by it and its Subsidiaries on the Tranche A Closing Date or that is not reasonably related, complementary or ancillary thereto.
(b)    Without at least five (5) days prior written notice to the Collateral Agent in accordance with Section 9 hereof: (i) change its jurisdiction of organization, incorporation or formation, (ii) change its organizational structure or type, (iii) change its legal name, or (iv) change any organizational number (if any) assigned by its jurisdiction of organization, incorporation or formation; provided, that any such change shall not be adverse to the rights, remedies and benefits available to, or conferred upon, the Collateral Agent or any Lender under any Loan Document in any material respect.

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(c)    If any Credit Party intends to deliver any assets or properties constituting Collateral to one or more bailees that are, or leased locations that are owned in whole by, Borrower or any Subsidiary, and:
(i)The Collateral Agent and such bailee(s) are not already parties to a bailee agreement governing both the Collateral and the location(s) to which such Credit Party intends to deliver the Collateral, then such Credit Party will first receive the written consent of the Collateral Agent, and such Credit Party shall use commercially reasonable efforts to cause such bailee(s) to execute and deliver to the Collateral Agent a bailee agreement in form and substance reasonably satisfactory to the Collateral Agent.  Notwithstanding the foregoing, no such consent or bailee agreement shall be required in connection with the distribution of Products to customers in the ordinary course of business; and
(ii)The Collateral Agent has not already received a landlord’s consent in favor of the Collateral Agent for such leased location(s) duly executed by the respective landlord(s) thereof (which consent includes an agreement by such landlord(s) to permit reasonable access to such leased premises by the Collateral Agent or its agents upon an Event of Default for purposes of removal of any and all Collateral, if such leased premises is a warehouse, distribution center or other location at which such Collateral is located), then such Credit Party will first receive the written consent of the Collateral Agent, and such Credit Party shall use commercially reasonable efforts to cause such landlord(s) to execute and deliver to the Collateral Agent a landlord’s consent in favor of the Collateral Agent for such leased locations duly executed by the respective landlord(s) thereof (which consent includes an agreement by such landlord(s) to permit reasonable access to such leased premises by the Collateral Agent or its agents upon an Event of Default for purposes of removal of any and all Collateral, if such leased premises is a warehouse, distribution center or other location at which such Collateral is located).
6.3    Mergers, Liquidations or Dissolutions.
(a)    Merge, amalgamate, consolidate, liquidate or dissolve, or permit any of its Subsidiaries to merge, amalgamate, consolidate, liquidate or dissolve, with or into any other Person (whether in one transaction or a series of transactions), except that:
(i)    Borrower may merge, amalgamate or consolidate with any Subsidiary of Borrower, provided that Borrower or any such Subsidiary that is a Credit Party is the surviving entity;
(ii)    any Subsidiary of Borrower that is a Credit Party may merge, amalgamate or consolidate with Borrower or any other Subsidiary of Borrower, provided that Borrower or a Subsidiary that is a Credit Party is the surviving entity;
(iii)any Subsidiary of Borrower that is not a Credit Party may merge, amalgamate or consolidate with Borrower or any other Subsidiary of Borrower;

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(iv)any Subsidiary of Borrower may liquidate, dissolve or wind up, provided, that the properties and assets of such Subsidiary are distributed to a Credit Party;
(v)any Investment permitted by Section 6.8 may be structured as a merger, amalgamation or consolidation, provided such merger, amalgamation or consolidation is not otherwise prohibited under this Section 6.3; and
(vi)any Transfer permitted by Section 6.1 may be structured as a merger, amalgamation or consolidation; or
(b)    make, or permit any of its Subsidiaries to make, Acquisitions outside the ordinary course of business, including any purchase of the assets or properties of any division or line of business of any other Person, other than Permitted Acquisitions or Permitted Investments.
6.4    Indebtedness.  Directly or indirectly, create, incur, assume or guaranty, or otherwise become or remain directly or indirectly liable with respect to, any Indebtedness (including any Indebtedness consisting of obligations evidenced by a bond, debenture, note or other similar instrument) that is not Permitted Indebtedness; provided, however, that the accrual of interest, the accretion of accreted value and the payment of interest in the form of additional Indebtedness shall not be deemed to be an incurrence of Indebtedness for purposes of this Section 6.4.
6.5    Encumbrance.  Except for Permitted Liens, create, incur, allow, or suffer to exist any Lien on any properties or assets constituting Collateral owned or otherwise held by it or assign or convey any right to receive income, including the sale of any Accounts, or permit any Collateral not to be subject to the first priority security interest granted in the Loan Documents.
6.6    No Further Negative Pledges; Negative Pledge. Enter into any agreement, document or instrument directly or indirectly prohibiting (or having the effect of prohibiting) or limiting the ability of such Credit Party or Subsidiary to create, incur, assume or suffer to exist any Lien upon any of their respective properties or assets constituting Collateral (including any Equity Interests issued by any Subsidiary that constitute Collateral), whether now owned or hereafter acquired, in favor of the Collateral Agent and for the benefit of Lenders and the other Secured Parties with respect to the Obligations or under the Loan Documents; provided, that the foregoing shall not apply to:
(a)specific properties or assets encumbered by Permitted Liens to secure payment of any Permitted Indebtedness, if and only to the extent each such prohibition or limitation applies only to such properties or assets;
(b)prohibitions or limitations set forth in any lease, license or similar agreement entered into in the ordinary course of business relating to unsecured Permitted Indebtedness, in the case of each such agreement if and only to the extent such prohibitions or limitations, taken as a whole, are not materially more restrictive than the prohibitions and limitations set forth in this Agreement or any other Loan Document, taken as a whole (as reasonably determined by a Responsible Officer of Borrower in good faith);

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(c)customary provisions restricting assignments, subletting, sublicensing or other transfers of properties or assets subject thereto set forth in leases, subleases, licenses (including Permitted Licenses) and other similar agreements that are not otherwise prohibited under this Agreement or any other Loan Document, if and only to the extent each such restriction applies only to the properties or assets subject to such leases, subleases, licenses or agreements;
(d)prohibitions or limitations on the transfer or assignment of any properties, assets or Equity Interests set forth in any agreement entered into in the ordinary course of business  that is not otherwise prohibited under this Agreement or any other Loan Document, if and only to the extent each such prohibition or limitation applies only to such properties, assets or Equity Interests;
(e)prohibitions or limitations imposed by Requirements of Law;
(f)prohibitions or limitations that exist as of the Tranche A Closing Date under Indebtedness existing on the Tranche A Closing Date (which such Indebtedness is set forth on Schedule 12.1 of the Disclosure Letter);
(g)customary prohibitions or limitations arising in connection with any Transfer permitted by Section 6.1;
(h)customary provisions in shareholders agreements, joint venture agreements, organizational documents or similar binding agreements relating to any joint venture entity or non-Wholly-Owned Subsidiary and applicable solely to such joint venture entity or non-Wholly-Owned Subsidiary and the Equity Interests issued thereby;
(i)customary net worth provisions set forth in real property leases entered into by Subsidiaries of Borrower, so long as such net worth provisions could not reasonably be expected to impair the ability of Borrower or the other Credit Parties to meet their ongoing obligations (as reasonably determined by a Responsible Officer of Borrower in good faith);
(j)customary net worth provisions set forth in customer agreements entered into in the ordinary course of business  that are not otherwise prohibited under this Agreement or any other Loan Document, so long as such net worth provisions could not reasonably be expected to impair the ability of Borrower or the other Credit Parties to meet their ongoing obligations (as reasonably determined by a Responsible Officer of Borrower in good faith);
(k)restrictions on cash or other deposits (including escrowed funds) imposed by agreements entered into in the ordinary course of business  that are not otherwise prohibited under this Agreement or any other Loan Document;
(l)prohibitions or limitations set forth in any agreement in effect at the time any Person becomes a Subsidiary (but not any amendment, modification, restatement, renewal, extension, supplement or replacement expanding the scope of any such restriction or condition); provided that such agreement was not entered into in contemplation of such Person becoming a Subsidiary and each such prohibition or limitation does not apply to Borrower or any other Subsidiary 

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(other than such Person and any other Person that is a Subsidiary of such first Person at the time such first Person becomes a Subsidiary);
(m)prohibitions or limitations imposed by any Loan Document;
(n)customary provisions set forth in joint venture agreements or agreements governing minority investments that are not otherwise prohibited by this Agreement or any other Loan Document, if and only to the extent each such prohibition or limitation applies only to the joint venture entity or minority investment that is the subject of such agreement;
(o)customary provisions restricting assignments or other transfer of properties or assets subject thereto set forth in any agreement entered into in the ordinary course of business, if and only to the extent each such restriction applies only to the properties or assets subject to such agreement; and
(p)prohibitions or limitations imposed by any amendments, modifications, restatements, renewals, extensions, supplements or replacements of any of the agreements referred to in clauses (a) through (o) above, except to the extent that any such amendment, modification, restatement, renewal, extension, supplement or replacement expands the scope of any such prohibition or limitation.
6.7    Maintenance of Collateral Accounts.  Maintain any Collateral Account except pursuant to the terms of Section 5.6 hereof.
6.8    Distributions; Investments.  (a) Pay any dividends or make or permit any distribution or payment on or redeem, retire or purchase any Equity Interests or any securities convertible into Equity Interests, except for the following:
(i)Each Subsidiary that is a Credit Party may make such payments to Borrower or any other Subsidiary that is a Credit Party;
(ii)Each non-Wholly-Owned Subsidiary that is a Credit Party may make such payments to Borrower or any other Subsidiary that is a Credit Party and to each other owner of Equity Interests of such non-Wholly-Owned Subsidiary based on their relative ownership interests of the relevant class of Equity Interests;
(iii)Borrower may redeem in whole or in part any of its Equity Interests for another class of its Equity Interests or rights to acquire its Equity Interests or with proceeds from substantially concurrent equity contributions or issuances of new Equity Interests;
(iv)Any such payments arising from any Permitted Investment or any transaction by Borrower or any of its Subsidiaries expressly permitted by Section 6.3(a);
(v)(A) regular payments of principal or interest on any Indebtedness under the Existing Senior Notes pursuant to the terms of such Existing Senior Notes (including payment of principal in connection with any conversion thereof); or (B) payments to induce the conversion of any of the Existing Senior Notes by the holders thereof into 

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Equity Interests of Borrower pursuant to the terms of such Existing Senior Notes or otherwise, in an aggregate amount not to exceed an amount equal to the remaining unpaid interest payments to be made under such Existing Senior Notes;
(vi)The payment of dividends by Borrower solely in non-cash pay and non-redeemable capital stock (including, for the avoidance of doubt, dividends and distributions payable solely in Equity Interests);
(vii)The redemption or repurchase of Equity Interests by Borrower from future, present or former officers, employees, directors and consultants of Borrower, so long as an Event of Default does not exist at the time of such redemption or repurchase and would not exist after giving effect to such redemption or repurchase;
(viii)The repurchase or other acquisition of Equity Interests deemed to occur (A) upon the exercise of stock options, warrants, restricted stock units or other rights to purchase Equity Interests if such Equity Interests represent a portion of the exercise price thereof or conversion price thereof, or (B) in connection with any Tax withholding imposed, levied, collected, withheld or assessed by any Governmental Authority upon the grant of or any exercise or vesting of any Equity Interests (or options in respect thereof) of future, present or former officers, employees, directors and consultants of Borrower;
(ix)Cash payments in lieu of the issuance of fractional shares in connection with the exercise of warrants, options or other securities convertible into or exchangeable for Equity Interests;
(x)In connection with any Permitted Acquisition by any Credit Party or any of its Subsidiaries, (A) the receipt or acceptance of the return to such Credit Party or Subsidiaries of Equity Interests of Borrower constituting a portion of the purchase price consideration in settlement of indemnification claims, or as a result of a purchase price adjustment (including earn-outs or similar obligations) and (B) payments or distributions to equity holders pursuant to appraisal rights required under Requirements of Law; and
(xi)The distribution of rights pursuant to any shareholder rights plan or the redemption of such rights for nominal consideration in accordance with the terms of any shareholder rights plan; or
(b)    directly or indirectly (including by the formation of any Subsidiary) make any Investment other than Permitted Investments.

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6.9    Restrictions on Subsidiary Distributions.  Enter into any agreement, document or instrument directly or indirectly prohibiting (or having the effect of prohibiting) or limiting the ability of any Subsidiary of Borrower (other than Specified Subsidiary) to (a) pay dividends or make any other distributions on any of such Subsidiary’s Equity Interests owned by Borrower or any other Subsidiary of Borrower, (b) repay or prepay any Indebtedness owed by such Subsidiary to Borrower or any other Subsidiary of Borrower, (c) make loans or advances to Borrower or any other Subsidiary of Borrower, or (d) transfer, lease or license any of its properties or assets constituting Collateral to Borrower or any other Subsidiary of Borrower; provided, that the foregoing shall not apply to:
(i)    specific properties or assets encumbered by Permitted Liens to secure payment of Permitted Indebtedness, if and only to the extent each such prohibition or limitation applies only to such properties or assets;
(ii)    prohibitions or limitations set forth in any lease, license or similar agreement entered into in the ordinary course of business  relating to unsecured Permitted Indebtedness, in the case of each such agreement if and only to the extent such prohibitions or limitations, taken as a whole, are not materially more restrictive than the prohibitions and limitations set forth in this Agreement or any other Loan Document, taken as a whole (as reasonably determined by a Responsible Officer of Borrower in good faith);
(iii)    customary provisions restricting assignments, subletting, sublicensing or other transfer of properties or assets subject thereto set forth in leases, subleases, licenses (including Permitted Licenses) and other similar agreements that are not otherwise prohibited under this Agreement or any other Loan Document, if and only to the extent each such restriction applies only to the properties or assets subject to such leases, subleases, licenses or agreements;
(iv)    prohibitions or limitations on the transfer or assignment of any properties, assets or Equity Interests set forth in any agreement entered into in the ordinary course of business that is not otherwise prohibited under this Agreement or any other Loan Document (including Section 6.6 hereof), if and only to the extent each such prohibition or limitation applies only to such properties, assets or Equity Interests;
(v)    prohibitions or limitations imposed by Requirements of Law;
(vi)    prohibitions or limitations that exist as of the Tranche A Closing Date under Indebtedness existing on the Tranche A Closing Date (which such Indebtedness is set forth on Schedule 12.1 of the Disclosure Letter);
(vii)    customary prohibitions or limitations arising in connection with any Transfer permitted by Section 6.1;
(viii)    customary provisions in shareholders agreements, joint venture agreements, organizational documents or similar binding agreements relating to any joint venture entity or non-Wholly-Owned Subsidiary and applicable solely to such joint venture entity or non-Wholly-Owned Subsidiary and the Equity Interests issued thereby;

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(ix)    customary net worth provisions set forth in real property leases entered into by Subsidiaries of Borrower, so long as such net worth provisions could not reasonably be expected to impair the ability of Borrower or the other Credit Parties to meet their ongoing obligations (as reasonably determined by a Responsible Officer of Borrower in good faith);
(x)    customary net worth provisions set forth in customer agreements entered into in the ordinary course of business  that are not otherwise prohibited under this Agreement or any other Loan Document, so long as such net worth provisions could not reasonably be expected to impair the ability of Borrower or the other Credit Parties to meet their ongoing obligations (as reasonably determined by a Responsible Officer of Borrower in good faith);
(xi)    restrictions on cash or other deposits (including escrowed funds) imposed by agreements entered into in the ordinary course of business that are not otherwise prohibited under this Agreement or any other Loan Document;
(xii)    prohibitions or limitations set forth in any agreement in effect at the time any Person becomes a Subsidiary (but not any amendment, modification, restatement, renewal, extension, supplement or replacement expanding the scope of any such restriction or condition); provided that such agreement was not entered into in contemplation of such Person becoming a Subsidiary and each such prohibition or limitation does not apply to Borrower or any other Subsidiary (other than such Person and any other Person that is a Subsidiary of such first Person at the time such first Person becomes a Subsidiary);
(xiii)    prohibitions or limitations imposed by any Loan Document;
(xiv)    customary provisions set forth in joint venture agreements or agreements governing minority investments that are not otherwise prohibited by this Agreement or any other Loan Document, if and only to the extent each such prohibition or limitation applies only to the joint venture entity or minority investment that is the subject of such agreement;
(xv)    customary provisions restricting assignments or other transfer of properties or assets subject thereto set forth in any agreement entered into in the ordinary course of business , if and only to the extent each such restriction applies only to the properties or assets subject to such agreement; and
(xvi)    prohibitions or limitations imposed by any amendments, modifications, restatements, renewals, extensions, supplements or replacements of any of the agreements referred to in clauses (i) through (xv) above, except to the extent that any such amendment, modification, restatement, renewal, extension, supplement or replacement expands the scope of any such prohibition or limitation.

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6.10    Transactions with Affiliates.  Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of any Credit Party or any owner of ten percent (10%) or more of the Equity Interests of any Credit Party or any of its Subsidiaries, except for:
(a)    transactions that are in the ordinary course of such Credit Party’s or Subsidiary’s business, upon fair and reasonable terms that are no less favorable to such Credit Party or such Subsidiary than would be obtained in an arm’s length transaction with a non-affiliated Person;
(b)    any transaction between and among any two or more Credit Parties or between and among any Credit Parties and their Subsidiaries not otherwise prohibited by this Agreement or any other Loan Document;
(c)    reasonable and customary compensation arrangements (including fees, benefits, severance, change of control payments and incentive arrangements) for members of the Board of Directors in the ordinary course of business ;
(d)    reasonable compensation arrangements (including fees, benefits, severance, change of control payments and incentive arrangements) for officers, employees, consultants and agents of Borrower and its Subsidiaries entered into in the ordinary course of business ;
(e)    Investments permitted under clauses (e), (f) or (g) of the definition of Permitted Investments;
(f)    Investments in Borrower comprised of the proceeds of equity financings and the granting of registration and other customary rights in connection therewith, any contribution to the Equity Interests of Borrower or any Subsidiary and unsecured debt financings from Borrower’s shareholders, so long as any and all such Indebtedness is Subordinated Debt and does not violate Section 6.5;
(g)    transactions pursuant to an agreement in existence at the time the applicable Credit Party or Subsidiary that is a party to such transaction is acquired pursuant to a Permitted Acquisition or similar Investment permitted by Section 6.8;
(h)    any transaction in connection with agreements existing on the Effective Date and set forth on Schedule 6.10(h) of the Disclosure Letter;
(i)    any distribution permitted by Section 6.8;
(j)    payment of customary fees and reasonable out-of-pocket costs to, and indemnities provided on behalf of, officers, employees, consultants and agents of Borrower and its Subsidiaries in the ordinary course of business to the extent attributable to the ownership or operation of Borrower and its Subsidiaries; and
(k)    the Texas Lease.

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6.11    Subordinated Debt; Existing Notes.  (a) Make or permit any payment on any Subordinated Debt or under the Existing Senior Notes, except (i) under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, (ii) regular payments of principal or interest under the Existing Senior Notes pursuant to the terms of such Existing Senior Notes (including payments of principal in connection with any conversion thereof), (iii) payments to induce the conversion of any of the Existing Senior Notes by the holders thereof into Equity Interests of Borrower pursuant to the terms of such Existing Senior Notes or otherwise, in an aggregate amount not to exceed an amount equal to the remaining unpaid interest payments to be made under such Existing Senior Notes and (iv) refinancings of any Subordinated Debt with any Indebtedness permitted to be incurred under Section 6.4; (b) enter into any indenture or indentures supplemental to that certain Indenture, dated as of November 26, 2014, between Borrower and Wells Fargo Bank, National Association, as trustee, pursuant to Article 10 thereof, for the purpose (solely or among such other purposes) of (i) securing the Existing Senior Notes other than by Liens constituting Permitted Liens hereunder, or (ii) adding any guarantee with respect to the Existing Senior Notes that does not constitute Permitted Indebtedness hereunder or; or (c) amend any provision in any document relating to any Subordinated Debt which would increase the amount thereof, except under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or adversely affect the subordination thereof to Obligations owed to any Lender.  For the avoidance of doubt, nothing in this Section 6.11 shall restrict Borrower or any of its Subsidiaries from (y) entering into any amendments to Permitted Indebtedness to effectuate any refinancing thereof permitted hereunder and (z) extending the Texas Lease in connection with a refinancing of the iStar Mortgage.
6.12    Amendments or Waivers of Organizational Documents.  Amend, restate, supplement or otherwise modify, or waive, any provision of its Operating Documents in a manner that would adversely affect its ability to perform its obligations under the Loan Documents or adversely affect the rights, remedies and benefits available to, or conferred upon, the Collateral Agent or any Lender under any Loan Document.
6.13    Fiscal Year.  Change its fiscal year without prior written notice to the Collateral Agent.
6.14    Compliance.
(a)    Become an “investment company” or a company controlled by an “investment company”, under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of any Credit Extension for that purpose; no ERISA Affiliate of a Credit Party shall cause or suffer to exist (i) any event that could result in the imposition of a Lien on any asset of a Credit Party or a Subsidiary of a Credit Party with respect to any Plan or Multiemployer Plan or (ii) any other ERISA Event that, in the case of clauses (i) and (ii), could reasonably be expected to, in the aggregate, result in a Material Adverse Change;

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(b)    Fail to comply with the Federal Fair Labor Standards Act or violate any other law or regulation, if such failure or violation could reasonably be expected to have a Material Adverse Change; or
(c)    Permit the occurrence of any other event with respect to any present pension, profit sharing or deferred compensation plan which could reasonably be expected to result in a Material Adverse Change.
6.15    Compliance with Anti-Terrorism Laws.  The Collateral Agent and each Lender hereby notifies each Credit Party that pursuant to the requirements of Anti-Terrorism Laws, and such Person’s policies and practices, the Collateral Agent and each Lender is required to obtain, verify and record certain information and documentation that identifies each Credit Party and its principals, which information includes the name and address of each Credit Party and its principals and such other information that will allow the Collateral Agent and each Lender to identify such party in accordance with Anti-Terrorism Laws.  No Credit Party will, nor will any Credit Party permit any of its Subsidiaries or Affiliates (other than portfolio companies of the Permitted Holders that are not Subsidiaries of Borrower) to, directly or indirectly, knowingly enter into any documents or Contracts with any Person listed on the OFAC Lists.  Each Credit Party shall immediately notify the Collateral Agent and each Lender in writing if such Credit Party or any of its Subsidiaries has knowledge that any Credit Party or any Subsidiary or Affiliate (other than portfolio companies of the Permitted Holders that are not Subsidiaries of Borrower) of any Credit Party is listed on the OFAC Lists or (a) is convicted on, (b) pleads nolo contendere to, (c) is indicted on, or (d) is arraigned and held over on charges involving money laundering or predicate crimes to money laundering.  No Credit Party will, nor will any Credit Party permit any of its Subsidiaries or Affiliates (other than portfolio companies of the Permitted Holders that are not Subsidiaries Borrower) to, directly or indirectly, (i) conduct any business or engage in any transaction or dealing with any Blocked Person, including the making or receiving of any contribution of funds, goods or services to or for the benefit of any Blocked Person, (ii) deal in, or otherwise engage in any transaction relating to, any property or interests in property blocked pursuant to Executive Order No. 13224, any similar executive order or other Anti-Terrorism Law, or (iii) engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in Executive Order No. 13224 or other Anti-Terrorism Law.
6.16    Amendments or Waivers of Current Company IP Agreements and Material Contracts.  Waive, amend, cancel or terminate, exercise or fail to exercise, any material rights constituting or relating to any of the Current Company IP Agreements listed on Schedule 4.6(g) of the Disclosure Letter or any Material Contract or (b) default under, or take any action or fail to take any action which with the passage of time or the giving of notice or both would constitute a default or event of default under, any of the Current Company IP Agreements listed on Schedule 4.6(g) of the Disclosure Letter or any Material Contract, in each case, which could reasonably be expected to result in a Material Adverse Change.

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7.EVENTS OF DEFAULT
Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement:
7.1    Payment Default.  Any Credit Party fails to (a) make any payment of any principal of any Term Loan when and as the same shall become due and payable, whether at the due date thereof (including pursuant to Section 2.2(c)) or at a date fixed for prepayment (whether voluntary or mandatory) thereof or by acceleration thereof or otherwise, or (b) within five (5) Business Days after the same becomes due, any payment of interest or premium pursuant to Section 2.2, including any applicable Makewhole Amount or Prepayment Premium, or any other Obligations (which five (5) Business Day cure period shall not apply to any payments due on the Term Loan Maturity Date or the date of acceleration pursuant to Section 8.1(a) hereof).  A failure to pay any such interest, premium or Obligations pursuant to the foregoing clause (b) prior to the end of such five (5) Business Day-period shall not constitute an Event of Default (unless such payment is due on the Term Loan Maturity Date or the date of acceleration pursuant to Section 8.1(a) hereof).
7.2    Covenant Default.
(a)The Credit Parties:  (i) fail or neglect to perform any obligation in Sections 5.2, 5.4, 5.5, 5.6, 5.8, 5.11 or 5.15 or (ii) violate any covenant in Section 6; or
(b)The Credit Parties fail or neglect to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this Agreement or any Loan Documents, and as to any default (other than those specified elsewhere in this Section 7) under such other term, provision, condition, covenant or agreement that can be cured, have failed to cure the default within ten (10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by the Credit Parties be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then the Credit Parties shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be made during such cure period).  Cure periods provided under this Section 7.2(b) shall not apply, among other things, to any of the covenants referenced in clause (a) above.
7.3    Material Adverse Change.  A Material Adverse Change of the type described in clause (iii) or clause (iv) of the definition thereof occurs.
7.4    Insolvency.
(a)    An involuntary proceeding shall be commenced or an involuntary petition shall be filed in a court of competent jurisdiction seeking:  (i) relief in respect of any Credit Party or any of its Subsidiaries, or of a substantial part of the property constituting Collateral of any Credit Party or any of its Subsidiaries, under Title 11 of the United States Code, as now constituted or hereafter amended, or any other federal, state or foreign bankruptcy, insolvency, receivership or similar law; (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar 

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official for any Credit Party or any of its Subsidiaries or for a substantial part of the property or assets constituting Collateral of any Credit Party or any of its Subsidiaries; or (iii) the winding-up or liquidation of any Credit Party or any of its Subsidiaries, and such proceeding or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered; or
(b)    Any Credit Party or any of its Subsidiaries shall:  (i) voluntarily commence any proceeding or file any petition seeking relief under Title 11 of the United States Code, as now constituted or hereafter amended, or any other federal, state or foreign bankruptcy, insolvency, receivership or similar law; (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or the filing of any petition described in clause (a) above; (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Credit Party or any of its Subsidiaries or for a substantial part of the property or assets constituting Collateral of any Credit Party or any of its Subsidiaries; (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding; (v) make a general assignment for the benefit of creditors; (vi) become unable, admit in writing its inability or fail generally to pay its debts as they become due; (vii) take any action for the purpose of effecting any of the foregoing; or  wind up or liquidate (except as otherwise expressly permitted hereunder).
7.5    Other Agreements.  There is under any contract, agreement or other arrangement to which a Credit Party is a party with a third party or parties, any breach thereof or default thereunder resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of $7,500,000 in the aggregate.
7.6    Judgments; Attachment; Levy; Restraint on Business.
(a)    One or more final judgments, orders, or decrees for the payment of money in an amount in excess of $7,500,000 in the aggregate (but excluding any final judgments, orders, or decrees for the payment of money that are covered by independent third-party insurance as to which liability has been accepted by such insurance carrier), shall be rendered against one or more Credit Parties and the same are not, within thirty (30) days after the entry thereof, discharged or execution thereof stayed or bonded pending appeal, or such judgments are not discharged prior to the expiration of any such stay;
(b)    (i) The service of process seeking to attach, by trustee or similar process, any funds of any Credit Party or of any entity under the control of any Credit Party (including a Subsidiary) in excess of $7,500,000 on deposit or otherwise maintained with the Collateral Agent, or (ii) a notice of lien or levy is filed against any of Borrower’s or any of its Subsidiaries’ assets by any Governmental Authority, and the same under sub-clauses (i) and (ii) hereof are not, within thirty (30) days after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided, however, that no Credit Extensions shall be made during any thirty (30) day cure period; or
(c)(i) Any material portion of Borrower’s or any of its Subsidiaries’ assets is attached, seized, levied on, or comes into possession of a trustee or receiver, or (ii) any court order 

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enjoins, restrains, or prevents Borrower or any of its Subsidiaries from conducting any material part of its business.
7.7    Misrepresentations.  Any Credit Party or any Person acting for any Credit Party makes or is deemed to make any representation, warranty, or other statement now or later in this Agreement, any other Loan Document or in any writing delivered to the Collateral Agent or any Lender or to induce such Person to enter this Agreement or any other Loan Document, and such representation, warranty, or other statement is incorrect in any material respect (or, to the extent any such representation, warranty or other statement is qualified by materiality or Material Adverse Change, in any respect) when made or deemed to be made.
7.8    Loan Documents; Collateral.  Any material provision of any Loan Document shall for any reason cease to be valid and binding on or enforceable against any Credit Party or any of its Subsidiaries party thereto, or any Credit Party or any of its Subsidiaries shall so state in writing or bring an action to limit its obligations or liabilities thereunder; or any Collateral Document shall for any reason (other than pursuant to the terms thereof) cease to create a valid security interest in any material portion of the Collateral purported to be covered thereby or such security interest shall for any reason cease to be a perfected and first priority security interest in any material portion of the Collateral subject thereto subject only to Permitted Liens.
7.9    Subordinated Debt.  Any document, instrument, or agreement evidencing the subordination of any Subordinated Debt shall for any reason be revoked or invalidated or otherwise cease to be in full force and effect, any Person shall be in breach thereof or contest in any manner the validity or enforceability thereof or deny that it has any further liability or obligation thereunder, or the Obligations shall for any reason be subordinated or shall not have the priority contemplated by this Agreement.
7.10    Change of Control.  A Change of Control occurs.
7.11    ERISA Event.  An ERISA Event occurs that, individually or together with any other ERISA Events, results or could reasonably be expected to result in a liability of Borrower or any of its Subsidiaries or any of their respective ERISA Affiliates or the imposition of a Lien on any of the properties or assets of Borrower or any of its Subsidiaries, which liabilities and Liens could reasonably be expected to result in a Material Adverse Change.
8.RIGHTS AND REMEDIES UPON AN EVENT OF DEFAULT
8.1    Rights and Remedies.  While an Event of Default occurs and continues, the Collateral Agent may, or at the request of the Required Lenders, will, without notice or demand:
(a)declare all Obligations (including, for the avoidance of doubt, the Makewhole Amount or Prepayment Premium, as applicable, that is payable pursuant to Section 2.2(e) or Section 2.2(f), as the case may be) immediately due and payable (but if an Event of Default described in Section 7.4 occurs all Obligations, including the Makewhole Amount or Prepayment Premium, as applicable, that is payable pursuant to Section 2.2(e) or Section 2.2(f), as the case may be, shall be automatically and immediately due and payable without any action by the Collateral Agent or 

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any Lender), whereupon all Obligations for principal, interest, premium or otherwise (including, for the avoidance of doubt, the Makewhole Amount or Prepayment Premium, as applicable, that is payable pursuant to Section 2.2(e) or Section 2.2(f), as the case may be,) shall become due and payable by Borrower without presentment, demand, protest or other notice of any kind, which are all expressly waived by the Credit Parties hereby;
(b)stop advancing money or extending credit for Borrower’s benefit under this Agreement;
(c)settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that the Collateral Agent considers advisable, notify any Person owing Borrower or any other Credit Party money of the Collateral Agent’s security interest in favor and for the benefit of Lenders and the other Secured Parties in such funds, and verify the amount of such account;
(d)make any payments and do any acts it considers necessary or reasonable to protect the Collateral or the Collateral Agent’s security interest in favor and for the benefit of Lenders and the other Secured Parties in the Collateral.  Borrower shall use commercially reasonable efforts to assemble the Collateral if the Collateral Agent or the Required Lenders requests and make it available as the Collateral Agent or the Required Lenders designates.  The Collateral Agent or its agents or representatives may enter premises where the Collateral is located, to the extent that any Credit Party itself would have the right to do so, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to the Collateral Agent’s security interest in favor and for the benefit of Lenders and the other Secured Parties and pay all expenses incurred.  Each Credit Party grants the Collateral Agent a license to (and for its agents and representatives to) enter and occupy any of its premises, without charge, to exercise any of the Collateral Agent’s or Lenders’ rights or remedies;
(e)apply to the Obligations (i) any balances and deposits of any Credit Party it holds in any Collateral Account subject to a Control Agreement, or (ii) any amount held by the Collateral Agent owing to or for the credit or the account of the Borrower;
(f)ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral. The Collateral Agent is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, each Credit Party’s labels, Patents, Copyrights, mask works, rights of use of any name, trade secrets, trade names, Trademarks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with the Collateral Agent’s exercise of its rights under this Section 8.1, each Credit Party’s rights under all licenses and all franchise agreements inure to the Collateral Agent’s benefit;
(g)place a “hold” on any account maintained with the Collateral Agent or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral;
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(i)exercise all rights and remedies available to the Collateral Agent or any Lender under the Collateral Documents or any other Loan Documents or at law or equity, including all remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof).
The Collateral Agent and each Lender agrees that in connection with any foreclosure or other exercise of rights under this Agreement or any other Loan Document with respect to the Intellectual Property, the rights of the licensees under the Permitted Licenses will not be terminated, limited or otherwise adversely affected so long as no default exists under the Permitted License in a way that would permit the licensor to terminate such Permitted License (commonly termed a non-disturbance).
8.2    Application of Payments and Proceeds Upon Default.  If an Event of Default has occurred and is continuing, the Collateral Agent may, in the exercise of remedies, apply any funds in its possession, whether from Borrower account balances, payments, proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, or otherwise, to the Obligations in the order set forth in Section 2.2(d).  Any surplus shall be paid to Borrower or, at Borrower’s direction, to other Persons legally entitled thereto; Borrower shall remain liable to Lenders for any deficiency.  If the Collateral Agent or any Lender directly or indirectly enters into a deferred payment or other credit transaction with any purchaser at any sale of Collateral, the Collateral Agent or such Lender, as applicable, shall have the option, exercisable at any time, of either reducing the Obligations by the principal amount of the purchase price or deferring the reduction of the Obligations until the actual receipt by the applicable Lender(s) of cash therefor.
8.3    Protective Advances.  If Borrower fails to obtain the insurance called for by Section 5.5 or fails to pay any premium thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan Document, the Collateral Agent or Lenders may obtain such insurance or make such payment, and all amounts so paid by the Collateral Agent or any Lender are Lender Expenses and immediately due and payable, bearing interest at the Default Rate, and secured by the Collateral.  The Collateral Agent or the applicable Lender will provide Borrower with notice of such Person’s having obtained such insurance at the time it is obtained or within a reasonable time thereafter.  Borrower may later cancel any insurance purchased by the Collateral Agent or Lenders, but only after providing the Collateral Agent (with a copy to Lenders) with evidence (in form and substance reasonably satisfactory to the Collateral Agent or the applicable Lender) that there has been obtained insurance as required in Section 5.5.  No payments by the Collateral Agent or any Lender are deemed an agreement to make similar payments in the future or the Collateral Agent’s or any Lender’s waiver of any Event of Default.
8.4    Power of Attorney.  Each Credit Party hereby irrevocably appoints the Collateral Agent as its lawful attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, to:  (a) endorse each Credit Party’s name on any checks or other forms of payment or security; (b) sign each Credit Party’s name on any invoice or bill of lading for any Account or drafts against Account Debtors; (c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on terms Lender determines reasonable; (d) make, settle, and adjust all claims under each Credit Party’s insurance policies; (e) pay, contest 

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or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of the Collateral Agent, any Lender or a third party as the Code permits.  Each Credit Party hereby appoints the Collateral Agent as its lawful attorney-in-fact to file or record any documents necessary to perfect or continue the perfection of the Collateral Agent’s security interest in favor and for the benefit of Lenders and the other Secured Parties in the Collateral (including any financing statements and amendments, continuations or terminations thereof) regardless of whether an Event of Default has occurred until all Obligations (other than inchoate indemnity obligations) have been satisfied in full and no Lender is under any further obligation to make Credit Extensions hereunder.  The foregoing appointment of the Collateral Agent as Borrower’s attorney in fact, and all of the Collateral Agent’s rights and powers, coupled with an interest, are irrevocable until all Obligations (other than inchoate indemnity obligations) have been fully repaid and performed and the obligation of any and all Lenders to provide Credit Extensions terminates.
8.5    Collateral Agent’s Liability for Collateral.  So long as the Collateral Agent complies with Requirements of Law regarding the safekeeping of the Collateral in its possession or under its control, the Collateral Agent shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; or (c) any act or default of any carrier, warehouseman, bailee, or other Person, except to the extent arising as a result of the Collateral Agent’s bad faith, gross negligence or willful misconduct as determined by a final, non-appealable judgment of a court of competent jurisdiction.  Subject to the immediately preceding sentence, in no event shall the Collateral Agent or any Lender have any liability for any diminution in the value of the Collateral for any reason.  Borrower bears all risk of loss, damage or destruction of the Collateral.
8.6    No Waiver; Remedies Cumulative.  The Collateral Agent’s or any Lender’s failure, at any time or times, to require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of the Collateral Agent or any Lender thereafter to demand strict performance and compliance herewith or therewith (unless the Collateral Agent so expressly waives any such right in writing).  No waiver hereunder shall be effective unless signed by the party granting the waiver and then is only effective for the specific instance and purpose for which it is given.  Each of the Collateral Agent’s and Lender’s rights and remedies under this Agreement and the other Loan Documents are cumulative.  Each of the Collateral Agent and Lenders has all rights and remedies provided under the Code, by law or in equity.  The exercise by the Collateral Agent or any Lender of one right or remedy shall not preclude the Collateral Agent or any Lender from exercising any other remedy under this Agreement or other remedy available at law or in equity, and the waiver by the Collateral Agent or any Lender of any Event of Default is not a continuing waiver.  The Collateral Agent’s or any Lender’s delay in exercising any remedy is not a waiver of any rights hereunder, election of any one remedy, or acquiescence to any default or Event of Default.
8.7    Demand Waiver; Makewhole Amount; Prepayment Premium.  Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, 

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documents, instruments, chattel paper, and guarantees held by the Collateral Agent or Lenders on which Borrower is liable.  Borrower acknowledges and agrees that if the maturity of all Obligations shall be accelerated pursuant to Section 8.1(a) by reason of the occurrence of an Event of Default, the Makewhole Amount or Prepayment Premium, as applicable, that is payable pursuant to Section 2.2(e) or Section 2.2(f), as the case may be, shall become due and payable by Borrower upon such acceleration, whether such acceleration is automatic or is effected by the Collateral Agent’s or Lenders’ declaration thereof, as provided in Section 8.1(a), and Borrower shall pay the Makewhole Amount or Prepayment Premium, as applicable, that is payable pursuant to Section 2.2(e) or Section 2.2(f), as the case may be, as compensation to Lenders for the loss of their respective investment opportunities and not as a penalty, and Borrower waives any right to object thereto in any voluntary or involuntary bankruptcy, insolvency or similar proceeding or otherwise.
9.NOTICES.
All notices, consents, requests, approvals, demands, or other communication by any party to this Agreement or any other Loan Document must be in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three (3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by electronic mail or facsimile transmission; (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address, facsimile number, or email address (if any) indicated below.  The Collateral Agent, any Lender or any Credit Party may change its mailing or electronic mail address or facsimile number by giving all other parties hereto written notice thereof in accordance with the terms of this Section 9.
If to Borrower or any other Credit Party:
Attention: Jeffrey Wade
LEXICON PHARMACEUTICALS, INC.
8800 Technology Forest place
The Woodlands, TX 77381-1160
Telephone: +1 (281)-863-3000
Email: [**]

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with a copy to (which shall not constitute notice) to:
Vinson & Elkins LLP 
1001 Fannin Street
Ste. 2500
Houston, TX 77002
Attn:  Guy Gribov
Telephone: [**]
Facsimile:  [**]
Email:  [**]
If to the Collateral Agent:
BIOPHARMA CREDIT PLC
c/o Beaufort House
51 New North Road
Exeter EX4 4EP
United Kingdom
Attn:  Company Secretary
Tel: [**]
Fax:  [**]
with copies (which shall not constitute notice) to:
Pharmakon Advisors LP
110 East 59th Street, #3300
New York, NY 10022
Attn:  Pedro Gonzalez de Cosio
Phone: [**]
Fax: [**]
Email:  [**]

and
Akin Gump Strauss Hauer & Feld LLP
One Bryant Park
New York, NY 10036-6745
Attn:  Geoffrey E. Secol
Phone: [**]
Fax: [**]
Email:  [**]

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	If to any Lender:
	To the address set forth on Exhibit E attached hereto for such Lender

10.CHOICE OF LAW, VENUE, AND JURY TRIAL WAIVER
THE LOAN DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY PRINCIPLES OF CONFLICTS OF LAW THAT COULD REQUIRE THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION.  Each of the Credit Parties, Lenders and the Collateral Agent submit to the exclusive jurisdiction of the courts of the State of New York sitting in New York County, and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by Requirements of Law, in such Federal court; provided, however, that nothing in this Agreement shall be deemed to operate to preclude the Collateral Agent or any Lender from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the Obligations, or to enforce a judgment or other court order in favor of the Collateral Party or any Lender.  Each Credit Party expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and each Credit Party hereby waives any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court.  Each Credit Party hereby waives personal service of the summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to such party at the address set forth in (or otherwise provided in accordance with the terms of) Section 9 of this Agreement and that service so made shall be deemed completed upon the earlier to occur of such party’s actual receipt thereof or three (3) days after deposit in the U.S. mails, proper postage prepaid.
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE CREDIT PARTIES, LENDERS AND THE COLLATERAL AGENT WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS.  THIS WAIVER IS A MATERIAL INDUCEMENT FOR ALL PARTIES HERETO TO ENTER INTO THIS AGREEMENT.  EACH PARTY HERETO HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.
11.GENERAL PROVISIONS
11.1    Successors and Assigns.  This Agreement binds and is for the benefit of the parties hereto and their respective successors and permitted assigns.  No Credit Party may transfer, pledge or assign this Agreement or any other Loan Document or any rights or obligations under hereunder or thereunder without the prior written consent of each Lender.  Each Lender may sell, transfer, assign or pledge this Agreement or any other Loan Document or any rights or obligations hereunder or thereunder, and may grant a participation in all or any part of, or any interest in, such Lender’s 

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obligations, rights or benefits under this Agreement and the other Loan Documents, to any Eligible Assignee and the Collateral Agent shall record such Lender Transfer in accordance with Section 2.8.  Each Lender shall provide Borrower with written notice of a Lender Transfer by it (to the extent Borrower’s consent is not required for such Lender Transfer) and to each other Lender and the Collateral Agent no later than the date on which such Lender Transfer occurs.  Any attempted transfer, pledge or assignment of this Agreement or any other Loan Document or any rights or obligations under hereunder or thereunder in violation of this Section 11.1 shall be null and void.
11.2    Indemnification; Costs and Expenses.
(a)Borrower agrees to indemnify and hold harmless each of the Collateral Agent and Lenders and each of their respective Related Parties (each such Person, an “Indemnified Person”) from and against any and all Indemnified Liabilities; provided, however, that (i) no Credit Party shall have any obligation to any Indemnified Person hereunder with respect to any Indemnified Liabilities to the extent such Indemnified Liabilities arise from the bad faith, gross negligence or willful misconduct of that Indemnified Person (or of its Related Parties), in each case, as determined by a final, non-appealable judgment of a court of competent jurisdiction, (ii) no Credit Party shall have any obligation to any Indemnified Person hereunder with respect to any Indemnified Liabilities to the extent such Indemnified Liabilities arise from a material breach of any obligation of such Indemnified Person hereunder, and (iii) no Credit Party shall have any obligation to any Indemnified Person hereunder with respect to any Indemnified Liabilities to the extent such Indemnified Liabilities arise from any claim by one Indemnified Person against another Indemnified Person that does not relate to any act or omission of any Credit Party, and (iv) no Credit Party shall be liable for any settlement of any claim or proceeding effected by any Indemnified Person without the prior written consent of such Credit Party (which consent shall not be unreasonably withheld or delayed), but if settled with such consent or if there shall be a final judgment against an Indemnified Person, each of the Credit Parties shall, jointly and severally, indemnify and hold harmless such Indemnified Person from and against any loss or liability by reason of such settlement or judgment in the manner set forth in this Agreement. This Section 11.2(a) shall not apply with respect to Taxes, which shall be governed solely by Section 2.6.
(b)To the extent permitted by Requirements of Law, no Credit Party shall assert, and each Credit Party hereby waives, any claim against each of the Collateral Agent and Lenders (and their respective successor and assigns) and each of their respective Related Parties, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, arising out of, as a result of, or in any way related to, this Agreement or any Loan Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the transactions contemplated hereby or thereby, the Term Loan or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, and each Credit Party hereby waives, releases and agrees not to sue upon any such claim or any such damages, whether or not accrued and whether or not known or suspected to exist in its favor.

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(c)Any action taken by any Credit Party under or with respect to any Loan Document, even if required under any Loan Document or at the request of the Collateral Agent or any Lender, shall be at the expense of such Credit Party, and neither the Collateral Agent nor any Secured Party shall be required under any Loan Document to reimburse any Credit Party or any Subsidiary of any Credit Party therefor except as expressly provided therein.  In addition, Borrower agrees to pay or reimburse upon demand each of the Collateral Agent and Lenders (and their respective successors and assigns) and each of their respective Related Parties for (i) all reasonable out-of-pocket costs and expenses incurred by it in connection with the investigation, development, preparation, negotiation, syndication, execution, interpretation or administration of, any modification of any term of or termination of, any Loan Document, any commitment or proposal letter therefor, any other document prepared in connection therewith or the consummation and administration of any transaction contemplated therein, (ii) all reasonable costs and expenses incurred by it in connection with internal audit reviews and Collateral audits and (iii) all costs and expenses incurred by it in connection with (A) any refinancing or restructuring of the credit arrangements provided hereunder in the nature of a “work-out”, (B) the enforcement or preservation of any right or remedy under any Loan Document, any Obligation, with respect to the Collateral or any other related right or remedy or (C) the commencement, defense, conduct of, intervention in, or the taking of any other action with respect to, any proceeding (including any bankruptcy or insolvency proceeding) related to any Credit Party, Subsidiary of any Credit Party, Loan Document or Obligation (or the response to and preparation for any subpoena or request for document production relating thereto), including Lender Expenses; provided that, with respect to out-of-pocket legal fees and expenses incurred in connection with this clause (c), the Credit Parties shall only be required to reimburse the reasonable and documented legal fees and expenses of a single legal counsel (plus, if required, one local legal counsel in any relevant, material jurisdiction) for the Collateral Agent, Lenders and their respective Related Parties (and , in the case of an actual or perceived conflict of interest where the party affected by such conflict informs Borrower in writing of such conflict and thereafter retains its own legal counsel, of one additional legal counsel for all such similarly situated affected parties and, if required, one local legal counsel in any relevant, material jurisdiction).
11.3    Severability of Provisions.  In case any provision in or obligation hereunder or under any other Loan Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.
11.4    Correction of Loan Documents.  The Collateral Agent or Required Lenders may correct patent errors and fill in any blanks in the Loan Documents consistent with the agreement of the parties hereto so long as the Collateral Agent or Required Lenders, as applicable, provides the Credit Parties and the other parties hereto with written notice in accordance with Section 9 of such correction and allows the Credit Parties at least ten (10) days to object to such correction by delivery of a written notice thereof to the Collateral Agent or Required Lenders, as applicable, and the other parties hereto.  In the event of such objection, such correction shall not be made except by an amendment signed by each of the parties hereto.

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11.5    Amendments in Writing; Integration.  (a) No amendment or modification of any provision of this Agreement or any other Loan Document, or waiver, discharge or termination of any obligation hereunder or thereunder, no approval or consent hereunder or thereunder (including any consent by Borrower to any departure herefrom or therefrom), shall in any event be effective unless the same shall be in writing and signed by Borrower (on its own behalf and on behalf of each other Credit Party) and the Required Lenders; provided, however, that no such amendment, modification, waiver, discharge, termination, approval or consent shall, unless in writing and signed by the Collateral Agent and the Required Lenders, affect the rights or duties of, or any amounts payable to, the Collateral Agent under this Agreement or any other Loan Document.  Any waiver, approval or consent granted hereunder shall be limited to the specific circumstance expressly described in it (unless otherwise provided), and shall not apply to any subsequent or other circumstance, whether similar or dissimilar, or give rise to, or evidence, any obligation or commitment to grant any further waiver, approval or consent.
(b)    This Agreement and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.  All prior agreements, understandings, representations, warranties, and negotiations among the parties hereto about the subject matter of this Agreement and the Loan Documents merge into this Agreement and the Loan Documents.
11.6    Counterparts.  This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Agreement.
11.7    Survival.  All covenants, representations and warranties made in this Agreement continue in full force until this Agreement has terminated pursuant to its terms and Payment in Full has occurred.  The indemnification obligations of Borrower and each other Credit Party in Section 11.2 shall survive until the statute of limitations with respect to any claim thereunder or cause of action relating thereto shall have run.
11.8    Confidentiality.  Any information regarding the Credit Parties and their Subsidiaries and their businesses provided to Lenders or the Collateral Agent by or on behalf of any Credit Party pursuant to this Agreement shall be deemed “Confidential Information”; provided, however, that Confidential Information does not include information that is either:(a) in the public domain or becomes part of the public domain after disclosure to any Lender or the Collateral Agent or any of their respective Affiliates other than as a result of a breach by any Lender or the Collateral Agent or any of their respective Affiliates of the obligations under this Section 11.8; or (b) disclosed to any Lender or the Collateral Agent or any of their respective Affiliates by a third party if such Lender or the Collateral Agent or such Affiliate, as applicable, does not know that the third party is prohibited from disclosing the information.  Neither the Collateral Agent nor any Lender shall disclose any Confidential Information to a third party or use Confidential Information for any purpose other than the exercise of its rights and the performance of its duties or obligations under the Loan Documents.  The foregoing in this Section 11.8 notwithstanding, the Collateral Agent and each Lender may disclose Confidential Information: (i) to any of such Lender’s Subsidiaries or Affiliates; (ii) to prospective transferees or purchasers of any interest of such Lender in the Credit Extensions that 

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are Eligible Assignees; (iii) as required by law, regulation, subpoena, or other order; (iv) to the extent requested by regulators having jurisdiction over the Collateral Agent or such Lender or as otherwise required in connection with the Collateral Agent’s or such Lender’s examination or audit; (v) as reasonably necessary in exercising remedies under the Loan Documents; or (vi) as reasonably necessary and on a need to know basis to any of its or its Affiliates’ directors, officers, employees, consultants and professional advisors who agree to be bound by the confidentiality provisions of this Section 11.8; provided, however, that the third parties to which Confidential Information is disclosed pursuant to clauses (i) and (ii) are bound by obligations of confidentiality and non-use that are no less restrictive than those contained herein.
The provisions of this Section 11.8 shall survive the termination of this Agreement.
11.9    Right of Set-Off.  In addition to any rights now or hereafter granted under Requirements of Law and not by way of limitation of any such rights, upon the occurrence of an Event of Default and at any time thereafter during the continuance of any Event of Default, each Lender is hereby authorized by each Credit Party at any time or from time to time, without prior notice to any Credit Party or to any other Person, any such notice being hereby expressly waived, to set off and to appropriate and to apply any and all deposits (general or special, including Indebtedness evidenced by certificates of deposit, whether matured or unmatured, but not including trust accounts) and any other Indebtedness at any time held or owing by such Lender to or for the credit or the account of any Credit Party against and on account of the obligations and liabilities of any Credit Party to such Lender hereunder and under the other Loan Documents, including all claims of any nature or description arising out of or connected hereto or with any other Loan Document, irrespective of whether or not (a) the Collateral Agent or such Lender shall have made any demand hereunder or (b) the principal of or the interest on the Term Loans or any other amounts due hereunder shall have become due and payable pursuant to Section 2 and although such obligations and liabilities, or any of them, may be contingent or unmatured.  Each Lender agrees to promptly notify Borrower and the Collateral Agent in writing after any such set off and application made by such Lender; provided that the failure to give such notice shall not affect the validity of such set off and application.
11.10    Marshalling; Payments Set Aside.  Neither the Collateral agent nor any Lender shall be under any obligation to marshal any assets in favor of any Credit Party or any other Person or against or in payment of any or all of the Obligations.  To the extent that any Credit Party makes a payment or payments to any Lender, or the Collateral Agent or any Lender enforces any Liens or exercises its rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, any other state or federal law, common law or any equitable cause, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related thereto, shall be reinstated and continued in full force and effect as if such payment or payments had not been made or such enforcement or setoff had not occurred.
11.11    Electronic Execution of Documents.  The words “execution,” “signed,” “signature” and words of like import in any Loan Document shall be deemed to include electronic signatures 

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or the keeping of records in electronic form, each of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use of a paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any Requirements of Law, including any state law based on the Uniform Electronic Transactions Act.
11.12    Captions.  Section headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect.
11.13    Construction of Agreement.  The parties hereto mutually acknowledge that they and their attorneys have participated in the preparation and negotiation of this Agreement.  In cases of uncertainty this Agreement shall be construed without regard to which of the parties hereto caused the uncertainty to exist.
11.14    Third Parties.  Nothing in this Agreement, whether express or implied, is intended to: (a) except as expressly provided in Section 11.2(a), confer any benefits, rights or remedies under or by reason of this Agreement on any Persons other than the express parties to it and their respective successors and permitted assigns; (b) relieve or discharge the obligation or liability of any Person not an express party to this Agreement; or (c) give any Person not an express party to this Agreement any right of subrogation or action against any party to this Agreement.
11.15    No Advisory or Fiduciary Duty.  The Collateral Agent and each Lender may have economic interests that conflict with those of the Credit Parties.  Each Credit Party agrees that nothing in the Loan Documents or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between any Lender or the Collateral Agent, on the one hand, and such Credit Party, its Subsidiaries, and any of their respective stockholders or affiliates, on the other hand.  Each Credit Party acknowledges and agrees that (i) the transactions contemplated by the Loan Documents are arm’s-length commercial transactions between each Lender and the Collateral Agent, on the one hand, and such Credit Party, its Subsidiaries and their respective affiliates, on the other hand, (ii) in connection therewith and with the process leading to such transaction, the Collateral Agent and each Lender is acting solely as a principal and not the agent or fiduciary of such Credit Party, its Subsidiaries or their respective affiliates, management, stockholders, creditors or any other Person, (iii) Neither the Collateral Agent nor any Lender has assumed an advisory or fiduciary responsibility in favor of any Credit Party, its Subsidiaries or their respective affiliates with respect to the transactions contemplated hereby or the process leading thereto (irrespective of whether the Collateral Agent or any Lender or any of their respective affiliates has advised or is currently advising such Credit Party, its Subsidiaries or their respective affiliates on other matters) or any other obligation to such Credit Party, its Subsidiaries or their respective affiliates except the obligations expressly set forth in the Loan Documents and (iv) each Credit Party, its Subsidiaries and their respective affiliates have consulted their own legal and financial advisors to the extent each deemed appropriate.  Each Credit Party further acknowledges and agrees that it is responsible for making its own independent judgment with respect to such transactions and the process leading thereto.  Each Credit Party agrees that it will not claim that the Collateral Agent or any Lender has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to such Credit Party, its Subsidiaries or their respective affiliates in connection with such transaction or the process leading thereto.

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12.COLLATERAL AGENT
12.1    Appointment and Authority.  Each of the Lenders hereby irrevocably appoints BioPharma Credit PLC to act on its behalf as the Collateral Agent hereunder and under the other Loan Documents and authorizes the Collateral Agent to take such actions on its behalf and to exercise such powers as are delegated to the Collateral Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  Except for the first sentence of Section 12.6 and the last paragraph of Section 12.8, the provisions of this Section 12 are solely for the benefit of the Collateral Agent and the Lenders, and neither Borrower nor any other Credit Party shall have rights as a third party beneficiary of any of such provisions.  Subject to Section 12.8 and Section 11.5, any action required or permitted to be taken by the Collateral Agent hereunder shall be taken with the prior approval of the Required Lenders.
12.2    Rights as a Lender.  The Person serving as the Collateral Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Collateral Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Collateral Agent hereunder in its individual capacity.  Such Person and its Affiliates may lend money to, own securities of, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Collateral Agent hereunder and without any duty to account therefor to the Lenders.
12.3    Exculpatory Provisions.
(a)The Collateral Agent shall not have any duties or obligations to the Lenders except those expressly set forth herein and in the other Loan Documents to which it is a party.  Without limiting the generality of the foregoing, with respect to the Lenders the Collateral Agent:
(i)shall not be subject to any fiduciary or other implied duties, regardless of whether a Default or Event of Default has occurred and is continuing;
(ii)shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents to which it is a party that the Collateral Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in such other Loan Documents), provided that the Collateral Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Collateral Agent to liability or that is contrary to any Loan Document or Requirements of Law; and
(iii)shall not, except as expressly set forth herein and in the other Loan Documents to which it is a party, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Collateral Agent or any of its Affiliates in any capacity.

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(b)The Collateral Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Collateral Agent shall believe in good faith shall be necessary, under the circumstances as provided in Section 11.5) or (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by final and nonappealable judgment.  The Collateral Agent shall be deemed not to have knowledge of any Default or Event of Default unless and until notice describing such Default or Event of Default is given to the Collateral Agent in writing by Borrower or a Lender.
(c)The Collateral Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default or Event of Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Section 3 or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Collateral Agent.
12.4    Reliance by Collateral Agent.  The Collateral Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.  The Collateral Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon.  The Collateral Agent may consult with legal counsel (who may be counsel for Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.
12.5    Delegation of Duties.  The Collateral Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Collateral Agent.  The Collateral Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties.  The exculpatory provisions of this Section 12 shall apply to any such sub-agent and to the Related Parties of the Collateral Agent and any such sub-agent.  The Collateral Agent shall not be responsible for the negligence or misconduct of any sub-agent except to the extent that a court of competent jurisdiction determines in a final and nonappealable judgment that the Collateral Agent acted with gross negligence or willful misconduct in the selection of such sub-agent.
12.6    Resignation of Collateral Agent.  The Collateral Agent may at any time give notice of its resignation to the Lenders and Borrower.  Upon the receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with Borrower so long as no Default has 

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occurred and is continuing, to appoint a successor.  If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring Collateral Agent gives notice of its resignation, then the retiring Collateral Agent may, on behalf of the Lenders, appoint a successor Collateral Agent; provided that, whether or not a successor has been appointed or has accepted such appointment, such resignation shall become effective upon delivery of the notice thereof.  Upon the acceptance of a successor’s appointment as Collateral Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or retired) Collateral Agent, and the retiring Collateral Agent shall be discharged from all of its duties and obligations under the Loan Documents (if not already discharged therefrom as provided above in this Section 12.6).  After the retiring Collateral Agent’s resignation, the provisions of this Section 12 and Section 10 shall continue in effect for the benefit of such retiring Collateral Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Collateral Agent was acting as Collateral Agent.  Upon any resignation by the Collateral Agent, all payments, communications and determinations provided to be made by, to or through the Collateral Agent shall instead be made by, to or through each Lender directly, until such time as a Person accepts an appointment as Collateral Agent in accordance with this Section 12.6.
12.7    Non-Reliance on Collateral Agent and Other Lenders.  Each Lender acknowledges that it has, independently and without reliance upon the Collateral Agent or any other Lender or any of their respective Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement and make Credit Extensions hereunder.  Each Lender also acknowledges that it will, independently and without reliance upon the Collateral Agent or any other Lender or any of their respective Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.
12.8    Collateral and Guaranty Matters.  Each Lender agrees that any action taken by the Collateral Agent or the Required Lenders in accordance with the provisions of this Agreement or of the other Loan Documents, and the exercise by the Collateral Agent or Required Lenders of the powers set forth herein or therein, together with such other powers as are reasonably incidental thereto, shall be authorized and binding upon all of the Lenders.  Without limiting the generality of the foregoing, the Lenders irrevocably authorize the Collateral Agent, at its option and in its discretion:
(a)    to release any Lien on any property granted to or held by the Collateral Agent under any Collateral Document (A) upon discharge of the Obligations, (B) that is sold, transferred, disposed or to be sold, transferred, disposed as part of or in connection with any sale, transfer or other disposition (other than any sale to a Credit Party) permitted hereunder, (C) subject to Section 11.5, if approved, authorized or ratified in writing by the Required Lenders or (D) to the extent such property is owned by a Guarantor upon the release of such Guarantor from its obligations under the Security Agreement pursuant to clause (c) below;

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(b)    to subordinate any Lien on any property granted to or held by the Collateral Agent under any Loan Document to the holder of any Lien on such property that is permitted by clause (d), (g), (k), (q), (x) and (bb) (solely with respect to modifications, replacements, extensions or renewals of Liens permitted under clause (d), (g), (k), (q) and (x) of the definition of “Permitted Liens”) of the definition of “Permitted Liens”;
(c)    to release any Guarantor from its obligations under the Security Agreement if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder;
(d)to enter into non-disturbance and similar agreements in connection with the licensing of Intellectual Property permitted pursuant to the terms of this Agreement; and
(e)to enter into a subordination, intercreditor, or other similar agreement as contemplated by Section 6.11 or clause (d) or (h) of the definition of “Permitted Indebtedness”.
Upon request by the Collateral Agent at any time the Required Lenders will confirm in writing the Collateral Agent’s authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations under the Security Agreement pursuant to this Section 12.8.
In each case as specified in this Section 12.8, the Collateral Agent will (and each Lender irrevocably authorizes the Collateral Agent to), at Borrower’s expense, execute and deliver to the applicable Credit Party such documents as such Credit Party may reasonably request (i) to evidence the release or subordination of such item of Collateral from the Liens and security interests granted under the Collateral Documents, (ii) to enter into non-disturbance or similar agreements in connection with the licensing of Intellectual Property, (iii) to enter into a subordination, intercreditor, or other similar agreement as contemplated by Section 6.11 or clause (d) or (h) of the definition of “Permitted Indebtedness” or (iv) to evidence the release of any Guarantor from its obligations under the Security Agreement, in each case in accordance with the terms of the Loan Documents and this Section 12.8 and in form and substance reasonably acceptable to the Collateral Agent.
Without limiting the generality of Section 12.10 below, the Collateral Agent shall deliver to the Lenders notice of any action taken by it under this Section 12.8 promptly after the taking thereof; provided that delivery of or failure to deliver any such notice shall not affect the Collateral Agent’s rights, powers, privileges and protections under this Section 12.
12.9    Reimbursement by Lenders.  To the extent that Borrower for any reason fails to indefeasibly pay any amount required under Section 2.4 to be paid by it to the Collateral Agent (or any sub-agent thereof) or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Collateral Agent (or any such sub-agent) or such Related Party, as the case may be, such Lender’s pro rata share (based upon the percentages as used in determining the Required Lenders as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the unreimbursed expense or indemnified loss, damage, liability or related expense, as the case may be, was incurred by or asserted against the Collateral Agent (or any such sub-agent) in its capacity as such or against any Related Party of any of the foregoing acting for the Collateral Agent (or any sub-agent) in connection with such capacity.

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12.10    Notices and Items to Lenders.  The Collateral Agent shall deliver to the Lenders each notice, report, statement, approval, direction, consent, exemption, authorization, waiver, certificate, filing or other item received by it pursuant to this Agreement or any other Loan Document (including any item received by it pursuant to Section 3 or set forth on Schedule 5.16 of the Disclosure Letter); provided, that any delivery of or failure to deliver any such notice, report, statement, approval, direction, consent, exemption, authorization, waiver, certificate, filing or item shall not otherwise alter or effect the rights of the Lenders or the Collateral Agent under this Agreement or any other Loan Document or the validity of such item.  In addition, to the extent the Collateral Agent or the Required Lenders deliver any notices, approvals, authorizations, directions, consents or waivers to Borrower pursuant to this Agreement or any other Loan Document, the Collateral Agent or the Required Lenders, as applicable, will also deliver such notice, approval, authorization, direction, consent or waiver to the other Lenders on or about the same time such notice, approval, authorization, direction, consent or waiver is provided to Borrower; provided, that the delivery of or failure to deliver such notice, approval, authorization, direction, consent or waiver to the other Lenders shall not in any way effect the obligations of Borrower, or the rights of the Collateral Agent or the Required Lenders, in respect of such notice, approval, authorization, direction, consent or waiver or the validity thereof.
13.DEFINITIONS
13.1    Definitions.  For the purposes of and as used in the Loan Documents:  (a) references to any Person include its successors and assigns and, in the case of any Governmental Authority, any Person succeeding to its functions and capacities; (b) except as the context otherwise requires (including to the extent otherwise expressly provided in any Loan Document), (i) references to any law, treaty, order, policy, rule or regulation include amendments, supplements and successors thereto and (ii) references to any contract, agreement, instrument or other document (including any Contract) include any amendments, restatements, supplements or modifications thereto from time to time to the extent permitted by the provisions thereof; (c) the word “shall” is mandatory; (d) the word “may” is permissive; (e) the word “or” has the inclusive meaning represented by the phrase “and/or”; (f) the words “include”, “includes” and “including” are not limiting; (g) the singular includes the plural and the plural includes the singular; (h) each authorization herein shall be deemed irrevocable and coupled with an interest; (i) all accounting terms shall be interpreted, and all determinations relating thereto shall be made, in accordance with Applicable Accounting Standards; (j) references to any time of day shall be to New York time; (k) the words “herein”, “hereof”, “hereby”, “hereto” and “hereunder” refer to this Agreement as a whole; and (l) references to specific sections, articles, annexes and exhibits are to this Agreement and references to specific schedules are to the Disclosure Letter.  As used in this Agreement, the following capitalized terms have the following meanings:
“Account” means any “account” as defined in the Code with such additions to such term as may hereafter be made, and includes all accounts receivable, book debts, and other sums owing to Credit Parties.
“Account Debtor” means any “account debtor” as defined in the Code with such additions to such term as may hereafter be made.

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“Acquisition” means (a) any Stock Acquisition, or (b) any Asset Acquisition, in each case, in excess of $10,000,000 individually, or when taken together with all other Acquisitions during the same fiscal year, in the aggregate.
“Additional Consideration” is defined in Section 2.7.
“Adverse Proceeding” means any action, suit, proceeding, hearing (whether administrative, judicial or otherwise), governmental investigation or arbitration (whether or not purportedly on behalf of any Credit Party or any of its Subsidiaries) at law or in equity, or before or by any Governmental Authority, domestic or foreign (including any Environmental Claims), whether pending or, to the Knowledge of Borrower, threatened against or adversely affecting any Credit Party or any of its Subsidiaries or any assets or properties constituting Collateral of any Credit Party or any of its Subsidiaries.
“Affiliate” means, with respect to any Person, each other Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company or limited liability partnership, that Person’s managers and members.  As used in this definition, “control” means (a) direct or indirect beneficial ownership of at least fifty percent (50%) (or such lesser percentage which is the maximum allowed to be owned by a foreign corporation in a particular jurisdiction) of the voting share capital or other equity interest in a Person or (b) the power to direct or cause the direction of the management of such Person by contract or otherwise.  In no event shall the Collateral Agent or any Lender be deemed to be an Affiliate of Borrower or any of its Subsidiaries.
“Agreement” is defined in the preamble hereof.
“Anti-Terrorism Laws” means any Money Laundering Laws or other laws relating to terrorism or money laundering, including Executive Order No. 13224 (effective September 24, 2001), the Patriot Act, the laws comprising or implementing the Bank Secrecy Act, and the laws administered by OFAC.
“Applicable Accounting Standards” means with respect to Borrower and its Subsidiaries, generally accepted accounting principles in the United States as set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant segment of the accounting profession, which are applicable to the circumstances as of the date of determination, consistently applied.
“Applicable Percentage” means, at any time of determination, (a) from the Effective Date to, but excluding the Tranche B Closing Date, the percentage equal to a fraction, the numerator of which is the amount of such Lender’s Tranche A Commitment and the denominator of which is the Tranche A Loan Amount, and (b) from and after the Tranche B Closing Date, the percentage equal to a fraction, the numerator of which is the amount of the sum of such Lender’s Tranche A Commitment and Tranche B Commitment and the denominator of which is the amount of the sum 

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of the Tranche A Loan Amount and the Tranche B Loan Amount; provided that, if all or any portion of the Term Loans or commitments held by any Lender are transferred or assigned pursuant to a Lender Transfer, the “Applicable Percentage” shall be calculated from and after the effective date of such Lender Transfer to give effect to any proportional change in such Lender’s Tranche A Commitment and Tranche B Commitment, as applicable.
“Approved Fund” means any (a) investment company, fund, trust, securitization vehicle or conduit that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business or (b) any Person (other than a natural person) which temporarily warehouses loans for Lender or any entity described in the preceding clause (a) and that, with respect to each of the preceding clauses (a) and (b), is administered or managed by (i) Lender, (ii) an Affiliate of Lender or (iii) a Person (other than a natural person) or an Affiliate of a Person (other than a natural person) that administers or manages Lender.
“Asset Acquisition” means, with respect to Borrower or any of its Subsidiaries: (a) any purchase, inbound license or other acquisition of all or substantially all of the assets of any other Person (or of any business unit, line of business or division of such Person); or (b) any other purchase, inbound license or other acquisition of any properties or assets or businesses of any other Person for any purpose other than for administrative expenses and other ordinary course expenses and capital expenditures related to day-to-day operations, provided, that, for the avoidance of doubt, “Asset Acquisition” shall not include any co-promotion or co-marketing arrangement.
“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as now and hereafter in effect, or any successor statute.
“Blocked Person” means (a) any Person listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224, (b) a Person owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224, (c) a Person with which the Collateral Agent or any Lender is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law, (d) a Person that commits, threatens or conspires to commit or supports “terrorism” as defined in Executive Order No. 13224, or (e) a Person that is named a “specially designated national” or “blocked person” on the most current list published by OFAC or other similar list.
“Bloomberg” has the meaning set forth in the definition of “Reinvestment Yield.”
“Board of Directors” means, with respect to any Person, (i) in the case of any corporation, the board of directors of such Person, (ii) in the case of any limited liability company, the board of managers of such Person, or if there is none, the managing member or sole member of such Person, (iii) in the case of any partnership, the general partner of such Person and (iv) in any other case, the functional equivalent of the foregoing.
“Board of Governors” means the Board of Governors of the United States Federal Reserve System, or any successor thereto.

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“Books” means all books and records including ledgers, records regarding a Credit Party’s assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any Equipment that contains such information.
“Borrower” is defined in the preamble hereof.
“Borrowing Resolutions” means, with respect to any Person, those resolutions adopted by such Person’s Board of Directors and delivered by such Person to the Collateral Agent approving the Loan Documents to which such Person is a party and the transactions contemplated thereby (including each of the Tranche A Loan and, solely with respect to the Borrowing Resolutions to be delivered as a condition to the Tranche B Closing Date, the Tranche B Loan), which shall also include those resolutions adopted by Borrower’s preferred stockholders (if required).
“Business Day” means any day that is not a Saturday or a Sunday or a day on which banks are authorized or required to be closed in New York, New York.
“[**]” means [**].
“Cash Equivalents” means, as at any date of determination, (a) marketable securities (i) issued or directly and unconditionally guaranteed as to interest and principal by the United States, or (ii) issued by any agency of the United States carrying the same credit ratings as that of the direct obligations of the United States, in each case maturing within two years after such date; (b) marketable direct obligations issued by any state of the United States or any political subdivision of any such state or any public instrumentality thereof, in each case maturing within two years after such date; (c) corporate debt instruments maturing no more than two years from the date of acquisition thereof and having, at the time of the acquisition thereof, a rating of at least A, long term, or A1, short term, from S&P or at least A2, long term, or P1, short term, from Moody’s; (d) certificates of deposit or bankers’ acceptances maturing within two years after such date that are either fully guaranteed as to interest and principal by the Federal Deposit Insurance Corporation (FDIC), or issued or accepted by Lender or by any commercial bank organized under the laws of the United States or any state or other political subdivision thereof that (i) is at least “adequately capitalized” (as defined in the regulations of its primary Federal banking regulator), and (ii) has Tier 1 capital (as defined in such regulations) of not less than $100,000,000; and (e) shares of any money market mutual fund that (i) has substantially all of its assets invested continuously in the types of investments referred to in clauses (a) and (b) above, (ii) has net assets of not less than $500,000,000, and (iii) has the highest rating obtainable from either S&P or Moody’s.
“Change of Control” means a transaction or series of related transactions (including any merger or consolidation) in which any “person” or “group” (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) other than the Permitted Holders is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of a sufficient number of shares of all classes of stock then outstanding of Borrower ordinarily entitled to vote in the election of directors, empowering such “person” or “group” to elect a majority of the Board of Directors of Borrower, who did not have such power before such transaction.

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“Change of Control Notice” is defined in Section 2.2(c)(ii).
“Change in Law” means the occurrence, after the date of this Agreement, of any of the following:  (a) the adoption or taking into effect of any law, treaty, order, policy, rule or regulation, (b) any change in any law, treaty, order, policy, rule or regulation or in the administration, interpretation or application thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.  Notwithstanding the foregoing, neither a “Change in Law” nor a “change in any Requirements of Law” shall include any amendment made to FATCA after the date of this Agreement.
“Code” means the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of New York; provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles of the Code, the definition of such term contained in Article 9 of the Code (including by reference therein to another Article of the Code) shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, the Collateral Agent’s Lien in favor and for the benefit of Lenders and the other Secured Parties on any Collateral is governed by the Uniform Commercial Code in effect in a jurisdiction other than the State of New York, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions.
“Collateral” means, collectively, “Collateral” (as such term is defined in the Security Agreement) and all other property of whatever kind and nature subject or purported to be subject from time to time to a Lien under any Collateral Document.
“Collateral Account” means any Deposit Account, Securities Account, or Commodity Account.
“Collateral Agent” means BioPharma Credit PLC, in its capacity as Collateral Agent appointed under Section 12.1, and its successors and permitted assigns in such capacity.
“Collateral Documents” means the Security Agreement, the Control Agreements, the IP Agreements, any Mortgages and all other bailee waivers, instruments, documents and agreements delivered by any Credit Party pursuant to this Agreement or any of the other Loan Documents, in each case, in order to grant to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties or perfect a Lien on any Collateral as security for the Obligations, and all amendments, restatements, modifications or supplements thereof or thereto.

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“Commodity Account” means any “commodity account” as defined in the Code with such additions to such term as may hereafter be made.
“Company IP” means any and all of the following, as they exist throughout the world: (a) Current Company IP; (b) improvements, continuations, continuations-in-part, divisions, provisionals or any substitute applications, any patent issued with respect to any of the Current Company IP, any reissue, reexamination, renewal or patent term extension or adjustment (including any supplementary protection certificate) of any such patent, and any confirmation patent or registration patent or patent of addition based on any such patent, and all foreign counterparts of any of the foregoing; (c) trade secrets or trade secret rights, including any rights to unpatented inventions, know-how, operating manuals, confidential or proprietary information, research in progress, algorithms, data, databases, data collections, designs, processes, procedures, methods, protocols, materials, formulae, drawings, schematics, blueprints, flow charts, models, strategies, prototypes, techniques, and the results of experimentation and testing, including samples, in each case, as specifically related to any Product; (d) any and all IP Ancillary Rights specifically relating to any of the foregoing; and (e) regulatory filings, submissions and approvals related to any Product and all data provided in any of the foregoing.
“Company Lines of Business” means any one or more of lines of business, including the business of research and development, licensing, distribution, development, manufacturing and general commercialization, in each case, of pharmaceutical products, and any other business or operations reasonably related thereto, including diagnostics and devices.
“Compliance Certificate” means that certain certificate in the form attached hereto as Exhibit B.
“Confidential Information” is defined in Section 11.8.
“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.
“Contingent Obligation” means, for any Person, any direct or indirect liability, contingent or not, of that Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another Person directly or indirectly guaranteed, endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (b) any obligation for undrawn letters of credit for the account of that Person; or (c) any obligation to pay contingent or deferred consideration or other similar payments to a counterparty in connection with an Acquisition, Investment or a sale or other disposition or under any co-promotion or co-marketing arrangement or any in-license, including, with respect to any purchase price holdback in respect of a portion of the purchase price of an asset sold to such Person to satisfy unperformed obligations of the seller of such asset, any obligation to pay such seller the excess of such holdback over such obligations (which, for the avoidance of doubt shall include deferred payments of revenue or reimbursement obligations); provided that “Contingent Obligation” does not include endorsements in the ordinary course of business and does not include reimbursement obligations under exclusive licenses or co-promotion agreements.  The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if 

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not determinable, the maximum reasonably anticipated liability for it reasonably determined by such Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement.
“Control Agreement” means any control agreement entered into among the depository institution at which a Credit Party maintains a Deposit Account or the securities intermediary or commodity intermediary at which a Credit Party maintains a Securities Account or a Commodity Account, such Credit Party and the Collateral Agent, pursuant to which the Collateral Agent obtains control (within the meaning of the Code) over such Deposit Account, Securities Account, or Commodity Account.
“Controlled Foreign Corporation” shall mean “controlled foreign corporation” as defined in the Internal Revenue Code.
“Controlled Investment Affiliate” means, as to any Person, any other Person that (a) directly or indirectly, is in control of, is controlled by, or is under common control with, such Person and (b) is organized by such Person primarily for the purpose of making equity or debt investments in one or more companies.  For purposes of this definition, “control” of a Person means the power, directly or indirectly, to direct or cause the direction of the management and policies of such Person whether by contract or otherwise.
“Copyrights” means any and all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret (and all related IP Ancillary Rights).
“Credit Extension” means any Term Loan or any other extension of credit hereunder by Lender for Borrower’s benefit.
“Credit Party” means Borrower and each Guarantor.
“Current Company IP” is defined in Section 4.6(d).
“Current Company IP Agreement” is defined in Section 4.6(g).
“Customer Data” is defined in Section 4.6(u).
“Default” means an event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default.
“Default Rate” is defined in Section 2.3(b).
“Deposit Account” means any “deposit account” as defined in the Code with such additions to such term as may hereafter be made.
“Disclosure Letter” means the disclosure letter, dated as of the Effective Date, delivered by the Credit Parties to the Collateral Agent, as updated on the Tranche A Closing Date (if required) 

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and the Tranche B Closing Date (as applicable and if required) and otherwise from time to time pursuant to the terms of this Agreement.
“[**]” means, [**].
“Dollars,” “dollars” or use of the sign “$” means only lawful money of the United States and not any other currency, regardless of whether that currency uses the “$” sign to denote its currency or may be readily converted into lawful money of the United States.
“Domestic Subsidiary” means any Subsidiary organized under the laws of the United States.
“Effective Date” means the date on which each of the conditions set forth in Section 3.1 are satisfied.
“Eligible Assignee” means (a) any Lender, any Affiliate of any Lender or Approved Fund, (b) any commercial bank, insurance company, investment or mutual fund or other entity that is an “accredited investor” (as defined in Regulation D under the Securities Act) and which extends credit or buys loans as one of its businesses, and (c) any other Person (other than a natural Person) approved by Borrower (such approval not to be unreasonably withheld, delayed or conditioned).
“Environmental Claim” means any investigation, notice, notice of violation, claim, action, suit, proceeding, demand, abatement order or other order or directive (conditional or otherwise), by any Governmental Authority or any other Person, arising (i) pursuant to or in connection with any actual or alleged violation of any Environmental Law; (ii) in connection with any Hazardous Material or any actual or alleged Hazardous Materials Activity; or (iii) in connection with any actual or alleged damage, injury, threat or harm to health, safety, natural resources or the environment.
“Environmental Laws” means any and all current or future foreign or domestic, federal or state (or any subdivision of either of them), statutes, ordinances, orders, rules, regulations, judgments, Governmental Approvals, or any other requirements of Governmental Authorities relating to (i) environmental matters, including those relating to any Hazardous Materials Activity; (ii) the generation, use, storage, transportation or disposal of Hazardous Materials; or (iii) occupational safety and health, industrial hygiene, land use or the protection of human, plant or animal health or welfare, in each case, in any manner applicable to any Credit Party or any of its Subsidiaries or any Facility.
“Equipment” means all “equipment” as defined in the Code with such additions to such term as may hereafter be made, and includes all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing.
“Equity Interests” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent ownership interests in such Person (other than a corporation), including partnership interests and membership interests, and any and all warrants, rights or options to purchase or other arrangements or rights to acquire (by purchase, conversion, dividend, distribution or otherwise) any 

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of the foregoing (and all other rights, powers, privileges, interests, claims and other property in any manner arising therefrom or relating thereto).
“ERISA” means the Employee Retirement Income Security Act of 1974, and its regulations.
“ERISA Affiliate” means, with respect to any Person, any trade or business (whether or not incorporated) that, together with such Person, is treated as a single employer under Section 414 of the IRC.
“ERISA Event” means (a) any “reportable event,” as defined in Section 4043 of ERISA or the regulations issued thereunder, with respect to a Plan subject to Title IV of ERISA (other than an event for which the 30-day notice period is waived by regulation); (b) with respect to a Plan, the failure to satisfy the minimum funding standard of Section 412 of the IRC and Section 302 of ERISA, whether or not waived; (c) the failure to make by its due date a required installment under Section 430(j) of the IRC (or Section 430(j) of the IRC, as amended by the Pension Protection Act of 2006) with respect to any Plan or the failure to make any required contribution to a Multiemployer Plan; (d) the filing pursuant to Section 412(c) of the IRC or Section 303(d) of ERISA (or after the effective date of the Pension Protection Act of 2006, Section 412(c) of the IRC and Section 302(c) of ERISA) of an application for a waiver of the minimum funding standard with respect to any Plan; (e) the incurrence by Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (f) the receipt by Borrower or its Subsidiaries or any of their respective ERISA Affiliates from the Pension Benefit Guaranty Corporation (referred to and defined in ERISA) or a plan administrator of any notice relating to the intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan, or the occurrence of any event or condition which could reasonably be expected to constitute grounds under ERISA for the termination of, or the appointment of a trustee to administer, any Plan; (g) the incurrence by Borrower or its Subsidiaries or any of their respective ERISA Affiliates of any liability with respect to the withdrawal from any Plan or Multiemployer Plan; (h) the receipt by Borrower or its Subsidiaries or any of their respective ERISA Affiliates of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is insolvent or in reorganization, within the meaning of Title IV of ERISA; (i) the “substantial cessation of operations” within the meaning of Section 4062(e) of ERISA by Borrower or its ERISA Affiliates with respect to a Plan subject to Title IV of ERISA; (j) the making of any amendment to any Plan which could result in the imposition of a lien or the posting of a bond or other security; and (k) the occurrence of a nonexempt prohibited transaction (within the meaning of Section 4975 of the IRC or Section 406 of ERISA) which could reasonably be expected to result in material liability to Borrower or its Subsidiaries.
“Event of Default” is defined in Section 7.
“Exchange Act” means the Securities Exchange Act of 1934.
“Exchange Act Documents” is defined in Section 4.8(a).
“Excluded Accounts” is defined in Section 5.6.

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“Excluded Equity Interests” means, collectively, (i) any Equity Interests of any Subsidiary with respect to which the grant to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties of a security interest in and Lien upon, and the pledge to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties of, such Equity Interests, to secure the Obligations (and any guaranty thereof) are validly prohibited by Requirement of Law; (ii) any Equity Interests of any Subsidiary with respect to which the grant to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties of a security interest in and Lien upon, and the pledge to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties of, such Equity Interests, to secure the Obligations (and any guaranty thereof) require the consent, approval or waiver of any Governmental Authority or other third party and such consent, approval or waiver has not been obtained by Borrower following Borrower’s commercially reasonable efforts to obtain the same; (iii) any Equity Interests of any Subsidiary that is a non-Wholly-Owned Subsidiary, with respect to which, Borrower and the Collateral Agent reasonably determine by mutual agreement that the grant to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties of a security interest in and Lien upon, and the pledge to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties of, such Equity Interests, to secure the Obligations (and any guaranty thereof) are validly prohibited by, or would give any third party (other than Borrower or an Affiliate of Borrower) the right to terminate its obligations under, the Operating Documents of the joint venture agreement or shareholder agreement with respect to, or any other contract with such third party relating to such non-Wholly-Owned Subsidiary (other than customary non-assignment provisions which are ineffective under Article 9 of the Code or other Requirement of Law), but only, in each case, to the extent, and for so long as such Operating Document, joint venture agreement, shareholder agreement or other contract is in effect and Borrower has not obtained the consent, approval or waiver of such third party following Borrower’s commercially reasonable efforts to obtain the same; (iv) the Excluded Woodlands Interests, (v) voting stock of Controlled Foreign Corporations or FSHCOs in excess of 65% of the voting Equity Interests of such Controlled Foreign Corporation or FSHCO and (vi) any Equity Interests of any other Subsidiary with respect to which, Borrower and the Collateral Agent reasonably determine by mutual agreement that the cost of granting the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties, a security interest, in and Lien upon, and pledging to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties, such Equity Interests, to secure the Obligations (and any guaranty thereof) are excessive, relative to the value to be afforded to the Secured Parties thereby.  For purposes of this Agreement, “voting Equity Interests” means, with respect to any issuer, the issued and outstanding shares of each class of Equity Interests of such issuer entitled to vote in the election of directors or similar governing body of such issuer.
“Excluded License” means an exclusive license or sublicense of any Intellectual Property covering any Product that is tantamount to a sale of substantially all rights to such Intellectual Property in a particular geography or field of use because it conveys to the licensee or sublicensee exclusive rights to practice such Intellectual Property in the applicable geography or field of use for consideration that is not based upon future development or commercialization of products (other than pursuant to so-called earn-out payments) or services by the licensee or sublicensee (other than transition services), such as, for example, consideration of only upfront advances or initial license fees or similar payments in consideration of such rights, with no anticipated subsequent payments 

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or de minimis payments to Borrower or any of its Subsidiaries (other than pursuant to so-called earn-out payments or transition services).
“Excluded Subsidiaries” means, collectively, (i) any Subsidiary with respect to which, Borrower and the Collateral Agent reasonably determine by mutual agreement that the grant to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties of a security interest in and Lien upon, and the pledge to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties of, such Subsidiary’s properties and assets constituting Collateral and the Equity Interests of such Subsidiary to secure the Obligations (and any guaranty thereof) are validly prohibited by Requirements of Law; (ii) any Subsidiary with respect to which, Borrower and the Collateral Agent reasonably determine by mutual agreement that the grant to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties of a security interest in and Lien upon, and the pledge to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties of, such Subsidiary’s properties and assets constituting Collateral and the Equity Interests of such Subsidiary to secure the Obligations (and any guaranty thereof) require the consent, approval or waiver of any Governmental Authority or other third party (other than Borrower or an Affiliate of Borrower) and such consent, approval or waiver has not been obtained by Borrower or such Subsidiary following Borrower’s and such Subsidiary’s commercially reasonable efforts to obtain the same; (iii) any Subsidiary that is a non-Wholly-Owned Subsidiary, with respect to which, Borrower and the Collateral Agent reasonably determine by mutual agreement that the grant to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties of a security interest in and Lien upon, and the pledge to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties of, such non-Wholly-Owned Subsidiary’s properties and assets constituting Collateral and the Equity Interests of such non-Wholly-Owned Subsidiary to secure the Obligations (and any guaranty thereof) are validly prohibited by the Operating Documents of such non-Wholly-Owned Subsidiary, but only, in each case, to the extent, and for so long as such Operating Documents are in effect; (iii) any Subsidiary that is a non-Wholly-Owned Subsidiary, with respect to which, Borrower and the Collateral Agent reasonably determine by mutual agreement that the grant to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties of a security interest in and Lien upon, and the pledge to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties of, such non-Wholly-Owned Subsidiary’s properties and assets constituting Collateral and the Equity Interests of such non-Wholly-Owned Subsidiary to secure the Obligations (and any guaranty thereof) are validly prohibited by, or would give any third party (other than Borrower or an Affiliate of Borrower) the right to terminate its obligations under, the joint venture agreement or shareholder agreement with respect to, or any other Contract with such third party relating to, such non-Wholly-Owned Subsidiary (other than customary non-assignment provisions which are ineffective under Article 9 of the Code or other Requirements of Law), but only, in each case, to the extent, and for so long as such joint venture agreement, shareholder agreement or other Contract is in effect, and Borrower has not obtained the consent, approval or waiver of such third party following Borrower’s commercially reasonable efforts to obtain the same; (iv) any Specified Subsidiary; (v) any Subsidiary that is (A) a Controlled Foreign Corporation or FSHCO or (B) a direct or indirect Subsidiary of a Controlled Foreign Corporation or FSHCO and (vi) any other Subsidiary with respect to which, Borrower and the Collateral Agent reasonably determine by mutual agreement that the cost of granting the Collateral Agent in favor and for the benefit of Lenders and the other 

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Secured Parties a security interest in and Lien upon, and pledging to the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties, such Subsidiary’s properties and assets constituting Collateral and the Equity Interests of such Subsidiary to secure the Obligations (and any guaranty thereof) are excessive relative to the value to be afforded to the Secured Parties thereby.
“Excluded Taxes” means any of the following Taxes imposed on or with respect to a Lender or required to be withheld or deducted from a payment to a Lender, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed by the United States or as a result of such Lender being organized under the laws of, or having its principal office or its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are otherwise Other Connection Taxes, (b) U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to any Obligation pursuant to a law in effect on the date on which (i) such Lender acquires an interest in any Obligation or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.6, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Lender’s failure to comply with Section 2.6(c), and (d) any withholding Taxes imposed under FATCA.
“Excluded Woodlands Interests” means all limited liability company interests, limited partnership interests, general partnership interests or other equity interests directly or indirectly owned by Borrower of Lex-Gen Woodlands GP, LLC, a Delaware limited liability company, Lex-Gen (Delaware), LLC, a Delaware limited liability company, and Lex-Gen Woodlands, L.P., a Delaware limited partnership.
“Existing Senior Notes” means the 5.25% Convertible Senior Notes due 2021 issued by Borrower pursuant to and governed by that certain Indenture, dated as of November 26, 2014, between Borrower and Wells Fargo Bank, N.A., as trustee.
“Facility” means any real property (including all buildings, fixtures or other improvements located thereon) now, hereafter or heretofore owned, leased, operated or used by any Credit Party or any of its Subsidiaries or any of their respective predecessors or Affiliates (other than portfolio companies of the Permitted Holders that are not Subsidiaries of Borrower).
“FATCA” means Sections 1471 through 1474 of the IRC, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations promulgated thereunder or official interpretations thereof, any agreement entered into pursuant to Section 1471(b)(1) of the IRC, any intergovernmental agreement entered into in connection with the implementation of such Sections of the IRC and any fiscal or regulatory legislation, rules or practices adopted pursuant to such intergovernmental agreement.
“FCPA” means Foreign Corrupt Practices Act of 1977, as amended.
“FDA” means the United States Food and Drug Administration.

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“FDA Good Manufacturing Practices” means the standards set forth in 21 C.F.R. Parts 210, 211 and 600 (and any foreign equivalent).
“FDA Laws” means all applicable statutes, rules, regulations, standards, guidelines, policies and orders administered or issued by FDA (and any foreign equivalent).
“FDCA” is defined in Section 4.20(b).
“Foreign Subsidiary” means any Subsidiary of Borrower that is not a Domestic Subsidiary.
“FSHCO” means any Subsidiary with no material assets (held directly or through Subsidiaries) other than Equity Interests or Indebtedness of one or more Subsidiaries that are  Controlled Foreign Corporations.
“Federal Reserve Board” means the Board of Governors of the Federal Reserve System.
“Governmental Approval” means any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority.
“Governmental Authority” means any nation or government, any state or other political subdivision thereof, any agency, government department, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any self-regulatory organization.
“Governmental Payor Programs” means all governmental third party payor programs in which any Credit Party participates, including Medicare, Medicaid, TRICARE or any other federal or state health care programs.
“Guarantor” means any Guarantor Subsidiary.
“Guarantor Subsidiary” means each Subsidiary that is a present or future guarantor of the Obligations, which shall only include any direct or indirect wholly owned Domestic Subsidiary of Borrower other than (a) a Specified Subsidiary and (b) any Subsidiary described in clause (vi) of the definition of “Excluded Subsidiary”.
“Hazardous Materials” means any chemical, material or substance, exposure to which is prohibited, limited or regulated by any Governmental Authority or which may or could pose a hazard to the health and safety of the owners, occupants or any Persons in the vicinity of any Facility or to the indoor or outdoor environment.
“Hazardous Materials Activity” means any past, current, proposed or threatened activity, event or occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage, holding, presence, existence, location, Release, threatened Release, discharge, placement, generation, transportation, processing, construction, treatment, abatement, removal, remediation, 

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disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing.
“Health Care Laws” means, collectively: (a) any and all federal, state or local laws, rules, regulations, manuals, orders, ordinances, statutes, guidelines and requirements issued under or in connection with Medicare, Medicaid or any other Government Payor Program; (b) federal and state laws and regulations governing the confidentiality of patient information, including HIPAA; (c) accreditation standards and requirements of all applicable state laws or regulatory bodies; (d) any and all federal, state and local fraud and abuse laws of any Governmental Authority, including the federal Anti-Kickback Statute (42 U.S.C. § 1320a-7(b)), the civil False Claims Act (31 U.S.C. § 3729 et seq.), Sections 1320a-7 and 1320a-7a of Title 42 of the United States Code and the regulations promulgated pursuant to such statutes; (e) the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (Pub. L. No. 108-173) and the regulations promulgated thereunder; (f) the Physician Payment Sunshine Act (42 U.S.C. § 1320a-7h); (g) all reporting and disclosure requirements under the Medicaid Drug Rebate Program (e.g., Monthly and Quarterly Average Manufacturer Price, Baseline Average Manufacturer Price, and Rebate Per Unit, as applicable), Medicare Part B (Quarterly Average Sales Price), Section 602 of the Veteran’s Health Care Act (Public Health Service 340B Quarterly Ceiling Price), Section 603 of the Veteran’s Health Care Act (Quarterly and Annual Non-Federal Average Manufacturer Price and Federal Ceiling Price), Best Price, Federal Supply Schedule Contract Prices and Tricare Retail Pharmacy Refunds, and Medicare Part D; (h) all other applicable health care laws, rules, codes, statutes, regulations, manuals, orders, ordinances, policies, administrative guidance and requirements pertaining to Medicare or Medicaid; in each case, in any manner applicable to any Credit Party; (i) any and all federal, state or local laws, rules, regulations, ordinances, statutes and requirements relating to (A) the regulation of managed care, third party payors and Persons bearing the financial risk for the provision or arrangement of health care services, (B) billings to insurance companies, health maintenance organizations and other Managed Care Plans or otherwise relating to insurance fraud, and (C) any insurance, health maintenance organization or managed care Requirements of Law; and (j) any and all foreign health care laws, rules, codes, regulations, manuals, orders, ordinances, statutes, guidelines, requirements and policies which, in each case, are analogous to any of the foregoing and applicable to any Credit Party or any of its Subsidiaries in any manner.
“HIPAA” means the Health Insurance Portability and Accountability Act of 1996, any and all rules or regulations promulgated from time to time thereunder, and any comparable U.S. state laws.
“Indebtedness” means, with respect to any Person, without duplication: (a) all indebtedness for advanced or borrowed money of, or credit extended to, such Person; (b) all obligations issued, undertaken or assumed by such Person as the deferred purchase price of property, services or rights (other than (i) accrued expenses and trade payables entered into in the ordinary course of business  that are not more than one hundred and twenty (120) days past due or subject to a bona fide dispute, (ii) obligations to pay for services provided by employees and individual independent contractors in the ordinary course of business  that are not more than one hundred and twenty (120) days past due or subject to a bona fide dispute, (iii) liabilities associated with customer prepayments and deposits and (iv) prepaid or deferred revenue arising in the ordinary course of business ), including 

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any obligation or liability to pay deferred or contingent purchase price or other consideration for such property, services or rights; (c) the face amount of all letters of credit issued for the account of such Person and, without duplication, all drafts drawn thereunder and all reimbursement or payment obligations with respect to letters of credit, surety bonds, performance bonds and other similar instruments issued by such Person; (d) all obligations of such Person evidenced by notes, bonds, debentures or other debt securities or similar instruments (including debt securities convertible into Equity Interests), including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses; (e) all indebtedness of such Person created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to property acquired by such Person (even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property); (f) all capital lease obligations of such Person; (g) the principal balance outstanding under any synthetic lease, off-balance sheet loan or similar off balance sheet financing product by such Person; (h) all obligations of such Person, whether or not contingent, to purchase, redeem, retire, defease or otherwise acquire for value any of its own Equity Interests (or any Equity Interests of a direct or indirect parent entity thereof) prior to the date that is one hundred and eighty (180) days after the Term Loan Maturity Date, valued at, in the case of redeemable preferred stock, the greater of the voluntary liquidation preference and the involuntary liquidation preference of such stock plus accrued and unpaid dividends; (i) all indebtedness referred to in clauses (a) through (h) above of other Persons secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon or in property (including accounts and contracts rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such indebtedness; and (j) all Contingent Obligations.
“Indemnified Liabilities” means, collectively, any and all liabilities, obligations, losses, damages (including natural resource damages), penalties, claims, actions, judgments, suits, costs, expenses and disbursements of any kind or nature whatsoever (including the Lender Expenses in connection with any investigative, administrative or judicial proceeding or hearing commenced or threatened in writing by any Person, whether or not any such Indemnified Person shall have commenced such proceeding or hearing or be designated as a party or a potential party thereto, and any fees or expenses including Lender Expenses incurred by Indemnified Persons in enforcing the indemnity hereunder), whether direct, indirect or consequential and whether based on any federal, state or foreign laws, statutes, rules or regulations, on common law or equitable cause or on contract or otherwise, that may be imposed on, incurred by, or asserted against any such Indemnified Person, in any manner relating to or arising out of this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby (including any Lender’s agreement to make Credit Extensions or the use or intended use of the proceeds thereof, or any enforcement of any of the Loan Documents (including any sale of, collection from, or other realization upon any of the Collateral or the enforcement of any guaranty of the Obligations)).
“Indemnified Person” is defined in Section 11.2.
“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Credit Party under any Loan Document and (b) to the extent not otherwise described in clause (a) above, Other Taxes.

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“Insolvency Proceeding” means, with respect to any Person, any proceeding by or against such Person under the United States Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief.
“Intellectual Property” means all:
(a)Copyrights, Trademarks, and Patents;
(b)trade secrets and trade secret rights, including any rights to unpatented inventions, know-how, operating manuals;
(c)Software (as such term is defined in the Security Agreement);
(d)Internet Domain Names (as such term is defined in the Security Agreement);
(e)design rights;
(f)IP Ancillary Rights; and
(g)any similar or equivalent rights to any of the foregoing anywhere in the world.
“Interest Rate Determination Date” means (a) each Payment Date, (b) the Term Loan Maturity Date, and (c) any other date on which the Term Loans shall be due (whether by reason of notice of prepayment or acceleration or otherwise).
“Inventory” means all “inventory” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including such inventory as is temporarily out of a Credit Party’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above.
“Investment” means (i) any beneficial ownership interest in any Person (including Equity Interests), (ii) any Acquisition or (iii) the making of any advance, loan, extension of credit or capital contribution in or to, any Person.
“IP Agreements” means those certain Intellectual Property Security Agreements entered into by and between Borrower and Lender, each dated as of the Effective Date, as such may be amended, restated or otherwise modified from time to time.
“IP Ancillary Rights” means, with respect to any Copyright, Trademark, Patent, Software, trade secrets or trade secret rights, including any rights to unpatented inventions, know-how, operating manuals, all income, royalties, proceeds and liabilities at any time due or payable or asserted under or with respect to any of the foregoing or otherwise with respect thereto, including all rights to sue or recover at law or in equity for any past, present or future infringement, misappropriation, dilution, violation or other impairment thereof, and, in each case, all rights to 

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obtain any other intellectual property right ancillary to any Copyright, Trademark, Patent, Software, trade secrets or trade secret rights.
“IRC” means the Internal Revenue Code of 1986, as amended.
“iStar Mortgage” means, collectively, (a) that certain Loan and Security Agreement dated as of April 21, 2004 and subsequently amended, between Lex-Gen Woodlands, L.P., as borrower, and iStar Lex Lender LLC (as assignee of SFI Belmont LLC, which in turn is assignee of iStar Tara LLC, which in turn is assignee of iStar Financial Inc., the original lender), as lender, (b) that certain Promissory Note dated as of April 21, 2004 in the original principal amount of $34,000,000, (c) that certain Deed of Trust with Security Agreement, Assignment of Leases and Rents and Fixture Filing, dated as of April 21, 2004, recorded in the Official Records of Montgomery County, Texas as Document No. 2004-042420, and (d) that certain Guaranty dated as of April 21, 2004 in favor of such lender made by Borrower.
“Knowledge” or to the “knowledge” of any Credit Party and similar qualifications or phrases means the actual knowledge, with reasonable investigation (which the parties hereto acknowledge is limited to a review of this Agreement and the provisions herein in which this term is used in connection with the preparation, negotiation and execution and delivery of this Agreement and the other Loan Documents), of the Responsible Officers of Borrower.
“Lender” means each Person signatory hereto as a “Lender” and its successors and assigns pursuant to a Lender Transfer.
“Lender Expenses” means all reasonable and documented out-of-pocket fees and expenses of the Collateral Agent and each Lender for preparing, amending, supplementing, modifying, negotiating, executing, delivering or administering any Loan Document, or for defending, enforcing or preserving any of its rights or entitlements thereunder (including those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred with respect to the Credit Parties in connection with the Loan Documents, including the reasonable and documented fees and expenses of a single legal counsel (plus, if required, one local legal counsel in each relevant, material jurisdiction) and any filing or recording fees and expenses.
“Lender Transfer” means any sale, transfer, assignment, pledge or grant of a participation by Lender permitted under Section 11.1.
“Lien” means a claim, mortgage, deed of trust, levy, charge, pledge, security interest or other encumbrance of any kind or assignment for security purposes, whether voluntarily incurred or arising by operation of law or otherwise against any property or assets.
“Loan Documents” means, collectively, this Agreement, the Disclosure Letter, the Term Loan Notes, the Security Agreement, the IP Agreements, each Compliance Certificate, the Perfection Certificate, any Control Agreement, any other Collateral Document, and any other present or future agreement between or among a Credit Party and the Collateral Agent or Lenders in connection with this Agreement, as such may be amended, restated or otherwise modified from time to time (including, for the avoidance of doubt, any annexes, exhibits or schedules thereto).

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“Makewhole Amount” means, as of any date of determination occurring prior to the 36th-month anniversary of the Tranche A Closing Date, an amount equal to [**].
“Managed Care Plans” means all health maintenance organizations, preferred provider organizations, individual practice associations, competitive medical plans and similar arrangements.
“Manufacturing Agreements” is defined in Section 4.22(b).
“Margin Stock” is defined in Section 4.13.
“Material Adverse Change” means any material adverse change in or effect on: (i) the business, condition (financial or otherwise), properties or assets (including all or any portion of Collateral), liabilities (actual or contingent), operations, management, or performance of the Credit Parties, taken as a whole, since December 31, 2016; (ii) without limiting the generality of clause (i) above, any material adverse change in or effect on any rights in and related to XERMELO® (telotristat ethyl) and sotagliflozin or the commercialization, marketing, importing, exporting, distribution, research, clinical development, production or sale of  XERMELO® (telotristat ethyl) and sotagliflozin in the Territory, taken as a whole; (iii) the ability of Borrower, individually, or the Credit Parties, taken as a whole, to fulfill the payment or performance obligations under this Agreement or any other Loan Document to which it is a party; or (iv) the binding nature or validity of, or the ability of the Collateral Agent or any Lender to enforce, this Agreement or any other Loan Document or any of its rights or remedies hereunder or thereunder.
“Material Contract” means any contract or other arrangement to which a Credit Party or any of its Subsidiaries is a party (other than the Loan Documents) or by which any of its assets is bound (as such may be amended, restated or otherwise modified from time to time), for which breach, nonperformance, cancellation, termination or failure to renew could reasonably be expected to result in a Material Adverse Change, which, for the avoidance of doubt, shall include any exclusive license relating to a Product.
“Medicaid” means, collectively, the health care assistance program established by Title XIX of the SSA (42 U.S.C. 1396 et seq.) and any statutes succeeding thereto, and all laws, rules, regulations, manuals, orders, or requirements pertaining to such program, including (a) all federal statutes affecting such program; (b) all state statutes and plans for medical assistance enacted in connection with such program and federal rules and regulations promulgated in connection with such program; and (c) all applicable provisions of all rules, regulations, manuals, orders and administrative, reimbursement, and requirements of all government authorities promulgated in connection with such program (whether or not having the force of law), in each case as the same may be amended, supplemented or otherwise modified from time to time.
“Medicare” means, collectively, the health insurance program for the aged and disabled established by Title XVIII of the SSA (42 U.S.C. 1395 et seq.) and any statutes succeeding thereto, and all laws, rules, regulations, manuals, or orders pertaining to such program including (a) all federal statutes (whether set forth in Title XVIII of the SSA or elsewhere) affecting such program; and (b) all applicable provisions of all rules, regulations, manuals, orders and administrative, reimbursement and requirements of all governmental authorities promulgated in connection with 

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such program (whether or not having the force of law), in each case as the same may be amended, supplemented or otherwise modified from time to time.
“Money Laundering Laws” is defined in Section 4.18(b).
“Moody’s” means Moody’s Investor Services, Inc.
“Mortgage” means any deed of trust, leasehold deed of trust, mortgage, leasehold mortgage, deed to secure debt, leasehold deed to secure debt or other document creating a Lien on real estate or any interest in real estate.
“Multiemployer Plan” means a multiemployer plan within the meaning of Section 4001(a)(3) or Section 3(37) of ERISA (a) to which Borrower or its Subsidiaries or their respective ERISA Affiliates is then making or accruing an obligation to make contributions; (b) to which Borrower or its Subsidiaries or their respective ERISA Affiliates has within the preceding five (5) plan years made contributions; or (c) with respect to which Borrower or its Subsidiaries could incur material liability.
“Net Sales” means, with respect to any period, the “net sales” (or substantially similar term) of Borrower and the other Credit Parties for such period determined in accordance with the Applicable Accounting Standards as set forth in the Borrower’s financial statements or as otherwise evidenced in a manner reasonably satisfactory to the Collateral Agent.
“New Jersey Lease” means, collectively, (a) that certain lease, dated March 2015 and effective from June 1, 2015 through December 31, 2022, pursuant to which Lexicon Pharmaceuticals (New Jersey), Inc., a Subsidiary of Borrower, leases office space in Basking Ridge, New Jersey and (b) that certain standby letter of credit for this lease.
“Non-Ordinary Course Transfer Notice” is defined in Section 2.2(c)(iii).
“Note” means the Tranche A Note and the Tranche B Note, as applicable.
“Obligations” means, collectively, the Credit Parties’ obligations to pay when due any and all debts, principal, interest, Lender Expenses, the Additional Consideration, the Makewhole Amount, the Prepayment Premium, and any other fees, expenses, indemnities and amounts any Credit Party owes the Collateral Agent or any Lender now or later, under this Agreement or any other Loan Document, including interest accruing after Insolvency Proceedings begin (whether or not allowed) and debts, liabilities, or obligations of Borrower assigned to any Lender, and to perform Borrower’s duties under the Loan Documents.
“OFAC” is defined in Section 4.18(c).
“OFAC Lists” means, collectively, the Specially Designated Nationals and Blocked Persons List maintained by OFAC pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) or any other list of terrorists or other restricted Persons maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other applicable Executive Orders.

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“Operating Documents” means, collectively with respect to any Person such Person’s formation documents as certified with the Secretary of State or other applicable Governmental Authority of such Person’s jurisdiction of formation on a date that is no earlier than thirty (30) days prior to the date on which such documents are due to be delivered under this Agreement and, (a) if such Person is a corporation, its bylaws (or similar organizational regulations) in current form, (b) if such Person is a limited liability company, its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar agreement), in each case, with all current amendments, restatements, supplements or modifications thereto.
“ordinary course of business” means, in respect of any transaction involving any Person, the ordinary course of such Person’s business, undertaken by such Person in good faith and not for purposes of evading any covenant, prepayment obligation or restriction in any Loan Document.
“Other Connection Taxes” means, with respect to a Lender, Taxes imposed as a result of a present or former connection (including present or former connection of its agents) between such Lender and the jurisdiction imposing such Tax (other than connections arising solely from such Lender having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document).
“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made hereunder, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment.
“Patent Licenses” means (a) any agreement, whether written or oral, providing for the grant by or to a Person of any right to manufacture, use or sell any invention covered by a Patent, together with the goodwill associated therewith, all registrations and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country, multinational body or any political subdivision thereof (and all related IP Ancillary Rights) and (b) all renewals thereof.
“Patents” means all patents, patent applications including any improvements, continuations, continuations-in-part, divisions, provisionals or any substitute applications, any patent issued with respect to any of the foregoing patent applications, any reissue, reexamination, renewal or patent term extension or adjustment (including any supplementary protection certificate) of any such patent, and any confirmation patent or registration patent or patent of addition based on any such patent, and all foreign counterparts of any of the foregoing.
“Patriot Act” is defined in Section 3.1(a)(vii).
“Payment/Advance Form” means that certain form attached hereto as Exhibit A.
“Payment Date” means the last day of each calendar quarter.

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“Payment in Full” means the payment of (a) all outstanding Term Loans and all other outstanding Obligations (other than contingent liabilities as to which no claim has been asserted) and (b) the termination of the commitment of all Lenders to provide the Tranche B Loan Amount, if any.
“Perfection Certificate” is defined in Section 4.6.
“Permitted Acquisition” means any Acquisition, so long as:
(i)no Default or Event of Default shall have occurred and be continuing or would result from the consummation of the proposed Acquisition;
(ii)the assets or properties being acquired or licensed, or the Person whose Equity Interests are being acquired, are useful in or engaged in, as applicable, the same or a related line of business as the then-current Company Lines of Business of Borrower and its Subsidiaries;
(iii)in the case of an Asset Acquisition, the subject assets or properties are being acquired or licensed by Borrower or a Subsidiary of Borrower, and, in the case of any such Acquisition by a Credit Party of such assets or properties constituting Collateral, the applicable Credit Party shall have executed and delivered or authorized, as applicable, any and all security agreements, financing statements, fixture filings, and other documentation reasonably requested by the Collateral Agent in order to include such newly-acquired or newly-licensed assets within the Collateral in accordance with Section 5.15;
(iv)in the case of a Stock Acquisition, (A) the subject Equity Interests are being acquired in such Acquisition directly by a Credit Party, and (B) the relevant Credit Party shall have complied with its obligations under Section 5.13;
(v)any Indebtedness or Liens assumed in connection with such Acquisition are otherwise permitted under Section 6.4 or 6.5, respectively;
(vi)such Acquisition shall be consensual and shall have been approved by the Board of Directors of the Person whose Equity Interests or assets or properties are proposed to be acquired and shall not have been preceded by an unsolicited tender offer for such Equity Interests by, or proxy contest initiated by, Borrower or any other Credit Party;
(vii)Borrower shall have delivered an updated Disclosure Letter promptly, and in no event later than five (5) Business Days (or such later period as the Collateral Agent or Required Lenders should agree), after consummation of such Acquisition, solely as relates to such Acquisition of Equity Interests or assets or properties of any Person; provided that, in no event, may the Disclosure Letter be updated in a manner that would constitute a Default under Section 4 or an Event of Default under Section 7.7 but for such update; and
(viii)at least five (5) Business Days (or such later period as the Collateral Agent or Required Lenders should agree) prior to the proposed date of consummation of 

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such Acquisition, Borrower shall have delivered to the Collateral Agent an officer’s certificate signed by a Responsible Officer of Borrower certifying that (A) such Acquisition complies with this definition of “Permitted Acquisition” (which shall have attached thereto reasonably detailed backup data and calculations showing such compliance), and (B) such Acquisition could not reasonably be expected to result in a Material Adverse Change.
“Permitted Holders” means Invus, L.P., Invus C.V., Invus Public Equities, L.P., Artal International S.C.A. or any Controlled Investment Affiliate thereof.
“Permitted Indebtedness” means:
(a)Indebtedness of Borrower to Lenders under this Agreement and the other Loan Documents;
(b)Indebtedness existing on the Effective Date and shown on Schedule 12.1 of the Disclosure Letter (including, for the avoidance of doubt, such Indebtedness of Borrower under the Existing Senior Notes, such Indebtedness of Borrower under the iStar Mortgage and such Indebtedness of Lexicon Pharmaceuticals (New Jersey), Inc. under the New Jersey Lease);
(c)Indebtedness consisting of Contingent Obligations set forth in clause (a) of the definition of “Contingent Obligation” (i) of a Credit Party in respect of Permitted Indebtedness of another Credit Party, (ii) of a Subsidiary of Borrower which is not a Credit Party in respect of Permitted Indebtedness of another Subsidiary of Borrower which is not a Credit Party, (iii) of a Subsidiary of Borrower which is not a Credit Party in respect of Permitted Indebtedness of a Credit Party or (iv) of a Credit Party in respect of Permitted Indebtedness of a Subsidiary of Borrower which is not a Credit Party; provided, that the aggregate amount of Indebtedness consisting of such Contingent Obligations in non-Credit Parties pursuant to clause (iv) shall not exceed in an aggregate amount $[**] at any time;
(d)Investments set forth in clause (f) of the definition of Permitted Investments, to the extent constituting Indebtedness; provided any such Indebtedness is Subordinated Debt;
(e)Indebtedness consisting of Contingent Obligations (i) set forth in clause (b) of the definition of “Contingent Obligation”, and (ii) set forth in clause (c) of the definition of “Contingent Obligation” in connection with any Permitted Acquisition;
(f)Indebtedness of any Person that (i) becomes a Subsidiary of Borrower (or of any Person not previously a Subsidiary of Borrower that is merged or consolidated with or into a Subsidiary of Borrower in a transaction permitted hereunder) after the Effective Date, or (ii) is assumed after the Effective Date by any Subsidiary of Borrower in connection with an acquisition of assets (including assets constituting a business unit, a line or business or a division) or properties or businesses from such Person by such Subsidiary, in each case of either clause (i) or (ii), in a Permitted Acquisition; provided that, in each case, (A) such Indebtedness exists at the time such Person becomes a Subsidiary of Borrower (or is merged or consolidated with or into a Subsidiary of Borrower) or such assets or properties are acquired and is not created in contemplation of or in connection with such Person becoming a Subsidiary of Borrower (or merging or consolidating with 

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or into a Subsidiary of Borrower) or such acquisition of assets or properties or such Indebtedness arises as a result of an earn-out or similar arrangement, (B) no Subsidiary of Borrower (other than (i) a Subsidiary without significant assets formed in order to effect such acquisition, including by way of a merger and (ii) any Person that becomes a Subsidiary of Borrower substantially concurrently with the assumption of such Indebtedness and guarantees such Indebtedness at that time) or Borrower shall guarantee or otherwise become liable for the payment of such Indebtedness, and (C) such Indebtedness would not otherwise result in a Default or Event of Default;
(g)secured and unsecured (i) Indebtedness in respect of any overdraft and related liabilities arising from treasury, depository, credit or debit card, purchasing card or cash management services or any automated clearing house transfers of funds, or (ii) other Indebtedness in respect of netting services, automatic clearinghouse arrangements, overdraft protections and similar arrangements, in each case of either clause (i) or (ii), in the ordinary course of business;
(h)intercompany Indebtedness that is either unsecured or constitutes Subordinated Debt, in any event, to the extent constituting an Investment permitted under clause (o) of the definition of “Permitted Investments”;
(i)Indebtedness owed to (including obligations in respect of letters of credit or bank guarantees or similar instruments for the benefit of) any Person providing workers’ compensation, health, disability or other employee benefits or property, casualty or liability insurance to Borrower or any of its Subsidiaries, pursuant to reimbursement or indemnification obligations to such Person, in each case, in the ordinary course of business;
(j)Indebtedness in respect of performance bonds, bid bonds, appeal bonds, surety bonds and performance and completion guarantees and similar obligations provided by Borrower or any of its Subsidiaries or similar instruments related thereto, in each case arising in the ordinary course of business;
(k)Indebtedness representing deferred compensation to employees of Borrower and its Subsidiaries incurred in the ordinary course of business;
(l)Indebtedness consisting of the financing of insurance premiums in the ordinary course of business;
(m)Indebtedness (i) financing the acquisition, construction, repair, replacement or improvement of fixed or capital assets (excluding any Permitted Acquisition or other purchase of properties or assets or businesses of any Person or of assets or properties constituting a business unit, a line of business or division of such Person, or Equity Interests in a Person that, upon the consummation thereof, will be a Subsidiary of Borrower (including as a result of a merger or consolidation), provided, that such Indebtedness is incurred concurrently with or within two hundred seventy (270) days after the applicable acquisition, construction, repair, replacement or improvement) or (ii) consisting of capital lease obligations;
(n)Indebtedness arising in connection with endorsement of instruments for deposit in the ordinary course of business;

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(o)purchase price adjustments, indemnity payments and earn-out obligations in connection with any Permitted Acquisition;
(p)other Indebtedness in a principal amount not in excess of $10,000,000 at any time in the aggregate;
(q)subject to the proviso immediately below, extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness in clauses (a) through (p) above, provided, that the principal amount thereof is not increased other than by any reasonable amount of premium (if any), interest (including post-petition interest), fees, expenses, charges or additional or contingent interest reasonably incurred in connection with the same and the terms thereof are not modified to shorten the maturity thereof.
“Permitted Investments” means:
(a)Investments (including Investments in Subsidiaries) existing on the Effective Date and shown on Schedule 12.2 of the Disclosure Letter, and any modification, replacement, extension, renewal or reinvestment thereof; provided, that the amount of any Investment permitted pursuant to this clause (a) is not increased from the amount of such Investment on the Effective Date except pursuant to the terms of such Investment as of the Effective Date or as otherwise permitted under Section 6.8(b);
(b)Investments by Borrower or any of its Subsidiaries consisting of cash and Cash Equivalents;
(c)Investments in the ordinary course of business consisting of endorsements of negotiable instruments for deposit or collection and customary trade arrangements with customers consistent with past practice;
(d)Investments consisting of deposit accounts or securities accounts;
(e)Investments by Borrower or any of its Subsidiaries pursuant to a Permitted License;
(f)Investments in connection with Transfers permitted by Section 6.1;
(g)Investments consisting of loans or advances to officers, directors and employees of Borrower or any of its Subsidiaries (i) for reasonable and customary business-related travel, entertainment, relocation and analogous ordinary business purposes, (ii) in connection with such Person’s purchase of Equity Interests of Borrower pursuant to employee stock purchase plans or agreements approved by Borrower’s Board of Directors and (iii) for purposes not described in the foregoing clauses (i) and (ii), in an aggregate principal amount outstanding not to exceed $5,000,000 at any time;
(h)Investments (including debt obligations and Equity Interests) received in connection with the bankruptcy or reorganization of suppliers and customers or in settlement of delinquent obligations of, or other disputes with, customers and suppliers arising in the ordinary course of 

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business  or upon the foreclosure with respect to any secured Investment or other transfer of title with respect to any secured Investment;
(i)Investments consisting of extensions of credit in the nature of accounts receivable or notes receivable of, or prepaid royalties or other credits to, customers and suppliers who are not Affiliates of Borrower or any of its Subsidiaries, in the ordinary course of business ; provided that this clause (i) shall not apply to Investments of any Credit Party in any of its Subsidiaries;
(j)Investments in joint ventures or strategic alliances consisting of the non-exclusive licensing of technology, the development of technology or the providing of technical support;
(k)Investments required to consummate a Permitted Acquisition (including the formation of any Subsidiary for the purpose of effectuating such Permitted Acquisition, the capitalization of such Subsidiary whether by capital contribution or intercompany loans, in each case, to the extent permitted by the terms of this Agreement, Investments in Subsidiaries necessary to consummate such Permitted Acquisition, and the receipt of any non-cash consideration in a Permitted Acquisition);
(l)Investments constituting the formation of any Subsidiary for the purpose of consummating a merger or acquisition transaction permitted by Section 6.3(a)(ii) through (iv) hereof, which such transaction is otherwise a Permitted Investment;
(m)Investments of any Person that (i) becomes a Subsidiary of Borrower (or of any Person not previously a Subsidiary of Borrower that is merged or consolidated with or into a Subsidiary of Borrower in a transaction permitted hereunder) after the Effective Date, or (ii) are assumed after the Effective Date by any Subsidiary of Borrower in connection with an acquisition of assets (including assets constituting a business unit, a line or business or a division) or properties or businesses from such Person by such Subsidiary, in each case of either clause (i) or (ii), in a Permitted Acquisition; provided that, in each case, any such Investment (A) exists at the time such Person becomes a Subsidiary of Borrower (or is merged or consolidated with or into a Subsidiary of Borrower) or such assets or properties are acquired, (B) was not made in contemplation of or in connection with such Person becoming a Subsidiary of Borrower (or merging or consolidating with or into a Subsidiary of Borrower) or such acquisition of assets or properties, (C) such Investment would not otherwise result in a Default or Event of Default, and (D) neither Borrower nor any of its Subsidiaries will incur or assume any Indebtedness in connection with such Permitted Acquisition other than Indebtedness permitted hereunder;
(n)Investments arising as a result of the licensing of Intellectual Property in the ordinary course of business ;
(o)Investments by (i) any Credit Party to any other Credit Party, (ii) any Subsidiary of Borrower which is not a Credit Party to another Subsidiary of Borrower which is not a Credit Party, (iii) any Subsidiary of Borrower which is not a Credit Party to any Credit Party, (iv) payments made under the Texas Lease and, (v) to the extent not described in the foregoing clause (iv), any Credit Party to a Subsidiary of Borrower which is not a Credit Party; provided, that the aggregate amount of such Investments in non-Credit Parties pursuant to this clause (v) (other than in the ordinary 

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course of business ) shall not exceed in an aggregate amount, as valued at cost at the time each such Investment is made and including all related commitments for future Investments, $5,000,000 at any time;
(p)Investments arising out of the receipt of promissory notes or other non-cash consideration in connection with any Transfer permitted by Section 6.1;
(q)without limiting the generality of clause (k) above, Investments consisting of earnest money deposits required in connection with a Permitted Acquisition or other acquisition of assets or properties not otherwise prohibited hereunder;
(r)purchases of Inventory, office supplies and materials and similar assets, in each case in the ordinary course of business;
(s)advances of payroll payments to employees in the ordinary course of business;
(t)any other Investments consisting of Permitted Liens, Permitted Indebtedness or any Transfer permitted by Section 6.1;
(u)any other Investments not described in the foregoing clauses (a) through (t) not to exceed $10,000,00 at any time in the aggregate.
provided, however, that, none of the foregoing Investments shall be a “Permitted Investment” if any Indebtedness or Liens incurred or assumed in connection with such Investment are not otherwise permitted under Section 6.4 or 6.5, respectively.
“Permitted Licenses” means: (a) an exclusive as to geography other than the United States license of (or covenant not to sue with respect to) Intellectual Property or grant of development, manufacture, distribution, co-promotion or similar commercial rights to third parties in the ordinary course of business; (b) subject to the prior satisfaction of the requirements set forth in the following sentence, an exclusive as to geography in the United States license out of Intellectual Property or grant of development, manufacture, distribution, co-promotion or similar commercial rights to third parties in the ordinary course of business; (c) non-exclusive licensing of (or granting of a covenant not to sue with respect to) technology or Intellectual Property, granting of development, manufacture, distribution, co-promotion or similar commercial rights, the development of technology or the providing of technical support, in each case to third parties; (d) any other licenses constituting Transfers permitted under Section 6.1; and (e) intercompany licenses or other similar arrangements among the Credit Parties, provided, however, that the licenses or similar arrangements described in this clause (e) shall not permit any exclusive as to geography in the United States licenses of Intellectual Property (unless otherwise permitted pursuant to clause (b)) and shall only permit exclusive as to geography other than the United States licenses of Intellectual Property if a Credit Party retains all rights to such Intellectual Property other than those rights that are the subject of such license.  Notwithstanding the foregoing, any license or other arrangement described in clause (b) above (including, for the avoidance of doubt, any license out of Intellectual Property rights or commercial rights to telotristat ethyl or sotagliflozin) shall not constitute a Permitted License hereunder unless and until (i) Borrower shall have given written notice of such proposed license or other arrangement to the Collateral Agent in accordance with Section 9 hereof, which 

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notice shall (A) identify the parties to such proposed license or other arrangement and (B) include a description of the material terms and conditions of such proposed license or other arrangement, (ii) the Collateral Agent or the Required Lenders shall have given its written consent to such proposed license or other arrangement; provided that, in the event neither the Collateral Agent nor the Required Lenders delivers in writing its rejection of such proposed license or other arrangement within ten (10) Business Days after the effective date of delivery of the notice from Borrower contemplated in clause (i) above, then the Collateral Agent and each Lender shall be deemed to have waived its right to reject such proposed license or other arrangement, and Borrower or its Subsidiary that is a party to such proposed license or other arrangement shall be permitted to enter into such proposed license or other arrangement, unless any of the terms or conditions thereof have changed in any material respect from the terms set forth in the materials provided to the Collateral Agent pursuant to clause (i) above, in which event the right of the Collateral Agent and the Required Lenders to consent to such proposed license or other arrangement shall be deemed to be revived and such proposed license or other arrangement shall not constitute a Permitted License unless and until Borrower delivers a new written notice to the Collateral Agent in accordance with clause (i) above and the requirements of clause (ii) above have been satisfied as to such proposed license or other arrangement (as so amended or modified).  Notwithstanding the foregoing, “Permitted Licenses” shall not include any Excluded Licenses entered into after the Effective Date unless consented to in writing by the Collateral Agent or the Required Lenders.  For the avoidance of doubt, the Sotagliflozin Agreement and XERMELO Agreement are “Permitted Licenses”.
“Permitted Liens” means:
(a)Liens pursuant to any Loan Document;
(b)Liens existing on the Effective Date and set forth on Schedule 12.3 of the Disclosure Letter (including, for the avoidance of doubt, any Liens securing the Indebtedness of Borrower under the iStar Mortgage and any Liens securing the Indebtedness of Lexicon Pharmaceuticals (New Jersey), Inc. under the New Jersey Lease);
(c)Liens for Taxes, assessments or governmental charges (i) which are not overdue for a period of more than thirty (30) days or (ii) which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person to the extent required in accordance with Applicable Accounting Standards;
(d)Liens securing Permitted Indebtedness; provided, that such Liens shall not be senior in rank, order of priority or enforcement to the Liens granted under the Security Agreement;
(e)Permitted Licenses and Liens incurred pursuant to Permitted Licenses;
(f)(i) subject to Section 6.2(c), statutory or common law Liens of landlords, and (ii) statutory or common law Liens of carriers, warehousemen, mechanics, materialmen, repairmen, construction contractors or other like Liens arising in the ordinary course of business, in each case of either clause (i) or (ii) above, (A) which secure amounts not overdue for a period of more than thirty (30) days or if more than thirty (30) days overdue, are unfiled (or if filed have been discharged 

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or stayed) and no other action has been taken to enforce such Lien or (B) which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person to the extent required in accordance with Applicable Accounting Standards;
(g)pledges, deposits or Liens arising as a matter of law in the ordinary course of business  (other than Liens imposed by ERISA) in connection with workers’ compensation, payroll taxes, unemployment insurance and other social security legislation and (ii) pledges and deposits in the ordinary course of business  securing liability for reimbursement or indemnification obligations of (including obligations in respect of letters of credit or bank guarantees for the benefit of) insurance carriers providing property, casualty or liability insurance to Borrower or any of its Subsidiaries;
(h)Liens arising from attachments or judgments, orders, or decrees in circumstances not constituting an Event of Default under Section 7.6;
(i)Liens (including the right of set-off) in favor of banks or other financial institutions arising in connection with deposit or securities accounts held at such institutions; provided that such Liens are not given in connection with the incurrence of Indebtedness and relate solely to obligations for administrative and other banking fees and expenses incurred in the ordinary course of business in connection with the establishment or maintenance of such accounts; provided, further, that such Liens are within the general parameters customary in the banking industry;
(j)Liens that are contractual rights of set-off (i) relating to pooled deposit or sweep accounts of Borrower or any of its Subsidiaries to permit satisfaction of overdraft or similar obligations incurred in the ordinary course of business  or (ii) relating to purchase orders and other agreements entered into with customers of Borrower or any of its Subsidiaries in the ordinary course of business ;
(k)leases, nonexclusive licenses, subleases or nonexclusive sublicenses and Liens on the property covered thereby, in each case, granted to third parties in the ordinary course of business which do not (i) interfere in any material respect with the business of Borrower or any of its Subsidiaries, taken as a whole, (ii) do not prohibit granting the Collateral Agent in favor and for the benefit of Lenders and the other Secured Parties a security interest therein (if and to the extent applicable), or (iii) secure any Indebtedness;
(l)Liens to secure the performance of bids, trade contracts, governmental contracts and leases (other than Indebtedness for borrowed money), statutory obligations, surety, stay, customs and appeal bonds, performance bonds and other obligations of a like nature (including those to secure health, safety and environmental obligations) incurred in the ordinary course of business;
(m)Liens solely on any cash earnest money deposits made by Borrower or any of its Subsidiaries in connection with any Permitted Acquisition or other acquisition of assets or property not otherwise prohibited under this Agreement;

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(n)any interest or title of a lessor or sublessor under any lease entered into by Borrower or any of its Subsidiaries in the ordinary course of business  and otherwise permitted under this Agreement;
(o)easements, rights-of-way, restrictions, covenants, conditions, encroachments, protrusions and other similar encumbrances and minor title defects affecting real property which, in the aggregate, do not in any case materially interfere with the ordinary conduct of the business of Borrower or any of its Subsidiaries;
(p)Liens, if any, arising out of conditional sale, title retention, consignment or similar arrangements for sale of goods entered into by Borrower or any of its Subsidiaries in the ordinary course of business;
(q)Liens existing on assets or properties at the time of its acquisition or existing on the assets or properties of any Person at the time such Person becomes a Subsidiary of Borrower, in each case after the date hereof; provided that (i) such Lien was not created in contemplation of such acquisition or such Person becoming a Subsidiary of Borrower, (ii) such Lien does not extend to or cover any other assets or properties (other than the proceeds or products thereof and other than after-acquired assets or properties subjected to a Lien securing Indebtedness and other obligations incurred prior to such time and which Indebtedness and other obligations are permitted hereunder that require, pursuant to their terms at such time, a pledge of after-acquired assets or properties, it being understood that such requirement shall not be permitted to apply to any assets or properties to which such requirement would not have applied but for such acquisition), and (iii) the Indebtedness secured thereby is permitted under clause (m) of the definition of “Permitted Indebtedness”;
(r)Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods in the ordinary course of business ;
(s)Liens, if any, arising from precautionary Code financing statement filings;
(t)Liens on insurance policies and the proceeds thereof securing the financing of the premiums with respect thereto;
(u)any zoning or similar law or right reserved to or vested in any Governmental Authority to control or regulate the use of any real property that does not materially interfere with the ordinary conduct of the business of Borrower or any of its Subsidiaries;
(v)Liens on specific items of Inventory and the proceeds thereof securing such Person’s obligations in respect of documentary letters of credit issued for the account of such Person to facilitate the purchase, shipment or storage of such Inventory;
(w)Liens securing Indebtedness permitted under clause (m) of the definition of “Permitted Indebtedness”; provided that (i) such Liens attach concurrently with or within two hundred and seventy (270) days after the acquisition, construction, repair, replacement or 

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improvement (as applicable) of the assets or properties subject to such Liens, (ii) such Liens do not at any time encumber any assets or properties other than the assets or properties financed by such Indebtedness, replacements thereof and additions and accessions to such assets or properties and the proceeds and the products thereof and customary security deposits, and (iii) with respect to capitalized leases, such Liens do not at any time extend to or cover any assets or properties (except for additions and accessions to such assets or properties, replacements and products thereof and customary security deposits) other than the assets or properties subject to such capitalized leases;
(x)Liens securing Indebtedness permitted under clauses (f), (g), (i), (l), (o) and (p) of the definition of “Permitted Indebtedness” (as it relates to Indebtedness permitted under clauses (f), (g), (i), (l), and (o) of such definition);
(y)Liens securing obligations permitted under clause (e)(ii) of the definition of “Permitted Indebtedness” (as it relates to Indebtedness permitted under clause (e)(ii) of such definition) not to exceed $5,000,000 in the aggregate at any one time outstanding;
(z)Liens under the Texas Lease and the New Jersey Lease;
(aa)Liens not otherwise described in the foregoing clauses (a) through (z) with respect to obligations not to exceed $5,000,000 at any time outstanding; and
(bb)    the modification, replacement, extension or renewal of the Liens described in clauses (a) through (aa), but any such modification, replacement, extension or renewal must be limited to the assets or properties encumbered by the existing Lien (and any additions, accessions, parts, improvements and attachments thereto and the proceeds thereof) and the principal amount of any Indebtedness secured by such modification, replacement, extension or renewal may not increase other than by any reasonable premium or other reasonable amount paid and fees and expenses reasonably incurred in connection with the same; provided, however, that to the extent any of the foregoing Liens secure Indebtedness of a Credit Party, such Liens shall constitute Permitted Liens if and only to the extent that such Indebtedness constitutes Permitted Indebtedness.
“Person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency.
“Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the IRC or Section 302 of ERISA which is maintained or contributed to by Borrower or its Subsidiaries or their respective ERISA Affiliates or with respect to which Borrower or its Subsidiaries are subject to liability (including under Section 4069 of ERISA).
“Prepayment Premium” means, with respect to any prepayment of the Term Loans by Borrower pursuant to Section 2.2(c) or as a result of the acceleration of the Term Loans pursuant to Section 8.1(a), an amount equal to the product of the amount of such prepayment, multiplied by:

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(a)    if such prepayment occurs prior to the 48th-month anniversary of the Tranche A Closing Date, [**]; and
(b)    if such prepayment occurs on or after the 48th-month anniversary of the Tranche A Closing Date but prior to the 60th-month anniversary of the Tranche A Closing Date, [**].
“Products” means, collectively, any and all pharmaceutical products (a) sold commercially or exclusively out-licensed by Borrower or any other Credit Party at any time after the Effective Date (including any successor products thereto) and (b) for which an application to initiate human clinical trials has been submitted to FDA (or foreign equivalent) and not withdrawn and which is in active clinical development or commercialization by or on behalf of Borrower, any other Credit Party or any of their respective licensees or sublicensees, including, for the avoidance of doubt, XERMELO® (telotristat ethyl) and sotagliflozin.
“Register” is defined in Section 2.8(a).
“Registered Organization” means any “registered organization” as defined in the Code with such additions to such term as may hereafter be made.
“Regulatory Agency” means a Governmental Authority with responsibility for the approval of the marketing and sale of pharmaceuticals or other regulation of pharmaceuticals.
“Regulatory Approval” means all approvals (including where applicable, pricing and reimbursement approval and schedule classifications), product or establishment licenses, registrations or authorizations of any Regulatory Agency necessary for the manufacture, use, storage, import, export, transport, offer for sale, or sale of any Product.
“Reinvestment Yield” means, with respect to the Called Principal, the yield to maturity implied by (a) the yields reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as “Page PX1” (or such other display as may replace Page PX1 on Bloomberg Financial Markets (“Bloomberg”) or, if Page PX1 (or its successor screen on Bloomberg) is unavailable, the Telerate Access Service screen which corresponds most closely to Page PX1 for the most recently issued actively traded U.S. Treasury securities having a maturity equal to the Remaining Life of such Called Principal as of such Settlement Date, or (b) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (519) (or any comparable successor publication) for actively traded U.S. Treasury securities having a constant maturity equal to the Remaining Life of such Called Principal as of such Settlement Date.  Such implied yield will be determined by the Issuer, if necessary, by (i) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (ii) interpolating linearly between (1) the actively traded U.S. Treasury security with the maturity closest to and greater than such Remaining Life and (2) the actively traded U.S. Treasury security with the maturity closest to and less than such Remaining Life.  The Reinvestment Yield shall be rounded to two decimal places.

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“Related Parties” means, with respect to any Person, any of such Person’s Affiliates and any partners, members, controlling Persons, directors, officers, employees, agents or sub-agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person’s Affiliates; provided, however, that with respect to BioPharma Credit PLC in its capacity as the Collateral Agent, BioPharma Credit Investments IV Sub LP shall be deemed not to be a Related Party.
“Release” means any release, spill, emission, leaking, pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous Material into the indoor or outdoor environment (including the abandonment or disposal of any barrels, containers or other closed receptacles containing any Hazardous Material), including the movement of any Hazardous Material through the air, soil, surface water or groundwater.
“Remaining Life” means, with respect to any Called Principal, the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the date that is 36 months after the Tranche A Closing Date.
“[**]” means, [**].
“Required Lenders” means, prior to the Tranche A Closing Date, Lenders obligated with respect to greater than fifty percent (50%) of the Tranche A Commitments and, thereafter, Lenders representing greater than fifty percent (50%) of the outstanding principal amount of the Term Loans.
“Requirements of Law” means, as to any Person, the organizational or governing documents of such Person, and any law (statutory or common), treaty, order, policy, rule or regulation or determination of an arbitrator or a court or other Governmental Authority (including Health Care Laws, FDA Laws and all applicable statutes, rules, regulations, standards, guidelines, policies and orders administered or issued by any foreign Governmental Authority), in each case, applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.
“Responsible Officer” means, with respect to any Credit Party, any of the Chief Executive Officer, President, Chief Medical Officer, any Executive Vice President, Chief Commercial Officer, Chief Financial Officer, any Vice President or other senior officer of such Credit Party.
“Restricted License” means any material license or other agreement with respect to which a Credit Party is the licensee (a) that prohibits or otherwise restricts such Credit Party from granting a security interest in such Credit Party’s interest in such license or agreement in a manner enforceable under applicable law, or (b) for which a default under which could interfere with the Collateral Agent’s or any Lender’s right to sell any Collateral; provided that the Sotagliflozing Agreement and XERMELO Agreement shall not be considered a Restricted License.
“S&P” means Standard & Poor’s Ratings Group, a division of The McGraw Hill Corporation.

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“Sanofi” means Sanofi, a société anonyme under the laws of France, a named party to the Sotagliflozin Agreement, together with any of its permitted successors and assigns.  For the purposes of this Agreement, “Sanofi” shall include Sanofi-Aventis Deutschland GmbH, a German corporation.
“SEC” shall mean the Securities and Exchange Commission and any analogous Governmental Authority.
“Secretary’s Certificate” means, with respect to any Person, a certificate of its Secretary (or other officer performing similar duties) on behalf of such Person certifying that (a) attached to such certificate is a true, correct, and complete copy of the Borrowing Resolutions then in full force and effect, (b) such certificate sets forth the name(s) and title(s) of the Responsible Officers of such Person authorized to execute the Loan Documents to which such Person is a party on behalf of such Person, together with a sample of the true signature(s) of such Person(s), and (c) that the Collateral Agent and Lenders may conclusively rely on such certificate with respect to the authority of such Responsible Officers unless and until such Person shall have delivered to the Collateral Agent a further certificate canceling or amending such prior certificate.
“Secured Parties” means Lender, each other Indemnified Person and each other holder of any Obligation of a Credit Party.
“Securities Account” means any “securities account” as defined in the Code.
“Securities Act” means the Securities Act of 1933.
“Security Agreement” means the Guaranty and Security Agreement, dated as of the Effective Date, by and among the Credit Parties and the Collateral Agent, as such may be amended, restated, supplemented or otherwise modified from time to time.
“Settlement Date” has the meaning set forth in the definition of “Discounted Value”.
“Solvent” means, with respect to any Person as of any date of determination, that, as of such date, (a) the value of the assets (including goodwill minus disposition costs) of such Person (both at fair value and present fair saleable value) is greater than the total amount of liabilities (including contingent and unliquidated liabilities) of such Person, (b) such Person is able to pay all liabilities (including trade debt) of such Person as such liabilities mature and (c) such Person does not have unreasonably small capital.  In computing the amount of contingent or unliquidated liabilities at any time, such liabilities shall be computed at the amount that, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.
“Sotagliflozin Agreement” means that certain Collaboration and License Agreement, dated November 5, 2015, between Borrower and Sanofi, as amended by Amendment No. 1 dated July 1, 2017, and as may be further amended, supplemented or otherwise modified from time to time in accordance with the terms hereof.

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“Specified Disputes” is defined in Section 4.6(j).
“Specified Subsidiary” means each of (i) Lex-Gen Woodlands, L.P. (ii) Lex-Gen Woodlands, GP, LLC, (iii) Lex-Gen (Delaware), LLC and (iv) Lion Acquisition Corporation.
“SSA” means the Social Security Act of 1935, codified at Title 42, Chapter 7, of the United States Code.
“Stock Acquisition” means the purchase or other acquisition by Borrower or any of its Subsidiaries of all of the Equity Interests (by merger, stock purchase or otherwise) of any other Person.
“Subordinated Debt” means any term Indebtedness incurred by any Credit Party or any Subsidiary thereof (including any Indebtedness permitted in connection with any Permitted Acquisition) that (a) is subordinated in right of payment to the Obligations pursuant to a subordination, intercreditor or other similar agreement that is in form and substance satisfactory to the Collateral Agent (which agreement shall include turnover provisions that are satisfactory to the Collateral Agent), (b) is not subject to scheduled amortization, redemption (mandatory or voluntary), sinking fund or similar payment and does not have a final maturity, in each case, before the date that is twelve (12) months after the Term Loan Maturity Date, (c) does not include any covenants or any agreements that, individually or taken as a whole, are more restrictive or onerous on any Credit Party in any material respect than any comparable covenants in this Agreement, and (d) does not provide or otherwise include provisions having the effect of providing that a default or event of default (or the equivalent thereof, however described) under or in respect of such Indebtedness shall exist, or such Indebtedness shall otherwise become due prior to its scheduled maturity or the holder or holders thereof or any trustee or agent on its or their behalf shall be permitted (with or without the giving of notice, the lapse of time or both) to cause any such Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity, in any such case upon the occurrence of a Default or Event of Default unless and until the Obligations have been declared, or have otherwise automatically become, immediately due and payable pursuant to Section 8.1(a).
“Subsidiary” means, with respect to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the Board of Directors of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person.  Unless the context otherwise requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary of a Credit Party.
“Tax” means any present or future tax, levy, impost, duty, assessment, charge, fee, deduction or withholding of any nature and whatever called, by whomsoever, on whomsoever and wherever imposed, levied, collected, withheld or assessed, including any tax of any kind whatsoever (whether disputed or not) imposed by any Governmental Authority).

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“Term Loan” means each of the Tranche A Loan and the Tranche B Loan, as applicable, and “Term Loans” means, collectively, the Tranche A Loan and the Tranche B Loan; provided, however, that in the event the Tranche B Loan is not made on the Tranche B Closing Date, “Term Loans” shall mean only the Tranche A Loan.
“Term Loan Maturity Date” means the five-year anniversary of the Tranche A Closing Date.
“Territory” means the United States, each country in the European Union and all other countries in which any Product has been Commercialized, or in which any attempt to Commercialize any Product has occurred (such as submission of applications to Governmental Authorities).
“Texas Lease” means that certain Lease Agreement, dated as of April 21, 2004, by and between Lex-Gen Woodlands, L.P. and Borrower with respect to the Texas Property, as amended, supplemented or otherwise modified from time to time in accordance with the terms hereof.
“Texas Property” means that certain real property owned by the Lex-Gen Woodlands, L.P. located at 8800 Technology Forest Place, The Woodlands, Texas 77381 and at 4000 Research Forest Dr., The Woodlands, Texas  77381.
“Third Party IP” is defined in Section 4.6(n).
“Trademark License” means any agreement, whether written or oral, providing for the grant by or to a Person of any right to use any Trademark.
“Trademarks” means (a) all trademarks, trade names, corporate names, company names, business names, fictitious business names, service marks, elements of package or trade dress of goods or services, logos and other source or business identifiers, together with the goodwill associated therewith, all registrations and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country, multinational body or any political subdivision thereof (and all related IP Ancillary Rights) and (b) all renewals thereof.
“Tranche A Closing Date” means the date on which the Tranche A Loan is advanced by Lenders, which, subject to the satisfaction of the conditions precedent to the Tranche A Loan set forth in Sections 3.1, 3.3 and 3.5 shall be ten (10) Business Days following the Effective Date or such earlier date as agreed by Lenders.
“Tranche A Commitment” means, with respect to any Lender, the commitment of such Lender to make the Credit Extensions relating to the Tranche A Loan on the Tranche A Closing Date in the aggregate principal amount set forth opposite such Lender’s name on Exhibit E attached hereto or in a Lender Transfer, as applicable.
“Tranche A Loan” is defined in Section 2.2(a)(i).
“Tranche A Loan Amount” means an aggregate principal amount equal to One Hundred and Fifty Million Dollars ($150,000,000.00).

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“Tranche A Note” means a promissory note in substantially the form attached hereto as Exhibit C-1, as it may be amended, restated, supplemented or otherwise modified from time to time.
“Tranche B Closing Date” means the date on which the Tranche B Loan is advanced by Lenders, which, subject to the satisfaction of the conditions precedent to the Tranche B Loan set forth in Sections 3.2, 3.3 and 3.5, shall be the earlier of (a) twenty (20) Business Days following the delivery by Borrower to the Collateral Agent of a completed Payment/Advance Form with respect to the Tranche B Loan in accordance with Section 3.5 and (b) March 20, 2019.
“Tranche B Commitment” means, with respect to any Lender, the commitment of such Lender to make the Credit Extensions relating to the Tranche B Loan on the Tranche B Closing Date in an aggregate principal amount equal to the percentage of the Tranche B Loan Amount set forth opposite such Lender’s name on Exhibit E attached hereto or in a Lender Transfer, as applicable.
“Tranche B Loan” is defined in Section 2.2(a)(ii).
“Tranche B Loan Amount” means, if Net Sales for the fiscal quarter preceding the Tranche B Closing Date are greater than $25,000,000, $50,000,000.  For the avoidance of doubt, if Net Sales for the fiscal quarter preceding the Tranche B Closing Date are less than or equal to $25,000,000, the Tranche B Loan Amount equals zero.
“Tranche B Note” means a promissory note in substantially the form attached hereto as Exhibit C-2, as it may be amended, restated, supplemented or otherwise modified from time to time.
“Transfer” is defined in Section 6.1.
“TRICARE” means, collectively, a program of medical benefits covering former and active members of the uniformed services and certain of their dependents, financed and administered by the United States Departments of Defense, Health and Human Services and Transportation, and all laws applicable to such programs.
“XERMELO Agreement” means that certain License and Collaboration Agreement, dated October 21, 2014, between Borrower and Ipsen Pharma SAS, a French corporation, as amended by the First Amendment, dated March 17, 2015, as may be amended, supplemented or otherwise modified from time to time in accordance with the terms hereof.
“United States” or “U.S.” means the United States of America, each state and territory thereof and the District of Columbia.
“Wholly-Owned Subsidiary” means, with respect to any Person, a Subsidiary of such Person, all of the Equity Interests of which (other than directors’ qualifying shares or nominee or other similar shares required pursuant to Requirements of Law) are owned by such Person or another Wholly-Owned Subsidiary of such Person.  Unless the context otherwise requires, each reference to a Wholly-Owned Subsidiary herein shall be a reference to a Wholly-Owned Subsidiary of a Credit Party.

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“Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.
[Signature page follows.]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the Effective Date.
LEXICON PHARMACEUTICALS, INC.,
as Borrower

By:        
Name:
Title:

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SYMPHONY ICON, INC.,
as a Guarantor

By:        
Name:
Title:

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LEXICON PHARMACEUTICALS (NEW JERSEY), INC.,
as a Guarantor

By:        
Name:
Title:

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Confidential materials omitted and filed separately
with the Securities and Exchange Commission.
Asterisks denote omissions.

BIOPHARMA CREDIT PLC,
as Collateral Agent and a Lender

By:        
Name:
Title:

BIOPHARMA CREDIT INVESTMENTS IV SUB LP,
as a Lender

By: Pharmakon Advisors, LP,
its Investment Manager

By: Pharmakon Management I, LLC,
its General Partner

By:    
Name:  Pedro Gonzalez de Cosio
Title:  Managing Member

106

Confidential materials omitted and filed separately
with the Securities and Exchange Commission.
Asterisks denote omissions.

EXHIBIT A - PAYMENT/ADVANCE FORM
The undersigned, being the duly elected and acting _____________________ of LEXICON PHARMACEUTICALS, INC., a Delaware corporation (“Borrower”), does hereby certify, solely in his/her capacity as an authorized officer of Borrower and not in his/her personal capacity, to BIOPHARMA CREDIT PLC, in its capacity as the Collateral Agent, in connection with that certain Loan Agreement dated as of December 4, 2017 by and among Borrower, the Guarantor Subsidiaries from time to time party thereto, the Collateral Agent, the Lenders and the other parties thereto (the “Loan Agreement”; with other capitalized terms used below having the meanings ascribed thereto in the Loan Agreement) that, on the Tranche [A][B] Closing Date:
1.the representations and warranties made by the Credit Parties in Section 4 of the Loan Agreement and in the other Loan Documents are true and correct in all material respects, unless any such representation or warranty is stated to relate to a specific earlier date, in which case such representation or warranty shall be true and correct in all material respects as of such earlier date (it being understood that any representation or warranty that is qualified as to “materiality,” “Material Adverse Change,” or similar language shall be true and correct in all respects on the Tranche [A][B] Closing Date1 or as of such earlier date, as applicable);
2.no Default or an Event of Default has occurred since the [Effective Date]2 [Tranche A Closing Date]3 or is occurring as of the date hereof;
3.each of the Credit Parties is in compliance with the covenants and requirements contained in Sections 5 and 6 of the Loan Agreement;
4.all conditions referred to in Section 3 of the Loan Agreement to the making of the Term Loan to be made on or about the date hereof have been satisfied (or waived in writing by the Collateral Agent or the Required Lenders);
5.no Material Adverse Change or Change in Control has occurred;
6.the undersigned is a Responsible Officer; and
7.the proceeds of the [Tranche A Loan] [Tranche B Loan]4 shall be disbursed as set forth on Attachment A hereto.
Dated:  ___________________, 201_
[signature page follows]

_____________________________
1As applicable
2To be included in Payment/Advance Form for Tranche A Loan only.
3To be included in Payment/Advance Form for Tranche B Loan only.
4As applicable.

107

Confidential materials omitted and filed separately
with the Securities and Exchange Commission.
Asterisks denote omissions.

LEXICON PHARMACEUTICALS, INC.,
as Borrower

By:        
Name:
Title:

Signature Page to Lease Agreement

108

Confidential materials omitted and filed separately
with the Securities and Exchange Commission.
Asterisks denote omissions.

EXHIBIT B - COMPLIANCE CERTIFICATE
TO:        BIOPHARMA CREDIT PLC
FROM:    LEXICON PHARMACEUTICALS, INC.
The undersigned authorized officer of LEXICON PHARMACEUTICALS, INC., a Delaware corporation (“Borrower”) hereby certifies, solely in his/her capacity as a Responsible Officer of Borrower and not in his/her personal capacity, that in accordance with the terms and conditions of the Loan Agreement (the “Loan Agreement”; capitalized terms used, but not defined herein having the meanings given them in the Loan Agreement) dated as of December 4, 2017 by and among Borrower, the Guarantor Subsidiaries from time to time party thereto, BIOPHARMA CREDIT PLC, a public limited company incorporated under the laws of England and Wales (as “Collateral Agent”) and the Lenders:
(i)    The Credit Parties are in complete compliance for the period ending _______________ with all required covenants except as noted below;
(ii)    No Default or Event of Default has occurred and is continuing, except as noted below;
(iii)    Each Credit Party and each of its Subsidiaries has timely filed all U.S. federal income Tax returns and other material Tax returns and reports (or extensions thereof) of each Credit Party and each of its Subsidiaries required to be filed by any of them and such returns and reports are correct in all material respects, and has timely paid all material Taxes owed which are due and payable by such Credit Party or Subsidiary or upon their respective properties, assets, income, businesses and franchises, except as otherwise permitted pursuant to the terms of Section 4.10 or Section 5.4 of the Loan Agreement; and
(iv)    No Liens have been levied or claims made against any Credit Party or any of its Subsidiaries relating to unpaid employee payroll or benefits of which (a) such Credit Party has not previously provided written notification to the Collateral Agent or (b) which do not constitute Permitted Liens.
Attached are the required documents, if any, supporting our certification(s).  The undersigned Responsible Officer on behalf of Borrower further certifies that the attached financial statements (which shall not be attached if such financial statements are deemed delivered by filing with the SEC on Form 10-Q or 10-K as applicable) fairly present, in all material respects, the consolidated financial condition, results of operations and cash flows of Borrower and its Subsidiaries as of applicable the dates and for the applicable periods in accordance with Applicable Accounting Standards consistently applied.
Date:  ______________________
[signature page follows]

109

Confidential materials omitted and filed separately
with the Securities and Exchange Commission.
Asterisks denote omissions.

LEXICON PHARMACEUTICALS, INC.,
as Borrower

By:        
Name:
Title:

110

Confidential materials omitted and filed separately
with the Securities and Exchange Commission.
Asterisks denote omissions.

Please indicate compliance status since the last Compliance Certificate by circling Yes, No, or N/A under “Complies” column.
	
							
	 
	Reporting Covenant
	Requirement
	 
	Complies

	1)
	Annual Financial Statements
	120 days after year end
	 
	Yes
	No
	N/A

	2)
	Quarterly Financial Statements
	60 days after quarter end
	 
	Yes
	No
	N/A

	3)
	Other Statements after an Event of Default
	5 days after delivery
	 
	Yes
	No
	N/A

	4)
	Legal Action Notice
	Promptly
	 
	Yes
	No
	N/A

	5)
	Notice of Default, etc.
	Promptly (within 5 Business Days) after knowledge
	 
	Yes
	No
	N/A

	6)
	IP Report
	Promptly (within 5 Business Days), when required
	 
	Yes
	No
	N/A

	
		
	Deposit and Securities Accounts
	(Please list all accounts and indicate each Excluded Account with an asterisk (*); attach separate sheet if additional space needed)

	
													
	 
	Bank
	 
	Account Number
	 
	New Account?
	 
	Acct Control Agmt in place?
	 
	 

	1)
	 
	 
	 
	 
	Yes
	No
	 
	Yes
	No
	 
	 

	2)
	 
	 
	 
	 
	Yes
	No
	 
	Yes
	No
	 
	 

	3)
	 
	 
	 
	 
	Yes
	No
	 
	Yes
	No
	 
	 

	4)
	 
	 
	 
	 
	Yes
	No
	 
	Yes
	No
	 
	 

	5)
	 
	 
	 
	 
	Yes
	No
	 
	Yes
	No
	 
	 

	6)
	 
	 
	 
	 
	Yes
	No
	 
	Yes
	No
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Other Matters
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Have there been any changes in management since the last Compliance Certificate?
	 
	 
	Yes
	 
	No
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Have there been any prohibited Transfers?
	Yes
	 
	No
	 
	 
	 

	 
	Exceptions
	 
	 
	 
	 
	 
	 
	 
	 

111

Confidential materials omitted and filed separately
with the Securities and Exchange Commission.
Asterisks denote omissions.

	
													
	 
	Please explain any exceptions with respect to the certification above:  (If no exceptions exist, state “No exceptions.” Attach separate sheet if additional space needed.)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	LENDER USE ONLY
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	Compliance Status
	 
	 
	 
	Yes
	 
	No

112

Confidential materials omitted and filed separately
with the Securities and Exchange Commission.
Asterisks denote omissions.

EXHIBIT C

EXHIBIT C-1
TRANCHE A NOTE
THIS NOTE IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR UNITED STATES FEDERAL INCOME TAX PURPOSES.  FOR INFORMATION REGARDING THE ISSUE PRICE, THE TOTAL AMOUNT OF THE ORIGINAL ISSUE DISCOUNT, THE ISSUE DATE, AND THE YIELD TO MATURITY OF THE NOTE, PLEASE CONTACT [Name of person at company or title, e.g. Chief Financial Officer], [address or telephone number].
$___________.00    Dated:  _____________, 2017
FOR VALUE RECEIVED, the undersigned, LEXICON PHARMACEUTICALS, INC., a Delaware corporation (“Borrower”), HEREBY PROMISES TO PAY to [INSERT NAME OF LENDER], or its registered assigns (“Lender”) the principal amount of [INSERT SUCH LENDER’S TRANCHE A COMMITMENT] DOLLARS ($___________.00), plus interest on the aggregate unpaid principal amount hereof at a rate (which rate shall be fixed for the duration of the Tranche A Loan) equal to nine percent (9.00%) per annum, and in accordance with the terms of the Loan Agreement dated as of December 4, 2017 by and among Borrower, the Guarantor Subsidiaries from time to time party thereto, the Collateral Agent, and the Lenders (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”).  If not sooner paid, the entire principal amount, all accrued and unpaid interest hereunder, all due and unpaid Lender Expenses and any other amounts payable under the Loan Documents shall be due and payable on the Term Loan Maturity Date.  Any capitalized term not otherwise defined herein shall have the meaning attributed to such term in the Loan Agreement.
The Tranche A Loan, including all unpaid principal thereunder, is due and payable in full on the Term Loan Maturity Date.  Interest shall accrue on this Tranche A Note commencing on, and including, the date of this Tranche A Note, and shall accrue on this Tranche A Note, or any portion thereof, for the day on which this Tranche A Note or such portion is paid.  Interest on this Tranche A Note shall be payable in accordance with Section 2.3 of the Loan Agreement.
Principal, interest and all other amounts due with respect to this Tranche A Note are payable in lawful money of the United States of America to Lender as set forth in the Loan Agreement and this Tranche A Note.
The Loan Agreement, among other things, (a) provides for the making of secured Term Loans by Lender to Borrower, and (b) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events.
This Tranche A Note may not be prepaid except as set forth in Section 2.2(c) of the Loan Agreement.

113

Confidential materials omitted and filed separately
with the Securities and Exchange Commission.
Asterisks denote omissions.

This Tranche A Note and the obligation of Borrower to repay the unpaid principal amount of this Tranche A Note, interest thereon, and all other amounts due Lender under the Loan Agreement are secured pursuant to the Collateral Documents.
Presentment for payment, demand, notice of protest and all other demands and notices of any kind in connection with the execution, delivery, performance and enforcement of this Tranche A Note are hereby waived.
Borrower shall pay all reasonable fees and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred by Lender in the enforcement or attempt to enforce any of Borrower’s obligations hereunder not performed when due in accordance with the Loan Agreement.
Upon repayment in full of all Obligations evidenced by this Tranche A Note, this Tranche A Note shall be automatically deemed cancelled and of no further force or effect.
THIS TRANCHE A NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY PRINCIPLES OF CONFLICTS OF LAW THAT COULD REQUIRE THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION.
Note Register; Ownership of Note.  The ownership of an interest in this Tranche A Note shall be registered on a record of ownership maintained by the Collateral Agent.  Notwithstanding anything else in this Tranche A Note to the contrary, the right to the principal of, and stated interest on, this Tranche A Note may be transferred only if the transfer is registered on such record of ownership and the transferee is identified as the owner of an interest in the obligation.  Borrower shall be entitled to treat the registered holder of this Tranche A Note (as recorded on such record of ownership) as the owner in fact thereof for all purposes and shall not be bound to recognize any equitable or other claim to or interest in this Tranche A Note on the part of any other Person.
IN WITNESS WHEREOF, Borrower has caused this Tranche A Note to be duly executed by one of its officers thereunto duly authorized on the date hereof.
BORROWER:

LEXICON PHARMACEUTICALS, INC.,
as Borrower

By:        
Name:    
Title:    

114

Confidential materials omitted and filed separately
with the Securities and Exchange Commission.
Asterisks denote omissions.

EXHIBIT C-2
TRANCHE B NOTE 
THIS NOTE IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR UNITED STATES FEDERAL INCOME TAX PURPOSES.  FOR INFORMATION REGARDING THE ISSUE PRICE, THE TOTAL AMOUNT OF THE ORIGINAL ISSUE DISCOUNT, THE ISSUE DATE, AND THE YIELD TO MATURITY OF THE NOTE, PLEASE CONTACT [Name of person at company or title, e.g. Chief Financial Officer], [address or telephone number].
$_____________.00    Dated:  ____________ __, 201_
FOR VALUE RECEIVED, the undersigned, LEXICON PHARMACEUTICALS, INC., a Delaware corporation (“Borrower”), HEREBY PROMISES TO PAY to [INSERT NAME OF LENDER], or its registered assigns (“Lender”) the principal amount of [INSERT SUCH LENDER’S TRANCHE B COMMITMENT] DOLLARS ($___________.00), plus interest on the aggregate unpaid principal amount hereof at a rate (which rate shall be fixed for the duration of the Tranche B Loan) equal to nine percent (9.00%) per annum, and in accordance with the terms of the Loan Agreement dated as of December 4, 2017 by and among Borrower, Guarantor Subsidiaries from time to time party thereto, the Collateral Agent, and the Lenders and the other parties thereto (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”).  If not sooner paid, the entire principal amount, all accrued and unpaid interest hereunder, all due and unpaid Lender Expenses and any other amounts payable under the Loan Documents shall be due and payable on the Term Loan Maturity Date.  Any capitalized term not otherwise defined herein shall have the meaning attributed to such term in the Loan Agreement.
The Tranche B Loan, including all unpaid principal thereunder, is due and payable in full on the Term Loan Maturity Date.  Interest shall accrue on this Tranche B Note commencing on, and including, the date of this Tranche B Note, and shall accrue on this Tranche B Note, or any portion thereof, for the day on which this Tranche B Note or such portion is paid.  Interest on this Tranche B Note shall be payable in accordance with Section 2.3 of the Loan Agreement.
Principal, interest and all other amounts due with respect to this Tranche B Note are payable in lawful money of the United States of America to Lender as set forth in the Loan Agreement and this Tranche B Note.
The Loan Agreement, among other things, (a) provides for the making of secured Term Loans by Lender to Borrower, and (b) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events.
This Tranche B Note may not be prepaid except as set forth in Section 2.2(c) of the Loan Agreement.

115

Confidential materials omitted and filed separately
with the Securities and Exchange Commission.
Asterisks denote omissions.

This Tranche B Note and the obligation of Borrower to repay the unpaid principal amount of this Tranche B Note, interest thereon, and all other amounts due Lender under the Loan Agreement are secured pursuant to the Collateral Documents.
Presentment for payment, demand, notice of protest and all other demands and notices of any kind in connection with the execution, delivery, performance and enforcement of this Tranche B Note are hereby waived.
Borrower shall pay all reasonable fees and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred by Lender in the enforcement or attempt to enforce any of Borrower’s obligations hereunder not performed when due in accordance with the Loan Agreement.
Upon repayment in full of all Obligations evidenced by this Tranche B Note, this Tranche B Note shall be automatically deemed cancelled and of no further force or effect.
THIS TRANCHE B NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY PRINCIPLES OF CONFLICTS OF LAW THAT COULD REQUIRE THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION.
Note Register; Ownership of Note.  The ownership of an interest in this Tranche B Note shall be registered on a record of ownership maintained by the Collateral Agent.  Notwithstanding anything else in this Tranche A Note to the contrary, the right to the principal of, and stated interest on, this Tranche B Note may be transferred only if the transfer is registered on such record of ownership and the transferee is identified as the owner of an interest in the obligation.  Borrower shall be entitled to treat the registered holder of this Tranche B Note (as recorded on such record of ownership) as the owner in fact thereof for all purposes and shall not be bound to recognize any equitable or other claim to or interest in this Tranche B Note on the part of any other Person.
IN WITNESS WHEREOF, Borrower has caused this Tranche B Note to be duly executed by one of its officers thereunto duly authorized on the date hereof.
BORROWER:

LEXICON PHARMACEUTICALS, INC.,
as Borrower

By:        
Name:    
Title:    

116

Confidential materials omitted and filed separately
with the Securities and Exchange Commission.
Asterisks denote omissions.

EXHIBIT D
SOLVENCY CERTIFICATE
__________, 2017
This SOLVENCY CERTIFICATE (this “Certificate”) is delivered by the undersigned solely in his capacity as Executive Vice President, Corporate and Administrative Affairs and Chief Financial Officer of LEXICON PHARMACEUTICALS, INC., a Delaware corporation (“Borrower”), in connection with and pursuant to that certain Loan Agreement, dated as of December 4, 2017 (as may be amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”), by and among Borrower, the Guarantor Subsidiaries from time to time party thereto, the Lenders and BIOPHARMA CREDIT PLC, a public limited company incorporated under the laws of England and Wales (as “Collateral Agent”).  Unless otherwise defined herein, terms defined in the Loan Agreement and used herein shall have the meanings given to them in the Loan Agreement.
I am the duly qualified and acting Executive Vice President, Corporate and Administrative Affairs and Chief Financial Officer of Borrower, acting for and on behalf of the Credit Parties.  In such capacity, I am the senior most financial officer of the Credit Parties, and, in such capacity, I have participated actively in the management of the financial affairs of Borrower and its Subsidiaries.
I have, together with other officers of Borrower, acted on behalf of the Credit Parties in connection with the negotiation of the Loan Agreement and the other agreements and documents contemplated thereby, and I am familiar with the terms and conditions thereof and the definitions contained in the Loan Agreement relating thereto.
I have participated in the preparation of, and I have reviewed, the financial statements of Borrower and each of its Subsidiaries referred to in Section 3.1(n)) of the Loan Agreement, as well as additional information with respect to the assets and liabilities of Borrower and its Subsidiaries, and have made such other investigations and inquiries I have deemed appropriate, having taken into account the nature of the particular business in which Borrower and its Subsidiaries are engaged or anticipate being engaged after consummation of the transactions contemplated by the Loan Agreement.
I have carefully reviewed the contents of this Certificate, and have conferred with counsel for Borrower for the purpose of discussing the meaning of the legal terms in this Certificate.
Based on the foregoing, I have reached the following conclusions:
As of the date hereof, both before and after giving effect to the transactions contemplated by the Loan Agreement occurring on the date hereof, including the incurrence of Indebtedness under the Tranche A Note, and after giving effect to the application of the proceeds 

117

Confidential materials omitted and filed separately
with the Securities and Exchange Commission.
Asterisks denote omissions.

thereof, (a) Borrower is Solvent and (b) Borrower and its Subsidiaries, on a consolidated basis, are Solvent.
For purposes of this Certificate, in computing the amount of any contingent or unliquidated liabilities as of the date hereof, such liabilities have been computed at the amount that, in light of all the facts and circumstances existing as of the date hereof, represents the amount that can reasonably be expected to become an actual or matured liability.
No Credit Party has executed the Loan Agreement or any documents referred to therein, or made any transfer or incurred any obligations thereunder, with actual intent to hinder, delay or defraud either present or future creditors, including the Lenders.
I understand that each Lender and the Collateral Agent is relying on the truth and accuracy of the foregoing in connection with the funding of the Term Loans and other extensions of credit to Borrower pursuant to the Loan Agreement.
[Signature Page Follows]

118

Confidential materials omitted and filed separately
with the Securities and Exchange Commission.
Asterisks denote omissions.

In my capacity as the Executive Vice President, Corporate and Administrative Affairs and Chief Financial Officer of Borrower, I represent the foregoing information to be, to the best of my knowledge and belief, true and correct and execute this Certificate on behalf of the Credit Parties in the capacity set forth above as of the date first written above.
LEXICON PHARMACEUTICALS, INC.

By:        
Name:    Jeffrey L. Wade
Title:    Executive Vice President, Corporate and 
Administrative Affairs and Chief Financial 
Officer

119

Confidential materials omitted and filed separately
with the Securities and Exchange Commission.
Asterisks denote omissions.

EXHIBIT E
COMMITMENTS; NOTICE ADDRESSES
	
			
	Lender
	Commitments
	Notice Address

	BioPharma Credit PLC
	Tranche A Commitment:
$124,500,000.00
Tranche B Commitment:
$41,500,000.00
	BioPharma Credit PLC
[**]
with copies (which shall not constitute notice) to:
Pharmakon Advisors LP
[**]
and
Akin Gump Strauss Hauer & Feld LLP
[**]

	BioPharma Credit Investments IV Sub LP
	Tranche A Commitment:
$25,500,000.00
Tranche B Commitment:
$8,500,000.00
	BioPharma Credit Investments IV Sub LP
[**]
with copies (which shall not constitute notice) to:
Pharmakon Advisors LP
[**]
and
Akin Gump Strauss Haur & Feld LLP
[**]

120EXHIBIT 10.1

 Exhibit 10.1 

EXECUTION VERSION 
 LOAN
AGREEMENT (Tranche 3A) 
 Dated as of November 29, 2017 

among 
 HOME SFR BORROWER IV,
LLC, 
 as Borrower, 

VACA MORADA PARTNERS, LP, 

as a Lender, 
 MSR II, L.P.,

 as a Lender 
 and 

AMHERST SFR LENDER, LLC, 

as Agent 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 Article I - DEFINITIONS; PRINCIPLES OF CONSTRUCTION
	  	 	1	 
			
	 Section 1.1
	 	 Definitions
	  	 	1	 
			
	 Section 1.2
	 	 Principles of Construction
	  	 	39	 
		
	Article II - GENERAL TERMS	  	 	39	 
			
	 Section 2.1
	 	 Loan Commitment; Disbursement to Borrower
	  	 	39	 
			
	 2.1.1
	 	 Agreement to Lend and Borrow
	  	 	39	 
			
	 2.1.2
	 	 [Reserved]
	  	 	39	 
			
	 2.1.3
	 	 Single Disbursements to Borrower
	  	 	39	 
			
	 2.1.4
	 	 The Note, Mortgages and Loan Documents
	  	 	39	 
			
	 2.1.5
	 	 Use of Proceeds
	  	 	39	 
			
	 Section 2.2
	 	 Interest Rate
	  	 	39	 
			
	 2.2.1
	 	 Interest Rate
	  	 	39	 
			
	 2.2.2
	 	 Interest Calculation
	  	 	39	 
			
	 2.2.3
	 	 Determination of Interest Rate
	  	 	40	 
			
	 2.2.4
	 	 [Reserved]
	  	 	40	 
			
	 2.2.5
	 	 Default Rate
	  	 	40	 
			
	 2.2.6
	 	 Usury Savings
	  	 	40	 
			
	 Section 2.3
	 	 Loan Payment
	  	 	40	 
			
	 2.3.1
	 	 Monthly Debt Service Payments
	  	 	40	 
			
	 2.3.2
	 	 Payments Generally
	  	 	40	 
			
	 2.3.3
	 	 Payment on Maturity Date
	  	 	41	 
			
	 2.3.4
	 	 Late Payment Charge
	  	 	41	 
			
	 2.3.5
	 	 Method and Place of Payment
	  	 	41	 
			
	 Section 2.4
	 	 Prepayments and Substitutions
	  	 	41	 
			
	 2.4.1
	 	 Voluntary Prepayments
	  	 	41	 
			
	 2.4.2
	 	 Mandatory Prepayments
	  	 	41	 
			
	 2.4.3
	 	 Prepayments After Default
	  	 	46	 
			
	 2.4.4
	 	 Prepayment/Repayment Conditions
	  	 	46	 
			
	 Section 2.5
	 	 Release of Property
	  	 	48	 
			
	 Section 2.6
	 	 Rent Deposit Account
	  	 	49	 
			
	 Section 2.7
	 	 Cash Management
	  	 	50	 

  
 - i - 

							
	 2.7.1
	 	 Cash Management Account
	  	 	50	 
			
	 2.7.2
	 	 Order of Priority of Funds in Cash Management Account
	  	 	52	 
			
	 2.7.3
	 	 Application During Event of Default
	  	 	53	 
			
	 2.7.4
	 	 Payments Received in the Cash Management Account
	  	 	53	 
			
	 Section 2.8
	 	 Withholding Taxes
	  	 	53	 
		
	 Article III - REPRESENTATIONS AND WARRANTIES
	  	 	57	 
			
	 Section 3.1
	 	 General Representations
	  	 	57	 
			
	 3.1.1
	 	 Organization
	  	 	57	 
			
	 3.1.2
	 	 Proceedings
	  	 	57	 
			
	 3.1.3
	 	 No Conflicts
	  	 	58	 
			
	 3.1.4
	 	 Litigation
	  	 	58	 
			
	 3.1.5
	 	 Agreements
	  	 	58	 
			
	 3.1.6
	 	 Consents
	  	 	58	 
			
	 3.1.7
	 	 Solvency
	  	 	59	 
			
	 3.1.8
	 	 Other Debt
	  	 	59	 
			
	 3.1.9
	 	 Employee Benefit Matters
	  	 	59	 
			
	 3.1.10
	 	 Compliance with Legal Requirements
	  	 	60	 
			
	 3.1.11
	 	 Financial Information
	  	 	60	 
			
	 3.1.12
	 	 Insurance
	  	 	60	 
			
	 3.1.13
	 	 Tax Filings
	  	 	61	 
			
	 3.1.14
	 	 Certificate of Compliance; Licenses
	  	 	61	 
			
	 3.1.15
	 	 Special Purpose Entity/Separateness
	  	 	61	 
			
	 3.1.16
	 	 Management
	  	 	62	 
			
	 3.1.17
	 	 Illegal Activity
	  	 	62	 
			
	 3.1.18
	 	 No Change in Facts or Circumstances; Disclosure
	  	 	62	 
			
	 3.1.19
	 	 Investment Company Act
	  	 	62	 
			
	 3.1.20
	 	 Federal Reserve Regulations
	  	 	62	 
			
	 3.1.21
	 	 Bank Holding Company
	  	 	62	 
			
	 3.1.22
	 	 FIRPTA
	  	 	63	 
			
	 3.1.23
	 	 Contracts
	  	 	63	 
			
	 3.1.24
	 	 Embargoed Person
	  	 	63	 
			
	 3.1.25
	 	 Perfection Representations
	  	 	63	 

  
 - ii - 

							
			
	 Section 3.2
	 	 Property Representations
	  	 	64	 
			
	 3.2.1
	 	 Property/Title
	  	 	64	 
			
	 3.2.2
	 	 Adverse Claims
	  	 	65	 
			
	 3.2.3
	 	 Title Insurance Owner’s Policy
	  	 	65	 
			
	 3.2.4
	 	 Deed
	  	 	65	 
			
	 3.2.5
	 	 Mortgage File Required Documents
	  	 	65	 
			
	 3.2.6
	 	 Property Taxes and HOA Fees
	  	 	66	 
			
	 3.2.7
	 	 Compliance with Renovation Standards
	  	 	66	 
			
	 3.2.8
	 	 Condemnation; Physical Condition
	  	 	66	 
			
	 3.2.9
	 	 Brokers
	  	 	66	 
			
	 3.2.10
	 	 Leasing
	  	 	66	 
			
	 3.2.11
	 	 Insurance
	  	 	67	 
			
	 3.2.12
	 	 Lawsuits, Etc
	  	 	67	 
			
	 3.2.13
	 	 Orders, Injunctions, Etc
	  	 	67	 
			
	 3.2.14
	 	 Agreements Relating to the Properties
	  	 	67	 
			
	 3.2.15
	 	 Accuracy of Information Regarding Property
	  	 	68	 
			
	 3.2.16
	 	 Compliance with Legal Requirements
	  	 	68	 
			
	 3.2.17
	 	 Utilities and Public Access
	  	 	68	 
			
	 3.2.18
	 	 Eminent Domain
	  	 	68	 
			
	 3.2.19
	 	 Flood Zone
	  	 	68	 
			
	 3.2.20
	 	 Specified Liens
	  	 	68	 
			
	 Section 3.3
	 	 Survival of Representations
	  	 	68	 
		
	Article IV - BORROWER COVENANTS	  	 	69	 
			
	 Section 4.1
	 	 Affirmative Covenants
	  	 	69	 
			
	 4.1.1
	 	 Preservation of Existence
	  	 	69	 
			
	 4.1.2
	 	 Compliance with Legal Requirements
	  	 	69	 
			
	 4.1.3
	 	 Special Purpose Bankruptcy Remote Entity/Separateness
	  	 	69	 
			
	 4.1.4
	 	 Non-Property Taxes
	  	 	70	 
			
	 4.1.5
	 	 Access to the Properties
	  	 	70	 
			
	 4.1.6
	 	 Cooperate in Legal Proceedings
	  	 	70	 
			
	 4.1.7
	 	 Perform Loan Documents
	  	 	71	 
			
	 4.1.8
	 	 Award and Insurance Benefits
	  	 	71	 
			
	 4.1.9
	 	 Security Interest; Further Assurances
	  	 	71	 
			
	 4.1.10
	 	 Keeping of Books and Records
	  	 	71	 
			
	 4.1.11
	 	 Business and Operations
	  	 	72	 
			
	 4.1.12
	 	 Loan Proceeds
	  	 	72	 

  
 - iii - 

							
	 4.1.13
	 	 Performance by Borrower
	  	 	72	 
			
	 4.1.14
	 	 Leasing Matters
	  	 	72	 
			
	 4.1.15
	 	 Borrower’s Operating Account
	  	 	72	 
			
	 4.1.16
	 	 Security Deposits
	  	 	72	 
			
	 4.1.17
	 	 Investment of Funds in Cash Management Account, Subaccounts, Rent Deposit Account and Security
Deposit Account
	  	 	73	 
			
	 4.1.18
	 	 Operation of Property
	  	 	74	 
			
	 4.1.19
	 	 Anti-Money Laundering
	  	 	75	 
			
	 4.1.20
	 	 Embargoed Persons
	  	 	75	 
			
	 4.1.21
	 	 ERISA Matters
	  	 	75	 
			
	 4.1.22
	 	 Contribution of Property to Borrower TRS
	  	 	75	 
			
	 Section 4.2
	 	 Negative Covenants
	  	 	76	 
			
	 4.2.1
	 	 Operation of Property
	  	 	76	 
			
	 4.2.2
	 	 Indebtedness
	  	 	76	 
			
	 4.2.3
	 	 Liens
	  	 	77	 
			
	 4.2.4
	 	 Limitation on Investments
	  	 	77	 
			
	 4.2.5
	 	 Limitation on Issuance of Equity Interests
	  	 	77	 
			
	 4.2.6
	 	 Restricted Junior Payments
	  	 	77	 
			
	 4.2.7
	 	 Principal Place of Business, State of Organization
	  	 	77	 
			
	 4.2.8
	 	 Dissolution
	  	 	78	 
			
	 4.2.9
	 	 Change In Business
	  	 	78	 
			
	 4.2.10
	 	 Debt Cancellation
	  	 	78	 
			
	 4.2.11
	 	 Changes to Accounts
	  	 	78	 
			
	 4.2.12
	 	 Zoning
	  	 	79	 
			
	 4.2.13
	 	 No Joint Assessment
	  	 	79	 
			
	 4.2.14
	 	 Limitation on Transactions with Affiliates
	  	 	79	 
			
	 4.2.15
	 	 ERISA
	  	 	79	 
			
	 4.2.16
	 	 No Embargoed Persons
	  	 	79	 
			
	 4.2.17
	 	 Transfers
	  	 	80	 
			
	 Section 4.3
	 	 Reporting Covenants
	  	 	83	 
			
	 4.3.1
	 	 Financial Reporting
	  	 	83	 
			
	 4.3.2
	 	 Annual Budget
	  	 	84	 
			
	 4.3.3
	 	 Reporting on Adverse Effects
	  	 	85	 
			
	 4.3.4
	 	 Litigation
	  	 	85	 
			
	 4.3.5
	 	 Event of Default
	  	 	85	 

  
 - iv - 

							
	 4.3.6
	 	 Other Defaults
	  	 	85	 
			
	 4.3.7
	 	 Properties Schedule
	  	 	85	 
			
	 4.3.8
	 	 Disqualified Properties
	  	 	86	 
			
	 4.3.9
	 	 Security Deposits in Cash Management Account
	  	 	86	 
			
	 4.3.10
	 	 Advance Rents Received
	  	 	86	 
			
	 4.3.11
	 	 Rent Refunds
	  	 	86	 
			
	 4.3.12
	 	 ERISA Matters
	  	 	87	 
			
	 4.3.13
	 	 Leases
	  	 	88	 
			
	 4.3.14
	 	 [Reserved]
	  	 	88	 
			
	 4.3.15
	 	 Other Reports
	  	 	88	 
			
	 4.3.16
	 	 [Reserved]
	  	 	88	 
			
	 Section 4.4
	 	 Property Covenants
	  	 	88	 
			
	 4.4.1
	 	 Ownership of the Property
	  	 	88	 
			
	 4.4.2
	 	 Liens Against the Property
	  	 	88	 
			
	 4.4.3
	 	 Condition of the Property
	  	 	88	 
			
	 4.4.4
	 	 Compliance with Legal Requirements
	  	 	89	 
			
	 4.4.5
	 	 Property Taxes and HOA Fees
	  	 	89	 
			
	 4.4.6
	 	 Compliance with Agreements Relating to the Properties
	  	 	90	 
			
	 4.4.7
	 	 Leasing
	  	 	90	 
		
	Article V - INSURANCE; CASUALTY; CONDEMNATION	  	 	91	 
			
	 Section 5.1
	 	 Insurance
	  	 	91	 
			
	 5.1.1
	 	 Insurance Policies
	  	 	91	 
			
	 Section 5.2
	 	 Casualty
	  	 	95	 
			
	 Section 5.3
	 	 Condemnation
	  	 	96	 
			
	 Section 5.4
	 	 Restoration
	  	 	97	 
		
	Article VI - RESERVE FUNDS	  	 	102	 
			
	 Section 6.1
	 	 Tax Funds
	  	 	102	 
			
	 6.1.1
	 	 Deposits of Tax Funds
	  	 	102	 
			
	 6.1.2
	 	 Release of Tax Funds
	  	 	102	 
			
	 6.1.3
	 	 Special Reserve of Tax Funds
	  	 	102	 
			
	 6.1.4
	 	 [Reserved]
	  	 	103	 
			
	 6.1.5
	 	 [Reserved]
	  	 	103	 

  
 - v - 

							
			
	 Section 6.2
	 	 Insurance Funds
	  	 	103	 
			
	 6.2.1
	 	 Deposits of Insurance Funds
	  	 	103	 
			
	 6.2.2
	 	 Release of Insurance Funds
	  	 	103	 
			
	 6.2.3
	 	 Acceptable Blanket Policy
	  	 	103	 
			
	 Section 6.3
	 	 Capital Expenditure Funds
	  	 	104	 
			
	 6.3.1
	 	 Deposits of Capital Expenditure Funds
	  	 	104	 
			
	 6.3.2
	 	 Release of Capital Expenditure Funds
	  	 	104	 
			
	 Section 6.4
	 	 Casualty and Condemnation Subaccount
	  	 	104	 
			
	 Section 6.5
	 	 Eligibility Reserve Subaccount
	  	 	104	 
			
	 6.5.1
	 	 Deposit of Eligibility Funds
	  	 	104	 
			
	 6.5.2
	 	 Release of Eligibility Funds
	  	 	105	 
			
	 Section 6.6
	 	 Cash Collateral
	  	 	105	 
			
	 6.6.1
	 	 Cash Collateral Subaccount
	  	 	105	 
			
	 6.6.2
	 	 Withdrawal of Cash Collateral Funds
	  	 	105	 
			
	 6.6.3
	 	 Release of Cash Collateral Funds
	  	 	106	 
			
	 6.6.4
	 	 Extraordinary Expense
	  	 	106	 
			
	 Section 6.7
	 	 Advance Rent Funds
	  	 	106	 
			
	 6.7.1
	 	 Deposits of Advance Rent Funds
	  	 	106	 
			
	 6.7.2
	 	 Release of Advance Rent Funds
	  	 	106	 
			
	 Section 6.8
	 	 Reserve Funds, Generally
	  	 	107	 
		
	Article VII - DEFAULTS	  	 	108	 
			
	 Section 7.1
	 	 Event of Default
	  	 	108	 
			
	 Section 7.2
	 	 Remedies
	  	 	111	 
			
	 Section 7.3
	 	 Remedies Cumulative; Waivers
	  	 	112	 
			
	 Section 7.4
	 	 Lender’s Right to Perform
	  	 	112	 
		
	Article VIII - SALE OF NOTES/ SERVICING	  	 	113	 
			
	 Section 8.1
	 	 Sale of Notes
	  	 	113	 
			
	 8.1.1
	 	 Sale of Notes
	  	 	113	 
			
	 8.1.2
	 	 [Reserved]
	  	 	113	 
			
	 Section 8.2
	 	 [Reserved]
	  	 	113	 
			
	 Section 8.3
	 	 Servicer
	  	 	113	 
		
	Article IX - MISCELLANEOUS	  	 	114	 
			
	 Section 9.1
	 	 Successors
	  	 	114	 
			
	 Section 9.2
	 	 Lender’s Discretion; Rating Agency Review Waiver
	  	 	114	 
			
	 Section 9.3
	 	 Governing Law
	  	 	114	 
			
	 Section 9.4
	 	 Modification, Waiver in Writing
	  	 	115	 

  
 - vi - 

							
	 Section 9.5
	 	 Notices
	  	 	115	 
			
	 Section 9.6
	 	 Trial by Jury
	  	 	116	 
			
	 Section 9.7
	 	 Headings
	  	 	116	 
			
	 Section 9.8
	 	 Severability
	  	 	116	 
			
	 Section 9.9
	 	 Remedies of Borrower
	  	 	116	 
			
	 Section 9.10
	 	 Offsets
	  	 	117	 
			
	 Section 9.11
	 	 No Joint Venture
	  	 	117	 
			
	 Section 9.12
	 	 Conflict; Construction of Documents
	  	 	117	 
			
	 Section 9.13
	 	 Brokers and Financial Advisors
	  	 	117	 
			
	 Section 9.14
	 	 Counterparts
	  	 	117	 
			
	 Section 9.15
	 	 General Indemnity; Payment of Expenses
	  	 	118	 
			
	 Section 9.16
	 	 No Third-Party Beneficiaries
	  	 	120	 
			
	 Section 9.17
	 	 Exculpation of Lender
	  	 	120	 
			
	 Section 9.18
	 	 No Fiduciary Duty
	  	 	120	 
			
	 Section 9.19
	 	 Patriot Act Records
	  	 	122	 
			
	 Section 9.20
	 	 Prior Agreements
	  	 	122	 
			
	 Section 9.21
	 	 Publicity
	  	 	122	 
			
	 Section 9.22
	 	 Delay Not a Waiver
	  	 	122	 
			
	 Section 9.23
	 	 Schedules and Exhibits Incorporated
	  	 	123	 
			
	 Section 9.24
	 	 Document Delivery
	  	 	123	 
			
	 Section 9.25
	 	 Cross Default; Cross Collateralization; Waiver of Marshalling of Assets
	  	 	123	 
			
	 Section 9.26
	 	 Survival
	  	 	123	 
			
	 Section 9.27
	 	 State Specific Provisions
	  	 	124	 
			
	 9.27.1
	 	 Florida
	  	 	124	 
			
	 9.27.2
	 	 Georgia
	  	 	124	 
			
	 9.27.3
	 	 Indiana
	  	 	124	 
			
	 9.27.4
	 	 Kansas
	  	 	125	 
			
	 9.27.5
	 	 Missouri
	  	 	125	 
			
	 9.27.6
	 	 North Carolina
	  	 	126	 
			
	 9.27.7
	 	 Tennessee
	  	 	126	 
			
	 Section 9.28
	 	 Preferences
	  	 	127	 
			
	 Section 9.29
	 	 Waiver of Notice
	  	 	127	 

  
 - vii - 

							
		
	Article X - AGENT	  	 	127	 
			
	 Section 10.1
	 	 Appointment and Authority
	  	 	127	 
			
	 Section 10.2
	 	 Rights as a Lender
	  	 	127	 
			
	 Section 10.3
	 	 Exculpatory Provisions
	  	 	127	 
			
	 Section 10.4
	 	 Reliance by Agent
	  	 	128	 
			
	 Section 10.5
	 	 Delegation of Duties
	  	 	128	 
			
	 Section 10.6
	 	 Resignation of Agent
	  	 	128	 
			
	 Section 10.7
	 	 Enforcement
	  	 	128	 
			
	 Section 10.8
	 	 Collateral and Guaranty Matters
	  	 	129	 
			
	 Section 10.9
	 	 Borrower-Agent Interaction
	  	 	129	 
			
	 Section 10.10
	 	 Non-Survival of Agency Provisions
	  	 	129	 

  
 - viii - 

 SCHEDULES 

Schedules and Exhibits 
  

					
	 Schedules:
	 		  	
			
	 Schedule I
	 	 -
	  	 Allocated Loan Amounts

	 Schedule II.A
	 	 -
	  	 Closing Date Properties Schedule

	 Schedule II.B
	 	 -
	  	 Form of Monthly Properties Schedule

	 Schedule II.C
	 	 -
	  	 Form of Quarterly Investor Rollup Report

	 Schedule III
	 	 -
	  	 Exceptions to Representations and Warranties

	 Schedule IV
	 	 -
	  	 Chief Executive Office, Prior Names and Employer Identification Number

	 Schedule V
	 	 -
	  	 [Reserved]

	 Schedule VI
	 	 -
	  	 HOME SFR Borrower CMBS Asset Management Fees

	 Schedule VII
	 	 -
	  	 HOA Estoppel Properties

	 Schedule VIII
	 		  	 Prohibited Loan Transferees

	 Schedule IX
	 		  	 Vacant Properties

	 Schedule X
	 		  	 Specified Liens

			
	 Exhibits:
	 		  	
			
	 Exhibit A
	 	 -
	  	 Form of Blocked Account Control Agreement

	 Exhibit B
	 	 -
	  	 Form of Compliance Certificate

	 Exhibit C
	 	 -
	  	 Form of Deposit Account Control Agreement

	 Exhibit D
	 	 -
	  	 Form of Request for Release

	 Exhibit E
	 	 -
	  	 Form of Closing Date GRC Certificate

	 Exhibit F
	 	 -
	  	 [Reserved]

	 Exhibit G-1
	 	 -
	  	 Form of U.S. Tax Compliance Certificate (For Foreign Lenders That Are Not Partnerships For U.S.
Federal Income Tax Purposes)

	 Exhibit G-2
	 	 -
	  	 Form of U.S. Tax Compliance Certificate (For Foreign Participants That Are Not Partnerships For
U.S. Federal Income Tax Purposes)

	 Exhibit G-3
	 	 -
	  	 Form of U.S. Tax Compliance Certificate (For Foreign Participants That Are Partnerships For
U.S. Federal Income Tax Purposes)

	 Exhibit G-4
	 	 -
	  	 Form of U.S. Tax Compliance Certificate (For Foreign Lenders That Are Partnerships For U.S.
Federal Income Tax Purposes)

  
 - ix - 

 LOAN AGREEMENT 

THIS LOAN AGREEMENT (Tranche 3A), dated as of November 29, 2017 (as amended, restated, replaced, supplemented or otherwise
modified from time to time, this “Agreement”), is made by and among HOME SFR BORROWER IV, LLC, a Delaware limited liability company, having its principal place of business at c/o Altisource Asset Management Corporation, 5100
Tamarind Reef, Christiansted, VI 00820 (“Borrower”), VACA MORADA PARTNERS, LP, a Delaware limited partnership, (a “Lender”), having its principal place of business at 5001 Plaza on the Lake, Suite 200,
Austin, TX 78746, MSR II, L.P., a Delaware limited partnership, having its principal place of business at 5001 Plaza on the Lake, Suite 200, Austin, TX 78746, (a “Lender” and together with Vaca Morada Partners, LP,
collectively, the “Lender”) and AMHERST SFR LENDER, LLC, a Delaware limited liability company, having an address at 5001 Plaza on the Lake, Suite 200, Austin, TX 78746, as agent (in such capacity as “Agent”).

 W I T N E S S E T H: 

WHEREAS, Borrower desires to obtain the Loan (as hereinafter defined) from Lender; 

WHEREAS, each Lender desires to appoint Amherst SFR Lender, LLC to act as its agent under the Loan Documents as provided in
Section 10.1; 
 WHEREAS, Lender is willing to make the Loan to Borrower, subject to and in accordance with
the terms of this Agreement and the other Loan Documents (as hereinafter defined); and 
 WHEREAS, Lender is also willing to make a
Loan to Borrower, subject to and in accordance with the terms of that certain Loan Agreement (Tranche 3B) dated as of the date hereof among Agent, Lender and Borrower (as the same together with the Collateral Documents (as defined therein) may be
amended, restated, replaced, supplemented or otherwise modified from time to time, the “Companion Seller Financing”); 

NOW THEREFORE, in consideration of the making of the Loan by Lender and the covenants, agreements, representations and warranties set
forth in this Agreement, the parties hereto hereby covenant, agree, represent and warrant as follows: 
 ARTICLE I - DEFINITIONS;
PRINCIPLES OF CONSTRUCTION 
 Section 1.1    Definitions. For all purposes
of this Agreement, except as otherwise expressly required or unless the context clearly indicates a contrary intent: 
 “Acceptable
Blanket Policy” has the meaning set forth in Section 5.1.1(e). 
 “Actual Rent
Collections” means, for any period of determination, the actual cash collections of Rents in respect of the Properties by Borrower; provided, that collections of Advance Rent shall be allocated to the applicable calendar month
set forth in the Advance Rent Disbursement Schedule. 

  
 1 

 “Additional Insolvency Opinion” means a
non-consolidation opinion letter delivered in connection with the Loan subsequent to the Closing Date, in form and substance and from counsel reasonably satisfactory to Lender. 

“Advance Rent” means, for any given month, any Rent that has been prepaid more than thirty (30) days in advance, as
measured from the date of determination. 
 “Advance Rent Disbursement Schedule” means a schedule showing the Payment Dates
to which Advance Rents received by Borrower are applicable and should be disbursed from the Advance Rent Subaccount to the Cash Management Account. 

“Advance Rent Funds” has the meaning set forth in Section 6.7.1. 

“Advance Rent Subaccount” has the meaning set forth in Section 6.7.1. 

“Affected Property” has the meaning set forth in Section 2.4.2(a). 

“Affiliate” means, as to any Person, any other Person that (i) owns directly or indirectly forty-nine percent (49%) or
more of all equity interests in such Person, and/or (ii) is in Control of, is Controlled by or is under common ownership or Control with such Person, and/or (iii) is a director or officer of such Person or of an Affiliate of such Person.

 “Agent” has the meaning set forth in the introductory paragraph hereto, together with its successors and permitted
assigns. 
 “Agreement” has the meaning set forth in the introductory paragraph hereto. 

“Allocated Loan Amount” means for a Property the amount set forth on Schedule I, as the same may be reduced
pursuant to Section 2.4.4(f); provided that (i) if a single Substitute Property is substituted for an Affected Property or portfolio of Affected Properties pursuant to
Section 2.4.2(a), then the initial Allocated Loan Amount of such Substitute Property shall be the Allocated Loan Amount of such Affected Property (or the aggregate Allocated Loan Amounts of such Affected Properties)
immediately prior to its (or their) substitution, and (ii) if two (2) or more Substitute Properties are substituted for an Affected Property or portfolio of Affected Properties pursuant to Section 2.4.2(a), then
the initial Allocated Loan Amount of each such Substitute Property shall be a pro rata portion of the Allocated Loan Amount of such Affected Property (or the aggregate Allocated Loan Amounts of such Affected Properties) immediately prior to
its (or their) substitution, with such pro rata portion determined based on the BPO Values of the Substitute Properties. For the avoidance of doubt, in connection with calculating the payments contemplated by this Agreement, Lender will
determine the Allocated Loan Amount for any individual Property as of the date Lender received notice of the prepayment from Borrower. 

“ALTA” means American Land Title Association, or any successor thereto. 

“Ancillary Collateral” means the Collateral under the Borrower TRS Security Agreement, the Equity Owner Security Agreement,
the Assignment of Management Agreement and the Collateral (other than to the extent related to the Properties) under the Borrower Security Agreement. 

  
 2 

 “Annual Budget” means the operating budget, including all planned Capital
Expenditures, for the Properties prepared by Borrower in accordance with Section 4.3.2 for the applicable calendar year, prepared on a
month-by-month basis. 
 “Anti-Money Laundering
Laws” has the meaning set forth in Section 4.1.19. 
 “Approved Annual Budget”
has the meaning set forth in Section 4.3.2. 
 “Approved Capital Expenditures” means Capital
Expenditures incurred by Borrower and either (i) if no Cash Sweep Period is continuing, included in the Annual Budget or, if during a Cash Sweep Period, in an Approved Annual Budget or (ii) approved by Lender, which approval shall not be
unreasonably withheld, conditioned or delayed. For the avoidance of doubt, any budgeted Capital Expenditure amount for a calendar month may be carried forward if unused in such calendar month; provided, however, no such
unused amount may be carried over from the last calendar month of any Approved Annual Budget to the first calendar month of the next Approved Annual Budget. 

“Approved Extraordinary Expense” has the meaning set forth in Section 6.6.4. 

“Approved Rating Agencies” means each of the nationally-recognized statistical rating agencies which has been approved by
Lender and designated by Lender to assign a rating to the Securities. 
 “Assignment of Management Agreement” means an
Assignment of Management Agreement and Subordination of Management Fees among Lender, Borrower and Manager, substantially in the form delivered on the Closing Date by Borrower, Existing Manager and Lender, as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time. 
 “Available Cash” has the meaning set forth in
Section 2.7.2(k). 
 “Award” means any compensation paid by any Governmental Authority in connection
with a Condemnation. 
 “Bankruptcy Action” means, with respect to any Person: 

(i)    such Person shall fail generally to pay its debts as they come due, or shall make a general assignment for the
benefit of creditors; or any case or other proceeding shall be instituted by such Person seeking to adjudicate it as bankrupt or insolvent, or seeking liquidation, reorganization, debt arrangement, dissolution, winding up, or composition or
readjustment of debts of it or its debts under the Bankruptcy Code; or such Person shall take any corporate, limited partnership or limited liability company action to authorize any of such actions; or 

(ii)    a case or other proceeding shall be commenced, without the application or consent of such Person in any court
seeking the liquidation, reorganization, debt arrangement, 

  
 3 

 
dissolution, winding up, or composition or readjustment of debts of such Person, the appointment of a trustee, receiver, custodian, liquidator, assignee, sequestrator or the like for such Person
or all or substantially all of its assets, or any similar action with respect to such Person under the Bankruptcy Code, and (A) such case or proceeding shall continue undismissed, or unstayed and in effect, for a period of sixty
(60) consecutive days or (B) an order for relief in respect of such Person shall be entered in such case or proceeding or a decree or order granting such other requested relief shall be entered. 

“Bankruptcy Code” means Title 11 of the United States Code, 11 U.S.C. §101, et seq., as the same may be
amended from time to time, and any successor statute or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign laws relating to bankruptcy, insolvency or creditors’ rights or any other
Federal, state, local or foreign bankruptcy or insolvency law. 
 “Blocked Account Control Agreement” means the Cash
Management Agreement among Borrower, Cash Management Account Bank and Lender providing for the exclusive control of the Cash Management Account and all other Subaccounts by Lender, substantially in the form of Exhibit A or such other form as
may be reasonably acceptable to Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

“Borrower” has the meaning set forth in the introductory paragraph hereto, together with its successors and permitted
assigns. 
 “Borrower Security Agreement” means that certain Security Agreement, dated as of the Closing Date,
executed by Borrower in favor of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

“Borrower’s Operating Account” has the meaning set forth in Section 4.1.15. 

“Borrower TRS” means HOME TRS IV, LLC, a wholly-owned Delaware limited liability company, subsidiary of Borrower that is
treated for U.S. federal income tax purposes as a “taxable REIT subsidiary”. 
 “Borrower TRS Guaranty” means
that certain Guaranty (Borrower TRS), dated as of the Closing Date, executed by Borrower TRS in favor of Lender in respect of this Agreement. 

“Borrower TRS Security Agreement” means that certain Security Agreement (Borrower TRS), dated as of the Closing Date,
executed by Borrower TRS in favor of Lender in respect of this Agreement. 
 “Borrower TRS’s Permitted Indebtedness”
has the meaning set forth in Section 4.2.2. 
 “BPO Value” means, with respect to any Property,
the “as is” value for such Property set forth in a Broker Price Opinion obtained by Lender with respect to a Property. 

“Broker Price Opinion” means a broker price opinion obtained by Lender. 

  
 4 

 “Business Day” means any day other than a Saturday, Sunday or any other day on
which national banks in New York, New York, the State of Texas or the place of business of any Servicer or the financial institution that maintains any collection account for or on behalf of any Servicer or any Reserve Funds or the Federal Reserve
Bank of New York are not open for business. 
 “Calculation Date” means the last day of each calendar quarter during the
Term, commencing with the calendar quarter ended December 31, 2017. 
 “Capital Expenditure Funds” has the
meaning set forth in Section 6.3.1. 
 “Capital Expenditure Subaccount” has the meaning
set forth in Section 6.3.1. 
 “Capital Expenditures” means, for any period, the amount expended
for items capitalized under GAAP (including expenditures for building improvements, major repairs, and leasing commissions). 

“Carry-Over Property” means, as of any date of determination, a Property that is occupied by a Carry-Over Tenant at such date
of determination, including any TIP Property. 
 “Carry-Over Tenant” means, as of any date of determination, one or more
individuals who, at the time of acquisition of a Property by the Borrower, occupied such Property, or, the lessee on a TIP Lease. 

“Cash Collateral Floor” has the meaning set forth in Section 6.6.2. 

“Cash Collateral Funds” has the meaning set forth in Section 6.6.1. 

“Cash Collateral Subaccount” has the meaning set forth in Section 6.6.1. 

“Cash Management Account” has the meaning set forth in Section 2.7.1(a). 

“Cash Management Account Bank” means the Eligible Institution selected by Lender to maintain the Cash Management Account.

 “Cash Sweep Period” shall commence upon the occurrence of (i) an Event of Default or (ii) the commencement of
a Low Debt Yield Period; and shall end if, (A) with respect to a Cash Sweep Period continuing pursuant to clause (i), the Event of Default commencing the Cash Sweep Period has been cured and such cure has been accepted by Lender (and no
other Event of Default is then continuing) or (B) with respect to a Cash Sweep Period continuing due to clause (ii), the Low Debt Yield Period has ended pursuant to the terms hereof. 

“Casualty” has the meaning set forth in Section 5.2. 

“Casualty and Condemnation Funds” has the meaning set forth in Section 6.4. 

“Casualty and Condemnation Subaccount” has the meaning set forth in Section 6.4. 

“Casualty Consultant” has the meaning set forth in Section 5.4(d)(iii). 

  
 5 

 “Casualty Retainage” has the meaning set forth in
Section 5.4(d)(iv). 
 “Casualty Threshold Amount” means, with respect to all Casualties
arising from any single Casualty event, an amount equal to two percent (2%) of the Outstanding Principal Balance as of the date of such Casualty Event. 

“Closing Date” means the date of the funding of the Loan. 

“Closing Date Debt Yield” means 7.51%. 

“Closing Date GRC Certificate” means a certificate from GRC in substantially the form of Exhibit E executed and
delivered on the Closing Date without any material exceptions. 
 “Code” means the Internal Revenue Code of 1986, as
amended. 
 “Collateral” means, collectively, all of the real, personal and mixed property in which Liens are purported to
be granted pursuant to the Collateral Documents as security for the Obligations. 
 “Collateral Assignment of Leases and
Rents” means a Collateral Assignment of Leases and Rents for each Property or for multiple Properties located within the same county or parish, dated as of the Closing Date (or, in connection with a Property which is a Substitute Property,
dated as of the date of the substitution), executed and delivered by Borrower, constituting an assignment of the Lease or the Leases, as applicable, and the proceeds thereof as Collateral for the Loan, as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time. The Collateral Assignment of Leases and Rents may be included as part of the Mortgage for such Property or Properties. 

“Collateral Documents” means the Borrower Security Agreement, the Equity Owner Security Agreement, the Borrower TRS Security
Agreement, the Blocked Account Control Agreement, each Deposit Account Control Agreement, each Assignment of Management Agreement, each Mortgage Document and all other instruments, documents and agreements delivered by any Loan Party pursuant to
this Agreement or any of the other Loan Documents in order to grant to Lender a Lien on any real, personal or mixed property of that Loan Party as security for the Obligations, as the same may be (and each of the foregoing defined terms shall refer
to such documents as they may be) amended, restated, replaced, supplemented or otherwise modified from time to time. 

“Collections” means, without duplication, with respect to any Property, all Rents, Insurance Proceeds (whether or not Lender
elects to treat any such Insurance Proceeds as business or rental interruption Insurance Proceeds pursuant to Section 5.4(d) but subject to the rights of Borrower to retain and/or apply any such Insurance Proceeds under
Article V), Condemnation Proceeds (subject to the rights of Borrower to retain and/or apply any such Condemnation Proceeds under Article V), Net Transfer Proceeds, interest on amounts on deposit in the Cash Management Account and on
the Reserve Funds, amounts paid by Borrower (or Borrower TRS) to the Cash Management Account pursuant to this Agreement, and all other payments received with respect to such Property and all “proceeds” (as defined in Section 9-102 of the UCC) of such Property. For the avoidance of doubt, Collections shall not include security deposits that have not been forfeited by the applicable Tenant. 

  
 6 

 “Companion Seller Financing” has the meaning set forth in the recitals. 

“Compliance Certificate” means the certificate in the form attached hereto as Exhibit B. 

“Concessions” means, for any period of determination, the concessions (other than free Rent) provided with respect to the
Properties by Borrower, as determined in accordance with GAAP. 
 “Condemnation” means a temporary or permanent taking by
any Governmental Authority as the result or in lieu or in anticipation of the exercise of the right of condemnation or eminent domain, of all or any part of any Property, or any interest therein or right accruing thereto, including any right of
access thereto or any change of grade affecting such Property or any part thereof. 
 “Condemnation Proceeds” has the
meaning set forth in the definition of “Net Proceeds”. 
 “Connection Income Taxes” means Other Connection Taxes
that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes. 
 “Contest
Security” means any security delivered to Lender by Borrower under Section 4.1.3 or Section 4.4.5. 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of management, policies
or activities of a Person, whether through ownership of voting securities, by contract or otherwise. “Controlled” and “Controlling” shall have correlative meanings. 

“Covered Rating Agency Information” has the meaning set forth in Section 9.15(g). 

“Cure Period” means, with respect to the failure of any Property to qualify as an Eligible Property if such failure is
reasonably susceptible of cure, except for a failure under Section 3.2.20, a period of thirty (30) days after the earlier of actual knowledge of such condition by a Responsible Officer of Borrower or notice thereof by
Lender to Borrower; provided that, if Borrower is diligently pursuing such cure during such thirty (30) day period and such failure is susceptible of cure but cannot reasonably be cured within such thirty (30) day period,
then such cure period shall be extended for another ninety (90) days so long as Borrower continues to diligently pursue such cure and, provided, further, that if the Obligations have been accelerated pursuant to
Section 7.1(b), then the cure period hereunder shall be reduced to zero (0) days. If any failure of any Property to qualify as an Eligible Property is not reasonably susceptible of cure, then no cure period shall be
available. If any failure of any Property to qualify as an Eligible Property is due to a Voluntary Action, then no cure period shall be available. 

  
 7 

 “Cut-Off Date” means, for purposes of
this Agreement, the Closing Date. 
 “Damages” to a Person means any and all liabilities, obligations, losses, demands,
damages, penalties, assessments, actions, causes of action, judgments, proceedings, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including reasonable attorneys’ fees and other costs of defense and/or
enforcement whether or not suit is brought), fines, charges, fees, settlement costs and disbursements imposed on, incurred by or asserted against such party, whether based on any federal, state, local or foreign laws, statutes, rules or regulations
(including securities and commercial laws, statutes, rules or regulations and environmental laws), on common law or equitable cause or on contract or otherwise; provided, however, that “Damages” shall not
include special, consequential or punitive damages, except to the extent imposed upon Lender by one or more third parties. 

“Debt” means the outstanding principal amount set forth in, and evidenced by, this Agreement and the Note together with all
interest accrued and unpaid thereon and all other sums (including, but not limited to, any Yield Maintenance Payment if applicable)] due to Lender in respect of the Loan under the Note, this Agreement, the Mortgage Documents, the Environmental
Indemnity or any other Loan Document. 
 “Debt Service” means, with respect to any period of determination, the interest
payments due under the Note for such period. 
 “Debt Service Coverage Ratio” means, as of any date of determination, a
ratio in which: 
 (i)    the numerator is the Underwritten Net Cash Flow calculated for the twelve (12) month
period ending on the Maturity Date, as applicable; and 
 (ii)    the denominator is the aggregate debt service for the
twelve (12) month period following such date of determination, calculated as the product of (1) the Outstanding Principal Balance as of such date and (2) the Interest Rate. 

“Debt Yield” means, as of any date of determination, a fraction expressed as a percentage in which: 

(i)    the numerator is the Underwritten Net Cash Flow; and 

(ii)    the denominator is the Outstanding Principal Balance. 

“Default” means the occurrence of any event hereunder or under any other Loan Document which, but for the giving of notice or
passage of time, or both, would be an Event of Default. 
 “Default Rate” means a rate per annum equal to the lesser of
(i) the Maximum Legal Rate or (ii) three percent (3%) above the Interest Rate. 
 “Deposit Account Control
Agreement” means the Deposit Account Control Agreement dated the Closing Date among Borrower, Lender, Agent, and a Rent Deposit Bank, providing for springing control by Lender, substantially in the form set forth as Exhibit C
attached hereto or such other form as may be reasonably acceptable to Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

  
 8 

 “Disqualified Property” means any Property that fails to constitute an Eligible
Property (after the lapse of any applicable Cure Period). 
 “Eligibility Funds” has the meaning set forth in
Section 6.5.1. 
 “Eligibility Reserve Subaccount” has the meaning set forth in
Section 6.5.1. 
 “Eligible Account” means a separate and identifiable account from all other funds
held by the holding institution that is an account or accounts (or subaccounts thereof) maintained with a federal or state-chartered depository institution or trust company which complies with the definition of Eligible Institution. An Eligible
Account will not be evidenced by a certificate of deposit, passbook or other instrument. 
 “Eligible Institution” means:

 (i)    PNC Bank, National Association so long as PNC Bank, National Association’s long term
unsecured debt or deposit rating shall be at least “A2” from Moody’s and the equivalent by KBRA (if then rated by KBRA) (if the deposits are to be held in the applicable account for more than thirty (30) days) or PNC Bank,
National Association’s short term deposit or short term unsecured debt rating shall be at least “P-1” from Moody’s and the equivalent by KBRA (if then rated by KBRA) (if the deposits are to
be held in the applicable account for thirty (30) days or less); or 
 (ii)    a depository
institution or trust company insured by the Federal Deposit Insurance Corporation the short term unsecured debt obligations or commercial paper of which are rated at least A-1 by S&P, P-1 by Moody’s, and F-1+ by Fitch in the case of accounts in which funds are held for thirty (30) days or less or, in the case of letters of credit or accounts in
which funds are held for more than thirty (30) days, the long term unsecured debt obligations of which are rated at least (A) “AA” by S&P, (B) “AA“ and/or “F1+” (for securities) and/or “AAAmmf” (for
money market funds), by Fitch and (C) “Aa2” by Moody’s; 
 provided that, Wells Fargo Bank, National Association
shall be an Eligible Institution (x) with respect to Rent Deposit Accounts and Security Deposit Accounts only, so long as Wells Fargo Bank, National Association’s short term unsecured debt or deposit rating shall be at least “P-1” from Moody’s and the equivalent by KBRA (if then rated by KBRA) and (y) with respect to the Borrower’s Operating Account. 

“Eligible Lease” means, as of any date of determination, a Lease for a Property that satisfies all of the following: 

(i)    the form of Lease reflects customary market standard terms; 

  
 9 

 (ii)    the Lease is entered into on an arms-length basis
without payment support by any Borrower or its Affiliates (provided, that any incentives offered to Tenants shall not be deemed to constitute such payment support); 

(iii)    the Lease is to a bona fide third-party Tenant; 

(iv)    the Lease is in compliance with all applicable Legal Requirements in all material respects; and

 (v)     the Lease is consistent with the Manager’s internal leasing guidelines. 

“Eligible Property” means, as of any date of determination, a Property that is in compliance with each of the Property
Representations and each of the Property Covenants; provided, that for purposes of determining whether a Property is in compliance with the representation in the last sentence of Section 3.2.8 or the last
sentence of Section 3.2.15, such sentence shall be read as if it was not qualified by Borrower’s knowledge. 

“Eligible Tenant” means, as of any date of determination, a bona fide third party lessee of a Property who satisfies each of
the following criteria: 
 (i)    the Tenant is not subject to an ongoing Bankruptcy Action as of the
date such Tenant is initially screened by Borrower prior to the execution of a Lease by such Tenant; 

(ii)    at the time of such initial screening, the Tenant is not listed on any Government List; and 

(iii)    the Tenant otherwise generally conforms to Borrower’s internal tenant leasing criteria in all
material respects at the time such Tenant is screened by Borrower. 
 “Embargoed Person” has the meaning set forth in
Section 4.2.16. 
 “Environmental Indemnity” means that certain Environmental Indemnity
Agreement, dated as of the Closing Date, executed by Borrower in connection with the Loan for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

“Equity Interests” means, with respect to any Person, shares of capital stock, partnership interests, membership interests,
beneficial interests or other equity ownership interests in such Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest from such Person. 

“Equity Owner” means HOME SFR Equity Owner IV, LLC, a Delaware limited liability company. 

“Equity Owner Guaranty” means that certain Equity Owner Guaranty, dated as of the Closing Date, executed by Equity Owner in
favor of Lender in respect of this Agreement, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

  
 10 

 “Equity Owner Security Agreement” means that certain Equity Owner Security
Agreement, dated as of the Closing Date, executed by Equity Owner in favor of Lender in respect of this Agreement , as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

“Equity Owner’s Permitted Indebtedness” has the meaning set forth in Section 4.2.2.

 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, or any successor
statute. 
 “ERISA Affiliate” means any corporation or trade or business that is a member of any group of organizations
(i) described in Section 414(b) or (c) of the Code of which another entity is a member or (ii) described in Section 414(m) or (o) of the Code of which another entity is a member, except that this clause (ii) shall
apply solely for purposes of potential liability under Section 302(b) of ERISA and Section 412(b) of the Code and the lien created under Section 303(k) of ERISA and Section 430(k) of the Code. 

“ERISA Event” means (i) the failure to pay a minimum required contribution or installment to a Plan on or before the due
date provided under Section 430 of the Code or Section 303 of ERISA, (ii) the filing of an application with respect to a Plan for a waiver of the minimum funding standard under Section 412(c) of the Code or Section 302(c) of
ERISA, (iii) the failure of a Loan Party or any of its ERISA Affiliates to pay a required contribution or installment to a Multiemployer Plan on or before the applicable due date, (iv) any officer of any Loan Party or any of its ERISA
Affiliates knows or has reason to know that a Plan is in “at risk” status within the meaning of Section 430(i) of the Code or Section 303(i) of ERISA or (v) the occurrence of a Plan Termination Event. 

“ERISA Plan” has the meaning set forth in Section 3.1.9(a). 

“Event of Default” has the meaning set forth in Section 7.1(a). 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Excluded Taxes” means any of the following Taxes imposed on or with respect to Lender or required to be withheld or deducted
from a payment to Lender, (i) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (A) imposed as a result of Lender being organized under the laws of, or having its
principal office or its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (B) that are Other Connection Taxes, (ii) United States federal withholding Taxes imposed on
amounts payable to or for the account of such Lender with respect to an applicable interest in the Loan pursuant to a law in effect on the date on which (A) such Lender acquires such interest in the Loan or (B) such Lender changes its
lending office, except in each case to the extent that, pursuant to Section 2.8, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or
to such Lender immediately before it changed its lending office, (iii) Taxes attributable to such Lender’s failure to comply with Section 2.8(e), and (iv) any United States federal withholding Taxes imposed
under FATCA. 

  
 11 

 “Existing Management Agreement” means that certain Property Management Services
Agreement, dated as of the Closing Date, between Borrower and Existing Manager, pursuant to which Existing Manager provides management and other services with respect to the Properties, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time (and for the avoidance of doubt shall include that certain Side Letter between Borrower and Existing Manager dated as of the Closing Date). 

“Existing Manager” means Main Street Renewal, LLC, a Delaware limited liability company. 

“Extraordinary Expense” has the meaning set forth in Section 6.6.4. 

“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version
that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code. 

“Fitch” means Fitch, Inc. 

“Fixture Filing” means, with respect to any jurisdiction in which any Property or Properties are located in which a separate,
stand alone fixture filing is required or generally recorded or filed pursuant to the local law or custom (as reasonably determined by Lender), a Uniform Commercial Code financing statement (or other form of financing statement required in the
jurisdiction in which the applicable Property or Properties are located) recorded or filed in the real estate records in which the applicable Property or Properties are located. 

“Foreign Lender” means a Lender that is not a U.S. Person. 

“Foreign Plan” means any “employee benefit plan” as defined in Section 3(3) of ERISA that (i) neither is
subject to ERISA nor is a governmental plan within the meaning of Section 3(32) of ERISA and that is maintained, or contributed to, by a Loan Party or any of its ERISA Affiliates and (ii) is mandated by a government other than the United
States (other than a state within the United States or an instrumentality thereof) for employees of a Loan Party or any of its ERISA Affiliates. 

“Fully Condemned Property” has the meaning set forth in Section 5.3(b). 

“GAAP” means generally accepted accounting principles in the United States of America as of the date of the applicable
financial report. 
 “Government List” means (i) the Annex to EO13224, (ii) OFAC’s most current list of
“Specifically Designated National and Blocked Persons” (which list may be published from time to time in various mediums including, but not limited to, the OFAC website, http://www.treasury.gov/ofac/downloads/t11sdn.pdf or
any successor website or 

  
 12 

 
webpage) and (iii) any other list of terrorists, terrorist organizations or narcotics traffickers maintained by a Governmental Authority that Lender notifies Borrower in writing is now
included in “Government List”. 
 “Governmental Authority” means any court, board, agency, commission,
office or other authority of any nature whatsoever for any governmental unit (foreign, federal, state, county, district, municipal, city or otherwise) whether now or hereafter in existence. 

“GPR” means, as of any date of determination, the sum of (i) the annualized in place Rents under bona fide Eligible
Leases for the Properties and/or Leases with Carry-Over Tenants as of such date and (ii) the annualized market rents for Properties that are vacant as of such date. For purposes of clause (ii) market rents shall be determined
by Borrower, or using data provided by Manager or, if reasonably required by Lender, by RentRange or any other nationally recognized rental rate reporting service selected by Lender in its reasonable discretion (such nationally recognized rental
rate reporting service’s fee to be at Borrower’s sole cost and expense); provided that Borrower may object to any such determination by Manager, RentRange or other nationally recognized rental rate reporting service by
delivering written notice to Lender within five (5) Business Days of any such determination and, in such event, the market rents so objected to shall be as determined by an independent broker opinion of market rent obtained by Lender at
Borrower’s sole cost and expense. 
 “GRC” means Green River Capital, LLC. 

“HOA” means a home owners or condominium association, board, corporation or similar entity with authority to create a Lien on
a Property as a result of the non-payment of HOA Fees that are payable with respect to such Property. 

“HOA Fees” means all homeowner’s and condominium owner’s association dues, fees, assessments and impositions with
respect to a Property, and any other charges levied or assessed or imposed against a Property, or any part thereof, by an HOA. 

“HOA Property” means a Property which is subject to an HOA. 

“Improvements” means the buildings, structures, fixtures, additions, enlargements, extensions, modifications, repairs,
replacements and improvements now or hereafter erected or located on a Property. 
 “Indebtedness” means, for any Person,
without duplication: (i) all indebtedness of such Person for borrowed money, for amounts drawn under a letter of credit, or for the deferred purchase price of property for which such Person or its assets is liable, (ii) all unfunded
amounts under a loan agreement, letter of credit, or other credit facility for which such Person would be liable if such amounts were advanced thereunder, (iii) all amounts required to be paid by such Person as a guaranteed payment to partners
or a preferred or special dividend, including any mandatory redemption of shares or interests, (iv) all indebtedness guaranteed by such Person, (v) all obligations under leases that constitute capital leases for which such Person is
liable, (vi) all obligations of such Person under interest rate swaps, caps, floors, collars and other interest hedge agreements, in each case for which such Person is liable or its assets are liable, whether such Person (or its assets) is
liable contingently or otherwise, as obligor, guarantor or 

  
 13 

 
otherwise, or in respect of which obligations such Person otherwise assures a creditor against loss and (vii) any other contractual obligation for the payment of money which is not settled
within thirty (30) days of the incurrence of such obligation. 
 “Indemnified Persons” has the meaning set
forth in Section 9.15(a). 
 “Indemnified Taxes” means (i) Taxes, other than Excluded Taxes,
imposed on or with respect to any payment made by or on account of any obligation of Borrower under any Loan Document and (ii) to the extent not otherwise described in clause (i), Other Taxes. 

“Independent” means, when used with respect to any Person, a Person who: (i) does not have any direct financial interest
or any material indirect financial interest in Borrower or in any Affiliate of Borrower, (ii) is not connected with Borrower or any Affiliate of Borrower as an officer, employee, promoter, underwriter, trustee, partner, member, manager,
creditor, director, supplier, customer or Person performing similar functions and (iii) is not a member of the immediate family of a Person defined in clauses (i) or (ii) above. 

“Independent Accountant” means (i) a firm of nationally recognized, certified public accountants which is Independent
and which is selected by Borrower or (ii) such other certified public accountant(s) selected by Borrower, which is Independent and reasonably acceptable to Lender. 

“Independent Director” means an individual who has prior experience as an independent director, independent manager or
independent member with at least three (3) years of employment experience and who is provided by CT Corporation, Corporation Service Company, National Registered Agents, Inc., Wilmington Trust Company, Stewart Management Company, Lord
Securities Corporation or, if none of those companies is then providing professional Independent Directors, another nationally-recognized company reasonably approved by Lender, in each case that is not an Affiliate of Borrower and that provides
professional Independent Directors and other corporate services in the ordinary course of its business, and which individual is duly appointed as an Independent Director and is not, and has never been, and will not while serving as Independent
Director be, any of the following: 
 (i)    a member, partner, equityholder, manager, director, officer or employee of
Borrower or any of its equityholders or Affiliates (other than as an Independent Director of Borrower or an Affiliate of Borrower that is not in the direct chain of ownership of Borrower and that is required by a creditor to be a single purpose
bankruptcy remote entity, provided that such Independent Director is employed by a company that routinely provides professional Independent Directors or managers in the ordinary course of its business); 

(ii)    a creditor, supplier or service provider (including provider of professional services) to Borrower or any of its
equityholders or Affiliates (other than a nationally-recognized company that routinely provides professional Independent Directors and other corporate services to Borrower or any of its Affiliates in the ordinary course of its business); 

(iii)    a family member of any such member, partner, equityholder, manager, director, officer, employee, creditor,
supplier or service provider; or 

  
 14 

 (iv)    a Person that controls (whether directly, indirectly or otherwise)
any of clauses (i), (ii) or (iii) above. 
 A natural person who otherwise satisfies the foregoing definition and
satisfies clause (i) by reason of being the Independent Director of a “special purpose entity” affiliated with Borrower shall be qualified to serve as an Independent Director of Borrower, provided that the fees that such
individual earns from serving as an Independent Director of Affiliates of Borrower in any given year constitute in the aggregate less than five percent (5%) of such individual’s annual income for that year. For purposes of this paragraph, a
“special purpose entity” is an entity, whose organizational documents contain restrictions on its activities and impose requirements intended to preserve such entity’s separateness that are substantially similar to those contained in
the definition of Special Purpose Entity of this Agreement. 
 “Individual Material Adverse Effect” means, in respect of a
Property, any event or condition that has a material adverse effect on (i) the profitability, value, use, operation, leasing or marketability of such Property or results in any material liability to, claim against or obligation of Lender or any
Loan Party or (ii) the enforceability, validity, perfection or priority of the lien of the Collateral Documents with respect to such Property. 

“Initial Principal Balance” means $114,201,225.43. 

“Insolvency Opinion” means that certain non-consolidation opinion letter dated the
Closing Date delivered by Hunton & Williams LLP in connection with the Loan. 
 “Insurance Funds” has the
meaning set forth in Section 6.2.1. 
 “Insurance Premiums” has the meaning set forth
in Section 5.1.1(d). 
 “Insurance Proceeds” has the meaning set forth in the definition of
“Net Proceeds”. 
 “Insurance Subaccount” has the meaning set forth in
Section 6.2.1. 
 “Interest Period” means, in connection with the calculation of interest accrued
with respect to any specified Payment Date, including the Maturity Date, the period commencing on and including the fifteenth (15th) day of the prior calendar month and ending on and including the fourteenth (14th) day of the calendar month in which
such Payment Date occurs; provided, however, the initial Interest Period shall be the period commencing on the Closing Date, and ending on and including the fourteenth (14th) day of the succeeding calendar month. 

“Interest Rate” means, with respect to each Interest Period, a rate of four percent (4.00%) per annum. 

“IRS” means the United States Internal Revenue Service. 

“KBRA” means Kroll Bond Rating Agency, Inc. 

“Lease” means a bona fide written lease, sublease, letting, license, concession or other agreement pursuant to which any
Person is granted a possessory interest in, or right to use or 

  
 15 

 
occupy all or any portion of any space in any Property by or on behalf of Borrower, and (i) every modification, amendment or other agreement relating to such lease, sublease or other
agreement entered into in connection with such lease, sublease or other agreement, and (ii) every guarantee of the performance and observance of the covenants, conditions and agreements to be performed and observed by the Tenant. 

“Legal Requirements” means, with respect to each Property and the Properties as a whole, all material federal, state, county,
municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities affecting such Property or any part thereof, or the construction, use, alteration or operation
thereof, or any part thereof, whether now or hereafter enacted and in force, and all permits, licenses and authorizations and regulations relating thereto, and all covenants, agreements, restrictions and encumbrances contained in any instruments,
either of record or known to Borrower, at any time in force affecting Borrower, such Property or any part thereof, including, without limitation, any which may (i) require repairs, modifications or alterations in or to such Property or any part
thereof, or (ii) in any way limit the use and enjoyment thereof. 
 “Lender” has the meaning set forth in the
introductory paragraph hereto, together with its successors and assigns. 
 “Lending Parties” has the meaning set forth in
Section 9.18(a). 
 “Lien” means any mortgage, deed of trust, lien (statutory or otherwise),
pledge, hypothecation, easement, restrictive covenant, preference, assignment, security interest, or any other encumbrance, charge or transfer of, or any agreement to enter into or create any of the foregoing, on or affecting all or any portion of
any Collateral or any interest therein, or any direct interest in any Loan Party, including any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, the
filing of any financing statement, and mechanic’s, materialmen’s and other similar liens and encumbrances. 

“Loan” means the Loan made by Lender to Borrower pursuant to this Agreement. 

“Loan Documents” means, collectively, this Agreement, the Note, each Management Agreement, the Parent Guaranty, the Equity
Owner Guaranty, the Environmental Indemnity, each Collateral Document, the Borrower TRS Guaranty and all other agreements, instruments and documents delivered pursuant thereto or in connection therewith, as the same may be (and each of the foregoing
defined terms shall refer to such documents as they may be) amended, restated, replaced, supplemented or otherwise modified from time to time. 

“Loan Party” means Borrower, Equity Owner and Borrower TRS. 

“London Business Day” means any day other than a Saturday, Sunday or any other day on which commercial banks in London,
England are not open for business. 
 “Low Debt Yield Period” shall commence if, as of any Calculation Date, the Debt Yield
is less than eighty-five percent (85%) of the Closing Date Debt Yield, and shall end if (i) the Properties have achieved, as of any two succeeding consecutive Calculation Dates, a Debt Yield 

  
 16 

 
of at least eighty-five percent (85%) of the Closing Date Debt Yield or (ii) immediately (without waiting for two succeeding consecutive Calculation Dates) upon Borrower prepaying the
principal amount of the Loan in an amount sufficient to cause the Debt Yield to be equal to or in excess of eighty-five percent (85%) of the Closing Date Debt Yield (each a “Low Debt Yield Cure Prepayment”). 

“Major Contract” means (i) any management agreement relating to the Properties or the Loan Parties to which a Loan Party
is a party, (ii) any agreement between any Loan Party and any Affiliate of any Relevant Party (other than any Loan Document) and (iii) any brokerage, leasing, cleaning, maintenance, service or other contract or agreement of any kind (other
than Leases) relating to the Properties, in each case involving payment or expense of more than One Million Dollars ($1,000,000) during any twelve (12) month period, unless cancelable on thirty (30) days or less notice without requiring
payment of termination fees or payments of any kind (other than amounts that accrued prior to the termination date). 
 “Management
Agreement” means (i) the Existing Management Agreement or (ii) a Replacement Management Agreement pursuant to which a Qualified Manager is managing one or more of the Properties in accordance with the terms and provisions of this
Agreement, in each case, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

“Management Fee Cap” means, with respect to each calendar month, an amount equal to six and three quarters percent (6.75%) of
gross Rents collected with respect to the Properties for such calendar month, provided, that for purposes of determining gross Rents collected, collections of Advance Rent shall be allocated to the applicable calendar month set forth
in the applicable Advance Rent Disbursement Schedule. 
 “Manager” means Existing Manager or, if the context requires, a
Qualified Manager who is managing one or more of the Properties in accordance with the terms and provisions of this Agreement or pursuant to a Replacement Management Agreement. 

“Manager Default” means the occurrence of (a) any default by Manager to perform its duties or obligations under the
Existing Management Agreement or (b) any failure by Manager to timely deliver any Manager Report. 
 “Manager Report”
means any report, certificate, or certification required to be delivered by Manager pursuant to Section 4.5 hereof. 

“Margin Stock” has the meaning set forth in Section 3.1.20. 

“Material Action” has the meaning set forth in the definition of “Special Purpose Entity”. 

“Material Adverse Effect” means a material adverse effect on (i) the property, business, operations or financial
condition of the Loan Parties taken as a whole, (ii) the use, operation or value of the Properties, taken as a whole, (iii) the ability of Borrower to repay the principal and interest of the Loan when due or to satisfy any of
Borrower’s other obligations under the Loan Documents, or (iv) the enforceability or validity of any Loan Document, the perfection or priority of any Lien created under any Loan Document or the rights, interests and remedies of Lender
under any Loan Document. 

  
 17 

 “Maturity Date” means the Payment Date occurring in December 2022, or such
earlier date on which the final payment of principal of the Note becomes due and payable as therein or herein provided, whether at such stated maturity date, by declaration of acceleration, or otherwise. 

“Maximum Legal Rate” means the maximum nonusurious interest rate, if any, that at any time or from time to time may be
contracted for, taken, reserved, charged or received on the indebtedness evidenced by the Note and as provided for herein or the other Loan Documents, under the laws of such state or states whose laws are held by any court of competent jurisdiction
to govern the interest rate provisions of the Loan. 
 “Minimum Disbursement Amount” means $100,000. 

“Monthly Budgeted Amount” has the meaning set forth in Section 4.3.2. 

“Monthly Debt Service Payment Amount” means, for each Payment Date, an amount equal to the amount of interest which is then
due on the Loan in the aggregate for the Interest Period during which such Payment Date occurs. 
 “Moody’s” means
Moody’s Investors Service, Inc. 
 “Mortgage” means a Mortgage or Deed of Trust or Deed to Secure Debt, as applicable,
for each Property or for multiple Properties located within the same county or parish, dated as of the Closing Date (or, in connection with a Property which is a Substitute Property, dated as of the date of the substitution), executed and delivered
by Borrower, constituting a Lien on the Improvements and the Property or Properties, as applicable, as Collateral for the Obligations, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

“Mortgage Documents” means the Mortgages, the Collateral Assignments of Leases and Rents and, if any, the Fixture Filings.

 “Multiemployer Plan” means a plan within the meaning of Section 414(f) of the Code or Section 3(37) of ERISA
to which contributions are required to be made by any Loan Party or any of its ERISA Affiliates or to which any such entity has any liability. 

“Net Assets” means, with respect to any Person, the difference between (i) such Person’s assets determined in
accordance with GAAP, but excluding accumulated depreciation, and (ii) such Person’s liabilities determined in accordance with GAAP. 

“Net Proceeds” means (i) the net amount of all insurance proceeds received by Lender pursuant to
Section 5.1.1(a)(i) and (iii) as a result of damage to or destruction of a Property, after deduction of its reasonable
out-of-pocket costs and expenses (including, but not limited to, reasonable counsel fees), if any, in collecting same (“Insurance Proceeds”), or
(ii) the net amount of an Award, after deduction of Lender’s reasonable out-of-pocket costs and expenses (including, but not limited to, reasonable counsel
fees), if any, in collecting same (“Condemnation Proceeds”), whichever the case may be. 

  
 18 

 “Net Proceeds Deficiency” has the meaning set forth in
Section 5.4(d)(vi). 
 “Net Transfer Proceeds” means, with respect to the Transfer of any Property,
the gross sales price for such Property (including any earnest money, down payment or similar deposit included in the total sales price paid by the purchaser), less Transfer Expenses. 

“Non-Conforming Property” means any Property that at any time during the
Representation Sunset Period (as defined in the Purchase Agreement) Borrower provides notice, in accordance with the Purchase Agreement, that such Property did not, on the Closing Date, satisfy any of the RESI Criteria or any of the RESI Specs.

 “Non-Property Taxes” means all Taxes other than Property Taxes. 

“Not-Borrower Funds” means funds deposited into the Rent Deposit Account by mistake
or otherwise that are not property of the Borrower or security deposits. 
 “Note” means, that certain Promissory Note in
respect of the Loan, dated the relevant date of an extension of credit under Section 2.1, made by the Borrower in favor of the Agent for the benefit of each Lender in proportion to its allocated portion of the Initial
Principal Balance, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

“Obligations” means, collectively, Borrower’s obligations for the payment of the Debt and the performance by the
Relevant Parties of the Other Obligations. 
 “OFAC” means the Office of Foreign Assets Control of the United States
Department of Treasury. 
 “Officer’s Certificate” means a certificate delivered to Lender by Borrower which is signed
by an authorized officer of Borrower. 
 “Operating Expenses” means, for any period, without duplication, all expenses
actually paid or payable by Borrower during such period in connection with the administration, operation, management, maintenance, repair and use of the Properties, determined on an accrual basis, and, except to the extent otherwise provided in this
definition, in accordance with GAAP. Operating Expenses specifically shall include, without duplication, (i) all operating expenses incurred in such period based on quarterly financial statements delivered to Lender in accordance with
Section 4.3.1(a), (ii) cost of utilities, inventories, and fixed asset supplies consumed in the operation of the Properties, (iii) fees payable to the Manager in an amount equal to the greater of (A) actual fees
paid to the Manager or (B) the Management Fee Cap, (iv) costs and fees of independent professionals (including, without limitation, legal, accounting, consultants and other professional expenses), technical consultants, operational experts
(including quality assurance inspectors) or other third parties retained to perform services required or permitted hereunder, (v) operational equipment and other lease payments to the extent constituting operating expenses under GAAP,
(vi) Property Taxes and HOA Fees, (vii) insurance premiums and (viii) Property 

  
 19 

 
maintenance expenses. Notwithstanding the foregoing, Operating Expenses shall not include (A) depreciation or amortization, (B) income taxes or other charges in the nature of income
taxes, (C) any expenses (including legal, accounting and other professional fees, expenses and disbursements) incurred in connection with the making of the Loan or the sale, exchange, transfer, financing or refinancing of all or any portion of
any Property or in connection with the recovery of Insurance Proceeds or Awards, (D) any loss that is covered by the Policies, including any portion of a loss that is subject to a deductible under the Policies, (E) Capital Expenditures,
(F) Debt Service, (G) expenses incurred in connection with the acquisition and initial leasing and renovation of Properties and other activities undertaken prior to such initial lease that do not constitute recurring operating expenses to
be paid by Borrower, including eviction of existing tenants, incentive payments to tenants and other similar expenses, (H) any item of expense which would otherwise be considered within Operating Expenses pursuant to the provisions above but is
paid directly by any Tenant under a Lease, (I) any service that is required to be provided by Manager pursuant to the Management Agreement without compensation or reimbursement (other than the management fee set forth in the Management
Agreement), (J) any expenses that relate to a Property from and after the release of such Property in accordance with Section 2.5, (K) bad debt expense with respect to Rents and lost Rents due to vacancies, (L) the
value of any free rent or other concessions provided with respect to the Properties, or (M) corporate overhead expenses incurred by Borrower’s Affiliates. 

“Other Connection Taxes” means Taxes imposed as a result of a present or former connection between Lender and the
jurisdiction imposing such Tax (other than connections arising from such Lender having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any
other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document). 

“Other Obligations” means (i) the performance of all obligations of Borrower contained herein; (ii) the performance
of each obligation of the Relevant Parties contained in any other Loan Document; and (iii) the performance of each obligation of the Relevant Parties contained in any renewal, extension, amendment, restatement, modification, consolidation,
change of, or substitution or replacement for, all or any part of this Agreement, the Note or any other Loan Document. 
 “Other
Receipts” for any period of determination, any actual receipts received by Borrower from sources other than Rents with respect to the Properties, to the extent they are properly included as operating income for such period in accordance
with GAAP (including maintenance recovery fees but, for the avoidance of doubt, excluding income from the Transfer of any Property). 

“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that
arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that
are Other Connection Taxes imposed with respect to an assignment. 

  
 20 

 “Outstanding Principal Balance” means, as of any date, outstanding principal
balance of the Loan. 
 “Parent” means Altisource Residential Corporation. 

“Parent Financial Covenant” means the requirement that Parent or any Qualified Transferee that executes and delivers a
replacement guaranty pursuant to Section 4.2.17(e) maintain Net Assets of not less than $300,000,000 (exclusive of Parent’s or such Qualified Transferee’s indirect interest in Borrower). 

“Parent Guaranty” means that certain Parent Guaranty, dated as of the Closing Date, executed by Parent in favor of Lender in
respect of this Agreement, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, pursuant to which the Parent provides a limited guaranty for certain bad acts. 

“Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act (USA PATRIOT ACT) of 2001, as the same may be amended from time to time, and corresponding provisions of future laws. 

“Patriot Act Offense” has the meaning set forth in Section 3.1.24(a). 

“Payment Date” means the ninth (9th) day of each calendar month during
the Term or, if such ninth day is not a Business Day, the immediately preceding Business Day; provided, that the first Payment Date shall be December 8, 2017. 

“PBGC” means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under
ERISA. 
 “Permitted Indebtedness” has the meaning set forth in Section 4.2.2. 

“Permitted Investments” means: 

(i)    obligations of, or obligations fully guaranteed as to payment of principal and interest by, the
United States or any agency or instrumentality thereof provided such obligations are backed by the full faith and credit of the United States including, without limitation, obligations of: the United States Treasury (all direct or fully guaranteed
obligations), the Farmers Home Administration (certificates of beneficial ownership), the General Services Administration (participation certificates), the United States Maritime Administration (guaranteed Title XI financing), the Small
Business Administration (guaranteed participation certificates and guaranteed pool certificates), the United States Department of Housing and Urban Development (local authority bonds) and the Washington Metropolitan Area Transit Authority
(guaranteed transit bonds); provided, however, that the investments described in this clause must (A) have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B) if rated by
S&P, must not have an “r” highlighter affixed to their rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move
proportionately with that index, and (D) such investments must not be subject to liquidation prior to their maturity; 

  
 21 

 (ii)    federal funds, unsecured certificates of deposit,
time deposits, bankers’ acceptances and repurchase agreements with maturities of not more than 365 days of any bank, (A) in the case of such investments with maturities of thirty (30) days or less, the short term obligations of which
are rated in the highest short term rating category by each Rating Agency (or, if not rated by all Approved Rating Agencies, rated by Moody’s in the highest short term rating category) and the long term obligations of which are rated at least
“A2” by Moody’s (or such lower rating for which Rating Agency Confirmation is received with respect to Moody’s), (B) in the case of such investments with maturities of three (3) months or less, but more than thirty
(30) days, the short term obligations of which are rated in the highest short term rating category by each Rating Agency (or, if not rated by all Approved Rating Agencies, rated by Moody’s in the highest short term rating category) and the
long term obligations of which are rated at least “A1” by Moody’s (or such lower rating for which Rating Agency Confirmation is received with respect to Moody’s), (C) in the case of such investments with maturities of six
(6) months or less, but more than three (3) months, the short term obligations of which are rated in the highest short term rating category by each Rating Agency (or, if not rated by all Approved Rating Agencies, rated by Moody’s in
the highest short term rating category) and the long term obligations of which are rated at least “Aa3” by Moody’s (or such lower rating for which Rating Agency Confirmation is received with respect to Moody’s), and (D) in
the case of such investments with maturities of more than six (6) months, the short term obligations of which are rated in the highest short term rating category by each Rating Agency (or, if not rated by all Approved Rating Agencies, rated by
Moody’s in the highest short term rating category) and the long term obligations of which are rated “Aaa” by Moody’s (or such lower rating for which Rating Agency Confirmation is received with respect to Moody’s);
provided, however, that the investments described in this clause must (1) have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (2) if rated by S&P, must not have an
“r” highlighter affixed to their rating, (3) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately with that
index, and (4) such investments must not be subject to liquidation prior to their maturity; 

(iii)    fully Federal Deposit Insurance Corporation-insured demand and time deposits in, or certificates
of deposit of, or bankers’ acceptances issued by, any bank or trust company, savings and loan association or savings bank, (A) in the case of such investments with maturities of thirty (30) days or less, the short term obligations of
which are rated in the highest short term rating category by each Rating Agency (or, if not rated by all Approved Rating Agencies, rated by Moody’s in the highest short term rating category) and the long term obligations of which are rated at
least “A2” by Moody’s (or such lower rating for which Rating Agency Confirmation is received with respect to Moody’s), (B) in the case of such investments with maturities of three (3) months or less, but more than
thirty (30) days, the short term obligations of which are rated in the highest short term rating category by each Rating Agency (or, if not rated by all Approved Rating Agencies, rated by Moody’s in the highest short term rating category)
and the long term obligations of which are rated at least “A1” by Moody’s (or such lower rating for which Rating Agency Confirmation is received with respect to Moody’s), (C) in the case of such investments with maturities of six
(6) months or less, but more than three (3) months, 

  
 22 

 
the short term obligations of which are rated in the highest short term rating category by each Rating Agency (or, if not rated by all Approved Rating Agencies, rated by Moody’s in the
highest short term rating category) and the long term obligations of which are rated at least “Aa3” by Moody’s (or such lower rating for which Rating Agency Confirmation is received with respect to Moody’s), and (D) in the
case of such investments with maturities of more than six (6) months, the short term obligations of which are rated in the highest short term rating category by each Rating Agency (or, if not rated by all Approved Rating Agencies,
rated by Moody’s in the highest short term rating category) and the long term obligations of which are rated “Aaa” by Moody’s (or such lower rating for which Rating Agency Confirmation is received with respect to Moody’s);
provided, however, that the investments described in this clause must (1) have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (2) if rated by S&P, must not have an
“r” highlighter affixed to their rating, (3) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately with that
index, and (4) such investments must not be subject to liquidation prior to their maturity; 

(iv)    debt obligations with maturities of not more than 365 days and at all times rated by each Rating
Agency in its highest long-term unsecured rating category (or, if not rated by all Approved Rating Agencies, rated by Moody’s in its highest long-term unsecured rating category); provided, however, that the
investments described in this clause must (A) have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B) if rated by S&P, must not have an “r” highlighter affixed to their rating,
(C) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (D) such investments must not be
subject to liquidation prior to their maturity; 
 (v)    commercial paper (including both non-interest-bearing discount obligations and interest-bearing obligations payable on demand or on a specified date not more than one year after the date of issuance thereof) with maturities of not more than 365
days (A) in the case of such investments with maturities of thirty (30) days or less, the short term obligations of which are rated in the highest short term rating category by each Rating Agency (or, if not rated by all Approved Rating
Agencies, rated by Moody’s in the highest short term rating category) and the long term obligations of which are rated at least “A2” by Moody’s (or such lower rating for which Rating Agency Confirmation is received with respect
to Moody’s), (B) in the case of such investments with maturities of three (3) months or less, but more than thirty (30) days, the short term obligations of which are rated in the highest short term rating category by each Rating
Agency (or, if not rated by all Approved Rating Agencies, rated Moody’s in the highest short term rating category) and the long term obligations of which are rated at least “A1” by Moody’s (or such lower rating for
which Rating Agency Confirmation is received with respect to Moody’s), (C) in the case of such investments with maturities of six (6) months or less, but more than three (3) months, the short term obligations of which are rated in the
highest short term rating category by each Rating Agency (or, if not rated by all Approved Rating Agencies, rated by Moody’s in the highest short term rating category) and the long term obligations of which are rated at least “Aa3” by
Moody’s (or 

  
 23 

 
such lower rating for which Rating Agency Confirmation is received with respect to Moody’s), and (D) in the case of such investments with maturities of more than six (6) months,
the short term obligations of which are rated in the highest short term rating category by each Rating Agency (or, if not rated by all Approved Rating Agencies, rated by Moody’s in the highest short term rating category) and the long term
obligations of which are rated “Aaa” by Moody’s (or such lower rating for which Rating Agency Confirmation is received with respect to Moody’s); provided, however, that the investments described in
this clause must (1) have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (2) if rated by S&P, must not have an “r” highlighter affixed to their rating, (3) if such investments have
a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (4) such investments must not be subject to liquidation prior to their
maturity; 
 (vi)    units of taxable money market funds, which funds are regulated investment companies
and invested solely in obligations backed by the full faith and credit of the United States, which funds have the highest rating available from each Rating Agency (or, if not rated by all Approved Rating Agencies, rated by at least one Approved
Rating Agency and otherwise acceptable to each other Approved Rating Agency, as confirmed in writing that such investment would not, in and of itself, result in a downgrade, qualification or withdrawal of the initial, or, if higher, then current
ratings assigned to the Securities) for money market funds; and 
 (vii)    any other security,
obligation or investment which has been specifically approved as a Permitted Investment in writing (A) by Lender and (B) each Rating Agency, as confirmed by satisfaction of the Rating Agency Confirmation with respect to each Approved
Rating Agency; 
 provided, however, that no obligation or security shall be a Permitted Investment if
(a) such obligation or security evidences a right to receive only interest payments or (b) the right to receive principal and interest payments on such obligation or security are derived from an underlying investment that provides a yield
to maturity in excess of one hundred twenty percent (120%) of the yield to maturity at par of such underlying investment and provided, further, that each investment described hereunder must have (x) a
predetermined fixed amount of principal due at maturity (that cannot vary or change) and (y) an original maturity of not more than 365 days and a remaining maturity of not more than thirty (30) days. 

“Permitted Liens” means, collectively, (i) the Liens and security interests created by the Loan Documents, (ii) all
encumbrances and other matters disclosed in the Title Insurance Policies for the Properties and, with respect to any Substitute Property, as Lender has approved in writing in Lender’s reasonable discretion, (iii) Liens, if any, for Non-Property Taxes or Property Taxes imposed by any Governmental Authority not yet due or delinquent, (iv) Liens arising after the Closing Date for Non-Property Taxes,
Property Taxes or HOA Fees being contested in accordance with Section 4.1.4 or Section 4.4.5, (v) any workers’, mechanics’ or other similar Liens on a Property that are bonded or
discharged within sixty (60) days after Borrower first receives written notice of such Lien, (vi) all easements, rights-of-way, restrictions and other similar non-monetary encumbrances recorded against and affecting any Property and 

  
 24 

 
that would not reasonably be expected to and do not have an Individual Material Adverse Effect on the Property, (vii) such other title and survey exceptions as Lender has approved or may
approve in writing in Lender’s reasonable discretion, (viii) rights of Tenants as Tenants only under Leases permitted hereunder, (ix) Liens on Ancillary Collateral in favor of the Lender securing obligations under the Companion Seller
Financing and (x) the Specified Liens. 
 “Permitted Transfers” has the meaning set forth in
Section 4.2.17(d). 
 “Person” means any individual, corporation, partnership, limited liability
company, joint venture, estate, trust, unincorporated association, any Governmental Authority and any fiduciary acting in such capacity on behalf of any of the foregoing. 

“Plan” means an “employee benefit plan” as defined in Section 3(3) of ERISA that is established, maintained or
contributed to by any Loan Party or any of its ERISA Affiliates (or as to which such entity has any liability) and that is covered by Title IV of ERISA, other than a Multiemployer Plan. 

“Plan Termination Event” means (i) any event described in Section 4043 of ERISA with respect to any Plan;
(ii) the withdrawal of any Loan Party or any of its ERISA Affiliates from a Plan during a plan year in which such Loan Party or such ERISA Affiliate was a “substantial employer” as defined in Section 4001(a)(2) of ERISA;
(iii) the imposition of an obligation on any Loan Party or any of its ERISA Affiliates under Section 4041 of ERISA to provide affected parties written notice of intent to terminate a Plan in a distress termination described in
Section 4041(c) of ERISA; (iv) the institution of proceedings by the PBGC to terminate a Plan or by any similar foreign governmental authority to terminate a Foreign Plan; (v) any event or condition which could reasonably constitute
grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan; (vi) the institution of proceedings by a foreign governmental authority to appoint a trustee to administer any Foreign
Plan; or (vii) the partial or complete withdrawal of any Loan Party or any of its ERISA Affiliates from a Multiemployer Plan or Foreign Plan or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA. 
 “Policy” and “Policies” shall have the
respective meanings set forth in Section 5.1.1(b). 
 “Prepayment Notice” means a prior written
notice to Lender specifying the proposed Business Day on which a prepayment of the Debt is to be made pursuant to Section 2.4.1, which date shall be no earlier than ten (10) days after the date of such Prepayment
Notice and no later than ninety (90) days after the date of such Prepayment Notice. A Prepayment Notice may be revoked in writing by Borrower, or may be modified in writing by Borrower to a new specified Business Day, in each case, on or prior
to the proposed prepayment date set forth in such Prepayment Notice; provided that such new Business Day shall be no earlier than such proposed prepayment date. If revoked (as opposed to modified), any new Prepayment Notice shall
comply with the timeframes set forth above. Borrower shall pay to Lender all reasonable out-of-pocket costs and expenses (if any) incurred by Lender in connection with
Borrower’s permitted revocation or modification of any Prepayment Notice. 

  
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 “Properties Schedule” means the data tape of Properties attached hereto as
Schedule II.A as of the Closing Date, as updated on a monthly basis in the form attached hereto as Schedule II.B, and supplemented quarterly by the data included on Schedule II.C pursuant to
Section 4.3.7. 
 “Property” means, individually, and “Properties” means,
collectively, (i) the residential real properties described on the Properties Schedule as of the Closing Date and encumbered by the Mortgages and (ii) any residential real properties that are Substitute Properties; provided
that if the Allocated Loan Amount for any Property has been reduced to zero and all interest and other Obligations related thereto that are required to be paid on or prior to the date when the Allocated Loan Amount for such Property is required to
be repaid have been repaid in full, then such residential real property shall no longer be a Property hereunder. The Properties include the Improvements now or hereafter erected or installed thereon and other personal property owned by Borrower
located thereon, together with all rights pertaining to such real property, Improvements and personal property. Any Property Transferred to Borrower TRS shall continue to constitute a “Property” for purposes of this Agreement and the Loan
Documents. 
 “Property Covenants” means those covenants set forth in Section 4.4 and the
covenants contained in Section 2 of the Environmental Indemnity. 
 “Property Representations” means those
representations and warranties set forth in Section 3.2 and Section 1 of the Environmental Indemnity. 

“Property Taxes” means any real estate and personal property taxes, assessments, water charges, sewer rents, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto now or hereafter levied or assessed or imposed by a Governmental Authority against any Property, any Collateral, any part of either of the foregoing or Borrower. 

“Provided Information” means any and all financial and other information provided at any time prepared by, or on behalf of,
any Relevant Party. 
 “Public Vehicle” means a Person whose securities are listed and traded on a national securities
exchange and shall include a majority owned subsidiary of any such Person or any operating partnership through which such Person conducts all or substantially all of its business. 

“Purchase Agreement” means the Purchase and Sale Agreement, dated March 30, 2017, between Vaca Morada Partners, LP and
MSR II, L.P., as sellers, and Altisource Residential, L.P., a Delaware limited partnership, as buyer, as amended, restated, replaced, supplemented or otherwise modified from time to time. 

“Qualified Manager” means (i) Existing Manager, (ii) any Person that is under common Control with Existing Manager
or (iii) a reputable Person that has at least two (2) years’ experience in the management of at least 2,000 residential rental properties in the aggregate, and is at the time of determination managing residential rental properties in
(a) at least 75% of the metropolitan statistical areas that the applicable Properties to be managed by such Person are located (and has retained by subcontract a property manager in all other metropolitan statistical areas before the
effectiveness of any termination or resignation of the Manager) and (b) every state that the applicable Properties to be managed by such Person are located, and is not the 

  
 26 

 
subject of a bankruptcy or similar proceeding; provided, that in the case of the foregoing subclause (iii), Borrower shall have obtained a Rating
Agency Confirmation in respect of the management of the Properties by such Person; and provided, further, that in the case of the foregoing subclause (ii) and
subclause (iii), if such Person is an Affiliate of Borrower, Borrower shall have obtained an Additional Insolvency Opinion if such an opinion is requested by Lender. 

“Qualified Release Property Default” has the meaning set forth in Section 2.5(b). 

“Qualified Transferee” means (i) Parent or (ii) any Person that (A) itself has, or for which a Person
executing and delivering the Parent Guaranty or a replacement guaranty in substantially the same form and substance as the Parent Guaranty has, Net Assets of not less than $300,000,000 (exclusive of such Person’s direct or indirect interest in
the Properties and Borrower), (B) has not been the subject of a voluntary or involuntary (to the extent the same has not been discharged) bankruptcy proceeding or any governmental or regulatory investigation which resulted in a final, nonappealable
conviction for criminal activity involving moral turpitude, (C) is (or is under common Control with a Person that is) regularly engaged in the management, ownership or operation of residential rental properties and (D) with respect to the
applicable Transfer to such Person, Borrower shall have obtained a Rating Agency Confirmation. 
 “Quarterly Investor Rollup
Report” has the meaning set forth in Section 4.3.7. 
 “Rating Agency
Confirmation” means a written affirmation from each of the Approved Rating Agencies that the credit rating of the Securities by such Approved Rating Agency immediately prior to the occurrence of the event with respect to which such Approved
Rating Agency Confirmation is sought will not be qualified, downgraded or withdrawn as a result of the occurrence of such event, which affirmation may be granted or withheld in such Rating Agency’s sole and absolute discretion. In the event
that, at any given time, no Securities are then outstanding, then the term Rating Agency Confirmation shall be deemed instead to require the written approval of Lender based on the exercise of its good faith and reasonable judgment. 

“Register” has the meaning set forth in Section 8.1. 

“Release Amount” means, for a Property, the following applicable amount together with any other amounts specified in
Section 2.4.4: 
 (i)    in connection with the Transfer of a Property pursuant to
Section 2.5 or any failure of a Property to qualify as an Eligible Property due to the occurrence of a Voluntary Action (such Properties, “Release Premium Properties”), (A) one hundred five percent (105%)
of the Allocated Loan Amount for such Property if the sum of the initial Allocated Loan Amounts of all Release Premium Properties, including such Property, is less than $11,420,122.54, (B) one hundred ten percent (110%) of the Allocated Loan Amount
for such Property if the sum of the initial Allocated Loan Amounts of all Release Premium Properties, including such Property, is equal to or greater than $11,420,122.54 but less than $17,130,183.81, (C) one hundred fifteen percent (115%) of the
Allocated Loan Amount for such Property if the sum of the initial Allocated Loan Amounts of all Release Premium Properties, including such Property, is equal to or greater than $17,130,183.81 but less than $22,840,245.09 and (D) one hundred
twenty percent (120%) of the Allocated Loan Amount for such Property if the sum of the initial Allocated Loan Amounts of all Release Premium Properties, including such Property, is equal to or greater than $22,840,245.09; 

  
 27 

 (ii)    in connection with any failure of a Property to qualify as an
Eligible Property, other than due to the occurrence of a Voluntary Action, that is not cured within the applicable Cure Period, an amount equal to one hundred percent (100%) of the Allocated Loan Amount for such Property; 

(iii)    in connection with any Condemnation or Casualty of any Property for which prepayment of the Release Amount is
required pursuant to Section 5.3 or Section 5.4, one hundred percent (100%) of the Allocated Loan Amount for such Property; and 

(iv)    in connection with the release of a Non-Conforming Property, one hundred
percent (100%) of the Allocated Loan Amount for such Property. 
 “Release Premium Properties” has the meanings set
forth in the definition of “Release Amount”. 
 “Release Property” has the meaning set forth in
Section 2.5. 
 “Relevant Party” means each Loan Party and Parent (and, collectively
“Relevant Parties”). 
 “Renovation Standards” means the maintenance, repairs, improvements and
installations that (i) are necessary for a Property to conform to applicable material Legal Requirements and (ii) do not deviate materially from local rental market standards for the area in which such Property is located. 

“Rent Deposit Account” has the meaning set forth in Section 2.6(a). 

“Rent Deposit Bank” has the meaning set forth in Section 2.6(a). 

“Rent Refund” means, with respect to any Tenant in default under any applicable Lease, any payment of Rent (in whole or in
part) delivered by such Tenant to Manager, to the extent Borrower or Manager reasonably determines the return of the same is necessary in order to preserve Borrower’s enforcement remedies under the applicable Lease. 

“Rents” means, with respect to each Property, all rents and rent equivalents (including for forfeited security deposits
allocated to rent) and any fees (other than any lease application fees received from a prospective tenant), payments or other compensation from any Tenant. 

“Repayment Date” means the date of a prepayment of the Loan pursuant to the provisions of
Section 2.4. 
 “Replacement Management Agreement” means, collectively, (i) either
(A) a management agreement with a Qualified Manager, substantially in the same form and substance as the Existing Management Agreement; (B) a management agreement with a Qualified Manager, which management agreement shall be reasonably
acceptable to Lender in form and 

  
 28 

 
substance; provided, that with respect to this clause (B), (x) if such management agreement provides for the payment of management fees at a rate that is in excess of the
rate provided for under the Existing Management Agreement, then Borrower shall have obtained a Rating Agency Confirmation with respect to such increase in management fees and (y) otherwise Lender, at its option, may require that Borrower obtain
a Rating Agency Confirmation with respect to such management agreement; or (C) a management agreement with a Manager approved by Lender in accordance with Section 4.1.18(b)(y) and satisfying the
conditions set forth in clauses (B)(x) and (B)(y) above, and (ii) an assignment of management agreement and subordination of management fees substantially in the form of the Assignment of Management Agreement dated as of the
Closing Date (or such other form and substance reasonably acceptable to Lender and the Qualified Manager). 
 “Reportable
Event” has the meaning set forth in Section 4043 of ERISA. 
 “Request for Release” means a request for
release of a Property in connection with any Transfer of a Property, substantially in the form attached hereto as Exhibit D. 

“Reserve Funds” means, collectively, all funds deposited by Borrower with Lender or Cash Management Account Bank pursuant to
Article VI, including, but not limited to, the Capital Expenditure Funds, the Insurance Funds, the Tax Funds, the Casualty and Condemnation Funds, the Cash Collateral Funds, the Eligibility Funds and the Advance Rent Funds. 

“Reserve Release Date” means any Business Day as requested by Borrower pursuant to a Reserve Release Request;
provided, that there shall be no more than one Reserve Release Date in any calendar month. 
 “Reserve Release
Request” means any written request by Borrower for a release of Reserve Funds made in accordance with Article VI. 

“RESI Criteria” has the meaning set forth in the Purchase Agreement. 

“RESI Specs” has the meaning set forth in the Purchase Agreement. 

“Responsible Officer” means, as to any Person, the chief executive officer or president or, with respect to financial
matters, the chief financial officer or treasurer of such Person; provided, that in the event any such officer is unavailable at any time he or she is required to take any action hereunder, Responsible Officer means any officer
authorized to act on such officer’s behalf as demonstrated by a certified resolution. 
 “Restoration” means the
repair and restoration of any Property after a Casualty as nearly as possible to the condition such Property was in immediately prior to such Casualty, with such material alterations as may be approved by Lender, such approval not to be unreasonably
withheld, delayed or conditioned. 
 “Restricted Junior Payment” means, with respect to any Person, (i) any dividend
or other distribution of any nature (cash, securities, assets, Indebtedness or otherwise) and any payment, by virtue of redemption, retirement or otherwise, on any class of Equity Interests or subordinate Indebtedness issued by such Person, whether
such Equity Interests are now or may 

  
 29 

 
hereafter be authorized or outstanding and any distribution in respect of any of the foregoing, whether directly or indirectly, (ii) any redemption, retirement, sinking fund or similar
payment, purchase or other acquisition for value, direct or indirect, of any Equity Interests or subordinate Indebtedness of such Person now or hereafter outstanding, or (iii) any payment of management or similar fees by such Person (other than
payment of management fees under any Management Agreement to the extent expressly permitted by this Agreement). 
 “Restricted
Party” means, collectively, Borrower TRS, Borrower, Equity Owner, and any other direct or indirect equity holder in Borrower TRS, Borrower or Equity Owner up to, but not including, the first direct or indirect equity holder that has
substantial assets other than the Properties and the other Collateral. 
 “Review Waiver” has the meaning set forth in
Section 9.2(b). 
 “S&P” means S&P Global Ratings. 

“Securities Act” means the Securities Act of 1933, as amended. 

“Security Deposit Account” has the meaning set forth in Section 4.1.16(a). 

“Servicer” has the meaning set forth in Section 8.3. 

“Servicing Agreement” has the meaning set forth in Section 8.3. 

“Severed Loan Documents” has the meaning set forth in Section 7.2(c). 

“Solvent” means, with respect to any Person or any consolidated group, on any date of determination, that on such date
(i) the fair saleable value of such Person’s or consolidated group’s assets exceeds its total liabilities, including, without limitation, subordinated, unliquidated, disputed and contingent liabilities, (ii) the fair saleable
value of such Person’s or consolidated group’s assets exceeds its probable liabilities, as applicable, including the maximum amount of its contingent liabilities on its debts as such debts become absolute and matured, (iii) such
Person’s or consolidated group’s assets do not constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted and (iv) such Person or consolidated group does not intend to, and does not
believe that it will, incur debt and liabilities (including contingent liabilities and other commitments) beyond its ability to pay such debt and liabilities as they mature (taking into account the timing and amounts of cash to be received by it and
the amounts to be payable on or in respect of its obligations). 
 “Special Members” has the meaning set forth in the
definition of “Special Purpose Entity”. 
 “Special Purpose Entity” means a limited liability company that, since
the date of its formation and at all times on and after the date thereof, has complied with and shall at all times comply with the following requirements unless it has received either prior consent to do otherwise from Lender (which consent shall be
deemed granted with respect to each Loan Party and the transactions contemplated by the Companion Seller Financing), or, while the Loan is 

  
 30 

 
securitized, a Rating Agency Confirmation from each of the Approved Rating Agencies, and an Additional Insolvency Opinion, in each case: 

(i)    is and shall be organized solely for the purpose of (A) in the case of Borrower, acquiring,
maintaining, renovating, rehabilitating, owning, holding, marketing, selling, leasing, transferring, managing and operating the Properties, entering into and performing its obligations under the Loan Documents to which it is a party, refinancing the
Properties in connection with a permitted repayment of the Loan, acting as the sole member of Borrower TRS and transacting lawful business that is incident, necessary and appropriate to accomplish the foregoing, (B) in the case of Equity Owner,
acting as the sole member of Borrower and transacting lawful business that is incident, necessary and appropriate to accomplish the foregoing or (C) in the case of Borrower TRS, owning, marketing and selling Properties and transacting lawful
business that is incident, necessary and appropriate to accomplish the foregoing; 
 (ii)    has not
engaged and shall not engage in any business unrelated to (A) in the case of Borrower, the acquisition, renovation, maintenance, ownership, holding, marketing, sale, leasing, transfer, management, operation or financing of the Properties and
acting as sole member of Borrower TRS, (B) in the case of Equity Owner, acting as the sole member of Borrower or (C) in the case of Borrower TRS, the marketing and selling of the Properties; 

(iii)    has not owned and shall not own any real property other than the Properties; 

(iv)    does not have, shall not have and at no time had any assets other than (A) in the case of
Borrower, the Properties, personal property necessary or incidental to its ownership and operation of the Properties and its membership interest in Borrower TRS, (B) in the case of Equity Owner, its membership interest in Borrower and personal
property necessary or incidental to its ownership of such interest or (C) in the case of Borrower TRS, the Properties and incidental personal property necessary for the ownership, operation, marketing or sale of Properties; 

(v)    shall not cause, consent to or permit any amendment of its certificate of formation or its limited
liability company agreement with respect to the matters set forth in this definition; 
 (vi)    with
respect to each of Borrower, Equity Owner and each Borrower TRS, (A) is and shall be a Delaware limited liability company, (B) has and shall have at least two (2) Independent Directors serving as managers of such company,
(C) shall not take, and neither the member of any Loan Party nor any officer of any Loan Party nor any other Person shall be authorized or empowered to take any of the following actions, either with respect to itself or, with respect to any
subsidiary of it that is a Loan Party, in each case without the prior unanimous consent of all the Independent Directors of the company in writing to such action (each, a “Material Action”): (1) filing or consenting to the
filing of any petition, either voluntary or involuntary, to take advantage of any applicable insolvency, bankruptcy, liquidation or reorganization statute, 

  
 31 

 
(2) seeking or consenting to the appointment of a receiver, liquidator or any similar official of any Loan Party or a substantial part of its business, (3) making an assignment for the
benefit of creditors by any Loan Party, (4) admitting in writing its inability to pay debts generally as they become due, (5) declaring or effectuating a moratorium on the payment of any obligations of any Loan Party, or (6) taking
any action in furtherance of the foregoing, provided, for purposes of clauses (4) and (6), the following shall not constitute a Material Action: (x) admissions or statements which are compelled and required by law and which are true and
correct, or (y) admissions or statements in writing to Lender or any servicer of the Loan, or in connection with any audit opinion or “going concern” qualification in its audited financial statements, that (I) Borrower cannot pay
its Operating Expenses, (II) Borrower cannot pay debt service on the Loan, or (III) Borrower cannot repay or refinance the Loan on the Maturity Date; notwithstanding any provision of law that otherwise so empowers such company, its member
or any officer or any other Person, provided, however, that, so long as the Loan is outstanding such company may not authorize the taking of any Material Action, unless there are at least two (2) Independent Directors the serving in such
capacity and (D) under the terms of its limited liability company agreement, immediately prior the occurrence of any event that causes the sole member to cease to be a member of such company (other than upon continuation of such company without
dissolution upon an assignment by the member of all of its limited liability interest in such company and the admission of the transferee in accordance with such company’s limited liability company agreement), each of the persons acting as
Independent Director of such entity shall, without any action of any Person, automatically be admitted as members of the limited liability company (“Special Members”) and shall pursue and continue the existence of the limited
liability company without dissolution and such Special Members may not resign as such until (i) a successor Special Member has been admitted to the limited liability company as a Special Member and (ii) such successor Special Member has
also accepted its appointment as an Independent Director; 
 (vii)    has and shall have a limited
liability agreement that provides that, to the fullest extent permitted by applicable law, including Section 18-1101(e) of the Delaware Limited Liability Company Act, the Independent Directors of a Loan
Party shall not be liable to such Loan Party, its equity holders or any other Person bound by its limited liability agreement for breach of contract or breach of duties (including fiduciary duties), unless the Independent Director acted in bad faith
or engaged in willful misconduct; 
 (viii)    has and shall have a limited liability agreement that
provides that such entity shall not (A) dissolve, merge, liquidate, consolidate; (B) sell all or substantially all of its assets; or (C) amend its organizational documents with respect to the matters set forth in this definition
without the consent of Lender; 
 (ix)    has at all times been and shall intend at all times to remain
solvent and has paid and shall pay its debts and liabilities (including, a fairly-allocated portion of any personnel and overhead expenses that it shares with any Affiliate) from its assets as the same shall become due, and has maintained and shall
intend to maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and 

  
 32 

 
character and in light of its contemplated business operations; provided, that the foregoing shall not require any direct or indirect member of any Loan Party to make any additional
capital contributions to such Loan Party; 
 (x)    has not failed and shall not fail to correct any
known misunderstanding regarding the separate identity of such entity and has not identified and shall not identify itself as a division of any other Person; 

(xi)    has maintained and shall maintain its bank accounts, books of account, books and records separate
from those of any other Person (other than as between Borrower and Borrower TRS) and, to the extent that it is required to file tax returns under applicable law, has filed and shall file its own tax returns, except to the extent that it is required
by law to file consolidated tax returns; 
 (xii)    has maintained and shall maintain its own records,
books, resolutions and agreements; 
 (xiii)    has not commingled and, except as contemplated by this
Agreement (including, notwithstanding any provision to the contrary, as contemplated in the case of Not-Borrower Funds in Section 2.6), shall not commingle its funds or assets with
those of any other Person and has not participated and shall not participate in any cash management system with any other Person; provided, that Borrower TRS may commingle its assets with those of Borrower and may participate in
Borrower’s cash management system; 
 (xiv)    has held and shall hold its assets in its own name;
provided, that Borrower TRS may hold assets in Borrower’s name; 
 (xv)    has
conducted and shall conduct its business in its name or in a name franchised or licensed to it by an entity other than an Affiliate of itself or of Borrower, except for business conducted on behalf of itself by another Person under a business
management services agreement that is on commercially-reasonable terms, so long as the manager, or equivalent thereof, under such business management services agreement holds itself out as an agent of Borrower; 

(xvi)    (A) has maintained and shall maintain its financial statements, accounting records and other
entity documents separate from those of any other Person (other than as between Borrower and Borrower TRS); (B) has shown and shall show, in its financial statements, its assets and liabilities separate and apart from those of any other Person
(other than as between Borrower and Borrower TRS); and (C) has not permitted and shall not permit its assets to be listed as assets on the financial statement of any of its Affiliates except as required by GAAP; provided,
however, that any such consolidated financial statement contains a note indicating that the Special Purpose Entity’s separate assets and credit are not available to pay the debts of such Affiliate and that the Special Purpose
Entity’s liabilities do not constitute obligations of the consolidated entity; 
 (xvii)    has paid
and shall pay its own liabilities and expenses, including the salaries of its own employees, out of its own funds and assets, and has maintained and shall maintain a sufficient number of employees or contract for sufficient services in light of its
contemplated business operations; 

  
 33 

 (xviii)    has observed and shall observe all limited
liability company formalities; 
 (xix)    has not incurred and shall not incur any Indebtedness other
than, (i) with respect to Borrower, Permitted Indebtedness, (ii) with respect to Borrower TRS, the Borrower TRS’s Permitted Indebtedness, and (iii) with respect to Equity Owner, Equity Owner’s Permitted Indebtedness; 

(xx)    has not assumed, guaranteed or become obligated and shall not assume or guarantee or become
obligated for the debts of any other Person, has not held out and shall not hold out its credit as being available to satisfy the obligations of any other Person or has not pledged and shall not pledge its assets to secure the obligations of any
other Person, in each case except as permitted or contemplated by the Loan Documents; 
 (xxi)    has not
acquired and shall not acquire obligations or securities of its members or any Affiliate; provided, that Equity Owner shall be the sole member of Borrower and Borrower shall be the sole member of Borrower TRS; 

(xxii)    has allocated and shall allocate fairly and reasonably any overhead expenses that are shared with
any of its Affiliates, constituents, or owners, or any guarantors of any of their respective obligations, or any Affiliate of any of the foregoing, including, but not limited to, paying for shared office space and for services performed by any
employee of an Affiliate; 
 (xxiii)    has maintained and used and shall maintain and use separate
stationery, invoices and checks bearing its name and not bearing the name of any other entity unless such entity is clearly designated as being the Special Purpose Entity’s agent; 

(xxiv)    has not pledged and shall not pledge its assets to secure the obligations of any other Person,
except to Lender to secure the Obligations; 
 (xxv)    has held itself out and identified itself and
shall hold itself out and identify itself as a separate and distinct entity under its own name or in a name franchised or licensed to it by an entity other than an Affiliate of Borrower and not as a division or part of any other Person; 

(xxvi)    has maintained and shall maintain its assets in such a manner that it shall not be costly or
difficult to segregate, ascertain or identify its individual assets from those of any other Person; provided that Borrower TRS may hold its assets in Borrower’s name; 

(xxvii)    has not made and shall not make loans to any Person and has not held and shall not hold evidence
of indebtedness issued by any other Person or entity (other than cash and Permitted Investments); 

  
 34 

 (xxviii)    has not identified and shall not identify its
members or any Affiliate of any of them, as a division or part of it, and has not identified itself and shall not identify itself as a division of any other Person; 

(xxix)    except in connection with the formation of a Borrower TRS and the contribution by Borrower of
Collateral to such Borrower TRS as contemplated by Section 4.1.22 and other than capital contributions and distributions permitted under the terms of its organizational documents, has not entered into or been a party to,
and shall not enter into or be a party to, any transaction with any of its members except in the ordinary course of its business and on terms which are commercially reasonable terms comparable to those of an
arm’s-length transaction with an unrelated third party; 

(xxx)    has not had and shall not have any obligation to, and has not indemnified and shall not indemnify
its partners, officers, directors or members, as the case may be, in each case unless such an obligation or indemnification is fully subordinated to the Debt and shall not constitute a claim against it in the event that its cash flow is insufficient
to pay the Debt; 
 (xxxi)    has not had and shall not have any of its obligations guaranteed by any
Affiliate, except as provided by the Loan Documents; 
 (xxxii)     has not formed, acquired or held and
shall not form, acquire or hold any subsidiary, except as contemplated by the Loan Documents; 

(xxxiii)     has complied and shall comply with all of the terms and provisions contained in its
organizational documents; 
 (xxxiv)     has conducted and shall conduct its business so that each of the
assumptions made about it and each of the facts stated about it in the Insolvency Opinion, or if applicable, any Additional Insolvency Opinion, are true and correct in all material respects; and 

(xxxv)     has not permitted and shall not permit any Affiliate or constituent party independent access to
its bank accounts, except Manager pursuant to a Management Agreement entered into in accordance with this Agreement. 
 “Specified
Liens” means Liens described in Schedule X affecting one or more of the Properties as of the Closing Date, provided that all such Liens on the affected Properties are affirmatively covered by the Title Insurance Policies. 

“State” means, with respect to a Property, the State or Commonwealth in which such Property or any part thereof is located.

 “Subaccounts” has the meaning set forth in Section 2.7.1(e). 

“Substitute Mortgage Documents” has the meaning set forth in Section 2.4.2(a)(x). 

  
 35 

 “Substitute Property” and “Substitute Properties”
shall have the respective meanings set forth in Section 2.4.2(a). 
 “Succeeding Interest
Period” has the meaning set forth in Section 2.4.4(a)(ii). 
 “Tax Funds”
has the meaning set forth in Section 6.1.1. 
 “Tax Subaccount” has the meaning set
forth in Section 6.1.1. 
 “Taxes” means all present or future taxes, levies, imposts, duties,
deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. 

“Tenant” means any Person obligated by contract or otherwise to pay monies (including a percentage of gross income, revenue
or profits) under any Lease now or hereafter affecting all or any part of a Property. 
 “Term” means the entire term of
this Agreement, which shall expire upon repayment in full of the Debt. 
 “TIP Lease” means a Lease in respect of a
Property between Borrower, as lessor, and a Lender (or any wholly owned subsidiary thereof), as lessee. 
 “TIP Property”
means any Property that, at the Closing Date, is subject to a TIP Lease. 
 “TIP Purchase Price Adjustment” is used as
defined in the Purchase Agreement except as used in this Agreement refers only to a TIP Purchase Price Adjustment under which the Lender pays the Borrower and only to the extent of 75% of the amount allocable to the Properties sold by such Lender
that secure the Borrower’s Obligations under this Loan Agreement. 
 “Title Insurance Owner’s Policy” means, with
respect to each Property, an ALTA owner title insurance policy issued by a title insurance company reasonably acceptable to Lender in a form reasonably acceptable to Lender (or, if a Property is in a state which does not permit the issuance of such
ALTA policy, such form as shall be permitted in such state and determined that is reasonably acceptable to Lender) issued with respect to such Property and insuring the legal title to such Property. 

“Title Insurance Policy” means, with respect to each Property or multiple Properties encumbered by the same Mortgage, an ALTA
mortgagee title insurance policy issued by a title insurance company reasonably acceptable to Lender containing such endorsements as Lender may reasonably require (to the extent available in the state where the Property or the Properties, as
applicable, are located) in a form reasonably acceptable to Lender (or, if such Property or the Properties, as applicable, are located in a state which does not permit the issuance of such ALTA policy, such form as shall be permitted in such state
and determined that is reasonably acceptable to Lender) issued with respect to such Property or Properties, as applicable, and insuring the Lien of the Mortgage Documents encumbering such Property or Properties, as applicable (subject to Permitted
Liens) other than Specified Liens. 

  
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 “Transaction” means the transaction contemplated by this Agreement and the other
Loan Documents. 
 “Transfer” has the meaning set forth in Section 4.2.17(b). 

“Transfer Date” means the date upon which a Transfer of a Property is consummated. 

“Transfer Expenses” means, with respect to the Transfer of any Property, the reasonable expenses of Borrower incurred in
connection therewith not to exceed six percent (6%) of all gross amounts realized with respect thereto, for any of the following: (i) third party real estate commissions, (ii) the closing costs of the purchaser of such Property actually
paid by Borrower and (iii) Borrower’s miscellaneous closings costs, including, but not limited to title, escrow and appraisal costs and expenses. 

“U.S. Person” means any Person that is a “United States person” as defined in Section 7701(a)(30) of the Code.

 “U.S. Tax Compliance Certificate” has the meaning set forth in
Section 2.8(e)(iii)(B)(3). 
 “UCC” or “Uniform Commercial Code” means the Uniform
Commercial Code as in effect in the State (with respect to fixtures), the State of New York or the state in which the Cash Management Account is located, as the case may be. 

“Underwritten Capital Expenditures” means, as of any date of determination, for the twelve (12) month period ending on
such date, the product of (i) the number of Properties multiplied by (ii) $450. 
 “Underwritten Net Cash Flow” means,
as of any date of determination, the excess of: (i) for the twelve (12) month period ending on such date, the sum of (A) the lesser of (1) GPR multiplied by 92.5%, and (2) Actual Rent Collections, and (B) Other
Receipts; over (ii) for the twelve (12) month period ending on such date, the sum of (A) Operating Expenses, adjusted to reflect exclusion of amounts representing non-recurring expenses,
(B) Underwritten Capital Expenditures and (C) Concessions. For purposes of the foregoing calculations, for each of the first three Calculation Dates after the Closing Date, Operating Expenses, Concessions, Actual Rent Collections and Other
Receipts with respect to the Properties for the period from the Closing Date to and including each such Calculation Date shall be annualized to determine the twelve (12) month Operating Expenses, Concessions, Actual Rent Collections and Other
Receipts with respect to the Properties. 
 Notwithstanding the foregoing, Underwritten Net Cash Flow shall not include (a) any
Insurance Proceeds (other than business interruption and/or rental loss insurance proceeds and only to the extent allocable to the applicable reporting period), (b) any proceeds resulting from the Transfer of all or any portion of any Property,
including any Award, (c) any item of income otherwise included in Underwritten Net Cash Flow but paid directly by any Tenant to a Person other than Borrower as an offset or deduction against Rent payable by such Tenant, provided such item of
income is for payment of an item of expense (such as payments for utilities paid directly to a utility company) and such expense is otherwise excluded from the definition of 

  
 37 

 
Operating Expenses pursuant to clause “(H)” of the definition thereof, (d) security deposits received from Tenants until forfeited or applied and (e) any lease buy-out or surrender payment from any Tenant. 
 Notwithstanding anything herein to the contrary, the
Underwritten Net Cash Flow of any Property that is a Disqualified Property shall be zero for all purposes of this Agreement unless Borrower makes a deposit of Eligibility Funds into the Eligibility Reserves Subaccount in an amount equal to one
hundred percent (100%) of the Allocated Loan Amount for such Property. 
 “United States” means the United States of
America. 
 “Unrestricted Cash” means any cash or Permitted Investments not held in the Cash Management Account, any
Subaccount, the Rent Deposit Account or any Security Deposit Account or required to be deposited therein pursuant to this Agreement; provided, that funds held in Borrower’s Operating Account that were distributed to Borrower for
Operating Expenses set forth in a Monthly Budgeted Amount or for Approved Extraordinary Expenses pursuant to Section 2.7.2(i)(B) and which have not been expended therefor are not Unrestricted Cash. 

“Vacant Property” means, individually, and “Vacant Properties” means, collectively, the Properties listed on
Schedule IX attached hereto which are not leased to or occupied by any Tenant as of the Cut-Off Date. The parties hereto agree that Schedule IX shall be revised to reflect the final list of
Vacant Properties agreed to in the Purchase Agreement. 
 “Voluntary Action” means, in respect of any Property, a voluntary
action or omission by any Loan Party or an action or omission by any third party authorized by a Loan Party that, in each case, such Loan Party intends to result in (i) an imposition of a Lien (other than a Permitted Lien) on such Property,
(ii) a Transfer of such Property in violation of this Agreement or (iii) such Property becoming a Disqualified Property. 

“Yield Maintenance Date” means the Payment Date occurring in December 2021. 

“Yield Maintenance Premium” means, with respect to any prepayment of principal (or acceleration of the Loan) prior to
the Yield Maintenance Date (other than payments made pursuant to Section 2.4.2(a) (except where such prepayment arises as a result of a Voluntary Action) or Section 2.4.2(c)), an amount equal to
the sum of the present values calculated for each Payment Date occurring after the date of such prepayment to and including the Yield Maintenance Date of the result of the following: (i) the amount of such prepayment (or the amount of principal
so accelerated), multiplied by (ii) the Interest Rate divided by (iii) twelve (12), discounted monthly to the date of such prepayment at a rate equal to the Treasury Rate, based on a 360 day year of twelve 30-day months. All Yield Maintenance Premium payments hereunder shall be deemed to be earned by Lender upon the funding of the Loan. For purposes of calculating the Yield Maintenance Premium, the term
“Treasury Rate” means a per annum rate (expressed as a monthly equivalent and as a decimal and, in the case of United States Treasury bills, converted to a bond equivalent yield), determined to be the per annum rate equal to
the monthly yield to maturity for United States Treasury securities maturing on the Yield Maintenance Date, as determined by interpolation between the most recent weekly average yields to maturity for two series of United States Treasury securities.

  
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 Section 1.2    Principles of
Construction. All references to sections and schedules are to sections and schedules in or to this Agreement unless otherwise specified. All uses of the word “including” shall mean “including, without limitation” unless
the context shall indicate otherwise. Unless otherwise specified, 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. Unless otherwise specified, all meanings attributed to defined terms herein shall be equally applicable to both the singular and plural forms of the terms so defined. References to Schedules refer to the
cumulative Schedules delivered for each date on which a portion of the Loan is funded, unless otherwise indicated. 
 ARTICLE II - GENERAL
TERMS 
 Section 2.1    Loan Commitment; Disbursement to Borrower. 

2.1.1    Agreement to Lend and Borrow. Subject to and upon the terms and conditions set forth herein,
Lender hereby agrees to make and Borrower hereby agrees to accept the Loan on the Closing Date. 

2.1.2    [Reserved] 

2.1.3    Single Disbursements to Borrower. Borrower may request and receive only one
(1) borrowing hereunder in respect of the Loan, and any amount borrowed and repaid hereunder in respect of the Loan may not be reborrowed. Borrower acknowledges and agrees that the Loan has been fully funded as of the Closing Date. 

2.1.4    The Note, Mortgages and Loan Documents. The Loan shall be evidenced by the Note and secured
by the Mortgages and the other Loan Documents (as the same may be amended from time to time). 

2.1.5    Use of Proceeds. Borrower shall use proceeds of the Loan to (a) make deposits of the
Reserve Funds, (b) make distributions to Equity Owner, (c) pay costs and expenses incurred in connection with the closing of the Loan, and (d) to the extent any proceeds remain after satisfying clauses (a) through
(c) above, for such lawful purpose as Borrower shall designate. 

Section 2.2    Interest Rate. 

2.2.1    Interest Rate. The Loan shall accrue interest throughout the Term at the Interest
Rate. Borrower shall pay to Lender on the dates provided in Section 2.3.1, the interest accrued or to be accrued on the Loan for the related Interest Period. 

2.2.2    Interest Calculation. Interest on the Loan and other Obligations shall be calculated by
multiplying (A) the actual number of days elapsed in the period for which the calculation is being made by (B) a daily rate based on a three hundred sixty (360) day year (that is, the Interest Rate expressed as an annual
rate divided by 360) by (C) the Outstanding Principal Balance or the amount of such other Obligations, as applicable, outstanding during such period. The accrual period for calculating interest due on each Payment Date shall be the
Interest Period in which such Payment Date occurs. 

  
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 2.2.3    Determination of Interest Rate. The Loan shall
bear interest at the Interest Rate, subject to Section 2.2.5. 

2.2.4    [Reserved]. 

2.2.5    Default Rate.In the event that, and for so long as, any Event of Default shall have
occurred and be continuing, the Outstanding Principal Balance of the Loan and, to the extent not prohibited by applicable law, all other portions of the Debt, shall accrue interest at the Default Rate, calculated from the date such payment was due
or, if later, such Default shall have occurred, without regard to any grace or cure periods contained herein. Interest at the Default Rate shall be paid immediately upon demand, which demand may be made as frequently as Lender shall elect, to the
extent not prohibited by applicable law. 
 2.2.6    Usury Savings.This Agreement, the Note and the
other Loan Documents are subject to the express condition that at no time shall Borrower be obligated or required to pay interest on the Outstanding Principal Balance at a rate which could subject Lender to either civil or criminal liability as a
result of being in excess of the Maximum Legal Rate. If, by the terms of this Agreement or the other Loan Documents, Borrower is at any time required or obligated to pay interest on the Loan at a rate in excess of the Maximum Legal Rate, the
Interest Rate or the Default Rate, as the case may be, of the Loan shall be deemed to be immediately reduced to the Maximum Legal Rate and all previous payments in excess of such Maximum Legal Rate shall be deemed to have been payments in reduction
of principal of the Loan and not on account of the interest due hereunder and no Yield Maintenance Premium shall be owing on any such reduction of principal and the provisions of Section 2.4.4 (other than those of
Section 2.4.4(f)) shall apply to any such reduction of principal. All sums paid or agreed to be paid to Lender for the use, forbearance, or detention of the sums due under the Loan, shall, to the extent permitted by
applicable law, be amortized, prorated, allocated, and spread throughout the full stated term of the Loan until payment in full so that the rate or amount of interest on account of the Loan does not exceed the Maximum Legal Rate of interest from
time to time in effect and applicable to the Loan for so long as the Loan is outstanding. 

Section 2.3    Loan Payment. 

2.3.1    Monthly Debt Service Payments. Borrower shall pay to Lender (a) on the Closing Date, an
amount equal to interest only on the Outstanding Principal Balance from the Closing Date up to and including December 14, 2017, which interest shall be calculated in accordance with the provisions of Section 2.2 and
(b) on the Payment Date occurring on January 9, 2018, and each Payment Date thereafter up to and including the Maturity Date, a payment of interest to Lender equal to the Monthly Debt Service Payment Amount, which amount shall be applied
in accordance with Article II. On each Payment Date, Borrower shall also pay to Lender all amounts required in respect of Reserve Funds as set forth in Article VI. 

2.3.2    Payments Generally. For purposes of making payments hereunder, but not for purposes of
calculating Interest Periods, if the day on which such payment is due is not a Business Day, then amounts due on such date shall be due on the immediately preceding Business Day and with respect to payments of principal due on the Maturity
Date, interest shall be payable at the Interest Rate or the Default Rate, as the case may be, through and including the last day of the related Interest Period. All amounts due under this Agreement and the other Loan Documents shall be payable
without setoff, counterclaim, defense or any other deduction whatsoever. 

  
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 2.3.3    Payment on Maturity Date. Borrower shall pay to
Lender on the Maturity Date the Outstanding Principal Balance, all accrued and unpaid interest and all other amounts due hereunder and under the Note, the Mortgage Documents and the other Loan Documents. 

2.3.4    Late Payment Charge. If any principal, interest or any other sums due under the Loan
Documents (including the amounts due on the Maturity Date) are not paid by Borrower on or prior to the date on which it is due, Borrower shall pay to Lender upon demand an amount equal to the lesser of four percent (4%) of such unpaid sum or the
Maximum Legal Rate in order to defray the expense incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss of the use of such delinquent payment. Any such amount shall be secured by the Mortgages
and the other Loan Documents to the extent permitted by applicable law. 
 2.3.5    Method and Place of
Payment. Except as otherwise specifically provided herein, all payments and prepayments under this Agreement and the Note shall be made to Lender not later than 11:00 a.m., New York City time, on the date when due and shall be made in lawful
money of the United States of America in immediately available funds at Lender’s office or as otherwise directed by Lender, and any funds received by Lender after such time shall, for all purposes hereof, be deemed to have been paid on the next
succeeding Business Day. Unless otherwise specified by the Agent in writing, all payments received by Lender shall be allocated pro rata to each Lender in accordance with its allocated portion of the Outstanding Principal Balance. 

Section 2.4    Prepayments and Substitutions. 

2.4.1    Voluntary Prepayments. Upon timely delivery by Borrower to Lender of a Prepayment Notice,
Borrower may prepay all or any portion of the Outstanding Principal Balance and any other amounts outstanding under the Note, this Agreement, the Mortgage Documents and any of the other Loan Documents, on any Business Day provided that Borrower
shall comply with the provisions of and pay to Lender the amounts set forth in Section 2.4.4. Each such prepayment shall be in a minimum principal amount equal to $1,000,000 and in integral multiples of $100,000 in excess
thereof (provided that if any such prepayment is made in connection with the determination that a Property is a Non-Conforming Property or in connection with a TIP Purchase Price Adjustment, no minimum
principal amount or required increment shall apply to such prepayment) and shall be made and applied in the manner set forth in Section 2.4.4. 

2.4.2    Mandatory Prepayments. 

(a)    Disqualified Properties. If at any time any Property shall become a Disqualified Property, Borrower shall, no
later than the close of business on the fifth (5th) Business Day following the last day of the applicable Cure Period, give notice thereof to Lender and prepay the Debt in the applicable Release
Amount with respect to such Property. No Yield 

  
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Maintenance Premium shall be owing on any such prepayment unless such Property became a Disqualified Property as a result of a Voluntary Action. After the prepayment of the Debt by the Release
Amount with respect to a Disqualified Property as provided above, (i) if the breach or failure that resulted in such Property becoming a Disqualified Property relates solely to such Disqualified Property, such breach or failure shall be deemed
cured and shall not result in a Default or Event of Default under this Agreement or any other Loan Document, and (ii) Lender shall release the Disqualified Property from the applicable Mortgage Documents and related Lien;
provided, that (x) Borrower has delivered to Lender a draft release (and, in the event the Mortgage and the Collateral Assignment of Leases and Rents applicable to the Disqualified Property encumbers other Property(ies) in
addition to the Disqualified Property, such release shall be a partial release that relates only to the Disqualified Property and does not affect the Liens and security interests encumbering or on the other Property(ies)) in form and substance
appropriate for the jurisdiction in which such Disqualified Property is located and shall contain standard provisions protecting the rights of Lender and (y) Borrower shall pay all costs, taxes and expenses associated with such release
(including, without limitation, cost to file and record the release and Lender’s reasonable attorneys’ fees). Notwithstanding the foregoing, in lieu of such prepayment, Borrower may either (1) deposit an amount equal to one hundred
percent (100%) of the Allocated Loan Amount for such Disqualified Property in the Eligibility Reserve Subaccount in accordance with and subject to Section 6.5 or (2) substitute a Disqualified Property or a portfolio of
Disqualified Properties (each, an “Affected Property” and collectively, the “Affected Properties”) with a substitute Eligible Property or a portfolio of Eligible Properties (each, a “Substitute
Property” and collectively, the “Substitute Properties”); and upon such deposit or substitution, if the breach or failure that resulted in such Property becoming a Disqualified Property relates solely to such Disqualified
Property, such breach or failure shall be deemed to be cured and shall not result in a Default or Event of Default under this Agreement or any other Loan Document; provided that, in the case of a proposed substitution, the following
conditions are satisfied: 
 (i)    each substitute Eligible Property shall be a detached single family
residential real property or a condominium or townhome (so long as condominium units and townhomes constitute no more than two percent (2%) of the Properties by BPO Value and provided no condominium that is a Substitute Property shall consist of
more than one single family unit), but excluding housing cooperatives and manufactured housing; 

(ii)    no Event of Default shall have occurred and be continuing except as related to, and cured by the
removal of, the Affected Property being substituted; 
 (iii)    Lender shall have obtained, at
Borrower’s sole cost and expense, a Broker Price Opinion for the applicable Affected Property or Affected Properties and the applicable Substitute Property or Substitute Properties and based on such Broker Price Opinion(s), the Substitute
Property (or portfolio of Substitute Properties) shall have the same or greater BPO Value as the greater of (x) the BPO Value of the Affected Property (or portfolio of Affected Properties) being substituted as of the Closing Date and
(y) the BPO Value of the Affected Property (or portfolio of Affected Properties) being substituted at the time of substitution; 

  
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 (iv)    Borrower shall deliver to Lender an Officer’s
Certificate stating that each Substitute Property satisfies each of the Property Representations and is in compliance with each of the Property Covenants on the date of the substitution after giving effect to the substitution; 

(v)    there is an Eligible Lease for each Substitute Property; 

(vi)    the in place Rents under the Lease(s) for the Substitute Property (or Substitute Properties, if a
portfolio of Affected Properties are being substituted) shall be equal to or greater than the greater of (A) the in place Rents under the Lease(s) for the Affected Property (or portfolio of Affected Properties) being substituted measured as of
the time of substitution and (B) the in place Rents under the Lease(s) for the Affected Property (or portfolio of Affected Properties) being substituted measured as of the Closing Date; 

(vii)    simultaneously with the substitution, Borrower shall convey all of Borrower’s right, title
and interest in, to and under the Affected Property (or portfolio of Affected Properties) being substituted to a Person other than a Loan Party and Borrower shall deliver to Lender a copy of the deed conveying all of Borrower’s right, title and
interest in such Affected Property (or portfolio of Affected Properties) being substituted; provided that the Borrower may contribute the Affected Property (or portfolio of Affected Properties) to Borrower TRS prior to the transfer
thereof to a third party; 
 (viii)    Borrower shall deliver on or prior to the date of substitution
evidence satisfactory to Lender that each Substitute Property is insured pursuant to Policies meeting the requirements of Article V; 

(ix)    Borrower shall deliver to Lender the deed, Title Insurance Owner’s Policy and the Lease with
respect to each Substitute Property; 
 (x)    Borrower shall have executed and delivered to Lender, the
Mortgage Documents with respect to each Substitute Property, which shall be in substantially the same form as the Mortgage, Collateral Assignment of Leases and Rents and Fixture Filing, if applicable, executed and/or delivered on the Closing Date
with such changes as may be necessitated or appropriate (as reasonably determined by Lender) for the jurisdiction in which the Substitute Property is located, and which may, in Lender’s reasonable discretion, be Mortgage Documents with
respect to only such Substitute Property (and in the event the Substitute Property is located in the same county or parish in which one or more other Properties (other than the Affected Property or Affected Properties being substituted) is located,
such Mortgage and Collateral Assignment of Leases and Rents may be in the form of an amendment and spreader agreement to the existing Mortgage and Collateral Assignment of Leases and Rents covering such Property or Properties located in the same
county or parish as the Substitute Property, in each case, in form and substance reasonably acceptable to Lender) (the “Substitute Mortgage Documents”); 

  
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 (xi)    Borrower shall deliver to Lender the following
opinions of counsel: (A) an opinion of counsel admitted to practice under the laws of the state in which the Substitute Property (or portfolio of Substitute Properties) being substituted is located in form and substance reasonably satisfactory
to Lender opining as to the enforceability of the Substitute Mortgage Documents with respect to the Substitute Property and (B) an opinion stating that the Substitute Mortgage Documents were duly authorized, executed and delivered by Borrower
and that the execution and delivery of such Substitute Mortgage Documents and the performance by Borrower of its obligations thereunder will not cause a breach or a default under, any agreement, document or instrument to which Borrower is a party or
to which it or the Properties are bound and otherwise in form and substance reasonably satisfactory to Lender; 

(xii)    Lender shall have received a Title Insurance Policy for the Substitute Property (or, in the event
a Substitute Property is located in the same county or parish in which one or more other Properties (other than an Affected Property being substituted) is located, an endorsement to the existing Title Insurance Policy with respect to such Property
or Properties located in the same county or parish as such Substitute Property in form and substance reasonably satisfactory to Lender) insuring the Lien of the Mortgage encumbering such Substitute Property as a valid first lien on such Substitute
Property, free and clear of all exceptions other than the Permitted Liens; 
 (xiii)    each Substitute
Property shall be located in a metropolitan statistical area that contains at least one property described on the Properties Schedule as of the Closing Date, 

(xiv)    no acquisition of a Substitute Property will result in Borrower or any Loan Party incurring any
Indebtedness (except as permitted by this Agreement); 
 (xv)    the aggregate Allocated Loan Amounts of
the Disqualified Properties being substituted, together with the aggregate Allocated Loan Amounts of all Disqualified Properties that have been substituted with Substitute Properties since the Closing Date, shall be no more than ten percent (10%) of
the Outstanding Principal Balance; 
 (xvi)    if any Lien, litigation or governmental proceeding is
existing or pending or, to the actual knowledge of a Responsible Officer of a Loan Party, threatened against any Affected Property being substituted with a Substitute Property or against such Substitute Property which may result in liability for
Borrower, Borrower shall have deposited with Lender reserves reasonably satisfactory to Lender as security for the satisfaction of such liability; and 

(xvii)    Borrower shall pay to Lender all reasonable out-of-pocket costs and expenses incurred by Lender in connection with the substitution (including, without limitation, reasonable
out-of-pocket costs and expenses incurred by Lender in connection with the release of the Affected Property (or portfolio of Affected Properties) being substituted from
applicable Mortgage Documents) and, in addition, the fee specified on Schedule VI as being assessed by Servicer to effect releases or assignments. 

  
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 Any such deposit in the Eligibility Reserve Subaccount or any such substitution shall be completed no later than
the due date for the prepayment required under this Section 2.4.2(a). 
 Simultaneously with the substitution of a Affected
Property, Lender shall release the Affected Property or Affected Properties from the applicable Mortgage Documents and related Lien, provided that Borrower has delivered to Lender a draft release (and, in the event the Mortgage and the
Collateral Assignment of Leases and Rents applicable to the Affected Property or Affected Properties encumbers other Property(ies) in addition to the Affected Property or Affected Properties, such release shall be a partial release that relates only
to the Affected Property or Affected Properties being substituted and does not affect the Liens and security interests encumbering or on the other Property(ies)) in form and substance appropriate for the jurisdiction in which such Affected Property
or Affected Properties are located which contains standard provisions protecting the rights of Lender. 

(b)    Transfer. If at any time any Property is sold or otherwise disposed of (other than, for the avoidance of
doubt, to Borrower TRS), then Borrower shall, no later than the close of business on the day on which such Transfer occurs, give notice thereof to Lender and prepay the Debt in the applicable Release Amount with respect to such Property in
accordance with Section 2.5. 
 (c)    Condemnation or Casualty. If Borrower is
required to make any prepayment under Section 5.3 or Section 5.4 as a result of a Condemnation or Casualty, on the next occurring Payment Date following the date on which Lender actually receives
the applicable Net Proceeds, such Net Proceeds, up to the amount required to be prepaid as provided in Section 5.3 or Section 5.4, as applicable, shall be applied to the prepayment of the Debt in
accordance with Section 2.4.4(d). For the avoidance of doubt, no Yield Maintenance Premium shall be due in connection with any prepayment made pursuant to this Section 2.4.2(c). 

(d)    Application of Mandatory Prepayments. Each such prepayment shall be made and applied in the manner set forth
in Section 2.4.4. 
 (e)    Payment from Cash Management Account. Lender may collect
any prepayment required under this Section 2.4.2 from the Cash Management Account on the date such prepayment is payable hereunder. 

(f)    Substitution for TIP Properties. In addition to the substitution right for Disqualified Properties permitted
under Section 2.4.2(a), Borrower may also substitute a TIP Property or a portfolio of TIP Properties (whether or not such TIP Property is also a Disqualified Property) with a substitute Eligible Property or portfolio of
Eligible Properties; provided that in the case of a proposed substitution for TIP Properties, (i) each of the conditions set forth in clauses (i) through (xvii) of clause (a) above are satisfied as though
the TIP Property or Properties were the Affected Property or Properties (except, in the case of clause (xv), an additional fifteen percent (15%) limit for TIP Properties, measured against Outstanding Principal Balance, shall be permitted) and
(ii) the conditions set forth in each of the two paragraphs following clause (xvii) above are satisfied. 

  
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 (g)    TIP Purchase Price Adjustment. Borrower shall, on the Payment
Date next following receipt of any TIP Purchase Price Adjustment, prepay the Loan in an amount equal to the TIP Purchase Price Adjustment. 

2.4.3    Prepayments After Default. 

(a)    If, during the continuance of an Event of Default, payment of all or any part of the Debt is tendered by Borrower
and accepted by Lender or is otherwise recovered by Lender (including through application of any Reserve Funds), such tender or recovery shall be deemed to be a voluntary prepayment by Borrower and Borrower shall pay, as part of the Debt, all of:
(i) all accrued interest calculated at the Interest Rate on the amount of principal being prepaid through and including the date of such prepayment together with an amount equal to the interest that would have accrued at the Interest Rate on
the amount of principal being prepaid through the end of the Interest Period in which such prepayment occurs, notwithstanding that such Interest Period extends beyond the date of prepayment and (ii) an amount equal to the Yield Maintenance
Premium (if made before the Yield Maintenance Date). 
 (b)    Notwithstanding anything contained herein to the
contrary, upon the occurrence and during the continuance of any Event of Default, any payment of principal, interest and other amounts payable under the Loan Documents from whatever source may be applied by Lender among the Loan and other
Obligations as Lender shall determine in its sole and absolute discretion. 
 2.4.4    Prepayment/Repayment
Conditions. 
 (a)    On the date on which a prepayment, voluntary or mandatory, is made under the Note or as
required under this Agreement, which date must be a Business Day, Borrower shall pay to Lender: 

(i)    all accrued and unpaid interest calculated at the Interest Rate on the amount of principal being
prepaid through and including the Repayment Date, together with an amount equal to the interest that would have accrued at the Interest Rate on the amount of principal being prepaid through the end of the Interest Period in which such prepayment
occurs, notwithstanding that such Interest Period extends beyond the date of prepayment; 

(ii)    [reserved]; 

(iii)     [reserved]; 

(iv)    unless such prepayment is made in connection with a TIP Purchase Price Adjustment or the
determination that a Property is a Non-Conforming Property (in which cases no Yield Maintenance Premium shall be due or payable in connection with such prepayment), if such prepayment occurs prior to the Yield
Maintenance Date, the Yield Maintenance Premium applicable thereto; provided that no Yield Maintenance Premium shall be due in connection with a prepayment under Section 2.4.2(a) (except where such prepayment
arises as a result of a Voluntary Action), Section 2.4.2(c), or Section 2.4.2(g); and 

  
 46 

 (v)    all other sums, then due under the Note, this
Agreement and the other Loan Documents. 
 (b)    [Reserved]. 

(c)    Borrower shall pay all reasonable
out-of-pocket costs and expenses of Lender incurred in connection with the repayment or prepayment (including without limitation reasonable attorneys’ fees and
expenses and reasonable out-of-pocket costs and expenses related to the Transfer or substitution of any Property); provided, for the avoidance of doubt,
this provision shall not apply with respect to Taxes. 
 (d)    Except during an Event of Default, prepayments shall be
applied by Lender in the following order of priority: (i) first, to any amounts (other than principal, interest, and Yield Maintenance Premium) then due and payable under the Loan Documents, including any reasonable out-of-pocket costs and expenses of Lender in connection with such prepayment; (ii) second, to interest payable pursuant to
Section 2.4.4(a)(i) on the amount of principal being prepaid pursuant to this clause (d) at the Interest Rate; (iii) third, to Yield Maintenance Premium, to the extent applicable, on the principal
being prepaid pursuant to this clause (d); and (iv) fourth, to principal, applied as set forth in clause (e) below. 

(e)    Except during an Event of Default, prepayments of principal of the Loan made pursuant to this
Section 2.4.4 shall be applied to the Loan until the Outstanding Principal Balance of the Loan is reduced to zero. 

(f)    Prepayments under Section 2.4.1 shall reduce the Allocated Loan Amounts for each Property
on a pro rata basis; provided, that any prepayments under Section 2.4.1 made in connection with any determination that a Property is a Non-Conforming Property shall
reduce the Allocated Loan Amount with respect to the applicable Property. Prepayments under Section 2.4.2 shall reduce the Allocated Loan Amount with respect to the applicable Property, until the Allocated Loan Amount and
any interest, fees or other Obligations related thereto is zero and any excess portion of such prepayment shall be applied to reduce the Allocated Loan Amounts for the remaining Properties on a pro rata basis. 

(g)    Lender shall, upon the written request and at the expense of Borrower, upon payment in full of the Debt in
accordance with the terms and provisions of the Loan Documents, release the Liens of the Mortgage Documents and cause the trustees under any of the Mortgages to reconvey the applicable Properties to Borrower. In connection with the releases of the
Liens, Borrower shall submit to Lender, forms of releases of Liens (and related Loan Documents) for execution by Lender. Such releases shall be the forms appropriate in the jurisdictions in which the Properties are located and contain standard
provisions protecting the rights of Lender. In addition, Borrower shall provide all other documentation Lender reasonably requires to be delivered by Borrower in connection with such releases, together with an Officer’s Certificate certifying
that such documentation (i) is in compliance with all Legal Requirements, and (ii) will effect such release in accordance with the terms of this Agreement. Borrower shall pay all out-of-pocket costs, taxes and expenses associated with the release of the Liens of the Mortgage Documents, including Lender’s reasonable attorneys’ fees. 

  
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 Section 2.5    Release of Property.
Borrower and Borrower TRS may Transfer any Property or obtain a release of any Non-Conforming Property upon a prepayment of the Loan as provided for in Section 2.4.1 (each, a
“Release Property”) and Lender shall release the Release Property from the applicable Mortgage Documents and release the security interest and Lien on any Collateral located at such Release Property, provided that the following
conditions precedent to such Transfer are satisfied (the “Release Conditions”); provided, that, for the avoidance of doubt, the Release Conditions do not need to be satisfied in order for Lender to release its security
interest and Lien on any Disqualified Property in connection with any substitution in accordance with Section 2.4.2(a): 

(a)    Borrower shall submit to Lender, not less than ten (10) Business Days prior to the Transfer Date, a Request
for Release, together with all attachments thereto and evidence reasonably satisfactory to Lender that the conditions precedent set forth in this Section 2.5 will be satisfied upon the consummation of such Transfer (for the
avoidance of doubt, no Request for Release needs to be provided in connection with a contribution of a Release Property from Borrower to Borrower TRS prior to the Transfer thereof to such third party); 

(b)    No Event of Default has occurred and is continuing (other than a
non-monetary Event of Default that is specific to such Release Property to which Section 2.4.2(a) is applicable and would be cured as a result of the release of the Release
Property, so long as a mandatory prepayment is made with respect thereto in accordance with Section 2.4.2(a) (a “Qualified Release Property Default”)); 

(c)    Except with respect to any release of a Non-Conforming Property, the Debt
Yield as of the most recent Calculation Date, after giving pro forma effect for the elimination of the Underwritten Net Cash Flow for the Release Property and the repayment of the Loan in the applicable Release Amount, is at least the greater of
(x) the Closing Date Debt Yield and (y) the actual Debt Yield as of such date; provided, that the condition in this clause (c) shall not be applicable to a Transfer of a Property if the Loan is prepaid in the amount that
is the greater of the applicable Release Amount and 100% of the Net Transfer Proceeds for the Release Property; 

(d)    [Reserved]; 

(e)    Except for (i) a release of the Release Property that is effected in order to cure a Qualified Release
Property Default, (ii) a contribution of any Property to Borrower TRS in compliance with this Agreement, or (iii) a release of a Non-Conforming Property, the Release Property shall be
Transferred pursuant to a bona fide all-cash sale of the Release Property on arms-length terms and conditions; 

(f)    Except for any contribution to Borrower TRS described in subclause (ii) of the foregoing clause (e), on or
prior to the Transfer Date, Borrower shall prepay the Outstanding Principal Balance by an amount equal to the applicable Release Amount for the Release Property and Borrower shall comply with the provisions and pay to Lender the amounts set forth in
Section 2.4.4; 

  
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 (g)    If a Cash Sweep Period is continuing on the Transfer Date, the excess,
if any, of (i) the Net Transfer Proceeds for the Release Property over (ii) the applicable Release Amount for the Release Property and any other amounts payable to Lender in connection with such release shall be deposited into the
Cash Collateral Subaccount; 
 (h)    Borrower shall submit to Lender, not less than five (5) Business Days’
prior to the Transfer Date, a draft release for the applicable Mortgage Documents (and, in the event the Mortgage and the Collateral Assignment of Leases and Rents applicable to the Release Property encumber other Property(ies) in addition to the
Release Property, such release shall be a partial release that relates only to the Release Property and does not affect the Liens and security interests encumbering or on the other Property(ies)) in form and substance appropriate for the
jurisdiction in which the Release Property is located and shall contain standard provisions protecting the rights of Lender. In addition, Borrower shall provide all other documentation of a ministerial or administrative nature that Lender reasonably
requires to be delivered by Borrower in connection with such release or assignment; and 
 (i)    Borrower shall have
paid all taxes and all reasonable out-of-pocket costs and expenses incurred by Lender and/or its Servicer in connection with any such release and, in addition, the fee
specified on Schedule VI as being assessed by Servicer to effect such release. 
 (j)    [Reserved]. 

Section 2.6    Rent Deposit Account. 

(a)    During the Term, Borrower shall establish and maintain one or more bank accounts for the purpose of collecting Rents
(each a “Rent Deposit Account”) at an Eligible Institution selected by Borrower and reasonably approved by Lender (the “Rent Deposit Bank”). Each Rent Deposit Account shall be subject to a Deposit Account Control
Agreement and Borrower and Manager shall have access to and may make withdrawals from and may withhold the deposit of Rent payments from the Rent Deposit Accounts for the sole purpose of making Rent Refunds or removing
Not-Borrower Funds (with the prior approval of the Borrower); provided, that, in no event shall the amount of Rent Refunds and Not-Borrower Funds so
withdrawn from or withheld from the Rent Deposit Accounts during any calendar month exceed two and one-half percent (2.5%) of the total Rents actually deposited into the Rent Deposit Accounts during the prior
calendar month; provided, further, that during the continuance of an Event of Default, Lender may exercise sole control and dominion over the Rent Deposit Accounts and neither Borrower nor Manager shall have the right of
access to, withdraw from or withhold deposits from the Rent Deposit Accounts. Manager may (with the prior approval of the Borrower) direct the Rent Deposit Bank to directly transfer to the Security Deposit Account any security deposits identified by
the Manager that are on deposit in the Rent Deposit Account. All monies now or hereafter deposited into the Rent Deposit Account shall be deemed additional security for the Debt. Subject to the foregoing, Borrower shall cause all Rents that are paid
to or received by Borrower or Manager to be deposited into a Rent Deposit Account or the Cash Management Account within three (3) Business Days after receipt thereof by Borrower or Manager. Borrower shall (or instruct Manager to) cause all
funds on deposit in a Rent Deposit Account to be deposited into the Cash Management Account every second (2nd) Business Day (or more frequently in Borrower’s discretion); provided, that prior to any

  
 49 

 
acceleration of the Loan Borrower may cause Rent Deposit Bank to retain a reasonable amount of funds in the Rent Deposit Accounts with respect to anticipated overdrafts, charge-backs and bank
fees and any minimum balance required by the applicable Deposit Account Control Agreement or account terms for the Rent Deposit Accounts, not in excess of $100,000 in the aggregate. Borrower shall cause any Rents which are paid to Borrower or
Manager via wire or other electronic means to be deposited directly into a Rent Deposit Account or the Cash Management Account. In addition, Borrower shall, and shall cause Manager to, deposit any other Collections (other than (x) Rents, (y)
Insurance Proceeds and Condemnation Proceeds, which shall be deposited into the Casualty and Condemnation Subaccount pursuant to the terms hereof and (z) Net Transfer Proceeds, which shall be deposited into the Cash Management Account pursuant
to the terms hereof) received by or on behalf of Borrower directly into a Rent Deposit Account within three (3) Business Days following receipt thereof. 

(b)    Borrower hereby grants to Lender a first-priority security interest in the Rent Deposit Accounts and all deposits
at any time contained therein and the proceeds thereof and will take all actions necessary to maintain in favor of Lender a perfected first-priority security interest in the Rent Deposit Accounts. All reasonable out-of-pocket costs and expenses for establishing and maintaining the Rent Deposit Accounts shall be paid by Borrower. All monies now or hereafter deposited into the Rent Deposit Accounts shall be deemed
additional security for the Debt. 
 (c)    During the continuance of an Event of Default, Lender may, in addition to
any and all other rights and remedies available to Lender, apply any sums then present in the Rent Deposit Accounts to the payment of the Debt in any order in its sole discretion. 

(d)    Except as provided in clause (a) with respect to Not-Borrower Funds,
the Rent Deposit Accounts shall not be commingled with other monies held by Borrower, Manager or Rent Deposit Bank. 

(e)    Borrower shall not further pledge, assign or grant any security interest in the Rent Deposit Accounts or the monies
deposited therein or permit any lien or encumbrance to attach thereto, or any levy to be made thereon, or any UCC-1 financing statements, except those naming Lender as the secured party, to be filed with
respect thereto. 
 (f)    Borrower shall indemnify Lender and hold Lender harmless from and against any and all
actions, suits, claims, demands, liabilities, losses, damages, obligations and reasonable out-of-pocket costs and expenses (including litigation costs and reasonable
attorneys’ fees and expenses) arising from or in any way connected with the Rent Deposit Accounts and/or the related Deposit Account Control Agreement (unless arising from the gross negligence or willful misconduct of Lender) or the performance
of the obligations for which the Rent Deposit Accounts were established. 

Section 2.7    Cash Management. 

2.7.1    Cash Management Account. 

(a)    During the Term, Borrower shall establish and maintain a segregated Eligible Account (the “Cash Management
Account”) to be held by Cash Management Account 

  
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Bank in trust and for the benefit of Lender, which Cash Management Account shall be under the sole dominion and control of Lender or the Servicer on behalf of Lender. Borrower hereby grants to
Lender a first-priority security interest in the Cash Management Account and all deposits at any time contained therein and the proceeds thereof and will take all actions necessary to maintain in favor of Lender a perfected first-priority security
interest in the Cash Management Account, including, without limitation, filing UCC-1 financing statements and continuations thereof. Borrower will not in any way alter or modify the Cash Management Account.
Lender and Servicer on behalf of Lender shall have the sole right to make withdrawals from the Cash Management Account and all reasonable out-of-pocket costs and
expenses for establishing and maintaining the Cash Management Account shall be paid by Borrower. 
 (b)    The
insufficiency of funds on deposit in the Cash Management Account shall not relieve Borrower from the obligation to make any payments, as and when due pursuant to this Agreement and the other Loan Documents, and such obligations shall be separate and
independent, and not conditioned on any event or circumstance whatsoever. 
 (c)    All funds on deposit in the Cash
Management Account following the occurrence of an Event of Default may be applied by Lender in such order and priority as Lender shall determine. 

(d)    In the event of any Transfer of any Property (except for any contribution of a Property from Borrower to Borrower
TRS permitted under the terms of this Agreement), Borrower or Borrower TRS, as applicable, shall (or shall cause Manager or the closing title company or escrow agent, as applicable, to) deposit directly into the Cash Management Account the Net
Transfer Proceeds for allocation in accordance with the terms of this Agreement. Except as expressly provided herein, Borrower shall, and shall cause Manager to, deposit any other Collections received by or on behalf of Borrower directly into the
Cash Management Account or Rent Deposit Account within three (3) Business Days following receipt thereof; provided, that Insurance Proceeds and Condemnation Proceeds shall be handled in accordance with Sections 5.2,
5.3 and 5.4. 
 (e)    Lender may also establish subaccounts of the Cash Management Account which shall at
all times be Eligible Accounts (and may be ledger or book entry accounts and not actual accounts) (such subaccounts are referred to herein as “Subaccounts”). The Reserve Funds will be maintained in Subaccounts. 

(f)    The Cash Management Account and all other Subaccounts shall be subject to the Blocked Account Control Agreement and
shall be under the sole control and dominion of Lender or Servicer on behalf of Lender. Neither Borrower nor Manager shall have the right of withdrawal with respect to the Cash Management Account or any Subaccounts except with the prior written
consent of Lender, and neither Borrower, Manager, nor any Person claiming on or behalf of or through Borrower or Manager shall have any right or authority to give instructions with respect to the Cash Management Account or the Subaccounts. 

(g)    Borrower acknowledges and agrees that Cash Management Account Bank shall comply with (i) the instructions
originated by Lender with respect to the disposition of funds in the Cash Management Account and the Subaccounts without the further consent of 

  
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Borrower or Manager or any other Person and (ii) all “entitlement orders” (as defined in Section 8-102(a)(8) of the UCC) and
instructions originated by Lender directing the transfer or redemption of any financial asset relating to the Cash Management Account or any Subaccount without further consent by Borrower or any other Person. The Cash Management Account and each
Subaccount is and shall be treated either as a “securities account”, as such term is defined in Section 8-501(a) of the UCC, or a “deposit account”, as defined in Section 9-102(a)(29) of the UCC. 
 (h)    During the Term, Borrower shall not
and shall cause Manager not to deposit Rents or other Collections (other than Insurance Proceeds and Condemnation Proceeds, which shall be deposited into the Casualty and Condemnation Subaccount pursuant to the terms hereof) into any account other
than a Rent Deposit Account or the Cash Management Account. 
 2.7.2    Order of Priority of Funds in Cash
Management Account. Unless otherwise directed by Lender during the continuance of an Event of Default pursuant to Section 2.7.3, on each Payment Date during the Term, Collections on deposit in the Cash Management
Account (less any fees and expenses of the Cash Management Account Bank then due and payable) on such day shall be applied on such Payment Date in the following order of priority: 

(a)    first, to the applicable Security Deposit Account, the amount of any security deposits that have been
deposited into the Cash Management Account by Borrower during the calendar month ending immediately prior to such Payment Date, as set forth in a written notice from Borrower to Lender delivered pursuant to Section 4.3.9;

 (b)    second, to Lender the amount of any mandatory prepayment of the Outstanding Principal Balance pursuant
to Section 2.4.2 then due and payable and all other amounts payable in connection therewith, such amounts to be applied in the manner set forth in Section 2.4.4(d); 

(c)    third, to the Tax Subaccount, to make the required payments of Tax Funds as required under
Section 6.1; 
 (d)    fourth, to the Insurance Subaccount, to make any required
payments of Insurance Funds as required under Section 6.2; 
 (e)    fifth, to Lender,
funds sufficient to pay the Monthly Debt Service Payment Amount; 
 (f)    sixth, to Lender, funds sufficient to
pay the Outstanding Principal Balance of the Loan on the Maturity Date; 
 (g)    seventh, to Manager, management
fees payable for the calendar month ending immediately prior to such Payment Date, but not in excess of the Management Fee Cap for such calendar month; 

(h)    eighth, to the Capital Expenditure Subaccount, to make the required payments of Capital Expenditure Funds as
required under Section 6.3; 

  
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 (i)    ninth, to Lender, any other fees, costs, expenses or
indemnities then due or payable under this Agreement or any other Loan Document; 
 (j)    tenth, if as of such
Payment Date no Cash Sweep Period is continuing, to Manager, all management fees payable for the calendar month ending immediately prior to such Payment Date in excess of the Management Fee Cap for such calendar month and all other amounts due to
Manager under the Management Agreement; 
 (k)    eleventh, all amounts remaining after payment of the amounts
set forth in clauses (a) through (j) above (the “Available Cash”) shall be applied as follows: 

(A)    if as of a Payment Date no Cash Sweep Period is continuing, any remaining amounts to Borrower’s
Operating Account; and 
 (B)    if as of a Payment Date a Cash Sweep Period is continuing: 

(1)    first, to Borrower’s Operating Account, funds in an amount equal to the Monthly
Budgeted Amount; 
 (2)    second, to Borrower’s Operating Account, payments for Approved
Extraordinary Expenses, if any; and 
 (3)    third, to the Cash Collateral Subaccount to be held
or disbursed in accordance with Section 6.6. 
 2.7.3    Application
During Event of Default. Notwithstanding anything to the contrary contained herein (including Section 2.7.2), upon the occurrence and during the continuance of an Event of Default,
Lender, at its option, may apply any Collections then in the possession of Lender, Servicer or the Cash Management Account Bank (including any Reserve Funds on deposit in the Subaccounts) or the Rent Deposit Bank to the payment of the Debt in such
order, proportion and priority as Lender may determine in its sole and absolute discretion. Lender’s right to withdraw and apply any of the foregoing funds shall be in addition to all other rights and remedies provided to Lender under the Loan
Documents. 
 2.7.4    Payments Received in the Cash Management Account. Notwithstanding anything
to the contrary contained in this Agreement or the other Loan Documents, and provided no Event of Default has occurred and is continuing, Borrower’s obligations with respect to the payment of the Monthly Debt Service Payment Amount and amounts
required to be deposited into the Reserve Funds, if any, shall be deemed satisfied to the extent sufficient amounts (taking into account the order and priority set forth in Section 2.7.2) are deposited in the Cash
Management Account to satisfy such obligations pursuant to this Agreement on the dates each such payment is required, regardless of whether any of such amounts are so applied by Lender. 

Section 2.8    Withholding Taxes. 

(a)    Payments Free of Taxes. Any and all payments by or on account of any obligation of Borrower under any
Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law, including FATCA. If any 

  
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applicable law, including FATCA, (as determined in the good faith discretion of Borrower) requires the deduction or withholding of any Tax from any such payment by Borrower, then Borrower
shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable
by Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section 2.8(a)) the Lender receives
an amount equal to the sum it would have received had no such deduction or withholding been made. 

(b)    Payment of Other Taxes by Borrower. Borrower shall timely pay to the relevant Governmental Authority
in accordance with applicable law any Other Taxes. 
 (c)    Indemnification by Borrower. Borrower shall
indemnify Lender, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Lender
or required to be withheld or deducted from a payment to such Lender and any reasonable out-of-pocket expenses arising therefrom or with respect thereto, whether or not
such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to Borrower by Lender shall be conclusive absent manifest error. 

(d)    Evidence of Payments. As soon as practicable after any payment of Taxes by Borrower to a Governmental
Authority pursuant to this Section 2.8, Borrower shall deliver to the Lender the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such
payment or other evidence of such payment reasonably satisfactory to the Lender. 
 (e)    Status of Borrower and
Lenders. 
 (i)    Borrower shall not at any time make an election to be treated as a corporation
for United States federal income tax purposes and shall maintain its tax status as either a “disregarded entity” or “partnership” for United States federal income tax purposes. For the avoidance of doubt, Borrower TRS shall be
permitted to make an election to be treated as a corporation for United States federal income tax purposes. 

(ii)    Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to
payments made under any Loan Document shall deliver to Borrower, at the time or times reasonably requested by Borrower, such properly completed and executed documentation reasonably requested by Borrower as will permit such payments to be made
without withholding or at a reduced rate of withholding. In addition, Lender, if reasonably requested by Borrower, shall deliver such other documentation prescribed by applicable law or reasonably requested by Borrower as will enable Borrower
to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation
(other than such documentation set forth in Section 2.8(e)(iii)(A), 

  
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(iii)(B) and (iii)(D)) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material
unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender. 

(iii)    Without limiting the generality of the foregoing, 

(A)    any Lender that is a U.S. Person shall deliver to Borrower on or prior to the date on which such
Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of Borrower), executed originals of IRS Form W-9 certifying that such Lender is exempt from United
States federal backup withholding tax; 
 (B)    any Foreign Lender shall, to the extent it is legally
entitled to do so, deliver to Borrower (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable
request of Borrower), whichever of the following is applicable: 
 (1)    in the case of a Foreign
Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN (in the
case of an individual) or IRS Form W-8BEN-E (in the case of an entity) establishing an exemption from, or reduction of, United States federal withholding Tax pursuant to
the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN (in the case of an individual) or IRS Form W-8BEN-E (in the case of an entity) establishing an exemption from, or reduction of, United States federal withholding Tax pursuant to the “business profits” or
“other income” article of such tax treaty; 
 (2)    executed originals of IRS Form W-8ECI; 
 (3)    in the case of a Foreign Lender claiming the
benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit G-1 to the effect that such Foreign Lender is not a
“bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation”
described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable; or 
 (4)    to the extent a Foreign
Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS
Form W-8BEN-E, a U.S. Tax 

  
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Compliance Certificate, substantially in the form of Exhibit G-2 or Exhibit G-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided, that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign
Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate, substantially in the Form of Exhibit G-4 on behalf of each such direct and indirect
partner; 
 (C)    any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to
Borrower (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of Borrower),
executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in United States federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by
applicable law to permit Borrower to determine the withholding or deduction required to be made; and 

(D)    if a payment made to a Lender under any Loan Document would be subject to United States federal
withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to
Borrower at the time or times prescribed by law and at such time or times reasonably requested by Borrower such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional
documentation reasonably requested by Borrower as may be necessary for Borrower to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to
deduct and withhold from such payment. Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement. 

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it
shall update such form or certification or promptly notify Borrower in writing of its legal inability to do so. 

(f)    Treatment of Certain Refunds. If any party determines, in its sole discretion exercised in good
faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.8 (including by the payment of additional amounts pursuant to this Section 2.8), it
shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying
party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this Section 2.8(f) (plus any penalties, interest or other charges imposed by the relevant

  
 56 

 
Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this
Section 2.8(f), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this Section 2.8(f) the payment of which would place the indemnified party
in a less favorable net after-tax position than the indemnified party would have been in if the indemnification payments or additional amounts giving rise to such refund had never been paid. This
Section 2.8(f) shall not be construed to require any indemnified party to make available its tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other
Person. 
 (g)    Survival. Each party’s obligations under this Section 2.8
shall survive any assignment of rights by, or the replacement of, a Lender and the repayment, satisfaction or discharge of all obligations under any Loan Document. 

ARTICLE III - REPRESENTATIONS AND WARRANTIES 

Section 3.1    General Representations. Borrower represents and warrants to Lender
as of the Closing Date that, except to the extent (if any) disclosed on Schedule III with reference to a specific subsection of this Section 3.1: 

3.1.1    Organization. Each Loan Party has been duly organized and is validly existing with requisite
power and authority to own its properties and to transact the businesses in which it is now engaged. Each Loan Party is duly qualified to do business and in good standing in each jurisdiction where it is required to be so qualified in connection
with its properties, businesses and operations, except to the extent that failure to do so would not reasonably be expected to have a Material Adverse Effect. Each Loan Party possesses all rights, licenses, permits and authorizations, governmental
or otherwise, necessary to entitle it to own its properties and to transact the businesses in which it is now engaged, except to the extent that failure to do so could not in the aggregate reasonably be expected to have a Material Adverse Effect.
The sole business of Borrower is the acquisition, renovation, rehabilitation, ownership, maintenance, sale, transfer, financing, refinancing, management, leasing and operation of the Properties, acting as the sole member of Borrower TRS and other
activity in furtherance thereof; the sole business of Equity Owner is acting as the sole member of Borrower and any other activity in furtherance thereof, including, providing the Equity Owner Guaranty and the Equity Owner Security Agreement; and
the sole business of Borrower TRS is the acquisition, ownership, maintenance, sale, transfer, financing, refinancing, management, leasing and operation of the Properties and other activity in furtherance thereof, including providing the Borrower TRS
Guaranty and the Borrower TRS Security Agreement. Each Loan Party is a Special Purpose Entity. 

3.1.2    Proceedings. Each Loan Party has taken all necessary action to authorize the execution,
delivery and performance of this Agreement and each of the other Loan Documents to which it is a party. This Agreement and the other Loan Documents have been duly authorized, executed and delivered by or on behalf of each Loan Party party thereto
and constitute legal, valid and binding obligations of each Loan Party party thereto, enforceable against each such Loan Party party thereto in accordance with their respective terms, subject only to applicable bankruptcy, insolvency,
reorganization, moratorium and other similar laws affecting the rights of creditors generally, and subject, as to enforceability, to general principles of equity (regardless of 

  
 57 

 
whether enforcement is sought in a proceeding in equity or at law). The Loan Documents are not subject to any right of rescission, set-off, counterclaim or
defense by any Loan Party including the defense of usury, nor would the operation of any of the terms of the Loan Documents, or the exercise of any right thereunder, render the Loan Documents unenforceable, and no Loan Party has asserted any right
of rescission, set-off, counterclaim or defense with respect thereto. 

3.1.3    No Conflicts. The execution, delivery and performance of this Agreement and the other Loan
Documents by each Loan Party party thereto (a) will not contravene such Loan Party’s organizational documents, (b) will not result in any violation of the provisions of any Legal Requirement of any Governmental Authority having
jurisdiction over any Loan Party or any of each Loan Party’s properties or assets, (c) with respect to each Loan Party, will not conflict with or result in a breach of any of the terms or provisions of, or constitute a default under the
terms of any indenture, mortgage, deed of trust, deed to secure debt, loan agreement, management agreement or other agreement or instrument to which such Loan Party is a party or to, which any of such Loan Party’s property or assets is subject,
that would be reasonably expected to have a Material Adverse Effect and (d) with respect to each Loan Party, except for Liens created under the Loan Documents and the Companion Seller Financing, will not result in or require the creation or
imposition of any Lien upon or with respect to any of the assets of such Loan Party. 

3.1.4    Litigation. There are no actions, suits or proceedings at law or in equity by or before any
Governmental Authority or other entity now pending or, to the actual knowledge of a Responsible Officer or any Loan Party, threatened in writing, against or affecting any Loan Party, which actions, suits or proceedings (a) involve the Loan
Documents or the transactions contemplated thereby or (b) if adversely determined, would reasonably be expected to have a Material Adverse Effect. There are no actions, suits or proceedings at law or in equity by or before any Governmental
Authority or other entity that resulted in a judgment against any Loan Party that has not been paid in full that would otherwise constitute an Event of Default. 

3.1.5    Agreements. No Loan Party is a party to any agreement or instrument or subject to any
restriction which would reasonably be expected to have a Material Adverse Effect. No Loan Party is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement or instrument
to which it is a party which default would be expected to have a Material Adverse Effect. Other than the Loan Documents and the Companion Seller Financing, no Loan Party has a material financial obligation (contingent or otherwise) under any
indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which any Loan Party is a party other than, with respect to Borrower or Borrower TRS, the Management Agreement, the Leases or any other agreement into which
Borrower or Borrower TRS is permitted to enter pursuant to the terms of the Loan Documents or the Companion Seller Financing. 

3.1.6    Consents. No consent, approval, authorization or order of any court or Governmental
Authority is required for the execution, delivery and performance by any Loan Party of, or compliance by any Loan Party with, this Agreement or the other Loan Documents or the consummation of the transactions contemplated hereby and thereby, other
than those which have been obtained by the applicable Loan Party. 

  
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 3.1.7    Solvency. Each Loan Party has (a) not
entered into the transaction contemplated by this Agreement nor executed any Loan Document with the actual intent to hinder, delay or defraud any creditor and (b) received reasonably equivalent value in exchange for its obligations under the
Loan Documents. After giving effect to the Loan, each Loan Party is Solvent. No petition in bankruptcy has been filed against any Loan Party in the last seven (7) years, and no Loan Party in the last seven (7) years has made an assignment
for the benefit of creditors or taken advantage of any insolvency act for the benefit of debtors. No Loan Party is contemplating either the filing of a petition by it under any state or federal bankruptcy or insolvency laws or the liquidation of all
or a major portion of such Person’s assets or property, and to the actual knowledge of any Loan Party, no Person is contemplating the filing of any such petition against any Loan Party. 

3.1.8    Other Debt. No Loan Party has any Indebtedness other than, with respect to Borrower,
Permitted Indebtedness, with respect to Equity Owner, Equity Owner’s Permitted Indebtedness and, with respect to Borrower TRS, Borrower TRS’s Permitted Indebtedness. 

3.1.9    Employee Benefit Matters. 

(a)    Assuming no portion of the assets used by Lender to fund the Loan constitutes the assets of an ERISA Plan, the
assets of each Loan Party do not constitute “plan assets” of (i) any “employee benefit plan” (as defined in Section 3(3) of ERISA) that is subject to Title I of ERISA, (ii) any “plan” (as defined in
Section 4975 of the Code) that is subject to Section 4975 of the Code or (iii) any employee benefit plan or plan that is not subject to Title I of ERISA or Section 4975 of the Code but is subject to any law, rule or regulation
applicable to such Loan Party which is substantially similar to the prohibited transaction provisions of Section 406 of ERISA or Section 4975 of the Code (each of clauses (i), (ii) and (iii), an “ERISA
Plan”) with the result that the transactions contemplated by this Agreement, including, but not limited to, the exercise by Lender of any rights under the Loan Documents will constitute a non-exempt
prohibited transaction within the meaning of Section 406 of ERISA or Section 4975 of the Code. No Loan Party or any of its ERISA Affiliates sponsors, maintains or contributes to any Plans or Foreign Plans. No Loan Party has any employees.

 (b)    Each Plan (and each related trust, insurance contract or fund) is in compliance in all material respects with
its terms and with all applicable laws, including without limitation ERISA and the Code. Each Plan that is intended to be qualified under Section 401(a) of the Code as currently in effect has been determined by the IRS to be so qualified, and
each trust related to any such Plan has been determined to be exempt from federal income tax under Section 501(a) of the Code as currently in effect, and no event has taken place which could reasonably be expected to cause the loss of such
qualified status and exempt status. With respect to each Plan of a Loan Party, each Loan Party and all of its ERISA Affiliates have satisfied the minimum funding standard under Section 412(a) of the Code and Section 302(a) of ERISA and
paid all required minimum contributions and all required installments on or before the due dates under Section 430(j) of the Code and Section 303(j) of ERISA. No Loan Party or any of its ERISA Affiliates has filed, pursuant to
Section 412(c) of the Code or Section 302(c) of ERISA, an application for a waiver of the minimum funding standard. No Loan Party or any of its ERISA Affiliates has incurred any liability to the PBGC which remains outstanding other than
the payment of premiums, and there are no premium payments which have become due which 

  
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are unpaid. No Plan is in “at risk” status within the meaning of Section 430(i) of the Code or Section 303(j) of ERISA. There are no existing, pending or threatened in writing
claims (other than routine claims for benefits in the normal course), sanctions, actions, lawsuits or other proceedings or investigation involving any Plan to which any Loan Party or any of its ERISA Affiliates has incurred or otherwise has or could
have an obligation or any liability. With respect to each Multiemployer Plan to which any Loan Party or any of its ERISA Affiliates is required to make a contribution, each Loan Party and all of its ERISA Affiliates have satisfied all required
contributions and installments on or before the applicable due dates and have not incurred a complete or partial withdrawal under Section 4203 or 4205 of ERISA. No Plan Termination Event has or is reasonably expected to occur. 

(c)    Each Foreign Plan is in compliance in all material respects with all laws, regulations and rules applicable thereto
and the respective requirements of the governing documents for such plan. The aggregate of the liabilities to provide all of the accrued benefits under each Foreign Plan does not exceed the current fair market value of the assets held in the trust
or other funding vehicle for such plan. There are no actions, suits or claims (other than routine claims for benefits) pending or threatened against any Loan Party or any of its ERISA Affiliates with respect to any Foreign Plan. 

3.1.10    Compliance with Legal Requirements. Each Loan Party is in compliance with all applicable
Legal Requirements, except to the extent that any noncompliance would not reasonably be expected to have a Material Adverse Effect. No Loan Party is in default or violation of any order, writ, injunction, decree or demand of any Governmental
Authority, except for any default or violation that would not reasonably be expected to have a Material Adverse Effect. 

3.1.11    Financial Information. All financial data that have been delivered to Lender in connection
with the Loan (a) are true, complete and correct in all material respects (or, to the extent that any such financial data was incorrect in any material respect when delivered, the same has been corrected by financial data subsequently delivered
to Lender prior to the Closing Date), (b) accurately represent the financial condition of the Properties as of the date of such reports (or, to the extent that any such financial data did not accurately represent the financial condition of
the Properties when delivered, the same has been corrected by financial data subsequently delivered to Lender prior to the Closing Date), and (c) have been prepared in accordance with GAAP throughout the periods covered, except as disclosed
therein. The foregoing representation shall not apply to any such financial data that constitutes projections, provided that Borrower represents and warrants that such projections were made in good faith and that Borrower has no reason
to believe that such projections were materially inaccurate. Borrower does not have any contingent liabilities, liabilities for taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments that
are known to Borrower and would reasonably be expected to have a Material Adverse Effect, except as referred to or reflected in said financial statements. Borrower has no liabilities or other obligations that arose or accrued prior to the Closing
Date that would reasonably be expected to have a Material Adverse Effect. Borrower has no known material contingent liabilities. 

3.1.12    Insurance. Borrower has obtained and delivered to Lender certificates evidencing the
Policies required to be maintained under Section 5.1.1. All such Policies are in 

  
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full force and effect, with all premiums prepaid thereunder. No claims have been made that are currently pending, outstanding or otherwise remain unsatisfied under any such Policies that would
reasonably be expected to have a Material Adverse Effect. With respect to any Policy, neither Borrower nor, to Borrower’s knowledge, any other Person, has done, by act or omission, anything which would impair the coverage of any of the Policies
in any material respect. 
 3.1.13    Tax Filings. Each Loan Party has filed, or caused to be
filed, on a timely basis all Tax returns (including, without limitation, all foreign, federal, state, local and other Tax returns) required to be filed by it, if any, is not liable for Non-Property Taxes
payable by any other Person and has paid or made adequate provisions for the payment of all Non-Property Taxes (to the extent such Taxes, assessment and other governmental charges exceed $100,000 in the
aggregate) payable by such Loan Party except as permitted by Section 4.1.4 or 4.4.5. All material recording or other similar taxes required to be paid by any Loan Party under applicable Legal Requirements
currently in effect in connection with the execution, delivery, recordation, filing, registration, perfection or enforcement of any of the Loan Documents have been paid. 

3.1.14    Certificate of Compliance; Licenses. All certifications, permits, licenses and approvals,
including without limitation, certificates of completion and occupancy, required of Borrower for the legal use, occupancy and operation of each Property have been obtained and are in full force and effect, except as would not reasonably be expected
to have a Material Adverse Effect. The use being made of each Property is in conformity with the certificate of occupancy issued for such Property, if any. 

3.1.15    Special Purpose Entity/Separateness. 

(a)    Since its formation, no Loan Party has conducted any business other than entering into and performing its
obligations under the Loan Documents to which it is a party and as described in the definition of Special Purpose Entity herein. As of the Closing Date, no Loan Party owns or holds, directly or indirectly (i) any capital stock or equity
security of, or any equity interest in, any Person other than a Loan Party or (ii) any debt security or other evidence of indebtedness of any Person, except for Permitted Investments and as otherwise contemplated by the Loan Documents or the
Companion Seller Financing. As of the Closing Date, Borrower does not have any subsidiaries other than Borrower TRS, and Borrower TRS has no subsidiaries. 

(b)    Any and all of the stated facts and assumptions made in the Insolvency Opinion, including, but not limited to, any
exhibits attached thereto, will have been and shall be true and correct in all respects, and each Loan Party will have complied and will comply in all material respects, with all of the stated facts and assumptions made with respect to it in the
Insolvency Opinion. Each entity other than a Loan Party with respect to which an assumption is made or a fact stated in any Insolvency Opinion will have complied and will comply, in all material respects, with all of the assumptions made and facts
stated with respect to it in the Insolvency Opinion. Borrower covenants that in connection with any Additional Insolvency Opinion delivered in connection with this Agreement it shall provide an updated certification regarding compliance with the
facts and assumptions made therein, which certificate shall be substantially similar to the representations made in this Section 3.1.15(b) and the definition of Special Purpose Entity. 

  
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 (c)    Borrower covenants and agrees that Borrower shall provide Lender with
thirty (30) days’ prior written notice prior to the removal of an Independent Director of any Loan Party. 

3.1.16    Management. The ownership, leasing, management and collection practices used by each Loan
Party with respect to the Properties have been in compliance with all applicable Legal Requirements, and all necessary licenses, permits and regulatory requirements pertaining thereto have been obtained and remain in full force and effect, except to
the extent that any such noncompliance and/or any such failure would not reasonably be expected to have a Material Adverse Effect. The Management Agreement is in full force and effect and there is no default thereunder by any party thereto and no
event has occurred that, with the passage of time and/or the giving of notice would constitute a default thereunder. 

3.1.17    Illegal Activity. None of the Properties has been purchased with proceeds of any illegal
activity. 
 3.1.18    No Change in Facts or Circumstances; Disclosure. All information, reports,
financial statements, exhibits and schedules furnished in writing by or on behalf of each Loan Party to Lender in connection with the negotiation, preparation or delivery of this Agreement and the other Loan Documents or included herein or therein
or delivered pursuant hereto or thereto (but excluding any projections, forward looking statements, budgets, estimates and general market data as to which each Loan Party only represents and warrants that such information was prepared in good faith
based upon assumptions believed by it to be reasonable at the time), when taken as a whole, as of the date furnished, do not contain any untrue statement of material fact or omit to state any material fact necessary to make the statements
herein or therein, in light of the circumstances under which they were made, not materially misleading. There has been no material adverse change in any condition, fact, circumstance or event that would make any such information inaccurate,
incomplete or otherwise misleading in any material respect or that otherwise does or might result in a Material Adverse Effect. 

3.1.19    Investment Company Act. No Loan Party is an “investment company” or a company
“controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended. 

3.1.20    Federal Reserve Regulations. No part of the proceeds of the Loan will be used by Borrower
or its Affiliates for the purpose of purchasing or acquiring any “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (“Margin Stock”) or for any other purpose which
would be inconsistent with such Regulation U or any other Regulations of such Board of Governors, or for any purposes prohibited by Legal Requirements in any material respects or by the terms and conditions of this Agreement or the other Loan
Documents. None of the Collateral is comprised of Margin Stock and less than twenty-five percent (25%) of the assets of each Loan Party are comprised of Margin Stock. 

3.1.21    Bank Holding Company. Borrower is not a “bank holding company” or a direct or
indirect subsidiary of a “bank holding company” as defined in the Bank Holding Company Act of 1956, as amended, and Regulation Y thereunder of the Board of Governors of the Federal Reserve System. 

  
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 3.1.22    FIRPTA. No Loan Party is a “foreign
person” within the meaning of Section 1445(f)(3) of the Code. 
 3.1.23    Contracts.

 (a)    Neither Borrower nor Borrower TRS has entered into, and neither is bound by, any Major Contract which continues
in existence, except those previously disclosed in writing to Lender. 
 (b)    Each of the Major Contracts is in full
force and effect, there are no material defaults by Borrower thereunder and, to the knowledge of Borrower, there are no monetary or other material defaults thereunder by any other party thereto. None of Borrower or any Affiliate of Borrower acting
on Borrower’s behalf has given or received any notice of default under any of the Major Contracts that remains uncured or in dispute. 

(c)    Borrower has delivered copies of the Major Contracts (including all amendments and supplements thereto) to Lender
that are true, correct and complete in all material respects. 
 (d)    No Major Contract has as a party an Affiliate of
Borrower. 
 3.1.24    Embargoed Person. 

(a)    No Loan Party nor any of its respective officers, directors or members is a Person (or to Borrower’s knowledge,
controlled by a Person): (i) that is listed on a Government List, (ii) is otherwise subject to the provisions of Executive Order 13224 issued on September 24, 2001, (iii) has been previously indicted for or convicted of any felony
involving a crime of moral turpitude or any Patriot Act Offense, or (iv) is currently under investigation by any Governmental Authority for alleged felony involving a crime of moral turpitude. For purposes hereof, the term “Patriot Act
Offense” means any violation of the criminal laws of the United States of America or of any of the several states, or that would be a criminal violation if committed within the jurisdiction of the United States or any of the several states,
relating to terrorism or the laundering of monetary instruments, including any offense under (A) the criminal laws against terrorism; (B) the criminal laws against money laundering, (C) the Bank Secrecy Act, as amended, (D) the
Money Laundering Control Act of 1986, as amended, or (E) the Patriot Act. “Patriot Act Offense” also includes the crimes of conspiracy to commit, or aiding and abetting another to commit, a Patriot Act Offense. 

(b)    At the time Borrower first entered into a Lease with each Tenant (excluding any Carry-Over Tenant), no such Tenant
was listed on either of the Government Lists described in Section 4.1.20. 

3.1.25    Perfection Representations. 

(a)    The Borrower Security Agreement and the Equity Owner Security Agreement and the Borrower TRS Security Agreement
create valid and continuing security interests (as defined in the applicable UCC) in the personal property Collateral in favor of Lender, which security interests are prior to all other Liens arising under the UCC, subject to

  
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Permitted Liens, and are enforceable as such against creditors of the relevant Loan Party, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
similar laws affecting creditors’ rights and remedies generally, and to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity); 

(b)    All appropriate financing statements have been, or will simultaneously with the execution of this Agreement be,
filed in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect the security interest granted to Lender hereunder in the Collateral that may be perfected by filing a financing statement; 

(c)    Other than the security interest granted to Lender pursuant to the Loan Documents or the Companion Seller
Financing, no Loan Party has pledged, assigned, collaterally assigned, sold, granted a security interest in, or otherwise conveyed any of the Collateral except to the extent expressly permitted by the terms hereof. No Loan Party has authorized the
filing of or is aware of any financing statements against any Loan Party that include a description of the Collateral other than any financing statement relating to the security interest granted to Lender hereunder and Liens relating to the
Companion Seller Financing or that has been terminated. 
 (d)    No instrument or document that constitutes or
evidences any Collateral has any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than Lender. 

(e)    The grant of the security interest in the Collateral by each Loan Party to Lender, pursuant to the Borrower
Security Agreement and the Equity Owner Security Agreement and the Borrower TRS Security Agreement is in the ordinary course of business for each Loan Party and is not subject to the bulk transfer or any similar statutory provisions in effect in any
applicable jurisdiction. 
 (f)    The chief executive office and the location of each Loan Party’s records
regarding the Collateral are listed on Schedule IV. Except as otherwise disclosed to Lender in writing, each Loan Party’s legal name is as set forth in this Agreement, each Loan Party has not changed its name since its formation.
Except as otherwise listed on Schedule IV, each Loan Party does not have tradenames, fictitious names, assumed names or “doing business as” names and each Loan Party’s federal employer identification number and Delaware
organizational identification number is set forth on Schedule IV. 

Section 3.2    Property Representations. Borrower represents and warrants
to Lender with respect to each Property as follows: 
 3.2.1    Property/Title.

 (a)    Borrower has good and marketable fee simple legal and equitable title to the real property comprising the
Property, subject to Permitted Liens. The Mortgage Documents, when properly recorded and/or filed in the appropriate records, will create (i) a valid, first priority, perfected Lien on Borrower’s interest in the Property, subject only to
the Permitted Liens, and (ii) perfected security interests in and to, and perfected collateral assignments of, all personalty (including the Leases), all in accordance with the terms thereof, in each case subject only to the Permitted Liens.
The Permitted Liens with respect to the Property, in the aggregate, do not have an Individual Material Adverse Effect on such Property. 

  
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 (b)    All transfer taxes, deed stamps, intangible taxes or other amounts in
the nature of transfer taxes required to be paid under applicable Legal Requirements in connection with the transfer of the Property to Borrower have been paid or are being paid simultaneously herewith. All mortgage, mortgage recording, stamp,
intangible or other similar tax required to be paid under applicable Legal Requirements in connection with the execution, delivery, recordation, filing, registration, perfection or enforcement of any of the Mortgage Documents with respect to such
Property, including the Mortgages, have been paid or are being paid simultaneously herewith. All taxes and governmental assessments due and owing in respect of the Property have been paid, or an escrow of funds in an amount sufficient to cover such
payments has been established hereunder or are insured against by the Title Insurance Policy and the Title Insurance Owner’s Policy for such Property. 

(c)    Each Property is comprised of one (1) or more parcels which constitute separate tax lots and do not constitute
a portion of any other tax lot not a part of such Property. 
 3.2.2    Adverse Claims.
Borrower’s ownership of the Property is free and clear of any Liens other than Permitted Liens. 

3.2.3    Title Insurance Owner’s Policy. Borrower has delivered to
Lender either (a) a Title Insurance Owner’s Policy insuring fee simple ownership of such Property by Borrower in an amount equal to or greater than the initial Allocated Loan Amount of the Property, issued by a title insurance company
reasonably acceptable to Lender with no title exceptions other than Permitted Liens or (b) a marked or initialed binding commitment that is effective as a Title Insurance Owner’s Policy in respect of such Property in an amount equal to or
greater than the initial Allocated Loan Amount of the Property, issued by a title insurance company reasonably acceptable to Lender with no title exceptions other than Permitted Liens, which commitment shall be accompanied by such other affidavits,
transfer declarations and other documents as are necessary for the recordation of the deed for such Property and issuance of such Title Insurance Owner’s Policy. 

3.2.4    Deed. Borrower has delivered to Lender a copy of a deed for such Property conveying the
Property to Borrower, with vesting in the actual name of Borrower, and Borrower hereby certifies that such Property’s deed has been recorded or presented to and accepted for recording by the applicable title insurance company issuing the
related Title Insurance Owner’s Policy or binding commitment referred to in Section 3.2.3, with all fees, premiums and deed stamps and other transfer taxes paid. 

3.2.5    Mortgage File Required Documents. Borrower has delivered to Lender (a) either
(i) certified or file stamped (in each case by the applicable land registry) original executed Mortgage Documents or (ii) a copy of the Mortgage Documents in recordable form that have been submitted by the title insurance company referred
to in Section 3.2.3 for recording in the jurisdiction in which such Property is located (with Lender and Borrower acknowledging that the Mortgage Documents delivered on the Closing Date consist solely of Mortgages (which
include Assignments of Leases and Rents and fixture filings as a part thereof), and that no 

  
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separate Assignments of Leases and Rents or Fixture Filings are included as part of the Mortgage Documents delivered at the Closing Date), (b) an opinion of counsel admitted to practice in the
state in which such Property is located in form and substance reasonably satisfactory to Lender in respect of the enforceability of such Mortgage Documents and an opinion of counsel in form and substance reasonably satisfactory to Lender stating
that the Mortgage Documents were duly authorized, executed and delivered by Borrower and that the execution and delivery of such Mortgage Loan Documents and the performance by Borrower of its obligations thereunder will not cause a breach of, or a
default under, any agreement, document or instrument to which Borrower is a party or to which it or such Property is bound, (c) either (x) a Title Insurance Policy insuring the Lien of the Mortgage encumbering such Property, or (y) a
marked or initialed binding commitment that is effective as a Title Insurance Policy in respect of such Property, in each case, issued by the title insurance company referred to in Section 3.2.3 with no title
exceptions other than Permitted Liens, which commitment shall be accompanied by such other affidavits, transfer declarations and other documents specified in such commitment as necessary for the issuance of such Title Insurance Policy, and
(d) evidence that all taxes, fees and other charges payable in connection therewith have been paid in full or delivered to escrow. GRC has delivered to Lender the Closing Date GRC Certificate. 

3.2.6    Property Taxes and HOA Fees. There are no delinquent Property Taxes or HOA Fees outstanding
with respect to the Property, other than Property Taxes or HOA Fees that may exist in accordance with Section 4.4.5. As of the Closing Date, except for any Property listed on Schedule VII for which no HOA estoppels have
been obtained, there are no pending or, to Borrower’s knowledge, proposed, special or other assessments for homeowner’s association improvements affecting the Property that would reasonably be expected to have an Individual Material
Adverse Effect with respect to the Property. 
 3.2.7    Compliance with Renovation Standards.
Except if the Property is a Carry-Over Property or a Vacant Property, the Property satisfies the Renovation Standards and all renovations thereto have been conducted in accordance with applicable Legal Requirements, in all material respects. 

3.2.8    Condemnation; Physical Condition. No Property has been condemned in whole or in part.
No proceeding is pending or, to the knowledge of Borrower, threatened in writing for the condemnation of the Property. Except for any TIP Property, each Property is in a good, safe and habitable condition and repair, and free of and clear of
any damage or waste that has an Individual Material Adverse Effect on the Property. 

3.2.9    Brokers. There is no commission or other compensation payable to any broker or finder in
connection with the purchase of the Property by Borrower or its Affiliate that has not been paid. 

3.2.10    Leasing. As of the Cut-Off Date, or, in case of any
Substitute Property, as of the date such Property becomes a Substitute Property, either (a) the Property (other than the Vacant Properties set forth on Schedule IX) was leased by Borrower to an Eligible Tenant pursuant to an Eligible
Lease and such Lease was in full force and effect and was not in default in any material respect or (b) if the Property is a Carry-Over Property, it was leased to a Carry-Over Tenant pursuant to a Lease and such Lease was in full force and
effect and was not in default in 

  
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any material respect; provided, that prior to entering into any new or renewal Lease with such Carry-Over Tenant Borrower shall have determined that such Carry-Over Tenant is not
listed on a Government List. No Person (other than Borrower) has any possessory interest in the Property or right to occupy the same except any Tenant under and pursuant to the provisions of the applicable Lease and any Person claiming rights
through any such Tenant. The copy of such Eligible Lease for the Property (other than any Carry-Over Property or Vacant Property) delivered to Lender is true and complete in all material respects, there are no material oral agreements with respect
thereto. Except as set forth on Schedule III, as of the Closing Date, no Rent (including security deposits) has been paid more than thirty (30) days in advance of its due date and all amounts set forth on Schedule III have been
delivered to the Advance Rent Subaccount on or before the Closing Date. As of the Closing Date, any payments, free rent, partial rent, rebate of rent or other payments, credits, allowances or abatements required to be given by Borrower to the
relevant Tenant has already been provided to such Tenant (including reductions in monthly Rent during the term of the related Lease or in other similar fashion). 

3.2.11    Insurance. The Property is covered by property, casualty, liability, business interruption,
windstorm, flood, earthquake and other applicable Policies as and to the extent, and in compliance with the applicable requirements of Section 5.1.1 and Borrower has not taken (or omitted to take) any action that would
impair or invalidate the coverage provided by any such Policies. As of the Closing Date, no claims have been made that are currently pending, outstanding or otherwise remain unsatisfied under any such policies and would reasonably be expected to
have an Individual Material Adverse Effect with respect to the Property. 
 3.2.12    Lawsuits,
Etc. As of the Closing Date, there are no actions, suits or proceedings at law or in equity by or before any Governmental Authority or other entity pending or to the Borrower’s knowledge, threatened in writing against or
affecting the Property, which actions, suits or proceedings would reasonably be expected to have an Individual Material Adverse Effect on such Property. 

3.2.13    Orders, Injunctions, Etc. There are no orders, injunctions, decrees or
judgments outstanding with respect to the Property that would reasonably be expected to have an Individual Material Adverse Effect on such Property. 

3.2.14    Agreements Relating to the Properties. Borrower is not a party to any agreement or
instrument or subject to any restriction which would reasonably be expected to have an Individual Material Adverse Effect on such Property. Borrower is not in default in any material respect in the performance, observance or fulfillment of any of
the obligations, covenants or conditions contained in any agreement or instrument to which the Property is bound. Except for the Management Agreement, Borrower does not have a material financial obligation under any indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument by which the Property is bound, other than obligations under the Loan Documents. Borrower is not in default in any material respect in the performance, observance or fulfillment of any of the
obligations, covenants or conditions contained in any Permitted Lien with respect to any Property. No Property nor any part thereof is subject to any purchase options, rights of first refusal to purchase, rights of first offer to purchase or other
similar rights in favor of any Tenant or other third parties. 

  
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 3.2.15    Accuracy of Information Regarding Property.
All information with respect to the Property included in the Properties Schedule is true, complete and accurate in all material respects. None of the Properties consist of housing cooperatives or manufactured housing. 

3.2.16    Compliance with Legal Requirements. Except for any TIP Property, each Property (including
the leasing and intended use thereof) complies with all applicable Legal Requirements, including, without limitation, building and zoning ordinances and codes and all certifications, permits, licenses and approvals, including without limitation,
certificates of completion and occupancy permits, required for the legal leasing, use, occupancy, habitability and operation of such Property, except as would not reasonably be expected to have an Individual Material Adverse Effect with respect to
the Property. Except for any TIP Property, there is no consent, approval, permit, license, order or authorization of, and no filing with or notice to, any court or Governmental Authority required for the operation, use or leasing of the Property
that has not been obtained, except as would not reasonably be expected to have an Individual Material Adverse Effect with respect to the Property. There has not been committed by Borrower or, to the Borrower’s knowledge, any other Person in
occupancy of or involved with the operation, use or leasing of the Property any act or omission affording any Governmental Authority the right of forfeiture as against the Property or any part thereof. 

3.2.17    Utilities and Public Access. The Property has rights of access to public ways and is served
by water, sewer or septic system, and storm drain facilities adequate to service the Property for its intended uses and all public utilities necessary or convenient to the full use and enjoyment of the Property are located either in the public right-of-way abutting the Property (which are connected so as to serve the Property without passing over other property) or in recorded easements serving the Property and such
easements are set forth in and insured by the applicable Title Insurance Owner’s Policy and Title Insurance Policy and all roads necessary for the use of the Property for its intended purposes have been completed and dedicated to public use and
accepted by all Governmental Authorities, except as would not reasonably be expected to have an Individual Material Adverse Effect with respect to the Property. 

3.2.18    Eminent Domain. As of the Closing Date, there is no proceeding pending or, to
Borrower’s knowledge, threatened, for the total or partial Condemnation or for the relocation of roadways resulting in a failure of access to the Property on public roads. 

3.2.19    Flood Zone. The Property is not located in an area identified by the Federal Emergency
Management Agency as a special flood hazard area, or, if so located the flood insurance required pursuant to Section 5.1.1(a) is in full force and effect with respect to the Property. 

3.2.20    Specified Liens. The Property is not subject to any Specified Lien at any time on or after
the first anniversary of the Closing Date. 
 Section 3.3    Survival of
Representations. Borrower agrees that all of the representations and warranties of Borrower set forth in Article III and elsewhere in this Agreement and in the other Loan Documents shall survive for so long as any amount remains owing
to Lender under this Agreement or any of the other Loan Documents by Borrower. All representations, warranties, covenants and agreements made in this Agreement or in the other Loan Documents by Borrower shall be deemed to have been relied upon
by Lender notwithstanding any investigation heretofore or hereafter made by Lender or on its behalf. 

  
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 ARTICLE IV - BORROWER COVENANTS 

Section 4.1    Affirmative Covenants. Borrower hereby covenants and agrees
with Lender as follows: 
 4.1.1    Preservation of Existence. Borrower shall and shall cause each
other Loan Party to (a) observe all procedures required by its organizational documents and preserve and maintain its limited liability company, existence, rights, franchises and privileges in the jurisdiction of its organization, and
(b) qualify and remain qualified in good standing (where relevant) as a foreign limited liability company in each other jurisdiction where the nature of its business requires such qualification and to the extent such concept exists in such
jurisdiction except where, in the case of clause (b), the failure to be so qualified would not reasonably be expected to have a Material Adverse Effect. 

4.1.2    Compliance with Legal Requirements. Except with respect to the Properties and the use
thereof (which is subject to Section 4.4.4), Borrower shall and shall cause each other Loan Party to do or cause to be done all things necessary to preserve, renew and keep in full force and effect its rights, licenses and
permits and to comply with all Legal Requirements applicable to it, except to the extent that the failure to do so would not reasonably be expected to have a Material Adverse Effect. A Loan Party, at such Loan Party’s expense, may contest by
appropriate legal proceeding promptly initiated and conducted in good faith and with due diligence, the validity of any Legal Requirement, the applicability of any Legal Requirement to a Loan Party or any Property or any alleged violation of any
Legal Requirement; provided, that (a) such proceeding shall be permitted under and be conducted in accordance with the provisions of any instrument to which a Loan Party is subject and shall not constitute a default
thereunder and such proceeding shall be conducted in accordance with all applicable Legal Requirements; (b) no Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, cancelled or lost; and
(c) the Loan Party shall promptly upon final determination thereof comply with any such Legal Requirement determined to be valid or applicable or cure any violation of any Legal Requirement, except to the extent that the failure to do so would
not reasonably be expected to have a Material Adverse Effect. 
 4.1.3    Special Purpose Bankruptcy Remote
Entity/Separateness. 
 (a)    Borrower shall and shall cause each other Loan Party to be and
continue to be a Special Purpose Entity. 
 (b)    Borrower shall and shall cause each other Loan Party to comply in all
material respects with all of the stated facts and assumptions made with respect to the Loan Parties in the Insolvency Opinion and each Additional Insolvency Opinion. Each Affiliate of a Relevant Party with respect to which an assumption is made or
a fact stated in the Insolvency Opinion or an Additional Insolvency Opinion will comply in all material respects with all of the assumptions made and facts stated with respect to it in such Insolvency Opinion or Additional Insolvency Opinion. 

  
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 4.1.4    Non-Property
Taxes. Borrower shall and shall cause each other Loan Party to file, cause to be filed or obtain an extension of the time to file, all Tax returns for Non-Property Taxes and reports required by law to
be filed by it and to promptly pay or cause to be paid all material Non-Property Taxes now or hereafter levied, assessed or imposed on it as the same become due and payable; provided, that, after
prior written notice to Lender of its intention to contest any such Non-Property Taxes, such Loan Party may contest by appropriate legal proceedings conducted in good faith and with due diligence, the amount
or validity of any such Non-Property Taxes and, in such event, may permit the Non-Property Taxes so contested to remain unpaid during any period, including appeals, when
a Loan Party is in good faith contesting the same so long as (a) no Event of Default has occurred and remains uncured, (b) such proceeding shall be permitted under and be conducted in accordance with all applicable Legal Requirements,
(c) no Property or other Collateral nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled or lost, (d) the applicable Loan Party has set aside on its books adequate reserves in accordance
with GAAP, and the non-payment or non-discharge of such Non-Property Taxes would not reasonably be expected to have a Material
Adverse Effect, (e) enforcement of the contested Non-Property Taxes is effectively stayed for the entire duration of such contest and no Lien is imposed on any Property or other Collateral, (f) any Non-Property Taxes determined to be due, together with any interest or penalties thereon, is promptly paid as required after final resolution of such contest, (g) to the extent such Non-Property Taxes (when aggregated with all other Taxes that any Loan Party is then contesting under this Section 4.1.4 or Section 4.4.5 and for which Borrower
has not delivered to Lender any Contest Security) exceed $1,000,000, Borrower shall deliver to Lender either (i) cash, or other security as may be approved by Lender, in an amount sufficient to insure the payment of any such Non-Property Taxes, together with all interest and penalties thereon or (ii) a payment and performance bond in an amount equal to one hundred percent (100%) of the contested amount from a surety acceptable to
Lender in its reasonable discretion, (h) failure to pay such Non-Property Taxes will not subject Lender to any civil or criminal liability, (i) such contest shall not affect the ownership, use or
occupancy of any Property or other Collateral, and (j) Borrower shall, upon request by Lender, give Lender prompt notice of the status of such proceedings and/or confirmation of the continuing satisfaction of the conditions set forth in clauses
(a) through (i) of this Section 4.1.4. Notwithstanding the foregoing, Borrower shall and shall cause each other Loan Party to pay any contested Non-Property Taxes (or, if cash or
other security has been provided, Lender may pay over any such cash or other security held by Lender to the claimant entitled thereto) if, in the Lender’s reasonable judgment, any Property or other Collateral (or any part thereof or interest
therein) shall be in danger of being sold, forfeited, terminated, cancelled or lost or there shall be any danger of the Lien of any Collateral Document being primed by any related Lien. 

4.1.5    Access to the Properties. Subject to the rights of Tenants, Borrower shall permit agents,
representatives and employees of Lender to inspect the Properties or any part thereof at reasonable hours upon reasonable advance notice, subject to the limitations set forth in Schedule VI. 

4.1.6    Cooperate in Legal Proceedings. Borrower shall cooperate reasonably with Lender with respect
to any proceedings before any court, board or other Governmental Authority which is reasonably likely to affect the rights of Lender hereunder or any rights obtained by Lender under any of the other Loan Documents and, in connection therewith,
permit Lender, at its election by written notice, to participate in any such proceedings. 

  
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 4.1.7    Perform Loan Documents. Borrower shall and
shall cause each other Loan Party to, in a timely manner, observe, perform and satisfy all the terms, provisions, covenants and conditions of the Loan Documents executed and delivered by, or applicable to, the Loan Party, and shall pay when due all
costs, fees and expenses of Lender, to the extent required under the Loan Documents executed and delivered by, or applicable to, the Loan Party. 

4.1.8    Award and Insurance Benefits. Borrower shall cooperate with Lender, in accordance with
the relevant provisions of this Agreement, to enable Lender to receive the benefits of any Awards or Insurance Proceeds lawfully or equitably payable in connection with any Property, and Lender shall be reimbursed for any expenses reasonably
incurred in connection therewith (including reasonable attorneys’ fees and disbursements, and the payment by the Loan Parties of the reasonable expense of an appraisal on behalf of Lender in case of Casualty or Condemnation affecting any
Property or any part thereof) out of such Insurance Proceeds. 
 4.1.9    Security Interest; Further
Assurances. Borrower shall and shall cause each other Loan Party to take all necessary action to establish and maintain, in favor of Lender a valid and perfected first priority security interest in all Collateral to the full extent
contemplated herein, free and clear of any Liens other than Permitted Liens (including the filing of all financing statements or other similar instruments or documents necessary under the UCC (or any comparable law) of all appropriate jurisdictions
to perfect Lender’s security interest in the Collateral). Such financing statements may describe as the collateral covered thereby “all assets of the debtor, whether now owned or hereafter acquired” or words to that effect. Borrower
shall and shall cause each other Loan Party to, at the Loan Parties’ sole cost and expense execute any and all further documents, financing statements, agreements, affirmations, waivers and instruments, and take all such further actions
(including the filing and recording of financing statements) that may be required under any applicable Legal Requirement, or that Lender reasonably deems necessary or advisable, in order to grant, preserve, protect and perfect the validity and
priority of the security interests created or intended to be created hereby or by the Collateral Documents or the enforceability of any guaranty or other Loan Document. 

4.1.10    Keeping of Books and Records. Borrower shall keep and maintain or shall cause to be kept
and maintained on a calendar year basis, in accordance with the requirements for a Special Purpose Entity set forth herein and GAAP (or such other accounting basis acceptable to Lender), proper and accurate books, records and accounts reflecting all
of the financial affairs of the Loan Parties and all items of income and expense in connection with the operation on an individual basis of each Property. Lender shall have the right from time to time at all times during normal business hours upon
reasonable notice to examine such books, records and accounts at the office of Borrower or any other Person maintaining such books, records and accounts and to make such copies or extracts thereof as Lender shall desire. After the occurrence of an
Event of Default, Borrower shall pay reasonable out-of-pocket costs and expenses incurred by Lender to examine each Loan Parties’ accounting records with respect to
the Properties, as Lender shall reasonably determine to be necessary or appropriate in the protection of Lender’s interest. 

  
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 4.1.11    Business and Operations. Borrower shall engage
in the businesses conducted by it as and to the extent the same are necessary for the ownership, maintenance, sale, management, leasing and operation of the Properties. Borrower shall qualify to do business and will remain in good standing under the
laws of each jurisdiction as and to the extent the same are required for the ownership, maintenance, management and operation of the Properties, except to the extent that failure to do so would not reasonably be expected to have a Material Adverse
Effect. Borrower or Borrower TRS, as applicable, shall, at all times during the term of the Loan, continue to own or lease all equipment, fixtures and personal property which are necessary to operate its Properties. 

4.1.12    Loan Proceeds. Borrower shall use the proceeds of the Loan received by it on the Closing
Date only for the purposes set forth in Section 2.1.5 and Section 2.1.6. 

4.1.13    Performance by Borrower. Borrower shall and shall cause each other Loan Party to, in a
timely manner, observe, perform and fulfill each and every covenant, term and provision of each Loan Document executed and delivered by, or applicable to, such Loan Party, and shall not enter into or otherwise suffer or permit any amendment, waiver,
supplement, termination or other modification of any Loan Document executed and delivered by, or applicable to, Borrower or Equity Owner without the prior written consent of Lender. 

4.1.14    Leasing Matters.Borrower shall (a) observe and perform the obligations imposed upon
the lessor under the Leases for the Properties in a commercially reasonable manner; and (b) enforce the terms, covenants and conditions contained in such Leases upon the part of the Tenant thereunder to be observed or performed in a
commercially reasonable manner except in each case to the extent that the failure to do so would not reasonably be expected to have an Individual Material Adverse Effect with respect to a Property. 

4.1.15    Borrower’s Operating Account. Borrower shall establish and
maintain an account (the “Borrower’s Operating Account”) at a bank selected by Borrower and reasonably approved by Lender which shall be an Eligible Institution. Borrower may also establish and maintain
subaccounts of Borrower’s Operating Account (which may be ledger or book entry accounts and not actual accounts). 

4.1.16    Security Deposits. 

(a)    All security deposits of Tenants, whether held in cash or any other form, shall be deposited into one or more
Eligible Accounts (each a “Security Deposit Account”) established and maintained by Borrower at a local bank which shall be an Eligible Institution, held in compliance with all Legal Requirements and identified by written notice to
Lender, and shall not be commingled with any other funds of Borrower. Borrower shall deposit all security deposits in its possession on the Closing Date into the Security Deposit Account. Within three (3) Business Days after receipt of any
security deposit, Borrower shall deposit the same into the Security Deposit Account (except only as provided below with respect to combined payments). Except for deposits of de minimis Borrower funds to maintain a minimum balance or to pay
fees of the depository bank, Borrower shall insure that no funds from any source shall be deposited into the Security Deposit Account other than security deposits relating to the Properties and interest paid thereon, and no funds shall be withdrawn
except, in accordance with Legal 

  
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Requirements, (i) to pay refunds of security deposits, (ii) to pay (or reimburse for payment of) expenses chargeable against security deposits or (iii) to transfer forfeited
security deposits to the Rent Deposit Account or Cash Management Account. Borrower shall maintain complete and accurate books and records of all transactions pertaining to security deposits and the Security Deposit Account, with sufficient
detail to identify all security deposits separate and apart from other payments received from or by Tenants. Only if Borrower receives a check or other payment that combines a security deposit together with Rent or other amounts owing by a Tenant,
then Borrower shall (a) deposit the combined payment into the Rent Deposit Account or Cash Management Account or (b) deposit the amount representing the security deposit into the Security Deposit Account and the amount representing Rent
into the Rent Deposit Account. Promptly after the deposit of any combined payment into the Rent Deposit Account or Cash Management Account, Borrower shall submit written notice to Lender identifying the applicable combined payment and requesting
return of the security deposit amount from the Cash Management Account, and when the same is paid, Borrower promptly shall deposit the same into the Security Deposit Account within three (3) Business Days after receipt.

(b)    Any bond or other instrument which Borrower is permitted to hold in lieu of cash security deposits under applicable
Legal Requirements (i) shall be, subject to the applicable Lease and Legal Requirements, maintained in full force and effect in the full amount of such deposits unless replaced by cash deposits as above described, (ii) shall be issued by
an institution reasonably satisfactory to Lender, (iii) shall, if permitted pursuant to Legal Requirements, name Lender as payee or mortgagee thereunder (or at Lender’s option, be fully assignable to Lender), and (iv) shall in all
respects comply with applicable Legal Requirements and otherwise be satisfactory to Lender. Borrower shall, upon request, provide Lender with evidence reasonably satisfactory to Lender of Borrower’s compliance with the foregoing. 

(c)    Upon Lender’s written request during an Event of Default, Borrower shall deliver (or cause to be delivered)
all security deposits to Lender for safe-keeping, and not for application against the Debt. Upon a foreclosure of any Property or transfer in lieu thereof, Borrower shall deliver to Lender or to an account designated by Lender the security deposits
applicable to such Property for safe-keeping and not for application to the Debt. 
 4.1.17    Investment
of Funds in Cash Management Account, Subaccounts, Rent Deposit Account and Security Deposit Account. Sums on deposit in the Cash Management Account and the Subaccounts may be invested in Permitted Investments. Borrower shall have the right
to direct Cash Management Account Bank to invest sums on deposit in the Cash Management Account and the Subaccounts in Permitted Investments. The Cash Management Account shall be assigned the federal tax identification number of Borrower. Sums on
deposit in the Rent Deposit Account shall not be invested in Permitted Investments and shall be held solely in cash. Subject to any requirements of applicable law, sums on deposit in a Security Deposit Account may be invested in Permitted
Investments and Borrower shall have the right to direct the applicable Security Deposit Bank to invest sums on deposit in such Security Deposit Account in Permitted Investments. The amount of actual losses sustained on a liquidation of a Permitted
Investment in the Cash Management Account, a Subaccount or a Security Deposit Account shall be deposited into the Cash Management Account, the applicable Subaccount or the applicable Security Deposit Account, as applicable, by Borrower no later than
one (1) Business Day following such liquidation. Borrower shall pay any federal, state or local income or other tax applicable to income earned from Permitted Investments. 

  
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 4.1.18    Operation of Property. 

(a)    Borrower shall (i) cause the Manager to manage the Properties in accordance with the Management Agreement,
(ii) diligently perform and observe all of the terms, covenants and conditions of the Management Agreement on the part of Borrower to be performed and observed, (iii) promptly notify Lender of any default under the Management Agreement of
which it is aware; provided, however, that, no such notice is required pursuant to this clause (iii) if (A) the loss or damage from such default under the Management Agreement does not exceed $50,000
and (B) Borrower determines, in good faith, that such default will not adversely affect the management of any of the Properties or the interests of the Lender in such Properties and (iv) promptly enforce the performance and observance of
all of the covenants required to be performed and observed by the Manager under the Management Agreement in a commercially reasonable manner. If Borrower shall default in the performance or observance of any material term, covenant or condition of
the Management Agreement on the part of Borrower to be performed or observed, then, without limiting Lender’s other rights or remedies under this Agreement or the other Loan Documents, and without waiving or releasing Borrower from any of its
obligations hereunder or under the Management Agreement, Lender shall have the right, but shall be under no obligation, to pay any sums and to perform any act as may be appropriate to cause all the material terms, covenants and conditions of the
Management Agreement on the part of Borrower to be performed or observed. Except to the extent payable in accordance with Section 2.7.2(j), in no event shall the management fee payable to the Manager for any calendar month
exceed the Management Fee Cap for such calendar month and in no event shall Borrower pay or become obligated to pay to the Manager, any transition or termination costs or expenses, termination fees, or their equivalent in connection with the
Transfer of a Property or the termination of the Management Agreement. For the avoidance of doubt, for purposes of this Agreement, management fees shall not be deemed to include leasing commissions and reimbursements of expenses paid to Manager in
the ordinary course of Borrower’s business. 
 (b)    If any one or more of the following events occurs:
(i) during the continuance of an Event of Default, (ii) if the Manager shall be in material default under the Management Agreement beyond any applicable notice and cure period (including as a result of any gross negligence, fraud, willful
misconduct or misappropriation of funds), or (iii) if Manager shall become insolvent or a debtor in any bankruptcy or insolvency proceeding, then Lender shall have the right to require Borrower to replace the Manager and enter into a
Replacement Management Agreement with (x) a Qualified Manager selected by Borrower that is not an Affiliate of Borrower or (y) another property manager chosen by Borrower and approved by Lender; provided, that such approval
shall be conditioned upon Borrower delivering a Rating Agency Confirmation as to such property manager. If Borrower fails to select a new Qualified Manager or a replacement Manager that satisfies the conditions described in the foregoing clause
(y) and enter into a Replacement Management Agreement with such Person within sixty (60) days of Lender’s demand to replace the Manager, then Lender may choose the replacement property manager provided that such replacement
property manager is a Qualified Manager or satisfies the conditions set forth in proviso of the foregoing clause (y). 

  
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 4.1.19    Anti-Money Laundering.Borrower shall comply
and shall cause each other Loan Party to comply in all material respects with all applicable anti-money laundering laws and regulations, including without limitation the Patriot Act (collectively, the “Anti-Money Laundering Laws”).
Borrower shall (a) conduct, in accordance with its anti-money laundering program compliance program, the requisite due diligence in connection with renewals of, and new, Leases and renewing and prospective Tenants for purposes of the Anti-Money
Laundering Laws, including with respect to the legitimacy of the applicable renewing or prospective Tenant and the origin of the assets used by said Tenant to lease the applicable Property and (b) will maintain sufficient information to
identify the renewing and prospective Tenants for purposes of the Anti-Money Laundering Laws. The Manager has established an anti-money laundering compliance program as required by the Anti-Money Laundering Laws, with respect to the Tenants and the
Properties and has conducted the requisite due diligence with respect to the existing Leases for purposes of such Anti-Money Laundering Laws, including with respect to the legitimacy of the applicable renewing or prospective Tenant and the origin of
the assets used by said Tenant to lease the applicable Property. Borrower shall provide notice to Lender, within five (5) Business Days, of receipt of any written notice of any Anti-Money Laundering Law violation or action involving a Loan
Party. 
 4.1.20    Embargoed Persons. Prior to entering into a Lease with a prospective Tenant
(excluding any existing Tenant of a Property that was previously screened in accordance with this Section 4.1.20), Borrower shall confirm that such prospective Tenant is not a Person whose name appears on a Government List.
Borrower shall not enter into a Lease with a Person whose name appears on a Government List unless Borrower determines that such Person is not the terrorist, narcotics trafficker or other Person who is identified on such Government List but merely
has the same name as such Person. If notwithstanding such confirmation, a Responsible Officer of a Loan Party obtains knowledge that a Tenant is a Person whose name appears on a Government List, it shall promptly provide notice of such fact to
Lender within five (5) Business Days of acquiring knowledge thereof. 
 4.1.21    ERISA
Matters. Each Loan Party shall and shall cause each of its ERISA Affiliates to establish, maintain and operate all Plans to comply in all material respects with the provisions of ERISA, the Code and all applicable laws, the regulations and
interpretation thereunder and the respective requirements of the governing documents for such Plans. Each Loan Party shall and shall cause each of its ERISA Affiliates to establish, maintain and operate all Foreign Plans to comply in all
material respects with all laws, regulations and rules applicable thereto and the respective requirements of the governing documents for such plans. 

4.1.22    Contribution of Property to Borrower TRS. On the Closing Date, Borrower shall cause
Borrower TRS to execute and deliver to Lender, and in any event, prior to contributing any Properties or other Collateral to such Borrower TRS: (i) the Borrower TRS Guaranty, (ii) the Borrower TRS Security Agreement, and (iii) such
other agreements, instruments, approvals, legal opinions or other documents as are reasonably requested by Lender in order to create, perfect or establish the first priority (subject to Permitted Liens) of any Lien. 

  
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 When Borrower contributes any Properties to Borrower TRS, then the following covenants shall be
applicable: 
 (a)    In connection with the transfer of such Properties to Borrower TRS, Borrower TRS shall expressly
acknowledge in the deed or other conveyance document or instrument delivered and recorded in the applicable jurisdiction in which such Properties are located in connection with the transfer of the Properties to Borrower TRS that Borrower TRS’s
title to and interest in such Properties are subject to the Lien, terms and provisions of the applicable Mortgage(s); provided, that for the avoidance of doubt, the Lien of the Mortgage encumbering any Property contributed to Borrower
TRS shall not be released at such time and no new Mortgage shall be executed with respect to or recorded against any Property contributed to Borrower TRS by Borrower; and 

(b)    Prior to contributing a Property to Borrower TRS, Borrower shall cause Borrower TRS to execute and deliver to
Lender an assumption of the Mortgage related to such Property, in form and substance reasonably acceptable to Lender and Borrower. 

Borrower shall submit to the Lender the assumption of the Mortgage (required in clause (b) above) at least five (5) Business Days
prior to date of the contribution. 
 Section 4.2    Negative Covenants.
Borrower covenants and agrees with Lender as follows: 
 4.2.1    Operation of Property. Borrower
shall not (a) surrender, terminate, cancel, modify, renew or extend the Management Agreement, provided, that Borrower may, without Lender’s consent, (i) replace Manager so long as the replacement manager is a Qualified
Manager pursuant to a Replacement Management Agreement and (ii) renew and extend the Management Agreement pursuant to the terms thereof, (b) enter into any other agreement relating to the management or operation of a Property with Manager
or any other Person. If at any time Lender consents to the appointment of a new property manager or a Qualified Manager is appointed, such new property manager (including a Qualified Manager) shall execute a Replacement Management Agreement,
(c) consent to the assignment by Manager of its interest under the Management Agreement, or (d) waive or release any of its rights and remedies under the Management Agreement, in each case without the express consent of Lender, which
consent shall not be unreasonably withheld. For the avoidance of doubt, for purposes of subclause (iii) above, payments for services provided during the termination notice period of a
sub-management agreement shall not constitute a termination penalty. 

4.2.2    Indebtedness. Borrower shall not create, incur, assume or suffer to exist any Indebtedness
other than (a) the Debt, (b) the Companion Seller Financing and (c) unsecured trade payables incurred in the ordinary course of business relating to the ownership and operation of the Properties, which in the case of such unsecured
trade payables (i) are not evidenced by a note, (ii) do not exceed, at any time, on an aggregate basis among Borrower and Borrower TRS, a maximum aggregate amount of three percent (3%) of the Loan then outstanding and (iii) are paid
within sixty (60) days of the date incurred (collectively, “Permitted Indebtedness”). Borrower shall cause Equity Owner and Borrower TRS not to create, incur, assume or suffer to exist any Indebtedness other than (x) with
respect to Borrower TRS, Indebtedness incurred under the Borrower TRS Guaranty, this Agreement and the other Loan Documents to which it is a party, the Companion Seller Financing and unsecured trade payables incurred in the ordinary course of
business relating to the ownership and operation of the Properties, which in the case of 

  
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such unsecured trade payables (i) are not evidenced by a note, (ii) do not exceed, at any time, on an aggregate basis among Borrower and Borrower TRS, a maximum aggregate amount of
three percent (3%) of the Loan then outstanding and (iii) are paid within sixty (60) days of the date incurred (collectively, the “Borrower TRS’s Permitted Indebtedness”), and (y) with respect to
the Equity Owner, Indebtedness incurred under the Equity Owner Guaranty and the other Loan Documents to which Equity Owner is a party, the Companion Seller Financing and unsecured trade payables incurred in the ordinary course of business with
respect to the Equity Owner, related to the ownership of membership interest in Borrower and that (A) are not evidenced by a note, (B) do not exceed, at any time, $25,000 and (C) are paid within sixty (60) days of the date
incurred (collectively, the “Equity Owner’s Permitted Indebtedness”). For the purposes of this Section 4.2.2, Property Taxes and HOA Fees are not Indebtedness. 

4.2.3    Liens. Borrower shall not and shall cause each other Loan Party not to create or suffer to
exist any Liens upon or with respect to, any Collateral (other than any Property) except for Permitted Liens. 

4.2.4    Limitation on Investments. Borrower shall not and shall cause each other Loan Party not to
make or suffer to exist any loans or advances to, or extend any credit to, purchase any property or asset or make any investment (by way of transfer of property, contributions to capital, purchase of stock or securities or evidences of indebtedness,
acquisition of the business or assets, or otherwise) in, any Affiliate or any other Person except for (a) investments by Borrower in Borrower TRS and (b) acquisition of the Properties and related Collateral and Permitted Investments and
contributions of Properties to Borrower TRS as permitted by Section 4.1.22. 

4.2.5    Limitation on Issuance of Equity Interests. Borrower shall not and shall cause each other
Loan Party not to issue or sell or enter into any agreement or arrangement for the issuance and sale of any Equity Interests of any Loan Party. 

4.2.6    Restricted Junior Payments. Borrower shall not make any Restricted Junior Payment;
provided, that Borrower may make Restricted Junior Payments so long as (a) no Default or Event of Default shall then exist or would result therefrom, (b) such Restricted Junior Payments have been approved by all
necessary action on the part of Borrower and in compliance with all applicable laws and (c) such Restricted Junior Payments are paid from Unrestricted Cash. 

4.2.7    Principal Place of Business, State of Organization. Borrower shall not and shall cause each
other Loan Party not to change its name, identity (including its trade name or names), jurisdiction of organization or formation (as set forth in Section 3.1.25) or Borrower’s or Equity Owner’s limited liability
company structure (including any modification, amendment, waiver, or termination of its organizational documents) unless Borrower shall have first notified Lender in writing of such change at least thirty (30) days prior to the effective date
of such change, and shall have first taken all action required by Lender for the purpose of perfecting or protecting the lien and security interests of Lender pursuant to this Agreement, and the other Loan Documents and, in the case of a change in
Borrower’s or Equity Owner’s structure, without first obtaining the prior written consent of Lender, which consent may be given or denied in Lender’s sole discretion. Upon Lender’s request, Borrower shall and shall cause each
other Loan 

  
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 Party to, at Borrower’s sole cost and expense, execute and deliver additional security agreements and other
instruments which may be necessary to effectively evidence or perfect Lender’s security interest in the Collateral as a result of such change of principal place of business or place of organization. Each Loan Party’s principal place of
business and chief executive office, and the place where each Loan Party keeps its books and records, including recorded data of any kind or nature, regardless of the medium or recording, including software, writings, plans, specifications and
schematics, will continue to be the address of Borrower set forth in Section 9.3 (unless Borrower notifies Lender in writing at least thirty (30) days prior to the date of such change). Borrower shall promptly notify
Lender of any change in any Loan Party’s organizational identification number. 

4.2.8    Dissolution. Borrower shall not and shall cause each other Loan Party not to (a) engage in any
dissolution, liquidation or consolidation or merger with or into any other business entity, (b) transfer, lease or sell, in one transaction or any combination of transactions, the assets or all or substantially all of the properties or assets
of any Loan Party except to the extent permitted by the Loan Documents or (c) modify, amend, waive or terminate its organizational documents or its qualification and good standing in any jurisdiction, except to the extent permitted by
Section 4.2.7. 
 4.2.9    Change In Business. Borrower shall not,
and shall not permit Borrower TRS to, enter into any line of business other than the acquisition, renovation, ownership, maintenance, transfer, refinancing, holding, marketing, sale, leasing, transfer, management, leasing, operation or financing of
the Properties (and any businesses ancillary or related thereto, including the ownership of Borrower TRS), or make any material change in the scope or nature of its business objectives, purposes or operations, or undertake or participate in
activities other than the continuance of its present business. Borrower shall cause (a) Equity Owner to not engage in any activity other than acting as the sole member of Borrower (and any business ancillary or related thereto) and
(b) Borrower TRS to not engage in any activity other than owning, marketing and selling Properties. 

4.2.10    Debt Cancellation. Other than respect to any Lease, Borrower shall not, and shall not permit
Borrower TRS to, cancel or otherwise forgive or release any material claim or debt owed to such Loan Party by any Person, except for adequate consideration and in the ordinary course of such Loan Party’s business. 

4.2.11    Changes to Accounts. Borrower shall not, and shall not permit Borrower TRS to,
(a) other than as contemplated by the Companion Seller Financing, open or permit to remain open any cash, securities or other account with any bank, custodian or institution into which Rents or other Collections or any security deposits are
deposited other than the Cash Management Account, the Subaccounts, the Rent Deposit Account, and Security Deposit Accounts, (b) change or permit to change any account number of any of the foregoing accounts, (c) open or permit to remain
open any sub-account of the Cash Management Account (except any Subaccount) or the Rent Deposit Account, (d) permit any funds of Persons other than Borrower or Borrower TRS to be deposited or held in any
of the Cash Management Account, the Subaccounts, the Rent Deposit Account or the Security Deposit Accounts, other than security deposits, or (e) permit any Collections or other proceeds of any Properties to be deposited or held in
Borrower’s Operating Account other than cash that is distributed to Borrower pursuant to Section 2.7.2(k). 

  
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 4.2.12    Zoning. Borrower shall not, and shall not permit
Borrower TRS to, initiate or consent to any zoning reclassification of any portion of any Property or seek any variance under any existing zoning ordinance or use or knowingly permit any non-conforming use of
any Property under any zoning ordinance or any other applicable land use law, rule or regulation, without the prior written consent of Lender. 

4.2.13    No Joint Assessment. Borrower shall not, and shall not permit Borrower TRS to, suffer, permit or
initiate the joint assessment of any Property (a) with any other real property constituting a tax lot separate from such Property, and (b) which constitutes real property with any portion of such Property which may be deemed to constitute
personal property, or any other procedure whereby the lien of any taxes which may be levied against such personal property shall be assessed or levied or charged to such real property portion of such Property. 

4.2.14    Limitation on Transactions with Affiliates. Borrower shall not and shall cause each other Loan
Party not to enter into, or be a party to any transaction with any Affiliate of the Loan Parties, except for: (a) the Loan Documents and the Companion Seller Financing; (b) capital contributions by (i) Parent to Equity Owner,
(ii) Equity Owner to Borrower or (iii) Borrower to Borrower TRS; (c) Restricted Junior Payments which are in compliance with Section 4.2.6 and distributions from Borrower TRS to Borrower; (d) Transfers
that are Permitted Transfers; (e) transactions with Borrower TRS in accordance with the terms of this Agreement, including Section 4.1.22; and (f) to the extent not otherwise prohibited under this Agreement, other
transactions upon fair and reasonable terms materially no less favorable to the Loan Parties than would be obtained in a comparable arm’s-length transaction with a Person not an Affiliate. 

4.2.15    ERISA. None of the Loan Parties or their ERISA Affiliates shall establish or be a party to any
employee benefit plan within the meaning of Section 3(2) of ERISA that is a defined benefit pension plan that is subject to Part III of Subchapter D, Chapter 1, Subtitle A of the Code. 

4.2.16    No Embargoed Persons. At all times throughout the term of the Loan, Borrower shall ensure that
(a) none of the funds or other assets of any Loan Party shall constitute property of, or shall be beneficially owned, directly or indirectly, by any Person subject to trade restrictions under United States law, including, but not limited to,
the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated thereunder, with the result that the investment in
any Loan Party (whether directly or indirectly), would be prohibited by law (each, an “Embargoed Person”), or the Loan made by Lender would be in violation of law, (b) no Embargoed Person shall have any direct interest in any
Loan Party with the result that the investment in any Loan Party (whether directly or indirectly), would be prohibited by law or the Loan would be in violation of law, and (c) none of the funds of any Loan Party shall be derived from any
unlawful activity with the result that the investment in such Loan Party (whether directly or indirectly), would be prohibited by law or the Loan would be in violation of law. 

  
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 4.2.17    Transfers. 

(a)    Borrower acknowledges that Lender has examined and relied on the experience of Borrower and Parent in owning and
operating properties such as the Properties in agreeing to make the Loan, and will continue to rely on Borrower’s ownership of the Properties as a means of maintaining the value of the Properties as security for repayment of the Debt and the
performance of the Other Obligations. Borrower acknowledges that Lender has a valid interest in maintaining the value of the Properties so as to ensure that, should Borrower default in the repayment of the Debt or the performance of the Other
Obligations, Lender can recover the Debt by a sale of the Properties. 
 (b)    Except for Permitted Transfers,
Transfers otherwise set forth in this Section 4.2.17, and other Transfers made with the prior written consent of Lender, Borrower shall not, and shall not permit any other Person having a direct or indirect ownership or
beneficial interest in Borrower to sell, convey, mortgage, grant, bargain, encumber, pledge, assign, grant options with respect to or otherwise transfer or dispose of (directly or indirectly, voluntarily or involuntarily, by operation of law or
otherwise, and whether or not for consideration or of record) (i) any Property or any part thereof or any legal or beneficial interest therein, or (ii) any interest, direct or indirect, in any Loan Party or any legal or beneficial interest
therein (a “Transfer”). 
 (c)    A Transfer shall include, but not be limited to, (i) an
installment sales agreement wherein Borrower agrees to sell one or more Properties or any part thereof for a price to be paid in installments; (ii) an agreement by Borrower leasing all or a substantial part of any Property for other than actual
occupancy by a Tenant thereunder or a sale, assignment or other transfer of, or the grant of a security interest in, Borrower’s right, title and interest in and to any Leases or any Rents; (iii) if a Restricted Party is a corporation, any
merger, consolidation or Transfer of such corporation’s stock or the creation or issuance of new stock; (iv) if a Restricted Party is a limited or general partnership or joint venture, any merger or consolidation or the change, removal,
resignation or addition of a general partner or the Transfer of the partnership interest of any general partner or any profits or proceeds relating to such partnership interest, or the Transfer of limited partnership interests or any profits or
proceeds relating to such limited partnership interest or the creation or issuance of new limited partnership interests; (v) if a Restricted Party is a limited liability company, any merger or consolidation or the change, removal, resignation
or addition of a managing member or non-member manager (or if no managing member, any member) or the Transfer of the membership interest of a managing member (or if no managing member, any member) or any
profits or proceeds relating to such membership interest, or the Transfer of non-managing membership interests or the creation or issuance of new non-managing membership
interests; or (vi) if a Restricted Party is a trust or nominee trust, any merger, consolidation or the Transfer of the legal or beneficial interest in a Restricted Party or the creation or issuance of new legal or beneficial interests. 

(d)    Notwithstanding the foregoing, the following Transfers (herein, the “Permitted Transfers”) shall
be permitted hereunder without Lender’s consent: 
 (i)    Leases existing as of the Closing Date
and Eligible Lease entered into in accordance with the Loan Documents; 

  
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 (ii)    a Permitted Lien or any other Lien expressly
permitted under the terms of the Loan Documents; 
 (iii)    a Transfer of a Property in accordance with
Section 2.5; 
 (iv)    a substitution of a Property for a Substitute Property
in accordance with Section 2.4.2 or Section 5.3(b), as applicable; 

(v)    the (A) Transfer of any direct or indirect legal or beneficial interests in Parent or any
Public Vehicle, including a Public Vehicle that exists on the Closing Date, a Public Vehicle which acquires a direct or indirect legal or beneficial interest in Borrower and Equity Owner after the Closing Date in accordance with the terms of this
Section 4.2.17 or a Person which holds a direct or indirect legal or beneficial interest in Borrower and subsequently becomes a Public Vehicle or (B) merger, consolidation, sale of all or substantially all of the
assets, or similar transaction involving Parent or any Public Vehicle, provided that, in the case of the Parent, any successor or acquirer assumes all the obligations of the Parent under the Loan Documents and is a Qualified
Transferee; 
 (vi)    a Transfer of any direct or indirect interest in Borrower or Equity Owner not
described in the foregoing clause (v) provided, that: 
 (A)    after giving effect to such
Transfer, either (i) a Qualified Transferee (x) shall own not less than fifty-one percent (51%) of the direct or indirect legal and beneficial interests in each Loan Party and (y) shall Control
(directly or indirectly) each Loan Party or (ii) in the case of a transfer of interests in Parent or limited liability company interests in Equity Owner, Parent shall continue to Control (directly or indirectly) each Loan Party; 

(B)    if a Transfer is made pursuant to this clause (vi) and such Transfer shall cause
more than ten percent (10%) of the direct or indirect legal or beneficial interests in each Loan Party to be owned by any Person and its Affiliates that owned less than ten percent (10%) of the direct or indirect legal or beneficial interests in
such Loan Party prior to such Transfer, then Lender shall receive notice of such Transfer not less than (x) if the Qualified Transferee referenced in clause (A) above is not a Parent or a one hundred percent (100%) owned subsidiary
of the Parent, ten (10) Business Days prior to the consummation thereof or (y) if the Qualified Transferee referenced in clause (A) above is a Parent or a one hundred percent (100%) owned subsidiary of any Parent, thirty
(30) days following the consummation thereof, but the failure to deliver the notice referred to in this clause (y) shall not constitute an Event of Default unless such failure continues for ten (10) Business Days following notice of
such failure from Lender; 
 (C)    each Loan Party shall each continue to be a Special Purpose Entity;

  
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 (D)    after giving effect to such Transfer, (i) Equity
Owner shall remain the sole member of Borrower and (ii) Borrower shall remain the sole member of Borrower TRS; 

(E)    the Properties shall continue to be managed by Existing Manager or by a Qualified Manager pursuant
to a Replacement Management Agreement; 
 (F)    if such Transfer shall cause more than forty-nine
percent (49%) of the direct or indirect interests in each Loan Party to be owned by any Person and its Affiliates that owned less than forty-nine percent (49%) of the direct or indirect interest in each Loan Party prior to such Transfer, Borrower
shall deliver (or cause to be delivered) to Lender an Additional Insolvency Opinion; 
 (G)    so long as
the Loan is outstanding, (A) no pledge or other encumbrance of any direct interests in any Restricted Party (other than pledges securing the Obligations pursuant to the Collateral Documents) shall occur, and (B) no Restricted Party shall
issue preferred equity that has the characteristics of mezzanine debt (such as a fixed maturity date, regular payments of interest, a fixed rate of return and rights of the equity holder to demand repayment of its investment); 

(H)    Borrower shall provide Lender with copies of all organizational documents and all transaction
documents relating to any Transfer under this clause (vi) involving a direct legal or beneficial interest in any Restricted Party; and 

(I)    In connection with any Transfer under this clause (vi), to the extent a transferee shall
own ten percent (10%) or more of the direct or indirect ownership interests in a Loan Party immediately following such transfer (provided such transferee owned less than ten percent (10%) of the direct or indirect ownership interests in a Loan Party
as of the Closing Date), Borrower shall deliver (and Borrower shall be responsible for any reasonable out of pocket costs and expenses in connection therewith), customary searches reasonably requested by Lender in writing (including credit,
judgment, lien, litigation, bankruptcy, criminal and watch list) reasonably acceptable to Lender with respect to such transferee. 

(vii)    the Condemnation of a Property; 

(viii)    the contribution by Borrower of Collateral to such Borrower TRS as contemplated by
Section 4.1.22. 
 (e)    Following a Permitted Transfer, if Parent no longer Controls
(directly or indirectly) Borrower or the Properties, Parent shall, upon its written request, be released from the Parent Guaranty for all liability accruing after the date of such Transfer, provided that the Qualified Transferee or the
Person described in clause (ii)(A) of the definition of Qualified 

  
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Transferee shall execute and deliver to Lender a replacement guaranty in substantially the same form and substance as the Parent Guaranty covering all liability accruing from and after the date
of such Transfer (but not any which may have accrued prior thereto). 
 (f)    Borrower shall pay all reasonable out-of-pocket costs and expenses of Lender in connection with any Transfer, whether or not such Transfer is deemed to be a Permitted Transfer, including, without limitation,
all reasonable fees and expenses of Lender’s counsel. 
 Section 4.3    Reporting Covenants.
Borrower shall, unless Lender shall otherwise consent in writing, furnish or cause to be furnished to Lender the following reports, notices and other documents: 

4.3.1    Financial Reporting. Borrower shall furnish the following financial reports to Lender: 

(a)    As soon as available and in any event within forty-five (45) days after the end of the first three calendar
quarters of each year, commencing with the first calendar quarter ending March 31, 2018, consolidated balance sheets, statements of operations and retained earnings, and statements of cash flows of Borrower, in each case, as of the end of such
quarter and for the period commencing at the end of the immediately preceding calendar year and ending with the end of such quarter, setting forth in each case in comparative form the figures for the corresponding date or period of the immediately
preceding calendar year (if any), all in reasonable detail and prepared in accordance with GAAP, except that prior period comparative financial statements related to any time period prior to the Closing Date shall not be required. Such financial
statements shall contain such other information as shall be reasonably requested by Lender for purposes of calculations to be made by Lender pursuant to the terms hereof; 

(b)    As soon as available, and in any event within ninety (90) days after the end of each calendar year, commencing
with the calendar year ended December 31, 2018, unaudited copies of a balance sheet, statement of operations and retained earnings, and statement of cash flows of Borrower, in each case, as at the end of such calendar year, setting forth in
each case in comparative form the figures for the immediately preceding calendar year (if any), except that prior period comparative financial statements related to any time period prior to the Closing Date shall not be required, all in reasonable
detail and prepared in accordance with GAAP and the inclusion of footnotes to the extent required by GAAP; 
 (c)    As
soon as available, and in any event within forty-five (45) days after the end of each calendar month, commencing with the calendar month ended December 31, 2017, (i) an operating statement in respect of such calendar month and a
calendar year-to-date operating statement for Borrower, except that the operating statement shall not be required to relate to any time period prior to the Closing Date,
(ii) an Officer’s Certificate certifying that such operating statements are true, correct and complete in all material respects as of their respective dates, and (iii) upon Lender’s request, other information maintained by
Borrower in the ordinary course of business that is reasonably necessary and sufficient to fairly represent the financial position, ongoing maintenance and results of operation of the Properties (on a combined basis) during such calendar month; 

  
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 (d)    Simultaneously with the delivery of the financial statements of
Borrower required by clauses (a) and (b) above an Officer’s Certificate certifying (i) that such statements fairly represent the financial condition and results of operations of Borrower as of the end of such quarter or
calendar year (as applicable) and the results of operations and cash flows of Borrower for such quarter or calendar year (as applicable), in accordance with GAAP applied in a manner consistent with that of the most recent financial statements of
Borrower furnished to Lender, subject to normal year-end adjustments and the absence of footnotes, (ii) stating that such Responsible Officer has reviewed the provisions of this Agreement and the other
Loan Documents and has made or caused to be made under his or her supervision a review of the condition and operations of the Relevant Parties with a view to determining whether the Relevant Parties are in compliance with the provisions of the Loan
Documents to the extent applicable to them, and that such review has not disclosed, and such Responsible Officer has no knowledge of, the existence of an Event of Default or Default or, if an Event of Default or Default exists, describing the nature
and period of existence thereof and the action which the Relevant Parties propose to take or have taken with respect thereto and (iii) that as of the date of each Officer’s Certificate, no litigation exists involving Borrower (or any
Property or Properties) in which the potential liability of Borrower in such claim or series of related claims thereunder (including claims brought as a class action) is greater than $500,000 or, if involving any single Property, is greater than
$250,000, in each case, excluding any liability covered by insurance, or, if so, specifying such litigation and the actions being taking in relation thereto. 

(e)    Simultaneously with the delivery of the financial statements of Borrower required by clause (a) above,
a calculation of Underwritten Net Cash Flow for the twelve (12) month period ended on the last day of the calendar quarter for which such financial statements were prepared; 

(f)    Simultaneously with the delivery of the financial statements of Borrower required by clause (a) above,
a duly completed Compliance Certificate, with appropriate insertions, containing the data and calculations set forth on Exhibit B; and 

(g)    Simultaneously with the delivery of the financial statements of Borrower required by clause (a) above,
a certificate executed by a Responsible Officer of Borrower certifying (i) the current Property Tax assessment amounts payable in respect of each Property, (ii) the payment of all Property Taxes prior to the date such Property Taxes become
delinquent, subject to any contest conducted in accordance with Section 4.4.5 and (iii) if either (A) an Acceptable Blanket Policy is not in place with respect to all Properties or (B) an Acceptable Blanket
Policy is in place with respect to all Properties but Borrower has elected to reinstate deposits of Insurance Premiums to the Insurance Subaccount pursuant to Section 6.2.3, the monthly cost of the Insurance Premiums with
respect to the Policies required under in Section 5.1.1 that are required to be deposited into the Insurance Subaccount pursuant to Section 6.2. 

4.3.2    Annual Budget. Borrower shall submit to Lender by December 6, 2017, and December 1 of
each succeeding year the Annual Budget relating to the Properties for the succeeding calendar year. During the continuance of a Cash Sweep Period, Lender shall have the right to approve each Annual Budget or portion thereof, as applicable (which
approval shall not be unreasonably, conditioned or delayed withheld so long as no Event of Default is 

  
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continuing). An Annual Budget so approved by Lender or any Annual Budget submitted prior to the commencement of a Cash Sweep Period shall each hereinafter be referred to as an “Approved
Annual Budget”. In the event of a Transfer of any Property the Approved Annual Budget shall be reduced as reasonably determined by Lender in consultation with Borrower in order to reflect the removal of such Property and the Operating
Expenses associated therewith; provided, further, that no such reduction shall be made in the event such Transfer is made in connection with a substitution under Section 2.4.2(a). If Lender has
the right to approve an Annual Budget (or portion thereof) pursuant to this Section 4.3.2, Borrower shall not change or modify the Annual Budget (or such portion) that has been approved by Lender without the prior written
consent of Lender (which consent shall not be unreasonably withheld, conditioned or delayed so long as no Event of Default is continuing). The “Monthly Budgeted Amount” for each Payment Date shall mean the monthly amount set forth
in the Approved Annual Budget for Operating Expenses for the Interest Period related to such Payment Date, but excluding management fees, Property Taxes that are required to be deposited into the Tax Subaccount pursuant to
Section 6.1 and Insurance Premiums that are required to be deposited into the Insurance Subaccount pursuant to Section 6.2. If during any Cash Sweep Period, Borrower has submitted an Annual Budget
and such Annual Budget has not been approved prior to the commencement of the calendar year (or applicable portion thereof) to which such budget relates then the previous Approved Annual Budget (or applicable portion thereof) shall continue to
be deemed to be the Approved Annual Budget for that calendar year (or applicable portion thereof). 

4.3.3    Reporting on Adverse Effects. Promptly and in no event more than two (2) Business Days after
any Responsible Officer of any Loan Party obtains knowledge of any matter or the occurrence of any event concerning any other Loan Party which would reasonably be expected to have a Material Adverse Effect, written notice thereof. 

4.3.4    Litigation. Prompt written notice to Lender of any litigation or governmental proceedings pending
or to the actual knowledge of a Responsible Officer of any Loan Party, threatened in writing against any Loan Party with respect to any Property, which would reasonably be expected to have a Material Adverse Effect or an Individual Material Adverse
Effect with respect to any Property. 
 4.3.5    Event of Default. Promptly after any Responsible Officer
of any Loan Party obtains knowledge of the occurrence of each Event of Default or Default (if such Default is continuing on the date of such notice), a statement of a Responsible Officer of Borrower setting forth the details of such Event of Default
or Default and the action which such Loan Party is taking or proposes to take with respect thereto. 

4.3.6    Other Defaults. Promptly and in no event more than two (2) Business Days after any Responsible
Officer of Borrower obtains actual knowledge of any default by any Loan Party under any agreement other than the Loan Documents to which such Loan Party is a party which would reasonably be expected to have a Material Adverse Effect, the statement
of a Responsible Officer of Borrower setting forth the details of such default and the action which such Loan Party is taking or proposes to take with respect thereto. 

4.3.7    Properties Schedule. Borrower shall deliver to Lender no later than the twentieth (20th) Business Day of each calendar month (provided, that if such twentieth (20th) day 

  
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is not a Business Day, then such delivery shall be permitted on the immediately succeeding Business Day), commencing with the calendar month ended December 31, 2017, (a) an updated
Properties Schedule in Excel format containing each of the data fields set forth on Schedule II.B (other than those under the caption “BPO Values”); provided, that the information under the caption
“Underwritten Net Cash Flow” need only be updated in the Properties Schedule delivered for the quarter ending in March, June, September and December of each year, commencing with the Properties Schedule delivered for the quarter ending in
March 2018 and (b) a calculation of the monthly turnover rate for the Properties for the prior calendar month, which shall be equal to the number of Properties that became vacant during such calendar month divided by the daily average number of
Properties during such calendar month. The foregoing information shall be delivered together with a certificate of a Responsible Officer of Borrower certifying that it is true, correct and complete in all material respects (i) with respect
to the information in the Properties Schedule other than Underwritten Net Cash Flow data, as of the last day of the preceding calendar month, (ii) with respect to the Underwritten Net Cash Flow data in the Properties Schedule, for the calendar
quarter most recently ended, and (iii) with respect to the turnover rate of the Properties, for the prior calendar month. In addition, Borrower shall deliver to Lender no later than sixty (60) days after the end of the first three
(3) calendar quarters and within ninety (90) days of the fourth calendar quarter of each year, a report in Excel format containing the information set forth on Schedule II.C presented separately for each MSA (the
“Quarterly Investor Rollup Report”). The foregoing information shall be delivered together with a certificate of a Responsible Officer of Borrower certifying that it is true, correct and complete (i) with respect to the
information in the Properties Schedule, as of the last day of the preceding quarter and (ii) with respect to the turnover rate of the Properties, for the prior calendar quarter. 

4.3.8    Disqualified Properties. Promptly and in no event more than twenty (20) Business Days after
any Responsible Officer of Borrower obtains actual knowledge that any Property fails to comply with the Property Representations or the Property Covenants, written notice thereof and the action that Borrower is taking or proposes to take with
respect thereto. 
 4.3.9    Security Deposits in Cash Management Account. On the Business Day prior to
each Payment Date, commencing with the calendar month ending December 31, 2017, written notice of the aggregate amount of security deposits deposited into the Cash Management Account during such month; provided that the notice
given for the calendar month ending December 31, 2017 shall include security deposits deposited into the Cash Management Account during the period from and including the Closing Date through and including December 31, 2017. 

4.3.10    Advance Rents Received. On the Business Day prior to each Payment Date, commencing with the
calendar month ending December 31, 2017, written notice of any Advance Rents received during such calendar month and the related Advance Rent Disbursement Schedules; provided that the notice given for the calendar month ending
December 31, 2017 shall include Advance Rents received by Borrower for the period from and including the Closing Date through and including December 31, 2017. 

4.3.11    Rent Refunds. On the Business Day prior to each Payment Date, commencing with the calendar month
ending December 31, 2017, written notice of any Rent Refunds made by 

  
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Borrower; provided that the notice given for the calendar month ending December 31, 2017 shall include Rent Refunds made by Borrower during the period from and including the
Closing Date through and including December 31, 2017. 
 4.3.12    ERISA Matters. 

(a)    As soon as reasonably possible, and in any event within thirty (30) days after the occurrence of any ERISA
Event, written notice of, and any requested information relating to such ERISA Event. 
 (b)    As soon as reasonably
possible after the occurrence of a Plan Termination Event, written notice of any action that any Loan Party or any of its ERISA Affiliates proposes to take with respect thereto, along with a copy of any notices received from or filed with the PBGC,
the IRS or any Multiemployer Plan with respect to such Plan Termination Event, as applicable. 
 (c)    As soon as
reasonably possible, and in any event within thirty (30) days after a Responsible Officer of any Loan Party has actual knowledge of, or with respect to any Plan or Multiemployer Plan to which such Loan Party or any of its ERISA Affiliates makes
direct contributions has reason to believe, that any of the events or conditions specified below with respect to any Plan or Multiemployer Plan has occurred or exists, a statement signed by a Responsible Officer of Borrower setting forth details
respecting such event or condition and the action, if any, that the applicable Loan Party or any of its ERISA Affiliates proposes to take with respect thereto (and a copy of any report or notice required to be filed with or given to PBGC by any such
Loan Party or any of its ERISA Affiliates with respect to such event or condition): 
 (i)    any
Reportable Event with respect to a Plan, as to which the PBGC has not by regulation or otherwise waived the requirement of Section 4043(a) of ERISA that it be notified within thirty (30) days of the occurrence of such event (provided that
a failure to meet the minimum funding standard of Section 412 of the Code or Section 302 of ERISA, including the failure to make on or before its due date a required installment under Section 412(m) of the Code or Section 302(e)
of ERISA, shall be a Reportable Event regardless of the issuance of any waivers in accordance with Section 412(d) of the Code); and any request for a waiver under Section 412(d) of the Code for any Plan; 

(ii)    the distribution under Section 404(c) of ERISA of a notice of intent to terminate any Plan or
any action taken by any Loan Party or any of its ERISA Affiliates to terminate any Plan; 
 (iii)    the
institution by the PBGC of proceedings under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by any Loan Party or any of their ERISA Affiliates of a notice from a
Multiemployer Plan that such action has been taken by PBGC with respect to such Multiemployer Plan; 

(iv)    the complete or partial withdrawal from a Multiemployer Plan by any Loan Party or any of its ERISA
Affiliates, as applicable, that results in liability under Section 4201 or 4204 of ERISA (including the obligation to satisfy secondary liability as a result of a purchaser default) or the receipt by any Loan Party or any of its ERISA

  
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Affiliates, as applicable, of notice from a Multiemployer Plan that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA or that it intends to terminate or has
terminated under Section 4041A of ERISA; 
 (v)    the institution of a proceeding by a fiduciary of
any Multiemployer Plan against any Loan Party or any of its ERISA Affiliates, as applicable, to enforce Section 515 of ERISA; and 

(vi)    failure to satisfy Section 436 of the Code. 

4.3.13    Leases. Borrower shall deliver to Lender copies of the executed Leases for the Properties within
twenty (20) Business Days of request therefor by Lender. 
 4.3.14    [Reserved]. 

4.3.15    Other Reports. 

(a)    Borrower shall deliver to Lender, within twenty (20) Business Days of Lender’s request therefor, copies of
any requested Property Tax, Other Charge or insurance bills, statements or invoices received by Borrower or any Loan Party with respect to the Properties. 

(b)    Borrower shall, as soon as reasonably practicable after request by Lender furnish or cause to be furnished to
Lender in such manner and in such detail as may be reasonably requested by Lender, such additional information, documents, records or reports as may be reasonably requested with respect to the Property or the conditions or operations, financial or
otherwise, of the Relevant Parties. 
 4.3.16    [Reserved]. 

Section 4.4    Property Covenants. Borrower shall comply with the following covenants with respect to
each Property: 
 4.4.1    Ownership of the Property. Borrower shall warrant and defend (a) the title
to each Property and the related Collateral and (b) the validity and priority of the Lien of the Mortgages on the Properties, in each case against the claims of all Persons whomsoever; subject only to Permitted Liens and Transfers permitted
hereunder. 
 4.4.2    Liens Against the Property. Borrower shall not, and shall cause
Borrower TRS not to, create, incur, assume or permit to exist any Lien on any interest in any Property, except for the Permitted Liens. 

4.4.3    Condition of the Property. Except if the Property has suffered a Casualty and is in the process
being restored in accordance with Section 5.4, Borrower shall, and shall cause Borrower TRS to, keep and maintain in all material respects all Properties owned by Borrower or Borrower TRS, as applicable, in a good, safe and
habitable condition and repair and free of and clear of any damage or waste, and from time to time make, or cause to be made, in all material respects, all reasonably necessary repairs, renewals, replacements, betterments and improvements thereto,
necessary to comply with the Renovation Standards and applicable Legal 

  
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Requirements in all material respects; provided, that a Carry-Over Property need not comply with the Renovation Standards for so long as it is leased to the applicable Carry-Over
Tenant and for so long thereafter as is reasonably necessary to renovate such Property in accordance with the Renovation Standards. 

4.4.4    Compliance with Legal Requirements. The Property (including the leasing and intended use thereof)
shall comply in all material respects with all applicable Legal Requirements, including, without limitation, building and zoning ordinances and codes and all certifications, permits, licenses and approvals, including without limitation, certificates
of completion and occupancy permits, required for the legal leasing, use, occupancy, habitability and operation of the Property, all such certifications, permits, licenses and approvals shall be maintained in full force and effect, except as would
not reasonably be expected to have an Individual Material Adverse Effect on the Property. Borrower shall, and shall cause Borrower TRS to, obtain and maintain in full force and effect all consents, approvals, orders, certifications, permits,
licenses and authorizations of, and make all filings with or notices to, any court or Governmental Authority related to the operation, use or leasing of the Property except where the failure to obtain would not reasonably be expected to have an
Individual Material Adverse Effect with respect to the Property. Borrower shall not, and shall not permit Equity Owner, Borrower TRS, any Manager or, to the extent permitted by the applicable Lease and Legal Requirements, any other Person in
occupancy of or involved with the operation, use or leasing of the Property, to, commit any act or omission affording any Governmental Authority the right of forfeiture as against the Property or any part thereof. 

4.4.5    Property Taxes and HOA Fees. Borrower shall promptly pay or cause to be paid all Property Taxes and
HOA Fees now or hereafter levied, assessed or imposed on it as the same become due and payable and shall furnish to Lender evidence of payment of Property Taxes and HOA Fees prior to the date the same shall become delinquent, and shall promptly pay
for all utility services provided to the Property as the same become due and payable (other than any such utilities which are, pursuant to the terms of any Lease, required to be paid by the Tenant thereunder directly to the applicable service
provider); provided, that, after prior written notice to Lender of its intention to contest any such Property Taxes and HOA Fees, such Loan Party may contest by appropriate legal proceedings conducted in good faith and with due
diligence, the amount or validity of any such Property Taxes and HOA Fees and, in such event, may permit the Property Taxes and HOA Fees so contested to remain unpaid during any period, including appeals, when a Loan Party is in good faith
contesting the same so long as (a) no Event of Default has occurred and remains uncured, (b) such proceeding shall be permitted under and be conducted in accordance with all applicable Legal Requirements, (c) no Property or other
Collateral nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled or lost, (d) the applicable Loan Party has set aside on its books adequate reserves in accordance with GAAP, and the non-payment or non-discharge of such Property Taxes and HOA Fees would not reasonably be expected to have an Individual Material Adverse Effect on the applicable Property,
(e) enforcement of the contested Property Taxes and HOA Fees is effectively stayed for the entire duration of such contest and no Lien is imposed on any Property or other Collateral which is reasonably expected to have an Individual Material
Adverse Effect, (f) any Property Taxes and HOA Fees determined to be due, together with any interest or penalties thereon, is promptly paid as required after final resolution of such contest, (g) to the extent such Property Taxes and HOA
Fees (when aggregated with all other Taxes that any Loan 

  
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Party is then contesting under Section 4.1.4 or Section 4.4.5 and for which Borrower has not delivered to Lender any Contest Security) exceed
$2,500,000, Borrower shall deliver to Lender either (i) cash, or other security as may be approved by Lender, in an amount sufficient to insure the payment of any such Property Taxes and HOA Fees, together with all interest and penalties
thereon or (ii) a payment and performance bond in an amount equal to one hundred percent (100%) of the contested amount from a surety acceptable to Lender in its reasonable discretion, (h) failure to pay such Property Taxes and HOA Fees
will not subject Lender to any civil or criminal liability, (i) such contest shall not affect the ownership, use or occupancy of any Property, and (j) Borrower shall, upon request by Lender, give Lender prompt notice of the status of such
proceedings and/or confirmation of the continuing satisfaction of the conditions set forth in clauses (a) through (j) of this Section 4.4.5. Notwithstanding the foregoing, Borrower shall pay any contested Property
Taxes and HOA Fees (or, if cash or other security has been provided, Lender may pay over any such cash or other security held by Lender to the claimant entitled thereto) if, in the Lender’s reasonable judgment, any Property or other Collateral
(or any part thereof or interest therein) shall be in danger of being sold, forfeited, terminated, cancelled or lost or there shall be any danger of the Lien of any Collateral Document being primed by any related Lien. 

4.4.6    Compliance with Agreements Relating to the Properties. Borrower shall not, and shall cause Borrower
TRS not to, enter into any agreement or instrument or become subject to any restriction which would reasonably be expected to have an Individual Material Adverse Effect on any Property. Borrower shall not, and shall cause Borrower TRS not to,
default in any material respect in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement or instrument to which any Property is bound. Borrower shall not, and shall cause Borrower
TRS not to, have a material financial obligation under any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument by which any Property is bound, other than obligations under the Loan Documents. Borrower shall not, and
shall cause Borrower TRS not to, default in any material respect in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any Permitted Lien with respect to any Property. Except as set forth on
Schedule III, no Property or any part thereof shall be subject to any purchase options, rights of first refusal, rights of first offer or other similar rights in favor of any Tenant or other third
parties. 
 4.4.7    Leasing. Borrower shall not, and shall cause Borrower TRS not to, enter into any
Lease (including any renewals or extensions of any existing Lease) for any Property unless such Lease is an Eligible Lease with an Eligible Tenant or a Lease with a Carry-Over Tenant. 

  
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 ARTICLE V - INSURANCE; CASUALTY; CONDEMNATION 

Section 5.1    Insurance. 

5.1.1    Insurance Policies. 

(a)    Borrower shall obtain and maintain, at its sole cost and expense for the term of this Agreement or cause to be
maintained, insurance for Borrower and the Properties providing at least the following coverages: 

(i)    comprehensive “all risk” or special causes of loss form insurance, as is available in the
insurance market as of the Closing Date, on the Properties (A) in an amount equal to one hundred percent (100%) of the “full replacement cost”, which for purposes of this Agreement shall mean actual replacement value of the
Properties, subject to a loss limit equal to $50,000,000 per occurrence; (B) containing an agreed amount endorsement with respect to the Improvements and personal property at any Property waiving all co insurance provisions or to be written on
a no co insurance form and (C) providing for no deductible in excess of $25,000 (it being understood that, so long as no Default or Event of Default has occurred and is continuing (1) Borrower may utilize a $3,000,000 aggregate deductible
stop loss subject to a $25,000 per occurrence deductible and a $25,000 maintenance deductible following the exhaustion of the aggregate, (2) the aggregate stop loss does not apply to any losses arising from named windstorm, earthquake or flood,
(3) the perils of named windstorm and the peril of “other wind and hail” shall be permitted to have a minimum deductible of $100,000 per occurrence for any and all affected Properties, except that the permitted minimum deductible for
the named windstorm peril shall be permitted to (a) have a per occurrence deductible in certain Tier 1 locations in Texas of three percent (3%) of the total insurable value of the affected Properties, (b) have a per occurrence deductible
for properties in Florida of five percent (5%) of the total insurable value of the affected Properties, and (c) have a per occurrence deductible in certain Tier 1 locations in from Georgia to Virginia of two percent (2%) of the total insurable
value of the affected Properties, (each with a minimum deductible of $100,000 per occurrence for any and all affected Properties), (4) the perils of flood shall be permitted to have a minimum deductible of $50,000 for any and all affected
Properties, except that the perils of special flood shall be permitted to have a minimum of $250,000 per occurrence for any and all affected Properties, and (5) the peril of earth movement including but not limited to earthquake shall be
permitted to have a per occurrence deductible of (a) five percent (5%) of the total insurable value of the affected Properties located in California, Hawaii, Alaska and Puerto Rico (b) two percent (2%) of the total insurable value of the
affected Properties located in certain counties in the Pacific Northwest and near New Madrid (each with a minimum deductible of $100,000 per occurrence for any and all affected Properties). In addition, Borrower shall obtain (x) flood insurance
in an amount equal to $10,000,000 applying per occurrence and in the aggregate, (y) with respect to earthquake insurance the greater of (1) the amount of coverage in place on the Closing Date and (2) the greater of (i) coverage
in an amount applying per occurrence and in the aggregate, in an amount equal to the Probable Maximum Loss (PML) or Scenario Expected Limit (SEL) based upon a seismic risk analysis for a 475 year event for the entire portfolio at risk or (ii) 100%
of Gross Loss Probable Maximum Loss (Gross Loss PML) or Scenario Expected Limit (SEL) based upon a seismic risk analysis for a 10,000-year event for the entire portfolio at risk (such analysis to be secured by
Borrower utilizing a third-party firm qualified to perform such seismic risk analysis using the most current RMS software, or its equivalent, to include consideration of loss amplification, at the expense of the applicable Borrower at least two
times per year or more frequently as may reasonably be requested by Lender and shared with Lender presented by the Properties located in areas prone to seismic activity) and (z) with respect to named storm insurance the greater of (1) the
amount of coverage in place on the Closing Date and (2) the greater of (i) coverage in an amount equal to the Probable 

  
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Maximum Loss (PML) or Scenario Expected Limit (SEL) based upon a storm risk analysis for a 475 year event for the entire portfolio at risk or (ii) 100% of Gross Loss Probable Maximum Loss (Gross
Loss PML) or Scenario Expected Limit (SEL) based upon a storm risk analysis for a 10,000-year event for the entire portfolio at risk (such analysis to be secured by Borrower using a third-party firm qualified
to perform such named storm risk analysis using the most current RMS software, or its equivalent, to include consideration of storm surge, if applicable, and loss amplification, at the expense of the applicable Borrower at least two times per year
or more frequently as may reasonably be requested by Lender and shared with Lender); provided, that such flood, earth movement and named storm insurance shall otherwise be on terms consistent with the comprehensive all risk insurance policy required
under this Section 5.1.1(a)(i). In addition, Borrower shall obtain the flood insurance coverage described in subclause (x) above for a Property if any portion of such Property is currently or at any time
in the future located in a federally designated “special flood hazard area”, flood hazard insurance or its equivalent in an amount equal to the maximum amount of such insurance available under the National Flood Insurance Act of 1968, the
Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act of 1994, as each may be amended; 

(ii)    business income or rental loss insurance, written on an “Actual Loss Sustained Basis” (A)
with loss payable to Lender for the benefit of Lenders; (B) covering all risks required to be covered by the insurance provided for in Section 5.1.1(a)(i), (iii), (iv) and (viii); (C) in an amount equal to one
hundred percent (100%) of the aggregate projected net income plus continuing expenses from the operation of the Properties for a period of at least twelve (12) months after the date of the Casualty; and (D) containing an extended period of
indemnity endorsement which provides that after the physical loss to the Improvements and personal property at a Property has been repaired, the continued loss of income will be insured until such income either returns to the same level it was at
prior to the loss, or the expiration of thirty (30) days from the date that the applicable Property is repaired or replaced and operations are resumed, whichever first occurs, and notwithstanding that the policy may expire prior to the end of
such period. The amount of such business income or rental loss insurance shall be determined prior to the Closing Date and at least once each year thereafter based on Borrower’ reasonable estimate of the net income from each Property for
the succeeding twelve (12) month period. All proceeds payable to Lender pursuant to this subsection shall be held by Lender in the Casualty and Condemnation Subaccount and disbursed to the Cash Management Account during the month to which
such proceeds relate (or in the month received if such proceeds relate to a month prior to the month in which such proceeds were received); provided, however, that nothing herein contained shall be deemed to
relieve Borrower of their obligation to pay the Obligations on the respective dates of payment provided for in this Agreement and the other Loan Documents except to the extent such amounts are actually paid out of the proceeds of such business
income insurance; 
 (iii)    at all times during which structural construction, repairs or renovations
are being made with respect to any Property, and only if each of the property coverage form and the liability insurance coverage form does not otherwise apply, 

  
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(A) owner’s contingent or protective liability insurance, otherwise known as Owner Contractor’s Protective Liability (or its equivalent), covering claims not covered by or under
the terms or provisions of the above mentioned commercial general liability insurance policy and (B) the insurance provided for in Section 5.1.1(a) written in a so-called
builder’s risk completed value form including coverage for all insurable hard and soft costs of construction (x) on a non-reporting basis, (y) against all risks insured against pursuant to
Section 5.1.1(a)(i), (iii), (iv) and (viii), (z) including permission to occupy such Property and (C) with an agreed amount endorsement waiving
co-insurance provisions; 
 (iv)    commercial general liability
insurance against claims for personal injury, bodily injury, death or property damage occurring upon, in or about any Property, such insurance (A) to be on the so-called “occurrence” form with a
combined limit of not less than One Million and No/100 Dollars ($1,000,000.00) per occurrence; Two Million and No/100 Dollars ($2,000,000.00) in the aggregate “per location” and overall $20,000,000.00 in the aggregate; (B) to continue
at not less than the aforesaid limit until required to be changed by Lender in writing by reason of changed economic conditions making such protection inadequate and (C) to be at least as broad as Insurance Services Offices (ISO) policy form CG
00 01; 
 (v)    if applicable, automobile liability coverage for all owned and non-owned vehicles, including rented and leased vehicles, containing minimum limits per occurrence of One Million and No/100 Dollars ($1,000,000.00); 

(vi)    if applicable, worker’s compensation subject to the worker’s compensation laws of the
applicable state, and employer’s liability in amounts reasonably acceptable to Lender; 

(vii)    umbrella and excess liability insurance in an amount not less than Fifty Million and No/100
Dollars ($50,000,000.00) per occurrence and in the aggregate on terms consistent with the commercial general liability insurance policy required under Section 5.1.1(a)(iv), and including employer liability and automobile
liability, if applicable; and 
 (viii)    upon sixty (60) days’ written notice, such
other reasonable insurance, and in such reasonable amounts as Lender from time to time may reasonably request against such other insurable hazards which at the time are commonly insured against for properties similar to the Properties located in or
around the region in which Properties are located. 
 (b)    All Policies required pursuant to
Section 5.1.1 shall: (i) be obtained under valid and enforceable policies (collectively, the “Policies” or in the singular, the “Policy”), and shall be subject to the approval of
Lender as to insurance companies, amounts, deductibles, loss payees and insureds and (ii) be issued by financially sound and responsible insurance companies authorized to do business in the states where the applicable Properties are located and
having a rating of “A3” or better by Moody’s or, if Moody’s does not provide a rating of an applicable insurance company, a rating of “A-” or better by S&P or Fitch;
provided, however, that if 

  
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Borrower elects to have its insurance coverage provided by a syndicate of insurers, then, if such syndicate consists of five (5) or more members, (A) at least sixty percent (60%) of the
insurance coverage (or seventy-five percent (75%) if such syndicate consists of four (4) or fewer members) and one hundred percent (100%) of the first layer of such insurance coverage shall be provided by insurance companies having a rating of
“A3” or better by Moody’s or, if Moody’s does not provide a rating of an applicable insurance company, a rating of “A-” or better by S&P or Fitch and (B) the remaining
forty percent (40%) of the insurance coverage (or the remaining twenty-five percent (25%) if such syndicate consists of four (4) or fewer members) shall be provided by insurance companies having a rating of “Baa2” by Moody’s or,
if Moody’s does not provide a rating of an applicable insurance company, a rating of “BBB” or better by S&P or Fitch; 

(c)    All Policies of insurance provided for in Section 5.1.1(a), except for the Policies
referenced in Section 5.1.1(a)(vi), shall contain clauses or endorsements to the effect that: 

(i)    no act or negligence of Borrower, or anyone acting for Borrower, or of any Tenant or other occupant,
or failure to comply with the provisions of any Policy, which might otherwise result in a forfeiture of the insurance or any part thereof, shall in any way affect the validity or enforceability of the insurance insofar as Lender is concerned; 

(ii)    the Policy shall not be canceled without at least thirty (30) days’ written notice to
Lender and any other party named therein as an additional insured (other than in the case of non-payment in which case only ten (10) days prior notice, or the shortest time allowed by applicable
Legal Requirement (whichever is longer), will be required) and shall not be materially changed (other than to increase the coverage provided thereby) without such a thirty (30) day notice; 

(iii)    Lender shall not be liable for any Insurance Premiums thereon or subject to any assessments
thereunder; and 
 (iv)    the issuers thereof shall give notice to Lender if a Policy has not been
renewed ten (10) days prior to its expiration. 
 (d)    Certificates of insurance evidencing the Policies shall be
delivered to Lender on the Closing Date with respect to the current Policies. Further, not less than ten (10) days prior to the expiration dates of the Policies theretofore furnished to Lender, Borrower shall deliver to Lender certificates of
insurance evidencing the Policies (and, upon the written request of Lender, copies of such Policies) accompanied by evidence satisfactory to Lender of payment of the premiums due thereunder (the “Insurance Premiums”). 

(e)    Any blanket insurance Policy shall otherwise provide the same protection as would a separate Policy insuring only
the Properties in compliance with the provisions of Section 5.1.1(a) (any such blanket policy, an “Acceptable Blanket Policy”). 

(f)    All Policies of insurance provided for or contemplated by Section 5.1.1(a), except for
the Policy referenced in Section 5.1.1(a)(iv), shall name Borrower as the insured and Lender and its successors and/or assigns as mortgagee and loss payee, as its 

  
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interests may appear, and in the case of property damage, boiler and machinery, windstorm, flood and earthquake insurance, shall contain a standard
non-contributing mortgagee clause in favor of Lender providing that the loss thereunder shall be payable to Lender unless below the threshold for Borrower to handle such claim without Lender intervention as
provided in Section 5.2. Additionally, if Borrower obtains property insurance coverage in addition to or in excess of that required by Section 5.1.1(a)(i), then such insurance
policies shall also contain a standard non-contributing mortgagee clause in favor of Lender providing that the loss thereunder shall be payable to Lender. 

(g)    If at any time Lender is not in receipt of written evidence that all insurance required hereunder is in full force
and effect, Lender shall have the right, without notice to Borrower, to take such action as Lender deems necessary to protect its interest in the Properties, including, without limitation, the obtaining of such insurance coverage as Lender in its
sole discretion deems appropriate after three (3) Business Days notice to Borrower if prior to the date upon which any such coverage will lapse or at any time Lender deems necessary (regardless of prior notice to Borrower) to avoid the lapse of
any such coverage. All premiums incurred by Lender in connection with such action or in obtaining such insurance and keeping it in effect shall be paid by Borrower to Lender upon demand and, until paid, shall be secured by the Collateral Documents
and shall bear interest at the Default Rate. 
 (h)    In the event of foreclosure of the pledge of the Equity Interest
of Borrower pursuant to the Equity Owner Security Agreement the Policies shall remain in full force and effect. 

Section 5.2    Casualty. If one or more Properties are damaged or destroyed in whole or in part by fire
or other casualty (a “Casualty”) and either (a) the aggregate loss amount is or is reasonably expected to exceed $25,000 or (b) any damaged Property is or is reasonably expected to be rendered uninhabitable for more than
thirty (30) days as a result of the Casualty, then Borrower (i) is required to file proof of loss under the applicable Policy or Policies and (ii) shall give prompt notice of the Casualty to Lender. Lender may, but shall not be
obligated to make proof of loss if not made promptly by Borrower. In addition, Lender may participate in any settlement discussions with any insurance companies (and shall approve any final settlement) (x) if an Event of Default is continuing
or (y) with respect to any single Casualty event in which the Net Proceeds or the costs of completing the Restoration of the affected Property or Properties are reasonably expected to be equal to or greater than the Casualty Threshold Amount
and Borrower shall deliver to Lender all instruments required by Lender to permit such participation. Any Insurance Proceeds in connection with any Casualty (whether or not Lender elects to settle and adjust the claim or Borrower settles such claim)
shall be due and payable solely to Lender and held by Lender in accordance with the terms of this Agreement. If Borrower or any party other than Lender receives any Insurance Proceeds or Condemnation Proceeds, Borrower shall immediately deliver
such proceeds to Lender and shall endorse, and cause all such third parties to endorse, check payable therefor to the order of Lender. Borrower hereby irrevocably appoints Lender as its
attorney-in-fact, coupled with an interest, to endorse any such check payable to the order of Lender. Borrower hereby releases Lender from any and all liability with
respect to the settlement and adjustment by Lender of any claims in respect of any Casualty, except to the extent Lender has engaged in any gross negligence, fraud or willful misconduct in respect thereto. 

  
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 Section 5.3    Condemnation. Borrower shall promptly give
Lender notice of the actual or, to the extent in writing, threatened commencement of any proceeding for the Condemnation of all or any portion of a Property and shall deliver to Lender copies of any and all papers served in connection with such
proceedings. Lender may participate in any such proceedings, and Borrower shall from time to time deliver to Lender all instruments requested by it to permit such participation. Borrower shall, at its expense, diligently prosecute any such
proceedings, and shall consult with Lender, its attorneys and experts, and cooperate with them in the carrying on or defense of any such proceedings which is reasonably expected to involve an Award of an amount greater than the Casualty Threshold
Amount. Notwithstanding any taking by any public or quasi-public authority through Condemnation or otherwise (including, but not limited to, any transfer made in lieu of or in anticipation of the exercise of such taking), Borrower shall continue to
pay the Debt at the time and in the manner provided for its payment in the Note and in this Agreement and the Debt shall not be reduced until any Condemnation Proceeds shall have been actually received and applied by Lender, after the deduction of
expenses of collection, to the reduction or discharge of the Debt. If Borrower or any party other than Lender receives any Condemnation Proceeds, Borrower shall immediately deliver such proceeds to Lender and shall endorse, and cause all such third
parties to endorse, a check payable therefore to the order of Lender. Lender shall not be limited to the interest paid on the Award by the condemning authority but shall be entitled to receive out of the Award interest at the rate or rates provided
herein or in the Note. Net Proceeds from a Condemnation shall be applied as follows: 
 (a)    If a partial Condemnation
of a Property does not interfere with the use of such Property as a residential rental property, then the Net Proceeds paid by the condemning authority shall be applied to the prepayment of the Debt in accordance with
Section 2.4.2(c). 
 (b)    If a partial Condemnation of a Property does interfere with the
use of such Property as a residential rental property or if there occurs a complete Condemnation of a Property (each, a “Fully Condemned Property”), then (i) if no Event of Default shall have occurred and be continuing and,
within thirty (30) days of the date of the occurrence of such Condemnation, Borrower delivers to Lender a written undertaking to substitute the Fully Condemned Property with a Substitute Property in accordance with the requirements of
Section 2.4.2(a), then (A) if Net Proceeds are paid by the condemning authority directly to Borrower subsequent to such substitution, such Net Proceeds may be retained by Borrower (for the avoidance of doubt, Net
Proceeds received by Borrower prior to such substitution shall be immediately paid to Lender as required by Section 5.2), (B) if Net Proceeds are paid by the condemning authority to Lender, such Net Proceeds will be
disbursed by Lender to Borrower upon the consummation of such substitution and (C) Borrower shall provide a Substitute Property within ten (10) Business Days of the date of such undertaking in accordance with the requirements of
Section 2.4.2(a) and (ii) if an Event of Default shall have occurred and be continuing or Borrower fails to deliver such an undertaking to Lender, then (A) Lender may retain any Net Proceeds received by it,
(B) Borrower shall immediately deliver to Lender any Net Proceeds paid to Borrower, (C) the Net Proceeds shall be applied to the prepayment of the Debt in an amount equal to the Release Amount for the Fully Condemned Property in accordance
with Section 2.4.2(c) and (D) Borrower shall prepay the Loan in an amount equal to the excess, if any, of the Release Amount for the Fully Condemned Property over such Net Proceeds. Promptly following Borrower’s
written request after either (1) the substitution of a Substitute Property for such Fully Condemned Property in accordance with the conditions set 

  
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forth above or (2) receipt by Lender of the Net Proceeds and payment of the Release Amount for such Property, Lender shall (x) release the Fully Condemned Property from the applicable
Mortgage Documents and related Lien, provided, that (A) Borrower has delivered to Lender a draft release (and, in the event the Mortgage and the Collateral Assignment of Leases and Rents applicable to the Fully Condemned Property encumbers
other Property(ies) in addition to the Fully Condemned Property, such release shall be a partial release that relates only to the Fully Condemned Property and does not affect the Liens and security interests encumbering or on the other
Property(ies)) in form and substance appropriate for the jurisdiction in which such Fully Condemned Property is located and shall contain standard provisions protecting the rights of Lender and (B) Borrower shall pay all costs, taxes and
expenses associated with such release (including, without limitation, cost to file and record the release and Lender’s reasonable attorneys’ fees) and (y) disburse to Borrower (A) in the case of a substitution of a Substitute
Property for such Fully Condemned Property, the Net Proceeds paid by the condemning authority and (B) in the case of the payment of the Release Amount for such Property, the Net Proceeds paid by the condemning authority in excess of the Release
Amount for such Property; provided that, during the continuance of a Cash Sweep Period, any such excess Net Proceeds shall instead be delivered to the Cash Collateral Subaccount and disbursed in accordance with
Section 6.6.1 and Section 6.6.2. 

Section 5.4    Restoration. 

The following provisions shall apply in connection with the Restoration of any Property affected by a Casualty: 

(a)    If the Net Proceeds reasonably expected to be received in connection with any single Casualty event is less than
the Casualty Threshold Amount, then, (i) if no Event of Default shall have occurred and be continuing and, within sixty (60) days of the date of the occurrence of such Casualty, Borrower delivers to Lender a written undertaking to
(x) expeditiously commence and to satisfactorily complete with due diligence the Restoration of the affected Properties in accordance with the terms of this Agreement, then (A) if Net Proceeds are paid by the insurance company directly to
Borrower subsequent to delivering such undertaking, such Net Proceeds may be retained by Borrower (for the avoidance of doubt, Net Proceeds received by Borrower prior to delivering such undertaking shall be immediately paid to Lender as required by
Section 5.2), (B) if Net Proceeds are paid by the insurance company to Lender, such Net Proceeds will be disbursed by Lender to Borrower and (C) Borrower shall conduct the Restoration of the affected Properties in
accordance with the terms of Section 5.4(c) or (y) substitute the Property subject to the Casualty event with a Substitute Property in accordance with the requirements of Section 2.4.2(a) and
(ii) if an Event of Default shall have occurred and be continuing or Borrower fails to deliver such an undertaking to Lender, then (A) Lender may retain any Net Proceeds received by it, (B) Borrower shall immediately deliver to
Lender any Net Proceeds paid to Borrower as required by Section 5.2, (C) such Net Proceeds shall be applied to the prepayment of the Debt in an amount equal to the Release Amount for such Property in accordance with
Section 2.4.2(c), (D) Borrower shall prepay the Loan in an amount equal to the excess, if any, of the Release Amount for such Property over such Net Proceeds and (E) promptly following Borrower’s written request
and receipt by Lender of the Net Proceeds and payment by Borrower of the amounts set forth in clause (D) above, if any, Lender shall (x) release the affected Properties from the applicable Mortgage Documents

  
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and related Liens, provided, that (A) Borrower has delivered to Lender draft releases (and, in the event any of the Mortgages and the Assignments of Leases and Rents applicable to any of the
affected Properties encumber other Property(ies) in addition to the affected Properties, such release shall be a partial release that relates only to the affected Property(ies) and does not affect the Liens and security interests encumbering or on
the other Property(ies)) in form and substance appropriate for the jurisdiction in which such affected Properties are located and shall contain standard provisions protecting the rights of Lender and (B) Borrower shall pay all costs, taxes and
expenses associated with such release (including, without limitation, cost to file and record the release and Lender’s reasonable attorneys’ fees) and (y) disburse to Borrower (A) in the case of a substitution of a Substitute
Property for such Property, the Net Proceeds paid by the insurance company and (B) in the case of the payment of the Release Amount for such Property, the Net Proceeds paid by the insurance company in excess of the Release Amount for such
Property, if any; provided that, during the continuance of a Cash Sweep Period, any such excess Net Proceeds shall instead be delivered to the Cash Collateral Subaccount and disbursed in accordance with
Section 6.6.1 and Section 6.6.2. 
 (b)    If the Net Proceeds
reasonably expected to be received in connection with any single Casualty event is greater than the Casualty Threshold Amount, then, (i) if no Event of Default shall have occurred and be continuing and, within sixty (60) days of the date
of the occurrence of such Casualty, Borrower delivers to Lender a written undertaking to (x) expeditiously commence and to satisfactorily complete with due diligence the Restoration of the affected Properties in accordance with the terms of
this Agreement, then (A) Borrower shall immediately deliver to Lender any Net Proceeds paid to Borrower as required by Section 5.2 and (B) Borrower shall conduct the Restoration of the affected Properties in
accordance with the terms of and subject to the conditions of Section 5.4(d) or (y) substitute the Property subject to the Casualty event with a Substitute Property in accordance with the requirements of
Section 2.4.2(a) and (ii) if an Event of Default shall have occurred and be continuing or Borrower fails to deliver such an undertaking to Lender, then (A) Lender may retain any Net Proceeds received by it,
(B) Borrower shall immediately deliver to Lender any Net Proceeds paid to Borrower as required by Section 5.2, (C) such Net Proceeds shall be applied to the prepayment of the Debt in an amount equal to the Release
Amount for such Property in accordance with Section 2.4.2(c), (D) Borrower shall prepay the Loan in an amount equal to the excess, if any, of the Release Amount for the affected Properties over such Net Proceeds and
(E) promptly following Borrower’s written request and receipt by Lender of the Net Proceeds and payment by Borrower of the amounts set forth in clause (D) above, if any, Lender shall (x) release the affected Properties from the
applicable Mortgage Documents and related Liens, provided, that (A) Borrower has delivered to Lender draft releases (and, in the event any of the Mortgages and the Assignments of Leases and Rents applicable to any of the affected Properties
encumber other Property(ies) in addition to the affected Properties, such release shall be a partial release that relates only to the affected Property(ies) and does not affect the Liens and security interests encumbering or on the other
Property(ies)) in form and substance appropriate for the jurisdiction in which such affected Properties are located and shall contain standard provisions protecting the rights of Lender and (B) Borrower shall pay all costs, taxes and expenses
associated with such release (including, without limitation, cost to file and record the release and Lender’s reasonable attorneys’ fees) and (y) disburse to Borrower (A) in the case of a substitution of a Substitute Property for
such Property, the Net Proceeds paid by the insurance company and (B) in the case of the payment of the Release Amount for such Property, the Net 

  
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Proceeds paid by the insurance company in excess of the Release Amount for such Property, if any; provided that, during the continuance of a Cash Sweep Period, any such
excess Net Proceeds shall instead be delivered to the Cash Collateral Subaccount and disbursed in accordance with Section 6.6.1 and Section 6.6.2. 

(c)    If Borrower elects to undertake the Restoration a Property or Properties pursuant to
Section 5.4(a), (i) Borrower shall, subject to applicable Legal Requirements, commence the Restoration as soon as reasonably practicable (but in no event later than ninety (90) days after such Casualty occurs) and
shall diligently pursue the same to satisfactory completion; (ii) Borrower shall cause the affected Property and the use thereof after the Restoration to be in compliance in all material respects with and permitted under all applicable Legal
Requirements and such Property, after Restoration, shall be of the same character as prior to such damage or destruction, in all material respects; (iii) the Restoration shall be done and completed by Borrower in an expeditious and diligent
fashion and in compliance in all material respects with all applicable Legal Requirements and the Renovation Standards and (iv) for any Restoration of a Property with a total expected cost exceeding $25,000, Borrower shall deliver, or cause to
be delivered, to Lender a signed detailed budget approved in writing by Borrower’s architect or engineer stating the entire cost of completing the Restoration, which budget shall be reasonably acceptable to Lender. 

(d)    If Borrower elects to undertake the Restoration of a Property or Properties pursuant to
Section 5.4(b), the following provisions shall apply: 
 (i)    the Net
Proceeds shall be made available to Borrower for Restoration upon the determination of Lender that the following conditions are met: (A) Borrower shall, subject to applicable Legal Requirements, commence the Restoration as soon as reasonably
practicable (but in no event later than ninety (90) days after such Casualty occurs) and shall diligently pursue the same to satisfactory completion; (B) Lender shall be satisfied that any operating deficits, including all scheduled
payments of principal and interest under the Note, which will be incurred with respect to the Properties as a result of the occurrence of the Casualty, whichever the case may be, will be covered out of (1) the Net Proceeds, (2) the
insurance coverage referred to in Section 5.1.1(a)(ii), if applicable, or (3) by other funds of Borrower; (C) Lender shall be satisfied that the Restoration will be completed on or before the earliest to occur of
(1) the date six (6) months prior to the Maturity Date,, (2) the earliest date required for such completion under the terms of any Lease, (3) such time as may be required under applicable Legal Requirements or (4) six
(6) months prior to the expiration of the insurance coverage referred to in Section 5.1.1(a)(ii); (D) Borrower shall cause the affected Property and the use thereof after the Restoration to be in compliance with and
permitted under all applicable Legal Requirements and such Property, after Restoration, shall be of the same character as prior to such damage or destruction; (E) the Restoration shall be done and completed by Borrower in an expeditious and
diligent fashion and in compliance in all material respects with all applicable Legal Requirements and the Renovation Standards; (F) for any Restoration of a Property with a total expected cost exceeding $25,000, Borrower shall deliver, or
cause to be delivered, to Lender a signed detailed budget approved in writing by Borrower’s architect or engineer stating the entire cost of completing the Restoration, which budget shall be reasonably acceptable to Lender and (G) the Net
Proceeds together with any cash or cash equivalent deposited by Borrower with Lender are sufficient in Lender’s discretion to cover the cost of the Restoration. 

  
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 (ii)    The Net Proceeds shall be held by Lender in the
Casualty and Condemnation Subaccount and, until disbursed in accordance with the provisions of this Section 5.4(d), shall constitute additional security for the Debt and other obligations under the Loan Documents. The Net
Proceeds shall be disbursed by Lender to, or as directed by, Borrower from time to time during the course of the Restoration, upon receipt of evidence satisfactory to Lender that (A) all materials installed and work and labor performed (except
to the extent that they are to be paid for out of the requested disbursement) in connection with the Restoration have been paid for in full, and (B) there exist no notices of pendency, stop orders, mechanic’s or materialmen’s liens or
notices of intention to file same, or any similar liens or encumbrances on the Properties which have not been fully bonded to the satisfaction of Lender and discharged of record or in the alternative fully insured to the satisfaction of Lender by
the title company issuing the Title Insurance Policy. 
 (iii)    All plans and specifications required
in connection with the Restoration shall be subject to the prior approval of Lender and an independent consulting engineer selected by Lender (the “Casualty Consultant”), and in each case, such approval shall not be unreasonably
withheld, conditioned or delayed. Lender shall have the use of the plans and specifications and all permits, licenses and approvals required or obtained in connection with the Restoration. The identity of the contractors, subcontractors and
materialmen engaged in the Restoration, as well as the contracts under which they have been engaged, shall be subject to the approval of Lender and the Casualty Consultant, in each case, such approval shall not be unreasonably withheld, conditioned
or delayed. All reasonable out-of-pocket costs and expenses incurred by Lender in connection with recovering, holding and advancing the Net Proceeds for the Restoration
including, without limitation, reasonable attorneys’ fees and disbursements and the Casualty Consultant’s fees and disbursements, shall be paid by Borrower. 

(iv)    In no event shall Lender be obligated to make disbursements of the Net Proceeds in excess of an
amount equal to the costs actually incurred from time to time for work in place as part of the Restoration, as certified by the Casualty Consultant, less the Casualty Retainage. The term “Casualty Retainage” shall mean, as to each
contractor, subcontractor or materialman engaged in the Restoration, an amount equal to ten percent (10%) of the costs actually incurred for work in place as part of the Restoration, as certified by the Casualty Consultant, until the Restoration has
been completed. The Casualty Retainage shall in no event, and notwithstanding anything to the contrary set forth above in this Section 5.4(d), be less than the amount actually held back by Borrower from contractors,
subcontractors and materialmen engaged in the Restoration. The Casualty Retainage shall not be released until the Casualty Consultant certifies to Lender that the Restoration has been completed in accordance with the provisions of this
Section 5.4(b) and that all approvals necessary for the re-occupancy and use of the Property have been obtained from all appropriate Governmental Authorities, and Lender receives
evidence satisfactory to Lender that the costs of the 

  
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Restoration have been paid in full or will be paid in full out of the Casualty Retainage; provided, however, that Lender will release the portion of the Casualty
Retainage being held with respect to any contractor, subcontractor or materialman engaged in the Restoration as of the date upon which (x) the Casualty Consultant certifies to Lender that such contractor, subcontractor or materialman has
satisfactorily completed all work and has supplied all materials in accordance with the provisions of such contractor’s, subcontractor’s or materialman’s contract, (y) the contractor, subcontractor or materialman delivers the
lien waivers and evidence of payment in full of all sums due to the contractor, subcontractor or materialman as may be reasonably requested by Lender or by the title company issuing the Title Insurance Policy, and (z) Lender receives an
endorsement to the Title Insurance Policy insuring the continued priority of the Lien of the applicable Mortgage and evidence of payment of any premium payable for such endorsement. If required by Lender, the release of any such portion of the
Casualty Retainage shall be approved by the surety company, if any, which has issued a payment or performance bond with respect to the contractor, subcontractor or materialman. 

(v)    Lender shall not be obligated to make disbursements of the Net Proceeds more frequently than once
every calendar month. 
 (vi)    If at any time the Net Proceeds or the undisbursed balance thereof shall
not, in the opinion of Lender in consultation with the Casualty Consultant, be sufficient to pay in full the balance of the costs which are estimated by the Casualty Consultant to be incurred in connection with the completion of the Restoration,
Borrower shall deposit the deficiency (the “Net Proceeds Deficiency”) with Lender (for deposit into the Casualty and Condemnation Subaccount) before any further disbursement of the Net Proceeds shall be made. The Net Proceeds
Deficiency deposited with Lender shall be deposited by Lender into the Casualty and Condemnation Subaccount and shall be disbursed for costs actually incurred in connection with the Restoration on the same conditions applicable to the disbursement
of the Net Proceeds, and until so disbursed pursuant to this Section 5.4(d) shall constitute additional security for the Obligations. 

(vii)    The excess, if any, of the Net Proceeds and the remaining balance, if any, of the Net Proceeds
Deficiency deposited with Lender after the Casualty Consultant certifies to Lender that the Restoration has been completed in accordance with the provisions of this Section 5.4(d), and the receipt by Lender of evidence
reasonably satisfactory to Lender that all costs incurred in connection with the Restoration have been paid in full, shall be remitted by Lender to Borrower, provided no Event of Default shall have occurred and shall be continuing. 

(e)    All reasonable out-of-pocket costs
and expenses incurred by Lender in connection with any Restoration including, without limitation, reasonable attorneys’ fees and disbursements, shall be paid by Borrower. 

(f)    [reserved] 

(g)    In the event of foreclosure of a Mortgage, or other transfer of title to a Property or Properties in extinguishment
in whole or in part of the Debt all right, title and interest 

  
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of Borrower in and to the Policies that are not blanket Policies then in force concerning such Property or Properties and all proceeds payable thereunder shall thereupon vest in the purchaser at
such foreclosure or Lender or other transferee in the event of such other transfer of title. 
 ARTICLE VI - RESERVE FUNDS 

Section 6.1    Tax Funds. 

6.1.1    Deposits of Tax Funds. Borrower shall deposit with Lender on each Payment Date an amount equal to one-twelfth (1/12th) of the Property Taxes that Lender estimates will be payable during the next ensuing twelve (12) months, in order to accumulate
sufficient funds to pay all such Property Taxes prior to their respective due dates, which amounts shall be transferred into a Subaccount established at the Cash Management Account Bank to hold such funds (the “Tax Subaccount”).
Amounts deposited from time to time into the Tax Subaccount pursuant to this Section 6.1.1 are referred to herein as the “Tax Funds”. If at any time Lender reasonably determines that the Tax Funds will not
be sufficient to pay the Property Taxes, Lender shall notify Borrower of such determination and, commencing with the first Payment Date following Borrower’s receipt of such written notice, the monthly deposits for Property Taxes shall be
increased by the amount that Lender estimates is sufficient to make up the deficiency at least ten (10) days prior to the respective due dates for the Property Taxes; provided, that if Borrower receives notice of any deficiency
after the date that is ten (10) days prior to the date that Property Taxes are due, Borrower will deposit with or on behalf of Lender such amount within two (2) Business Days after its receipt of such notice. 

6.1.2    Release of Tax Funds. Provided no Event of Default is continuing, Lender shall apply Tax Funds in
the Tax Subaccount to reimburse Borrower for payments of Property Taxes made by Borrower after delivery by Borrower to Lender of evidence of such payment reasonably acceptable to Lender. If the amount of the Tax Funds shall exceed the amounts due
for Property Taxes, Lender shall, in its sole discretion, return any excess to Borrower or credit such excess against future payments to be made to the Tax Funds. Any Tax Funds remaining in the Tax Subaccount after the Obligations have been paid in
full shall be returned to Borrower. Provided no Default or Event of Default exists, the Tax Funds reserved for any Property shall be released upon a permitted sale and release, a substitution or a prepayment of the Allocated Loan Amount of such
Property in accordance with the terms hereof. 
 6.1.3    Special Reserve of Tax Funds. Notwithstanding
the foregoing, in lieu of making the deposits required by Section 6.1.1, Borrower may, by written notice to Lender, elect to maintain in the Tax Subaccount an amount equal to the amount of Property Taxes payable with
respect to the Properties for a period of six (6) months. If such an election is in effect and Lender determines that the Tax Funds in the Tax Subaccount constitute less than the amount described in the previous sentence, Lender shall notify
Borrower of such determination and, commencing with the first Payment Date following Borrower’s receipt of such written notice, Borrower shall deposit into the Tax Subaccount such shortfall. Furthermore, during any period while such an election
is in effect, Borrower shall not be entitled to receive any release of Tax Funds from the Tax Subaccount. Borrower may revoke the election contemplated by this Section 6.1.3 by written notice to Lender;
provided, that (i) such revocation shall not take effect until the first Payment Date that is more than ten (10) Business Days after the date Lender 

  
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receives such notice and (ii) on such Payment Date Borrower shall deposit into the Tax Subaccount an amount reasonably determined by Lender that, when combined with prospective deposits into
the Tax Subaccount contemplated by clause (ii) of Section 6.1.1 will be sufficient funds to pay all Property Taxes with respect to the Properties prior to their respective due dates. 

6.1.4    [Reserved]. 

6.1.5    [Reserved]. 

Section 6.2    Insurance Funds. 

6.2.1    Deposits of Insurance Funds. Borrower shall deposit with or on behalf of Lender on each Payment
Date, an amount equal to one-twelfth (1/12th) of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by
the Policies upon the expiration thereof, in order to accumulate sufficient funds to pay all such Insurance Premiums prior to the expiration of the Policies, which amounts shall be transferred into a Subaccount established at the Cash Management
Account Bank to hold such funds (the “Insurance Subaccount”). Amounts deposited from time to time into the Insurance Subaccount pursuant to this Section 6.2.1 are referred to herein as the
“Insurance Funds”. If at any time Lender reasonably determines that the Insurance Funds will not be sufficient to pay the Insurance Premiums, Lender shall notify Borrower of such determination and the monthly deposits for Insurance
Premiums shall be increased by the amount that Lender estimates is sufficient to make up the deficiency at least thirty (30) days prior to expiration of the Policies. 

6.2.2    Release of Insurance Funds. Provided no Event of Default is continuing, Lender shall apply
Insurance Funds in the Insurance Subaccount to timely pay, or reimburse Borrower for payments of, Insurance Premiums. If the amount of the Insurance Funds shall exceed the amounts due for Insurance Premiums, Lender shall, in its sole discretion,
return any excess to Borrower or credit such excess against future payments to be made to the Insurance Funds. Any Insurance Funds remaining in the Insurance Subaccount after the Obligations have been paid in full shall be returned to Borrower.
Provided no Default or Event of Default exists, the Insurance Funds reserved for any Property shall be released upon a permitted sale and release, a substitution or a prepayment of the Allocated Loan Amount of such Property in accordance with the
terms hereof. 
 6.2.3    Acceptable Blanket Policy. Notwithstanding anything to the contrary contained in
Section 6.2.1, if an Acceptable Blanket Policy is in effect with respect to the Policies required pursuant to Section 5.1.1, deposits into the Insurance Subaccount required for Insurance Premiums
pursuant to Section 6.2.1 shall be suspended to the extent that Insurance Premiums relate to such Acceptable Blanket Policy. Notwithstanding the foregoing, Borrower may, by written notice to Lender given not less than ten
(10) Business Days prior to a Payment Date, elect to reinstate, as of such Payment Date, deposits to the Insurance Subaccount with respect to the Insurance Premiums for one or more of the Policies required pursuant to
Section 5.1.1 for which an Acceptable Blanket Policy is in effect. Further, if Borrower makes such an election, then Borrower may rescind such election by providing a written notice thereof to Lender, which
notice shall be effective as of the Payment Date that follows such notice by more than ten (10) Business Days or such later Payment Date as Borrower specifies in its election. 

  
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 Section 6.3    Capital Expenditure
Funds. 
 6.3.1    Deposits of Capital Expenditure Funds. Borrower shall deposit with or on behalf
of Lender on each Payment Date an amount equal to one-twelfth (1/12th) of the product of (a) $450 multiplied by (b) the number of Properties to
which the Loan is applicable, in order to accumulate sufficient funds, for annual Capital Expenditures, which amounts shall be transferred into a Subaccount established at the Cash Management Account Bank to hold such funds (the “Capital
Expenditure Subaccount”). Amounts deposited from time to time into the Capital Expenditure Subaccount pursuant to this Section 6.3.1 are referred to herein as the “Capital Expenditure Funds”. 

6.3.2    Release of Capital Expenditure Funds. Provided no Event of Default is continuing, Lender shall
disburse Capital Expenditure Funds out of the Capital Expenditure Subaccount to reimburse Borrower for Capital Expenditures actually paid for by Borrower, provided that: (a) such disbursement is for an Approved Capital Expenditure, (b) the
request for disbursement is accompanied by an Officer’s Certificate from Borrower stating that (i) the items to be funded by the requested disbursement are Approved Capital Expenditures, and a description thereof, (ii) all Approved
Capital Expenditures to be funded by the requested disbursement have been completed (or completed to the extent of the requested disbursement) in a good and workmanlike manner and in accordance, in all material respects, with all applicable
Legal Requirements and the Renovation Standards and (iii) the Approved Capital Expenditures to be funded from the disbursement in question have not been the subject of a previous disbursement and have been paid for by Borrower and (c) for
any individual expenditure greater than $25,000, Borrower has delivered to Lender copies of any invoices, bills or statements related to such Approved Capital Expenditures that are requested by Lender. For the avoidance of doubt, Borrower shall not
be entitled to receive a distribution of Capital Expenditure Funds for expenses related to the refurbishment or repair of a Property to the extent that Borrower has been or will be entitled to reimbursement for such expenses from a Tenant’s
security deposit. 
 Section 6.4    Casualty and Condemnation Subaccount. Borrower shall pay,
or cause to be paid, to Lender all Insurance Proceeds or Awards due to any Casualty or Condemnation in accordance with the provisions of Section 5.2 and Section 5.3, which amounts shall be
transferred into a Subaccount established at the Cash Management Bank to hold such funds (the “Casualty and Condemnation Subaccount”). Amounts deposited from time to time into the Casualty and Condemnation Subaccount pursuant
to this Section 6.4 are referred to herein as the “Casualty and Condemnation Funds”. All Casualty and Condemnation Funds shall be held, disbursed and/or applied in accordance with the provisions of
Section 5.3 or Section 5.4, as applicable. 

Section 6.5    Eligibility Reserve Subaccount. 

6.5.1    Deposit of Eligibility Funds. If Borrower shall be required to make a prepayment in respect
of any Property pursuant to Section 2.4.2(a) (other than in the case of any Property that constitutes a Disqualified Property due to the occurrence of a Voluntary Action in respect thereof), Borrower shall have an option to
deposit into a Subaccount established at the Cash Management Bank to hold such funds (the “Eligibility Reserve Subaccount”) an amount 

  
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equal to one hundred percent (100%) of the Allocated Loan Amount for any such Property (“Eligibility Funds”), provided that Borrower provides Lender with written notice of any
such Eligibility Funds and, no later than the due date for the prepayment required under Section 2.4.2(a), delivers such Eligibility Funds with Lender for deposit to the Eligibility Reserve Subaccount. 

6.5.2    Release of Eligibility Funds. Provided no Default or Event of Default exists, Lender shall disburse
the Eligibility Funds with respect to a Property to Borrower upon (a) the sale of such Property and payment in full of the applicable Release Amount, (b) upon such Property becoming an Eligible Property or (c) upon the substitution of
the applicable Disqualified Property with a Substitute Property in accordance with the conditions of Section 2.4.2(a). 

Section 6.6    Cash Collateral. 

6.6.1    Cash Collateral Subaccount. If a Cash Sweep Period shall be continuing, all Available Cash
(after payment of the Monthly Budgeted Amount and any Approved Extraordinary Expenses in accordance with Section 2.7.2(k)) shall be paid to Lender, which amounts shall be transferred by Lender into a Subaccount (the
“Cash Collateral Subaccount”) to be held by Lender as cash collateral for the Debt. Amounts on deposit from time to time in the Cash Collateral Subaccount pursuant to this Section 6.6.1 are referred to as
the “Cash Collateral Funds”. Lender shall have the right, but not the obligation, at any time during the continuance of an Event of Default, in its sole and absolute discretion to apply any and all Cash Collateral Funds then on
deposit in the Cash Collateral Subaccount to the Debt, in such order and in such manner as Lender shall elect in its sole and absolute discretion, including to make a prepayment of principal (together with the applicable Yield Maintenance Premium
applicable thereto) or any other amounts due hereunder. 
 6.6.2    Withdrawal of Cash Collateral Funds.
Provided no Default or an Event of Default hereunder is continuing and there is an amount exceeding one percent (1%) of the Outstanding Principal Balance on deposit in the Cash Collateral Subaccount (the “Cash Collateral Floor”),
Lender shall make disbursements from the Cash Collateral Subaccount of Cash Collateral Funds in excess of the Cash Collateral Floor to pay costs and expenses in connection with the ownership, management and/or operation of the Properties to the
extent such amounts are not otherwise paid pursuant to Section 6.6.1 or by Manager pursuant to the Management Agreement for the following items: (a) Operating Expenses (including management fees, but subject to the
Management Fee Cap) set forth in an Approved Annual Budget (subject to a five percent (5%) variation for Operating Expenses in such Approved Annual Budget), (b) emergency repairs and/or life-safety items (including applicable Capital
Expenditures for such purpose), (c) Capital Expenditures set forth in an Approved Annual Budget (subject to a five percent (5%) variation for Capital Expenditures in such Approved Annual Budget), (d) legal, audit and accounting costs associated
with the Properties or Borrower, excluding legal fees incurred in connection with the enforcement of Borrower’s, rights pursuant to the Loan Documents, (e) payment of Debt Service on the Loan, (f) voluntary or mandatory prepayment of
the Loan (together with any applicable Yield Maintenance Premium), including, without limitation, any Low Debt Yield Cure Prepayment and (g) expenses and shortfalls relating to Restoration; provided, that no disbursements shall be
made from the Cash Collateral Subaccount 

  
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for any of the Operating Expenses or Capital Expenditures described in the foregoing clauses (a) through (d) to the extent amounts for such Operating Expenses or Capital Expenditures
have been distributed to Borrower from the Cash Management Account under Section 2.7.2(k), or may be distributed to Borrower from the Tax Subaccount, the Insurance Subaccount or the Capital Expenditure Subaccount, as
applicable. 
 6.6.3    Release of Cash Collateral Funds. Provided no Cash Sweep Period is continuing as
of two (2) consecutive Calculation Dates, Lender shall release Cash Collateral Funds in the Cash Collateral Subaccount to Borrower; provided, that in the event of a Debt Yield Cure Prepayment, the Lender is required to release the
Cash Collateral Funds to Borrower within two (2) Business Days of the date of such Debt Yield Cure Prepayment. 

6.6.4    Extraordinary Expense. If, during any Cash Sweep Period, Borrower incurs or is required to incur an
operating expense or capital expense which is not set forth in the Approved Annual Budget (each an “Extraordinary Expense”), then Borrower shall promptly deliver to Lender in writing a reasonably detailed explanation of such
Extraordinary Expense. If a Cash Sweep Period then exists, then such Extraordinary Expense shall be subject to Lender’s approval, which approval may not be unreasonably withheld or delayed so long as no Event of Default then exists;
provided, however, that during a Cash Sweep Period, so long as no Event of Default then exists, Lender shall be deemed to have approved any Extraordinary Expense (other than fees paid to any Manager or any amounts
paid to any Affiliates of Borrower) that (a) does not exceed (when aggregated with any and all other requested and unpaid Extraordinary Expenses covered by the same line item of the Approved Annual Budget) ten percent (10%) of the monthly
amount of the applicable line item set forth in the Approved Annual Budget for such month and (b) does not exceed (when aggregated with any and all other requested and unpaid Extraordinary Expenses of the same type (i.e., Operating Expenses or
Capital Expenditures)) five percent (5%) of the aggregate monthly amount of the Approved Annual Budget with respect to Operating Expenses or Capital Expenditures, as applicable, for such month. Any Extraordinary Expense incurred by Borrower and
approved (or deemed approved) by Lender is referred to herein as an (“Approved Extraordinary Expense”). Any amounts distributed to Borrower for the payment of Approved Extraordinary Expenses pursuant to
Section 6.6.4 shall be used by Borrower only to pay for such Approved Extraordinary Expenses or reimburse Borrower for such Approved Extraordinary Expenses, as applicable. 

Section 6.7    Advance Rent Funds. 

6.7.1    Deposits of Advance Rent Funds. In the event Borrower receives any Advance Rent, Borrower
shall deposit (or cause to be deposited) any such Advance Rent into a Subaccount established at the Cash Management Account Bank to hold such funds (the “Advance Rent Subaccount”). Amounts deposited from time to time in the
Advance Rent Subaccount pursuant to this Section 6.7.1 are referred to herein as the “Advance Rent Funds”. 

6.7.2    Release of Advance Rent Funds. Provided no Event of Default has occurred and is continuing,
on each Payment Date, Lender shall disburse the applicable Advance Rent Funds to the Cash Management Account in accordance with the Advance Rent Disbursement Schedule. 

  
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 Section 6.8    Reserve Funds,
Generally. 
 (a)    Notwithstanding anything to the contrary contained in this
Article VI, disbursements of Reserve Funds to Borrower shall only occur on the Reserve Release Date after receipt by Lender of a Reserve Release Request from Borrower not less than five (5) Business Days prior to such
date; provided, that if the amount of Reserve Funds to be released to Borrower on any Reserve Release Date is less than the Minimum Disbursement Amount, then such Reserve Funds shall continue to be maintained in the Subaccounts until
the next Reserve Release Date on which an amount equal to or greater than the Minimum Disbursement Amount is available for disbursement or until the payment in full of the Obligations. 

(b)    Borrower grants to Lender a first-priority perfected security interest in each of the Reserve Funds and any and all
monies now or hereafter deposited in each Reserve Fund as additional security for payment of the Debt. Until expended or applied in accordance herewith, the Reserve Funds shall constitute additional security for the Debt. 

(c)    During the continuance of an Event of Default, Lender may, in addition to any and all other rights and remedies
available to Lender, apply any sums then present in any or all of the Reserve Funds to the payment of the Debt in any order in its sole discretion. 

(d)    The Reserve Funds shall be held in an Eligible Account in cash or Permitted Investments as directed by Lender or
Lender’s Servicer. All interest on a Reserve Fund shall be added to and become a part thereof and shall be the sole property of Borrower. Borrower shall be responsible for payment of any federal, state or local income or other tax applicable to
the interest earned on the Reserve Funds credited or paid to Borrower. 
 (e)    Borrower shall not, without obtaining
the prior written consent of Lender, further pledge, assign or grant any security interest in any Reserve Fund or the monies deposited therein or permit any lien or encumbrance to attach thereto, or any levy to be made thereon, or any UCC-1 financing statements, except those naming Lender as the secured party, to be filed with respect thereto. 

(f)    Lender and Servicer shall not be liable for any loss sustained on the investment of any funds constituting the
Reserve Funds. Borrower shall indemnify Lender and Servicer and hold Lender and Servicer harmless from and against any and all actions, suits, claims, demands, liabilities, losses, damages, obligations and reasonable
out-of-pocket costs and expenses (including out-of-pocket litigation costs and reasonable
attorneys’ fees and expenses) arising from or in any way connected with the Reserve Funds or the performance of the obligations for which the Reserve Funds were established. Borrower hereby assigns to Lender all rights and claims Borrower may,
during the Term, have against all persons or entities supplying labor, materials or other services which are to be paid from or secured by the Reserve Funds; provided, however, that Lender shall not pursue any such
right or claim unless an Event of Default has occurred and remains uncured. 

  
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 ARTICLE VII - DEFAULTS 

Section 7.1    Event of Default. 

(a)    Each of the following events shall constitute an event of default hereunder (an “Event of
Default”): 
 (i)    if (A) the Debt is not paid in full on the Maturity Date, (B) any
regularly scheduled monthly payment of interest due under the Note is not paid in full on the applicable Payment Date, (C) any prepayment of principal or Release Amount due under this Agreement or the Note is not paid when due or (D) any
Yield Maintenance Premium is not paid when due, in the case of clauses (B), (C) or (D), such failure continuing for two (2) Business Days after the due date for such payment or deposit; 

(ii)    if any deposit to the Reserve Funds is not made on the required deposit date therefor, with such
failure continuing for two (2) Business Days after Lender delivers written notice thereof to Borrower; 

(iii)    if any other amount payable pursuant to this Agreement, the Note or any other Loan Document (other
than as set forth in the foregoing clauses (i) and (ii)) is not paid in full when due and payable in accordance with the provisions of the applicable Loan Document, with such failure continuing for ten (10) days after Lender
delivers written notice thereof to Borrower; 
 (iv)    if the Policies are not (A) delivered to
Lender within five (5) Business Days of Lender’s written request and (B) kept in full force and effect, each in accordance with the terms and conditions hereof; 

(v)    a Transfer other than a Permitted Transfer occurs; 

(vi)    if any certification, representation or warranty made by a Relevant Party herein or any other Loan
Document, other than a Property Representation, or in any report, certificate, financial statement or other instrument, agreement or document furnished by a Relevant Party to Lender shall have been false or misleading in any material and adverse
respect as of the date such representation or warranty was made; provided, however, if any untrue certification, representation or warranty made after the Closing Date is susceptible of being cured, Borrower shall
have the right to cure such certification, representation or warranty within thirty (30) days after receipt of notice from Lender; and provided further that for any certification, representation or warranty made in connection with
a delivery of a report, Borrower shall have such longer grace period as applicable for delivery of such report; 

(vii)    if any Relevant Party shall make an assignment for the benefit of creditors; 

(viii)    if a receiver, liquidator or trustee shall be appointed for any Relevant Party, any Relevant
Party shall be adjudicated a bankrupt or insolvent, or if any petition for bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed by or against, consented to,
or acquiesced in by, Relevant Party, or if any proceeding for the dissolution or liquidation of any Relevant Party shall be instituted, or if any Loan Party is substantively consolidated with any Person other than a Loan Party;
provided, however, if such 

  
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appointment, adjudication, petition, proceeding or consolidation was involuntary and not consented to by such Relevant Party, upon the same not being discharged, stayed or dismissed within sixty
(60) days following its filing; 
 (ix)    if any Loan Party attempts to assign its rights under
this Agreement or any of the other Loan Documents or any interest herein or therein in contravention of the Loan Documents; 

(x)    if any of the assumptions contained in the Insolvency Opinion, or in any Additional Insolvency
Opinion delivered to Lender in connection with the Loan, is or shall become untrue in any material respect; 

(xi)    a breach of the covenants set forth in Sections 4.1.1, 4.1.2, 4.1.3,
4.1.4, 4.1.12, 4.1.19, 4.2.2, 4.2.3, 4.2.5, 4.2.8, 4.2.9, 4.2.11, 4.2.14 or 4.2.15; 

(xii)    if with respect to any Disqualified Property, Borrower fails to within the time periods specified
in Section 2.4.2(a) either: (A) pay the Release Amount in respect thereof, (B) substitute such Disqualified Property with a Substitute Property in accordance with Section 2.4.2(a) or
(C) or deposit an amount equal to one hundred percent (100%) of the Allocated Loan Amount for the Disqualified Property in the Eligibility Reserve Subaccount in accordance with Section 2.4.2(a) and such failure
continues for more than five (5) Business Days after written notice thereof from Lender to Borrower; 

(xiii)    if, (A) without Lender’s prior written consent, (i) any Management Agreement is
terminated (unless simultaneously therewith, Borrower and a new Qualified Manager enter into a Replacement Management Agreement in accordance with Section 4.2.1), or (ii) there is a default by Borrower under any
Management Agreement beyond any applicable notice or grace period and such Manager terminates or cancels the applicable Management Agreement (unless, within thirty (30) days after the expiration of such notice or grace period, Borrower and a
new Qualified Manager enter into a Replacement Management Agreement in accordance with Section 4.2.1) or (B) following the occurrence of a Manager Default, Borrower fails to exercise its right to terminate the Manager
under the Management Agreement; 
 (xiv)    if any Loan Party, Parent, any Qualified Transferee, or any
subsidiary of Parent or any Qualified Transferee that owns a direct or indirect ownership interest in any Loan Party shall be convicted of a Patriot Act Offense by a court of competent jurisdiction; 

(xv)    any failure on the part of any Borrower to duly observe or perform any of its covenants set forth
in Section 4.1.20 or the representation and warranty in Section 3.1.24 shall fail to be correct in respect of a Tenant of any Property and, in each case, Borrower fails to notify OFAC within five
(5) Business Days of Borrower obtaining knowledge that such Tenant is on any of the lists described in those sections and promptly take such steps as may be required by OFAC with respect to such Tenant; 

  
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 (xvi)    if there shall be a default under any of the other
Loan Documents by any Relevant Party beyond any applicable cure periods contained in such Loan Documents, whether as to any Relevant Party or the Properties, or if any other such event shall occur or condition shall exist, if the effect of such
event or condition is to accelerate the maturity of any portion of the Obligations or to permit Lender to accelerate the maturity of all or any portion of the Obligations; 

(xvii)    [Reserved]; 

(xviii)    if any Loan Document or any Lien granted thereunder by any Relevant Party shall (except in
accordance with its terms or pursuant to Lender’s written consent), in whole or in part, terminate, cease to be effective or cease to be the legally valid, binding and enforceable obligation of the parties thereto or any Relevant Party or any
other party shall disaffirm or contest, in writing, in any manner such effectiveness, validity, binding nature or enforceability (other than as a result of the occurrence of the payment in full of the Obligations); 

(xix)    one or more final judgments for the payment of $2,500,000 or more rendered against any Loan Party,
and such amount is not covered by insurance or indemnity or discharged, paid or stayed within sixty (60) days after (i) the date on which the right to appeal thereof has expired if no such appeal has commenced, or (ii) the date on
which all rights to appeal have been extinguished; 
 (xx)    Parent or any Qualified Transferee that
executes and delivers a replacement guaranty pursuant to Section 4.2.17(e) fails to comply with the Parent Financial Covenant; 

(xxi)    if any Relevant Party shall continue to be in Default under any of the other terms, covenants or
conditions of this Agreement or any other Loan Document not specified in subsections (i) to (xx) above, and such Default shall continue for ten (10) days after notice to Borrower from Lender, in the case of any such Default which can be
cured by the payment of a sum of money, or for thirty (30) days after notice to Borrower from Lender in the case of any other such Default; provided, however, that if such
non-monetary Default is susceptible of cure but cannot reasonably be cured within such thirty (30)-day period, and provided further that Borrower shall
have commenced to cure such Default within such thirty (30)-day period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30)-day period
shall be extended for such time as is reasonably necessary for Borrower in the exercise of due diligence to cure such Default, such additional period not to exceed one hundred twenty (120) days; or 

(xxii)    the occurrence and continuance of an Event of Default shall occur under (and as such term is
defined in) the Companion Seller Financing. 
 (b)    During the continuance of an Event of Default (other than an Event
of Default described in clauses (vii), (viii) or (ix) above), in addition to any other rights or remedies available to it pursuant to this Agreement and the other Loan Documents or at law or in equity,
Lender may take such action, without notice or demand, that Lender deems advisable to protect 

  
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and enforce its rights against any Relevant Party and in and to any or all of the Properties, including, without limitation, declaring the Debt to be immediately due and payable, and Lender may
enforce or avail itself of any or all rights or remedies provided in the Loan Documents against the Relevant Parties and any or all of the Properties, including, without limitation, all rights or remedies available at law or in equity; and upon any
Event of Default described in clauses (vii), (viii) or (ix) above, the Debt and Other Obligations of Borrower hereunder and under the other Loan Documents shall immediately and automatically become due
and payable, without notice or demand, and Borrower hereby expressly waives any such notice or demand, anything contained herein or in any other Loan Document to the contrary notwithstanding. 

Section 7.2    Remedies. 

(a)    During the continuance of an Event of Default, all or any one or more of the rights, powers, privileges and other
remedies available to Lender against each Relevant Party under this Agreement or any of the other Loan Documents executed and delivered by, or applicable to, a Relevant Party or at law or in equity may be exercised by Lender at any time and from
time to time, whether or not all or any of the Debt shall be declared due and payable, and whether or not Lender shall have commenced any foreclosure proceeding or other action for the enforcement of its rights and remedies under any of the Loan
Documents with respect to all or any part of any Property. Any such actions taken by Lender shall be cumulative and concurrent and may be pursued independently, singularly, successively, together or otherwise, at such time and in such order as
Lender may determine in its sole discretion, to the fullest extent permitted by law, without impairing or otherwise affecting the other rights and remedies of Lender permitted by law, equity or contract or as set forth herein or in the other Loan
Documents. Without limiting the generality of the foregoing, Borrower agrees that if an Event of Default is continuing (i) Lender is not subject to any “one action” or “election of remedies” law or rule, and (ii) all
liens and other rights, remedies or privileges provided to Lender shall remain in full force and effect until Lender has exhausted all of its remedies against the Properties and each Mortgage has been foreclosed, sold and/or otherwise realized upon
in satisfaction of the Debt or the Debt has been paid in full. 
 (b)    With respect to Borrower and the Properties,
nothing contained herein or in any other Loan Document shall be construed as requiring Lender to resort to any Property for the satisfaction of any of the Debt in any preference or priority to any other Property, and Lender may seek satisfaction out
of all of the Properties, or any part thereof, in its absolute discretion in respect of the Debt. In addition, Lender shall have the right from time to time to partially foreclose the Lien of the Mortgages and the other Collateral Documents in any
manner and for any amounts secured by the Mortgages and the other Collateral Documents then due and payable as determined by Lender in its sole discretion including, without limitation, the following circumstances: (i) in the event Borrower
defaults beyond any applicable grace period in the payment of one or more scheduled payments of principal and interest, Lender may foreclose the Lien of one or more of the Mortgages and/or the other Collateral Documents to recover such delinquent
payments or (ii) in the event Lender elects to accelerate less than the entire Outstanding Principal Balance of the Loan, Lender may foreclose the Lien of one or more of the Mortgages and/or the other Collateral Documents to recover so much of
the principal balance of the Loan as Lender may accelerate and such other sums secured by the Mortgages and the other Collateral Documents as Lender may elect. Notwithstanding one or more partial foreclosures, the Collateral shall remain subject to
the Mortgages and the other Collateral Documents to secure payment of sums secured by the Collateral Documents and not previously recovered. 

  
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 (c)    During the continuance of an Event of Default, Lender shall have the
right from time to time to sever the Note and the other Loan Documents into one or more separate notes, Collateral Documents and other security documents (the “Severed Loan Documents”) in such denominations as Lender shall
determine in its sole discretion for purposes of evidencing and enforcing its rights and remedies provided hereunder. Borrower shall execute and deliver to Lender from time to time, promptly after the request of Lender, a severance agreement and
such other documents as Lender shall request in order to effect the severance described in the preceding sentence, all in form and substance reasonably satisfactory to Lender. The Loan Parties hereby absolutely and irrevocably appoint Lender as its
true and lawful attorney, coupled with an interest, in its name and stead to make and execute all documents necessary or desirable to effect the aforesaid severance, Borrower ratifying all that its said attorney shall do by virtue thereof;
provided, however, Lender shall not make or execute any such documents under such power until three (3) days after notice has been given to a Loan Party by Lender of Lender’s intent to exercise its rights
under such power. Borrower shall be obligated to pay any costs or expenses incurred in connection with the preparation, execution, recording or filing of the Severed Loan Documents and the Severed Loan Documents shall not contain any
representations, warranties or covenants not contained in the Loan Documents and any such representations and warranties contained in the Severed Loan Documents will be given by Borrower only as of the Closing Date. 

(d)    As used in this Section 7.2, a “foreclosure” shall include, without limitation,
any sale by power of sale. 
 Section 7.3    Remedies Cumulative; Waivers. The rights, powers and
remedies of Lender under this Agreement shall be cumulative and not exclusive of any other right, power or remedy which Lender may have against Borrower pursuant to this Agreement or the other Loan Documents, or existing at law or in equity or
otherwise. Lender’s rights, powers and remedies may be pursued singularly, concurrently or otherwise, at such time and in such order as Lender may determine in Lender’s sole discretion. No delay or omission to exercise any remedy, right or
power accruing upon an Event of Default shall impair any such remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed expedient. A waiver
of one Default or Event of Default with respect to Borrower shall not be construed to be a waiver of any subsequent Default or Event of Default by Borrower or to impair any remedy, right or power consequent thereon. 

Section 7.4    Lender’s Right to Perform. If Borrower fails to perform any covenant
or obligation contained herein and such failure shall continue for a period of five (5) Business Days after Borrower’s receipt of written notice thereof from Lender, without in any way limiting Lender’s right to exercise any of its
rights, powers or remedies as provided hereunder, or under any of the other Loan Documents, Lender may, but shall have no obligation to, perform, or cause the performance of, such covenant or obligation, and all costs, expenses, liabilities,
penalties and fines of Lender incurred or paid in connection therewith shall be payable by Borrower to Lender upon demand and if not paid shall be added to the Obligations, and to the extent permitted under 

  
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applicable laws, secured by the Mortgages and the other Collateral Documents and shall bear interest thereafter at the Default Rate. Notwithstanding the foregoing, Lender shall have no obligation
to send notice to Borrower of any such failure. 
 ARTICLE VIII - SALE OF NOTES/ SERVICING 

Section 8.1    Sale of Notes. 

8.1.1    Sale of Notes. (a) (i) Borrower acknowledges and agrees that Lender may sell all or any portion
of the Loan and the Loan Documents, or issue one or more participations therein; provided that Lender may not sell all or any portion of the Loan and the Loan Documents, or issue any participation therein, to any Person set forth in Schedule
VIII hereto; provided further, notwithstanding anything herein to the contrary, Lender may only exercise its rights under this Section 8.1 if the Companion Seller Financing is simultaneously sold to the same entity that
purchases the Loan. Lender shall promptly notify Borrower of any such sale of all or any portion of the Loan. Lender or its designee, acting solely for this purpose as an agent of Borrower, shall maintain a register (“Register”) for
the recordation of the names and addresses of the Lenders, and principal amounts (and stated interest) of the Loan owing to, each Lender pursuant to the terms hereof from time to time. The entries in the Register shall be conclusive absent manifest
error. The Register shall be available for inspection by Borrower, at any reasonable time and from time to time upon reasonable prior notice. 

(ii)    Borrower acknowledges and agrees that each of Lender and Agent may assign, transfer and/or pledge
any or all of its respective rights under this Agreement and the Loan Documents (including, without limitation, any assignment of rights as “Lender” (or any servicer or agent thereof, including Agent) under any Blocked Account Control
Agreement or Deposit Account Control Agreement); provided that each of Lender and Agent may not assign, transfer or pledge all or any portion of the Loan and the Loan Documents and its rights relating thereto to any Person set forth in
Schedule VIII hereto. 
 (b)    [Reserved]. 

8.1.2    [Reserved]. 

Section 8.2    [Reserved]. 

Section 8.3    Servicer. At the option of Lender, the Loan may be serviced by a master servicer, primary
servicer, special servicer and/or trustee (any such master servicer, primary servicer, special servicer, and trustee, together with its agents, nominees or designees, are collectively referred to as “Servicer”) selected by Lender
and Lender may delegate all or any portion of its responsibilities under this Agreement and the other Loan Documents to Servicer pursuant to a trust and servicing, pooling and servicing agreement, servicing agreement, special servicing agreement or
other agreement providing for the servicing of one or more mortgage loans (collectively, the “Servicing Agreement”) between Lender and Servicer. Borrower shall not be responsible for any
set-up fees or any other initial costs relating to or arising under the Servicing Agreement. Borrower shall not be responsible for payment of the monthly master servicing fee due to the Servicer under the
Servicing Agreement. For the avoidance of doubt, this Section 8.3 shall not be deemed to limit Borrower’s obligations under Section 9.15. 

  
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 ARTICLE IX - MISCELLANEOUS 

Section 9.1    Successors. Except as otherwise provided in this Agreement, whenever in this Agreement
any of the parties to this Agreement is referred to, such reference shall be deemed to include the successors and permitted assigns of such party. All covenants, promises and agreements in this Agreement contained, by or on behalf of Borrower, shall
inure to the benefit of Lender and its successors and assigns. 
 Section 9.2    Lender’s
Discretion; Rating Agency Review Waiver. 
 (a)    Whenever pursuant to this Agreement Lender exercises
any right given to it to approve or disapprove any matter, or any arrangement or term is to be satisfactory to Lender, the decision of Lender to approve or disapprove such matter or to decide whether arrangements or terms are satisfactory or not
satisfactory shall (except as is otherwise specifically herein provided) be in the sole discretion of Lender and shall be final and conclusive. Whenever pursuant to this Agreement the Approved Rating Agencies are given any right to approve or
disapprove any matter, or any arrangement or term is to be satisfactory to the Approved Rating Agencies, the decision of Lender to approve or disapprove such matter or to decide whether arrangements or terms are satisfactory or not satisfactory,
based upon Lender’s determination of Rating Agency criteria, shall be substituted therefor. 
 (b)    Whenever,
pursuant to this Agreement or any other Loan Documents, a Rating Agency Confirmation is required from each Approved Rating Agency, in the event that any Approved Rating Agency “declines review”, “waives review” or otherwise
indicates to Lender’s or Servicer’s satisfaction that no Rating Agency Confirmation will or needs to be issued with respect to the matter in question (each, a “Review Waiver”), then the requirement to obtain a Rating
Agency Confirmation from such Approved Rating Agency shall not apply with respect to such matter; provided, however, if a Review Waiver occurs with respect to an Approved Rating Agency and Lender does not have a separate
and independent approval right with respect to the matter in question, then such matter shall require the written reasonable approval of Lender. It is expressly agreed and understood, however, that receipt of a Review Waiver (i) from any one
Approved Rating Agency shall not be binding or apply with respect to any other Approved Rating Agency and (ii) with respect to one matter shall not apply or be deemed to apply to any subsequent matter for which Rating Agency Confirmation is
required. 
 Section 9.3    Governing Law. 

(a)    THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT
TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 

(b)    ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
ANY OF THE OTHER LOAN DOCUMENTS (OTHER THAN ANY  

  
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ACTION IN RESPECT OF THE CREATION, PERFECTION OR ENFORCEMENT OF A LIEN OR SECURITY INTEREST CREATED PURSUANT TO ANY LOAN DOCUMENTS NOT GOVERNED BY THE LAWS OF THE STATE OF NEW YORK) MAY BE
INSTITUTED IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW. BORROWER AND LENDER HEREBY (i) IRREVOCABLY WAIVE, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT THEY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN
BROUGHT IN AN INCONVENIENT FORUM, (ii) IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING, AND (iii) IRREVOCABLY CONSENT TO SERVICE OF PROCESS BY MAIL, PERSONAL SERVICE OR IN ANY OTHER MANNER
PERMITTED BY APPLICABLE LAW, AT THE ADDRESS SPECIFIED IN SECTION 9.5 (AND AGREES THAT SUCH SERVICE AT SUCH ADDRESS IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER ITSELF IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY SUCH COURT, AND OTHERWISE
CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT). 
 Section 9.4    Modification, Waiver in
Writing. Neither this Agreement nor any other Loan Document may be amended, changed, waived, discharged or terminated, nor shall any consent or approval of Lender be granted hereunder, unless such amendment, change, waiver, discharge,
termination, consent or approval is in writing signed by Lender. In addition, Lender shall not waive the requirement that the Closing Date GRC Certificate be delivered on or prior to the making of the Loan. 

Section 9.5    Notices. All notices, consents, approvals and requests required or permitted hereunder
or under any other Loan Document shall be given in writing and shall be effective for all purposes if hand delivered or sent by (a) certified or registered United States mail, postage prepaid, return receipt requested, or
(b) expedited prepaid delivery service, either commercial or United States Postal Service, with proof of attempted delivery, addressed as follows (or at such other address and Person as shall be designated from time to time by any party
hereto, as the case may be, in a written notice to the other parties hereto in the manner provided for in this Section): 
  

					
	 If to Lender:
	  	 Amherst SFR Lender, LLC
	  	
		  	 5001 Plaza on the Lake, Suite 200
	  	
		  	 Austin, Texas 78746
	  	
		  	 Attention: General Counsel – Single Family Equity

		  	 Email: jgatti@amherst.com
	  	
			
	 with a copy to:
	  	 Mayer Brown LLP
	  	
		  	 1221 Avenue of the Americas
	  	
		  	 New York, New York 10020
	  	
		  	 Attention: Paul Jorissen, Esq.
	  	
		  	 Email: pjorissen@mayerbrown.com
	  	

  
 115 

					
	 If to Borrower:
	  	 HOME SFR IV Borrower, LLC
	  	
		  	 Chief Administrative Officer
	  	
		  	 5100 Tamarind Reef
	  	
		  	 Christiansted, USVI 00820
	  	
		  	 Stephen.Gray@altisourceamc.com
	  	
			
	 with a copy to:
	  	 Randall K. Mason
	  	
		  	 5100 Tamarind Reef
	  	
		  	 Christiansted, USVI 00820
	  	
		  	 Randall.Mason@altisourceamc.com
	  	

 A notice shall be deemed to have been given: in the case of hand delivery, at the time of delivery; in the case of registered
or certified mail, when delivered or the first attempted delivery on a Business Day; or in the case of expedited prepaid delivery, upon the first attempted delivery on a Business Day. 

Section 9.6    Trial by Jury. LENDER AND BORROWER, TO THE FULLEST EXTENT THAT THEY MAY LAWFULLY DO SO,
HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM
OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY LENDER AND BORROWER AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL
BY JURY WOULD OTHERWISE ACCRUE. LENDER AND BORROWER ARE EACH HEREBY INDIVIDUALLY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER. 

Section 9.7    Headings. The Article and Section headings in this Agreement are included in this
Agreement for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 

Section 9.8    Severability. Wherever possible, each provision of this Agreement shall be interpreted
in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining provisions of this Agreement. 

Section 9.9    Remedies of Borrower. If a claim is made that Lender or its agents have unreasonably
delayed acting or acted unreasonably in any case where by law or under this Agreement or the other Loan Documents, any of such Persons has an obligation to act promptly or reasonably, Borrower agrees that no such Person shall be liable for any
monetary damages, and Borrower’s sole remedy shall be limited to commencing an action seeking specific performance, injunctive relief and/or declaratory judgment; provided, however, that the forgoing 

  
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shall not prevent Borrower from obtaining a monetary judgment against Lender if it is determined by a court of competent jurisdiction that Lender acted with gross negligence, bad faith or willful
misconduct. Notwithstanding anything herein to the contrary, Borrower shall not assert, and hereby waives, any claim against Lender and/or its affiliates, directors, employees, attorneys, agents or sub-agents,
on any theory of liability, for special, indirect, consequential or punitive damages (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable Legal Requirement) arising out of, as a result of, or in any way
related to, the Loan Agreement or any other Loan Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the transactions contemplated hereby or thereby, the Loan or the use of the proceeds thereof or
any act or omission or event occurring in connection therewith, and Borrower hereby waives, releases and agrees not to sue upon any such claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor.

 Section 9.10    Offsets. All payments made by Borrower hereunder or under the other Loan Documents
shall be made irrespective of, and without any deduction for, any offsets, counterclaims or defenses. 

Section 9.11    No Joint Venture. Nothing in this Agreement is intended to create a joint venture,
partnership, tenancy-in-common, or joint tenancy relationship between Borrower and Lender, or to grant Lender any interest in any Property other than that of mortgagee
or lender. 
 Section 9.12    Conflict; Construction of Documents. In the event of any conflict
between the provisions of this Agreement and the provisions of the other Loan Documents, the provisions of this Agreement shall prevail. The parties acknowledge that they were each represented by competent counsel in connection with the negotiation,
drafting and execution of the Loan Documents and that the Loan Documents shall not be subject to the principle of construing their meaning against the party that drafted same. 

Section 9.13    Brokers and Financial Advisors. Borrower represents that neither it nor
Parent has dealt with any financial advisors, brokers, underwriters, placement agents, agents or finders in connection with the transactions contemplated by this Agreement, and any commissions payable in connection with any such engagements by
Borrower shall be paid solely by Borrower. Borrower shall indemnify and hold Lender harmless from and against any and all claims, liabilities, costs and expenses of any kind in any way relating to or arising from a claim by any Person that such
Person acted on behalf of Borrower in connection with the transactions contemplated in this Agreement. The provisions of this Section shall survive the expiration and termination of this Agreement and the repayment of the Indebtedness. 

Section 9.14    Counterparts. This Agreement may be executed in any number of counterparts, each of
which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. Copies of originals, including copies delivered by facsimile, pdf or other electronic means shall have the same import
and effect as original counterparts and shall be valid, enforceable and binding for the purposes of this Agreement. 

  
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 Section 9.15    General Indemnity; Payment of
Expenses. 
 (a)    Borrower, at its sole cost and expense, shall protect, indemnify, reimburse, defend
and hold harmless Lender and each of its officers, directors, partners, employees, representatives, agents and Affiliates and each Person or entity who Controls any such Person within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act (collectively, the “Indemnified Persons”) for, from and against any and all Damages of any kind or nature whatsoever that may be imposed on, incurred by, or asserted against any of the Indemnified
Person, in any way relating to or arising out of (i) the execution or delivery of any Loan Document or any agreement or instrument contemplated thereby, the performance by the parties hereto of their respective obligations thereunder or the
consummation of the Transaction, (ii) the use or proposed use of the proceeds of the Loan or (iii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort
or any other theory, whether brought by a third party or by any Loan Party or any of its Affiliates, and regardless of whether any Indemnified Person is a party thereto; provided, however, that no Indemnified Person shall have the right to be
indemnified hereunder to the extent that such Damages have been found by a final judgment of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Indemnified Person. 

(b)    If for any reason (including violation of law or public policy) the undertakings to defend, indemnify, pay and
hold harmless set forth in this Section 9.15 are unenforceable in whole or in part or are otherwise unavailable to an Indemnified Person or insufficient to hold it harmless, then Borrower shall contribute to the amount
paid or payable by an Indemnified Person as a result of any Damages the maximum amount Borrower is permitted to pay under Legal Requirements. The obligations of Borrower under this Section 9.15 will be in addition to any
liability that Borrower may otherwise have hereunder and under the other Loan Documents. 
 (c)    To the extent any
Indemnified Person has notice of a claim for which it intends to seek indemnification hereunder, such Indemnified Person shall give prompt written notice thereof to Borrower, provided that failure by Lender to so notify Borrower will not relieve
Borrower of its obligations under this Section 9.15, except to the extent that Borrower suffers actual prejudice as a result of such failure. In connection with any claim for which indemnification is sought hereunder,
Borrower shall have the right to defend the applicable Indemnified Person (if requested by the applicable Indemnified Person, in the name of such Indemnified Person) from such claim by attorneys and other professionals reasonably approved by the
applicable Indemnified Person. Upon assumption by Borrower of any defense pursuant to the immediately preceding sentence, Borrower shall have the right to control such defense, provided that the applicable Indemnified Person shall have
the right to reasonably participate in such defense and Borrower shall not consent to the terms of any compromise or settlement of any action defended by Borrower in accordance with the foregoing without the prior consent of the applicable
Indemnified Person, unless such compromise or settlement (i) includes an unconditional release of the applicable Indemnified Person from all liability arising out of such action 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 applicable Indemnified Person. The applicable Indemnified Person shall have the right to retain its own counsel if (A) Borrower shall have failed to employ counsel reasonably
satisfactory to the applicable Indemnified Person in a timely manner, or (B) the applicable Indemnified Person shall have been advised by counsel that there are actual or 

  
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potential material conflicts of interest between Borrower and the applicable Indemnified Person, including situations in which there are one or more legal defenses available to the applicable
Indemnified Person that are different from or additional to those available to Borrower. So long as Borrower is conducting the defense of any action defended by Borrower in accordance with the foregoing in a prudent and commercially reasonable
manner, Lender and the applicable Indemnified Person shall not compromise or settle such action defended without Borrower’s consent, which shall not be unreasonably withheld or delayed. Upon demand, Borrower shall pay or, in the sole discretion
of the applicable Indemnified Person, reimburse the applicable Indemnified Person for the payment of reasonable fees and disbursements of attorneys, engineers, environmental consultants, laboratories and other professionals retained by the
applicable Indemnified Person in accordance with this Section 9.15 in connection with defending any claim subject to indemnification hereunder. 

(d)    Any amounts payable to Lender by reason of the application of this Section 9.15 shall be
secured by the Mortgages and shall become immediately due and payable and shall bear interest at the Default Rate from the date Damages are sustained by the Indemnified Person until paid. 

(e)    The provisions of and undertakings and indemnification set forth in this Section 9.15
shall survive the satisfaction and payment in full of the Indebtedness and termination of this Agreement. 

(f)    Borrower covenants and agrees to pay or, if Borrower fails to pay, to reimburse, Lender upon receipt of
written notice from Lender for all reasonable and customary costs and expenses (including reasonable attorneys’ fees and expenses) incurred by Lender in connection with (i) the preparation, negotiation, execution and delivery of this
Agreement and the other Loan Documents and the consummation of the transactions contemplated hereby and thereby and all the costs of furnishing all opinions by counsel for Borrower (including without limitation any opinions requested by Borrower as
to any legal matters arising under this Agreement or the other Loan Documents with respect to the Property); (ii) Borrower’s ongoing performance of and compliance with Borrower’s respective agreements and covenants contained in this
Agreement and the other Loan Documents on its part to be performed or complied with after the Closing Date, including, without limitation, confirming compliance with environmental and insurance requirements; (iii) Lender’s ongoing
performance and compliance with all agreements and conditions contained in this Agreement and the other Loan Documents on its part to be performed or complied with after the Closing Date; (iv) the negotiation, preparation, execution, delivery
and administration of any consents, amendments, waivers or other modifications to this Agreement and the other Loan Documents and any other documents or matters requested by Borrower; (v) securing Borrower’s compliance with any requests
made pursuant to the provisions of this Agreement; (vi) the reasonable filing and recording fees and expenses, title insurance and reasonable fees and expenses of counsel for providing to Lender all required legal opinions, and other similar
expenses incurred in creating and perfecting the Liens in favor of Lender pursuant to this Agreement and the other Loan Documents; (vii) enforcing or preserving any rights, in response to third party claims or the prosecuting or defending of
any action or proceeding or other litigation, in each case against, under or affecting Borrower, this Agreement, the other Loan Documents, the Properties, or any other security given for the Loan; and (ix) enforcing any obligations of or
collecting any 

  
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payments due from Borrower under this Agreement, the other Loan Documents or with respect to the Properties, or in connection with any refinancing or restructuring of the credit arrangements
provided under this Agreement in the nature of a “work-out” or of any insolvency or bankruptcy proceedings or any other amounts required under Section 8.3;
provided, however, that Borrower shall not be liable for the payment of any such costs and expenses to the extent the same arise by reason of the gross negligence, illegal acts, fraud or willful misconduct of Lender. Any
cost and expenses due and payable to Lender may be paid from any amounts in the Cash Management Account. 

Section 9.16    No Third-Party Beneficiaries. This Agreement and the other Loan Documents are solely
for the benefit of Lender and Borrower, and nothing contained in this Agreement or the other Loan Documents shall be deemed to confer upon anyone other than Lender, Borrower and Indemnified Person any right to insist upon or to enforce the
performance or observance of any of the obligations contained herein or therein. All conditions to the obligations of Lender to make the Loan hereunder are imposed solely and exclusively for the benefit of Lender, and no other Person shall have
standing to require satisfaction of such conditions in accordance with their terms or be entitled to assume that Lender will refuse to make the Loan in the absence of strict compliance with any or all thereof, and no other Person shall under any
circumstances be deemed to be a beneficiary of such conditions, any or all of which may be freely waived in whole or in part by Lender if, in Lender’s sole discretion, Lender deems it advisable or desirable to do so. Notwithstanding the
foregoing, Borrower expressly acknowledges and agrees that any assignee, transferee or pledgee pursuant to Section 8.1.1(a)(ii) of this Agreement of which it has received written notice is an intended third-party
beneficiary of this Agreement. 
 Section 9.17    Exculpation of Lender. Lender neither undertakes
nor assumes any responsibility or duty to Borrower or any other party to select, review, inspect, examine, supervise, pass judgment upon or inform Borrower or any third party of (a) the existence, quality, adequacy or suitability of Broker
Price Opinions of the Properties or other Collateral, (b) any environmental report, or (c) any other matters or items, including engineering, soils and seismic reports that are contemplated in the Loan Documents. Any such selection,
review, inspection, examination and the like, and any other due diligence conducted by Lender, is solely for the purpose of protecting Lender’s rights under the Loan Documents, and shall not render Lender liable to Borrower or any third party
for the existence, sufficiency, accuracy, completeness or legality thereof. 
 Section 9.18    No Fiduciary
Duty. 
 (a)    Borrower acknowledges that, in connection with this Agreement, the other Loan Documents
and the Transaction, Lender has relied upon and assumed the accuracy and completeness of all of the financial, legal, regulatory, accounting, tax and other information provided to, discussed with or reviewed by Lender for such purposes, and Lender
does not assume any liability therefor or responsibility for the accuracy, completeness or independent verification thereof. Lender, its affiliates and their respective equityholders and employees (for purposes of this Section, the
“Lending Parties”) have no obligation to conduct any independent evaluation or appraisal of the assets or liabilities (including any contingent, derivative or off-balance sheet assets and
liabilities) of Parent, Borrower or any other Person or any of their respective affiliates or to advise or opine on any related solvency or viability issues. 

  
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 (b)    It is understood and agreed that (i) the Lending Parties shall
act under this Agreement and the other Loan Documents as an independent contractor, (ii) the Transaction is an arm’s-length commercial transaction between the Lending Parties, on the one hand, and
Borrower, on the other, (iii) each Lending Party is acting solely as principal and not as the agent or fiduciary of Borrower, Parent or their respective affiliates, stockholders, employees or creditors or any other Person and (iv) nothing
in this Agreement, the other Loan Documents, the Transaction or otherwise shall be deemed to create (A) a fiduciary duty (or other implied duty) on the party of any Lending Party to Parent, Borrower, any of their respective affiliates,
stockholders, employees or creditors, or any other Person or (B) a fiduciary or agency relationship between Parent, Borrower or any of their respective affiliates, stockholders, employees or creditors, on the one hand, and the Lending Parties,
on the other. Borrower agrees that neither it nor Parent nor any of their respective affiliates shall make, and hereby waives, any claim against the Lending Parties based on an assertion that any Lending Party has rendered advisory services of any
nature or respect, or owes a fiduciary or similar duty to Borrower, Parent or their respective affiliates, stockholders, employees or creditors. Nothing in this Agreement or the other Loan Documents is intended to confer upon any other Person
(including affiliates, stockholders, employees or creditors of Borrower and Parent) any rights or remedies by reason of any fiduciary or similar duty. 

(c)    Borrower acknowledges that it has been advised that the Lending Parties are a financial services firm engaged,
either directly or through affiliates in various activities, including securities trading, investment banking and financial advisory, investment management, principal investment, hedging, financing and brokerage activities and financial planning and
benefits counseling for both companies and individuals. In the ordinary course of these activities, the Lending Parties may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities)
and/or financial instruments (including loans) for their own account and for the accounts of their customers and may at any time hold long and short positions in such securities and/or instruments. Such investment and other activities may involve
securities and instruments of affiliates of Borrower, including Parent, as well as of other Persons that may (i) be involved in transactions arising from or relating to the Transaction, (ii) be customers or competitors of Borrower, Parent
and/or their respective affiliates, or (iii) have other relationships with Borrower, Parent and/or their respective affiliates. In addition, the Lending Parties may provide investment banking, underwriting and financial advisory services to
such other Persons. The Lending Parties may also co-invest with, make direct investments in, and invest or co-invest client monies in or with funds or other investment
vehicles managed by other parties, and such funds or other investment vehicles may trade or make investments in securities of affiliates of Borrower, including Parent, or such other Persons. The Transaction may have a direct or indirect impact on
the investments, securities or instruments referred to in this Section 9.18(c). Although the Lending Parties in the course of such other activities and relationships may acquire information about the Transaction or other
Persons that may be the subject of the Transaction, the Lending Parties shall have no obligation to disclose such information, or the fact that the Lending Parties are in possession of such information, to Borrower, Parent or any of their respective
affiliates or to use such information on behalf of Borrower, Parent or any of their respective affiliates. 

  
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 (d)    Borrower acknowledges and agrees that Borrower has consulted its own
legal and financial advisors to the extent it deemed appropriate and that it is responsible for making its own independent judgment with respect to this Agreement, the other Loan Documents, the Transaction and the process leading thereto. 

Section 9.19    Patriot Act Records. Lender hereby notifies Borrower that pursuant to the requirements
of the Patriot Act, it is required to obtain, verify and record information that identifies Borrower and Parent, which information includes the name and address of Borrower and Parent and other information that will allow Lender to identify Borrower
or Parent in accordance with the Patriot Act. 
 Section 9.20    Prior Agreements. THIS AGREEMENT AND
THE OTHER LOAN DOCUMENTS CONTAIN THE ENTIRE AGREEMENT OF THE PARTIES WITH RESPECT TO THE LOAN, AND ALL PRIOR AGREEMENTS AMONG OR BETWEEN SUCH PARTIES, WHETHER ORAL OR WRITTEN, INCLUDING ANY TERM SHEETS, CONFIDENTIALITY AGREEMENTS AND COMMITMENT
LETTERS, ARE SUPERSEDED BY THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (EXCEPT THAT THE PURCHASE AGREEMENT AND ANY ORIGINATION FEE SPECIFIED IN ANY TERM SHEET, COMMITMENT LETTER OR FEE LETTER SHALL BE AN OBLIGATION OF BORROWER AND SHALL
BE PAID AT CLOSING, AND ANY INDEMNIFICATIONS, FLEX PROVISION, EXIT FEES AND THE LIKE PROVIDED FOR THEREIN SHALL SURVIVE THE CLOSING). 

Section 9.21    Publicity. All news releases, publicity or advertising by Borrower or its Affiliates
through any media intended to reach the general public which refers to the Loan Documents or the financing evidenced by the Loan Documents, to Lender, any placement agents or any of their Affiliates (with respect to the Loan only) shall be
subject to the prior written approval of Lender and any placement agents in their sole discretion. Subject to prior consent of Borrower, Lender shall have the right to publicly describe the Loan in general terms advertising and public communications
of all kinds, including press releases, direct mail, newspapers, magazines, journals, e-mail, or internet advertising or communications. Details such as the addresses of the Properties, the amount of the Loan,
the date of the closing and descriptions of the size/locations of the Properties shall only be included subject to Borrower’s approval in advance. Notwithstanding the foregoing, Borrower’s approval shall not be required for the publication
by Lender of notice of the Loan by means of a customary tombstone advertisement, which, for the avoidance of doubt, may include the amount of the Loan, the amount of securities sold, the number of Properties as of the Closing Date, the settlement
date and the parties involved in the transactions contemplated hereby. 
 Section 9.22    Delay Not a
Waiver. Neither any failure nor any delay on the part of Lender in insisting upon strict performance of any term, condition, covenant or agreement, or exercising any right, power, remedy or privilege hereunder, under any other Loan
Document, or under any other instrument given as security therefor, shall operate as or constitute a waiver thereof, nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise of any other right, power,
remedy or privilege. In particular, and not by way of limitation, by accepting payment after the due date of any amount payable hereunder or under any other Loan Document, Lender shall not be deemed to have waived any right either to require prompt
payment when due of all other amounts due under this Agreement, the Note or the other Loan Documents, or to declare a default for failure to effect prompt payment of any such other amount. 

  
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 Section 9.23    Schedules and Exhibits Incorporated. The
Schedules and Exhibits annexed hereto are hereby incorporated herein as a part of this Agreement with the same effect as if set forth in the body hereof. 

Section 9.24    Document Delivery. Borrower will deliver to Lender all documents required to be
delivered under this Agreement in an electronic format reasonably agreed by Lender and Borrower. 

Section 9.25    Cross Default; Cross Collateralization; Waiver of Marshalling of Assets.

 (a)    Borrower acknowledges that Lender has made the Loan to Borrower upon the security of its collective interest in
the Properties and in reliance upon the aggregate of the Properties taken together being of greater value as collateral security than the sum of each Property taken separately. Borrower agrees that the Mortgages are and will be cross-collateralized
and cross-defaulted with each other so that (i) an Event of Default under any of the Mortgages shall constitute an Event of Default under each of the other Mortgages which secure the Note; (ii) an Event of Default under the Note or this
Agreement shall constitute an Event of Default under each Mortgage; (iii) each Mortgage shall constitute security for the Note as if a single blanket lien were placed on all of the Properties as security for the Note; and (iv) such
cross-collateralization shall in no event be deemed to constitute a fraudulent conveyance. 
 (b)    To the fullest
extent permitted by law, Borrower, for itself and its successors and assigns, waives all rights to a marshalling of the assets of Borrower, Equity Owner and others with interests in Borrower, and of the Properties, or to a sale in inverse order of
alienation in the event of foreclosure of all or any of the Mortgages, and agrees not to assert any right under any laws pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead exemption, the administration of
estates of decedents, or any other matters whatsoever to defeat, reduce or affect the right of Lender under the Loan Documents to a sale of the Properties for the collection of the Debt without any prior or different resort for collection or of the
right of Lender to the payment of the Debt out of the net proceeds of the Properties in preference to every other claimant whatsoever. In addition, Borrower, for itself and its successors and assigns, waives in the event of foreclosure of any or all
of the Mortgages, any equitable right otherwise available to Borrower which would require the separate sale of the Properties or require Lender to exhaust its remedies against any Property or any combination of the Properties before proceeding
against any other Property or combination of Properties; and further in the event of such foreclosure Borrower does hereby expressly consents to and authorizes, at the option of Lender, the foreclosure and sale either separately or together of any
combination of the Properties. 
 Section 9.26    Survival. This Agreement and all covenants,
agreements, representations and warranties made herein and in the certificates delivered pursuant hereto shall survive the making by Lender of the Loan and the execution and delivery to Lender of the Note, and shall 

  
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continue in full force and effect so long as all or any of the Debt is outstanding and unpaid unless a longer period is expressly set forth herein or in the other Loan Documents. Whenever in this
Agreement any of the parties hereto is referred to, such reference shall be deemed to include the legal representatives, successors and assigns of such party. All covenants, promises and agreements in this Agreement, by or on behalf of Borrower,
shall inure to the benefit of the legal representatives, successors and assigns of Lender. 

Section 9.27    State Specific Provisions. 

9.27.1    Florida. The following Florida provision does not limit the express choice of New York law set forth in
Section 9.3 of this Agreement and as set forth in the other Loan Documents, and is set forth herein, if and to the extent that, notwithstanding the choice of law provisions contained in this Agreement and the other Loan
Documents, Florida law is held to govern this Agreement, any Mortgage Document encumbering a Property located in Florida or any other Loan Document: 

(a)    The parties acknowledge and agree that the Default Rate provided for herein shall also be the rate of interest
payable on any judgments entered in favor of Lender in connection with the loan evidenced hereby. 

9.27.2    Georgia. The following Georgia provisions are not intended to, and do not, limit the express
choice of New York law set forth in Section 9.3 of this Agreement and as set forth in the other Loan Documents, and are set forth herein, if and to the extent that, notwithstanding the choice of law provisions contained in
this Agreement and the other Loan Documents, Georgia law is held to govern any Mortgage encumbering a Property located in Georgia or any other Loan Document: 

(a)    Notwithstanding anything contained in this Agreement or any other Loan Document, in any instance where Borrower or
any other Relevant Party is required to reimburse Lender for any legal fees or expenses incurred by Lender or Servicer, (i) “reasonable attorneys’ fees,” “reasonable counsel’s fees,” “attorneys’ fees” and
other words of similar import, are not, and shall not be statutory attorneys’ fees under O.C.G.A. § 13-1-11, (ii) if, under any circumstances a Relevant Party
is required to pay any or all of Lender’s or Servicer’s attorneys’ fees and expenses, howsoever described or referenced, such Relevant Party shall be responsible only for reasonable legal fees and out of pocket expenses actually
incurred by Lender or Servicer at customary hourly rates actually charged to Lender or Servicer for the work done, and (iii) no Relevant Party shall be liable under any circumstances for additional attorneys’ fees or expenses, howsoever
described or referenced, under O.C.G.A. § 13-1-11. 

9.27.3    Indiana. The following Indiana provisions are not intended to, and do not, limit the express
choice of New York law set forth in Section 9.3 of this Agreement and as set forth in the other Loan Documents, and are set forth herein, if and to the extent that, notwithstanding the

  
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choice of law provisions contained in this Agreement and the other Loan Documents, Indiana law is held to govern any Mortgage encumbering a Property located in Indiana or any other Loan Document:

 (a)    Borrower waives, to the extent not prohibited by the laws of the State of Indiana, the benefit of all laws now
existing or that hereafter may be enacted providing for any appraisement or valuation of any portion of the Property. 

(b)    The phrase “attorneys’ fees”, when used herein or in the other Loan Documents shall include any and
all attorneys’, paralegals’ and law clerks’ fees and disbursements, including, but not limited to, fees and disbursements at the pre-trial, trial and appellate levels incurred or paid by Lender
in protecting its interest in the Property, or any part thereof and enforcing its rights hereunder. 
 (c)    The term
“Obligations” as defined in this Agreement shall include, without limitation, any judgment(s) or final decree(s) rendered to collect any money obligations of Borrower to Lender and/or to enforce the performance or collection of all
covenants, agreements, other obligations and liabilities of Borrower under this Agreement or any or all of the Loan Documents; provided, however, such Obligations shall not include any judgment(s) or final decree(s)
rendered in another jurisdiction, which judgment(s) or final decree(s) would be unenforceable by an Indiana Court pursuant to Ind. Code
§34-54-3-4. 

(d)    IT IS EXPRESSLY AGREED AND UNDERSTOOD BY BORROWER THAT THIS AGREEMENT INCLUDES INDEMNIFICATION PROVISIONS WHICH, IN
CERTAIN CIRCUMSTANCES, INCLUDE AN INDEMNIFICATION BY BORROWER OF AN INDEMNIFIED PERSON FROM CLAIMS OR LOSSES ARISING AS A RESULT OF SUCH INDEMNIFIED PERSON’S SOLE NEGLIGENCE. 

9.27.4    Kansas. The following Kansas provisions are not intended to, and do not, limit the express choice
of New York law set forth in Section 9.3 of this Agreement and as set forth in the other Loan Documents, and are set forth herein, if and to the extent that, notwithstanding the choice of law provisions contained in this
Agreement and the other Loan Documents, Kansas law is held to govern any Mortgage encumbering a Property located in Kansas or any other Loan Document: 

(a)    THIS LOAN AGREEMENT, TOGETHER WITH THE LOAN DOCUMENTS, ARE THE FINAL EXPRESSION OF THE AGREEMENT BETWEEN THE LENDER
AND THE BORROWER AND MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR OR CONTEMPORANEOUS ORAL AGREEMENT BETWEEN LENDER AND BORROWER. THE PARTIES HEREBY ACKNOWLEDGE AND AFFIRM THAT NO UNWRITTEN ORAL CREDIT AGREEMENT BETWEEN THE PARTIES EXISTS. 

(b)    Notwithstanding anything contained in this Agreement or any other Loan Document, in any instance where Borrower or
any other Relevant Party is required to reimburse Lender for any legal fees or expenses incurred by Lender or Servicer, “reasonable attorneys’ fees,” “reasonable counsel’s fees,” “attorneys’ fees” and
other words of similar import, shall not include (i) costs incurred by a salaried employee of Lender or its assignee or (ii) the recovery of both attorneys’ fees and collection agency fees. 

9.27.5    Missouri. The following Missouri provisions are not intended to, and do not, limit the express
choice of New York law set forth in Section 9.3 of this Agreement and as set 

  
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forth in the other Loan Documents, and are set forth herein, if and to the extent that, notwithstanding the choice of law provisions contained in this Agreement and the other Loan Documents,
Missouri law is held to govern any Mortgage encumbering a Property located in Missouri or any other Loan Document: 

(a)    Statutory Notice - Oral Commitments. Borrower has read and understands the following notice pursuant to
Section 432.047 of the Missouri Revised Statutes: 
 Oral or unexecuted agreements or commitments to loan money, extend credit or to
forbear from enforcing repayment of a debt including promises to extend or renew such debt are not enforceable, regardless of the legal theory upon which it is based that is in any way related to the credit agreement. To protect you (borrower(s))
and us (creditor) from misunderstanding or disappointment, any agreements we reach covering such matters are contained in this writing, which is the complete and exclusive statement of the agreement between us, except as we may later agree in
writing to modify it. 
 (b)    For purposes of the foregoing subsection (a) “borrower” is the Borrower,
“creditor” is Lender and the “credit agreement” is the Loan Agreement. 
 9.27.6    North
Carolina. The following North Carolina provisions are not intended to, and do not, limit the express choice of New York law set forth in Section 9.3 of this Agreement and as set forth in the other Loan Documents,
and are set forth herein, if and to the extent that, notwithstanding the choice of law provisions contained in this Agreement and the other Loan Documents, North Carolina law is held to govern any Mortgage encumbering a Property located in North
Carolina or any other Loan Document: 
 (a)    Notwithstanding anything contained in this Agreement or any other Loan
Document, in any instance where Borrower or any other Relevant Party is required to reimburse Lender for any legal fees or expenses incurred by Lender or Servicer, (i) “reasonable attorneys’ fees,” “reasonable counsel’s
fees,” “attorneys’ fees” and other words of similar import, are not, and shall not be statutory attorneys’ fees under NCGS § 6.21.2 , (ii) if, under any circumstances a Relevant Party is required to pay any or all of
Lender’s or Servicer’s attorneys’ fees and expenses, howsoever described or referenced, such Relevant Party shall be responsible only for reasonable legal fees and out of pocket expenses actually incurred by Lender or Servicer at
customary hourly rates actually charged to Lender or Servicer for the work done, and (iii) no Relevant Party shall be liable under any circumstances for additional attorneys’ fees or expenses, howsoever described or referenced, under NCGS
§ 6.21.2. 
 9.27.7    Tennessee. The following Tennessee provision is not intended to, and does not,
limit the express choice of New York law set forth in Section 9.3 of this Agreement and as set forth in the other Loan Documents, and are set forth herein, if and to the extent that, notwithstanding the choice of law
provisions contained in this Agreement and the other Loan Documents, Tennessee law is held to govern any Mortgage encumbering a Property located in Tennessee or any other Loan Document: 

(a)    The provisions of the Loan Documents as to payment of attorneys’ fees and expenses of collection (i) will
be subject to the discretion of the court as to the award and the 

  
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amount of attorneys’ fees, and (ii) may be subject to T.C.A § 20-12-119(c), which requires a court
to award certain litigation costs and reasonable and necessary attorneys’ fees, up to $10,000, to the successful party if the court grants a motion to dismiss pursuant to Rule 12 of the Tennessee Rules of Civil Procedure for failure to state a
claim upon which relief may be granted. 
 Section 9.28    Preferences. Lender shall have the
continuing and exclusive right to apply or reverse and reapply any and all payments by Borrower to any portion of the obligations of Borrower hereunder. To the extent Borrower makes a payment or payments to Lender, which payment or proceeds or any
part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then,
to the extent of such payment or proceeds received, the obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been received by Lender. 

Section 9.29    Waiver of Notice. Borrower shall not be entitled to any notices of any nature
whatsoever from Lender except with respect to matters for which this Agreement or the other Loan Documents specifically and expressly provide for the giving of notice by Lender to Borrower and except with respect to matters for which Borrower is
not, pursuant to applicable Legal Requirements, permitted to waive the giving of notice. Borrower hereby expressly waives the right to receive any notice from Lender with respect to any matter for which this Agreement or the other Loan Documents do
not specifically and expressly provide for the giving of notice by Lender to Borrower. 
 ARTICLE X - AGENT 

Section 10.1    Appointment and Authority. Each of the Lenders hereby irrevocably appoints Amherst SFR
Lender, LLC to act on its behalf as the Agent hereunder and under the other Loan Documents and authorizes the Agent to take such actions on its behalf and to exercise the powers and perform the duties of the Lender by the terms hereof or thereof,
together with such actions and powers as are reasonably incidental thereto. The provisions of this Article X are solely for the benefit of the Agent and the Lenders, and neither the Borrower nor any other Loan Party shall have any rights as a
third-party beneficiary of any of such provisions.  
 Section 10.2    Rights as a
Lender. The Person serving as the Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Agent, and the term
“Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Agent hereunder in its individual capacity.  

Section 10.3    Exculpatory Provisions. (a) Agent shall not have any duties or obligations except those
expressly set forth herein and in the other Loan Documents, and its duties hereunder shall be administrative in nature. Without limiting the generality of the foregoing, the Agent: 

 

	 	(i)	shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing; and 

  
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	 	(ii)	shall not have any duty to take any discretionary action or exercise any discretionary power, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Agent is
required to exercise as directed in writing by the Lenders. 

 (b)    The Agent shall not be responsible
for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document
delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any covenant, agreement or other term or condition set forth herein or therein or the occurrence of any Default, or (iv) the
validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document. 

Section 10.4    Reliance by Agent. The Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and
to have been signed, sent or otherwise authenticated by the proper Person. The Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person and shall not incur any liability for
relying thereon. In determining compliance with any condition hereunder to the making of a Loan, that by its terms, must be fulfilled to the satisfaction of a Lender, the Agent may presume that such condition is satisfactory to such Lender unless
the Agent shall have received notice to the contrary from such Lender prior to the making of the Loan. The Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it and shall
not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 

Section 10.5    Delegation of Duties. The Agent may perform any and all of its duties and exercise its
rights and powers under this Agreement or under any other Loan Document by or through any one or more sub-agents appointed by the Agent. 

Section 10.6    Resignation of Agent. The Agent may at any time give notice of its resignation to each
Lender and the Borrower. Whether or not a successor has been appointed by the Lenders, such resignation shall become effective in accordance with such notice. 

Section 10.7    Enforcement. Notwithstanding anything to the contrary contained in this Agreement or in
any other Loan Document, the authority to enforce rights and remedies in this Agreement and under the other Loan Documents against any Loan Party shall be vested exclusively in, and all actions and proceedings at law in connection with such
enforcement shall be instituted and maintained exclusively by, the Agent in accordance with Section 10.1 for the benefit of Lender; provided that the foregoing shall not prohibit (a) any Lender from enforcing its right
to payment when due of the principal of and interest on its portion of the Loan made by such Lender and other amounts owing to such Lender under the Loan Documents or (b) any Lender from exercising setoff rights in accordance with the terms of
the Loan Documents. 

  
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 Section 10.8    Collateral and Guaranty Matters. (a)
Notwithstanding anything herein to the contrary, the Lenders irrevocably authorize the Agent, at its option and in its discretion to release any Lien on any property granted to or held by the Agent under any Loan Document to the extent required or
permitted under the Loan Documents. 
 (b)    Agent shall not be responsible for or have a duty to ascertain or inquire
into any representation or warranty regarding the existence, value or collectability of any Collateral, the existence, priority or perfection of the Lender’s Lien thereon, or any certificate prepared by any Loan Party in connection therewith,
nor shall the Agent be responsible or liable to the Lenders for any failure to monitor or maintain any portion of the Collateral. 

Section 10.9     Borrower-Agent Interaction. 

(a)    Notwithstanding anything herein to the contrary, any consent required by Borrower from Lender under this Agreement
shall only require the consent of the Agent, 
 (b)    any notices to be provided to Lender under this Agreement shall
be deemed provided when provided to the Agent, and 
 (c)    all provisions that provide and allow Lender to apply funds
in the accounts provided herein, are to be applied only by Agent. 
 Section 10.10    Non-Survival of Agency Provisions. Notwithstanding anything to the contrary herein, in the event that the interests of the Agent and the Lender shall hereafter be assigned to a single successor lender, then
all the rights, powers and privileges of the Agent set forth herein and in the other Loan Documents with respect to the Loan Parties shall be vested in and inure to the benefit of such successor lender, and all references and provisions herein or in
any other Loan Document regarding the duties owing by the Agent to the Lender or the duties owing by the Lender to the Agent shall, upon such assignment, be of no further force and effect. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

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

			
	BORROWER:
	
	 HOME SFR BORROWER IV, LLC,

a Delaware limited liability company

		
	By:	 	 /s/ Stephen H. Gray

	Name:	 	Stephen H. Gray
	Title:	 	Vice President

  
 130 

 
			
	LENDER:
	
	VACA MORADA PARTNERS, LP, a Delaware limited partnership
	
	 By: VACA MORADA GP, LLC, its General

Partner

		
	By:	 	 /s/ Joseph V. Gatti

	Name:	 	Joseph V. Gatti
	Title:	 	Vice President and Secretary

  
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	LENDER:
	
	MSR II, L.P., a Delaware limited partnership
	
	By: MSR II GP, LLC, its General Partner
		
	By:	 	 /s/ Joseph V. Gatti

	Name:	 	Joseph V. Gatti
	Title:	 	Vice President and Secretary

  
 132 

 
			
	AGENT:
	
	 AMHERST SFR LENDER, LLC,
 a
Delaware limited liability company

	
	By: Amherst Holdings, LLC, its Manager
		
	By:	 	 /s/ Joseph V. Gatti

	Name:	 	Joseph V. Gatti
	Title:	 	Vice President

  
 133

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00277-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00277-of-00352.parquet"}]]